BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
Stock Code: 200725 Stock Name: BOE-B Announcement No. 2019-025
BOE TECHNOLOGY GROUP CO., LTD.
FIRST QUARTER REPORT 2019 (SUMMARY)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred
to as 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.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
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.
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
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 Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 26,454,258,554.00 21,566,813,037.00 22.66%
Net profit attributable to the listed company’s shareholders
1,051,781,919.00 2,018,692,554.00 -47.90%
(RMB)
Net profit attributable to the listed company’s shareholders
352,304,432.00 1,238,599,228.00 -71.56%
before exceptional items (RMB)
Net cash generated from/used in operating activities (RMB) 6,164,241,385.00 7,198,088,816.00 -14.36%
Basic earnings per share (RMB/share) 0.030 0.058 -48.28%
Diluted earnings per share (RMB/share) 0.030 0.058 -48.28%
Weighted average return on equity (%) 1.22% 2.35% -1.13%
Item 31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 308,295,146,086.00 304,028,491,385.00 1.40%
Equity attributable to the listed company’s shareholders
87,077,785,020.00 85,856,748,703.00 1.42%
(RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 265,209.00 N/A
Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly approved
0.00 N/A
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 amounts as per 718,192,876.00 N/A
government’s uniform standards )
Capital occupation charges on non-financial enterprises that are charged to current gains and
0.00 N/A
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 value of identifiable 0.00 N/A
net assets of investees when making investments
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
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 unfair
0.00 N/A
prices
Current gains and losses on subsidiaries acquired through business mergers under same control
0.00 N/A
from period-beginning to merger dates, net
Gains and losses on contingencies that do not arise in the Company’s ordinary course of
0.00 N/A
business
Gain or loss on fair-value changes in trading financial assets and liabilities and derivative
financial assets and liabilities & investment income from disposal of trading financial assets
and liabilities and derivative financial assets and liabilities, and other creditors’ investment 45,166,494.00 N/A
(exclusive of effective portion of hedges that arise in the Company’s ordinary course of
business)
Reversed portion of impairment allowance for accounts receivable and contract assets which
0.00 N/A
are tested 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 and
0.00 N/A
regulations on current gains and losses
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than above 31,130,674.00 N/A
Other gains and losses that meet definition of nonrecurring gain/loss 0.00 N/A
Less: Income tax effects 54,217,884.00 N/A
Non-controlling interests effects (net of tax) 41,059,882.00 N/A
Total 699,477,487.00 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders at
1,612,810 (including 1,573,114 A-shareholders and 39,696 B-shareholders)
the period-end
Top 10 shareholders
Restricted Shares in pledge
Shareholding
Name of shareholder Nature of shareholder Total shares held shares or frozen
percentage
held Status Shares
Beijing State-owned Capital
State-owned legal person 11.68% 4,063,333,333 0 N/A 0
Operation and Management Center
Chongqing Ezcapital Opto-electronic
State-owned legal person 7.62% 2,652,813,041 0 N/A 0
Industry Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. State-owned legal person 7.21% 2,510,142,953 0 N/A 0
Beijing Yizhuang Investment
State-owned legal person 3.57% 1,241,423,641 0 N/A 0
Holdings Co., Ltd
Beijing BOE Investment &
State-owned legal person 2.36% 822,092,180 0 N/A 0
Development Co., Ltd.
Hong Kong Securities Clearing
Foreign legal person 1.13% 392,805,995 0 N/A 0
Company Ltd.
Beijing Electronics Holdings Co., Ltd. State-owned legal person 0.79% 273,735,583 0 N/A 0
Central Huijin Assets Management
State-owned legal person 0.71% 248,305,300 0 N/A 0
Co., Ltd
National Social Security Fund
State-owned legal person 0.52% 180,722,899 0 N/A 0
Portfolio 108
China Securities Finance Corporation
State-owned legal person 0.38% 132,480,249 0 N/A 0
Limited
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
Beijing State-owned Capital
4,063,333,333 RMB ordinary share 4,063,333,333
Operation and Management Center
Chongqing Ezcapital Opto-electronic
2,652,813,041 RMB ordinary share 2,652,813,041
Industry Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. 2,510,142,953 RMB ordinary share 2,510,142,953
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
Beijing Yizhuang Investment
1,241,423,641 RMB ordinary share 1,241,423,641
Holdings Co., Ltd
Beijing BOE Investment &
822,092,180 RMB ordinary share 822,092,180
Development Co., Ltd.
Hong Kong Securities Clearing
392,805,995 RMB ordinary share 392,805,995
Company Ltd.
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary share 273,735,583
Central Huijin Assets Management
248,305,300 RMB ordinary share 248,305,300
Co., Ltd
National Social Security Fund
180,722,899 RMB ordinary share 180,722,899
Portfolio 108
China Securities Finance Corporation
132,480,249 RMB ordinary share 132,480,249
Limited
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 Ezcapital Opto-electronic Industry 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.,
Related or acting-in-concert parties Ltd. when executing the voting rights of the shareholders.
among the 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.
Top 10 ordinary shareholders
involved in securities margin trading None
(if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
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 2019 (Summary)
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. The current portion of non-current liabilities as at 31 March 2019 rose 35% compared to 31 December 2018, primarily driven by
the transfer of the current portion of long-term borrowings into this item in Q 1 2019.
2. Bonds payable as at 31 March 2019 declined 94% compared to 31 December 2018, primarily driven by the advance cashing of
corporate bonds in Q 1 2019.
3. R&D expense went up 88% during Q 1 2019 compared to Q1 2018, primarily driven by a higher amount of R&D investment in
Q1 2019.
4. Finance costs went up 58% during Q 1 2019 compared to Q1 2018, primarily driven by a smaller exchange loss and a higher
interest expense resulted from the operation of new projects in Q1 2019.
5. Asset impairment loss went down 42% during Q 1 2019 compared to Q1 2018, primarily driven by a decrease in the inventory
valuation allowance recorded in Q1 2019 according to the lower of cost and net realizable value.
6. Return on investment went down 84% during Q 1 2019 compared to Q1 2018, primarily driven by a decrease in mature wealth
management products in Q1 2019.
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court
against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv Mobile
hereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co., Ltd. and Jia Yueting, with the total
amount of claims being about US$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance and
Civil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdiction
objection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's
Court for verdict on jurisdiction objection. The Supreme People's Court made the final verdict and rejected the appeal of Letv mobile,
upholding the original verdict. On 8 March 2019, this case was heard for the first time by Beijing Municipal Higher People’s Court,
waiting for the notice or judgment from the court for the next step. For receivables corresponding to aforementioned amount of
claims, the Company has counted provision for bad debts as per regulations in accounting standard accordingly; therefore, it has
uncertain influences on the Company.
2. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22
March 2016 reached 3 full years by 21 March 2019. According to regulations, the interest should be paid once per year during the
interest-bearing period. According to the agreed put provisions from Prospectus of the Corporate Bonds (Phase I) of BOE
Technology Group Co., Ltd. Issued to Public Qualified Investors in 2016, the Company published The First Reminder of No
Adjustments to Coupon Rate of Corporate Bonds “16BOE01” and Implementation Measures for Put-backs by Investors
(Announcement No.: 2019-001), The Second Reminder of No Adjustments to Coupon Rate of Corporate Bonds “16BOE01” and
Implementation Measures for Put-backs by Investors (Announcement No.: 2019-003), and The Third Reminder of No Adjustments to
Coupon Rate of Corporate Bonds “16BOE01” and Implementation Measures for Put-backs by Investors (Announcement No.:
2019-004) on 31 January 2019, 1 February 2019, and 12 February 2019 respectively. Investors can choose to sell all their holding
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
“16BOE01” or part of it back to the Company within the registered period of put-backs with the price of RMB100/piece (excluding
interests). In accordance with the data provided by Shenzhen Branch of China Securities Depository and Cleaning Corporation
Limited, the number of the put-backs of “16BOE01” was 96,705,976, and the price was RMB9,975,221,424.40 (including interests),
and the remaining number for trusteeship was 3,294,024. The Company issued Announcement on Payment “16BOE01” Interest 2019
(Announcement No.: 2019-009) on 14 March 2019, in which the interest should be paid as per the standard of RMB31.5
(tax-inclusive) for every 10 bonds. 21 March 2019 was the payment date for capital and interests of this put-back declaration, and the
Company has paid principal and the current interests to the bondholders of “16BOE01” declared effectively for put-back. The
Company convened the 1st Meeting of Bondholders in 2019 for 2016 Corporate Bonds on 28 March 2019, which reviewed and
approved the Proposal on Payment in Advance to 2016 Corporate Bonds of BOE Technology Group Co., Ltd, and the Company
disclosed Announcement on Resolutions Made at the 1st Meeting of Bondholders in 2019 for 2016 Corporate Bonds (Announcement
No.: 2019-022) on 29 March 2019. The Company paid the interests of “16BOE01” bonds from 21 March 2019 to 2 April 2019 and
its principal on 3 April 2019. The Bonds was delisted on 3 April 2019, and the record date of payment for principal and interests was
2 April 2019. The trading of “16BOE01” was terminated on the trading system of Shenzhen Stock Exchange on 3 April 2019.
3. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks (I)
(Announcement No.: 2019-007) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks
(II) (Announcement No.: 2019-008) on 6 March 2019; shareholders of the Company as Hefei Jianxiang Investment Co., Ltd. and
Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. planned to reduce no more than 1.00% of general capital of the
Company by means of centralized competitive bidding within 3 months after 15 working days since the issuance of each
Announcement.
Index to the related
Summary of the significant event Disclosure date
announcement
Announcement on Project of Investing and Establishing Beijing BOE Life Science and
26 March 2019 www.cninfo.com.cn
Technology Industrial Base (Phase I)
Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation of
why:
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
V Securities Investments
√ Applicable □ Not applicable
Gain/loss
of
changes Accumulative Purchased Sold in
Variety Accounting Gain/loss
Symbol of Name of Initial Beginning in fair changes in fair in the thein Accounting Capital
of measurement Ending carrying value
security security investment cost carrying value value in value recorded into Reporting Reporting Reporting title source
security model Period
the equities Period Period
Reporting
Period
Domestic Other
and TPV Fair value equity Self-owned
HK00903 134,658,158.00 25,613,279.00 0.00 9,987,282.00 0.00 0.00 0.00 38,030,589.00
overseas Technology method instruments funds
stock investment
Domestic Other
and Electronic Fair value equity Self-owned
SH600658 90,160,428.00 83,995,943.00 0.00 43,781,546.00 0.00 0.00 0.00 90,457,170.00
overseas Zone method instruments funds
stock investment
Domestic Other
and Bank of Fair value equity Self-owned
HK01963 120,084,375.00 98,705,065.00 0.00 -11,584,716.00 0.00 0.00 0.00 108,499,659.00
overseas Chongqing method instruments funds
stock investment
Domestic Other
and China Fair value equity Self-owned
HK06066 70,041,364.00 44,412,575.00 0.00 -1,855,538.00 0.00 0.00 0.00 68,185,826.00
overseas Securities method instruments funds
stock investment
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BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
Domestic Other
New
and Fair value equity Self-owned
HK01518 Century 140,848,850.00 125,909,255.00 0.00 -36,922,892.00 0.00 0.00 0.00 103,925,958.00
overseas method instruments funds
Healthcare
stock investment
Other securities investments held
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
at the period-end
Total 555,793,175.00 -- 378,636,117.00 0.00 3,405,682.00 0.00 0.00 0.00 409,099,202.00 -- --
Disclosure date of the
announcement about the board’s
N/A
consent for the securities
investment
Disclosure date of the
announcement about the general
N/A
meeting’s consent for the
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. First Quarter Report 2019 (Summary)
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Date Way of communication Type of communication party Index to main information communicated
17 January 2019 One-on-one meeting Institution
Main contents:
21 January 2019 One-on-one meeting Institution 1. the main situations of the industry
22 January 2019 One-on-one meeting Institution 2. main operating information of the Company
15 February 2019 One-on-one meeting Institution 3. innovations of technology and products
25 February 2019 One-on-one meeting Institution 4. future strategy layout
For details, see www.cninfo.com.cn
26 March 2019 One-on-one meeting Institution
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its 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: 29 April 2019
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