BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
Stock Code: 200725 Stock Name: BOE B Announcement No. 2017-060
BOE TECHNOLOGY GROUP CO., LTD.
THIRD QUARTER REPORT 2017 (SHORT FORM)
Part I Important Statements
The board of directors (the “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.
All the directors of the Company attended the board meeting for the review of this Report.
Mr. Wang Dongsheng, head of the Company, Mr. Chen Yanshun, President of the Executive Committee (CEO),
Ms. Sun Yun, accounting head for this Report, and Ms. Yang Xiaoping, head of the accounting department (head
of accounting) of the Company, hereby guarantee that the financial statements carried in this Report are factual,
accurate and complete.
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.
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
Item September 30, 2017 December 31, 2016 Change
Total assets (RMB Yuan) 238,955,632,292.00 205,135,011,042.00 16.49%
Equity attributable to owners of the
83,724,702,000.00 78,699,988,493.00 6.38%
parent (RMB Yuan)
Item July-September 2017 YoY change January-September 2017 YoY change
Net sales (RMB Yuan) 24,803,328,149.00 27.89% 69,408,356,144.00 51.41%
Net margin attributable to owners 2,173,061,620.00 230.68% 6,475,667,220.00 4,503.51%
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
of the parent (RMB Yuan)
Net margin attributable to owners
of the parent before exceptional 1,899,046,822.00 239.86% 5,916,890,931.00 -
gains and losses (RMB Yuan)
Net cash from operating activities
-- -- 18,491,007,288.00 182.39%
(RMB Yuan)
Basic earnings per share (RMB
0.062 226.32% 0.185 4,525.00%
Yuan/share)
Diluted earnings per share (RMB
0.062 226.32% 0.185 4,525.00%
Yuan/share)
Weighted average return on equity
2.66% 1.81% 7.96% 7.78%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB Yuan
Item January-September 2017 Note
Gains/losses on the disposal of non-current assets (including the offset part of asset
-52,833,590.00 N/A
impairment provisions)
Tax rebates, reductions or exemptions due to approval beyond authority or the lack of
0.00 N/A
official approval documents
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 612,352,020.00 N/A
country’s unified standards
Capital occupation charges on non-financial enterprises that recorded into current gains
0.00 N/A
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 N/A
net assets of the investees when making the investments
Gain/loss on non-monetary asset swap 0.00 N/A
Gain/loss on entrusting others with investments or asset management 0.00 N/A
Asset impairment provisions due to acts of God such as natural disasters 0.00 N/A
Gain/loss on debt restructuring 0.00 N/A
Expenses for business reorganization, such as expenses for staffing, reorganization etc. 0.00 N/A
Gain/loss on the part over the fair value due to transactions with distinctly unfair prices 0.00 N/A
Current gains and losses of subsidies acquired from business combination under the
0.00 N/A
same control as from period-begin to combination date
Gain/loss on contingent events irrelevant to the Company’s normal business 0.00 N/A
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
Gains and losses on change in fair value from tradable financial assets and tradable
financial liabilities, as well as investment income from disposal of tradable financial
58,259,670.00 N/A
assets and tradable financial liabilities and financial assets available for sales, except
for effective hedging related with normal businesses of the Company
Reversal of impairment provisions for the accounts receivable on which impairment
698,969.00 N/A
tests were carried out separately
Gain/loss on external entrustment loans 0.00 N/A
Gain/loss on change of the fair value of investing real estate of which the subsequent
0.00 N/A
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 N/A
and regulations
Custody fee income when entrusted with operation 0.00 N/A
Non-operating incomes and expenses other than the above 38,050,135.00 N/A
Other gain/loss items that meet the definition of an extraordinary gain/loss 0.00 N/A
Less: Income tax effects 73,358,157.00 N/A
Minority interests effects (after tax) 24,392,758.00 N/A
Total 558,776,289.00 --
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.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of common shareholders
979,167 (A-shareholders: 941,875; B-shareholders: 37,292)
at period-end
Top 10 shareholders
Nature of Shareholding Total shares held Restricted shares Pledged or frozen shares
Name of shareholder
shareholder percentage at period-end held at period-end Status Number
Beijing State-owned
State-owned
Capital Management 11.68% 4,063,333,333 0 N/A 0
Corporation
Center
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
Chongqing Capital
State-owned
Photoelectricity 8.62% 3,000,000,000 0 N/A 0
Corporation
Investment Co., Ltd.
Hefei Jianxiang State-owned
8.21% 2,857,142,857 0 N/A 0
Investment Co., Ltd. Corporation
Beijing
Economic-Technologi State-owned
3.57% 1,241,423,641 0 N/A 0
cal Investment & Corporation
Development Corp.
Beijing BOE
Investment & State-owned
2.36% 822,092,180 0 N/A 0
Development Co., Corporation
Ltd.
National Social
Security Fund Other 1.58% 550,038,713 0 N/A 0
Portfolio 108
Hong Kong Securities
Foreign
Clearing Company 0.88% 305,284,592 0 N/A 0
corporation
Ltd.
Beijing Electronics
Nation 0.79% 273,735,583 0 N/A 0
Holdings Co., Ltd.
Central Huijin State-owned
0.71% 248,305,300 0 N/A 0
Investment Ltd. Corporation
National Social
Security Fund Other 0.64% 223,371,500 0 N/A 0
Portfolio 101
Top 10 non-restricted shareholders
Type of stock
Name of shareholder Non-restricted shares held at period-end
Type Number
Beijing State-owned Capital RMB ordinary
4,063,333,333 4,063,333,333
Management Center shares
Chongqing Capital Photoelectricity RMB ordinary
3,000,000,000 3,000,000,000
Investment Co., Ltd. shares
RMB ordinary
Hefei Jianxiang Investment Co., Ltd. 2,857,142,857 2,857,142,857
shares
Beijing Economic-Technological RMB ordinary
1,241,423,641 1,241,423,641
Investment & Development Corp. shares
Beijing BOE Investment & RMB ordinary
822,092,180 822,092,180
Development Co., Ltd. shares
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
National Social Security Fund Portfolio RMB ordinary
550,038,713 550,038,713
108 shares
Hong Kong Securities Clearing RMB ordinary
305,284,592 305,284,592
Company Ltd. shares
RMB ordinary
Beijing Electronics Holdings Co., Ltd. 273,735,583 273,735,583
shares
RMB ordinary
Central Huijin Investment Ltd. 248,305,300 248,305,300
shares
National Social Security Fund Portfolio RMB ordinary
223,371,500 223,371,500
101 shares
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
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital
among shareholders above
Operation and Management Center handed over 70% of the 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.
Top 10 common shareholders
conducting securities margin trading (if N/A
any)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
Unit: RMB Yuan
September 30, December 31,
Item 2017/January-September 2016/January-September Change Main reason for change
2017 2016
Increased investments in wealth
Other current assets 15,032,948,154 5,691,200,226 164%
management products
Long-term equity
2,353,204,156 1,356,111,395 74% Increased investments in associates
investments
Higher expenditure on construction
Construction in progress 49,719,431,282 33,008,248,720 51%
and equipment purchases
Partial repayment of bank loans in the
Short-term borrowings 1,678,999,556 4,916,965,507 -66%
current period
Non-current liabilities due Reclassification of long-term
11,361,177,187 3,684,236,935 208%
within one year borrowings in the current period
Long-term accounts payable 2,399,693,429 1,261,446,565 90% Increased finance leases
A larger business size and a positive
Net sales 69,408,356,144 45,841,905,735 51%
industry outlook
Selling expense 1,988,692,991 1,172,795,371 70% Increased sales activities
Income tax expense 1,353,027,097 120,127,244 1026% Substantial increase in earnings
Net cash from operating
18,491,007,288 6,548,148,538 182% Increase in earnings
activities
Net cash from investing Higher expenditure on construction
-47,711,823,118 -17,914,918,712 165%
activities and equipment purchases
Net cash from financing Specialized borrowings for new
27,057,943,017 11,139,226,214 143%
activities construction projects
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
1. 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 Yuan2.92/share, min. price: RMB
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
Yuan2.36/share, total payment: RMB Yuan226,525,285.07 (commission and other fixed charged included)), and 265,976,681
B-shares (max. price: HKD3.45/share, min. price: HKD2.12/share, total payment: HKD799,996,931.17 (commission and other fixed
charged included)). For more details, see Announcement No. 2017-046 on Consummation of Partial Repurchase of Public Shares
disclosed by the Company on August 22, 2017.
2. The Company disclosed the Announcement on 2016 Annual Profit Distribution on July 8, 2017. The profit distribution plan had
been considered and approved at the 2016 Annual Meeting of Shareholders on June 9, 2017. For the year 2016, the Company would
distribute a cash dividend of RMB Yuan0.3 per 10 shares (cash dividends for B-shareholders would be paid in HKD as per the
central parity rate between RMB Yuan and HKD declared by the People’s Bank of China on the first working day after the profit
distribution resolution was made by the Company’s meeting of shareholders), without bonus shares or shares converted from capital
reserve.
3. 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 USD41.84 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. The Company has made a bad-debt provision for the amount claimed as per the accounting standards. Currently, the court
is going through the property preservation procedure and the case is awaiting the court’s trial. Therefore, its effects on the Company
are uncertain.
Announcement of significant event Disclosure date Disclosure website
Announcement on Signing Investment Framework Agreement 08/11/2017 http://www.cninfo.com.cn
Announcement on Receipt of Government Subsidy by Subsidiary 09/29/2017 http://www.cninfo.com.cn
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in cumulative net margin during the period the beginning of the
current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
V Securities Investments
√ Applicable □ Not applicable
Profit/loss
on fair
Cumulative fair Sold in Source of
Variety of Code of Name of Initial Accounting value Purchased in Profit/loss in
Opening book value changes this Closing book
measurement changes in this Reporting this Reporting Accounting title investment
securities securities securities investment cost value charged to Reporting value
model this Period Period
equity Period funds
Reporting
Period
Domestic/overseas TPV Fair value Available-for-sale
HK00903 134,658,158.00 28,763,373.00 0.00 726,746.00 0.00 0.00 792,019.00 28,770,053.00 Subscription
stock Technology method financial asset
Domestic/overseas Electronic Fair value Available-for-sale
SH600658 90,160,428.00 129,715,503.00 0.00 61,731,579.00 0.00 0.00 0.00 108,407,203.00 Share swap
stock Zone method financial asset
Domestic/overseas Bank of Fair value Available-for-sale Subscription
HK01963 120,084,375.00 148,067,614.00 0.00 16,043,393.00 0.00 0.00 7,331,745.00 136,127,768.00
stock Chongqing method financial asset
Domestic/overseas China Fair value Available-for-sale Subscription
HK06066 70,041,364.00 69,367,469.00 0.00 -388,957.00 0.00 0.00 2,049,750.00 69,652,407.00
stock Securities method financial asset
New century Subscription
Domestic/overseas Fair value Available-for-sale
HK01518 medical 142,474,623.00 0.00 0.00 19,544,318.00 142,474,623.00 0.00 0.00 162,018,941.00
stock method financial asset
treatment
BlackRock Subscription
GF World Fair value Available-for-sale
Funds Naught 4,004,297.00 5,974,163.00 0.00 2,215,690.00 0.00 0.00 0.00 6,219,988.00
Healthscience method financial asset
A2 USD
Other securities investments held at the
0.00 -- 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 99,872,769.00 142,474,623.00 0.00 10,173,514.00 511,196,360.00 -- --
Disclosure date of the announcement about Naught
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
the board’s consent for the securities
investment
Disclosure date of the announcement about
the general meeting’s consent for the Naught
securities investment (if any)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
07/03/2017 By one-on-one meeting Institution
07/06/2017 By one-on-one meeting Institution
07/07/2017 By phone Institution
07/07/2017 By phone Institution
07/11/2017 By one-on-one meeting Institution
07/11/2017 By one-on-one meeting Institution
07/12/2017 By one-on-one meeting Institution
07/13/2017 By one-on-one meeting Institution
Main discussion:
08/21/2017 By one-on-one meeting Institution
1. The performance of the Company and
08/29/2017 By one-on-one meeting Institution
industry conditions
08/31/2017 By phone Institution 2. Operating situation of the Company
09/05/2017 By one-on-one meeting Institution 3. Technological and product innovations
09/11/2017 By one-on-one meeting Institution 4. The future development strategy of the
Company
09/15/2017 By phone Institution
See www.cninfo.com.cn for details
09/18/2017 By one-on-one meeting Institution
09/19/2017 By phone Institution
09/20/2017 By one-on-one meeting Institution
09/20/2017 By phone Institution
09/21/2017 By one-on-one meeting Institution
09/22/2017 By one-on-one meeting Institution
09/25/2017 By one-on-one meeting Institution
09/28/2017 By one-on-one meeting Institution
09/29/2017 By one-on-one meeting Institution
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BOE Technology Group Co., Ltd. Third Quarter Report 2017 (Short Form)
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
Board Chairman (signature):
Wang Dongsheng
Date of the Board’s approval of this Report: October 27, 2017
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