BOE TECHNOLOGY GROUP CO., LTD.,
THE FIRST QUARTERLY REPORT FOR YEAR 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior executives of BOE Technology Group
Co., Ltd. (hereinafter referred to as “the Company”) warrant that this report does not contain any false or misleading
statements or omit any material facts, and will take all responsibilities, individual and joint for the
authenticity, accuracy and completeness of the report.
1.2 The first quarterly financial report 2009 has not been audited by accounting firm.
1.3 Mr. Wang Dongsheng, Chairman of the Board of the Company, Mr. Chen Yanshun, the President of the
Company, Ms. Sun Yun, CFO, and Ms. Yang Xiaoping, person in charge of Planning Finance Department, hereby
declare that they guarantee the reality and completeness of the financial report enclosed in this quarterly
report.
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
As at 31 Mar. 2009
As at 31 Dec. 2008
Increase/decrease (%)
Total assets
14,506,483,175.00
13,941,120,322.00
4.06%
Owner’s equity attributable to parent company
5,528,585,367.00
5,936,222,532.00
-6.87%
Share capital
3,282,902,447.00
3,282,902,447.00
0.00%
Net assets per share attributable to owners of parent company
1.68
1.81
-7.18%
Jan.-Mar. 2009
Jan.-Mar. 2008
Increase/decrease (%)
Operating income
720,895,076.00
2,936,720,597.00
-75.45%
Net profit attributable to owners of parent company
-410,758,569.00
305,423,954.00
-234.49%
Net cash flow arising from operating activities
-147,403,907.00
758,765,411.00
-119.43%
Net cash flow per share arising from operating activities
-0.04
0.26
-115.38%
Basic earnings per share
-0.13
0.11
-218.18%
Diluted earnings per share
-0.13
0.11
-218.18%
Return on equity
-7.43%
6.00%
-13.43%
Return on equity after deducting non-recurring gains and losses
-7.51%
6.23%
-13.74%
Items of extraordinary gains and losses
Amount from the year-beginto the end of reporting period
Gains and losses from disposal of non-current assets
585,718.00
Non-rationed Government grants
3,686,283.00
Reversal of impairment provisions of receivable assessed on an individual basis
1,307,599.00
Other non-operating income and expense
224,297.00
Less: impact of the above items on tax
-16,540.00
Non-recurring gains and losses impacting on profit of minority shareholders
-1,368,637.00
Total
4,418,720.00
Notes to items of extraordinary gains and losses
Naught
2.2 Total number of shareholders at the end of report period and statement on shares held by the top ten
shareholders with shares not subject to trading moratorium
Unit: Share
Total number of shareholders at the end of report period
101,597
(including 61,930ones of A-share and 39667 ones of B-share)
Shares held by the top ten shareholders with shares not subject to trading moratorium
Full name of shareholders
Shares not subject to moratorium held at the period-end
Type of shares
BEIJING BOE INVESTMENT-DEVELOPMENT CO., LTD.
650,177,570
RMB ordinary share
BEIJING INDUSTRY DEVELOPMENT & INVESTMENT MANAGEMENT CO., LTD.
85,823,132
RMB ordinary share
BEIJING STATE-OWNED ASSETS MANAGEMENT CO., LTD.
83,690,185
RMB ordinary share
FIELDS PACIFIC LIMITED
79,075,678
Domestically listed foreign shares
SBCI FINANCE ASIA LTD A/C SBC HONG KONG
32,461,315
Domestically listed foreign shares
BOCI SECURITIES LIMITED
32,103,045
Domestically listed foreign shares
HUANG YING BIN
27,541,211
Domestically listed foreign shares
PERSHING LLC
12,258,959
Domestically listed foreign shares
SUN HUNG KAI INVESTMENT SERVICES LTD-CUSTOMERS A/C
11,563,643
Domestically listed foreign shares
ZHOU GUANG WU
8,364,300
RMB ordinary share
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial index and its reason
√Applicable □Inapplicable
1. Prepaid accounts increased 324.29% compared with that at the end of last year, mainly because of
prepayment for purchase of additional equipments of 4.5 generation production line project.
2. Construction in progress increased by 137.31% compared with that at the end of last year, mainly because
of 4.5 generation production line project construction.3. Short-term borrowings increased 121.54% compared with
that at the end of last year, mainly due to increase of additional borrowings;
4. Interest payable increased 170.38% compared with that at the end of last year, mainly because withdrawal
of interest of the Company increased caused by additional borrowing in this year.
5. Operating income decreased b y 75.45% year-on-year, which was mainly because influenced by global
financial crisis, price and market demand of TFT-LCD in this quarter decreased by a large margin year-on-year.
6. Operating cost decreased by 63.06% year-on-year, which was mainly because influenced by global financial
crisis, market demand of TFT-LCD in this quarter decreased year-on-year, and sales amount decreased.
7. Sales expenses decreased 59.62% year-on-year, which was mainly because influenced by global financial
crisis, market demand of TFT-LCD in this quarter decreased year-on-year, and expense of transportation and
technology commission decreased due to decrease of sales amount.
8. Administration expenses increased 103.15% year-on-year, which was mainly because influenced by global
financial crisis, market demand of TFT-LCD, enterprise activation was lower, and transferred depreciation
equipment that never use to production to this subject.
9. Loss from assets impairment increased 3839.56% year-on-year, which was mainly because price of TFT-LCD
in this quarter revived than that at the end of 2008, and switched back inventories depreciation provision
withdrawn.
10. Investment income decreased 132.61% year-on-year, which was mainly because the Company sold affiliated
companies in the same period of last year.
11. Non-operating income decreased 86.30% year-on-year, which was mainly because finance discount enjoyed
was mature at the period-end.
12. Income tax decreased 93.74% year-on-year, which was mainly because profit in this year decreased year-
on-year.
3.2 The progress of significant events and analysis and explanation on influence and solution
√Applicable □Inapplicable
1. Non-public offering of A shares: the project has been reviewed and approved by CSRC with conditions on 1
Apr. 2009. Assets liabilities of the Company will be improved after accomplishment of the project.
2. Hefei the Generation 6 TFT-LCD production line in: As for disclosing date of this report, the Company
has externally raised RMB 600 million, proportion of holding shares increased to 93.769%, and the project has
been formally started on 13 Apr. 2008.
3. The Gen 4.5 TFT-LCD Production Line in Chengdu, whose overall project has been finished in Feb. 2009,
now is in progress of equipment installation. It was planned to produce in trial in Jul. 2009, and will begin
batch production in Oct. 2009.
4. National Engineering Laboratory for TFT-LCD technology: On 21 Apr. 2008, the project started formally.
It is the first and the only domestic technology laboratory inapproved by the state, which played an important
role in enhancing technical innovation, meanwhile, reflected ability and advantage of self research and
development and innovation of the Company in domestic TFT-LCD;
5. Reorganization term of syndicated loan: Beijing BOE Optoelectronics Technology Co., Ltd, shareholding
subsidiary of the Company has signed relevant legal documents on term reorganization with banks, which played
an important role in overcoming difficulties and confronted financial crisis.
3.3 Implementation of commitments made by the Company, shareholders and actual controller
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the period
from the beginning of the year to the end of the next report period compared with the same period of the last
year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events needing explanation
3.5.1 Investment on securities
√Applicable □Inapplicable
Unit: RMB Yuan
Explanation on securities investment
Naught
3.5.2 Reception of investigations, communications and visits in the report period
Reception time
Reception site
Reception way
Reception object
Topics discussed and information provided
09 Jan. 2009
Meeting room of the Company
Field research
BOCInternational （china）Limited
BOHAI Industrial Investment Fund
12 Feb. 2009
Meeting room of the Company
Field research
Everbright Securities and Minsheng Securities
17 Feb. 2009
Meeting room of the Company
Field research
Guoxin Securities Co., Ltd.
Main content of discussion:
1.Operation of the Company, future development strategy;
2. status quo of the industry and the development trend;
3. matters on publishing shares non-publicly by
No.
Securities type
Securities code
Short form of securities
Initial investment amount
Number held (share)
Book value at the period-end
Proportion in total securities investments at the period-end (%)
Gains and losses in the report period
1
Stock
HK 0903
TPV Technology
1,078,440,560.00
24,360,191.00
50,921,081.65
100.00%
0.00
Other securities held at the period-end
0.00
-
0.00
0.00%
0.00
Gains and losses from securities sold in the report period
-
-
-
-
0.00
Total
1,078,440,560.00
-
50,921,081.65
100.00%
0.0018 Feb. 2009
Meeting room of the Company
Field research
Huabao Industrial Fund Management Ltd
13 Mar. 2009
Meeting room of the Company
Field research
Deutsche Securities
19 Mar. 2009
Meeting room of the Company
Field research
Citic Securities
27 Mar. 2009
Meeting room of the Company
Field research
Changjiang Secutities
the Company;
4. Chengdu Gen 4.5 production line in and Hefei Gen 6 production
Information provided: public information such as Annual Report 2007 and the throwaway of the Company.
3.5.3 Other significant events needing explanation
√Applicable □Inapplicable
It is explained the following content, including but not limited to:
(1) In the reporting period, the Company never offered fund to controlling shareholders or related parties,
nor provided external guarantee violating stated procedure;
(2) In the reporting period, shareholders whose shares held exceeded 30% has no plan on increase of shares;
(3) In the reporting period, there was no significant contract should be disclosed;
(4) Market price of main products of the Company began to pick up in a stable step by step since the year-
begin, and the Company’s operation was stable at the moment. However, there still exist uncertainties about
the price of main products and market situation in the 2nd quarter. The Company will perform the obligation to
disclose information in accordance with its real situation.
§4 Appendix
4.1 Balance sheet
Prepared by BOE Technology Group Co., Ltd Mar. 31, 2009 Unit: RMB Yuan
Closing balance
Opening balance
Items
Consolidation
Parent company
Consolidation
Parent company
Current Assets:
Monetary funds
4,100,971,349.00
739,132,559.00
3,903,740,704.00
572,867,082.00
Settlement reserve
Dismantle fund
Transaction financial asset
Notes receivable
191,595,441.00
1,233,200.00
305,340,503.00
3,583,603.00
Account receivable
534,513,350.00
38,983,661.00
485,918,608.00
34,063,202.00
Account paid in advance
197,155,338.00
57,692.00
46,467,616.00
948,730.00
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
6,192,252.00
1,009,163.00
6,561,758.00
438,965.00
Dividend receivable
8,204,147.00
8,204,147.00
Other account receivable
57,001,921.00
871,429,133.00
91,430,944.00
632,207,456.00Buying back the sale of financial assets
Inventories
489,215,697.00
4,457,713.00
472,233,966.00
4,789,090.00
Non-current assets due within 1 year
Other current assets
299,349,567.00
290,049,691.00
Total current assets
5,875,994,915.00
1,664,507,268.00
5,601,743,790.00
1,257,102,275.00
Non-current assets:
Loans and advance
Available for sale financial assets
50,921,082.00
50,921,082.00
53,707,522.00
53,707,522.00
Held to maturity investments
Long-term account receivable
Long-term equity investment
320,045,139.00
6,908,507,154.00
340,783,862.00
6,275,363,309.00
Investing property
172,104,915.00
78,536,779.00
174,553,402.00
79,259,202.00
Fixed assets
6,259,202,013.00
149,250,051.00
6,542,076,001.00
151,948,575.00
Construction in progress
1,057,108,117.00
24,095,464.00
445,452,403.00
21,543,069.00
Engineering material
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets
703,200,546.00
51,795,330.00
715,814,320.00
52,228,556.00
Development expense
Goodwill
47,364,310.00
47,364,310.00
Long-term deferred expenses
15,603,476.00
3,491,250.00
14,611,367.00
3,583,125.00
Deferred tax assets
4,938,662.00
5,013,345.00
Other non-current assets
Total of non-current assets
8,630,488,260.00
7,266,597,110.00
8,339,376,532.00
6,637,633,358.00
Total assets
14,506,483,175.00
8,931,104,378.00
13,941,120,322.00
7,894,735,633.00
Current liabilities:
Short-term borrowings
1,127,810,634.00
600,000,000.00
509,073,028.00
Borrowing from Central Bank
Deposits and sue to banks and other financial institutions
Call loan received
Transaction financial liabilities
Notes payable
141,594,047.00
106,000,000.00
Account payable
1,066,108,387.00
5,824,554.00
1,062,249,179.00
4,207,258.00
Account received in advance
196,470,531.00
40,164,933.00
225,371,127.00
41,183,980.00
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable
96,621,513.00
27,295,734.00
109,085,872.00
27,241,016.00
Tax payable
9,273,152.00
907,311.00
15,774,385.00
2,398,167.00
Interest payable
31,854,260.00
4,988,958.00
11,781,276.00
6,210,585.00
Dividend payable
7,093,998.00
6,453,790.00
8,093,845.00
6,453,790.00
Other account payable
138,410,843.00
42,147,121.00
129,185,287.00
32,696,258.00Reinsurance premiums payable
Insurance contract reserves
Money received for acting trading of securities
Money paid for acting underwriting of securities
Non-current liabilities due within 1 year
2,009,290,067.00
510,000,000.00
2,009,143,046.00
510,000,000.00
Other current liabilities
45,688,597.00
29,974,002.00
Total current liabilities
4,870,216,029.00
1,237,782,401.00
4,215,731,047.00
630,391,054.00
Non-current liabilities:
Long-term borrowings
3,312,012,581.00
245,000,000.00
2,934,127,561.00
45,000,000.00
Bonds payable
Long-term payables
Specific payables
Accrued liabilities
Deferred tax liabilities
Other non-current liabilities
72,398,997.00
284,114,200.00
72,460,091.00
49,553,200.00
Total non-current liabilities
3,384,411,578.00
529,114,200.00
3,006,587,652.00
94,553,200.00
Total liabilities
8,254,627,607.00
1,766,896,601.00
7,222,318,699.00
724,944,254.00
Owner’s equity (or shareholder’ equity)
Paid-up capital (or share capital)
3,282,902,447.00
3,282,902,447.00
3,282,902,447.00
3,282,902,447.00
Capital reserves
4,508,098,505.00
4,522,540,406.00
4,504,955,589.00
4,525,326,846.00
Less: Treasury stock
Surplus reserves
499,092,613.00
499,092,613.00
499,092,613.00
499,092,613.00
Provisions for general risks
Retained profits
-2,758,689,310.00
-1,140,327,689.00
-2,347,930,741.00
-1,137,530,527.00
Foreign exchange difference
-2,818,888.00
-2,797,376.00
Total owners' equity attributable to parent company
5,528,585,367.00
7,164,207,777.00
5,936,222,532.00
7,169,791,379.00
Minority interest
723,270,201.00
782,579,091.00
Total owner’s equity
6,251,855,568.00
7,164,207,777.00
6,718,801,623.00
7,169,791,379.00
Total liabilities and owner’s equity
14,506,483,175.00
8,931,104,378.00
13,941,120,322.00
7,894,735,633.00
4.2 Income Statement
Prepared by BOE Technology Group Co., Ltd Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period
Amount of last period
Items
Consolidation
Parent company
Consolidation
Parent company
I. Total sales
720,895,076.00
46,163,731.00
2,936,720,597.00
54,456,954.00
Including: Sales
720,895,076.00
46,163,731.00
2,936,720,597.00
54,456,954.00
Interest income
Premium income
Handling charges and commission income
II. Total cost of sales
1,226,041,034.00
36,637,981.00
2,604,137,449.00
70,255,258.00
Including: Cost of sales
864,438,099.00
19,701,541.00
2,340,069,636.00
22,408,227.00
Interests expenses
Handling charges and commission expensesCash surrender value
Net amount of claims
Net amount of withdrawn from the insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges
3,704,183.00
1,802,282.00
7,065,669.00
1,761,092.00
Sales expenses
21,607,257.00
169,403.00
53,506,650.00
790,914.00
Administrative expenses
346,168,324.00
21,728,219.00
170,400,163.00
39,702,699.00
Financial expenses
26,282,532.00
-6,657,393.00
34,013,184.00
5,475,745.00
Impairment loss
-36,159,362.00
-106,071.00
-917,853.00
116,581.00
Add: Gain/(loss) from change in fair value (“-” means loss)
Gain/(loss) from investment (“-” means loss)
-14,285,911.00
-11,856,155.00
43,814,249.00
43,814,249.00
Including: income form investment on affiliated enterprise and jointly enterprise
-14,285,911.00
-11,856,155.00
43,814,249.00
43,814,249.00
Gains and losses on exchange (“-” means loss)
III. Business profit (“-” means loss)
-519,431,869.00
-2,330,405.00
376,397,397.00
28,015,945.00
Add: non-operation income
5,096,184.00
33,342.00
37,201,977.00
606,424.00
Less: non-business expense
599,886.00
500,100.00
449,227.00
93,645.00
Including: loss from non-current asset disposal
18,520.00
40,766.00
10,000.00
IV. Total profit (“-” means loss)
-514,935,571.00
-2,797,163.00
413,150,147.00
28,528,724.00
Less: Income tax expense
2,078,492.00
33,185,936.00
V. Net profit (“-” means loss)
-517,014,063.00
-2,797,163.00
379,964,211.00
28,528,724.00
Attributable to parent company
-410,758,569.00
-2,797,163.00
305,423,954.00
28,528,724.00
Minority interest
-106,255,494.00
74,540,258.00
VI. Earnings per share
(I) Basic earnings per share
-0.13
0.00
0.11
0.01
(II) Diluted earnings per share
-0.13
0.00
0.11
0.01
4.3 Cash Flow Statement
Prepared by BOE Technology Group Co., Ltd Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period
Amount of last period
Items
Consolidation
Parent company
Consolidation
Parent company
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service
768,952,605.00
14,002,487.00
3,266,755,773.00
21,415,661.00
Net increase of deposits from customers and dues from banks
Net increase of loans from the central bank
Net increase of funds borrowed from other financial institutions
Cash received from premium of original insurancecontracts
Net cash received from reinsurance business
Net increase of savings of policy holders and investment fund
Net increase of disposal of tradable financial assets
Cash received from interest, handling charges and commissions
Net increase of borrowed inter-bank funds
Net increase of buy-back funds
Tax refunds received
1,301,984.00
11,298,726.00
Other cash received relating to operating activities
106,203,143.00
114,182,119.00
70,414,558.00
20,850,812.00
Subtotal of cash inflows from operating activities
876,457,732.00
128,184,606.00
3,348,469,057.00
42,266,473.00
Cash paid for goods and services
766,108,737.00
6,724,724.00
2,183,982,454.00
7,074,770.00
Net increase of customer lending and advance
Net increase of funds deposited in the central bank and amount due from banks
Cash for paying claims of the original insurance contract
Cash for paying interest, handling charges and commissions
Cash for paying policy dividends
Cash paid to and for employees
152,965,253.00
13,336,368.00
216,572,765.00
22,900,755.00
Various taxes paid
21,081,143.00
6,387,459.00
88,277,707.00
11,940,072.00
Payment of cash relating to operating activities
83,706,506.00
23,348,564.00
100,870,720.00
24,015,885.00
Subtotal of cash outflows from operating activities
1,023,861,639.00
49,797,115.00
2,589,703,646.00
65,931,482.00
Net cash flows from operating activities
-147,403,907.00
78,387,491.00
758,765,411.00
-23,665,009.00
II. Cash Flows from investment activities:
Cash received from return of investments
102,941.00
102,941.00
Cash received from investment income
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
1,587,188.00
50,000.00
Cash inflows from merge of subsidiary companies
95,735,577.00
Net cash received from disposal of subsidiary or other operating business units
Withdrawal of restricted deposit in financial institution
138,855,124.00
Other cash received relating to investment activities
12,149,756.00
9,087,289.00
343,035.00
16,916,339.00
Subtotal of cash inflows from investment activities
107,885,333.00
9,087,289.00
140,888,288.00
17,069,280.00
Cash paid to acquire fixed assets, intangible assets and other long-term assets
705,476,913.00
2,131,029.00
151,794,361.00
2,003,026.00
Increase of restricted deposit in financial institution
833,662,022.00
301,980.00
Cash paid to investment
600,000,000.00Net increase of pledged loans
Net cash paid by subsidiaries and other operating business units
Payment of cash relating to other investment activities
277,395,572.00
78,955,236.00
578,947,981.00
Subtotal of cash outflows from investment activities
1,539,138,935.00
879,828,581.00
230,749,597.00
580,951,007.00
Net cash flows from investment activities
-1,431,253,602.00
-870,741,292.00
-89,861,309.00
-563,881,727.00
III. Cash Flows from financing activities:
Cash received from absorbing investment
Including: Cash received from increase in minority interest
Cash received from borrowings
1,382,403,219.00
964,400,000.00
359,979,101.00
196,368,000.00
Cash received from issuance of bonds
Other cash received relating to financing activities
264,958.00
Subtotal of cash inflows from financing activities
1,382,403,219.00
964,400,000.00
360,244,059.00
196,368,000.00
Cash repayments of amounts borrowed
400,268,706.00
859,482,591.00
Cash paid interest expenses and distribution of dividends or profit
34,719,563.00
6,037,754.00
84,511,538.00
6,562,496.00
Including: dividends or profit paid to minority interest
Other cash payments relating to financing activities
503,162.00
36,860.00
5,212,527.00
1,929,119.00
Sub-total of cash outflows from financing activities
435,491,431.00
6,074,614.00
949,206,656.00
8,491,615.00
Net cash flow from financing activities
946,911,788.00
958,325,386.00
-588,962,597.00
187,876,385.00
IV. Effect of foreign exchange rate changes on cash and cash equivalents
-4,685,656.00
-8,088.00
-11,540,807.00
-776,703.00
V. Increase in cash and cash equivalents
-636,431,377.00
165,963,497.00
68,400,698.00
-400,447,054.00
Add: Cash and cash equivalents at year-begin
3,528,597,814.00
572,867,082.00
1,452,160,200.00
928,184,272.00
VI. Cash and cash equivalents at the period-end
2,892,166,437.00
738,830,579.00
1,520,560,898.00
527,737,218.00
4.4 Auditors’ Report
Auditor’ opinion: un-audited
Chairman of the Board: Wang Dongsheng (signature)
Board of Directors of
BOE Technology Group Co., Ltd.
Apr. 28, 2009
