SEMI-ANNUAL REPORT 2017
August 2017
Section I Important Statements, Contents and Definitions
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of BOE Technology Group Co., Ltd.
(the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents
of this Report, and shall be jointly and severally liable for any false representation, misleading
statements or material omissions in this Report.
Mr. Wang Dongsheng, head of the Company, Mr. Chen Yanshun, president of the Execution
Committee (chief executive officer) of the Company, Ms. Sun Yun, accounting head for this
Report, and Ms. Yang Xiaoping, head of the accounting department (head of accounting),
hereby guarantee that the Financial Report carried in this Report is factual, accurate and
complete.
All the directors attended the board meeting for the review of this Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
Any plans for the future, development strategies and other forward-looking statements
mentioned in this Report shall NOT be considered as virtual promises of the Company to
investors. Therefore, investors are kindly reminded to pay attention to investment risk. For
details, see “X Risks Facing the Company and Countermeasures” in Section IV herein.
This Report has been prepared in compliance with the Chinese Accounting Standards for
Business Enterprises and other applicable regulations and rules.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
2
Table of Contents
Section I Important Statements, Contents and Definitions ........................................................... 2
Section II Corporate Profile and Key Operating Results............................................................... 5
Section III Business Profile ............................................................................................................... 9
Section IV Performance Discussion and Analysis ......................................................................... 12
Section V Significant Events ........................................................................................................... 23
Section VI Share Changes and Shareholders’ Profile ................................................................... 35
Section VII Preference Shares ........................................................................................................ 41
Section VIII Directors, Supervisors and Executive Officers ........................................................ 42
Section IX Corporate Bonds ........................................................................................................... 45
Section X Financial Report ............................................................................................................. 49
Section XI Documents Available for Reference ........................................................................... 167
3
Definitions
Term Definition
BOE, the Company, Company, the Group, Group BOE Technology Group Co., Ltd.
Cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
OASIS Hospital The OASIS International Hospital
SID The Society for Information Display
DBG The display and sensor business group of the Company
SBG The smart business group of the Company
HBG The health business group of the Company
United Ratings United Credit Ratings Co., Ltd.
TFT- LCD Thin film transistor- liquid crystal display
LTPS Low temperature poly-silicon
AMOLED Active-matrix organic light emitting diode
OLED Organic light-emitting diode
VR/AR Virtual reality /Augmented reality
IFI IFI CLAIMS Patent Services
TDDI Touch and Display Driver Integration
4
Section II Corporate Profile and Key Operating Results
I Corporate Information
Stock name BOE A, BOE B Stock code 000725, 200725
Changed stock name (if any) N/A
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. (if any) 京东方
Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD.
Abbr. (if any) BOE
Legal representative Wang Dongsheng
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Cui Zhiyong
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Address Economic-Technological Development Area, Economic-Technological Development Area,
P.R.China P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
E-mail liuhongfeng@boe.com.cn cuizhiyong@boe.com.cn
III Other Information
1. Ways to Contact the Company
Indicate by tick mark whether any changes occur to the registered address, office address and their postal codes, website address and
email address of the Company during the Reporting Period.
□ Applicable √ Not applicable
No changes occurred to the said information during the Reporting Period, which can be found in the 2016 Annual Report.
2. Information Disclosure Media and Place where this Report is Kept
Indicate by tick mark whether any changes occurred to the information disclosure media and the place where this Report was kept
5
during the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing this
Report and the location where this Report was placed did not change during the Reporting Period. The said information can be found
in the 2016 Annual Report.
IV Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
Item Reporting Period Same period of last year +/- (%)
Operating revenue (RMB Yuan) 44,605,027,995.00 26,448,310,717.00 68.65%
Net profit attributable to shareholders of the Company (RMB
4,302,605,600.00 -516,472,418.00 -
Yuan)
Net profit attributable to shareholders of the Company before
4,017,844,109.00 -2,309,697,388.00 -
exceptional gains and losses (RMB Yuan)
Net cash from operating activities (RMB Yuan) 10,638,591,266.00 2,734,086,955.00 289.11%
Basic earnings per share (RMB Yuan /share) 0.123 -0.015 -
Diluted earnings per share (RMB Yuan /share) 0.123 -0.015 -
Weighted average return on equity (%) 4.48% -0.67% -
End of Reporting Period End of last year +/- (%)
Total assets (RMB Yuan) 225,472,484,104.00 205,135,011,042.00 9.91%
Net assets attributable to shareholders of the Company (RMB
81,811,299,775.00 78,699,988,493.00 3.95%
Yuan)
V Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and
International Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and
Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
6
VI Exceptional Gains/Losses
√ Applicable □ Not applicable
Unit: RMB Yuan
Item Reporting Period Note
Gains/losses on disposal of non-current assets (including offset asset impairment
-19,257,923.00 N/A
provisions)
Tax rebates, reductions and exemptions due to approval beyond authority or lack of official
0.00 N/A
approval documents
Governmental subsidies charged to gains/losses for Reporting Period (except for
government grants closely related to the Company’s normal business operations and 306,365,699.00 N/A
constantly given at fixed quotas or amounts as per government’s uniform standards)
Capital occupation charges on non-financial enterprises that are charged to gains/losses for
0.00 N/A
Reporting Period
Profit due to situation where investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than enjoyable fair value of identifiable net assets 0.00 N/A
of investees when making investments
Gains/losses on non-monetary asset swap 0.00 N/A
Gains/losses on investment or asset management entrustments to third parties 0.00 N/A
Asset impairment provisions due to acts of God such as natural disasters 0.00 N/A
Gains/losses on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gains/losses on over-fair value amount as a result of transactions with distinctly unfair
0.00 N/A
prices
Net Reporting Period gains/losses on subsidiaries acquired through business mergers under
0.00 N/A
same control from period-beginning to merger dates
Gains/losses on contingencies irrelevant to the Company’s routine business activities 0.00 N/A
Gains/losses on fair value changes of financial assets and liabilities held for trading &
investment income from disposal of financial assets and liabilities held for trading as well
20,704,483.00 N/A
as financial assets available for sale, except for effective hedges related to normal business
operations of the Company
Impairment provision reversal for accounts receivable on which impairment test is carried
575,305.00 N/A
out separately
Gains/losses on entrusted loans 0.00 N/A
Gains/losses on fair value changes in investing properties of which subsequent
0.00 N/A
measurement is carried out adopting fair value method
Effect on Reporting Period gains/losses when a one-off adjustment is made to Reporting
Period gains/losses according to requirements of taxation, accounting and other relevant 0.00 N/A
laws and regulations
7
Custody fee income when entrusted with operations 0.00 N/A
Non-operating income and expense other than above 18,275,029.00 N/A
Other gains/losses that meet definition of exceptional gains/losses 0.00 N/A
Less: Income tax effects 36,540,381.00 N/A
Minority interests effects (after tax) 5,360,721.00 N/A
Total 284,761,491.00 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
8
Section III Business Profile
I Main Business Scope for Reporting Period
BOE Technology Group Co., Ltd. (BOE) was established in April 1993. Its core business covers display and sensor devices, smart
systems and healthcare services.
1. Display and Sensor Business Group (DBG)
As a leader in innovation and development of semi-conductor display and sensor devices, the Company is trying to strengthen the
core technology through transformation in technology, product design and application so as to create more value. It is committed to
the development, production and marketing of TFT-LCD, AMOLED, micro display, sensor devices, etc. Currently, it mainly
provides display screens and thin film transistors for mobile phones, tablet PCs, laptops, displayers, TVs, vehicles, wearable devices,
industrial control, medical care, as well as tiled and transparent display screens. It also provides sensor devices for physical and
chemical testing, genetic testing and security, as well as sensor devices with molecular antenna, etc.
2. Smart Business Group (SBG)
Following the main line of “the Internet of Things and artificial intelligence”, the Company is building four business sub-divisions,
namely smart manufacturing, smart retail systems, smart vehicle-mounted systems, and smart energy systems. At present, it mainly
provides, for its global partners, the most competitive ODM, OEM and customized smart manufacturing services of complete
machines, backlight units, etc., as well as specialized Internet of Things solutions for TV, display devices, VR/AR, HD, free form
and curved vehicle-mounted display devices, retail systems for art galleries, supermarkets and financial products, photovoltaic power
stations, energy management contracting (EMC), plant factories, electrical/carbon asset transactions, etc.
3. Healthcare Business Group (HBG)
With “information medicine and big data” as the basic features, the Company is building a healthcare system covering five
sub-divisions, namely mobile healthcare, digital hospitals, regenerative medicine, life insurance and healthcare centers.
II Significant Changes in Main Assets
1. Significant Changes in Main Assets
Main assets Reason for significant change in Reporting Period
Construction in progress New construction and equipment procurement increased in Reporting Period
2. Main Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
1. The Company firmly promoted and implemented DSH business strategy, rapidly formed the layout of new business area,
consolidated businesses and improved global competitiveness.
In the first half of 2017, BOE firmly promoted and implemented DSH business strategy, made efforts to strengthen and expand
9
display and sensor device business, rapidly formed layout of smart system business and health service business, consolidated its
businesses and improved global competitiveness.
As for the display and sensor business group (DBG): The Company started to organize production lines for AMOLED and large-size
TFT-LCD on an early date. The Chengdu 6th generation flexible AMOLED production line has begun to produce its first product.
And the Hefei 10.5th generation TFT-LCD production line has seen equipment move in ahead of schedule. The aforesaid projects
offered the security both in capacity and technology for strengthening and expanding the display and sensor device business, as well
as for making transformation and upgrade of the Company.
As for the smart business group (SBG): The Company continued to build four business sub-divisions, namely smart manufacturing,
smart retail systems, smart vehicle-mounted systems, and smart energy systems. In 2017, the Company invested to upgrade the Hefei
whole-machine smart manufacturing line, and launched a program to acquire over 50.01% equity interests of SES-imagotag SA, a
French-listed company, to materialize the “hardware products + software platforms + scenario application” integration.
As for the healthcare business group (HBG): The Company continued to build five business sub-divisions, namely mobile healthcare,
digital hospitals, regenerative medicine, life insurance and healthcare centers. The BOE (Chengdu) Digital Medical Center Project
Investment & Cooperation Agreement and the BOE—Beihang University “China’s Medical Silicon Valley” Project Cooperation
Framework Agreement have been signed. Through these strategic cooperation plans, BOE is trying to make innovations in the
healthcare sector and promote development in China’s important emerging industries such as the Internet of Things and healthcare.
2. The Company stuck to client orientation, and deeply ploughed and subdivided the market.
With the policy of “Deep cooperation, Collaborative development, and Value co-creation”, BOE has become the world top supplier
in semiconductor and display field. BOE has kept long-term and sustainable cooperation with well-known domestic and overseas
clients, including Samsung, LG, Hisense, Konka, Lenovo, Dell, and HP, ranking as the 1st supplier for plenty of international 1st
class brands. While intensifying on enlarging and maintaining strategic clients, the Company deeply ploughed and subdivided the
markets, and realized stable increase in market share in subdivided markets. As for the display and sensor business group (DBG):
according to IHS Markit (Information Handling Services, Inc. & Markit Ltd.) data, as of the end of this June, BOE’s LCD display
screens for smart phones, for tablets and for lap tops boast the largest shares in their respective markets worldwide. As for the smart
business group (SBG): BOE has successfully established relationships with globally famous customers, with the whole-machine
shipment approaching 7 million units, as well as remarkable increases in BOE’s shares in the markets of smart display systems for
TV and MNT, in the first half of this year; BOE’s smart vehicle-mounted display systems are successfully installed into its customers’
vehicles; and VR/AR projects are well underway.
3. Reinforce independent innovation and further promote innovation ability
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint value
creation”, continued to strengthen construction of patent attack and defense system, positively took part in domestic and international
industrial standard formation, constantly intensified self-innovation capability, kept foresight and primacy of technologies and
products, and thoroughly improved global competitiveness. The first half of 2017 sees the increasing number of BOE’s new patent
applications. In this period, BOE applied for 4,363 new patents (year-on-year growth rate: 5%), of which the year-on-year growth
rate of flexible OLED, artificial intelligence and big data is 22%. In addition, 2,262 licensing patents (year-on-year growth rate: 34%)
were gained. BOE has listed among TOP 50 enterprises in terms of the number of 2016 USA licensing patents issued by IFI in
January and among TOP 10 enterprises in terms of the number of 2016 international patent applications issued by World Intellectual
Property Organization (WIPO) in February. Meanwhile, promoting technology and product innovation, BOE has been the first
enterprise to launch 1.5-inch FIC (Full In Cell) OLED, 2.1-inch VR (pixel density: 2300PPI), 5-inch ink-jet printer AMQLED,
5.2-inch eye-caring display screen, 5.5-inch QHD eye tracking 3D and other products with world-leading technologies in the world
and win “Best In Show” Award. Furthermore, BOE has launched 5.5-inch QHD and 5.9-inch FHD (Full High Definition) flexible
OLED products in new production line of Chengdu, launched 27-inch/65-inch 8K UHR products, increased the sales volume of
smart phone TDDI, launched 10.1-inch WU TDDI of TPC (Tablet Personal Computer) and 13.3-inch FHD MLOC (Multi-layer On
Cell) Active Pen, and increased the sales volume of high-resolution products.
10
4. Push forward transformation and upgrading and further promoted brand image
With the promotion of transformation and upgrading, BOE has further improved its products and service quality, motivated the
innovation vigor of the organization, enhanced the publicity and marketing promotion, and improved brand image. BOE has
accelerated to expand the market channels in the world: run subsidiaries in Russia, Brazil and the Middle East; further strengthened
marketing network layout in China: set Chengdu sub-headquarters in Southwest China and 14 subsidiaries in Qingdao, Tianjin,
Shenyang, Shijiazhuang, Taiyuan, Hangzhou, Nanjing, Hefei, Xi’an, Chongqing, Guangzhou, Wuhan, Changsha and Xiamen;
promoted the sales capacity and channel establishment of iGallery painted screen, MTX and other innovation-based transformational
products and supported their transformation to integrated software and hardware and service marketing; optimized the all-rounded
and multi-layered on-line distribution platform led by official website, official Weibo and APP; innovated the contents and
distribution modes of official Weibo; participated in SID, Professional Commercial Display Exhibition (Japan) and other famous
international exhibitions; gained a number of awards and further promoted the brand image.
11
Section IV Performance Discussion and Analysis
I Summary
In order to seize opportunities arising from the shift from the post-Internet era to the Fourth Industrial Revolution across the world,
embrace new technologies and make a new leap to a globally-advanced company in the sector of the Internet of Things, the Company
has further positioned itself as an “Internet of Things company that offers smart interface products and professional services for
information interaction and mankind’s health”.
The first half of 2017 saw a slow recovery in the global economy and a pickup in China’s economy. With balanced supply and
demand, the display market was stable. Under such circumstances, the Company continued to unwaveringly follow the DSH (Display,
Smart systems and Healthcare services) strategy, and work on new business responsively, with the purpose of solidifying and
increasing its global competitiveness. As a result, the Reporting Period has seen a larger market share, more distribution channels and
a stronger branding ability of the Company. In addition, the Company has furthered its lean management, which has produced better
energy consumption and earnings results. Meanwhile, its major construction projects went on smoothly and all its substantial plans
are well underway. For the Reporting Period, the Company achieved, on a consolidated basis, operating revenues of RMB 44.6
billion Yuan, up 69% compared to the same period of last year; and net profit of RMB 4.3 billion Yuan, representing a significant
year-on-year growth. Details about the Company’s business divisions in the Reporting Period are given as follows:
(1) Display and Sensor Business Group (DBG)
The overall market share of semiconductor display products increased stably. The market share of main products in subdivided
markets was in the leading position in the industry. The market share of LCD display screen of smart phones, display of tablets, and
display of laptops kept ranking as the world number 1. Products representing the globally frontier technologies, which included
1.5-inch FIC OLED, 2.1-inch VR with high pixel density of 2300PPI, 5-inch ink-jet printing AMQLED, 5.2-inch eye-protective
display, 5.5-inch QHD human-eye-tracking 3D, were firstly launched in the world and won the SID “Best in Show” Award. Multiple
Flexible OLED products were successfully lightened in new production line. 8K ultrahigh resolution series, TDDI products, MLOC
active pen were successfully put into market. The potential dig-out of capacity was deepened through continuous reinforcement of
lean management and optimization of bottle-neck techniques. Capacity of the Beijing, Hefei, Chongqing 8.5th Generation Line set a
new record. Yield rate of key projects distinctly rose up. The result of optimization of product structure was remarkable. The
Company’s competitive power made continuous enhancement. Projects in key production lines in Chengdu, Hefei, Fuzhou,
Mianyang, etc. were smoothly boosted, of which some production lines realized lightening or mass production in advance.
Innovation and transform were accelerated for the sensor business. The photoelectric sensor was developed. Projects of physical and
chemical testing, molecular antenna, and security were stably advanced. Samples for glass-based fingerprint identification were made
out. Cooperation intention with the 1st class clients in domestic and overseas market was agreed for gene sequencing.
(2) Smart Business Group (SBG)
The globally well-known branded clients were successfully developed. The shipment of whole machines with smart-manufacturing
service continuously increased. The project construction for smart factories was stably carried forward. Integrated planning for the 1st
-phase smart logistics of Hefei smart factory was accomplished, which substantially saved human labors and realized smooth mass
production. Structure capping of main plant of Chongqing smart factory was finished 43 days in advance. Smart vehicle-connection
business was being constantly and deeply integrated. The Chengdu vehicle-mounted base smoothly won client’s authentication. In
terms of smart retail, the Company stared the acquisition of the French SES company, worked out retail solutions for shops and
supermarkets, preliminarily formed production lines of iGallery painted-screen art retail business, the system of RFID
Internet-of-Things for physical retail stores, and the system of financial retail Internet-of-Things. The reservation of electricity
12
generation by smart power was sustainably improved.
(3) Healthcare Business Group (HBG)
In terms of health service business, business structure of synergetic development of mobile health, digital hospital, regenerative
medicine, and health park was formed. As for mobile health, the noninvasive multiparameter detector (MTX) and mobile health
management platform (APP) were promoted. The noninvasive combined glucometer (COG) was recognized by CFDA (China Food
and Drug Administration) authentication. Business performance of the OASIS Hospital kept a year-on-year growth. The construction
of Hefei Digital Hospital was steadily advanced. Projects in Beijing, Chengdu, and etc. were being positively planned. As for
regenerative medicine, the construction of research institute for trinity regenerative medicine was started up, and domestically
initiative cell sheets, such as myocardium and cornea were brought out. License application for the insurance company was steadily
advanced. Capacity of the health park was constantly strengthened. On the basis of stable operation of the existing park, the
Company developed TS project and promoted its actual operation.
II Analysis of Main Business
See “I Summary” above.
Year-on-year changes of key consolidated financial data:
Unit: RMB Yuan
Same period of last
Item Reporting Period +/-% Main reason for change
year
Larger size of the Company and
Operating revenues 44,605,027,995.00 26,448,310,717.00 68.65%
changes in industry prospects
Operating costs 32,235,266,589.00 23,987,091,158.00 34.39% Operating activities increased
Selling expense 1,228,560,863.00 696,216,454.00 76.46% Operating activities increased
New projects were put into operation
Administrative expense 3,052,661,575.00 2,311,090,435.00 32.09%
and R&D was strengthened
financial expense 1,099,113,182.00 1,234,879,010.00 -10.99% -
Income taxes 940,261,615.00 56,258,311.00 1,571.33% Earnings increased significantly
R&D input 3,169,248,290.00 1,944,443,159.00 62.99% R&D was strengthened
Net cash from operating
10,638,591,266.00 2,734,086,955.00 289.11% Increased earnings of the Company
activities
Increased payments for engineering
Net cash from investing
-31,989,473,181.00 -12,633,262,404.00 153.22% and equipment purchase for ongoing
activities
projects
Net cash from financial
15,249,414,489.00 13,870,080,988.00 9.94% -
activities
Increased payments for engineering
Net increase in cash and
-6,556,493,365.00 3,853,303,396.00 - and equipment purchase for ongoing
cash equivalents
projects
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
13
No such cases in the Reporting Period.
Breakdown of main business:
Unit: RMB Yuan
Operating Gross profit
Gross profit Operating cost:
Item Operating revenue Operating cost revenue: YoY margin: YoY
margin YoY +/-%
+/-% +/-%
By business segment
DBG 40,261,582,742.00 28,802,055,244.00 28.46% 72.93% 34.53% 20.42%
SBG 8,271,879,666.00 7,609,162,350.00 8.01% 55.58% 56.40% -0.48%
HBG 489,914,987.00 246,278,933.00 49.73% 16.14% 4.35% 5.68%
Others 442,168,181.00 8,488,146.00 98.08% 11.17% 227.52% -1.27%
Offset -4,860,517,581.00 -4,430,718,084.00 8.84% 63.66% 75.40% -6.10%
By product
DBG 40,261,582,742.00 28,802,055,244.00 28.46% 72.93% 34.53% 20.42%
SBG 8,271,879,666.00 7,609,162,350.00 8.01% 55.58% 56.40% -0.48%
HBG 489,914,987.00 246,278,933.00 49.73% 16.14% 4.35% 5.68%
Others 442,168,181.00 8,488,146.00 98.08% 11.17% 227.52% -1.27%
Offset -4,860,517,581.00 -4,430,718,084.00 8.84% 63.66% 75.40% -6.10%
By geographic segment
China 21,530,313,687.00 16,557,000,170.00 23.10% 49.60% 28.96% 12.31%
Other Asian
countries and 20,890,540,227.00 13,921,857,265.00 33.36% 101.07% 44.99% 25.78%
regions
Europe 1,035,237,551.00 830,230,698.00 19.80% 47.78% 25.90% 13.93%
America 1,112,938,978.00 897,136,045.00 19.39% 23.80% 8.83% 11.08%
Other countries
35,997,552.00 29,042,411.00 19.32% -46.77% -53.53% 11.74%
and regions
III Non-Core Business Analysis
□ Applicable √ Not applicable
14
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB Yuan
End of Reporting Period End of same period of last year
Change in
Item As a percentage of As a percentage of Main reason for significant change
Amount Amount percentage (%)
total assets (%) total assets (%)
Monetary funds 50,760,400,727.00 22.51% 44,519,079,579.00 26.15% -3.64% N/A
Accounts receivable 16,863,534,739.00 7.48% 10,729,817,649.00 6.30% 1.18% N/A
Inventories 9,759,164,036.00 4.33% 7,200,449,513.00 4.23% 0.10% N/A
Investment 1,271,764,715.00 0.56% 1,210,463,063.00 0.71% -0.15% N/A
Long-term equity investment 1,981,030,454.00 0.88% 1,700,914,108.00 1.00% -0.12% N/A
Fixed assets 78,898,829,994.00 34.99% 63,258,787,740.00 37.15% -2.16% N/A
Construction in progress 44,127,069,216.00 19.57% 20,213,753,534.00 11.87% 7.70% Construction of new projects went on
Short-term borrowings 6,088,832,994.00 2.70% 1,675,552,145.00 0.98% 1.72% N/A
Long-term borrowings 53,462,402,931.00 23.71% 41,917,658,001.00 24.62% -0.91% N/A
Lower non-current liabilities due within 1
Non-current liabilities due
9,749,188,493.00 4.32% 2,556,088,170.00 1.50% 2.82% year as of end of same period of last year due
within 1 year
to prepayment of bank loan in prior year
Accounts payable 15,215,611,240.00 6.75% 11,123,142,770.00 6.53% 0.22% N/A
Increased payables for equipment and
Other payables 15,003,435,170.00 6.65% 8,230,251,535.00 4.83% 1.82%
engineering for projects under construction
15
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB Yuan
Gains/losses on fair Cumulative fair value
Impairment provided Purchased in Sold in Reporting
Item Opening balance value changes in changes charged to Closing balance
in Reporting Period Reporting Period Period
Reporting Period equity
Financial assets
1. Financial assets at fair value
through gains/losses (exclusive of 0.00 0.00 0.00 0.00 0.00 0.00 0.00
derivative financial assets)
2. Derivative financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Available-for-sale financial assets 394,236,151.00 0.00 109,924,502.00 0.00 142,474,623.00 0.00 533,895,645.00
Subtotal of financial assets 394,236,151.00 0.00 109,924,502.00 0.00 142,474,623.00 0.00 533,895,645.00
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of above 394,236,151.00 0.00 109,924,502.00 0.00 142,474,623.00 0.00 533,895,645.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Significant changes in the measurement attributes of the main assets in the Reporting Period:
□ Yes √ No
16
3. Restricted Asset Rights as of End of the Reporting Period
Item Closing book value Reason for restriction
Monetary funds 7,962,083,704.00 Guarantee and security deposits
Discounted and transferred with right of recourse, endorsed and
Notes receivable 540,548,942.00
transferred with right of recourse, as pledge for opening notes payable
Fixed assets 50,748,500,303.00 Mortgage
Intangible assets 897,094,942.00 Mortgage
Investment property 210,681,631.00 Mortgage
Construction in progress 5,366,306,707.00 Mortgage
Total 65,725,216,229.00 --
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
Investments made in this Reporting Period (RMB Yuan) Investments made in the prior year (RMB Yuan) +/-%
787,439,623.00 467,187,000.00 68.55%
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
17
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Profit/loss on
Cumulative fair Source of
Variety of Code of Name of Initial Accounting fair value Purchased in Sold in this Profit/loss in Accounting
Opening book value changes Closing book
measurement changes in this this Reporting Reporting this Reporting investment
securities securities securities investment cost value charged to value title
model Reporting Period Period Period
equity funds
Period
Available-fo
Domestic/over TPV Fair value r-sale
HK00903 134,658,158.00 28,763,373.00 0.00 8,322,132.00 0.00 0.00 930,175.00 36,365,439.00 Subscription
seas stock Technology method financial
asset
Available-fo
Domestic/over Electronic Fair value r-sale
SH600658 90,160,428.00 129,715,503.00 0.00 81,468,760.00 0.00 0.00 0.00 128,144,384.00 Share swap
seas stock Zone method financial
asset
Available-fo
Domestic/over Bank of Fair value r-sale
HK01963 120,084,375.00 148,067,614.00 0.00 16,348,465.00 0.00 0.00 7,331,745.00 136,432,840.00 Subscription
seas stock Chongqing method financial
asset
Available-fo
Domestic/over China Fair value r-sale
HK06066 70,041,364.00 69,367,469.00 0.00 -1,558,551.00 0.00 0.00 2,049,750.00 68,482,813.00 Subscription
seas stock Securities method financial
asset
New century Available-fo
Domestic/over Fair value
HK01518 medical 142,474,623.00 0.00 0.00 1,523,876.00 142,474,623.00 0.00 0.00 143,998,499.00 r-sale Subscription
seas stock method
treatment financial
18
asset
Black Rock
GF World Available-fo
Health Fair value r-sale
Funds Naught 4,004,297.00 5,974,163.00 0.00 2,214,183.00 0.00 0.00 0.00 6,218,480.00 Subscription
Science method financial
Fund A2 asset
USD
Other securities investments held at the
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
Total 561,423,245.00 -- 381,888,122.00 0.00 108,318,865.00 142,474,623.00 0.00 10,311,670.00 519,642,455.00 -- --
Disclosure date of the announcement
about the board’s consent for the Naught
securities investment
Disclosure date of the announcement
about the general meeting’s consent for Naught
the securities investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
19
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB Yuan
Relationship
Company name with the Main business scope Industry Registered capital Total assets Net assets Operating revenues Operating profit Net profit
Company
Hefei BOE Investment, construction, R&D, production
Optoelectronics and sales of the relevant products of thin Semiconductor
Subsidiary 9,000,000,000.00 17,060,160,937.00 9,690,898,546.00 8,216,589,999.00 682,949,366.00 585,486,281.00
Technology Co., film transistor LCD and its auxiliary display
Ltd. products
Beijing BOE
Display Semiconductor
Subsidiary Development and production of TFT-LCD 17,882,913,500.00 28,356,299,152.00 21,111,137,252.00 10,689,291,263.00 1,302,468,628.00 1,188,816,896.00
Technology Co., display
Ltd.
Hefei Xinsheng Investment, construction, R&D, production
Optoelectronics and sales of the relevant products of thin Semiconductor
Subsidiary 19,500,000,000.00 33,628,363,223.00 22,107,385,325.00 6,946,716,077.00 1,245,978,335.00 1,111,762,969.00
Technology Co., film transistor LCD and its auxiliary display
Ltd. products
Chongqing BOE Investment, construction, R&D, production
Optoelectronics and sales of the relevant products of thin Semiconductor
Subsidiary 19,226,000,000.00 38,522,003,462.00 22,103,695,144.00 9,457,315,749.00 2,391,041,522.00 2,043,698,978.00
Technology Co., film transistor LCD and its auxiliary display
Ltd. products
20
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
How the subsidiary was obtained or disposed
Subsidiary Effect on overall production and operation results
in this Reporting Period
Subsidiary incorporated to build the 6th generation AMOLED (flexible) production line
Mianyang BOE Optoelectronics Technology Co., Ltd. Invest to establish
Expected to produce positive effects on the Company
Subsidiary incorporated for healthcare business
BOE Regenerative Medicine Technology Co., Ltd. Invest to establish
Expected to produce positive effects on the Company
Subsidiary incorporated for healthcare business
Beijing BOE Health Technology Co., Ltd. Invest to establish
Expected to produce positive effects on the Company
BOE Brazil Consulting Service Co., Ltd Invest to establish Subsidiary incorporated for overseas marketing
Subsidiary acquired for smart energy system business
Hebei Huanda Trade Co., Ltd* Asset acquisition
Expected to produce positive effects on the Company
Subsidiary acquired for smart energy system business
Pinghu Juhui New Energy Co., Ltd* Asset acquisition
Expected to produce positive effects on the Company
Subsidiary acquired for smart energy system business
Shaoxing Juhui New Energy Co., Ltd* Asset acquisition
Expected to produce positive effects on the Company
Subsidiary acquired for smart energy system business
Zhuji Dinghui New Energy Co., Ltd* Asset acquisition
Expected to produce positive effects on the Company
Subsidiary incorporated for smart retail system business
Beijing BOE Yiyun Technology Co., Ltd. Invest to establish
Expected to produce positive effects on the Company
*：A company newly consolidated by the Company to strengthen the smart energy system business. For details, see the Announcement on Increase of Investment in BOE Energy Technology Co.,
Ltd. disclosed on July 27, 2016.
21
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2017
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of
the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Risks of macroeconomic fluctuation
The second half of 2017 will see more complicated macro economy and market environment. The global economic growth is
expected to be rebounded, which is hard to break away from long-term stagnation due to the uncertain politics, increasing trade
protectionism and incremental instability factor of financial foreign exchange market. Increasing price of raw materials brought by
the structural transformation of China’s economy pushes the main traditional products to a new round of fierce price competition in
product market.
Adhering to the philosophy of driving transformation and upgrading by innovation, BOE will grasp the market opportunities brought
by fast-developing Internet of Things, continuously improve the operation efficiency of production line, optimize the product
structure, speed up the improvement of AMOLED competitiveness in the world, promote the sensing industry development, lay a
solid foundation for the software and hardware-integrated technology, accelerate the establishment of core competence of
information-based medical treatment, boost the implementation of “Internet+ strategy”, promote the business transformation and
upgrading and enhance the overall profitability.
2. Management risks of transformation and upgrading
BOE has established the normative management system and well managed the operation. However, the developing DSH business
strategy increases the productivity scale, expands the business field, enhances the management range and difficulty of operating
decision, operating management and risk control, and sets higher requirements on BOE’s operation and management level.
BOE will promote the overall capacity reform and reconstruction of organizations that face the era of Internet of Things, further
strengthen the strategy control and implementation capacity, improve the standardization control platform and informatization
management system, establish the awareness, capacity and operating system of positive strategy control and professional service,
cultivate, develop and introduce the top operation and management talents in time and make them play an effective role, and meet the
operation management requirements of business upgrading.
To deal with the risks above, the Company will strictly follow applicable laws and regulations in its activities, disclose important
information in a timely, accurate and complete manner, and improve communication with investors. In addition, the Company will
take effective measures to minimize risks and create more value for its shareholders, especially minority shareholders.
22
Section V Significant Events
I Annual and Special Meetings of Shareholders Convened during the Reporting Period
1. Meetings of Shareholders Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
2016 Annual Meeting Annual Meeting of
35.65% 06/09/2017 06/10/2017 www.cninfo.com.cn
of Shareholders Shareholders
2. Special Meetings of Shareholders Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for the
Reporting Period
□ Applicable √ Not applicable
For the Reporting Period, the Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share
capital.
III Commitments of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
√ Applicable □ Not applicable
Type of Date of Period of
Fulfillme
Commitment Commitment maker commitme Contents commitme commitme
nt
nt nt making nt
Commitments made in share
Naught
reform
Commitments made in
acquisition documents or
Naught
shareholding alteration
documents
Commitments made in time of
Naught
asset restructuring
23
Beijing State-owned
Committed that the
Capital Operation and
shares acquired from
Management Center, Restricted
purchasing would not be
Commitments made in time of Hefei Jianxiang shares 04/08/201
transferred from the first 36 months Fulfilled
IPO or refinancing Investment Co., Ltd., commitme 4
date of issuing the newly
Chongqing Capital nts
increased shares of the
Optoelectronics
issuer within 36 months
Investment Co., Ltd.
Equity incentive commitments Naught
Other commitments made to
Naught
minority shareholders
Fulfilled on time Yes
Specific reasons for failing to
fulfill commitments on time and Naught
plans for next step
IV Engagement and Disengagement of CPAs Firm
Has the semi-annual financial report been audited?
□Yes √ No
This Semi-Annual Report is unaudited.
V Explanations Given by Board of Directors and Supervisory Board Regarding “Modified
Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
24
Other legal matters:
√ Applicable □ Not applicable
Lawsuit Trial results and Situation of
Basic situation of Whether form Process of
amount influences of execution of Disclosure Disclosure
lawsuit into estimated lawsuit
(RMB ‘0,000 lawsuit judgment of lawsuit date index
(arbitration) liabilities (arbitration)
Yuan) (arbitration) (arbitration)
Legal matters
(including former
years carry-over) 4,282.1 No Naught Naught Naught Naught Naught
in the first half of
year 2017
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Related Transactions
1. Related Transactions Relevant to Routine Operations
□ Applicable √ Not applicable
Not applicable because the routine related parties incurred in the Reporting Period did not reach 5% of last year’s audited
consolidated net assets in value.
2. Related Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
25
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related Transactions
□Applicable√ Not applicable
No such cases in the Reporting Period.
XIII. Particulars about the Non-operating Occupation of Funds by the Controlling
Shareholder and Other Related Parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties
during the Reporting Period.
XIV. Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
√ Applicable □ Not applicable
Explanation to leasing
The Company sold and leased back certain fixed assets in the Reporting Period, which did not affect its normal use of these fixed
assets.
The project whose profit and loss brought for the company can reach above 10% of the total profit during the Reporting Period
26
□ Applicable √ Not applicable
No such cases in the Reporting Period.
27
2. Significant Guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB Yuan’0,000
Guarantees provided by the company for external parties (excluding those for subsidiaries)
Disclosure date on Guarantee
relevant Amount for Actual occurrence date Actual guarantee Executed for a
Guaranteed party Type of guarantee Period of guarantee
announcement of guarantee (date of agreement) amount or not related
guaranteed amount party or not
Naught
Total guarantee line for external parties approved Total actual guarantee amount for external
0 0
during the Reporting Period (A1) parties during the Reporting Period (A2)
Total actual guarantee balance for external
Total approved guarantee line for external parties
0 parties at the end of the Reporting Period 0
at the end of the Reporting Period (A3)
(A4)
Guarantees between the Company and its subsidiaries
Guarantee
Disclosure date of Actual occurrence date
Line of Actual guarantee for a
Guaranteed party the guarantee line (date of agreement Type of guarantee Term of guarantee Due or not
guarantee amount related
announcement signing)
party or not
Hefei BOE Photoelectric Joint liability
08/14/2014 747,220 03/12/2015 269,080 07/23/2010 - 07/23/2019 No No
Technology Co., Ltd. guarantee
Beijing BOE Display Joint liability
08/14/2014 1,059,379 09/30/2014 136,064 01/27/2011 - 01/26/2020 No No
Technology Co., Ltd. guarantee
28
Hefei Xin Sheng
Joint liability
Photoelectric Technology 08/14/2014 1,253,264 01/15/2015 785,830 01/06/2014 - 01/06/2022 No No
guarantee
Co., Ltd.
Ordos Yuan Sheng
04/02/2013 475,171 05/22/2013 351,098 Pledge 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd.
Ordos Yuan Sheng Joint liability
08/14/2014 475,171 09/30/2014 351,098 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd. guarantee
Chongqing BOE
Joint liability
Photoelectric Technology 08/14/2014 1,442,947 9/29/2014 1,048,062 11/05/2014 - 11/05/2022 No No
guarantee
Co., Ltd.
Chongqing BOE
Joint liability Opening date of the letter of
Photoelectric Technology 08/14/2014 300,000 05/25/2015 105,000 No No
guarantee guarantee - 12/31/2020
Co., Ltd.
Fuzhou BOE Photoelectric Joint liability
12/10/2015 1,354,880 12/29/2015 806,393 12/19/2016-12/19/2025 No No
Technology Co., Ltd. guarantee
6 years from the opening
Fuzhou BOE Photoelectric Joint liability
12/10/2015 300,000 11/08/2016 108,000 date of the letter of No No
Technology Co., Ltd. guarantee
guarantee
Hefei BOE Display Joint liability
12/01/2016 1,666,502 12/26/2016 1,094,736 12/26/2016-12/26/2017 No No
Technology Co., Ltd. guarantee
Ordos Yuan Sheng Joint liability
12/01/2016 550,000 03/17/2017 335,388 03/17/2017-03/17/2025 No No
Photoelectric Co., Ltd. guarantee
Total guarantee line for subsidiaries approved Total actual guarantee amount for
2,750,000 729,552
during the Reporting Period (B1) subsidiaries during the Reporting Period (B2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
11,899,364 subsidiaries at the end of the Reporting 5,039,652
the end of the Reporting Period (B3)
Period (B4)
29
Guarantees between subsidiaries
Guarantee
Disclosure date of Actual occurrence date
Line of Actual guarantee for a
Guaranteed party the guarantee line (date of agreement Type of guarantee Term of guarantee Due or not
guarantee amount related
announcement signing)
party or not
Ordos Yuan Sheng
04/02/2013 475,171 05/22/2013 351,098 Pledge 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd.
Huanda Trading (Hebei) Joint liability
Naught 14,600 05/24/2017 14,590 06/15/2017-01/16/2029 No No
Co., Ltd guarantee
Total guarantee line for subsidiaries approved Total actual guarantee amount for
14,600 14,590
during the Reporting Period (C1) subsidiaries during the Reporting Period (C2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
14,600 subsidiaries at the end of the Reporting 14,590
the end of the Reporting Period (C3)
Period (C4)
Total guarantee amount (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved during the Total actual guarantee amount during the
2,764,600 744,142
Reporting Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total approved guarantee line at the end of the Total actual guarantee balance at the end of
11,913,964 5,054,242
Reporting Period (A3+B3+C3) the Reporting Period (A4+B4+C4)
Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company 61.78%
Of which:
Amount of guarantees provided for shareholders, the actual controller and their related
0
parties (D)
Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset
14,590
ratio over 70% (E)
Portion of the total guarantee amount in excess of 50% of net assets (F) 595,352
30
Total amount of the three kinds of guarantees above (D+E+F) 595,352
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) Naught
Provision of external guarantees in breach of the prescribed procedures (if any) Naught
1.The Company provided a joint-liability guarantee for a syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. In the meantime, the Company, Hefei BOE Optoelectronics Technology
Co., Ltd. and Beijing BOE Display Technology Co., Ltd. provided guarantees for the said syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. with their stakes in Erdos Haosheng
Energy Investment Co., Ltd. as the pledges
2. Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset ratio over 70% is guarantees between subsidiaries，relevant procedure has been performed
according to Administration of External Guarantee of the company.
(2) Illegal Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV. Social Responsibilities
1. Targeted Measures Taken to Help People Lift Themselves Out of Poverty
The Company didn’t carry out the work on targeted poverty alleviation, and subsequent targeted poverty alleviation plan in the Reporting Period.
2. Significant Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China
Yes
31
Name of
Quantity Executed Approved
Main Total Excessive
Name of Company or of Distribution Information of Emission Emission Total
Pollutant and Discharge Method Weight of Emission
subsidiary Emission Emission Outlet Concentration Standard of Weight of
Distinctive Emission (t) Condition
Outlet Pollutant Emission (t)
Pollutant
Beijing BOE COD Standard emission 113.04mg/L 500mg/L 158.15t 702.68t
Optoelectronics after being treated by South gate of factory, northwest
Ammonia 2 None
Technology Co., sewage treatment corner of factory 13.75mg/L 45 mg/L 19.18t 55.93t
Ltd. nitrogen system
Chengdu BOE COD Standard emission 235.41mg/L 500mg/L 127.12t 490.51t
Optoelectronics after being treated by
Ammonia 1 North side of factory None
Technology Co., sewage treatment 15.46mg/L 45 mg/L 8.35t 25.249 t
Ltd. nitrogen system
Hefei BOE COD Standard emission 59.47mg/L 380mg/L 103.37t 1059 t None
Optoelectronics after being treated by
Ammonia 1 Northwest corner of factory
Technology Co., sewage treatment 3.38mg/L 30mg/L 5.87t 99.2 t None
Ltd. nitrogen system
Standard emission East gate of factory, Behind No.
COD 172.5mg/L 500mg/L 335.14t 1618.8 t None
Beijing BOE Display after being treated by 8 Building of factory
2
Technology Co., Ltd. Ammonia sewage treatment East gate of factory, Behind No.
system 7.01mg/L 45 mg/L 13.7t 134.4 t None
nitrogen 8 Building of factory
COD Standard emission Northeast gate of factory 50.33 mg/l 380mg/L 125.9t 1621.97 t None
Hefei Xinsheng
after being treated by
Optoelectronics Ammonia 1
sewage treatment Northeast gate of factory 11.62mg/l 30mg/L 28.85 t 128.08 t
Technology Co., Ltd. None
nitrogen system
COD Standard emission North side of factory 29.66mg/L 500mg/L 38.81 t 713.81 t None
Erdos Yuansheng
after being treated by
Optoelectronics Co., Ammonia 1
sewage treatment North side of factory 0.99mg/L 45mg/L 1.32 t 76.82 t None
Ltd. nitrogen system
Chongqing BOE COD Standard emission South side of factory 77.1mg/L 400mg/L 226.92 t 727.08t None
Optoelectronics after being treated by 1
Technology Co., Ammonia
Ltd. sewage treatment South side of factory 15.28mg/L 30mg/L 45.61 t 79.424 t None
nitrogen system
32
Construction of pollution prevention equipment and operation condition
BOE has been free of significant environmental problems during the reporting period. All subsidiaries have effectively controlled the
operation in accordance with internal water pollution management standard, air pollution management standard, hazardous wastes
management standard, energy management standard and other requirements, define the operation and maintenance principle and
requirements, establish regular monitoring and supervision mechanism, and ensure the continuously stable operation of systems.
In recent years, the environmental emission index of the Company is up to national standards such as Sewage Comprehensive
Discharge Standard (GB8979-1996), Air Pollutant Comprehensive Emission Standard (GB8978-1996), Industrial Enterprise
Environmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards, and all internal
management benchmark are higher and more strict than national standards and local standards without any emission and discharge
which exceed the standards.
The waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial waste water and
household waste water. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is
collected by rain water pipe network, the rain water is discharged. Meanwhile, the Company also set up special industrial waste water
treatment system. After being treated by sewage treatment system in factory, industrial waste water is discharged into sewage
treatment factory through municipal pipe network for intense treatment. Household waste water is discharged into municipal sewage
treatment factory after pretreatment. In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes
from technology exhaust gas during production process, including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special
exhaust gas and organic exhaust gas etc. Various exhaust gas can be emitted after being treated by independent emission treatment
system. The emission concentration and total amount of waste water and exhaust gas satisfy the national and local relevant standards.
The waste materials which are generated by each subordinate enterprise can be divided into general industrial solid waste, hazardous
waste materials and household waste materials, and they all handed over to qualified recycler for regular treatment. At the same time,
Companies put forward the recycling of package material constantly, and carry forward the work of waste reduction continuously.
The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for
processing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemical
and other materials maximally and reducing the discharge of waste water and waste materials. According to the principle of using
water by separating, the RO concentrated water with higher salt content (deionized water which is got by osmose process) which is
generated during preparing original pure water can be used in pure water preparing system after treatment, the remain RO
concentrated water is flowed into recycled water system as exhaust gas purifying, cycling and cooling water, replenishing water of
sewage treatment system and household flushing water for toilet, watering water for road, water for greening. The drainage water
which is generated during ultrapure water preparing process is used for humidification of air conditioning system.
The Company will continue to promote the environmental management, devote to forging green factory and improve environmental
management level constantly.
XVI. Other Significant Events
√ Applicable □ Not applicable
1. On Jan.11, 2017, BOE passed Bill of Subscribing Shares of New Century Healthcare in Initial Public Offering in 9th meeting of
8th board of directors. BOE has subscribed 21,550,000 shares (total payment: HKD 160,206,386.05 (relevant service charge
included)) of New Century Healthcare in Initial Public Offering (IPO) through wholly-owned subsidiary --- BOE Technology (Hong
Kong) Co., Ltd. in Stock Exchange of Hong Kong Limited.
2. The public corporate bonds (Phase 1) of BOE Technology Group Co., Ltd. issued to qualified investors by BOE from Mar.21 to 22,
2017 reach one year on Mar.21, 2017. The interest shall be settled once a year within interest accrual period based on the regulations.
On Mar.15, 2017, BOE disclosed “16BOE01” 2017 Announcement of Interest Settlement (No.: 2017-007), specifying that the
interest of 10 bonds is HKD 31.5 (tax included).
33
3. On Jul.15, 2016, BOE disclosed Plan on Repurchasing Part of BOE’s Public Share, which was passed in 3th extraordinary general
meeting in 2016. On Sep.20, 2016, BOE implemented the plan for the first time. The plan is expired on August 18, 2017 (expired
date of repurchase period). BOE has repurchased 88,692,299 A-shares (max. price: RMB 2.92 Yuan /share, min. price: RMB 2.36
Yuan /share, total payment: HKD 226,525,285.07 (commission and other fixed charged included)), and 265,976,681 B-shares (max.
price: HKD 3.45/share, min. price: HKD 2.12/share, total payment: HKD 799,996,931.17 (commission and other fixed charged
included)). ,for more information,see Announcement on completion of repurchasing Part of BOE’s Public Share (No.:2017-046).
4. On Dec.2, 2015, BOE disclosed Announcement on Investing Intelligent Manufacturing Production Line Project for Complete
Machine (No.: 2015-079). BOE has invested RMB 1,190,000,000 Yuan to the project of wholly-owned subsidiaries, which is passed
in 32th meeting of 7th board of directors. The project has put into production in Hefei. Under such case, BOE has invested RMB
1,000,000,000 Yuan to the Phase 2 project in Hefei based on the full research and argumentation, which is passed in 13th meeting of
8th board of directors. For more information, see Announcement on Investing Intelligent Manufacturing Production Line Project
(Phase 2) for Complete Machine in Hefei (No.: 2017-034).
5. BOE Technology (HK) Limited, one of the Company’s wholly-owned subsidiaries, filed a lawsuit before the Beijing High People’s
Court over a disputed sales contract against LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd., LeTV Holdings
(Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Mr. Jia Yueting for approximately USD 41.84 million in total.
The court has issued the Case Acceptance Notice and the Civil Ruling for property preservation respectively on July 6, 2017 and July
31, 2017. As for relevant receivables of this lawsuit, the Company has made relevant bad debt provision according to accounting
standard.This case is now waiting for the court’s trial. Therefore, its effects on the Company are uncertain.
index to disclosure website
Overview of significant events Disclosure date
for interim report
Announcement about the Strategic Cooperation with Beihang University 05/13/2017 www.cninfo.com.cn
Announcement about Acquisition of shares of SES-imagotag 06/17/2017 www.cninfo.com.cn
XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable
34
Section VI Share Changes and Shareholders’ Profile
I. Share Changes
1. Share Changes
Unit: Share
Before the change Increase/decrease (+, -) After the change
Item
Amount Proportion Other Subtotal Amount Proportion
I. Restricted shares 9,922,266,108 28.23% -9,920,476,190 -9,920,476,190 1,789,918 0.01%
1. Shares held by the state 0 0.00% 0 0 0 0.00%
2. Shares held by
9,920,476,190 28.22% -9,920,476,190 -9,920,476,190 0 0.00%
state-owned corporations
3. Shares held by other
1,789,918 0.01% 0 0 1,789,918 0.01%
domestic investors
Among which: shares held
0 0.00% 0 0 0 0.00%
by domestic corporations
Shares held by domestic
1,789,918 0.01% 0 0 1,789,918 0.01%
individuals
4. Shares held by foreign
0 0.00% 0 0 0 0.00%
investors
Among which: Shares
held by foreign 0 0.00% 0 0 0 0.00%
corporations
Shares held by foreign
0 0.00% 0 0 0 0.00%
individuals
II. Non-restricted shares 25,230,801,635 71.77% 9,920,476,190 9,920,476,190 35,151,277,825 99.99%
1. RMB Yuan ordinary
24,028,711,466 68.35% 9,920,476,190 9,920,476,190 33,949,187,656 96.58%
shares
2. Domestically listed
1,202,090,169 3.42% 0 0 1,202,090,169 3.42%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0.00%
shares
4. Other 0 0.00% 0 0 0 0.00%
III. Total shares 35,153,067,743 100.00% 0 0 35,153,067,743 100.00%
Reasons for changes in shares
√ Applicable □ Not applicable
35
1. On April 10, 2017, the shareholders of the Company eased restrictions of part of non-public shares issuance in 2014, and the
amount of released restricted shares is 9,920,476,190.
Approval of share changes
□ Applicable √ Not applicable
Particulars about transferring ownership of shares
□ Applicable √ Not applicable
Influence of changes in shares on financial indicators of the recent year or the recent term including basic EPS, diluted EPS, net asset
value per share belonging to common stock holders of the Company, etc.
□ Applicable √ Not applicable
Other contents that the Company thinks it is necessary to disclose or that securities regulatory institutions demand to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
Restricted Restricted Restricted Restricted shares Restricted
Restricted
Name of the shareholders shares amount at shares relieved shares increased amount at the shares relieved
reasons
the period-begin of the period of the period period-end date
Beijing State-owned
Capital Operation and Non-public
4,063,333,333 4,063,333,333 0 0 04/10/2017
Management issuance
Center
Chongqing Ezcapital
Non-public
Opto-electronics Industry 3,000,000,000 3,000,000,000 0 0 04/10/2017
issuance
Investment Co., Ltd.
Hefei Jianxiang Non-public
2,857,142,857 2,857,142,857 0 0 04/10/2017
Investment Co., Ltd. issuance
Total 9,920,476,190 9,920,476,190 0 0 -- --
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
36
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total number of common shareholders at the
1,034,884 (including 995,012 A-shareholders and 39,872 B-shareholders)
period-end
Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders
Increase/decrease Number of Pledged or frozen shares
Nature of Shareholding Total common shares held Number of restricted
Name of shareholder during the Reporting non-restricted Status of Number of
shareholder percentage (%) at the period-end common shares held
Period common shares held shares shares
Beijing State-owned Capital
State-owned
Operation and Management 11.56% 4,063,333,333 0 0 4,063,333,333 N/A 0
Corporation
Center
Chongqing Ezcapital
State-owned
Opto-electronics Industry 8.53% 3,000,000,000 0 0 3,000,000,000 N/A 0
Corporation
Investment Co., Ltd.
Hefei Jianxiang Investment State-owned
8.13% 2,857,142,857 0 0 2,857,142,857 N/A 0
Co., Ltd. Corporation
Beijing
Economic-Technological State-owned
3.53% 1,241,423,641 0 0 1,241,423,641 N/A 0
Investment & Development Corporation
Corp.
Beijing BOE Investment & State-owned
2.34% 822,092,180 0 0 822,092,180 N/A 0
Development Co., Ltd. Corporation
Tianan Property Insurance
Other 2.09% 733,544,020 733,544,020 0 733,544,020 N/A 0
Co., Ltd- Baoying No.1
37
National Social Security Fund
Other 1.39% 490,038,723 210,038,928 0 490,038,723 N/A 0
Portfolio 108
Hefei Rongke Project State-owned
0.92% 324,026,893 -350,999,910 0 324,026,893 N/A 0
Investment Co., Ltd. Corporation
Beijing Electronics Holdings On behalf of
0.78% 273,735,583 0 0 273,735,583 N/A 0
Co., Ltd. government
Central Huijin Assets
Other 0.71% 248,305,300 0 0 248,305,300 N/A 0
Management Co., Ltd
Strategic investors or general corporations
becoming top-ten common shareholders due Naught
to placing of new shares (if any) (see Note 3)
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling
shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co.,
Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively
unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.
Related or acting-in-concert parties among the
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the
shareholders above
shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics
Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting
right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting
Right.
5. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist associated
relationship or not, or they are persons acting in concert or not.
Shareholdings of the top ten non-restricted common shareholders
Type of shares
Name of shareholder Number of non-restricted common shares held at the period-end
Type Number
Beijing State-owned Capital Operation and 4,063,333,333 RMB ordinary shares 4,063,333,333
38
Management Center
Chongqing Ezcapital Opto-electronics
3,000,000,000 RMB ordinary shares 3,000,000,000
Industry Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. 2,857,142,857 RMB ordinary shares 2,857,142,857
Beijing Economic-Technological Investment
1,241,423,641 RMB ordinary shares 1,241,423,641
& Development Corp.
Beijing BOE Investment & Development Co.,
822,092,180 RMB ordinary shares 822,092,180
Ltd.
Tianan Property Insurance Co., Ltd- Baoying
733,544,020 RMB ordinary shares 733,544,020
No.1
National Social Security Fund Portfolio 108 490,038,723 RMB ordinary shares 490,038,723
Hefei Rongke Project Investment Co., Ltd. 324,026,893 RMB ordinary shares 324,026,893
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary shares 273,735,583
Central Huijin Assets Management Co., Ltd 248,305,300 RMB ordinary shares 248,305,300
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling
shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co.,
Related or acting-in-concert parties among the Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively
top ten non-restrictedly tradable share holders unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.
and between the top ten non-restrictedly 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the
tradable share holders and the top ten shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics
shareholders Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting
right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting
Right.
5. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist associated
relationship or not, or they are persons acting in concert or not.
39
Top ten common shareholders conducting
Naught
securities margin trading (if any)
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conducted any promissory repo during the Reporting
Period.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
40
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
41
Section VIII Directors, Supervisors and Executive Officers
I Changes in Shareholdings of Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Opening Increase in the Decrease in the Closing
Name Office title Incumbent/former shareholding Reporting Reporting shareholding
(share) Period (share) Period (share) (share)
Wang
Chairman of the Board Current 299,905 0 0 299,905
Dongsheng
Xie
Vice Chairman of the Board Current 7,680 0 0 7,680
Xiaoming
Chen Vice Chairman of the Board, Chief
Current 260,000 0 0 260,000
Yanshun of Executive Committee(CEO)
Wang Jing Director Current 0 0 0 0
Zhang
Director Current 0 0 0 0
Jinsong
Liu Director, Vice Chief of Executive
Current 250,000 0 0 250,000
Xiaodong Committee, President and COO
Song Jie Director Current 0 0 0
Director, Executive Committee
Sun Yun Member, Executive Vice President, Current 155,981 0 0 155,981
CFO
Lv Tingjie Independent Director Current 0 0 0 0
Wang
Independent Director Current 0 0 0 0
Huacheng
Hu Xiaolin Independent Director Current 0 0 0 0
Li Xuan Independent Director Current 0 0 0 0
Chief of Supervisory Board
Chen Ming Current 0 0 0 0
(Convener)
Xu Tao Supervisor Current 0 0 0 0
Mu Supervisor, Secretary of Board of
Current 2,991 0 0 2,991
Chengyuan Supervisors
Zhao Wei Supervisor Current 0 0 0 0
Shi Hong Supervisor Current 0 0 0 0
Zhuang Supervisor Current 0 0 0 0
42
Haoyu
Miao
Employee Supervisor Current 0 0 0 0
Chuanbin
Xu Yangping Employee Supervisor Current 0 0 0 0
He Daopin Employee Supervisor Current 0 0 0 0
Executive Vice President, Secretary
General of Strategy Committee of
Dong
the Board and Director of Current 200,000 0 0 200,000
Youmei
Technology and Products Strategy
Committee
Executive Committee Member,
Senior Vice President, Joint COO
YaoXiangjun Current 100,000 0 0 100,000
and CEO of Intellectual System
Business Group
Executive Committee Member,
Yue Zhanqiu Current 150,000 0 0 150,000
Senior Vice President, CIO
Feng Executive Committee Member,
Current 150,000 0 0 150,000
Liqiong Senior Vice President, Chief Lawyer
Zhong Executive Committee Member,
Current 150,000 0 0 150,000
Huifeng Senior Vice President, CHO
Executive Committee Member,
Xie
Senior Vice President, Chief Risk Current 110,000 0 0 110,000
Zhongdong
Officer and Auditor General
Executive Committee Member,
Zhang Senior Vice President, CEO of
Current 150,000 0 0 150,000
Zhaohong Display and Sensor Devices
Business Group
Executive Committee Member,
Feng Qiang Senior Vice President, CEO of Current 100,000 0 0 100,000
Health Service Business Group
Executive Committee Member,,
Yang Anle Senior Vice President, Chief Current 100,000 0 0 100,000
Investment Officer
Tong Executive Committee Member,
Current 0 0 0 0
Guanshan Senior Vice President, CTO
Liu Executive Committee Member, Vice
Current 100,000 0 0 100,000
Hongfeng President, Secretary of the Board
Executive Committee Member, Vice
Jing Linfeng President, CSO and Executive Current 100,000 0 0 100,000
Secretary of the Executive
43
Committee
Total -- -- 2,386,557 0 0 2,386,557
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
YaoXiangjun Director Left 04/07/2017 Work adjustment and position change
Sun Yun Director Elected 06/09/2017 Elected Director from senior executive
44
Section IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
Yes
I. Basic Information of the Company Bonds
Bonds balance
Way of
Name Abbr. Code Release date Due date (RMB’0,000 Interest rate
redemption
Yuan)
2016 Public offering of Paid for the
the corporation bonds for interests by
the qualified investors of 16BOE01 112358 03/21/2016 03/21/2021 1,000,000 3.15% year and the
BOE Technology Group principals once
Co., Ltd. (Phase I) when expired.
Listed or transferred trading place of the
List on the SZSE.
Company bonds
Appropriate arrangement of the investors the qualified investors
List of the interests payment of the
On March 21, 2017, the Company completed the 2016 annual interest payout for the
Company bonds during the Reporting
qualified investors of its 2016 corporate bonds.
Period
Execution of the relevant regulations
during the Reporting Period such as the There was affiliated issuers’ up-regulation nominal interest rate option and the investors’
affiliated option clause of the issuers or sell-back option at the year-end of the third year of the current bond duration; and up to the
investors, special clauses such as the approval quotation date of the Annual Report, the bonds were not yet needed to be
exchangeable regulations of the Company executed.
bonds (if applicable)
II. List of the Bond Trustee and the Rating Organization
Bond trustee:
Rm. 2203,
North Tower,
Zhu
China Shanghai
Mingqiang, Contact
Name Securities Co., Office address Securities Contact 021-68801565
Han Yong, number
Ltd. Plaza, 528
Sheng Cheng
Pudong Road
South,
45
Shanghai
Rating organization executed the tracking rating of the Company bonds of the Reporting Period:
12/F, PICC Building, No.2 Jianwai Street,
Name United Ratings Co., Ltd. Office address
Chaoyang District, Beijing
Alternation reasons, execution process and
influences on the investors’ interests etc. if
there was alternation of the bond trustees
Not applicable
and the credit rating agencies engaged by
the Company during the Reporting Period
(if applicable)
III. List of the Usage of the Raised Funds of the Company Bonds
List of the usage of the raised funds and The Company executed the internal decision-making process strictly according to the
the execution process of the Company applications committed by the prospectus as well as the review regulations of the
bonds Board of Directors and Annual General Meeting of the Company.
Opening balance (RMB’0,000 Yuan) 2.66
The Company signed the Agreement on the 2016 Public Offering of the Corporation
Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE
Operating situation of the raised funds Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co,
special account Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing
Branch of China Merchants Bank Co., Ltd., which set up the raise funds account that
ensure the exclusive use of the special fund of the raise funds.
Whether the usage of the raised funds met
with the usage, using plan and other Yes
agreements committed on the prospectus
IV. Rating Situation of the Company Bonds Information
On June 24, 2016, United Ratings issued the Tracking Rating Report of the 2016 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
June 25, 2016, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn
On June 23, 2017, United Ratings issued the Tracking Rating Report of the 2017 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
June 24, 2017, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures of
the Company Bonds
There was no guarantee of the corporate bonds of the Reporting Period.
The profits of the main business of the issuers ware the main resources of the debt service fund of the bonds of the Reporting Period.
The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every March 21 of each
46
year from Y2017 to Y2021 is the interest date of the last interest accrual year (if met with the legal holidays or rest days, should
postpone which to the subsequent 1st working day); if the investors executed the put-back right, the interest date of the part of the
put-back bonds is every March 21 of each year from Y2017 to Y2019 is the interest date of the last interest accrual year (if met with
the legal holidays or rest days, should postpone which to the subsequent 1st working day). The principal of the current bonds should
be paid at one time when expired. The payment date of the current bonds would be March 21, 2021 (if met with the legal holidays or
rest days, should postpone which to the subsequent 1st working day); if the investors executed the put-back right, the payment date of
the part of the put-back bonds would be March 21, 2019 (if met with the legal holidays or rest days, should postpone which to the
subsequent 1st working day).
The repayment guarantee measures of the corporate bonds of the Reporting Period: to formulate the Meeting Regulations of the
Bondholders and the repayment guarantee measures; to formulate and strictly carry out the funds management plans; to fully exert
the functions of the bond trustees; to strictly disclose the information; at the same time, when expected to fail to repay the principals
and interest of the bonds on time or failed to repay the principals and interest of the bonds when expired, the Company will at least
adopt the measures of the execution of the capital expenditures projects such as to postpone the significant external investment and
the purchase as well as merger and so on that guarantee the repayment of the debts.
During the Reporting Period, there was no alternation of the credit-adding mechanism, debt repayment plan and other repayment
guarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
No such cases during the Reporting Period.
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention on the operating, finance and credit
situation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Trading
of the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed the
responsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.
VIII. The Major Accounting Data and the Financial Indicators of the Company up the
Period-end and the End of Last Year (or the Reporting Period and Same Period of Last Year)
Item Period-end End of last year Increase/decrease
Asset-liability ratio 56.79% 55.14% 1.65%
Current ratio 1.74 2.20 -0.46
Quick ratio 1.55 2.01 -0.46
Item Reporting Period Same period of last year Increase/decrease
Times interest earned of EBITDA 8.43 5.34 3.09
Loan repayment rate 1.00 1.00 0.00%
Interest coverage 1.00 1.00 0.00%
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
The liquidity ratio decreased by 0.46 compared to the end of last year mainly because of the lower non-current liabilities due within 1
47
year as of the end of the same period of last year resulted from prepayment of bank loan in the prior year.
The quick ratio decreased by 0.46 compared to the end of last year mainly because of the lower non-current liabilities due within 1
year as of the end of the same period of last year resulted from prepayment of bank loan in the prior year.
EBITDA is 3.09 more than the same period of the last year due to the largely increasing total profit in the first half year.
IX. Overdue Unpaid Debts of the Company
□ Applicable √ Not applicable
No such cases during the Reporting Period.
X. List of the Interest Payment of Other Bonds and Bonds Financing Instruments during the
Reporting Period
No such situation of the Company during the Reporting Period.
XI. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The operation and reputation of the Company was favorable and the profitability as well as the debt payment ability of the Company
was strong as well as the Company maintained the long-term cooperative partnerships with China Development Bank, Ping An Bank
and Industrial and Commercial Bank. Up to June 30, 2017, the total amount of the credit line of the major cooperative banks with the
Company was of RMB 27.30 billion Yuan with the used credit line of RMB 6.30 billion Yuan and the unused amount of which was
of RMB 21.00 billion Yuan. The principal and interest of bank loans have been paid back on time.No default in bank loans during the
Reporting Period.
XII List of the Execution of the Agreements or the Commitments Related to the Company Bonds Raising
Specification during the Reporting Period
During the Reporting Period., the Company strictly carried out each agreement and commitment of the current bond prospectus, and
there was no any situation of the inefficient execution of the relevant agreements or commitments according to the bond prospectus
by the Company that caused the negative influences on the bonds investors.
XIII. Significant Events Occurred during the Reporting Period
There were no occurred significant events listed in Article 45 of Corporate Bonds Issuance and Trading Management Methods during
the Reporting Period.
XIV. Whether there was guarantor of the Company bonds
□ Yes √ No
48
Section X Financial Report
I. Auditor’s Report
Whether the semi-annual report has been audited?
□Yes √ No
The semi-annual report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB Yuan
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
June 30, 2017
Unit: RMB Yuan
Item Notes Closing balance Opening balance
Current assets:
Monetary funds VII. 1 50,760,400,727.00 58,152,817,223.00
Settlement reserve 0.00 0.00
Interbank lendings 0.00 0.00
Financial assets at fair value through profit/loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable VII. 2 1,263,302,564.00 1,369,836,650.00
Accounts receivable VII. 3 16,863,534,739.00 16,191,791,617.00
Accounts paid in advance VII. 4 1,041,632,450.00 708,511,473.00
Premiums receivable 0.00 0.00
Reinsurance premiums receivable 0.00 0.00
Receivable reinsurance contract reserve 0.00 0.00
Interest receivable VII. 5 89,188,241.00 125,141,573.00
Dividends receivable VII. 6 10,250,449.00 0.00
Other accounts receivable VII. 7 955,540,522.00 903,069,416.00
Financial assets purchased under agreements to
0.00 0.00
resell
Inventories VII. 8 9,759,164,036.00 7,833,138,532.00
49
Assets held for sale 0.00 0.00
Non-current assets due within one year VII. 9 28,941,602.00 66,321,715.00
Other current assets VII. 10 9,773,604,550.00 5,691,200,226.00
Total current assets 90,545,559,880.00 91,041,828,425.00
Non-current assets:
Loans and advances to customers 0.00 0.00
Available-for-sale financial assets VII. 11 757,249,677.00 622,502,556.00
Held-to-maturity investments VII. 12 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investments VII. 13 1,981,030,454.00 1,356,111,395.00
Investment property VII. 14 1,271,764,715.00 1,192,932,896.00
Fixed assets VII. 15 78,898,829,994.00 69,947,586,967.00
Construction in progress VII. 16 44,127,069,216.00 33,008,248,720.00
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Productive living assets 0.00 0.00
Oil-gas assets 0.00 0.00
Intangible assets VII. 17 3,046,125,155.00 3,136,873,387.00
R&D expenses 0.00 0.00
Goodwill VII. 18 197,963,688.00 197,963,688.00
Long-term deferred expense VII. 19 314,072,978.00 344,891,227.00
Deferred income tax assets VII. 20 149,942,508.00 146,538,565.00
Other non-current assets VII. 21 4,182,875,839.00 4,139,533,216.00
Total non-current assets 134,926,924,224.00 114,093,182,617.00
Total assets 225,472,484,104.00 205,135,011,042.00
Current liabilities:
Short-term borrowings VII. 22 6,088,832,994.00 4,916,965,507.00
Borrowings from the Central Bank 0.00 0.00
Money deposits accepted and inter-bank deposits 0.00 0.00
Interbank borrowings 0.00 0.00
Financial liabilities at fair value through profit/loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable VII. 23 526,641,067.00 640,262,461.00
Accounts payable VII. 24 15,215,611,240.00 13,835,615,665.00
50
Accounts received in advance VII. 25 857,046,320.00 548,942,714.00
Financial assets sold for repurchase 0.00 0.00
Fees and commissions payable 0.00 0.00
Payroll payable VII. 26 1,386,497,057.00 1,542,852,266.00
Taxes payable VII. 27 698,302,308.00 656,351,894.00
Interest payable VII. 28 551,546,168.00 676,358,748.00
Dividends payable VII. 29 1,063,292,009.00 9,651,170.00
Other accounts payable VII. 30 15,003,435,170.00 14,395,525,248.00
Reinsurance premiums payable 0.00 0.00
Insurance contract reserve 0.00 0.00
Payables for acting trading of securities 0.00 0.00
Payables for acting underwriting of securities 0.00 0.00
Liabilities held for sale 0.00 0.00
Non-current liabilities due within one year VII. 31 9,749,188,493.00 3,684,236,935.00
Other current liabilities VII. 32 936,175,310.00 532,983,474.00
Total current liabilities 52,076,568,136.00 41,439,746,082.00
Non-current liabilities:
Long-term borrowings VII. 33 53,462,402,931.00 49,885,166,211.00
Bonds payable VII. 34 9,961,519,616.00 9,956,719,508.00
Of which: Preference shares 0.00 0.00
Perpetual bonds 0.00 0.00
Long-term accounts payable VII. 35 2,191,493,751.00 1,261,446,565.00
Long-term payroll payable 0.00 0.00
Special payables 0.00 0.00
Provisions VII. 36 16,457,010.00 16,457,010.00
Deferred income VII. 37 2,432,273,493.00 2,494,122,929.00
Deferred income tax liabilities VII. 20 468,876,003.00 448,625,054.00
Other non-current liabilities VII. 38 7,392,781,797.00 7,616,672,523.00
Total non-current liabilities 75,925,804,601.00 71,679,209,800.00
Total liabilities 128,002,372,737.00 113,118,955,882.00
Owners’ equity:
Share capital VII. 39 35,153,067,743.00 35,153,067,743.00
Other equity instruments 0.00 0.00
Of which: Preference shares 0.00 0.00
51
Perpetual bonds 0.00 0.00
Capital reserve VII. 40 39,229,235,434.00 39,031,357,529.00
Less: Treasury shares VII. 41 666,312,967.00 314,350,824.00
Other comprehensive income VII. 42 85,086,899.00 75,718,703.00
Special reserve 0.00 0.00
Surplus reserve VII. 43 743,139,855.00 743,139,855.00
Provisions for general risks 0.00 0.00
Retained earnings VII. 44 7,267,082,811.00 4,011,055,487.00
Equity attributable to owners of the Company 81,811,299,775.00 78,699,988,493.00
Minority interests 15,658,811,592.00 13,316,066,667.00
Total owners’ equity 97,470,111,367.00 92,016,055,160.00
Total liabilities and owners’ equity 225,472,484,104.00 205,135,011,042.00
Legal representative: Wang Dongsheng Person-in-charge of the accounting work: Sun Yun
Chief of the accounting division: Yang Xiaoping
2. Balance Sheet of the Company
Unit: RMB Yuan
Item Notes Closing balance Opening balance
Current assets:
Monetary funds 4,491,765,703.00 7,649,349,412.00
Financial assets at fair value through profit/loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 1,525,989.00 200,197,354.00
Accounts receivable XV. 1 45,956,827.00 45,853,859.00
Accounts paid in advance 3,578,829.00 7,462,061.00
Interest receivable 1,141,264.00 21,525,261.00
Dividends receivable 181,395,319.00 1,007,950,479.00
Other accounts receivable XV. 2 1,167,306,167.00 1,629,176,234.00
Inventories 13,647,450.00 12,069,865.00
Assets held for sale 0.00 0.00
Non-current assets due within one year 3,489,880,000.00 0.00
Other current assets 31,727,901.00 25,504,074.00
Total current assets 9,427,925,449.00 10,599,088,599.00
52
Non-current assets:
Available-for-sale financial assets 183,197,854.00 177,166,908.00
Held-to-maturity investments 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investments XV. 3 114,050,700,295.00 99,918,451,449.00
Investment property 252,932,186.00 164,540,581.00
Fixed assets 846,868,417.00 862,860,227.00
Construction in progress 403,761,774.00 468,494,838.00
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Productive living assets 0.00 0.00
Oil-gas assets 0.00 0.00
Intangible assets 581,452,824.00 624,007,700.00
R&D expenses 0.00 0.00
Goodwill 0.00 0.00
Long-term deferred expense 83,821,954.00 98,745,001.00
Deferred income tax assets 51,348,646.00 47,679,645.00
Other non-current assets 715,433,457.00 4,010,146,153.00
Total non-current assets 117,169,517,407.00 106,372,092,502.00
Total assets 126,597,442,856.00 116,971,181,101.00
Current liabilities:
Short-term borrowings 0.00 0.00
Financial liabilities at fair value through profit/loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 27,792,790.00 34,015,337.00
Accounts received in advance 990,599,241.00 1,093,593,891.00
Payroll payable 88,725,961.00 169,917,103.00
Taxes payable 5,318,217.00 80,897,741.00
Interest payable 120,898,571.00 281,124,448.00
Dividends payable 1,053,029,447.00 6,451,170.00
Other accounts payable 8,288,526,830.00 10,791,929,737.00
Liabilities held for sale 0.00 0.00
Non-current liabilities due within one year 3,489,880,000.00 100,000,000.00
53
Other current liabilities 0.00 0.00
Total current liabilities 14,064,771,057.00 12,557,929,427.00
Non-current liabilities:
Long-term borrowings 22,033,000,000.00 18,922,400,000.00
Bonds payable 9,961,519,616.00 9,956,719,508.00
Of which: Preference shares 0.00 0.00
Perpetual bonds 0.00 0.00
Long-term payables 0.00 0.00
Long-term payroll payable 0.00 0.00
Special payables 0.00 0.00
Provisions 0.00 0.00
Deferred income 147,030,911.00 148,987,694.00
Deferred income tax liabilities 0.00 0.00
Other non-current liabilities 6,009,716,667.00 0.00
Total non-current liabilities 38,151,267,194.00 29,028,107,202.00
Total liabilities 52,216,038,251.00 41,586,036,629.00
Owners’ equity:
Share capital 35,153,067,743.00 35,153,067,743.00
Other equity instruments 0.00 0.00
Of which: Preference shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserve 38,157,600,408.00 38,157,600,408.00
Less: Treasury shares 666,312,967.00 314,350,824.00
Other comprehensive income 158,354,407.00 152,323,461.00
Special reserve 0.00 0.00
Surplus reserve 743,139,855.00 743,139,855.00
Retained earnings 835,555,159.00 1,493,363,829.00
Total owners’ equity 74,381,404,605.00 75,385,144,472.00
Total liabilities and owners’ equity 126,597,442,856.00 116,971,181,101.00
54
3. Consolidated Income Statement
Unit: RMB Yuan
Item Notes January-June 2017 January-June 2016
1. Operating revenues 44,605,027,995.00 26,448,310,717.00
Including: Sales income VII. 45 44,605,027,995.00 26,448,310,717.00
Interest income 0.00 0.00
Premium income 0.00 0.00
Fee and commission income 0.00 0.00
2. Operating costs 39,394,749,331.00 28,837,030,184.00
Including: Cost of sales VII. 45 32,235,266,589.00 23,987,091,158.00
Interest expenses 0.00 0.00
Fee and commission expenses 0.00 0.00
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount provided as insurance contract
0.00 0.00
reserve
Expenditure on policy dividends 0.00 0.00
Reinsurance premium 0.00 0.00
Taxes and surtaxes VII. 46 355,700,992.00 92,930,181.00
Selling expenses VII. 47 1,228,560,863.00 696,216,454.00
Administrative expenses VII. 48 3,052,661,575.00 2,311,090,435.00
Finance costs VII. 49 1,099,113,182.00 1,234,879,010.00
Asset impairment loss VII. 50 1,423,446,130.00 514,822,946.00
Add: Profit on fair value changes (“-” means loss) VII. 51 0.00 4,623,937.00
Investment income (“-” means loss) VII. 52 19,162,151.00 64,994,322.00
Including: Share of profit/loss of associates and
-13,690,554.00 -11,180,961.00
joint ventures
Exchange gains (“-” means loss) 0.00 0.00
Other gains VII. 53 275,302,864.00 0.00
3. Operating profit (“-” means loss) 5,504,743,679.00 -2,319,101,208.00
Add: Non-operating income VII. 54 54,506,578.00 1,793,732,882.00
Including: Profit on disposal of non-current
2,597,163.00 4,788,368.00
assets
Less: Non-operating expense VII. 55 24,426,637.00 5,876,931.00
Including: Loss on disposal of non-current 21,855,086.00 2,257,689.00
55
assets
4. Total profit (“-” means loss) 5,534,823,620.00 -531,245,257.00
Less: Corporate income tax VII. 56 940,261,615.00 56,258,311.00
5. Net profit (“-” means loss) 4,594,562,005.00 -587,503,568.00
Net profit attributable to owners of the Company 4,302,605,600.00 -516,472,418.00
Minority interests’ income 291,956,405.00 -71,031,150.00
6. Other comprehensive income net of tax VII. 57 -14,001,966.00 -26,340,409.00
Other comprehensive income net of tax
9,368,196.00 -26,340,409.00
attributable to owners of the Company
6.1 Other comprehensive income that will not
0.00 0.00
be reclassified into profit/loss
6.1.1 Changes in net liabilities or assets with
0.00 0.00
a defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income
of investees that cannot be reclassified into profit/loss 0.00 0.00
under the equity method
6.2 Other comprehensive income to be
9,368,196.00 -26,340,409.00
subsequently reclassified into profit/loss
6.2.1 Share of other comprehensive income
of investees that will be reclassified into profit/loss 0.00 -4,418,377.00
under the equity method
6.2.2 Profit/loss on fair value changes of
-2,155,092.00 -44,147,531.00
available-for-sale financial assets
6.2.3 Profit/loss on reclassifying
held-to-maturity investments into available-for-sale 0.00 0.00
financial assets
6.2.4 Effective profit/loss on cash flow
0.00 0.00
hedges
6.2.5 Currency translation differences 11,523,288.00 22,225,499.00
6.2.6 Other 0.00 0.00
Other comprehensive income net of tax
-23,370,162.00 0.00
attributable to minority interests
7. Total comprehensive income 4,580,560,039.00 -613,843,977.00
Attributable to owners of the Company 4,311,973,796.00 -542,812,827.00
Attributable to minority interests 268,586,243.00 -71,031,150.00
8. Earnings per share
8.1 Basic earnings per share 0.123 -0.015
8.2 Diluted earnings per share 0.123 -0.015
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB 0.00 Yuan, with the corresponding amount for the last period being RMB 0.00 Yuan.
56
Legal representative: Wang Dongsheng Person-in-charge of the accounting work: Sun Yun
Chief of the accounting division: Yang Xiaoping
4. Income Statement of the Company
Unit: RMB Yuan
Item Notes January-June 2017 January-June 2016
1. Operating revenues XV. 4 705,463,015.00 693,427,051.00
Less: Operating costs XV. 4 5,670,598.00 58,815,389.00
Taxes and surtaxes 18,569,385.00 2,344,938.00
Selling expenses 1,021,144.00 4,386,080.00
Administrative expenses 684,340,188.00 569,405,477.00
Finance costs 205,355,880.00 60,850,293.00
Asset impairment loss 0.00 0.00
Add: profit on fair value changes (“-” means loss) 0.00 0.00
Investment income (“-” means loss) XV. 5 594,517,970.00 18,377,124.00
Including: Share of profit/loss of associates and
-13,690,554.00 -11,180,961.00
joint ventures
Other gains 9,628,783.00 0.00
2. Operating profit (“-” means loss) 394,652,573.00 16,001,998.00
Add: Non-operating income 2,306,707.00 27,771,591.00
Including: Profit on disposal of non-current assets 0.00 83,799.00
Less: Non-operating expense 862,539.00 374,260.00
Including: Loss on disposal of non-current assets 182,599.00 8,690.00
3. Total profit (“-” means loss) 396,096,741.00 43,399,329.00
Less: Corporate income tax 7,327,135.00 3,399,274.00
4. Net profit (“-” means loss) 388,769,606.00 40,000,055.00
5. Other comprehensive income net of tax 6,030,946.00 -22,046,095.00
5.1 Other comprehensive income that will not be
0.00 0.00
reclassified into profit and loss
5.1.1 Changes in net liabilities or assets with a
0.00 0.00
defined benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of
investees that cannot be reclassified into profit/loss 0.00 0.00
under the equity method
5.2 Other comprehensive income to be subsequently
6,030,946.00 -22,046,095.00
reclassified into profit/loss
57
5.2.1 Share of other comprehensive income of
investees that will be reclassified into profit/loss under 0.00 0.00
the equity method
5.2.2 Profit/loss on fair value changes of
6,030,946.00 -22,046,095.00
available-for-sale financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity
0.00 0.00
investments into available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges 0.00 0.00
5.2.5 Currency translation differences 0.00 0.00
5.2.6 Other 0.00 0.00
6. Total comprehensive income 394,800,552.00 17,953,960.00
7. Earnings per share
7.1 Basic earnings per share 0.011 0.001
7.2 Diluted earnings per share 0.011 0.001
5. Consolidated Cash Flow Statement
Unit: RMB Yuan
Item Notes January-June 2017 January-June 2016
1. Cash flows associated with operating activities:
Cash received from sale of commodities and
43,665,151,353.00 24,660,608,318.00
rendering of service
Net increase in money deposits from customers and
0.00 0.00
interbank placements
Net increase in loans from the Central Bank 0.00 0.00
Net increase in funds borrowed from other financial
0.00 0.00
institutions
Cash received from premium of original insurance
0.00 0.00
contracts
Net cash received from reinsurance business 0.00 0.00
Net increase in deposits of policy holders and
0.00 0.00
investment fund
Net increase in disposal of financial assets at fair
0.00 0.00
value through profit/loss
Interest, fees and commissions received 0.00 0.00
Net increase in interbank borrowings 0.00 0.00
Net increase in funds in repurchase business 0.00 0.00
Tax refunds received 3,662,030,436.00 1,773,162,511.00
Cash generated by other operating activities VII. 58（1） 768,953,070.00 1,554,539,195.00
58
Subtotal of cash generated by operating activities 48,096,134,859.00 27,988,310,024.00
Cash paid for goods and services 28,313,641,143.00 18,580,530,133.00
Net increase in loans and advances to customers 0.00 0.00
Net increase in funds deposited in the Central Bank
0.00 0.00
and interbank placements
Cash paid for claims of original insurance contracts 0.00 0.00
Interest, fees and commissions paid 0.00 0.00
Cash paid as policy dividends 0.00 0.00
Cash paid to and for employees 4,183,675,298.00 3,000,913,336.00
Taxes paid 2,139,357,844.00 793,428,583.00
Cash used in other operating activities VII. 58（2） 2,820,869,308.00 2,879,351,017.00
Subtotal of cash used in operating activities 37,457,543,593.00 25,254,223,069.00
Net cash generated by operating activities 10,638,591,266.00 2,734,086,955.00
2. Cash flows associated with investing activities:
Cash received from retraction of investments 8,594,039,173.00 15,988,345,399.00
Cash received as investment income 34,325,731.00 83,197,527.00
Net cash received from disposal of fixed assets,
58,574,338.00 81,891,572.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
0.00 0.00
other business units
Cash generated by other investing activities VII. 58（3） 1,651,837,600.00 882,751,810.00
Subtotal of cash generated by investing activities 10,338,776,842.00 17,036,186,308.00
Cash paid to acquire fixed assets, intangible assets
24,969,365,239.00 7,098,361,611.00
and other long-term assets
Cash paid for investment 16,940,890,821.00 21,154,818,990.00
Net increase in pledged loans 0.00 0.00
Net cash paid to acquire subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities VII. 58（4） 417,993,963.00 1,416,268,111.00
Subtotal of cash used in investing activities 42,328,250,023.00 29,669,448,712.00
Net cash generated by investing activities -31,989,473,181.00 -12,633,262,404.00
3. Cash flows associated with financing activities:
Cash received from capital contributions 6,105,150,000.00 3,008,499,427.00
Including: Cash received from minority shareholder
0.00 0.00
investments by subsidiaries
Cash received as borrowings 17,478,499,523.00 9,321,691,631.00
Cash received from issuance of bonds 0.00 10,000,000,000.00
59
Cash generated by other financing activities VII. 58（5） 98,452,479.00 379.00
Subtotal of cash generated by financing activities 23,682,102,002.00 22,330,191,437.00
Repayment of borrowings 5,752,923,590.00 7,177,513,007.00
Cash paid for interest expenses and distribution of
2,030,450,605.00 1,247,945,239.00
dividends or profit
Including: dividends or profit paid by subsidiaries
0.00 0.00
to minority interests
Cash used in other financing activities VII. 58（6） 649,313,318.00 34,652,203.00
Sub-total of cash used in financing activities 8,432,687,513.00 8,460,110,449.00
Net cash generated by financing activities 15,249,414,489.00 13,870,080,988.00
4. Effect of foreign exchange rate changes on cash and
-455,025,939.00 -117,602,143.00
cash equivalents
5. Net increase in cash and cash equivalents -6,556,493,365.00 3,853,303,396.00
Add: Opening balance of cash and cash
49,354,810,388.00 36,182,738,217.00
equivalents
6. Closing balance of cash and cash equivalents VII. 59（3） 42,798,317,023.00 40,036,041,613.00
6. Cash Flow Statement of the Company
Unit: RMB Yuan
Item Notes January-June 2017 January-June 2016
1. Cash flows associated with operating activities:
Cash received from sale of commodities and
710,405,975.00 319,644,675.00
rendering of service
Tax refunds received 0.00 1,327,240.00
Cash generated by other operating activities 304,429,662.00 1,475,704,664.00
Subtotal of cash generated by operating activities 1,014,835,637.00 1,796,676,579.00
Cash paid for goods and services 198,978,019.00 158,972,319.00
Cash paid to and for employees 380,998,757.00 248,492,467.00
Taxes paid 175,285,708.00 62,726,325.00
Cash used in other operating activities 2,690,735,937.00 1,872,139,111.00
Subtotal of cash used in operating activities 3,445,998,421.00 2,342,330,222.00
Net cash generated by operating activities -2,431,162,784.00 -545,653,643.00
2. Cash flows associated with investing activities:
Cash received from retraction of investments 0.00 4,022,161,515.00
Cash received as investment income 1,434,763,684.00 29,558,084.00
Net cash received from disposal of fixed assets,
2,096.00 185,464.00
intangible assets and other long-term assets
60
Net cash received from disposal of subsidiaries or
0.00 0.00
other business units
Cash generated by other investing activities 1,122,010,303.00 10,654,523.00
Subtotal of cash generated by investing activities 2,556,776,083.00 4,062,559,586.00
Cash paid to acquire fixed assets, intangible assets
98,591,704.00 490,766,406.00
and other long-term assets
Cash paid for investment 14,153,939,400.00 16,374,019,482.00
Net cash paid to acquire subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities 700,914,519.00 1,101,301,713.00
Subtotal of cash used in investing activities 14,953,445,623.00 17,966,087,601.00
Net cash generated by investing activities -12,396,669,540.00 -13,903,528,015.00
3. Cash flows associated with financing activities:
Cash received from capital contributions 0.00 0.00
Cash received as borrowings 12,533,000,000.00 6,940,000,000.00
Cash received from issuance of bonds 0.00 10,000,000,000.00
Cash generated by other financing activities 19.00 379.00
Subtotal of cash generated by financing activities 12,533,000,019.00 16,940,000,379.00
Repayment of borrowings 0.00 423,155,128.00
Cash paid for interest expenses and distribution of
459,582,730.00 402,453,000.00
dividends or profit
Cash used in other financing activities 351,381,074.00 1,324.00
Sub-total of cash used in financing activities 810,963,804.00 825,609,452.00
Net cash generated by financing activities 11,722,036,215.00 16,114,390,927.00
4. Effect of foreign exchange rate changes on cash and
-4,955,113.00 10,403,270.00
cash equivalents
5. Net increase in cash and cash equivalents -3,110,751,222.00 1,675,612,539.00
Add: Opening balance of cash and cash equivalents 7,548,700,412.00 3,322,215,443.00
6. Closing balance of cash and cash equivalents 4,437,949,190.00 4,997,827,982.00
61
7. Consolidated Statement of Changes in Owners’ Equity
January-June 2017
Unit: RMB Yuan
January-June 2017
Equity attributable to owners of the Company
Item Other equity instruments Other General
Less: Treasury Special Minority interests Total owners’ equity
Share capital Preference Perpetual Capital reserve comprehensive Surplus reserve risk Retained earnings
Other shares reserve
shares bonds income reserve
1. Balance at
the end of the 35,153,067,743.00 0.00 0.00 0.00 39,031,357,529.00 314,350,824.00 75,718,703.00 0.00 743,139,855.00 0.00 4,011,055,487.00 13,316,066,667.00 92,016,055,160.00
prior year
Add:
Changes in
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policies
Correction of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
errors in prior
periods
Business
mergers under
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the same
control
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balance at
the beginning 35,153,067,743.00 0.00 0.00 0.00 39,031,357,529.00 314,350,824.00 75,718,703.00 0.00 743,139,855.00 0.00 4,011,055,487.00 13,316,066,667.00 92,016,055,160.00
of the year
62
3. Increase/
decrease in the
period (“-” 0.00 0.00 0.00 0.00 197,877,905.00 351,962,143.00 9,368,196.00 0.00 0.00 0.00 3,256,027,324.00 2,342,744,925.00 5,454,056,207.00
means
decrease)
3.1 Total
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 9,368,196.00 0.00 0.00 0.00 4,302,605,600.00 268,586,242.00 4,580,560,038.00
income
3.2 Capital
increased and
0.00 0.00 0.00 0.00 197,877,905.00 351,962,143.00 0.00 0.00 0.00 0.00 0.00 2,081,586,935.00 1,927,502,697.00
reduced by
owners
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,105,150,240.00 6,105,150,240.00
increased by
shareholders
3.2.2
Capital
increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of
other equity
instruments
3.2.3
Amounts of
share-based
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
payments
charged to
owners’ equity
3.2.4 0.00 0.00 0.00 0.00 197,877,905.00 351,962,143.00 0.00 0.00 0.00 0.00 0.00 -4,023,563,305.00 -4,177,647,543.00
63
Other
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -7,428,252.00 -1,054,006,528.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserve
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general risk
provisions
3.3.3
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -7,428,252.00 -1,054,006,528.00
to owners (or
shareholders)
3.3.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.4 Internal
carry-forward
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of owners’
equity
3.4.1
New increase
of capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from capital
reserve
3.4.2
New increase 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of capital (or
64
share capital)
from surplus
reserve
3.4.3
Surplus
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve for
making up loss
3.4.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Special
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Withdrawn for 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Closing
35,153,067,743.00 0.00 0.00 0.00 39,229,235,434.00 666,312,967.00 85,086,899.00 0.00 743,139,855.00 0.00 7,267,082,811.00 15,658,811,592.00 97,470,111,367.00
balance
January-June 2016
Unit: RMB Yuan
January-June 2016
Equity attributable to owners of the Company
Item Other equity instruments Total owners’
Other General
Less: Treasury Special Retained Minority interests
Share capital Capital reserve comprehensive Surplus reserve risk equity
Preference Perpetual
Other shares reserve earnings
shares bonds income reserve
1. Balance at the end of 35,153,067,743.00 0.00 0.00 0.00 39,018,900,467.00 0.00 90,153,009.00 0.00 592,242,059.00 0.00 2,630,912,286.00 865,554,255.00 78,350,829,819.00
65
the prior year
Add: Changes in
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting policies
Correction of errors
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in prior periods
Business mergers
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
under the same control
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balance at the
35,153,067,743.00 0.00 0.00 0.00 39,018,900,467.00 0.00 90,153,009.00 0.00 592,242,059.00 0.00 2,630,912,286.00 865,554,255.00 78,350,829,819.00
beginning of the year
3. Increase/ decrease in the
period (“-” means 0.00 0.00 0.00 0.00 12,457,062.00 314,350,824.00 -14,434,306.00 0.00 150,897,796.00 0.00 1,380,143,201.00 12,450,512,412.00 13,665,225,341.00
decrease)
3.1 Total
0.00 0.00 0.00 0.00 0.00 0.00 -14,434,306.00 0.00 0.00 0.00 1,882,571,674.00 209,092,587.00 2,077,229,955.00
comprehensive income
3.2 Capital increased
0.00 0.00 0.00 0.00 11,579,348.00 314,350,824.00 0.00 0.00 0.00 0.00 0.00 12,250,152,355.00 11,947,380,879.00
and reduced by owners
3.2.1 Ordinary shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by shareholders
3.2.2 Capital
increased by holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity instruments
3.2.3 Amounts of
share-based payments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
charged to owners’ equity
3.2.4 Other 0.00 0.00 0.00 0.00 11,579,348.00 314,350,824.00 0.00 0.00 0.00 0.00 0.00 12,250,152,355.00 11,947,380,879.00
3.3 Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150,897,796.00 0.00 -502,428,473.00 -8,732,530.00 -360,263,207.00
3.3.1 Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150,897,796.00 0.00 -150,897,796.00 0.00 0.00
to surplus reserve
66
3.3.2 Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general risk provisions
3.3.3 Appropriation
to owners (or 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -351,530,677.00 -8,732,530.00 -360,263,207.00
shareholders)
3.3.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Internal
carry-forward of owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
3.4.1 New increase of
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from capital reserve
3.4.2 New increase of
capital (or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus reserve
3.4.3 Surplus reserve
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
for making up loss
3.4.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Special reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.1 Withdrawn for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2 Used in the
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 877,714.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 877,714.00
4. Closing balance 35,153,067,743.00 0.00 0.00 0.00 39,031,357,529.00 314,350,824.00 75,718,703.00 0.00 743,139,855.00 0.00 4,011,055,487.00 13,316,066,667.00 92,016,055,160.00
67
8. Statement of Changes in Owners’ Equity of the Company
January-June 2017
Unit: RMB Yuan
January-June 2017
Other equity instruments Other
Item Less: Treasury Special
Share capital Preference Perpetual Capital reserve comprehensive Surplus reserve Retained earnings Total owners’ equity
Other shares reserve
shares bonds income
1. Balance at the end of the prior
35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 314,350,824.00 152,323,461.00 0.00 743,139,855.00 1,493,363,829.00 75,385,144,472.00
year
Add: Changes in accounting
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
policies
Correction of errors in prior
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
periods
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balance at the beginning of the
35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 314,350,824.00 152,323,461.00 0.00 743,139,855.00 1,493,363,829.00 75,385,144,472.00
year
3. Increase/ decrease in the period
0.00 0.00 0.00 0.00 0.00 351,962,143.00 6,030,946.00 0.00 0.00 -657,808,670.00 -1,003,739,867.00
(“-” means decrease)
3.1 Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 6,030,946.00 0.00 0.00 388,769,606.00 394,800,552.00
3.2 Capital increased and
0.00 0.00 0.00 0.00 0.00 351,962,143.00 0.00 0.00 0.00 0.00 -351,962,143.00
reduced by owners
3.2.1 Ordinary shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by shareholders
3.2.2 Capital increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of other equity instruments
3.2.3 Amounts of share-based
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
payments charged to owners’ equity
68
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 351,962,143.00 0.00 0.00 0.00 0.00 -351,962,143.00
3.3 Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -1,046,578,276.00
3.3.1 Appropriation to surplus
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.3.2 Appropriation to owners
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,046,578,276.00 -1,046,578,276.00
(or shareholders)
3.3.3 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
3.4.1 New increase of capital
(or share capital) from capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.4.2 New increase of capital
(or share capital) from surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.4.3 Surplus reserve for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
making up loss
3.4.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Special reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.1 Withdrawn for the period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.2 Used in the period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Closing balance 35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 666,312,967.00 158,354,407.00 0.00 743,139,855.00 835,555,159.00 74,381,404,605.00
69
January-June 2016
Unit: RMB Yuan
January-June 2016
Other equity instruments Other
Item Less: Treasury Special
Share capital Preference Perpetual Capital reserve comprehensive Surplus reserve Retained earnings Total owners’ equity
Other shares reserve
shares bonds income
1. Balance at the end of the prior
35,153,067,743.00 0.00 0.00 0.00 38,152,869,635.00 0.00 109,786,796.00 0.00 592,242,059.00 486,814,338.00 74,494,780,571.00
year
Add: Changes in accounting
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
policies
Correction of errors in prior
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
periods
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Balance at the beginning of the
35,153,067,743.00 0.00 0.00 0.00 38,152,869,635.00 0.00 109,786,796.00 0.00 592,242,059.00 486,814,338.00 74,494,780,571.00
year
3. Increase/ decrease in the period
0.00 0.00 0.00 0.00 4,730,773.00 314,350,824.00 42,536,665.00 0.00 150,897,796.00 1,006,549,491.00 890,363,901.00
(“-” means decrease)
3.1 Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 42,536,665.00 0.00 0.00 1,508,977,964.00 1,551,514,629.00
3.2 Capital increased and reduced
0.00 0.00 0.00 0.00 0.00 314,350,824.00 0.00 0.00 0.00 0.00 -314,350,824.00
by owners
3.2.1 Ordinary shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by shareholders
3.2.2 Capital increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of other equity instruments
3.2.3 Amounts of share-based
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
payments charged to owners’ equity
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 314,350,824.00 0.00 0.00 0.00 0.00 -314,350,824.00
3.3 Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150,897,796.00 -502,428,473.00 -351,530,677.00
70
3.3.1 Appropriation to surplus
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150,897,796.00 -150,897,796.00 0.00
reserve
3.3.2 Appropriation to owners
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -351,530,677.00 -351,530,677.00
(or shareholders)
3.3.3 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Internal carry-forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
3.4.1 New increase of capital
(or share capital) from capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.4.2 New increase of capital
(or share capital) from surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.4.3 Surplus reserve for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
making up loss
3.4.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Special reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.1 Withdrawn for the period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5.2 Used in the period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.6 Other 0.00 0.00 0.00 0.00 4,730,773.00 0.00 0.00 0.00 0.00 0.00 4,730,773.00
4. Closing balance 35,153,067,743.00 0.00 0.00 0.00 38,157,600,408.00 314,350,824.00 152,323,461.00 0.00 743,139,855.00 1,493,363,829.00 75,385,144,472.00
71
III. Company profile
BOE Technology Group Company Limited (the “Company”) is a company limited by shares established on April 9, 1993 at Beijing,
with its head office located in Beijing. The parent of the Company is Beijing Electronics Holdings Co., Ltd. (“Electronics
Holdings”).
The Company and the affiliated subsidiaries (hereinafter referred to as “the Group” for short) divided into three major business group:
display and sensor device business, intelligent system products and heath service.
The details of the relevant information of the Company and its subsidiaries were on Notes XII. 2. During the Reporting Period, as for
the situation of the newly increased and decreased subsidiaries, please refer to Notes VIII. 2.
IV. Basis for preparation of financial statements
1. Basis for the preparation
The financial statements have been prepared on the basis of going concern.
2. Continuing operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant accounting policies and estimates
Reminder of the specific accounting policies and estimates: Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprises
issued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely the
consolidated financial position and financial position as of June 30, 2017, the consolidated results of operations and results of
operations and the consolidated cash flows and cash flows in the first half year of 2017 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information
Disclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the China
Securities Regulatory Commission in 2014.
2. Accounting period
The accounting year of the Group is from 1 January to 31 December.
3. Operating cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal
operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
72
4. Functional currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing the
functional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. The
Company translates the foreign currency financial statement of subsidiaries when compiling the financial statement.
The currency where the overseas subsidiaries and their main economic circumstances of the operation involved is the functional
currency. Renminbi is the bookkeeping base currency when preparing the financial statements for the Reporting Period.
5. Accounting treatments for a business combination involving entities under and those not under common
control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is
not transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined
at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of
consideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If
the balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Group
conducting business combinations is recognized in current profit and loss. The combination date is the date on which one combining
enterprise effectively obtains control of the other combining enterprises.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining entities
are not ultimately controlled by the same party or parties both before and after the business combination. When the Group acts as the
combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date of
assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity
securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities
or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability
securities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss.
The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the
acquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The
acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchasees
held before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchase
date with the difference between the fair value and its book value be recorded in the current investment income. The other
comprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the other
owners under the measurement of the equity method that involved with the afterwards equity of the purchasees held before the
purchase date should be transferred in the current investment income.
6. Preparation methods for consolidated financial statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and its
73
subsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the
investee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right on
the investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed
by the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity in
consolidated income statement and the net profits in the consolidated income statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy at
owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes
necessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period or accounting
policies. Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the
same way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities under common
control, the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the
consolidated balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the
date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financial
statements are restated.
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under common
control, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into the
consolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.
(3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment income
during the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair value
at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing
control right.
Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multiple
transactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;
- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one other transactions；
- A deal alone is not economical, it is economical with other trading together.
If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposed
according to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing the
control right.
If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,
the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated
since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated
financial statements, which together transferred into the current profits and losses in the loss of control , when the Group losing
control on its subsidiary.
74
(4) Changes of the equities of the minority shareholders
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in a
subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and the
amount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If
the credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are both
restricted by the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant
should not individually control the arrangement, while any of the participant that owns the jointly control could stop other
participants or the participants group from individually control the arrangement.
Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where the
participant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement
where the participant party is only entitled to the net assets of the arrangement.
The participant party should confirm the following items related to the interests portion among the jointly operation and execute the
accounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in
the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the joint
operation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from sale
of the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and the
expense incurred to the joint operation according to the Group’s stake in it.
8. Recognition standard for cash and cash equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term
and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are
minimal.
9. Foreign currency businesses and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rate
at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange
rates at the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. The
resulting exchange differences are recognized in profit or loss, except those arising from the principals and interests on foreign
currency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction
date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange
rate at the date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of
available-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; other
differences shall be recognized in current profit or loss.
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. The
equity items, excluding “Retained earning”, are translated to Renminbi at the spot exchange rates at the transaction dates. The
income and expenses of foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the
75
transaction dates. The resulting exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation,
the cumulative amount of the exchange differences recognized in equity which relates to that foreign operation is transferred to profit
or loss in the period in which the disposal occurs.
10. Financial instruments
Financial instruments comprise monetary funds, bonds investment, equity investment other than long-term equity investment,
receivables, payables, borrowings and share capital, etc.
(1) Recognition and measurement of the financial assets and financial liabilities
A financial asset or financial liability is recognized in the balance sheet when the Group becomes a party to the contractual
provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial recognition based on the purpose of acquiring
assets or assuming liabilities: financial assets and financial liabilities at fair value through profit or loss, loans and receivables,
held-to-maturity investments, available-for-sale financial assets and other financial liabilities.
Financial assets and liabilities are measured initially at fair value. For financial assets and liabilities at fair value through profit or loss,
any directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities,
any attributed transaction costs are included in their initial costs. Subsequent to initial recognition financial assets and liabilities are
measured as follows:
– Financial assets and financial liabilities at fair value through profit or loss (including financial assets or financial liabilities held for
trading)
Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or loss are measured at fair value,
and changes therein are recognized in profit or loss.
– Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Subsequent to initial recognition, receivables are subsequently stated at amortized cost using the effective interest method.
– Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the
Group has the positive intention and ability to hold to maturity.
Subsequent to initial recognition, held-to-maturity investments are stated at amortized cost using the effective interest method.
– Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as available for
sale and other financial assets which do not fall into any of the above categories.
As for the available-for-sale financial assets whose fair value cannot be reliably measured is measured at cost subsequent to initial
recognition; except that, subsequent to initial recognition, other available-for-sale financial assets are measured at fair value and
changes therein, except for impairment losses and foreign exchange gains and losses from monetary financial assets, which are
recognized directly in profit or loss, are considered as other comprehensive income to be recognized directly in capital reserves.
When an investment is derecognized, the cumulative gain or loss in equity is removed from equity and recognized in profit or loss.
Dividend income from these equity instruments is recognized in profit or loss when the investee declares the dividends. Interest on
available-for-sale financial assets calculated using the effective interest method is recognized in profit or loss.
– Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or loss are classified as other financial liabilities.
Other financial liabilities include the liabilities arising from financial guarantee contracts. Financial guarantees are contracts that
require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the holder) for a loss
the holder incurs because a specified debtor fails to make payment when due, in accordance with the terms of a debt instrument.
76
Where the Group issues a financial guarantee, subsequent to initial recognition, the guarantee is measured at the higher of the amount
initially recognized less accumulated amortization and the amount of a provision determined in accordance with the principles of
contingent liabilities.
Except for the liabilities arising from financial guarantee contracts described above, subsequent to initial recognition, other financial
liabilities are measured at amortized cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
The financial assets and financial liabilities are respectively presented in the balance sheet without mutual offset. However, for those
simultaneously meet with the following conditions, should be presented in the balance sheet by the net amount after mutual offset:
-The Group owns the legal right of neutralizing the recognized amount and the right is executable at present:
-The Group plans to settle by the net amount or to realize the financial assets and to clear off the financial liabilities at the same time.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognized if the Group’s contractual rights to the cash flows from the financial asset expire or if the Group
transfers substantially all the risks and rewards of ownership of the financial asset to another party.
Where a transfer of a financial asset in its entirety meets the criteria of derecognition, the difference between the two amounts below
is recognized in profit or loss:
– Carrying amount of the financial asset transferred
– The sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized directly in equity.
The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged.
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit or loss) are reviewed at each balance sheet date
to determine whether there is objective evidence of impairment.
Objective evidence of impairment includes but not is limited to the followings:
(a) A serious financial difficulty occurs to the issuer or debtor;
(b) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or the
principal, etc.;
(c) The debtor will probably become bankrupt or carry out other financial reorganizations;
(d) The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of the issuer;
(e) Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the issuer
of instruments operates its business, which makes the investor of an equity instrument unable to take back its investment;
(f) Where the fair value of the equity instrument investment drops significantly or not contemporarily (which the fair value declined
of 50%) or not contemporarily (which the fair value constantly declined over than 9 months) etc.
For the methods of the impairment of the relevant accounts receivable, please refer to Notes V. 11. The methods of the impairment of
other financial assets are as follows:
– Held-to-maturity investments
Held-to-maturity investments are assessed for impairment on an individual basis.
An impairment loss in respect of a held-to-maturity investment is calculated as the excess of its carrying amount over the present
value of the estimated future cash flows (exclusive of future credit losses that have not been incurred) discounted at the original
effective interest rate. All impairment losses are recognized in profit or loss.
If, after an impairment loss has been recognized on held-to-maturity investments, there is objective evidence of a recovery in value of
the financial asset which can be related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed through profit or loss. The reversed carrying amount shall not be any more than the
post-amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for the
impairment.
77
– Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual and combination basis. When an available-for-sale
financial asset is impaired, the cumulative loss arising from a decline in fair value that has been recognized directly in equity is
removed from equity and recognized in profit or loss even though the financial asset has not been derecognized.
If, after an impairment loss has been recognized on an available-for-sale debt instrument, the fair value of the debt instrument
increases in a subsequent period and the increase can be objectively related to an event occurring after the impairment loss was
recognized, the impairment loss is reversed through profit or loss. An impairment loss recognized for an investment in an equity
instrument classified as available-for-sale is not reversed through profit or loss. However, for the investment on the equity
instruments without any quoted price among the active market with the fair value could not be reliable measured, should not be
reversed.
(5) Equity investments
After the consideration received from issuing the equity instruments by the Company deducted the transaction expenses, should be
recorded in the shareholders’ equities. To repurchase the consideration and transaction expenses paid for the equity instruments and
to decrease the shareholders’ equities.
When repurchasing the shares of the Company, those repurchased shares should be managed as the treasury stocks, and the whole
expenses should be transferred as the treasury stocks cost and at the same time executes the future reference registration. The treasury
stocks would not participate in the profits distribution and would be represented as the allowance items of the shareholders’ equities
among the sheet balance.
When executing the written-off of the treasury stocks, should decrease the share capital according to the total amount of the face
value of the stocks and for the part that the cost of the treasury stocks exceeds the total amount of the face value, should successively
write down the capital surplus (capital stock premium), earned surplus and retained earnings; for the cost of the treasury stocks less
than the total amount of the face value, the part that lower than the total amount of the face value should increase the capital surplus
(capital stock premium).
When transferring the treasury stocks, for the part of the revenues of the transfer that higher than the cost of the treasury stocks,
should increase the capital surplus (capital stock premium); for the part that lower than the cost of the treasury stocks, should
successively write down the capital surplus (capital stock premium), earned surplus and retained earnings.
(6) Convertible instruments
– Convertible instruments
For the convertible instruments issued by the Group which could be converted as the equity shares and when converting, the shares
number and the amount of the consideration are fixed, the Group consider which as the compound instruments that includes the
components of liabilities and equities.
When executing the initial recognition, the Group splits the relevant liabilities and equities and firstly recognizes the fair value of the
liabilities (including the fair value of the non-equity embedded derivative possibly included) then deducts the fair value of the
liabilities component from the fair value of the compound instruments as the value of the equities component as well as record which
in the equities component. The transaction expenses occurred from issuing the compound instruments, should amortize which
according to each proportion of the total issuance price between the liabilities component and the equities component.
After the initial recognition, for the liabilities component without appointed to be measured by fair value and to be recorded in the
current gains and losses with the changes, should be measured by the effective interest method according to the amortized cost. And
the equities component would not be remeasured after the initial measurement.
When converting the convertible instruments, the Group transfers the liabilities component and the equities component to the
relevant subjects. When the convertible instruments are redeemed, the price paid and the occurred transaction expenses should be
distributed to the equities and liabilities component. The methods of the distribution price and the transaction expenses are
unanimous with the distribution methods adopt when issuing the instruments. After the distribution of the price and transaction
78
expenses, for the differences between which and the book value of the equities component and between the book value of the
liabilities component, the part related to the equities component should be recorded in the equity while the part related to the
liabilities component should be recorded in the gains and losses.
– Other convertible instruments excluding the equities component
For the other convertible instruments excluding the equities component issued by the Group, when executing the initial recognition,
the derivative instruments component of the convertible instruments should be measured by fair value while the remained part should
be regarded as the initial recognized amount of the main debt instruments.
After the initial recognition, for the derivative instruments component, should be measured by fair value, and the gains or losses
formed from the changes of the fair value should be recorded in the current gains and losses. As for the main debt instruments,
should be measured by the effective interest rate according to the amortized cost.
When converting the convertible instruments, the Group transfers the main debt instruments and derivative instruments to the
relevant subjects. When the convertible instruments are redeemed, the deference between the paid price and the book value of the
main debt instruments as well as the derivative instruments should be recorded in the gains and losses.
Notes: Provide the classification, confirmation bases and measurement methods of financial tools, the confirmation bases and
measurement methods of transfer of financial assets, the confirmation conditions of termination of financial liabilities, the fair value
calculation methods of financial assets and financial liabilities, the test methods and accounting treatment methods of financial assets
(receivables excluded).
11. Receivables
Receivables are assessed for impairment both on an individual basis and on a collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect of a receivable is calculated as the excess of its
carrying amount over the present value of the estimated future cash flows (exclusive of future credit losses that have not been
incurred) discounted at the original effective interest rate. All impairment losses are recognised in profit or loss. The Group
recognised receivables individually greater than RMB 50,000,000 as significant and perform impairment test on an individual basis.
Those receivables individually insignificant but with specific natures, i.e. legal issue or customer credit issue, are also reviewed and
tested on an individual basis.
The assessment is made collectively where receivables share similar credit risk characteristics (including those not having been
individually assessed as impaired), based on their historical loss experiences, and adjusted by the observable factors reflecting
present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective evidence of a recovery in value of the financial
asset which can be related objectively to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss. A reversal of an impairment loss will not result in the asset’s carrying amount
exceeding what the amortised cost would have been determined had no impairment loss been recognised in prior years.
12. Inventory
(1) Classification and cost of inventories
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include low-value
consumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition of fixed assets.
Inventories are initially measured by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.
Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress and
finished goods include direct labor costs and an appropriate allocation of production overheads.
79
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.
Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adopting
one-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventories
On the balance sheet day, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and the
estimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the production
of inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities of
inventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of
inventories shall be based on general selling prices.
Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in the
value of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories:
The Group maintains a perpetual inventory system.
13. Divided as assets held for sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through selling
or other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction,
the same below )which simultaneously meet with the following conditions as the assets held for sale.
– The assets could be immediately sold only according to the usual terms of selling this kind of assets under the current condition;
– The Group had made resolutions on disposing the assets;
– The Group had signed the irrevocable assignment agreement with the transferees; and the transfer will be completed within 1 year.
When the non-current assets be divided as assets held for sale, the Group measures the non-current assets held for sale, deferred
income tax assets and the investment properties be follow-up measured by the fair value mode according to the lower one between
the book value and the fair value after deducting the net amount of the disposal expenses, while the deference that the book value
higher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of the assets.
The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by the
cost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held for
sale that measured by equity method should cease the equity method measurement.
14. Long-term equity investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Investments in subsidiaries
– The initial investment cost of a long-term equity investment obtained through a business combination involving entities under
common control is the Company’s share of the subsidiary’s equity at the combination date. The difference between the initial
investment cost and the carrying amounts of the consideration given is adjusted to share premium in capital reserve. If the balance of
the share premium is insufficient, any excess is adjusted to retained earnings. For the long-term equity investment of the subsidiaries
formed from the enterprise merger under the same control that realized step by step of the multiple transaction not belong to package
deal, the Company would adjust the capital stock premium among the capital surplus according to the difference between the initial
80
investment cost of the long-term equity investment recognized according to the above principles and the sum of the book value of the
long-term equity investment before reaching the merger and the book value of the newly paid consideration which be further
received on the merger date, and if the balance of the share premium is insufficient, any excess is adjusted to retained earnings.
– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,
of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on
the acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment
obtained through a business combination involving entities not under common control by two or more transactions and by several
steps, the initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the
acquisition date held by the Company and newly investment cost at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business combination
– An investment in a subsidiary acquired otherwise than through a business combination is initially recognized at initial investment
cost if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an investment is acquired by
issuing equity securities, or at the value stipulated in the investment contract or agreement if an investment is contributed by
shareholders.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment
(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for using the cost method. Cash dividends or profit
distributions declared by subsidiaries and attributed to the Company shall be recognized as investment income, without dividing
whether it’s the net profit realized by the investee before the investment or after the investment, except those that have been declared
but unpaid at the time of acquisition and therefore included in the price paid or consideration.
The investment of the subsidiaries is stated at cost less impairment losses in the balance sheet.
For the impairment test methods and the withdrawal methods of the impairment of the investment of the subsidiaries, please refer to
the Notes V. 20.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles.
(b) Investment in jointly controlled enterprises and associates
The joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoy
the rights of their own net assets.
An associate is an enterprise over which the Group has significant influence.
Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equity
method, unless the investment is classified as held for sale.
The Group makes the following accounting treatments when using the equity method:
– Where the initial investment cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially recognized at the initial investment cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition, the
investment is initially recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting the
amortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoption
of CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of the
equity investment difference is amortized using the straight-line method over a period which is determined in accordance with
previous accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the
investment is reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and
losses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as
81
“changes of other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be
enjoyed or shared, and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’
equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interest
in the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates
or jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of
impairment.
– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity
investment and any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointly
controlled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net
profits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of those
profits only after its share of the profits equals the share of losses not recognized.
For the impairment test methods and the withdrawal methods of the impairment provision of the investment on the joint ventures and
the associated enterprises by the Group, please refer to Notes V. 20.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities of
the arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-making
through the unanimous consent of the parties sharing control.
The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
No single venture is in a position to control the operating activities unilaterally;
Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or
joint control over those policies.
15. Investment real estates
Measurement of cost method
An investment property is a property held either to earn rental income or for capital appreciation or both. After deducting the
estimated net salvage and accumulative impairment provision of the cost by the Group, the investment property is depreciated or
amortized using the straight-line method over its estimated useful life, unless the investment property is classified as held for sale.
The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
Category Useful life (years) Residual value rate (%) Annual depreciation rate (%)
Buildings 25-40 years 3%-10% 2.3%-3.9%
Land use rights 32-50 years 0% 2%-3.1%
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets.
82
An asset’s fair value less costs to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less
the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is
determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal,
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment
losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group
or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs
to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reversed in a subsequent period.
16. Fixed assets
(1) Conditions for recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental to
others or for operation and administrative purposes with useful lives over one year. The cost of a purchased fixed asset comprises the
purchase price, related taxes, and any directly attributable expenditure for bringing the asset to working condition for its intended use.
The cost of self-constructed assets is measured in accordance with the policy set out in Note V. 17. Where parts of an item of fixed
assets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciation
rates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of an
item of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group, and the
carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit or
loss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation methods
Category of fixed assets Method Useful life Expected net salvage value Annual deprecation
Workshops and buildings Average method of useful life 10-50 years 3%-10% 1.8%-9.7%
Machinery equipments Average method of useful life 2-20 years 0-10% 4.5%-50%
Other equipments Average method of useful life 2-10years 0-10% 9%-50%
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to the
lower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum lease
payment should be regarded as the entry value of the long-term account payable with the difference be recognized as the
unrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it is
reasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assets
shall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one of
the lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest rate method
within each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,
the Group will respectively list the difference from the long-term account payable related to the finance lease minuses the
unrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
83
17. Construction in progress
(1) Categories of construction in progress
The enterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructed
fixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and the
necessary expenses happened before the assets reach the expected available state.。
(2) Standards and time of transferring construction in progress into fixed asset
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listed
among the construction in progress and not withdraw the depreciation.
(3) Impairment test method and withdrawal method for impairment provision of construction in progress
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets.
An asset’s fair value less costs to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less
the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is
determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal,
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment
losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group
or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs
to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
18. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized as
part of the cost of the asset.
(2) Capitalization period of borrowing costs
The capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation
of capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowing
expenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach the
expected available state had began, the borrowing expenses had began capitalization.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of
the borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructed
84
and completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to different
situation.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use or
sale during the continuing construction of other parts, and if the acquisition and construction or production activities which are
necessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization of
the borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition of
use or sale.
(3) Period for suspending capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts
for more than 3 months, the capitalization of the borrowing costs shall be suspended.
(4) Calculation method of capitalized amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the
enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the
capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount of
interest actually incurred to the relevant borrowings in the current period.
When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of the
borrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount during
the initial recognition of the borrowings.
During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currency
specific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchange
differences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specific
borrowings, should be regarded as the financial expenses and included in the current gains and losses.
19. Intangible assets
(1) Pricing method, useful life and impairment test
(a) Pricing method of intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) and
impairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized on
the straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.
(b) Estimated useful life of intangible assets with limited useful life
As for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Group
amortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classified
as held for sale.
Item Estimated useful life Basis
Land use rights 40-50 years Period stipulated by the Land Use Right Certificate
85
Special technology 9-20 years Period agreed in the contract or estimated to bring economic benefits for the Company
Computer software 3-10 years Period agreed in the contract or estimated to bring economic benefits for the Company
Patent and others 5-10 years Period agreed in the contract or estimated to bring economic benefits for the Company
(c) Judgment basis of intangible assets with uncertain useful life
An intangible asset is regarded as having an indefinite useful life and is not amortized when there is no foreseeable limit to the period
over which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group doesn’t have any
intangible assets with indefinite useful lives.
(d) Withdrawal of impairment provision of intangible assets
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of
an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from
other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets.
An asset’s fair value less costs to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less
the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is
determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal,
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting policies of internal R & D expenses
(a) Criteria of dividing the research phase and development phase of internal R&D project
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and
understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new
or substantially improved materials, devices, or products before the start of commercial production or use.
(b) Calculation of the expenditures of internal R&D project
Expenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on the
development phase.
Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase are
capitalized if development costs can be measured reliably, the product or process is technically and commercially feasible, and the
Group intends to and has sufficient resources to complete development. Capitalized development costs are stated at cost less
impairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they are
incurred.
86
20. Impairment of long-term assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.
Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. The
Group will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise merger
by the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.
The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present
value of expected future cash flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or asset groups. Fair value refers to the price received from selling an asset
or paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Group
evaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on the
measurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use of
the assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequate
available data and supported by other information. The evaluation technology used mainly including the market method, equity
method and cost method.
An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows
from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of an asset
group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other
assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations and
how management makes decisions about continuing or disposing of the Group’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived
from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
21. Amortization method of long-term deferred expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)
Cost of operating lease assets improvement 3-10 years
Cost of construction and use of public facilities 10-15 years
Others 3-10 years
22. Payroll
(1) Accounting treatment of short-term compensation
87
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn worker
wages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and
birth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and
records which in the current gains and losses or the relevant asset costs.
(2) Accounting treatment of the welfare after demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or after
the labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-term
compensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The defined
contribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among the
social security system set up and managed by the government institutions according to the requirements of the relevant Chinese
regulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departments
according to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance and
the unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. The
enterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employees
voluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Company
recognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Group
not involved with any defined benefit plans.
(3) Accounting treatment of the demission welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice for
compensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from the
demission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or
the reduction advice:
The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when
the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then led
all parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting treatment of the welfare of other long-term staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfare
after demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits and
long-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
23. Estimated liabilities
(1) Criteria of estimated liabilities
A provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
(2) Measurement of estimated liabilities
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent when
caring out the relevant current obligations. As for those with significant influences on the time value of money, the estimated
liabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the
best estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money
related to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range
is the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,
88
the best estimated number should be handled respectively according to the following situations:
If the contingencies involve with a single item, should be recognized according to the most likely happened amount.
If the contingencies involve with various items, should be recognized according to the calculation of various possible results and
the relevant probabilities.
The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the book
value according to the current best estimated number.
24. Revenue
Revenue is the gross inflow of economic benefit arising in the course of the Group’s ordinary activities when the inflows result in
increase in shareholder’s equity, other than increase relating to contributions from shareholders. Revenue is recognized in profit or
loss when it is probable that the revenue and costs can be measured reliably and the economic benefits will flow to the Group, and
the following respective conditions are met.
(1) Selling commodities
Revenue from sale of goods is recognized when all of the general conditions stated above and following conditions are satisfied:
– The significant risks and rewards of ownership of goods have been transferred to the buyer;
– The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold.
Revenue from the sale of goods is measured at the fair value of the considerations received or receivable under the sales contract or
agreement.
The Group appointed different trading methods with buyers in the sales contract. The Company judges the main risks and time-point
of remuneration transfer according to trading methods and recognizes the income correspondingly.
(2) Providing labor services
The Group confirms amount of rendering services according to received or receivable contract or treaty.
In balance sheet date, if the outcome of labor services can be reliably estimated, revenue from rendering services shall be confirmed
by percentage-of-completion method, progress of rendering services shall be affirmed by measurement of finished works.
As for the outcome of labor services cannot be reliably estimated, if labor services expenses estimated can receive compensation,
revenue from rendering services shall be confirmed by labor services costs and carried down by the same amount; if labor services
expenses estimated cannot receive compensation, services costs shall be reckoned into current loss and gain and revenue from
providing labor services shall not be confirmed.
(3) Construction contract revenue
On balance sheet date, if the results of the construction contract could be reliable evaluated, the contract income and the contract
expenditure should be recognized according to the completion percentage method.
The Group recognized the progress of the contract completion according to the percentage of the accumulative actual happened
contract cost among the expected total contract cost.
If the result of the construction contract couldn’t be reliable evaluated, the Group should dispose according to the following situations
respectively:
If the contract cost could be returned, the contract income should be recognized according to the actual contract cost which could
be returned, and the contract cost should be recognized as contract expenditure during the period when happened;
If the contract cost could not be returned, should be recognized as contract expenditure at the time when happened, and not be
recognized as contract income.
(4) Interest revenue
89
Interest revenue is recognized according to the calculation of the time of lending monetary capital and the effective interest rate.
(5) Royalty revenue of the intangible assets
Royalty revenue of the intangible assets is recognized according to the charging time and methods agreed by the contracts or the
protocol.
25. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government grants gained by the Company and for purchasing and construction or for forming the long-term assets through
other methods are as the government grants related to the assets. Government subsidies related to assets should offset the book value
of related assets or be recognized as deferred income. Government subsidies related to assets that were recognized as deferred
income should be recorded into profits and losses by stages according to reasonable and systematic methods within useful lives.
Government subsidies measured by nominal amount should be recorded into profits and losses directly.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The other government grants except for the assets-related grants that gained by the Group are as the government grants related to the
revenues. Those government subsidies related to profits used for compensating the related future expenses or losses of the enterprise
shall be recognized as deferred income and shall included in the current profits and losses or offset related costs during the period
when the relevant cost expense or losses are recognized; or those subsidies used for compensating the related expenses or losses
incurred to the enterprise shall be directly included in the current profits and losses or offset related costs.
(3) Handling methods of government subsidies including both those related to assets and those related to profits
Government subsidies including both those related to assets and those related to profits should be conducted accounting treatment
separately from different parts; if it is hard to distinguish, it should be wholly classified as government subsidies related to profits.
26. Deferred income tax assets/deferred income tax liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can be
carried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets
shall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by
the deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of the
subsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income
tax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future;
and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.
(2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from the
initial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating to
the investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred
income tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can
control the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
90
27. Lease
(1) Accounting treatment of operating lease
(a) Operating lease charges
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.
(b) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment property (see Notes V. 16 (3), are depreciated in accordance
with the Group’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the
accounting policy. Income derived from operating leases is recognized in the income statement using the straight-line method over
the lease term. If initial direct costs incurred in respect of the assets leased out are material, the costs are initially capitalized and
subsequently amortized in profit or loss over the lease term on the same basis as the lease income. Otherwise, the costs are charged to
profit or loss immediately.
(2) Accounting treatments of financial lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values and
the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are
recorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognized
as unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to the
amounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting
policies described in Notes V. 16 (3) and Notes V. 20, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset is
depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and its
estimated useful life.
Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. The
amortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arising
from finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities due
within one year, respectively in the balance sheet.
28. Other significant accounting policies and estimates
(1) Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two or
more parties are subject to common control, joint control, or significant influence from another party, they are considered to be
related parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control only
from the State and that have no other related party relationships are not regarded as related parties of the Group. Related parties of the
Group and the Company include, but are not limited to:
(a) the Company’s parent
(b) the Company’s subsidiaries
(c) enterprises that are controlled by the Company’s parent
(d) investors that have joint control or over exercise significant influence over the Group
(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals and
the Group
(f) joint ventures of the Group, including subsidies of joint ventures
(g) associates of the Group, including subsidies of associates
(h) principal individual investors and close family members of such individuals
91
(i) key management personnel of the Group and close family members of such individuals
(j) key management personnel of the Company’s parent
(k) close family members of key management personnel of the Company’s parent; and
(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key management
personnel of the Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises and
individuals are considered as (but not restricted to) related parties based on the disclosure requirements of “Administrative
Procedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold 5% or more of the Company’s shares
(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the Company’s shares
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by an
individual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive.
(2) Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the Group’s internal
organization, management requirements and internal reporting system. An operating segment is recognized when all of the following
conditions have been satisfied:
– the component engages in business activities from which it may earn revenues and incur expenses;
– whose operating results are regularly reviewed by the Group’s management to make decisions about resource to be allocated to the
segment and assess its performance; and
– for which financial information regarding financial position, results of operations and cash flows is available.
Two or more operating segments may be aggregated into a single operating segment if the segments have similar economic
characteristics, and are similar in respect of the following conditions:
– The nature of products and services
– The nature of production processes
– The type or class of customers for the products and services
– The methods used to distribute the products or provide the services
– The nature of the regulatory environment
When the Group drafts the report of an operating segment, transaction income from operating segments is measured at the basis of
actual transaction price. Policies adopts in preparing the report of an operating segment shall in accordance with accounting policies
adopted in the preparation of financial statements of the Group.
29. Changes in main accounting policies and estimates
The Ministry of Finance issued The Accounting Standards for Enterprises No. 16 - Governmental Subsidies on May 2017, which
implemented from June 12, 2017. The Company revised financial statement according to it. Governmental subsidies related to
routine activities of enterprises were recorded into other incomes or offset related costs in line with the essence of economic business.
At the same time, item “other gains” is added above the item of “operating profits” in the income statement, and governmental
subsidies recorded into other gains was reflected in this item. This change didn’t have an influence on financial conditions, operating
results, and cash flow of the Company. Except the above-mentioned items, other changes of accounting policies due to the
implementation of new criteria didn’t have an impact on items and amounts of financial statement, and there was also no need of
92
retroactive adjustment.
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Output VAT is calculated on product sales and taxable services
revenue, based on tax laws. The remaining balance of output VAT,
VAT 6%，11%，13% ，17%
after subtracting the deductible input VAT of the period, is VAT
payable.
City maintenance and
Based on VAT payable and the VAT tax free for the Period 5%，7%
construction tax
Enterprise income tax Based on taxable revenue 15%-25%
Education surcharge and local
Based on VAT payable and the VAT tax free for the Period 3%，2%
education surcharge
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
BOE Technology Group Co., Ltd. 15%
Beijing BOE Optoelectronics Technology Co., Ltd. 15%
Chengdu BOE Optoelectronics Technology Co., Ltd. 15%
Hefei BOE Optoelectronics Technology Co., Ltd. 15%
Beijing BOE Display Technology Co., Ltd. 15%
Hefei Xinsheng Optoelectronics Technology Co., Ltd. 15%
Erdos Yuansheng Optoelectronics Co., Ltd. 15%
Chongqing BOE Optoelectronics Technology Co., Ltd. 15%
BOE (Hebei) Mobile Display Technology Co., Ltd. 15%
BOE Optical Science and Technology Co., Ltd. 15%
Beijing BOE Tea Valley Electronic Co., Ltd. 15%
Xiamen BOE Electronic Co., Ltd. 15%
Hefei BOE Display Light Source Co., Ltd. 15%
Chongqing BOE Display Lighting Co., Ltd. 15%
Beijing BOE Dedicated Display Technology Co., Ltd. 15%
Beijing BOE Vacuum Electronics Co., Ltd. 15%
Beijing BOE Vacuum Technology Co., Ltd. 15%
Beijing BOE Semi-conductor Co., Ltd. 15%
Hefei BOE Semi-conductor Co., Ltd. 15%
93
Beijing Asahi Electron Material Co., Ltd. 15%
Beijing BOE Energy Technology Co., Ltd. 15%
Beijing BOE Multimedia Technology Co., Ltd. 15%
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Item Closing balance Opening balance
Cash on hand 237,047.00 707,796.00
Bank deposits 42,521,903,389.00 49,170,616,669.00
Other monetary funds 8,238,260,291.00 8,981,492,758.00
Total 50,760,400,727.00 58,152,817,223.00
Of which: the total amount deposited in
2,415,297,182.00 858,689,619.00
overseas
Other notes
Of which: the total amount deposited in overseas was equivalent to RMB 2,415,297,182 Yuan (Y2016: RMB 858,689,619 Yuan). On
June 30, 2017, the Company took USD 118,064,983 among the other monetary capital (Y2016: USD 17,428,071) as the pledge for
acquiring the short-term borrowings, and took RMB 982,393,752 Yuan and USD11,000,000 (Y2016: RMB120,217,226 Yuan and
USD11,000,000) as the pledge for acquiring the long-term borrowings. The rest of the other monetary capital equivalent to RMB
7,137,801,555 Yuan (Y2016: RMB 8,480,584,080 Yuan) was the margin deposit for security deposited in the commercial bank.
2. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
Item Closing balance Opening balance
Bank acceptance bill 1,260,902,564.00 1,358,736,650.00
Commercial acceptance bill 2,400,000.00 11,100,000.00
Total 1,263,302,564.00 1,369,836,650.00
(2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
Item Amount
Bank acceptance bill 56,626,085.00
Commercial acceptance bill 0.00
94
Total 56,626,085.00
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
Unit: RMB Yuan
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bill 0.00 483,922,857.00
Commercial acceptance bill 0.00 0.00
Total 0.00 483,922,857.00
95
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Withdrawal Book value Withdrawal Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable
with significant single
amount for which bad 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
debt provision
separately accrued
Accounts receivable
withdrawn bad debt
provision according to 17,055,944,269.00 99.69% 205,354,502.00 1.20% 16,850,589,767.00 15,857,746,391.00 97.75% 0.00 0.00% 15,857,746,391.00
credit risks
characteristics
Accounts receivable
with insignificant single
amount for which bad 53,255,837.00 0.31% 40,310,865.00 75.69% 12,944,972.00 365,417,037.00 2.25% 31,371,811.00 8.59% 334,045,226.00
debt provision
separately accrued
Total 17,109,200,106.00 100.00% 245,665,367.00 1.44% 16,863,534,739.00 16,223,163,428.00 100.00% 31,371,811.00 0.19% 16,191,791,617.00
96
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
No such cases in the Reporting Period.
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
√ Applicable□Not applicable
Closing balance
Name of the group
Accounts receivable bad debt provision Withdrawal proportion
Credit risks portfolio 273,806,002.00 205,354,502.00 75.00%
Total 273,806,002.00 205,354,502.00 75.00%
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
Closing balance
Withdrawal method of the Basic for recognizing the Withdrawal
Name of the group Closing balance of the bad debt
bad debt provision by group group proportion
provision
Credit risks Owns the similar credit
Other method 16,782,138,267.00 0.00 0.00%
portfolio risks characteristics
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 215,284,889.00 Yuan; the amount of the
collected or reversed part during the Reporting Period was of RMB 575,305.00 Yuan.
(3) The actual write-off accounts receivable
Unit: RMB Yuan
Item Amount
Customer 1 416,028.00
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
The total amount of the accounts receivable of the top 5 of the Group at the year-end was of RMB 7,249,347,777.00 Yuan that
covered 42.37% of the total amount of the closing balance of the accounts receivable at the year-end, which no need to withdraw the
bad debt provision after the assessment.
97
4. Prepayment
(1) List by aging analysis
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 993,364,604.00 95.37% 706,523,558.00 99.72%
1 to 2 years 46,574,256.00 4.47% 1,191,189.00 0.17%
2 to 3 years 936,770.00 0.09% 418,929.00 0.06%
Over 3 years 756,820.00 0.07% 377,797.00 0.05%
Total 1,041,632,450.00 -- 708,511,473.00 --
There was no prepayment ages over 1 year with significant amount but failed settled in time of the Group.
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
The total amount of the prepayment of the top 5 of the Group at the year-end was of RMB 566,965,097.00 Yuan that covered 54.43%
of the total amount of the closing balance of the prepayment at the year-end.
5. Interest receivable
(1) Category of interest receivable
Unit: RMB Yuan
Item Closing balance Opening balance
Fixed time deposit 87,911,912.00 123,027,401.00
Bond investment 1,276,329.00 2,114,172.00
Total 89,188,241.00 125,141,573.00
There was no overdue interest of the Group in the Reporting Period.
6. Dividend receivable
(1) Dividend receivable
Unit: RMB Yuan
Item (or investees) Closing balance Opening balance
TPV Technology Co., Ltd 930,175.00 0.00
China Securities Co., Ltd. 2,036,374.00 0.00
Bank of Chongqing Co., Ltd. 7,283,900.00 0.00
Total 10,250,449.00 0.00
98
7. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Withdrawal Book value Withdrawal Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts receivable with significant
single amount for which bad debt provision 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
separately accrued
Other accounts receivable withdrawn bad debt
provision according to credit risks 955,540,522.00 99.93% 0.00 0.00% 955,540,522.00 903,069,416.00 99.93% 0.00 0.00% 903,069,416.00
characteristics
Other accounts receivable with insignificant
single amount for which bad debt provision 653,341.00 0.07% 653,341.00 100.00% 0.00 653,341.00 0.07% 653,341.00 100.00% 0.00
separately accrued
Total 956,193,863.00 100.00% 653,341.00 0.07% 955,540,522.00 903,722,757.00 100.00% 653,341.00 0.07% 903,069,416.00
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
99
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
Name of the group Closing balance
Other accounts receivable Bad debt provision Withdrawal proportion
Credit risks portfolio 955,540,522.00 0.00 0.00%
Total 955,540,522.00 0.00 0.00%
There were no withdrawn, collected and reversed other accounts receivable made bad debt provision in the Reporting Period. There
was no write-off other accounts receivable.
(2) Other accounts receivable classified by the nature of accounts
Unit: RMB Yuan
Nature Closing book balance Opening book balance
Cash deposit and cash pledge 298,986,380.00 289,801,526.00
Equity transfer fee of accounts receivable 200,000,000.00 200,000,000.00
VAT refunds 172,000,398.00 252,652,057.00
Other 285,207,085.00 161,269,174.00
Total 956,193,863.00 903,722,757.00
(3) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
Unit: RMB Yuan
Proportion of the
total closing balance Closing balance of
Name of units Nature Closing balance Aging
of the accounts bad debt provision
receivable
Equity transfer fee of
Customer 1 200,000,000.00 Over 3 years 20.91% 0.00
accounts receivable
Cash deposit and
Customer 2 155,857,000.00 Within 1 year 16.30% 0.00
cash pledge
Customer 3 VAT refunds 132,142,138.00 Within 1 year 13.82% 0.00
Cash deposit and 1 to 2 years, 2 to 3
Customer 4 47,500,000.00 4.97% 0.00
cash pledge years, over 3 years
Customer 5 VAT refunds 39,293,276.00 Within 1 year 4.11% 0.00
Total -- 574,792,414.00 -- 60.11% 0.00
100
8. Inventory
(1) Category of inventory
Unit: RMB Yuan
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 4,214,864,010.00 290,628,680.00 3,924,235,330.00 3,378,887,483.00 170,279,800.00 3,208,607,683.00
Goods in
984,571,354.00 126,136,041.00 858,435,313.00 1,110,541,775.00 154,157,198.00 956,384,577.00
process
Inventory
6,236,285,547.00 1,368,314,770.00 4,867,970,777.00 4,348,635,413.00 789,031,165.00 3,559,604,248.00
goods
Turnover
108,603,407.00 80,791.00 108,522,616.00 109,264,439.00 722,415.00 108,542,024.00
materials
Total 11,544,324,318.00 1,785,160,282.00 9,759,164,036.00 8,947,329,110.00 1,114,190,578.00 7,833,138,532.00
(2) Falling price reserves of inventory
Unit: RMB Yuan
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 170,279,800.00 176,817,674.00 0.00 56,468,794.00 0.00 290,628,680.00
Goods in process 154,157,198.00 134,288,520.00 0.00 162,309,677.00 0.00 126,136,041.00
Inventory goods 789,031,165.00 1,268,169,877.00 0.00 688,886,272.00 0.00 1,368,314,770.00
Turnover
722,415.00 116,078.00 0.00 757,702.00 0.00 80,791.00
materials
Total 1,114,190,578.00 1,579,392,149.00 0.00 908,422,445.00 0.00 1,785,160,282.00
9. Non-current assets due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term accounts receivable due within 1 year 28,941,602.00 66,321,715.00
Total 28,941,602.00 66,321,715.00
101
10. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
VAT retained 4,868,312,927.00 4,323,654,894.00
Input tax to be verified and deducted 1,033,290,595.00 1,264,145,639.00
Finance products 3,846,277,217.00 60,267,110.00
Other 25,723,811.00 43,132,583.00
Total 9,773,604,550.00 5,691,200,226.00
11. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale
14,253,190.00 0.00 14,253,190.00 12,348,030.00 0.00 12,348,030.00
liabilities instruments:
Available-for-sale equity
893,276,142.00 150,279,655.00 742,996,487.00 760,434,181.00 150,279,655.00 610,154,526.00
instruments:
Measured by fair
669,742,110.00 150,099,655.00 519,642,455.00 531,987,776.00 150,099,655.00 381,888,121.00
value
Measured by cost 223,534,032.00 180,000.00 223,354,032.00 228,446,405.00 180,000.00 228,266,405.00
Total 907,529,332.00 150,279,655.00 757,249,677.00 772,782,211.00 150,279,655.00 622,502,556.00
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB Yuan
Available-for-sale equity Available-for-sale
Category of the available-for-sale financial assets Total
instruments liabilities instruments
Cost of the equity instruments/amortized cost of the
561,423,245.00 12,647,553.00 574,070,798.00
liabilities instruments
Fair value 519,642,455.00 14,253,190.00 533,895,645.00
Changes amount of the fair value accumulatively recorded
108,318,865.00 -23,560.00 108,295,305.00
in other comprehensive income
Withdrawn impairment amount 150,099,655.00 0.00 150,099,655.00
102
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
Book balance Impairment provision Shareholding
proportion
Investee
Period-begin Increase Decrease Period-end Period-begin Increase Decrease Period-end among the
investees
Teralane Semiconductor Inc 11,868,000.00 0.00 0.00 11,868,000.00 0.00 0.00 0.00 0.00 7.29%
Zhejiang BOE Display
321,256.00 0.00 0.00 321,256.00 0.00 0.00 0.00 0.00 7.03%
Technology Co., Ltd.
Zhejiang Qiusheng
Optoelectronics Technology 248,776.00 0.00 0.00 248,776.00 0.00 0.00 0.00 0.00 5.09%
Co., Ltd.
Beijing Digital TV National
Engineering Laboratory Co., 6,250,000.00 0.00 0.00 6,250,000.00 0.00 0.00 0.00 0.00 12.50%
Ltd.
Meta Company 34,684,948.00 0.00 812,999.00 33,871,949.00 0.00 0.00 0.00 0.00 5.66%
Danhua Capital,L.P. 26,013,750.00 0.00 609,750.00 25,404,000.00 0.00 0.00 0.00 0.00 5.48%
Danhua CapitalII,L.P 13,874,000.00 0.00 325,200.00 13,548,800.00 0.00 0.00 0.00 0.00 3.29%
Kateeva,Inc. 82,862,466.00 0.00 1,942,258.00 80,920,208.00 0.00 0.00 0.00 0.00 3.51%
DIPICT INC. 13,874,000.00 0.00 325,200.00 13,548,800.00 0.00 0.00 0.00 0.00 19.83%
MOOV INC. 27,862,839.00 0.00 653,092.00 27,209,747.00 0.00 0.00 0.00 0.00 6.48%
ZGLUE,INC. 10,405,488.00 0.00 243,899.00 10,161,589.00 0.00 0.00 0.00 0.00 6.00%
Other 180,882.00 25.00 0.00 180,907.00 180,000.00 0.00 0.00 180,000.00 -
Total 228,446,405.00 25.00 4,912,398.00 223,534,032.00 180,000.00 0.00 0.00 180,000.00 --
103
(4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period
Unit: RMB Yuan
Available-for-sale equity Available-for-sale
Category of the available-for-sale financial assets Total
instruments liabilities instruments
Withdrawn impairment balance at the
150,279,655.00 0.00 150,279,655.00
period-begin
Withdrawn amount of the period 0.00 0.00 0.00
Of which: transferred from other comprehensive
0.00 0.00 0.00
income
Decreased in the period 0.00 0.00 0.00
Of which: recovered and reversed amount of the
0.00 0.00 0.00
fair value after the period
Withdrawn impairment balance at the period-end 150,279,655.00 0.00 150,279,655.00
12. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB Yuan
Item Closing balance Opening balance
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Convertible
bonds for HYDIS 17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
Technology
Total 17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
104
13. Long-term equity investment
Unit: RMB Yuan
Increase/decrease
Closing
Gains and losses Adjustment of Cash bonus or
Withdrawal of balance of
Investees Opening balance Additional Reduced recognized under other Changes of profits Closing balance
impairment Other impairment
investment investment the equity comprehensive other equity announced to
provision provision
method income issue
I. Joint ventures
Naught
II. Associated enterprises
Beijing Nissin
Electronics
Precision 359,892.00 0.00 0.00 -359,892.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Component
Co., Ltd.
Beijing Nittan
Electronics 40,628,603.00 0.00 0.00 1,683,861.00 0.00 0.00 0.00 0.00 0.00 42,312,464.00 0.00
Co., Ltd.
Beijing
Yingfei Hailin
Venture
456,681.00 0.00 0.00 -232,315.00 0.00 0.00 0.00 0.00 0.00 224,366.00 0.00
Capital
Management
Co., Ltd.
Ordos BOE
907,463,270.00 0.00 0.00 -4,959.00 0.00 0.00 0.00 0.00 0.00 907,458,311.00 537,136,972.00
Energy
105
Investment
Co., Ltd.
(BOE Energy
Investment)
Beijing Fly
Hailin
156,981,032.00 0.00 0.00 -413,210.00 0.00 0.00 0.00 0.00 0.00 156,567,822.00 0.00
Investment
Center
TPV Display
Technology
26,622,344.00 0.00 0.00 -2,292,247.00 0.00 0.00 0.00 0.00 0.00 24,330,097.00 0.00
(China) Co.,
Ltd.
Beijing
Xindong
Neng
679,323,799.00 300,000,000.00 0.00 -8,238,903.00 0.00 0.00 0.00 0.00 0.00 971,084,896.00 0.00
Investment
Fund (limited
partnership)
Beijing
Xindong
Neng
2,906,218.00 0.00 0.00 905,446.00 0.00 0.00 0.00 0.00 0.00 3,811,664.00 0.00
Investment
Management
Co., Ltd.
Shenzhen
Yunyinggu
50,345,936.00 0.00 0.00 -4,271,755.00 0.00 0.00 0.00 0.00 0.00 46,074,181.00 0.00
Technology
Co., Ltd.
106
Beijing
Xiaolong
24,448,577.00 0.00 0.00 -466,580.00 0.00 0.00 0.00 0.00 0.00 23,981,997.00 0.00
Technology
Co., Ltd.
New On
Technology 3,712,015.00 0.00 0.00 0.00 0.00 -110,387.00 0.00 0.00 0.00 3,601,628.00 0.00
Co., Ltd.
Cnoga
0.00 344,965,000.00 0.00 0.00 0.00 -6,245,000.00 0.00 0.00 0.00 338,720,000.00 0.00
Medical Ltd.
Subtotal 1,893,248,367.00 644,965,000.00 0.00 -13,690,554.00 0.00 -6,355,387.00 0.00 0.00 0.00 2,518,167,426.00 537,136,972.00
Total 1,893,248,367.00 644,965,000.00 0.00 -13,690,554.00 0.00 -6,355,387.00 0.00 0.00 0.00 2,518,167,426.00 537,136,972.00
107
14. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □ Not applicable
Unit: RMB Yuan
construction in
Item Houses and buildings Land use right Total
progress
I. Original book value
1. Opening balance 858,774,469.00 659,779,217.00 0.00 1,518,553,686.00
2. Increased amount of the period 92,517,320.00 0.00 0.00 92,517,320.00
(1) Outsourcing 0.00 0.00 0.00 0.00
(2) Transfer of inventory\fixed
92,517,320.00 0.00 0.00 92,517,320.00
assets\project under construction
(3) Increased from enterprise merger 0.00 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Closing balance 951,291,789.00 659,779,217.00 0.00 1,611,071,006.00
II. Accumulative depreciation and
accumulative amortization
1.Opening balance 226,768,752.00 98,852,038.00 0.00 325,620,790.00
2. Increased amount of the period 6,697,291.00 6,988,210.00 0.00 13,685,501.00
(1) Withdrawal or amortization 6,697,291.00 6,988,210.00 0.00 13,685,501.00
3. Decreased amount of the period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Closing balance 233,466,043.00 105,840,248.00 0.00 339,306,291.00
III. Depreciation reserves
1.Opening balance 0.00 0.00 0.00 0.00
2. Increased amount of the period 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
108
4. Closing balance 0.00 0.00 0.00 0.00
IV. Book value
1. Closing book value 717,825,746.00 553,938,969.00 0.00 1,271,764,715.00
2. Opening book value 632,005,717.00 560,927,179.00 0.00 1,192,932,896.00
15. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
Workshops and
Item Equipments Other Total
buildings
I. Original book value
1. Opening balance 22,485,925,560.00 86,402,866,264.00 1,399,699,850.00 110,288,491,674.00
2. Increased amount of the Period 4,260,330,890.00 10,046,644,783.00 164,943,138.00 14,471,918,811.00
(1) Purchase 7,062,804.00 387,715,982.00 48,078,585.00 442,857,371.00
(2) Transfer of project under
4,254,099,685.00 9,294,442,868.00 117,290,308.00 13,665,832,861.00
construction
(3)Enterprise combination increase 0.00 368,035,195.00 146,825.00 368,182,020.00
(4) difference of foreign currency
-831,599.00 -3,549,262.00 -572,580.00 -4,953,441.00
conversion
3. Decreased amount of the Period 699,698.00 170,543,747.00 42,705,117.00 213,948,562.00
(1) Disposal or Scrap 699,698.00 170,543,747.00 42,705,117.00 213,948,562.00
4. Closing balance 26,745,556,752.00 96,278,967,300.00 1,521,937,871.00 124,546,461,923.00
II. Accumulative depreciation
1. Opening balance 2,794,512,892.00 36,336,492,967.00 544,281,552.00 39,675,287,411.00
2. Increased amount of the Period 353,931,897.00 4,920,970,998.00 169,193,877.00 5,444,096,772.00
(1) Withdrawal 354,392,573.00 4,926,272,191.00 169,962,462.00 5,450,627,226.00
(2) difference of foreign currency
-460,676.00 -5,301,193.00 -768,585.00 -6,530,454.00
conversion
3. Decreased amount of the Period 2,073,585.00 91,456,617.00 35,033,083.00 128,563,285.00
(1) Disposal or Scrap 2,073,585.00 91,456,617.00 35,033,083.00 128,563,285.00
4. Closing balance 3,146,371,204.00 41,166,007,348.00 678,442,346.00 44,990,820,898.00
III. Depreciation reserves
1. Opening balance 1,100,015.00 663,773,942.00 743,339.00 665,617,296.00
2. Increased amount of the Period 0.00 0.00 0.00 0.00
109
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of the Period 0.00 8,753,425.00 52,840.00 8,806,265.00
(1) Disposal or Scrap 0.00 8,753,425.00 52,840.00 8,806,265.00
4. Closing balance 1,100,015.00 655,020,517.00 690,499.00 656,811,031.00
IV. Book value
1. Closing book value 23,598,085,533.00 54,457,939,435.00 842,805,026.00 78,898,829,994.00
2. Opening book value 19,690,312,653.00 49,402,599,355.00 854,674,959.00 69,947,586,967.00
(2) Fixed assets leased in from financing lease
Unit: RMB Yuan
Accumulative
Item Original book value Impairment provision Book value
depreciation
Workshops and buildings 11,291,665.00 3,976,472.00 0.00 7,315,193.00
16. Construction in Progress
(1) List of Construction in Progress
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
The 8.5th Generation
TFT-LCD Project of Hefei
3,729,515,818.00 0.00 3,729,515,818.00 3,775,171,446.00 0.00 3,775,171,446.00
Xinsheng and the touch
screen project
AM-OLED Project of
Yuansheng 7,046,838,909.00 0.00 7,046,838,909.00 6,977,796,088.00 0.00 6,977,796,088.00
Optoelectronics
The 8.5th Generation
New Type Semiconductor
6,629,936,627.00 0.00 6,629,936,627.00 8,408,445,327.00 0.00 8,408,445,327.00
Display Device Project of
Fuzhou
The 6th Generation
LTPS/AMOLED
12,831,739,192.00 0.00 12,831,739,192.00 6,623,826,176.00 0.00 6,623,826,176.00
Production Line Project of
Chengdu
The 10.5th Generation
10,050,744,422.00 0.00 10,050,744,422.00 3,720,534,213.00 0.00 3,720,534,213.00
TFT-LCD Project of Hefei
110
BOE Display
Others 3,839,605,704.00 1,311,456.00 3,838,294,248.00 3,503,786,926.00 1,311,456.00 3,502,475,470.00
Total 44,128,380,672.00 1,311,456.00 44,127,069,216.00 33,009,560,176.00 1,311,456.00 33,008,248,720.00
111
(2) Changes of Significant Construction in Progress
Unit: RMB Yuan
Proportion Of which: the Capitalizati
Amount that Other Accumulative Capit
estimated of amount of the on rate of
transferred to decreased Project amount of al
Name o f item Estimated number Opening balance Increased amount Closing balance the project capitalized the
fixed assets of the amount of progress capitalized resour
accumulative interests of the interests of
period the period interests ces
input period the period
The 8.5th Generation
TFT-LCD Project of Hefei Self-r
30,987,000,000.00 3,775,171,446.00 153,716,996.00 199,372,624.00 0.00 3,729,515,818.00 81.46% 81.46% 0.00 -3,831,721.00 0.00%
Xinsheng and the touch aised
screen project
AM-OLED Project of
Self-r
Yuansheng 20,020,000,000.00 6,977,796,088.00 69,042,821.00 0.00 0.00 7,046,838,909.00 84.54% 84.54% 130,261,795.00 68,681,250.00 4.68%
aised
Optoelectronics
The 8.5th Generation
New Type Semiconductor Self-r
26,985,000,000.00 8,408,445,327.00 10,504,234,966.00 12,282,743,666.00 0.00 6,629,936,627.00 71.47% 71.47% 97,867,361.00 109,229,940.00 4.44%
Display Device Project of aised
Fuzhou
The 6th Generation
LTPS/AMOLED Self-r
44,800,000,000.00 6,623,826,176.00 6,311,890,258.00 103,977,242.00 0.00 12,831,739,192.00 28.89% 28.89% 51,056,632.00 51,056,632.00 5.07%
Production Line Project of aised
Chengdu
The 10.5th Generation
Self-r
TFT-LCD Project of Hefei 42,937,000,000.00 3,720,534,213.00 6,334,494,221.00 4,160,937.00 123,075.00 10,050,744,422.00 23.42% 23.42% 39,767,850.00 36,407,217.00 3.87%
aised
BOE Display
112
Self-r
Others 4,000,000,000.00 3,503,786,926.00 1,525,662,136.00 1,184,597,230.00 5,246,127.00 3,839,605,704.00 0.00% 0.00% 0.00 0.00 0.00%
aised
Total 169,729,000,000.00 33,009,560,176.00 24,899,041,398.00 13,774,851,699.00 5,369,202.00 44,128,380,672.00 -- -- 318,953,638.00 261,543,318.00 0.00% --
17. Intangible Assets
(1) List of Intangible Assets
Unit: RMB Yuan
Patent right and proprietary
Item Land use right Computer software Others Total
technology
I. Original book value
1. Opening balance 1,766,107,603.00 1,770,732,948.00 695,490,721.00 324,964,999.00 4,557,296,271.00
2. Increased amount of the Period 587,724.00 22,226,274.00 32,581,277.00 0.00 55,395,275.00
(1) Purchase 172,500.00 0.00 28,655,177.00 0.00 28,827,677.00
(2) Internal R&D 0.00 0.00 0.00 0.00 0.00
(3) Enterprise combination increase 0.00 0.00 0.00 0.00 0.00
(4) Transfer of construction in progress 415,224.00 22,226,274.00 3,926,100.00 0.00 26,567,598.00
3. Decreased amount of the Period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
4. Closing balance 1,766,695,327.00 1,792,959,222.00 728,071,998.00 324,964,999.00 4,612,691,546.00
II. Accumulated amortization
1. Opening balance 138,014,289.00 864,354,618.00 373,253,291.00 44,329,233.00 1,419,951,431.00
2. Increased amount of the Period 17,756,064.00 83,489,092.00 35,064,966.00 9,833,385.00 146,143,507.00
(1) Withdrawal 17,756,064.00 83,489,092.00 35,064,966.00 9,833,385.00 146,143,507.00
113
3. Decreased amount of the Period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
4. Closing balance 155,770,353.00 947,843,710.00 408,318,257.00 54,162,618.00 1,566,094,938.00
III. Depreciation reserves
1. Opening balance 0.00 0.00 471,453.00 0.00 471,453.00
2. Increased amount of the Period 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the Period 0.00 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00 0.00
4. Closing balance 0.00 0.00 471,453.00 0.00 471,453.00
IV. Book value
1. Closing book value 1,610,924,974.00 845,115,512.00 319,282,288.00 270,802,381.00 3,046,125,155.00
2. Opening book value 1,628,093,314.00 906,378,330.00 321,765,977.00 280,635,766.00 3,136,873,387.00
The proportion of the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets at the period-end was 0.00%.
114
18. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB Yuan
Name of the invested units or events
Opening balance Closing balance
generating goodwill
Beijing Yinghe Century Co., Ltd. 42,940,434.00 42,940,434.00
Gaochuang (Suzhou) Electronics Co., Ltd. 8,562,464.00 8,562,464.00
Beijing BOE Optoelectronics Technology
4,423,876.00 4,423,876.00
Co., Ltd.
BOE Healthcare Co., Ltd. 146,460,790.00 146,460,790.00
Total 202,387,564.00 202,387,564.00
(2) Impairment Provision of Goodwill
Unit: RMB Yuan
Name of the invested units or events
Opening balance Closing balance
generating goodwill
Beijing BOE Optoelectronics Technology
4,423,876.00 4,423,876.00
Co., Ltd.
Total 4,423,876.00 4,423,876.00
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses:
See V.20.
19. Long-term Unamortized Expenses
Unit: RMB Yuan
Opening Amortization
Item Increased amount Decrease Closing balance
balance amount
Cost of operating lease
8,554,720.00 1,920,600.00 1,022,576.00 0.00 9,452,744.00
assets improvement
Cost of construction and
128,813,237.00 0.00 7,685,112.00 0.00 121,128,125.00
use of public facilities
Others 207,523,270.00 11,248,964.00 35,280,125.00 0.00 183,492,109.00
Total 344,891,227.00 13,169,564.00 43,987,813.00 0.00 314,072,978.00
115
20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
162,969,986.00 38,243,618.00 150,713,954.00 36,340,807.00
provision
Unrealized internal sales
0.00 0.00 0.00 0.00
gain and loss
Deductible losses 60,812,430.00 15,203,107.00 61,989,130.00 15,497,284.00
Differences of
depreciation and 68,006,912.00 10,201,038.00 19,830,095.00 2,974,516.00
amortization
Evaluation increment of
subsidiary with
150,441,603.00 37,610,401.00 153,218,516.00 38,304,629.00
immovable property
investment
Advance from customers 123,484,850.00 18,522,728.00 349,621,212.00 52,443,182.00
Others 249,147,290.00 40,868,140.00 65,184,744.00 13,273,757.00
Total 814,863,071.00 160,649,032.00 800,557,651.00 158,834,175.00
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation
increment of business
1,123,026,559.00 277,450,548.00 1,129,240,231.00 282,310,058.00
combination not under
the same control
Change in fair value of
available-for-sale 28,168,564.00 4,647,813.00 27,983,239.00 4,617,234.00
financial assets
Depreciation of fixed
864,023,931.00 132,092,410.00 699,513,159.00 107,479,271.00
assets
116
Changes in fair value of
3,205,112.00 555,778.00 356,147.00 89,037.00
financial products
Long-term equity
360,863,027.00 54,129,454.00 360,863,027.00 54,129,454.00
investment
Bond interest 71,376,827.00 10,706,524.00 71,221,140.00 10,683,171.00
Others 0.00 0.00 10,749,594.00 1,612,439.00
Total 2,450,664,020.00 479,582,527.00 2,299,926,537.00 460,920,664.00
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB Yuan
Mutual set-off amount of Amount of deferred Amount of deferred
Mutual set-off amount of
deferred income tax income tax assets or income tax assets or
Item deferred income tax
assets and liabilities at liabilities after off-set at liabilities after off-set at
assets and liabilities
the period-end the period-end the period-begin
Deferred income tax
10,706,524.00 149,942,508.00 12,295,610.00 146,538,565.00
assets
Deferred income tax
10,706,524.00 468,876,003.00 12,295,610.00 448,625,054.00
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible temporary difference 5,176,885,370.00 4,878,250,340.00
Deductible losses 2,345,727,319.00 1,797,146,855.00
Total 7,522,612,689.00 6,675,397,195.00
（5）Deductible losses of unrecognized deferred income tax assets will due the following years
Years Closing amount Opening amount Notes
Y 2017 0.00 284,484,489.00 Naught
Y 2018 122,337,278.00 158,349,778.00 Naught
Y 2019 182,914,138.00 278,873,005.00 Naught
Y 2020 627,363,358.00 826,746,986.00 Naught
Y 2021 362,718,074.00 248,692,597.00 Naught
Y 2022 1,050,394,471.00 0.00 Naught
Total 2,345,727,319.00 1,797,146,855.00 --
117
21. Other Non-current Assets
Unit: RMB Yuan
Item Closing balance Opening balance
Prepayment for construction 1,192,928,184.00 1,056,333,969.00
Prepayment for procurement of fixed
2,592,932,464.00 2,447,632,012.00
assets
Excess VAT paid 204,866,545.00 199,580,943.00
The VAT collection of imported equipment 0.00 354,553,214.00
Others 192,148,646.00 81,433,078.00
Total 4,182,875,839.00 4,139,533,216.00
22. Short-term Loans
(1) Category of Short-term Loans
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan 479,707,040.00 510,407,952.00
Guaranteed loan 4,064,640,000.00 2,913,540,000.00
Credit loan 1,544,485,954.00 1,493,017,555.00
Total 6,088,832,994.00 4,916,965,507.00
There was no overdue loan for the Company at the period-end.
23. Notes Payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance 418,356,746.00 524,560,235.00
Bank acceptance bill 108,284,321.00 115,702,226.00
Total 526,641,067.00 640,262,461.00
There was no overdue notes payable for the Company at the period-end.
118
24. Accounts Payable
(1) List of Accounts Payable
Unit: RMB Yuan
Item Closing balance Opening balance
Account payable of related party 11,081,219.00 5,937,474.00
Account payable of third party 15,204,530,021.00 13,829,678,191.00
Total 15,215,611,240.00 13,835,615,665.00
There was no significant accounts payable aging over one year for the Company at the period-end.
25. Advance from Customers
(1) List of Advance from Customers
Unit: RMB Yuan
Item Closing balance Opening balance
Advance from customers of related party 52,761.00 0.00
Advance from customers of third party 856,993,559.00 548,942,714.00
Total 857,046,320.00 548,942,714.00
There was no significant advance from customers aging over one year for the Company at the period-end.
26. Payroll Payable
(1) List of Payroll Payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 1,497,068,752.00 4,276,871,774.00 4,434,396,455.00 1,339,544,071.00
II. Post-employment 321,134,994.00 319,905,448.00 31,976,100.00
benefit-defined 30,746,554.00
contribution plans
III. Termination benefits 15,036,960.00 567,843.00 627,917.00 14,976,886.00
IV. Other benefits due
0.00 0.00 0.00 0.00
within one year
Total 1,542,852,266.00 4,598,574,611.00 4,754,929,820.00 1,386,497,057.00
119
(2) List of Short-term Salary
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, 3,532,391,747.00 3,655,613,870.00
1,178,080,434.00 1,054,858,311.00
allowance, subsidy
2. Employee welfare 0.00 319,919,833.00 319,919,833.00 0.00
3. Social insurance 66,779,153.00 131,721,222.00 164,838,033.00 33,662,342.00
Of which: 1. Medical 107,058,055.00 139,732,108.00
63,337,669.00 30,663,616.00
insurance premiums
Work-related injury
1,631,421.00 12,984,099.00 12,887,917.00 1,727,603.00
insurance
Maternity insurance 1,810,063.00 11,679,068.00 12,218,008.00 1,271,123.00
4. Housing fund 20,607,756.00 159,560,632.00 179,981,104.00 187,284.00
5. Labor union budget
and employee education 214,936,641.00 84,520,381.00 69,594,680.00 229,862,342.00
budget
6. Employee bonus and
7,282,591.00 0.00 0.00 7,282,591.00
welfare fund
7. Other 9,382,177.00 48,757,959.00 44,448,935.00 13,691,201.00
Total 1,497,068,752.00 4,276,871,774.00 4,434,396,455.00 1,339,544,071.00
(3) List of Drawing Scheme
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 24,629,016.00 303,159,679.00 298,501,512.00 29,287,183.00
2.Unemployment 12,958,963.00 13,265,462.00 912,663.00
1,219,162.00
insurance
3. Annuity 4,898,376.00 5,016,352.00 8,138,474.00 1,776,254.00
Total 30,746,554.00 321,134,994.00 319,905,448.00 31,976,100.00
120
27. Taxes Payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT 10,652,813.00 6,826,361.00
Corporate income tax 453,659,547.00 342,021,556.00
Personal income tax 24,658,365.00 28,431,907.00
Urban maintenance and construction tax 90,292,723.00 114,056,922.00
Education surcharge and local education
65,204,040.00 81,471,180.00
surcharge
Others 53,834,820.00 83,543,968.00
Total 698,302,308.00 656,351,894.00
28. Interest Payable
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loan interest of installment
payment of interest and repay the due 422,492,569.00 421,434,181.00
capital
Enterprise bond interest 88,027,397.00 246,821,918.00
Interest paid for short-term loans 41,026,202.00 8,102,649.00
Total 551,546,168.00 676,358,748.00
There was no overdue interest for the Company at the period-end.
29. Dividends Payable
Unit: RMB Yuan
Item Closing balance Opening balance
Common stock dividends 1,063,292,009.00 9,651,170.00
Total 1,063,292,009.00 9,651,170.00
There was no significant dividends payable unpaid for over one year for the Company at the period-end.
30. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of the Account
Unit: RMB Yuan
Item Closing balance Opening balance
121
Engineering and equipment 12,664,356,238.00 11,986,641,278.00
The VAT collection of imported equipment 722,274,338.00 1,019,532,634.00
Margin 374,435,224.00 295,916,263.00
Pre-withdrawal water and electricity &
453,599,092.00 363,061,275.00
logistics freight
External agency fee 18,747,749.00 39,629,069.00
Others 770,022,529.00 690,744,729.00
Total 15,003,435,170.00 14,395,525,248.00
There was no significant other accounts payable aging over one year for the Company at the end of period-end.
31. Non-current Liabilities Due within 1 Year
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loans due within 1 year 8,020,891,786.00 3,576,759,308.00
Bonds payable due within 1 year 0.00 0.00
Long-term accounts payable due within 1
1,728,296,707.00 107,477,627.00
year
Total 9,749,188,493.00 3,684,236,935.00
32. Other Current Liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Quality assurance deposit 919,819,167.00 527,878,792.00
Others 16,356,143.00 5,104,682.00
Total 936,175,310.00 532,983,474.00
33. Long-term Loan
(1) Category of Long-term Loan
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan 12,420,000.00 14,865,000.00
Mortgage loan 30,625,566,783.00 30,071,780,327.00
Credit loan 22,824,416,148.00 19,798,520,884.00
Total 53,462,402,931.00 49,885,166,211.00
122
34. Bonds Payable
(1) Bonds Payable
Unit: RMB Yuan
Item Closing balance Opening balance
In 2016, BOE Technology Group Co., Ltd. public
9,961,519,616.00 9,956,719,508.00
issued Corporate bond to the qualify investors (Phase I)
Total 9,961,519,616.00 9,956,719,508.00
(2) Increase/Decrease of Bonds Payable (Excluding the Other Financial Instruments Classified as the
Preference Shares, Perpetual Capital Securities of the Financial Liabilities)
Unit: RMB Yuan
5 years
In 2016,
(Attached
BOE
end of 3
Technolo
years, the
gy Group
issuer
Co., Ltd.
increase
public
coupon 10,000,00 9,956,719 4,800,108 9,961,519
issued 100.00 3/21/2016 0.00 0.00 0.00
rate 0,000.00 ,508.00 .00 ,616.00
Corporate
option
bond to
and
the
investors
qualify
selling
investors
back
(Phase I)
options
10,000,00 9,956,719 4,800,109 9,961,519
Total -- -- -- 0.00 0.00 0.00
0,000.00 ,508.00 .00 ,616.00
35. Long-term Payable
(1) Long-term Payable
Unit: RMB Yuan
Item Closing balance Opening balance
Financing lease 2,191,493,751.00 1,261,446,565.00
36. Accrued Liabilities
Unit: RMB Yuan
123
Item Closing balance Opening balance Reasons
External guaranty 0.00 0.00 Naught
Pending litigation 0.00 0.00 Naught
Product quality
0.00 0.00 Naught
assurance
Restructuring
0.00 0.00 Naught
obligations
In 2009, the Group ceased producing several products and stopped
Loss contract to fulfilling the purchase contract related to production. Due to the
16,457,010.00 16,457,010.00
be executed indemnity incurred accordingly, the Group withdrew the relevant
estimated liabilities according to reasonable estimation of losses.
Others 0.00 0.00 Naught
Total 16,457,010.00 16,457,010.00 --
37. Deferred Revenue
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Reason
Government Government
2,494,122,929.00 164,040,012.00 225,889,448.00 2,432,273,493.00
subsidies subsidies
Total 2,494,122,929.00 164,040,012.00 225,889,448.00 2,432,273,493.00 --
Item involving government subsidies:
Unit: RMB Yuan
Amount
recorded into Amount recorded Related to
Amount of
Item Opening balance non-operating into other income Closing balance assets/relate
newly subsidy
income in in Report Period d income
Report Period
The 8.5th Generation of Related to
628,751,552.00 0.00 0.00 85,857,717.00 542,893,835.00
TFT-LCD Project assets
The 6th Generation of Related to
82,825,596.00 0.00 0.00 34,697,051.00 48,128,545.00
TFT-LCD Project assets
The 10.5th Generation of Related to
369,744,100.00 0.00 0.00 0.00 369,744,100.00
TFT-LCD Project assets
Government subsidy for
Related to
other scientific research 1,258,696,780.00 5,126,170.00 0.00 104,298,138.00 1,159,524,812.00
assets
projects
Government subsidy for Related to
154,104,901.00 158,913,842.00 0.00 1,036,542.00 311,982,201.00
other scientific research income
124
projects
Total 2,494,122,929.00 164,040,012.00 0.00 225,889,448.00 2,432,273,493.00 --
38. Other Non-current Liabilities
Unit: RMB Yuan
Item Closing balance Opening balance
Convertible creditor's right 3,944,502,816.00 3,823,719,309.00
Equity investment with redemption items 3,358,800,000.00 3,336,400,000.00
The VAT collection of imported equipment 0.00 354,553,214.00
Others 89,478,981.00 102,000,000.00
Total 7,392,781,797.00 7,616,672,523.00
39. Share Capital
Increase/decrease (+/-)
Capitalized
Item Opening balance New shares Closing balance
Bonus shares Capital Others Subtotal
issued
reserves
The sum of
35,153,067,743.00 0.00 0.00 0.00 0.00 0.00 35,153,067,743.00
shares
40. Capital Surplus
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 38,115,575,868.00 0.00 0.00 38,115,575,868.00
Other capital reserves 915,781,661.00 201,412,100.00 3,534,195.00 1,113,659,566.00
Total 39,031,357,529.00 201,412,100.00 3,534,195.00 39,229,235,434.00
41. Treasury Stock
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Repurchase of stock by
314,350,824.00 351,962,143.00 0.00 666,312,967.00
shareholders
Total 314,350,824.00 351,962,143.00 0.00 666,312,967.00
125
42. Other Comprehensive Income
Unit: RMB Yuan
Reporting period
Less: recorded in other
Amount before comprehensive income in Attributable to Attributable to
Item Opening balance Less: Income Closing balance
income tax in current prior period and owners of the minority shareholders
tax expense
period transferred to profit or loss Company after tax after tax
in current period
I. Other comprehensive income cannot
be reclassified into profits and losses in 0.00 0.00 0.00 0.00 0.00 0.00 0.00
future
Of which: changes in net assets and
liabilities of recalculated defined benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00
plans
Share of other comprehensive income of
investees measured by the equity
0.00 0.00 0.00 0.00 0.00 0.00 0.00
method not reclassifiable to profit or
loss
II. Other comprehensive reclassified
75,718,703.00 -6,286,675.00 7,172,603.00 542,688.00 9,368,196.00 -23,370,162.00 85,086,899.00
into profits or losses
Of which: other comprehensive income
as per equity method recognized into 68,563,516.00 0.00 0.00 0.00 0.00 0.00 68,563,516.00
profit and loss in future
Profits or losses of change in fair value
107,485,863.00 5,222,341.00 7,172,603.00 542,688.00 -2,155,092.00 -337,858.00 105,330,771.00
of available-for-sale financial assets
Of which: other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
126
as per equity method recognized into
profit and loss in future
Effective hedging gains and losses on
0.00 0.00 0.00 0.00 0.00 0.00 0.00
cash flows
Converted difference of the foreign
-100,330,676.00 -11,509,016.00 0.00 0.00 11,523,288.00 -23,032,304.00 -88,807,388.00
currency financial statement
Total 75,718,703.00 -6,286,675.00 7,172,603.00 542,688.00 9,368,196.00 -23,370,162.00 85,086,899.00
43. Surplus Reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserves 453,468,546.00 0.00 0.00 453,468,546.00
Discretionary surplus reserves 289,671,309.00 0.00 0.00 289,671,309.00
Reserve fund 0.00 0.00 0.00 0.00
Enterprise expansion fund 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00
Total 743,139,855.00 0.00 0.00 743,139,855.00
127
44. Retained Earnings
Unit: RMB Yuan
Item Reporting Period Same period of last year
Opening balance of retained profits before
4,011,055,487.00 2,630,912,286.00
adjustments
Total opening balance of retained profits before
0.00 0.00
adjustments (Increase+，decrease-)
Opening balance of retained profits after
4,011,055,487.00 2,630,912,286.00
adjustments
Add: Net profit attributable to owners of the
4,302,605,600.00 -516,472,418.00
Company
Less: Withdrawal of statutory surplus reserves 0.00 0.00
Withdrawal of discretional surplus reserves 0.00 0.00
Withdrawal of generic risk reserve 0.00 0.00
Dividend of common stock payable 1,046,578,276.00 351,530,677.00
Dividend of common stock transfer into share
0.00 0.00
capital
Closing retained profits 7,267,082,811.00 1,762,909,191.00
45. Revenues and Operating Costs
Unit: RMB Yuan
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 43,423,735,624.00 31,382,589,960.00 24,881,976,506.00 22,771,274,960.00
Other operations 1,181,292,371.00 852,676,629.00 1,566,334,211.00 1,215,816,198.00
Total 44,605,027,995.00 32,235,266,589.00 26,448,310,717.00 23,987,091,158.00
46. Business Tax and Surcharges
Unit: RMB Yuan
Item Reporting Period Same period of last year
Urban maintenance and construction tax 101,059,387.00 45,553,431.00
Education Surcharge 73,037,501.00 33,002,047.00
Property tax 110,136,739.00 0.00
Land use tax 20,626,843.00 0.00
128
Vehicles and vessels use tax 68,666.00 0.00
Stamp duty 38,902,335.00 0.00
Others 11,869,521.00 14,374,703.00
Total 355,700,992.00 92,930,181.00
47. Sale Expenses
Unit: RMB Yuan
Item Reporting Period Same period of last year
Labor cost 224,486,520.00 143,741,326.00
Logistic transport fees 173,832,751.00 126,171,928.00
Product quality assurance 591,844,446.00 216,781,885.00
Others 238,397,146.00 209,521,315.00
Total 1,228,560,863.00 696,216,454.00
48. Administration Expenses
Unit: RMB Yuan
Item Reporting Period Same period of last year
Labor cost 939,585,805.00 560,645,612.00
Depreciation and amortization 217,075,708.00 210,067,005.00
R&D expenses 951,137,953.00 738,474,486.00
Maintenance cost 412,714,741.00 299,838,449.00
Others 532,147,368.00 502,064,883.00
Total 3,052,661,575.00 2,311,090,435.00
49. Financial Expenses
Unit: RMB Yuan
Item Reporting Period Same period of last year
Interest expenses 1,231,529,637.00 822,841,814.00
Interest income -376,820,432.00 -248,305,319.00
Net amount of exchange loss (gains:
180,783,689.00 645,198,892.00
negative)
Others 63,620,288.00 15,143,623.00
Total 1,099,113,182.00 1,234,879,010.00
129
50. Asset Impairment Loss
Unit: RMB Yuan
Item Reporting Period Same period of last year
I. Bad debt loss 214,709,584.00 -16,280,180.00
II. Inventory falling price loss 1,208,736,546.00 531,103,126.00
Total 1,423,446,130.00 514,822,946.00
51. Gains and Losses from Changes in Fair Value
Unit: RMB Yuan
Sources of changes in fair value gains Reporting period Same period of last year
Financial assets measured by fair value and
the changes be included in the current 0.00 4,623,937.00
profits and losses
Of which, gains on the changes in the
fair value of derivative financial 0.00 0.00
instruments
Financial liabilities measured by fair value
and the changes included in the current 0.00 0.00
gains and losses
Investment property adopted fair value
0.00 0.00
measurement mode
Total 0.00 4,623,937.00
52. Investment Income
Unit: RMB Yuan
Item Reporting Period Same period of last year
Long-term equity investment income
-13,690,555.00 -11,180,961.00
accounted by equity method
Investment income arising from disposal of
0.00 0.00
long-term equity investments
Investment income received from financial
assets measured by fair value and the changes
0.00 0.00
be included in the current profits and losses
during holding period
Investment income received from disposal of
financial assets measured by fair value and the 0.00 -13,042,225.00
changes be included in the current profits and
130
losses during holding period
Investment income of held to maturity
0.00 0.00
investment during holding period
Investment income received from holding of
12,148,223.00 9,498,220.00
available-for-sale financial assets
Investment income received from disposal of
0.00 0.00
available-for-sale financial assets
After losing control, gain from the remaining
0.00 0.00
stock remeasured at fair value
Investment income from wealth management
20,704,483.00 79,719,288.00
products on maturity
Total 19,162,151.00 64,994,322.00
53. Other Income
Unit: RMB Yuan
Sources of other income Reporting period Same period of last year
Government subsidy related to daily
275,302,864.00 0.00
activities of enterprises
54. Non-operating Gains
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Total gains from disposal of
2,597,163.00 4,788,368.00 2,597,163.00
non-current assets
Including: Gains from disposal
2,597,163.00 1,135,331.00 2,597,163.00
of fixed assets
Gains from disposal of
0.00 3,653,037.00 0.00
intangible assets
Debt restructuring 0.00 0.00 0.00
income from non-monetary
0.00 0.00 0.00
assets exchange
Accepting donations 0.00 0.00 0.00
Government subsidies 31,062,835.00 1,660,030,393.00 31,062,835.00
Others 20,846,580.00 128,914,121.00 20,846,580.00
Total 54,506,578.00 1,793,732,882.00 54,506,578.00
131
Government subsidies recorded into current profits and losses
Unit: RMB Yuan
Whether subsidies
Special Related to
Distribution influence the Reporting Same period of
Item Distribution entity Nature subsidy assets/related
reason current profits and Period last year
or not income
losses or not
Due to engaged in special industry that the state
Project loan Commerce Related to
Subsidy encouraged and supported, gained subsidy (obtaining in Yes No 0.00 28,414,203.00
discount Commission etc. assets
line with the law and the regulations of national policy)
Administration Subsidy gained due to confirming with local
Project loan Related to
Committee of the Subsidy government attracting investment and local supportive Yes No 0.00 601,136,000.00
discount income
Development Zone etc. policy etc.
Government
Municipal People’s Due to engaged in special industry that the state
subsidy for other Related to
Government, NDRC, Subsidy encouraged and supported, gained subsidy (obtaining in Yes No 0.00 186,900,867.00
scientific assets
Finance Bureau etc. line with the law and the regulations of national policy)
research projects
Government
Municipal People’s Due to engaged in special industry that the state
subsidy for other Related to
Government, NDRC, Subsidy encouraged and supported, gained subsidy (obtaining in Yes No 31,062,835.00 843,579,323.00
scientific income
Finance Bureau etc. line with the law and the regulations of national policy)
research projects
Total -- -- -- -- -- 31,062,835.00 1,660,030,393.00 --
132
55. Non-operating Expenses
Unit: RMB Yuan
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current
21,855,086.00 2,257,689.00 21,855,086.00
assets
Including: Loss on disposal of
21,383,716.00 2,257,689.00 21,383,716.00
fixed assets
Losses from disposal of
0.00 0.00 0.00
intangible assets
Loss on debt reconstruction 0.00 0.00 0.00
Non-monetary asset exchange
0.00 0.00 0.00
losses
Donation 1,184,940.00 0.00 1,184,940.00
Others 1,386,611.00 3,619,242.00 1,386,611.00
Total 24,426,637.00 5,876,931.00 24,426,637.00
56. Income Tax Expense
(1) Lists of Income Tax Expense
Unit: RMB Yuan
Item Reporting Period Same period of last year
Current income tax expense 923,414,609.00 25,699,596.00
Deferred income tax expense 16,847,006.00 30,558,715.00
Total 940,261,615.00 56,258,311.00
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB Yuan
Item Reporting Period
Total profits 5,534,823,620.00
Current income tax expense accounted by tax and relevant
830,223,543.00
regulations
Influence of different tax rate suitable to subsidiary -34,851,494.00
Influence of income tax before adjustment 0.00
Influence of non taxable income -2,874,323.00
133
Influence of not deductable costs, expenses and losses 10,105,855.00
Influence of deductable losses of deferred income tax assets
32,420,254.00
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
157,559,171.00
of deferred income tax assets derecognized in Reporting Period.
Making up the annual losses of previous years -52,321,391.00
Income tax expense 940,261,615.00
57. Other Comprehensive Income
Refer to Note 42.
58. Information of Cash Flow Statement
(1) Other Cash Received Relevant to Operating Activities
Unit: RMB Yuan
Item Reporting Period Same period of last year
Interest income 248,295,788.00 161,872,743.00
Government subsidies related to income 243,760,365.00 1,288,275,799.00
Receiving cash from recycling waste and
80,220,554.00 0.00
waste water
Tender bond / performance bond received 38,191,239.00 35,509,926.00
Receiving a refund for the deposit 20,121,331.00 0.00
Exchange earning from carry-forward,
187,772.00 521,087.00
repurchase
Others 138,176,021.00 68,359,640.00
Total 768,953,070.00 1,554,539,195.00
(2) Other Cash Paid Relevant to Operating Activities
Unit: RMB Yuan
Item Reporting Period Same period of last year
Daily spending paid 2,496,459,880.00 2,203,273,931.00
Restrictive deposit in financial institutions
200,676,652.00 219,615,038.00
increased
Cash deposit 74,682,666.00 54,387,310.00
Bank service charges 24,698,890.00 10,978,187.00
134
Others 24,351,220.00 391,096,551.00
Total 2,820,869,308.00 2,879,351,017.00
(3) Other Cash Received Relevant to Investment Activities
Unit: RMB Yuan
Item Reporting Period Same period of last year
Restrictive deposit in financial institutions 1,419,977,569.00
0.00
recovered
Interest income 111,642,364.00 137,545,845.00
Cash inflow from combination of 51,553,545.00
657,102,662.00
subsidiary
Tender shall / guarantee money for a bid 33,986,781.00 83,723,914.00
Government subsidies related to assets 24,491,476.00 2,000,000.00
Others 10,185,865.00 2,379,389.00
Total 1,651,837,600.00 882,751,810.00
(4) Other Cash Paid Relevant to Investment Activity
Unit: RMB Yuan
Item Reporting Period Same period of last year
Refund on bid/performance bond / safety 399,110,178.00
27,752,918.00
construction bond
Restrictive deposit in financial institutions 0.00
1,278,387,586.00
increased
Others 18,883,785.00 110,127,607.00
Total 417,993,963.00 1,416,268,111.00
(5) Other Cash Received Relevant to Financing Activities
Unit: RMB Yuan
Item Reporting Period Same period of last year
Bill discounting 98,452,460.00 0.00
Scrappy interest of dividends 19.00 379.00
Total 98,452,479.00 379.00
135
(6) Other Cash Paid Relevant to Financing Activities
Unit: RMB Yuan
Item Reporting Period Same period of last year
Payment for repurchase of stock 351,381,074.00 0.00
Restrictive deposit in financial institutions
157,510,760.00 0.00
increased
Paid guarantees 120,000,000.00 0.00
Bank service charges 20,421,484.00 34,652,203.00
Total 649,313,318.00 34,652,203.00
59. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB Yuan
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash flows generated from operating
-- --
activities
Net profit 4,594,562,005.00 -587,503,568.00
Add: Provision for impairment of assets 1,423,446,130.00 514,822,946.00
Depreciation of fixed assets, of oil-gas assets, of productive biological 5,464,374,990.00
4,809,870,880.00
assets
Amortization of intangible assets 143,041,546.00 122,450,569.00
Long-term unamortized expenses 42,667,113.00 30,360,640.00
Losses on disposal of fixed assets, intangible assets and other long-term
-9,952,741.00 -3,840,860.00
assets (gains: negative)
Loss on retirement of fixed assets (gains: negative) -294,151.00 -684,336.00
Losses from variation of fair value (gains: negative) 0.00 -4,623,937.00
Financial cost (gains: negative) 1,472,353,270.00 1,234,879,010.00
Investment loss (gains: negative) -19,162,151.00 -64,994,322.00
Decrease in deferred income tax assets (gains: negative) -3,403,943.00 16,083,984.00
Increase in deferred income tax liabilities
20,250,949.00 14,474,731.00
(“-” means decrease)
Decrease in inventory (gains: negative) -2,985,235,404.00 -1,003,386,330.00
Decrease in accounts receivable from operating activities (gains: negative) -4,224,525,906.00 -4,079,163,191.00
Increase in payables from operating activities (decrease: negative) 4,919,933,010.00 2,117,729,336.00
136
Others -199,463,451.00 -382,388,597.00
Net cash flows generated from operating activities 10,638,591,266.00 2,734,086,955.00
2. Significant investing and financing activities without involvement of
-- --
cash receipts and payments
Conversion of debt into capital 0.00 0.00
Company bonus convertible due within one year 0.00 0.00
Fix assets under financing lease 0.00 0.00
3. Net increase in cash and cash equivalents: -- --
Closing balance of cash 42,798,317,023.00 40,036,041,613.00
Less: Opening balance of cash 49,354,810,388.00 36,182,738,217.00
Add: Closing balance of cash equivalents 0.00 0.00
Less: Opening balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -6,556,493,365 3,853,303,396.00
There was no net cash paid/received from the acquisition/disposal of subsidiaries for the Company during the Reporting Period.
（2）Net Cash paid of obtaining the subsidiary
Item Amount
Cash or cash equivalent paid for enterprise combination 78,393,738.00
Of which: --
Less: cash and cash equivalents held by subsidiary on purchase date 129,947,283.00
Of which: --
Add: cash or cash equivalent paid for enterprise combination in
0.00
previous period
Of which: --
Net Cash paid of obtaining the subsidiary -51,553,545.00
(3) Cash and Cash Equivalents
Unit: RMB Yuan
Item Closing balance Opening balance
I. Cash 42,798,317,023.00 49,354,810,388.00
Including: Cash on hand 237,047.00 707,796.00
Bank deposit on demand 42,521,903,389.00 49,170,616,669.00
Other monetary funds on demand 276,176,587.00 183,485,923.00
Payable of due from central bank 0.00 0.00
137
Deposits in other banks 0.00 0.00
Call loans to banks 0.00 0.00
II. Cash and cash equivalents 0.00 0.00
Of which: Bond investment due within three
0.00 0.00
months
III. Closing balance of cash and cash
42,798,317,023.00 49,354,810,388.00
equivalents
Including: the restricted cash and cash
equivalents of the Company and the 0.00 0.00
subsidiaries of the Group used
60. Assets with Restricted Ownership and Right to Use
Refer to Section IV. 3.
61. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB Yuan
Closing foreign currency Closing convert to RMB Yuan
Item Exchange rate
balance balance
Monetary capital -- -- 21,556,733,062.00
Including: USD 2,944,777,015.00 6.7744 19,949,097,408.00
EUR 370,592.00 7.7496 2,871,943.00
HKD 476,110,628.00 0.8679 413,225,936.00
JPY 19,359,012,220.00 0.0605 1,170,929,854.00
GBP 397.00 8.8144 3,502.00
MYR 3,804.00 1.5779 6,002.00
TWD 42,736,876.00 0.2224 9,505,752.00
KRW 1,052,006,352.00 0.0059 6,234,190.00
SGD 504,844.00 4.9135 2,480,549.00
SF 710.00 7.0888 5,033.00
Cruzeiro 652,656.00 2.0502 1,338,081.00
INR 9,877,019.00 0.1048 1,369,503.00
Accounts receivable -- -- 8,145,892,601.00
Including: USD 1,164,275,604.00 6.7744 7,887,282,373.00
EUR 659,878.00 7.7496 5,113,791.00
138
JPY 2,039,858,170.00 0.0605 123,411,419.00
GBP 4,403,832.00 8.8144 38,817,137.00
Long-term loan -- -- 25,937,129,826.00
Including: USD 3,828,697,719.00 6.7744 25,937,129,826.00
EUR 0.00 0.00 0.00
HKD 0.00 0.00 0.00
(2) Note to Oversea Entities Including: for Significant Oversea Entities, Shall Disclose Main Operating
Place, Recording Currency and Selection Basis, if there Are Changes into Recording Currency, Shall Also
Disclose the Reason.
□ Applicable √ Not applicable
VIII. Change of Consolidation Scope
In the Reporting Period, BOE has incorporated five new subsidiaries: Mianyang BOE Optoelectronics Co., Ltd., Beijing BOE Yiyun
Technology Co., Ltd., BOE Brazil Consulting Service Co., Ltd., BOE Regenerative Medical Technologies Co. Ltd. and Beijing BOE
Health Technology Co., Ltd. BOE holds 62.5%, 51%, 100%, 100% and 100% of their shares respectively.
In the Reporting Period, to strengthen the smart energy system business, BOE has taken over Huanda Trading (Hebei) Co., Ltd.,
Juhui New Energy (Pinghu) Co., Ltd., Juhui New Energy (Shaoxing) Co., Ltd. and Dinghui New Energy (Zhuji) Co., Ltd. BOE holds
100% of their shares.
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) The Structure of the Enterprise Group
Main operating Holding percentage (%)
place/
Name Nature of business Way of gaining
Registration Directly Indirectly
place
Beijing BOE
Optoelectronics Research, development, design and
Beijing, China 82.49% 17.51% Investment
Technology Co., manufacture of TFT-LCD
Ltd.
Chengdu BOE Business
Optoelectronics Chengdu, combination not
R&D, production and sales of TFT-LCD 100.00% 0.00%
Technology Co., China under the same
Ltd. control
Hefei BOE Business
Hefei, China R&D, production and sales of TFT-LCD 100.00% 0.00%
Optoelectronics combination not
139
Technology Co., under the same
Ltd. control
Beijing BOE
Development of TFT-LCD, manufacture and
Display Technology Beijing, China 97.17% 2.83% Investment
sale of LCD
Co., Ltd.
Hefei Xinsheng Business
Investment, construction, R&D, production
Optoelectronics combination not
Hefei, China and sales of the relevant products of thin film 84.59% 0.03%
Technology Co., under the same
transistor LCD and its auxiliary products
Ltd. control
Ordos Yuansheng
Manufacture and sales of AM-OLED products
Optoelectronics Co., Ordos, China 100.00% 0.00% Investment
and auxiliary products
Ltd.
Chongqing BOE Business
Investment, construction, R&D, production
Optoelectronics Chongqing, combination not
and sales of the relevant products of thin film 100.00% 0.00%
Technology Co., China under the same
transistor LCD and its auxiliary products
Ltd. control
Fuzhou BOE Business
Investment, construction, R&D, production
Optoelectronic combination not
Fuzhou, China and sales of the relevant products of thin film 68.52% 0.00%
Technology Co., under the same
transistor LCD and its auxiliary products
Ltd. control
Beijing BOE Video Manufacture of LCD TV, LCD; technology
Technology Co., Beijing, China development of terminal products and systems 100.00% 0.00% Investment
Ltd. such as TFT-LCD display and TV
Beijing BOE
Manufacture and sale of vacuum electronic
Vacuum Electronics Beijing, China 55.00% 0.00% Investment
products
Co., Ltd.
Beijing BOE
Vacuum Technology Beijing, China Manufacture and sale of electronic tubes 100.00% 0.00% Investment
Co., Ltd.
Beijing BOE
Special Display Development of display products and sale of
Beijing, China 100.00% 0.00% Investment
Technology Co., electronic products
Ltd.
Development and research of real estate,
Beijing Yinghe
Beijing, China motor vehicles public parking service; market 100.00% 0.00% Investment
Century Co., Ltd.
research
BOE
Optoelectronics Development and manufacture of backlight
Suzhou, China 94.77% 0.00% Investment
Technology Co., and related parts and components for LCD
Ltd.
BOE Hyundai LCD Beijing, China Development, manufacture and sale of liquid 75.00% 0.00% Investment
140
(Beijing) Display display for mobile termination
Technology Co.,
Ltd.
BOE (Hebei)
Langfang, Manufacture and sale of mobile flat screen
Mobile Technology 100.00% 0.00% Investment
China display technical products and related services
Co., Ltd.
Beijing BOE
Sale of computer software and hardware, the
Multimedia
Beijing, China numeral regards the audio frequency 100.00% 0.00% Investment
Technology Co.
technology
Ltd.
Beijing BOE Energy
Solar cell, photovoltaic system, wind power
Technology Co., Beijing, China 100.00% 0.00% Investment
system and solar thermal system
Ltd.
Beijing BOE Smart Technology promotion, property management,
Beijing, China 100.00% 0.00% Investment
Commerce Co., Ltd. and sales of electronic products
Beijing
Zhongxiangying Technology promotion, property management,
Beijing, China 100.00% 0.00% Investment
Technology Co., and sales of electronic products
Ltd.
Erdos Haosheng
Energy Investment Ordos, China Energy investment 20.00% 80.00% Investment
Co., Ltd.
Beijing BOE Processing, manufacturing and sales of
Semi-conductor Co., Beijing, China precision electronic components, and 80.77% 0.00% Investment
Ltd. semi-conductor devices
Hong Kong,
BOE Design, manufacturing and sales of
China / Virgin
Optoelectronics electronic-information industry related 100.00% 0.00% Investment
Islands,
Holding Co., Ltd products, investment and financing businesses
British
Business
Beijing Asahi
Sales of TV bracket glass rod and CTV combination not
Electronic Materials Beijing, China 100.00% 0.00%
low-melting-point solder glass under the same
Co., Ltd.
control
Business
BOE Healthcare Investment management and project combination not
Beijing, China 100.00% 0.00%
Co., Ltd. investment under the same
control
Business
BeijingMatsushita Color TV set, Display tube and materials of combination not
Beijing, China 88.80% 0.00%
Color CRT Co., Ltd. color RPTV projection tube under the same
control
141
Business
Hefei BOE Display
Investment, R & D and production of products combination not
Technology Co., Hefei, China 6.70% 0.00%
related to TFT-LCD and the supporting facility under the same
Ltd.
control
Beijing BOE
Technology Development, transfer, consulting and service
Beijing, China 100.00% 0.00% Investment
Development Co., of technology
Ltd.
BOE Intelligent Development, transfer, consulting, service and
Beijing, China 100.00% 0.00% Investment
technology Co., Ltd. promotion of technology
Hefei BOE Zhuoyin Investment, construction, R&D, production
Technology Co., Hefei, China and sales of products related to OLED display 60.06% 0.00% Investment
Ltd. device and auxiliary products
Development, construction, property
management and supporting service of
industrial plants and supporting facilities;
Beijing BOE Real
Beijing, China information consulting of real estate; lease of 70.00% 0.00% Investment
Estate Co., Ltd.
commercial facilities, commercial attendants
and the supporting service facilities; motor
vehicles public parking service
BOE (Korea) Co., Trade related to electronic information
Korea 100.00% 0.00% Investment
Ltd. industry
Mianyang BOE
Production of display panel for high-end smart
Optoelectronic Mianyang,
phones, folding laptops etc. and R&D, 62.50% 0.00% Investment
Technology Co., China
production and sales of modules
Ltd.
R&D, production, sales, technical consulting
and maintenance of computer
Beijing BOE Yiyun
software/hardware and the auxiliary
Technology Co., Beijing, China 51.00% 0.00% Investment
equipment, electronics, hardware, camera
Ltd.
equipment, household appliances, arts&Crafts
etc.
Sales of communication equipment,
software&hardware of electronic computers,
peripheral devices, electronics, maintenance
Beijing BOE of equipment; development, transfer,
Beijing, China 100.00% 0.00% Investment
Marketing Co., Ltd. consulting and service of technologies;
imports&exports of goods, agency,
technologies; manufacturing consignment of
electronics and LCD devices
The Company holds 6.70%of shares of Hefei Display. Through the agreement on acting in concert signed by the Company with
Hefei Construction Investment and Holding Co., Ltd. and Hefei Xinping Industrial Investment Fund (limited partnership), the
142
Company acquired the control rights over Hefei Display.
143
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Explanations on Changes of Owner’s Equity in the Subsidiary
In February 2017, BOE has increased the capital of BOE Optoelectronics Co. Ltd. by RMB 89,000,000 Yuan. BOE has held 93.88%
and 94.77% of its shares before and after the capital increase respectively.
Hefei BOE Zhuoyin Technology Co., Ltd. has received the additional capital of RMB 250,000 Yuan and RMB 150,000,000 Yuan
from Hefei Industry Investment Group in January 2017 and May 2017 respectively, and of RMB Yuan100,000,000 from XZQ
Industry Investment Co., Ltd. in June 2017. BOE has held 100% and 60.06% of its shares before and after the capital increase
respectively.
Hefei BOE Display Light Co., Ltd. has received our additional capital of RMB 155,000,000 Yuan and RMB 182,000,000 Yuan in
February 2017 and June 2017 respectively, and the additional capital of RMB 1,700,000,000 Yuan, RMB 2,000,000,000 Yuan and
RMB 2,000,000,000 Yuan from Hefei Xinping Industry Investment Fund (Limited Partnership) in February 2017, May 2017 and
June 2017 respectively. BOE has held 7.46% and 6.70% of its shares before and after the capital increase respectively.
In June 2017, BOE has purchased minority stock of Chongqing BOE Optoelectronics Technology Co., Ltd. BOE has held 81.80%
and 100% of its shares before and after the capital increase respectively.
(2) The Effects of Transactions on Minority Equity and Owner’s Equity Attributable to the Parent
Company
Unit: RMB Yuan
Chongqing BOE
BOE Optical Science and Hefei BOE Display Hefei BOE Zhuoyin
Item Optoelectronics
Technology Co., Ltd. Technology Co., Ltd. Technology Co., Ltd.
Technology Co., Ltd.
Purchase cost/disposal
89,000,000.00 337,000,000.00 3,825,685,400.00 150,000,000.00
consideration
--Cash 89,000,000.00 337,000,000.00 3,825,685,400.00 150,000,000.00
-Fair value of non-cash assets 0.00 0.00 0.00 0.00
Total of purchase cost /disposal
89,000,000.00 337,000,000.00 3,825,685,400.00 150,000,000.00
consideration
Less: subsidiary net assets
proportion calculated by share 89,939,325.00 336,850,827.00 4,023,870,436.00 149,967,474.00
proportion obtained/disposal
Difference -939,325.00 149,173.00 -198,185,036.00 32,526.00
Of which: Adjustment of capital
-939,325.00 149,173.00 -198,185,036.00 32,526.00
reserves
Surplus reserves adjustments 0.00 0.00 0.00 0.00
Retained profits adjustments 0.00 0.00 0.00 0.00
144
3. Equity in Associated Enterprises
Unit: RMB Yuan
Closing balance/ Reporting
Item Opening balance /last period
Period
Total investment book value 1,981,030,454.00 1,356,111,395.00
The total of following items according to the shareholding proportions -- --
--Net profits -13,690,554.00 -15,121,347.00
--Other comprehensive income -6,355,387.00 46,783,399.00
--Total comprehensive income -20,045,941.00 31,662,052.00
Excess Loss Incurred in Associated Enterprises
Unit: RMB Yuan
The cumulative recognized The derecognized losses or the The noncumulative
Name losses in previous share of net profit in Reporting unrecognized losses in
accumulatively derecognized Period Reporting Period
Beijing Nissin Electronic
0.00 543,140.00 543,140.00
Precision Components Co., Ltd.
X. The Risk Related Financial Instruments
Risks related to financial instruments in daily activities for the Group include:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
- Other price risks
The risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methods of measuring risks
and changes in this year will be discussed below.
Risk management objective of the Company is to balance the risks and profits, minimize the negative effects to business performance
and maximize the profits for stockholders and other equity investors. On the basis of risk management objectives, basic strategies of
risk management are to determine and analyze all possible risks, establish appropriate risk baseline, control and manage risks and
monitor all risks timely and reliably within defined scope. The Group will regularly review the risk management policies and internal
control system to adapt to the market and changes of operating activities. The Internal Audit Department will regularly review or
randomly inspect whether implementation of internal control system satisfies risk management policies.
(1) Credit Risk
Credit risk is the possibility of financial loss to one party of financial instruments from unfulfillment of obligations of the other party.
Credit risk of the Group mainly comes from accounts receivable. The management of this group will monitor the credit risk
exposure.
Except that the monetary capital (other than cash) is deposited in financing institution with good credit, the management does not
believe that other important credit risks exist or losses are not expected to be made to the group due to the other party’s breach.
145
For the accounts receivable, the board of directors has formulated the credit policies according to actual conditions to determine the
credit sale limit and credit term by credit assessment. Credit assessment is performed according to customer s’ financial situation,
external ratings and transaction history. Relevant accounts receivable will expire within 15-120 days after billing date. Debtor of
accounts receivable overdue will be required to pay off the outstanding balance to obtain the credit line.
In order to monitor the credit risk, this group will analyze the customer data by aging, maturity date and other factors.
Credit risk of this group is affected by the customer characteristics, but not the industry, country or region. Therefore, concentration
of important credit risk is relied on the important accounts receivable of individual customers. On balance sheet date, accounts
receivable of the Group and top 5 customers account for 42% and 1% respectively of all receivables (40% and 1% in 2016).
Furthermore, accounts receivable without expiry or decrease in value are most related to customers without arrears recently.
The largest credit risk exposure of this group is the book amount of each financial asset on the balance sheet. Until June 30, 2017, the
group did not provide any guaranty that may cause credit risk.
(2) Liquidity Risk
Liquidity risk refers to that with capital shortage when the Company is fulfilling obligations of cash payment or payment by other
financial assets methods. The Company and its subsidiaries are responsible for its own cash management, including short-term
investment of cash surplus and loan financing to satisfy prospective cash needs (if the borrowing exceeds preauthorized upper limit,
it shall be approved by the board of directors). It is the group’s policy to regularly monitor short-term and long-term circulating
capital needs and confirm whether it satisfies loan agreement in order to keep sufficient cash reserve and negotiable securities
available for realization and obtain sufficient reserve fund as promised by financing institution to satisfy the demands of short-term
and long-term circulating capital.
(3) Interest Rate Risk
Interest bearing financial instruments of fixed interest rate and floating interest rate will impose interest rate risks of fair value and
cash flow on the Group. Proportion of fixed interest rate and floating interest rate instruments is decided by marketing environment.
The Group will regularly review and maintain the combination of fixed and floating interest rate instruments. The Group will not
hedge interest rate risk by derivative financial instruments.
Until June 30, 2017, under the circumstance without changes of other variables，it is supposed that the rising/ falling interest rate at
100 base points will result in reduction/ increase of RMB 210.8 million Yuan (RMB 81.37 million Yuan in 2016) for net profits and
stockholders’ equity.
Until balance sheet date, the group has not held any financial instruments that may impose fair value interest rate risk on the Group.
For the floating interest rate but not derivative instruments held by the Group and imposing the Group with interest rate risk of cash
flow on balance sheet date, the net profits and owners’ equity in the above sensitivity analysis will affect the annual interest expenses
or income due to above variation of interest rate.
(4) Foreign Exchange Risk
For the monetary capital, accounts receivable and payable, short-term borrowing and other foreign currency assets and liabilities not
valued by bookkeeping base currency, if short-term unbalance occurs, the Group will buy or sell the foreign currencies at market
exchange rate to maintain net risk exposure at an acceptable level.
Until June 30, 2017, the foreign assets liabilities item with significant risk exposure settled by USD, the total net assets exposure of
USD item risk exposure was USD 401,958,932 (net liabilities exposure USD 181,256,436 in 2016) discounted into RMB Yuan was
RMB Yuan2,723,030,588 (RMB 1,257,375,894 Yuan in 2016) at spot rate on balance sheet date. Under the circumstance without
changes of other variables, 5% fluctuation in exchange rate of RMB Yuan against U.S. dollar will result in reduction / increase of
RMB 129,190,526 Yuan (RMB 99,443,997 Yuan in 2016) for stockholders’ equity and net profits.
Above sensitivity analysis is performed based on changes of exchange rate on balance sheet date and re-measurement of financial
instruments of foreign exchange risk according to changed exchange rate held by the Group on balance sheet date. Above analysis
excludes differences of the foreign currency conversion. Analysis of the last year is based on similar assumption and methods.
(5) Other Price Risks
146
Other price risks include equity price risk, commodity price risk, etc.
XI. The Disclosure of the Fair Value
1. Closing Fair Value of Assets and Liabilities Calculated by Fair Value
Unit: RMB Yuan
Fair value at the end of the reporting period
Item
First level Second level Third level
Total
Fair value measurement Fair value measurement Fair value measurement
I. Consistent fair value
-- -- -- --
measurement
(I) Financial assets calculated by
fair value and changes record into 0.00 0.00 0.00 0.00
current profits or losses
1. Trading financial assets 0.00 0.00 0.00 0.00
(1) Debt instruments investment 0.00 0.00 0.00 0.00
(2) Equity tool investment 0.00 0.00 0.00 0.00
(3) Derivative financial assets 0.00 0.00 0.00 0.00
2. Financial assets assigned
measured by fair value and the
0.00 0.00 0.00 0.00
changes be included in the
current gains and losses
(1) Debt instruments investment 0.00 0.00 0.00 0.00
(2) Equity tool investment 0.00 0.00 0.00 0.00
(II) Available-for-sale financial
523,792,045.00 0.00 3,856,380,817.00 4,380,172,862.00
assets
(1) Debt instruments investment 4,149,590.00 0.00 10,103,600.00 14,253,190.00
(2) Equity tool investment 519,642,455.00 0.00 0.00 519,642,455.00
(3) Other 0.00 0.00 3,846,277,217.00 3,846,277,217.00
(III)Investment property 0.00 0.00 0.00 0.00
1. Lease the land use right 0.00 0.00 0.00 0.00
2. Rental buildings 0.00 0.00 0.00 0.00
3. Land use right held and
prepared to transfer after 0.00 0.00 0.00 0.00
appreciation
(IV)Biological assets 0.00 0.00 0.00 0.00
1.Consumable biological assets 0.00 0.00 0.00 0.00
147
2. Productive biological assets 0.00 0.00 0.00 0.00
Total assets of consistent fair
523,792,045.00 0.00 3,856,380,817.00 4,380,172,862.00
value measurement
(V)Transaction financial
0.00 0.00 0.00 0.00
liabilities
Of which: tradable bond issued 0.00 0.00 0.00 0.00
Derivative financial
0.00 0.00 0.00 0.00
liabilities
Others 0.00 0.00 0.00 0.00
(VI) Refer as financial liabilities
measured by fair value and the
0.00 0.00 0.00 0.00
changes included in the current
gains and losses
Total liabilities of consistent
0.00 0.00 0.00 0.00
fair value measurement
II. Inconsistent fair value
-- -- -- --
measurement
(I) Assets held for sale 0.00 0.00 0.00 0.00
Total assets inconsistently
0.00 0.00 0.00 0.00
measured at fair value
Total liabilities inconsistent
0.00 0.00 0.00 0.00
measured at fair value
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities
148
XII. Related Party and Related Transaction
1. Information Related to Parent Company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
Operation and
No.12 Jiuxian
management of RMB 1,307,370,000
Electronics Holding Bridge, Zhaoyang 0.78% 11.21%
state-owned assets Yuan
District, Beijing
within authorization
The actual controller of the Company is Beijing Electronics Holding Co., Ltd.
2. Subsidiaries of the Company
Refer to Note IX. 1.
3. Information on the Associated Enterprises of the Company
For information of the major associated enterprises of the Company, please refer to Note IX. 3.
List of other joint ventures and associated enterprises that made related-party transactions with the Company generating balance
during or before the report period:
Name of associated enterprise Relationship with the Company
Beijing Nissin Electronics Precision Component Co., Ltd. Beijing Xindongneng Investment Management Co.
Shenzhen Yunyinggu Technology Co., Ltd. Beijing Xindongneng Investment Management Co.
Beijing Nittan Electronic Co., Ltd. Beijing Xindongneng Investment Management Co.
TPV Display Technology (China) Limited Beijing Xindongneng Investment Management Co.
Beijing Xindongneng Investment Management Co., Ltd. Beijing Xindongneng Investment Management Co.
Cnoga Medical Ltd. Beijing Xindongneng Investment Management Co.
4. Information on Other Related Parties of the Company
Name Relationship
Enterprises that are controlled by the Company’s ultimate
Beijing Jile Electronics Group Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Sevenstar Huasheng Electronics & Machinery Co., Ltd.
holding company
Beijing Sevenstar Front Electronics Co., Ltd. Enterprises that are controlled by the Company’s ultimate
149
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Sevenstar Hongtai Electronic Equipment Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Sevenstar Front Electronics Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Zhengdong Electronic Power Group Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Yandong Microelectronic Co., Ltd.,
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Orient Electronics Material Corp.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Dongdian Industrial Development Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing PCB Square Corporation
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Sevenstar Integrated Circuit Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing North Microelectronics Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Zhaowei Technology Development Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Sevenstar Huadian Technology Group Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Electronic City Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Beijing BBEF Science & Technology Co., Ltd.
holding company
Beijing Northern Microelectronics Foundation Equipment Enterprises that are controlled by the Company’s ultimate
Technology Research Center holding company
Enterprises that are controlled by the Company’s ultimate
Beijing Zhaowei Electronic Group Co., Ltd.
holding company
Enterprises that are controlled by the Company’s ultimate
Xin Xiang Microelectronic (Hong Kong) Co., Ltd.
holding company
The associated natural person of the Company serves as its
BAIC BJEV
director.
150
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB Yuan
The approval trade Whether exceed trade Same period of last
Related-party Content Reporting Period
credit credit or not year
Beijing Electronics 77,008,531.00
Holding Co., Ltd Purchase of goods 158,505,273.00 800,000,000.00 No
and its subsidiaries
Beijing Electronics 1,911,217.00
Accepting labor
Holding Co., Ltd 1,640,754.00 9,000,000.00 No
services
and its subsidiaries
Other related party Purchase of goods 5,847,243.00 351,000,000.00 No 2,219,693.00
Accepting labor 0.00
Other related party 0.00 30,000,000.00 No
services
Information of sales of goods and provision of labor service
Unit: RMB Yuan
Related-party Content Reporting Period Same period of last year
Beijing Electronics Holding 57,904.00
Sale of goods 1,718,201.00
Co., Ltd and its subsidiaries
Beijing Electronics Holding 28,963.00
Render service 48,192.00
Co., Ltd and its subsidiaries
Other related party Sale of goods 44,248,480.00 118,013,542.00
Other related party Render service 223,757.00 23,857.00
(2) Information of Related Lease
The Company serves as the lessor:
Unit: RMB Yuan
Rental income confirmed in the Rental income confirmed in the
Name of leasee Type of leased assets
Report period same period of last year
Beijing Electronics Holding
Investment property 639,813.00 339,332.00
Co., Ltd and its subsidiaries
Other related party Investment property 1,767,383.00 1,415,621.00
The Company serves as the leasee:
Unit: RMB Yuan
Name of lessor Type of leased assets Rental expense confirmed in the Rental expense confirmed in the
151
report period same period of last year
Beijing Electronics Holding
Fixed assets 18,239.00 19,367.00
Co., Ltd and its subsidiaries
(3) Rewards for the Key Management Personnel
Unit: RMB Yuan
Item Reporting period Same period of last year
Rewards for the key management
28,603,916.00 18,968,374.00
personnel
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: RMB Yuan
Closing balance Opening balance
Name o f item Related-party
Book balance Bad debt provision Book balance Bad debt provision
Beijing Electronics Holding
Accounts receivable 679,310.00 0.00 698,445.00 0.00
Co., Ltd and its subsidiaries
Accounts receivable Other related party 13,149,901.00 0.00 31,391,346.00 0.00
Payment in advance Other related party 257,252.00 0.00 0.00 0.00
Other accounts Beijing Electronics Holding
7,540.00 0.00 6,440.00 0.00
receivable Co., Ltd and its subsidiaries
(2) Payables
Unit: RMB Yuan
Closing book
Name o f item Related-party Opening book balance
balance
Accounts payable Beijing Electronics Holding Co., Ltd and its subsidiaries 11,089,577.00 5,878,972.00
Accounts payable Other related party 58,502.00 58,502.00
Other accounts payable Beijing Electronics Holding Co., Ltd and its subsidiaries 93,388,422.00 113,707,663.00
Other accounts payable Other related party 81,479.00 15,000.00
Advance from customers Other related party 52,761.00 0.00
152
XIII. Commitments and Contingencies
1. Significant Commitments
Significant commitments at balance sheet date
(1) Capital Commitments
The Group 06/30/2017 12/31/2016
Investment contracts entered into but not performed or performed partially 33,254,796,386.00 36,715,593,193.00
Investment contracts authorized but not entered into 49,001,990,595.00 67,984,162,416.00
Total 82,256,786,981.00 104,699,755,609.00
The Group 06/30/2017 12/31/2016
Investment contracts entered into but not performed or performed partially 24,428,128,741.00 28,310,042,427.00
Investment contracts authorized but not entered into 0.00 0.00
Total 24,428,128,741.00 28,310,042,427.00
(2) Operating Commitments
The Group 06/30/2017 12/31/2016
Within 1 year (including 1 year) 32,396,040.00 21,220,578.00
Over 1 year and within 2 years (including 2 year) 25,712,007.00 17,634,577.00
Over 2 year and within 3 years (including 3 year) 21,167,479.00 13,715,188.00
Over 3 years 132,818,855.00 16,038,238.00
Total 212,094,381.00 68,608,581.00
2. Contingencies
There was no significant contingency for the Company to disclose.
XIV. Other Significant Events
1. Annuity Plan
Since 2014, the Group established pension plan in line with the related policies of private pension system and replies of related
department; withdraw enterprise pension in line with the total amount of employees’ voluntary participation in pension plan.
2. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting Considerations
153
The Group principal decision-makers review the operation performance and distribute resources in accordance to the business
segments below.
(a) Display and Sensor Business Group - This business mainly involves the R&D, production and distribution on the panel and
module for TFT-LCD and AM-OLED.
(b) Smart system -This business mainly involves the development, manufacture and sales of display terminal products and system;
OEM service for terminal products and system of TV, display, special display product; offering safe, energy-saving, healthy,
fashionable quality illumination service and solutions; the integration and operation for solar energy application system (e.g.
photovoltaic-thermal system), including key parts and overall solution for this area.
(c) Healthcare service -This business mainly covers Health Cloud, Health & Medical product, and Park Solution. Health Cloud is an
information management system based on cloud computing and cloud server; Health & Medical product and service mainly includes
wearable and testing equipments; Park Solution refers to professional solution for technology estate and heath estate and so on.
(d) Others - other service mainly includes technical development service and patent maintenance service
The main reason to separate the segments is that the Group independently manages the display parts business, the smart system
business, and healthcare service businesses. Because the business segments manufacture and distribute different products, apply to
different manufacturing processes and specify in gross profit, the business segments are managed independently. The management
evaluates the performance and allocates resources according to the profit of each business segment and does not take financing cost
and investment income into account.
(2) Accounting Policy for the Measurements of Segment Profit or Loss, Assets and Liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s management regularly
reviews the assets, liabilities, revenue, cost and results of operations, attributable to each reportable segment on the following bases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exception
of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank borrowings and other
non-current liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporate
liabilities.
Financial performance is operating income (including operating income from external customers and inter-segment operating income)
after deducting expenses, depreciation, amortization, impairment losses, gains or losses from changes in fair value, investment gain,
non-operating income and expenses and income tax expenses attributable to the individual segments. Inter-segment sales are
determined with reference to prices charged to external parties for similar orders.
(2) The Financial Information of Reportable Segment
Unit: RMB Yuan
Display and Sensor Smart system
Item Health services Others Offset in segment Total
business business
Operation
40,261,582,742.00 8,271,879,666.00 489,914,987.00 442,168,181.00 -4,860,517,581.00 44,605,027,995.00
revenue
Operation cost 28,802,055,244.00 7,609,162,350.00 246,278,933.00 8,488,146.00 -4,430,718,084.00 32,235,266,589.00
154
XV. Notes of Main Items in the Financial Statements of the Company
1. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Withdrawal Book value Withdrawal Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable with significant
single amount for which bad debt 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
provision separately accrued
Accounts receivable withdrawal of
bad debt provision of by credit risks 31,450,726.00 64.39% 0.00 0.00% 31,450,726.00 30,874,530.00 63.34% 0.00 0.00% 30,874,530.00
characteristics:
Accounts receivable with insignificant
single amount for which bad debt 17,395,967.00 35.61% 2,889,866.00 16.61% 14,506,101.00 17,869,195.00 36.66% 2,889,866.00 16.17% 14,979,329.00
provision separately accrued
Total 48,846,693.00 100.00% 2,889,866.00 5.92% 45,956,827.00 48,743,725.00 100.00% 2,889,866.00 5.93% 45,853,859.00
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
155
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Withdraw methods for bad debt provision by Closing balance of bad Withdrawal
Name of the group Basis Closing balance
group debt provision proportion
Mehtod of which is lower between future
Credit risk group With similar credit risks characteristics 31,450,727.00 00.00 0.00%
recoverable amount and book value
There was no bad debt provision withdrawn, collected or reversed for the Company during the reporting Period as well as write-off accounts receivable. .
(2) Accounts Receivable of the Top 5 of the Closing Balance Collected According to the Arrears Party
The total amount of top five of account receivable of closing balance collected by arrears party was RMB 44,323,275.00 Yuan, 90.74% of total closing balance of account receivable, the
relevant closing balance of bad debt provision withdrawn was RMB 473,228.00 Yuan.
2. Other Accounts Receivable
(1) Other Accounts Receivable Classified by Category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Withdrawal Book value Withdrawal Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Other accounts receivable
with significant single amount
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
for which bad debt provision
separately accrued
Other accounts receivable
1,167,306,167.00 100.00% 0.00 0.00% 1,167,306,167.00 1,629,176,234.00 100.00% 0.00 0.00% 1,629,176,234.00
withdrawn bad debt provision
156
according to credit risks
characteristics
Other accounts receivable
with insignificant single
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
amount for which bad debt
provision separately accrued
Total 1,167,306,167.00 100.00% 0.00 0.00% 1,167,306,167.00 1,629,176,234.00 100.00% 0.00 0.00% 1,629,176,234.00
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
157
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Basis of determining Closing balance of bad
Name of the group Withdrawl method Closing balance
group debt provision
Mehtods of which is lower between
With similar credit risks
Credit risk group future recoverable amount and book 1,167,306,167.00 0.00
characteristics
value
There was no bad debt provision withdrawn, collected and reversed for the Company as well as write-off other accounts receivable
during the Reporting Period.
(2) Other Accounts Receivable Classified by Account Nature
Unit: RMB Yuan
Nature of accounts Closing book balance Opening book balance
Intercourse funds 862,328,766.00 1,248,425,532.00
Rent receivable 196,737,690.00 209,636,819.00
Others 108,239,711.00 171,113,883.00
Total 1,167,306,167.00 1,629,176,234.00
(5) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB Yuan
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
Customer 1 Intercourse funds 506,160,000.00 Within 1 year 43.37% 0.00
Customer 2 Intercourse funds 189,702,568.00 Over 3 years 16.25% 0.00
Customer 3 Intercourse funds 112,792,007.00 Within 1 year 9.66% 0.00
Within 1 year, 1 to 2
Customer 4 Intercourse funds 86,771,218.00 7.43% 0.00
years and 2 to 3 years
Within 1 year and 2 to
Customer 5 Intercourse funds 51,668,416.00 4.43% 0.00
3 years
Total -- 947,094,209.00 -- 81.14% 0.00
158
3. Long-term Equity Investment
Unit: RMB Yuan
Closing balance Opening balance
Item
Book balance Impairment provision Book value Book balance Impairment provision Book value
Investment to the subsidiary 112,832,854,497.00 60,000,000.00 112,772,854,497.00 98,986,915,097.00 60,000,000.00 98,926,915,097.00
Investment to joint ventures and
1,277,845,798.00 0.00 1,277,845,798.00 991,536,352.00 0.00 991,536,352.00
associated enterprises
Total 114,110,700,295.00 60,000,000.00 114,050,700,295.00 99,978,451,449.00 60,000,000.00 99,918,451,449.00
(1) Investment to the subsidiary
Unit: RMB Yuan
Withdrawn impairment
Closing balance of
Investee Opening balance Increase Decrease Closing balance provision in the
impairment provision
Reporting Period
Beijing BOE Semi-conductor Co.,
9,450,000.00 0.00 0.00 9,450,000.00 0.00 0.00
Ltd.
Beijing Yinghe Century Co., Ltd. 333,037,433.00 0.00 0.00 333,037,433.00 0.00 0.00
Beijing BOE Land Co., Ltd. 7,731,474.00 0.00 0.00 7,731,474.00 0.00 0.00
BOE (Hebei) Mobile Technology Co.,
1,053,651,020.00 0.00 0.00 1,053,651,020.00 0.00 0.00
Ltd.
BOE Hyundai LCD (Beijing) Display
31,038,525.00 0.00 0.00 31,038,525.00 0.00 0.00
Technology Co., Ltd.
Beijing BOE Vacuum Electronics Co.,
19,250,000.00 0.00 0.00 19,250,000.00 0.00 0.00
Ltd.
159
Beijing BOE Vacuum Technology
32,000,000.00 0.00 0.00 32,000,000.00 0.00 0.00
Co., Ltd.
Beijing BOE Optoelectronics
4,172,288,084.00 0.00 0.00 4,172,288,084.00 0.00 0.00
Technology Co., Ltd.
Beijing BOE Special Display
100,000,000.00 0.00 0.00 100,000,000.00 0.00 60,000,000.00
Technology Co., Ltd.
BOE Optoelectronics Technology Co.,
519,961,914.00 89,000,000.00 0.00 608,961,914.00 0.00 0.00
Ltd.
BOE Marketing Co., Ltd. 500,000.00 0.00 0.00 500,000.00 0.00 0.00
Chengdu BOE Optoelectronics
11,333,149,991.00 1,200,000,000.00 0.00 12,533,149,991.00 0.00 0.00
Technology Co., Ltd.
Beijing Asahi Electronic Material Co.,
30,888,470.00 0.00 0.00 30,888,470.00 0.00 0.00
Ltd.
BOE (Korea) Co., Ltd. 788,450.00 0.00 0.00 788,450.00 0.00 0.00
Beijing BOE Optoelectronics Holding
297,935,467.00 836,154,000.00 0.00 1,134,089,467.00 0.00 0.00
Co., Ltd.
Mianyang BOE Optoelectronics
0.00 500,000,000.00 0.00 500,000,000.00 0.00 0.00
Technology Co., Ltd.
Beijing Yiyun Technology Co., Ltd. 0.00 5,100,000.00 0.00 5,100,000.00 0.00 0.00
Beijing BOE Display Technology Co.,
17,418,713,599.00 0.00 0.00 17,418,713,599.00 0.00 0.00
Ltd.
Beijing BOE Energy Technology Co.,
250,000,000.00 300,000,000.00 0.00 550,000,000.00 0.00 0.00
Ltd.
Beijing BOE Multimedia Technology
400,000,000.00 0.00 0.00 400,000,000.00 0.00 0.00
Co. Ltd.
Hefei BOE Optoelectronics 9,000,000,000.00 0.00 0.00 9,000,000,000.00 0.00 0.00
160
Technology Co., Ltd.
BeijingMatsushita Color CRT Co.,
0.00 0.00 0.00 0.00 0.00 0.00
Ltd.
Beijing BOE Video Technology Co.,
1,120,000,000.00 850,000,000.00 0.00 1,970,000,000.00 0.00 0.00
Ltd.
Beijing BOE Smart Commerce Co.,
10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Ltd.
Beijing Zhongxiangying Technology
10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Co., Ltd.
Ordos Yuansheng Optoelectronics
11,804,000,000.00 0.00 0.00 11,804,000,000.00 0.00 0.00
Co., Ltd.
Erdos Haosheng Energy Investment
2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00
Co., Ltd.
Hefei Xinsheng Optoelectronics
16,575,150,000.00 0.00 0.00 16,575,150,000.00 0.00 0.00
Technology Co., Ltd.
Chongqing BOE Optoelectronics
15,739,669,199.00 3,825,685,400.00 0.00 19,565,354,599.00 0.00 0.00
Technology Co., Ltd.
Hefei BOE Display Technology Co.,
667,765,323.00 337,000,000.00 0.00 1,004,765,323.00 0.00 0.00
Ltd.
Fuzhou BOE Optoelectronic
7,183,042,079.00 5,483,000,000.00 0.00 12,666,042,079.00 0.00 0.00
Technology Co., Ltd.
BOE Healthcare Co., Ltd. 813,154,069.00 270,000,000.00 0.00 1,083,154,069.00 0.00 0.00
Intelligent Technology 50,000,000.00 0.00 0.00 50,000,000.00 0.00 0.00
Hefei BOE Zhuoyin Technology Co.,
750,000.00 150,000,000.00 0.00 150,750,000.00 0.00 0.00
Ltd.
Beijing BOE Technology 1,000,000.00 0.00 0.00 1,000,000.00 0.00 0.00
161
Development Co., Ltd.
Total 98,986,915,097.00 13,845,939,400.00 0.00 112,832,854,497.00 0.00 60,000,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB Yuan
Increase/decrease
Profit and loss on Cash, Closing
Adjustment of
Opening investments Changes dividends balance for
The investor Additional Reduced other Impairment Closing balance
balance confirmed in other and profits Others impairment
investments investments comprehensive provisions
according to equity declared to provisions
income
equity law issue
I. Joint ventures
Naught
II. Associated enterprises
Beijing Nissin
Electronics Precision
359,892.00 0.00 0.00 -359,892.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Component Co., Ltd.
(Nissin Electronics )
Beijing Nittan
Electronic Co., Ltd. 40,628,603.00 0.00 0.00 1,683,861.00 0.00 0.00 0.00 0.00 0.00 42,312,464.00 0.00
(Nittan Electronics)
Beijing Yingfei
Hailin Venture Capital
456,681.00 0.00 0.00 -232,315.00 0.00 0.00 0.00 0.00 0.00 224,366.00 0.00
Management Co., Ltd.
(Yingfei Hailin)
Ordos BOE Energy 9,463,270.00 0.00 0.00 -4,959.00 0.00 0.00 0.00 0.00 0.00 9,458,311.00 0.00
162
Investment Co., Ltd.
(BOE Energy
Investment)
Beijing Fly Hailin
156,981,032.00 0.00 0.00 -413,210.00 0.00 0.00 0.00 0.00 0.00 156,567,822.00 0.00
Investment Center
TPV Display
Technology (China) 26,622,344.00 0.00 0.00 -2,292,247.00 0.00 0.00 0.00 0.00 0.00 24,330,097.00 0.00
Limited
Beijing Xindongneng
Investment Fund 679,323,799.00 300,000,000.00 0.00 -8,238,903.00 0.00 0.00 0.00 0.00 0.00 971,084,896.00 0.00
(LLP)
Beijing Xindongneng
Investment 2,906,218.00 0.00 0.00 905,446.00 0.00 0.00 0.00 0.00 0.00 3,811,664.00 0.00
Management Co., Ltd.
Shenzhen Yunyinggu
50,345,936.00 0.00 0.00 -4,271,755.00 0.00 0.00 0.00 0.00 0.00 46,074,181.00 0.00
Technology Co., Ltd.
Beijing XLOONG
24,448,577.00 0.00 0.00 -466,580.00 0.00 0.00 0.00 0.00 0.00 23,981,997.00 0.00
Technology Co., Ltd.
Subtotal 991,536,352.00 300,000,000.00 0.00 -13,690,554.00 0.00 0.00 0.00 0.00 0.00 1,277,845,798.00 0.00
Total 991,536,352.00 300,000,000.00 0.00 -13,690,554.00 0.00 0.00 0.00 0.00 0.00 1,277,845,798.00 0.00
4. Revenues and Operating Costs
Unit: RMB Yuan
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 0.00 0.00 0.00 0.00
163
Other operations 705,463,015.00 5,670,598.00 693,427,051.00 58,815,389.00
Total 705,463,015.00 5,670,598.00 693,427,051.00 58,815,389.00
5. Investment Income
Unit: RMB Yuan
Item Reporting Period Same period of last year
Long-term equity investment income accounted by cost method 607,278,350.00 20,375,903.00
Long-term equity investment income accounted by equity method -13,690,555.00 -11,180,961.00
Investment income arising from disposal of long-term equity investments 0.00 0.00
Investment income received from financial assets measured by fair value and the changes be included in the
0.00 0.00
current profits and losses during holding period
Investment income received from disposal of financial assets measured by fair value and the changes be
0.00 0.00
included in the current profits and losses during holding period
Investment income of held to maturity investment during holding period 0.00 0.00
Investment income received from holding of available-for-sale financial assets 930,175.00 2,846,740.00
Investment income received from disposal of available-for-sale financial assets 0.00 0.00
After losing control, gain from the remaining stock premeasured at fair value 0.00 0.00
Investment income from wealth management products on maturity 0.00 6,335,442.00
Total 594,517,970.00 18,377,124.00
164
XVI. Supplementary Materials
1. Items and Amounts of Extraordinary Gains and Losses
√ Applicable □ Not applicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets -19,257,923.00 Naught
Tax return and relief approved ultra vires or without any official approval documents 0.00 Naught
Tax rebates, reductions or exemptions due to approval beyond authority or the lack of
306,365,699.00 Naught
official approval documents
Capital occupation charges on non-financial enterprises that are recorded into current
0.00 Naught
gains and losses
Gains due to that the investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the enjoyable fair value of the identifiable 0.00 Naught
net assets of the investees when making the investments
Gain/loss on non-monetary asset swap 0.00 Naught
Gain/loss on entrusting others with investments or asset management 0.00 Naught
Asset impairment provisions due to acts of God such as natural disasters 0.00 Naught
Gains and losses from debt restructuring 0.00 Naught
Expenses on business reorganization, such as expenses on staff arrangements,
0.00 Naught
integration, etc.
Gain/loss on the part over the fair value due to transactions with distinctly unfair prices 0.00 Naught
Current net gains and losses of subsidiaries acquired in business combination under the
0.00 Naught
same control from period-begin to combination date
Profit and loss from contingencies irrelative to the normal business operations of
0.00 Naught
company
Gain/loss from change of fair value of transactional assets and liabilities, and
investment gains from disposal of transactional financial assets and liabilities and
20,704,483.00 Naught
available-for-sale financial assets, other than valid hedging related to the Company’s
common businesses
Depreciation reserves returns of receivables with separate depreciation test 575,305.00 Naught
Gain/loss on entrustment loans 0.00 Naught
Gain/loss on change of the fair value of investing real estate of which the subsequent
0.00 Naught
measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current
gains/losses according to requirements of taxation, accounting and other relevant laws 0.00 Naught
and regulations
165
Custody fee income when entrusted with operation 0.00 Naught
Other non-operating income and expenses other than the above 18,275,029.00 Naught
Project confirmed with the definition of non-recurring gains and losses and losses 0.00 Naught
Less: Income tax effects 36,540,381.00 Naught
Minority interests effects 5,360,721.00 Naught
Total 284,761,491.00 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Net Equity and Earnings Per Share
EPS（ Yuan/share）
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common shareholders of the
4.48% 0.123 0.123
Company
Net profit attributable to common shareholders of the
4.19% 0.115 0.115
Company after deduction of non-recurring profit and loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards, for Audit Data Adjusting Differences Had Been Foreign Audited, Should Indicate
the Name of the Foreign Institutions
Naught
166
Section XI Documents Available for Reference
(I) Financial statements signed and sealed by the head of the Company, the President of the Executive Committee (CEO), the
accounting head for this Report and the head of the accounting department (head of accounting); and
(II) Originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting
Period.
All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Board Chairman’s signature: Mr. Wang Dongsheng
Date of the Board’s approval of this Report’s submission: August 28, 2017
167
