BOE Technology Group Co., Ltd. First Quarter Report 2018 (Short Version)
Stock symbol: 000725, 200725 Stock name: BOE A, BOE B Announcement No.: 2018-037
BOE TECHNOLOGY GROUP CO., LTD.
FIRST QUARTER REPORT 2018 (SHORT VERSION)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of BOE Technology Group Co., Ltd. (inclusive of its
consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent
Company”, except where the context otherwise requires) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report, and shall be jointly and severally
liable for any misrepresentations, misleading statements or material omissions in this Report.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Mr. Wang Dongsheng, the Company’s legal representative, Mr. Chen Yanshun, President of
the Execution Committee (Chief Executive Officer) of the Company, Ms. Sun Yun, the
Company’s Chief Financial Officer, and Ms. Yang Xiaoping, head of the Company’s financial
department (equivalent to financial manager) 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 Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Item January-March 2018 January-March 2017 Change
Sales revenue (RMB) 21,566,813,037.00 21,854,974,362.00 -1.32%
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BOE Technology Group Co., Ltd. First Quarter Report 2018 (Short Version)
Net income attributable to shareholders of the listed
2,018,692,554.00 2,413,015,650.00 -16.34%
company (RMB)
Net income attributable to shareholders of the listed
966,342,404.00 2,301,442,129.00 -58.01%
company before nonrecurring gains and losses (RMB)
Net cash flows from operating activities (RMB) 7,198,088,816.00 6,216,049,821.00 15.80%
Basic earnings per share (RMB/share) 0.058 0.069 -15.94%
Diluted earnings per share (RMB/share) 0.058 0.069 -15.94%
Weighted average return on equity (%) 2.35% 3.02% -0.67%
Item March 31, 2018 December 31, 2017 Change
Total assets (RMB) 262,729,417,350.00 256,108,741,849.00 2.59%
Equity attributable to shareholders of the listed
86,611,338,154.00 84,809,816,377.00 2.12%
company (RMB)
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2018 Note
Gains and losses on disposal of non-current assets (inclusive of offset allowance for
2,268,256.00 N/A
asset impairments)
Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly
0.00 N/A
approved document
Government subsidies charged to current profit and loss (exclusive of government
subsidies given in the Company’s ordinary course of business at fixed quotas or 1,061,024,730.00 N/A
amounts as per government’s uniform standards )
Capital occupation charges on non-financial enterprises that are charged to current
0.00 N/A
gains and losses
Income equal to the amount by which investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair 0.00 N/A
value of identifiable net assets of investees when making investments
Gains and losses on non-monetary asset swap 0.00 N/A
Gains and losses on investment or asset management entrustments to other entities 0.00 N/A
Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A
Gains and losses on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gains and losses on over-fair value amount as a result of transactions with distinctly
0.00 N/A
unfair prices
Current gains and losses on subsidiaries acquired through business mergers under same
0.00 N/A
control from period-beginning to merger dates, net
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BOE Technology Group Co., Ltd. First Quarter Report 2018 (Short Version)
Gains and losses on contingencies that do not arise in the Company’s ordinary course
0.00 N/A
of business
Gains and losses on changes in fair value of trading financial assets and liabilities &
investment income from disposal of trading financial assets and liabilities and
93,646,189.00 N/A
available-for-sale financial assets (exclusive of effective portion of hedges that arise in
the Company’s ordinary course of business)
Reversed portion of impairment allowance for accounts receivable which are tested
67,880.00 N/A
individually for impairment
Gains and losses on loan entrustment 0.00 N/A
Gains and losses on fair value changes in investment property of which subsequent
0.00 N/A
measurement is carried out using fair value method
Effects of all adjustments required by taxation, accounting and other applicable laws
0.00 N/A
and regulations on current gains and losses
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than above 7,239,099.00 N/A
Other gains and losses that meet definition of nonrecurring gain/loss 0.00 N/A
Less: Income tax effects 62,318,035.00 N/A
Non-controlling interests effects (net of tax) 49,577,969.00 N/A
Total 1,052,350,150.00 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10 Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Common shareholders at period-end 1,313,406 (including 1,275,197 A-share holders and 38,209 B-share holders)
Top 10 shareholders
Shareholding Pledged or frozen shares
Nature of percentage at Restricted
Name of shareholder Shares
shareholder period-end shares Status Shares
(%)
Beijing State-owned Capital State-owned
11.68% 4,063,333,333 0 N/A 0
Operation and Management juridical
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BOE Technology Group Co., Ltd. First Quarter Report 2018 (Short Version)
Center person
Chongqing Ezcapital State-owned
Opto-electronics Industry juridical 7.62% 2,653,000,041 0 N/A 0
Investment Co., Ltd. person
State-owned
Hefei Jianxiang Investment
juridical 7.21% 2,510,142,953 0 N/A 0
Co., Ltd.
person
State-owned
Beijing Yizhuang Investment
juridical 3.57% 1,241,423,641 0 N/A 0
Holdings Limited
person
State-owned
Beijing BOE Investment &
juridical 2.36% 822,092,180 0 N/A 0
Development Co., Ltd.
person
National Social Security Fund
Other 1.27% 440,893,536 0 N/A 0
Portfolio 108
Hong Kong Securities Clearing
Other 1.01% 350,950,718 0 N/A 0
Company Ltd.
Beijing Electronics Holding On behalf of
Co., Ltd. the 0.79% 273,735,583 0 N/A 0
government
Central Huijin Asset
Other 0.71% 248,305,300 0 N/A 0
Management Co., Ltd.
National Social Security Fund
Other 0.69% 239,271,500 0 N/A 0
Portfolio 101
Top 10 non-restricted shareholders
Type of shares
Name of shareholder Non-restricted shares held at period-end
Type Shares
Beijing State-owned Capital Operation and RMB common
4,063,333,333 4,063,333,333
Management Center stock
Chongqing Ezcapital Opto-electronics RMB common
2,653,000,041 2,653,000,041
Industry Investment Co., Ltd. stock
RMB common
Hefei Jianxiang Investment Co., Ltd. 2,510,142,953 2,510,142,953
stock
Beijing Yizhuang Investment Holdings RMB common
1,241,423,641 1,241,423,641
Limited stock
Beijing BOE Investment & Development RMB common
822,092,180 822,092,180
Co., Ltd. stock
National Social Security Fund Portfolio 108 RMB common
440,893,536 440,893,536
stock
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BOE Technology Group Co., Ltd. First Quarter Report 2018 (Short Version)
Hong Kong Securities Clearing Company RMB common
350,950,718 350,950,718
Ltd. stock
Beijing Electronics Holding Co., Ltd. RMB common
273,735,583 273,735,583
stock
RMB common
Central Huijin Asset Management Co., Ltd. 248,305,300 248,305,300
stock
National Social Security Fund Portfolio 101 RMB common
239,271,500 239,271,500
stock
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 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital
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.
Shareholders conducting securities margin
N/A
trading (if 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. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. First Quarter Report 2018
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable □ Not applicable
1. Intangible assets as of March 31, 2018 increased 70% compared to December 31, 2017, primarily driven by the business mergers
during the Reporting Period (January-March 2018).
2. Goodwill as of March 31, 2018 increased 268% compared to December 31, 2017, primarily driven by the business mergers during
the Reporting Period.
3. Short-term borrowings as of March 31, 2018 decreased 30% compared to December 31, 2017, primarily driven by the repayment
of certain bank loans in the Reporting Period.
4. Interest payable as of March 31, 2018 decreased 82% compared to December 31, 2017, primarily driven by the payment of interest
on bonds and loans during the Reporting Period.
5. Deferred income as of March 31, 2018 increased 264% compared to December 31, 2017, primarily because the debt forgiveness
received during the Reporting Period was considered governmental subsidies associated with assets and was thus recognized in
deferred income.
6. Deferred income tax liabilities as of March 31, 2018 increased 59% compared to December 31, 2017, primarily driven by the
business mergers during the Reporting Period.
7. Asset impairment losses went down 54% during the Reporting Period (January-March 2018) compared to the same period of last
year (January-March 2017), primarily driven by a decrease in the inventory valuation allowance recorded for the Reporting Period
according to the lower of cost and net realizable value.
8. Investment income went up 1434% during the Reporting Period compared to the same period of last year, primarily driven by the
increase in income from investments in bank’s wealth management products during the Reporting Period.
9. Other income went up 700% during the Reporting Period compared to the same period of last year, primarily driven by the
increase in governmental subsidies during the Reporting Period.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
1. The Company respectively published Pre-announcement on Reducing the Shares Held by Shareholders owning 5% or above Shares
(No. 2017-061) and Pre-announcement on Reducing the Shares Held by Shareholders owning 5% or above Shares (No. 2017-062) on
November 22, 2017 and November 25, 2017. The Company’s shareholder Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital
Optoelectronics Industry Investment Co., Ltd. were expected to reduce their holding shares no more than 1.00% of the company’s
general capital by means of the centralized bidding within 3 months after 15 business days upon the disclosure of such announcements.
Up to January 15, 2018 and January 19, 2018, the above shareholders completed their reducing of holding shares.
2. On June 17, 2017, the Company issued Announcement on Purchasing Shares of SES-imagotag (NO.: 2017-036), the Company
proposed to assign its wholly-owned subsidiary on its behalf to purchase more than 50.01% shares of SES and consolidate SES’s
financial statements together with the joint-venture company SPV established by the Company and the investment platform designated
by the SES management. Up to March 16, 2018, SPV purchased 10,789,186 shares from SES in total by means of block trading and
comprehensive offer, occupying 79.94% of SES’s issued and outstanding shares, paid the total consideration Euros 323,675,580.
Please refer to Announcement on Completing the Purchase of SES-imagotag Shares (NO.: 2018-017) issued on March 17, 2018 for
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BOE Technology Group Co., Ltd. First Quarter Report 2018
detailed information.
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. (hereinafter referred
to as “LeTV Mobile”), LeTV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Mr. JiaYueting for
approximately USD 41.84 million in total. The court issued the Case Acceptance Notice and the Civil Ruling for property preservation
respectively on July 6, 2017 and July 31, 2017. The jurisdiction objection put forward by LeTV Mobile was rejected by the court, and
has instituted an appeal on the ruling of such jurisdiction objection to the Supreme People’s Court. Now, the absolute decree of the
Supreme People’s Court is pending. 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.
4. The public corporate bonds (Phase 1) of BOE Technology Group Co., Ltd. in 2016 issued to qualified investors by BOE from March
21 to March 22, 2016 reach one year on March 21, 2017. The interest shall be settled once a year within interest accrual period based on
the regulations. On March 16, 2018, BOE disclosed “16BOE01” 2017 Announcement of Interest Settlement (No.: 2018-016),
specifying that the interest of 10 bonds is RMB31.5 (tax included).
Summary of significant event Disclosure date Index to related announcement
Announcement on Investment in Construction of Chongqing 6th
Generation AMILED (flexible) Production Line and on Related 03/09/2018 www.cninfo.com.cn
Transactions
Announcement on Investment in Construction of Production Line www.cninfo.com.cn
03/09/2018
for Wuhan Gaoshidai TFT-LCD and Its Matching Projects
Announcement on Investment in BOE (Suzhou) Industrial Park 03/09/2018 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 Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as
explanation of why:
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. First Quarter Report 2018
V Securities Investments
√ Applicable □ Not applicable
Initial Opening Opening Closing Closing
Variety of Symbol of Gain/loss in
Closing book
Name of security investment cost holding holding holding holding Reporting Accounting title Source
security security value (RMB)
Period (RMB)
(RMB) (share) percentage (share) percentage
TPV Technology Available-for-sale Self-owned
Stock HK00903 134,658,158.00 24,360,191 1.04% 24,360,191 1.04% 18,985,975.00 196,070.00
financial asset funds
Electronic Zone Available-for-sale Self-owned
Stock SH600658 90,160,428.00 9,819,493 1.69% 9,819,493 1.23% 93,285,184.00 0.00
financial asset funds
Bank of Available-for-sale Self-owned
Stock HK01963 120,084,375.00 25,195,000 0.93% 25,195,000 0.81% 123,121,264.00 0.00
Chongqing financial asset funds
BlackRock Global
Available-for-sale Self-owned
Funds BLK Allocation Fund 4,004,297.00 16,989 0.06% 16,989 0.06% 6,019,693.00 0.00
financial asset funds
A2 USD
Available-for-sale Self-owned
Stock HK06066 China Securities 70,041,364.00 11,387,500 0.16% 11,387,500 0.16% 59,570,389.00 0.00
financial asset funds
New Century Available-for-sale Self-owned
Stock HK01518 141,558,280.00 21,550,000 4.49% 21,550,000 4.40% 187,139,483.00 0.00
Healthcare financial asset funds
Domestic/over Z-Obee Holdings Available-for-sale Self-owned
HK00948 0.00 145,306 0.02% 145,306 0.02% 266,360.00 0.00
seas stock Ltd. financial asset funds
Other securities investments held at the
0.00 0 -- 0 -- 0.00 0.00 -- --
period-end
Total 560,506,902.00 92,474,479 -- 92,474,479 -- 488,388,348.00 196,070.00 -- --
Disclosure date of announcement on Board’s
N/A
consent for securities investment
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BOE Technology Group Co., Ltd. First Quarter Report 2018
Disclosure date of announcement on
shareholders’ meeting’s consent for securities N/A
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. First Quarter Report 2018
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
01/10/2018 By one-on-one meeting Institution
01/15/2018 By one-on-one meeting Institution
01/16/2018 By one-on-one meeting Institution
01/17/2018 By one-on-one meeting Institution
01/19/2018 By phone Institution
01/22/2018 By one-on-one meeting Institution
01/24/2018 By one-on-one meeting Institution
01/25/2018 By one-on-one meeting Institution
Main content discussed:
03/01/2018 By one-on-one meeting Institution
1. Performance of the Company and
03/07/2018 By one-on-one meeting Institution
industrial situation;
03/08/2018 By one-on-one meeting Institution 2. Main operating information of the
03/09/2018 By one-on-one meeting Institution Company;
03/12/2018 By one-on-one meeting Institution 3. Technology and product innovation
4. Future strategic layout.
03/13/2018 By one-on-one meeting Institution
See www.cninfo.com.cn for details.
03/14/2018 By one-on-one meeting Institution
03/15/2018 By one-on-one meeting Institution
03/16/2018 By one-on-one meeting Institution
03/20/2018 By one-on-one meeting Institution
03/21/2018 By one-on-one meeting Institution
03/22/2018 By one-on-one meeting Institution
03/23/2018 By phone Institution
03/26/2018 By phone Institution
03/29/2018 By phone Institution
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. First Quarter Report 2018
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Chairman of the Board (signature)：
Wang Dongsheng
Date of the Board’s approval of this Report: April 23, 2018
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