BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
Stock Code: 200725 Stock Name: BOE-B Announcement No. 2018-050
BOE TECHNOLOGY GROUP CO., LTD.
INTERIM REPORT 2018 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2018 Interim Report of BOE Technology Group Co., Ltd. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of the
Company’s operating results, financial condition and future development plans, investors should carefully read the aforesaid full text,
which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of
the Company hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be
jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
Mr. Wang Dongsheng, the Company’s legal representative, Mr. Chen Yanshun, president of the Company’s Execution Committee
（Chief Executive Officer）, 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.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese versions shall prevail.
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BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
Part II Key Corporate Information
1. Stock Profile
Stock name BOE-A, BOE-B Stock code 000725, 200725
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Liu Hongfeng --
12 Xihuan Middle Road, Beijing
Office address Economic-Technological Development Area, --
P.R.China
Tel. 010－64318888 ext. --
E-mail address liuhongfeng@boe.com.cn --
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Item H1 2018 H1 2017 Change (%)
Operating revenue (RMB) 43,473,904,966.00 44,605,027,995.00 -2.54%
Net profit attributable to the listed
2,975,206,500.00 4,302,605,600.00 -30.85%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 978,868,759.00 4,017,844,109.00 -75.64%
items (RMB)
Net cash generated from/used in operating
11,439,605,846.00 10,638,591,266.00 7.53%
activities (RMB)
Basic earnings per share (RMB/share) 0.085 0.123 -30.89%
Diluted earnings per share (RMB/share) 0.085 0.123 -30.89%
Weighted average return on net assets (%) 3.45% 4.48% -1.03%
Item 30 June 2018 31 December 2017 Change (%)
Total assets (RMB) 276,232,247,578.00 256,108,741,849.00 7.86%
Net assets attributable to the listed
85,465,192,715.00 84,809,816,377.00 0.77%
company’s shareholders (RMB)
3. Shareholders and Their Holdings at Period-End
Unit: share
Number of ordinary shareholders 1,423,193 (including 1,383,999 A-shareholders and 39,194 B-shareholders)
Top 10 shareholders
Nature of Shareholding Pledged or frozen shares
Name of shareholder Number of shares Restricted shares
shareholder percentage Status Shares
Beijing State-owned
State-owned
Capital Operation and 11.68% 4,063,333,333 0 N/A 0
legal person
Management Center
Chongqing Ezcapital
Opto-electronics State-owned
7.62% 2,653,000,041 0 N/A 0
Industry Investment legal person
Co., Ltd.
Hefei Jianxiang State-owned 7.21% 2,510,142,953 0 N/A 0
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BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
Investment Co., Ltd. legal person
Beijing Yizhuang
State-owned
Investment Holdings 3.57% 1,241,423,641 0 N/A 0
legal person
Co., Ltd
Beijing BOE
Investment & State-owned
2.36% 822,092,180 0 N/A 0
Development Co., legal person
Ltd.
National Social
Security Fund Other 1.24% 429,993,527 0 N/A 0
Portfolio 108
Hong Kong Securities
Foreign
Clearing Company 1.20% 416,179,024 0 N/A 0
legal person
Ltd.
National Social
Security Fund Other 0.96% 335,271,500 0 N/A 0
Portfolio 101
Beijing Electronics State-owned
0.79% 273,735,583 0 N/A 0
Holdings Co., Ltd. legal person
Central Huijin Assets State-owned
0.71% 248,305,300 0 N/A 0
Management Co., Ltd legal person
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
Connected or acting-in-concert executing the voting rights of the shareholders.
parties among shareholders above 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital
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 the above relationships, the Company does not know any other connected party
or acting-in-concert party among the top 10 shareholders.
Shareholders conducting margin
N/A
trading (if any)
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue before the date of
this Report’s approval or were due but could not be redeemed in full?
Yes.
(1) Bond Profile
Bond name Abbr. Bond code Due date Balance (RMB’0,000) Coupon rate
The 2016 public offering of
corporate bonds by BOE
16BOE01 112358 31 March 2021 1,000,000 3.15%
Technology Group Co., Ltd. for
qualified investors (Phase I)
(2) Selected Financial Information of the Company as at Period-End
Item 30 June 2018 31 December 2017 Change (%)
Gearing ratio 59.31% 59.28% 0.03%
Item H1 2018 H1 2017 Change (%)
EBITDA-to-interest coverage (times) 5.66 8.43 -32.86%
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
In the first half of 2018, the global economy was running steadily in a positive recovery. With a weakening display market, the
Company firmly upheld its strategy of “Ecoresystem: Open and Connected” and achieved good operating results in the industry. Also,
the Reporting Period saw improvements in the Company’s technological and product innovation with the Company applying for over
4,800 new patents in the period. Meanwhile, the Company has dominated all the markets of mainstream display products. Progress
has been made in expansion in the innovative application market, with output rising over 140% year-on-year. Unit sales of all the
“8425” high-definition products registered marked growth. With enhanced marketing, BOE iGallery saw improvements in both
market recognition and unit sales. Cooperation on electronic labels for smart retail has been established with supermarkets across the
globe. In the Internet of Vehicles (IoV) business, the Company strengthened cooperation with notable car makers and the TFT unit
sales went up. The AMOLED average yield rate has exceeded 70% as at the end of this June, with shipments continuously delivered
to well-known manufacturers. Additionally, the Company successfully held a suppliers’ meeting and the first Digital Art Forum, as
well as participating in various fairs and exhibitions at home and abroad (Japan, Europe, the U.S., etc.) to promote its advanced
products and technologies including flexible AMOLED, 8K, micro display, mini-LED and QLED, as well as commercial display
solutions and new retail solutions. These moves were aimed at boosting the Company’s brand recognition.
(1) Display and Sensor Device
Various types of mobile phones with free form and bezel-less display realized mass production, 6.18-inch flexible products realized
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BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
1mm dynamic warping, and 5.99-inch flexible products realized dynamic floating appearance design. The OGM Tilt
active-pen-based TPC product (the tablet PCs that supports metal mesh integrated touch technology and uses active pen) that realized
initial release in the world achieved mass production in April; the 3.9mm MNT semi-set product, which is the thinnest in the world
and first semi-integrated complete displayer product of BOE, succeeded in mass production; several types of innovative products
were exhibited in domestic and overseas exhibitions, including the 7.56-inch QXGA Foldable (foldable product with resolution ratio
being 2048 x 1536) that won Innovative Product and Application Award in 2018 China Electronic Information Expo (CITE). The
construction of new production line was implemented as scheduled and realized phased target in advance; the 10.5th Generation
BOE Hefei Production Line was completed in June; the pile foundation engineering of Kunming Microdisplay Project was
completed on Jun. 25; the first 0.39-inch product was highlighted and realized SID sample display on May 23. The production
capacity of the 8.5th Generation Chongqing and Fuzhou Production Lines reached a high respectively, with comprehensive yield rate
improved continuously.
(2) IoT-Based Smart System
The Company innovated its iGallery business, optimized contents of APP function, and increased business performance rapidly, thus
enjoying comparative growth of sales volume on moving base with 170%, newly developing 350,000 users, and increasing the
amount of works transactions by fivefold. The layout of Smart Retail Business in China started to show effects; the cumulative
number of brand owners and stores in market in regions as North China, Central China, Southern China and Sichuan, etc., reached 30
and 40 respectively. As for Smart Services, the Company optimized product structure, increased sales volume steadily, improved the
sales ratio of high-efficient products as TVs and displayers, and made its new application business develop rapidly. In addition, BOE
also promoted its project in progress steadily; for example, BOE Suzhou Industry Park Project was commenced successfully and
Chongqing Smart Manufacturing Factory realized mass production. Moreover, Smart Energy PV Project achieved stable and
high-efficient operation.
(3) Smart Healthcare Service
The Company defined business development strategy, focused on mobile healthcare products on the basis of Internet of health and
life data, provided services as healthcare guidance, disease prevention and precision medicine through integrating digital hospitals,
regenerative medicine and healthcare centers by virtue of life data, AI technology and professional medical team, and built an overall
and full-life-circle healthcare service ecosystem. As for mobile healthcare, the Company focused on microfluidics, biological
detection method and other technologies to independently research and develop biochips and family doctor equipment products,
which form an integrated business development framework together with ecological chain products and APP service platform. For
regenerative medicine, the Company completed establishing a system for heart diaphragm clinical research to promote animal
experiment and clinical research. The operation preparation for Hefei BOE Hospital was in progress, and the Company continuously
carried out on-line/off-line market promotion to improve its brand popularity; Chengdu BOE Hospital completed conceptual plan.
For healthcare centers, the Company persisted in optimizing client structure continuously, and realized remarkable effect in project
expansion. In addition, the Company also firmly promoted project planning for life science and technology industry base.
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BOE Technology Group Co., Ltd. Interim Report 2018 (Summary)
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last
Accounting Period
□ Applicable √ Not applicable
No such changes.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
√Applicable □ Not applicable
For the Reporting Period, the newly incorporated Beijing BOE Sensor Technology Co., Ltd., as well as Mianyang BOE
Optoelectronics Co., Ltd. and SES Imagotag SA, both obtained by the Company through business combinations not under common
control, were newly included into the Company’s consolidated financial statements.
Chairman of the Board (signature): Mr. Wang Dongsheng
Date of the Board’s approval of this Report: 24 August 2018
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