BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Stock Code: 200725 Stock Name: BOE-B Announcement No. 2020-066 BOE TECHNOLOGY GROUP CO., LTD. THIRD QUARTERLY REPORT 2020 (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. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, 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. 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. 1 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Part II Key Corporate Information I Key Consolidated Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes √ No Item 30 September 2020 31 December 2019 Change (%) Total assets (RMB) 363,168,000,656.00 340,412,203,308.00 6.68% Equity attributable to the listed 101,109,228,915.00 95,058,129,055.00 6.37% company’s shareholders (RMB) Item Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%) Operating revenue (RMB) 40,820,898,656.00 33.04% 101,687,972,162.00 18.63% Net profit attributable to the listed 1,340,387,777.00 629.30% 2,475,838,102.00 33.67% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before 1,064,128,213.00 - 887,799,628.00 - exceptional items (RMB) Net cash generated from/used in 13,751,838,874.00 178.83% 23,468,514,408.00 42.00% operating activities (RMB) Basic earnings per share (RMB/share) 0.035 600.00% 0.061 15.09% Diluted earnings per share (RMB/share) 0.035 600.00% 0.061 15.09% Weighted average return on equity (%) 1.37% 1.16% 2.42% 0.28% Exceptional gains and losses: √ Applicable □ Not applicable Unit: RMB Item Q1-Q3 2020 Note Gain or loss on disposal of non-current assets (inclusive of impairment -3,937,719.00 N/A allowance write-offs) Tax rebates, reductions and exemptions with ultra vires approval or in lack of 0.00 N/A duly approved document Government subsidies charged to current profit and loss (exclusive of government subsidies given in the Company’s ordinary course of business at 1,855,998,083.00 N/A fixed quotas or amounts as per government’s uniform standards ) Capital occupation charges on non-financial enterprises that are charged to 0.00 N/A current gains and losses Income equal to the amount by which investment costs for the Company to 0.00 N/A 2 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair 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 0.00 N/A entities 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 0.00 N/A distinctly unfair prices Current gains and losses on subsidiaries acquired through business mergers 0.00 N/A under same control from period-beginning to merger dates, net Gains and losses on contingencies that do not arise in the Company’s ordinary 0.00 N/A course of business Gain or loss on fair-value changes in held-for-trading financial assets and liabilities and derivative financial assets and liabilities & investment income from disposal of held-for-trading financial assets and liabilities and derivative 41,769,702.00 N/A financial assets and liabilities, and other debt investments (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 7,805,828.00 N/A assets which 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 0.00 N/A subsequent measurement is carried out using fair value method Effects of all adjustments required by taxation, accounting and other applicable 0.00 N/A laws 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 55,534,652.00 N/A Other gains and losses that meet definition of nonrecurring gain/loss 0.00 N/A Less: Income tax effects 123,536,748.00 N/A Non-controlling interests effects (net of tax) 245,595,324.00 N/A Total 1,588,038,474.00 -- 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 in the Reporting Period. 3 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the Reporting Period 1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders Unit: share Number of ordinary shareholders 1,207,757 (including 1,168,162 A-shareholders and 39,595 B-shareholders) Top 10 shareholders Shares in pledge or Nature of Shareholding Restricted Name of shareholder Total shares held frozen shareholder percentage shares Status Shares Beijing State-owned Capital Operation State-owned 11.68% 4,063,333,333 0 N/A 0 and Management Center corporation Hong Kong Securities Clearing Foreign 5.21% 1,812,788,406 0 N/A 0 Company Ltd. corporation State-owned Hefei Jianxiang Investment Co., Ltd. 3.10% 1,078,869,310 0 N/A 0 corporation Chongqing Ezcapital Opto-electronic State-owned 2.92% 1,014,888,138 0 N/A 0 Industry Investment Co., Ltd. corporation Beijing BOE Investment & State-owned 2.36% 822,092,180 0 N/A 0 Development Co., Ltd. corporation State-owned Hefei Jianxin Investment Co., Ltd. 2.30% 800,000,000 0 N/A 0 corporation Beijing Yizhuang Investment Holdings State-owned 1.46% 507,008,046 0 N/A 0 Co., Ltd corporation Generali China-China Merchants Bank-Generali Assets-Qihang No. 1 Other 0.94% 325,728,500 0 N/A 0 Asset Management Products Generali China-China Merchants Bank-Generali Assets-Chengping Other 0.88% 305,643,700 0 N/A 0 No. 1 Asset Management Products China Merchants Bank Co., Ltd.- Galaxy Innovation Growth Hybrid Other 0.87% 303,999,829 0 N/A 0 Securities Investment Fund Top 10 unrestricted shareholders Unrestricted ordinary shares Shares by class Name of shareholder held Class Shares Beijing State-owned Capital Operation and 4,063,333,333 RMB-denominated ordinary 4,063,333,333 4 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Management Center share RMB-denominated ordinary Hong Kong Securities Clearing Company Ltd. 1,812,788,406 1,812,788,406 share RMB-denominated ordinary Hefei Jianxiang Investment Co., Ltd. 1,078,869,310 1,078,869,310 share Chongqing Ezcapital Opto-electronic Industry RMB-denominated ordinary 1,014,888,138 1,014,888,138 Investment Co., Ltd. share RMB-denominated ordinary Beijing BOE Investment & Development Co., Ltd. 822,092,180 822,092,180 share RMB-denominated ordinary Hefei Jianxin Investment Co., Ltd. 800,000,000 800,000,000 share RMB-denominated ordinary Beijing Yizhuang Investment Holdings Co., Ltd 507,008,046 507,008,046 share Generali China-China Merchants Bank-Generali RMB-denominated ordinary 325,728,500 325,728,500 Assets-Qihang No. 1 Asset Management Products share Generali China-China Merchants Bank-Generali RMB-denominated ordinary Assets-Chengping No. 1 Asset Management 305,643,700 305,643,700 share Products China Merchants Bank Co., Ltd.-Galaxy Innovation RMB-denominated ordinary 303,999,829 303,999,829 Growth Hybrid Securities Investment Fund share 1. 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, Related or acting-in-concert parties among agreed to maintain all of the shares held by them respectively unanimous shareholders above with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. The Company’s shareholder Beijing Yizhuang Investment Holdings Co., Ltd. Top 10 ordinary shareholders involved in securities decreased its shareholding in the Company of 46,944,800 shares for involved margin trading (if any) in refinancing business. 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. □ Yes √ No No such cases in the Reporting Period. 2. Number of Preference Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable 5 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Part III Significant Events I Changes in Key Financial Statement Line Items and Explanation of why √ Applicable □ Not applicable 1. Accounts receivable as at 30 September 2020 rose 42% compared to 31 December 2019, primarily driven by an increase in amounts due from customers with expanding operating revenue in the Reporting Period. 2. Inventories as at 30 September 2020 rose 31% compared to 31 December 2019, primarily driven by expanding operating revenue and the mass production in respect of new project in the Reporting Period. 3. Fixed assets as at 30 September 2020 rose 33% compared to 31 December 2019, primarily driven by the transfer of new construction to fixed assets in the Reporting Period. 4. Construction in progress as at 30 September 2020 declined 38% compared to 31 December 2019, primarily driven by the transfer of new construction to fixed assets in the Reporting Period. 5. The current portion of non-current liabilities as at 30 September 2020 rose 32% compared to 31 December 2019, primarily driven by the transfer of long-term borrowings to this item in the Reporting Period. 6. Administrative expense rose 30% during Q1-Q3 2020 compared to Q1-Q3 2019, primarily driven by expanding operating revenue in the Reporting Period. 7. Finance costs rose 40% during Q1-Q3 2020 compared to Q1-Q3 2019, primarily driven by Q1-Q3 2019 seeing the repayment of convertible debt by the Company. 8. Return on investment rose 100% during Q1-Q3 2020 compared to Q1-Q3 2019, primarily driven by an increase in the Company’s share of profit of associates in the Reporting Period. 9. Asset impairment loss rose 51% during Q1-Q3 2020 compared to Q1-Q3 2019, primarily driven by an increase in inventory valuation allowances, which were made at the lower of cost and net realizable value. 10. Net cash generated from operating activities rose 42% during Q1-Q3 2020 compared to Q1-Q3 2019, primarily driven by an increase in operating profit as a result of a bigger business size and an increase in tax and levy rebates. II Progress, Influence and Solutions in respect of Significant Events √ Applicable □ Not applicable 1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its Public Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval from CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more than RMB30 billion to qualified investors. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue) (“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October 2019, the issuing scale of RMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue) (epidemic prevention and control bonds) (“20BOEY1” for short; Code: 149046) in 2020 with the issue term from 27 February 2020 to 28 February 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (the second issue) (epidemic prevention and control bonds) (“20BOEY2” for short; Code: 149065) in 2020 with the issue term from 18 March 2020 to 19 March 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.54%. The Company 6 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) publicly issued the renewable corporate bonds (to qualified investors) (the third issue) (epidemic prevention and control bonds) (“20BOEY3” for short; Code: 149108) in 2020 with the issue term from 24 April 2020 to 27 April 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.50%. 29 October 2020 represented the one-year mark for the renewable corporate bonds (to qualified investors) (the first issue) publicly issued by the Company in 2019 with the issue term from 28 October 2019 to 29 October 2019. According to the relevant rules, interest is payable annually during the interest period. On 22 October 2020, the Company disclosed the Announcement No. 2020-065 on the Payment of Interest for “19BOEY1” for 2020 with RMB40.00 (tax inclusive)/10 bonds. 2. The Company’s wholly-owned subsidiary BOE Technology (HK) Limited filed a lawsuit on the sales contract dispute to the superior people’s court in Beijing, and the defendants included 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 Jia Yueting with the claimed amount of USD41.84 million in total. However, Beijing Municipal Superior People’s Court respectively issued the Notice of Acceptance and the Civil Ruling Paper on Property Preservation on July 6, 2017 and July 31, 2017. LETV Mobile ever put forward the jurisdiction objection to Beijing Municipal Superior People’s Court, which was rejected, and then launched a lawsuit on the judgment of the jurisdiction objection to the Supreme People’s Court. Finally, the Supreme People’s Court made the final ruling, rejected the appeal of LETV Mobile and affirmed the original judgment. On 8 March 2019, the first hearing was held in Beijing Municipal Superior People’s Court. On 19 February 2020, Beijing Municipal Superior People’s Court issued the first instance judgment: (1) The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK) Limited) the owed principal USD36,940,476.77 and the resulting interests (regarding the principal USD12,871,274.5 as the interest basis from 8 September 2016 to 1 March 2017, USD12,144,001.77 from 2 March 2017 to the actual payment day, USD16,172,935 from October 13, 2016 to the actual payment day, USD8,488,690 from November 10, 2016 to the actual payment day, and US134,850 from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days)), as well as the liquidated damages (regarding the principal USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71 from 31 May 2017 to 1 July 2017, USD2,052,248.71 from 30 June 2017 to 1 July 2017, and USD36,940,476.77 from 2 July 2017 to the actual payment day; the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after the judgment took effect; (2) The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. Defined in the judgment (Item I); (3) After the Defendant LETV Holdings (Beijing) Co., Ltd. burdens the joint and several guarantee related to Item II, LETV Holdings (Beijing) Co., Ltd. shall have the right to claim compensation from LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.; (4) The defendant(LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK) Limited) the owed principal USD2,459,090.91 and the resulting interests (regarding the principal USD2,459,090.91 as the interest basis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period as the standard; USD2,459,090.91 from August 20, 2019 to the actual payment day with the quoted interest rate of the loan market issued by the national inter-bank offer center as the standard; the year shall have 365 days) under the Purchase Order with the goods payment USD2.75 million; (5) Other claims of the plaintiff (BOE Technology (HK) Limited) shall be rejected. If the defendant LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. fails to fulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayed period according to Article 253 of Civil Procedure Law of the People’s Republic of China. The litigation fee was RMB1,465,371.63, of which, RMB5,371.63 shall be paid by the plaintiff BOE Technology (HK) Limited (already paid), and RMB1.46 million shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect); the preservation fee was RMB5000, 7 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) which shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect). On 17 March 2020, BOE Technology (HK) Limited received the petition for appeal submitted by LETV Holdings (Beijing) Co., Ltd. to the court. LETV Holdings (Beijing) Co., Ltd. failed to pay the fee for the appeal it had instituted. On 8 July 2020, the Supreme People’s Court ruled that the appellant LETV Holdings (Beijing) Co., Ltd. was deemed to have withdrawn its appeal and that the first-instance judgment take into effect upon its arrival to the appellant. BOE Technology (HK) Limited has filed an Application for Enforcement to Beijing Higher People’s Court, and the court has accepted the application for further handling. The Company has calculated corresponding bad-debt provision for the account receivables equaling the above-mentioned claimed amount according to the accounting standards, which has uncertain influence on the Company. 3. On 29 August 2020, the Company disclosed the Announcement No. 2020-047 on the Resolutions of the 15th Meeting of the 9th Board of Directors, the Plan for the Grant of Share Options and Restricted Shares for 2020 and other relevant announcements. As such, the Company intended to carry out an equity incentive plan, which would comprise a share option incentive and a restricted share incentive. The shares needed would be sourced from RMB-denominated ordinary shares (A-shares) of the Company repurchased from the secondary market. The total shares under the plan would not exceed 981,150,000 shares, which included 639,900,000 share options and 341,250,000 restricted shares, together representing around 2.82% of the Company’s total share capital of 34,798,398,763 shares at the time when the draft of the equity incentive plan was disclosed in an announcement. The share option and restricted share incentive plan of 2020 is still subject to approval of the State-Owned Assets Supervision and Administration Commission of People’s Government of Beijing Municipality and of the Company’s general meeting. Summary of the significant event Date of disclosure Index to disclosure Announcement on the Acquisition of a 16.67% Interest in BEHC Industrial 24 July 2020 www.cninfo.com.cn Investment from NAURA & the Related-Party Transaction Announcement on the Intension to Acquire Interests in Nanjing CEC Panda FPD 24 September 2020 www.cninfo.com.cn Technology Co., Ltd. and Chengdu CEC Panda Display Technology Co., Ltd. Progress of any share repurchase: √ Applicable □ Not applicable Following the approval of the Proposal on the Repurchase of Certain Public Shares at the 15th Meeting of the 9th Board of Directors, the Company disclosed the Announcement No. 2020-049 on the Plan for the Repurchase of Certain Public Shares dated 29 August 2020. The Company carried out the first repurchase on 2 September 2020 and disclosed the Announcement No. 2020-056 on the First Repurchase of Certain Public Shares dated 3 September 2020. On 4 September 2020, the Company disclosed the Announcement No. 2020-057 on Progress of the Repurchase of Certain Public Shares and the Announcement No. 2020-058 on the Completion of the Share Repurchase Plan & the Repurchase Results. As such, as of 3 September 2020, the Company repurchased, through its securities account for repurchase and by way of centralized bidding, a total of 349,999,933 A-shares, accounting for approximately 1.03% of the Company’s total A-shares and approximately 1.01% of the Company’s total shares. With the highest trading price being RMB5.79/share and the lowest being RMB5.54/share, this repurchase cost a total of RMB1,998,774,693.72 (including commissions and other fixed fees). As such, the number of shares repurchased reached the upper limit of the repurchase plan, marking the completion of the implementation of the plan. Progress of any reduction of the repurchased shares through centralized bidding: □ Applicable √ Not applicable 8 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) 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 Date of Type of Term of Commitment Promisor Details of commitment commitment Fulfillment commitment commitment making Commitments made in share - - - - - - reform Commitments made in acquisition documents or - - - - - - shareholding alteration documents Commitments made in time - - - - - - of asset restructuring Commitment made in IPO - - - - - - or refinancing Commitment made in stock - - - - - - ownership incentive According to the Announcement on the Commitment of Part of Directors, Supervisors and Senior During the term Managers Not to Reduce Shareholding of the Company disclosed on 22 February 2020 as director, Part of (Announcement No.: 2020-001), the Company’s directors, supervisors and senior managers, based on supervisor or directors, their confidence in the Company’s future development and their recognition of the corporate value, senior manager, Other commitments made to supervisors Other 21 February promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage and in six months Ongoing minority shareholders and senior commitment 2020 specific shares, not to authorize others to execute their voting right by means of any agreement, trust or after the managers of other arrangements and not to require the Company to repurchase any specific shares during the terms expiration of the the Company of office and within 6 months after their tenures expire so as to promote the Company’s continuous, term (the term stable and healthy development and maintain the rights and interests of the Company and all determined when 9 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) shareholders. For any newly-added shares derived from the assignment of rights and interests including taking office). the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the commitment period expires. Fulfill on time or not Yes Specific reasons for failing to fulfill commitments on None time and plans for next step (if any) IV Financial Investments 1. Securities Investments √ Applicable □ Not applicable Unit: RMB Gain/loss on Cumulative Purchased Accounting Opening Gain/loss in Closing Type of Code of Name of Initial fair-value fair-value in the Sold in the Accounting Funding measurement carrying the current carrying securities securities securities investment cost changes in the changes through current current period title source method amount period amount current period equity period Other equity Domestic and Electronic Fair value SH600658 90,160,428.00 72,585,692.00 0.00 -15,375,169.00 0.00 0.00 1,842,137.00 74,785,259.00 instrument Self-funded overseas stock Zone method investment Other equity Domestic and Bank of Fair value HK01963 120,084,375.00 105,407,103.00 0.00 -31,306,873.00 0.00 0.00 5,877,804.00 88,777,502.00 instrument Self-funded overseas stock Chongqing method investment Other equity Domestic and China Fair value HK06066 70,041,364.00 68,545,920.00 0.00 6,144,610.00 0.00 70,041,364.00 0.00 0.00 instrument Self-funded overseas stock Securities method investment 10 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) New Other equity Domestic and Fair value HK01518 Century 140,848,850.00 53,586,259.00 0.00 -122,572,847.00 0.00 0.00 0.00 18,276,003.00 instrument Self-funded overseas stock method Healthcare investment 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 421,135,017.00 -- 300,124,974.00 0.00 -163,110,279.00 0.00 70,041,364.00 7,719,941.00 181,838,764.00 -- -- Disclosure date of the announcement about the board’s consent for the N/A securities investment Disclosure date of the announcement about the general meeting’s consent for N/A the securities investment (if any) 2. Investments in Derivative Financial Instruments √ Applicable □ Not applicable Unit: RMB’0,000 Ending Purchased investment Actual Relationship Related-party Initial Sold in Impairment Operating Type of Beginning in Ending as % of the gain/loss in with the transaction investment Beginning date Ending date Reporting allowance party derivative investment Reporting investment Company’s Reporting Company or not amount Period (if any) Period ending net Period assets Foreign Financial Not a exchange 30 September No 78,133.44 1 January 2020 78,133.44 134,273.58 92,617.36 - 119,789.66 0.78% 683.17 institutions related party forwards 2020 contract Total 78,133.44 -- -- 78,133.44 134,273.58 92,617.36 - 119,789.66 0.78% 683.17 11 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Funding source Self-funded Legal matters involved (if applicable) N/A As of the end of the reporting period, the financial derivatives held by the company are foreign exchange forward contracts, and the Analysis of risks and control measures associated with risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the financial derivative investments held in Reporting Period derivatives are as follows: the company controls the types of derivative transactions, reasonably matches the scale of derivative (including but not limited to market risk, liquidity risk, transactions, and the transactions must match the company's production, operation and development planning, mainly for the purpose credit risk, operational risk, legal risk, etc.) of cost locking and risk prevention. Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation of should include measurement method and related the external financial institutions. assumptions and parameters) Major changes in accounting policies and specific accounting principles adopted for derivative investments No major changes in Reporting Period compared to last reporting period Opinion of independent directors on derivative N/A investments and risk control 12 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) V Progress of Projects Financed with Raised Funds √ Applicable □ Not applicable Unit: RMB’0,000 Total investment of raised funds in Amount of raised funds (Note 1) 1,392,266 646,796 the Reporting Period Amount with usage changed of raised funds during the —— Reporting Period Accumulative amount with usage changed of raised Total accumulative investment of —— 1,392,266 funds raised funds Proportion of total accumulative amount with usage 0% changed of raised funds Total Total Projects has Accumulative Progress of Whether major committed investment Committed investment been changed or Investment in investment as of investment as of changes occur investment after projects not (including Q1-Q3 the period-end the period-end (3) in project of raised adjustment partial changes) (2) =(2)/(1) feasibility funds (1) 19BOEY1 Capital increase to No 450,000 445,600 50,130 445,600 100% —— subsidiries Repayment No 350,000 350,000 - 350,000 100% —— Subtotal of committed investment projects 800,000 795,600 50,130 795,600 100% —— 20BOEY1 Capital increase to No 200,000 198,900 198,900 198,900 100% —— subsidiries Subtotal of committed investment projects 200,000 198,900 198,900 198,900 100% —— 20BOEY2 Capital increase to No 200,000 198,878 198,878 198,878 100% —— subsidiries Subtotal of committed investment projects 200,000 198,878 198,878 198,878 100% —— 20BOEY3 Capital increase to No 180,000 180,000 180,000 180,000 100% —— subsidiries Supplement to working No 20,000 18,888 18,888 18,888 100% —— capital Subtotal of committed investment projects 200,000 198,888 198,888 198,888 - —— 13 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Total committed investment projects 1,400,000 1,392,266 646,796 1,392,266 - —— Situation and reasons for not meeting schemed progress No or anticipated income Note to major changes in project feasibility No Amount, usage and progress of over-raised funds No Changes in implementation place of projects financed No with raised funds Adjustment of implementation method of projects No financed with raised funds As of 30 September 2020, the Company has replaced RMB4,515 million of up-front investment of committed investment projects by raised funds, of which RMB785 million was replaced for up-front investment projects of raised funds Up-front investment and replacement of projects by 2019 initial renewable corporation bonds, RMB1,600 million was replaced financed with raised funds for up-front investment projects of raised funds by 2020 first renewable corporation bonds, and RMB1,200 million was replaced by 2020 second corporation bonds and RMB930 million was replaced by 2020 third corporation bonds. Supplement to working capital temporarily by idle No raised funds Surplus amount of raised funds for projects and reasons No Usage and destination for unused raised funds No Problems or others when using raised funds and No disclosing Note 1: The amount of raised funds was the net amount after the total amount of raised funds by renewable corporation bonds through public issue deducting issuances cost (tax inclusive). VI 2020 Annual Operating Performance Forecast Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as explanation of why: □ Applicable √ Not applicable VII Significant Contracts Arising from the Company’s Ordinary Course of Business □ Applicable √ Not applicable VIII Cash Entrusted for Wealth Management √ Applicable □ Not applicable 14 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Unit: RMB’0,000 Unrecovered overdue Type Funding source Amount Undue amount amount Bank’s wealth management product and Self-funded 716,300 329,937 0 structured deposit Total 716,300 329,937 0 High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principal protection: √ Applicable □ Not applicable Wealth management transactions with possible impairments including an expectedly unrecoverable principal: □ Applicable √ Not applicable IX Irregularities in the Provision of Guarantees □ Applicable √ Not applicable No such cases in the Reporting Period. X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-Operating Purposes □ Applicable √ Not applicable No such cases in the Reporting Period. 15 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) XI Communications with the Investment Community such as Researches, Inquiries and Interviews Received during the Reporting Period √ Applicable □ Not applicable Major Type of discussion Index to main Way of Date Place communication Communication party content and information communication party information communicated provided China Re Asset, China Post Securities, China Post Fund, China Yingli, BOC International Securities, ZTC, CITIC Securities, CITIC New Future Fund, CITIC Holdings, China Securities, China Fund, Zhong Ou AMC, CICC, AVIC Fund, Fortune Growth Captial, Changjiang Securities, Yinhua Fund, CGS, Galaxy AMC, Evalueserve, Yansheng 1. 2020 Investment, Asia-Pacific P&C, semi-annual Xingzheng Securities, Sinvo Fund, performance of New China Fund, Southwest the Company Securities, Minmetals Securities, and main Technology Wanlian Securities, DayLing situation of the Innovation (Beijing) Investment Management, industry; 1 September Centre and Tianhong Fund, Tian An Life, 2. Main For details, see One-site visit Institutions 2020 Meeting Room Taikang Management, Manulife operating www.cninfo.com.cn of the Teda, Shenzhen Dongfangjunzheng information of Company Capitals, Social Security Fund, the Company; Shanghai Lengze Investment, 3. Innovations Kingdom Capital, Credit Suisse of technology Founder Securities, PICC, First and products; Seafront Fund, Ping An Securities, 4. Future Ping An Haiguo (Beijing) strategy layout Management, Pengyang AMC, ABC Life, Minsheng Securities, Minsheng Royal Fund, Kaiyuan Securities, Genharmony, JT Asset, Greenwoods Asset, Jingjing Investment, Jiangxin Fund, CCB Principle, Harvest Fund, JYAH Asset, HSBC Jintrust, HSBC Securities, China Everwin Asset, Huaxi Securities, Huatai Securities, 16 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Huashang Fund, Huarong Securities, Huajin Kaiyuan, Hua Chuang Securities, Hongta Securities, Sequoia Capital, Union Asset, Guosen Securities, Guotai Junan, China Life AMP, Guosheng Securities, Guolian Securities, Gfund Management, Guohou AMC, Guodu Securities, GF Securities, GF Fund, Fengpei Investment, Fenghe Zhengqin, Founder Securities, Orient Securities, Orient Fund, Dong’an Investment, Tebon Securities, Damu Capital, Dajia Asset, Broad Fund, Beixin Ruifeng Fund, Wenboqisheng Investment, Tagee Asset Management, Starock Investment, Beijing Runda Sheng’an Asset Management, Beijing Huairang Asset Management, Beijing Richland Capital Management, Haiyan Capital Mangement, Beijing Chenjun Asset Management, Beijing Baiquan Huizhong Investment, Macau Qixin Belt and Road Industrial Fund Zundao Assets, ZKI Insurance, Chongqing Boyong Funds, China Re Asset, China Post Securities, China Post Life Insurance, China Post 1. Main Funds, BOC Funds, BOC situation of the International Securities, BOC industry; International, China Galaxy 2. Main International, Generali China, operating Generali Asset, Zhongxuan 24 September information of For details, see Teleconference By phone Institutions Investment Management, CITIC 2020 the Company; www.cninfo.com.cn Capital, CITIC Securities, China 3. The Securities, China Fund, CITIC Company’s Prudential, CITIC Prudential Fund, participation in Zhongtai Securities, Zhong Rong Hui industrial Xin Futures, Zhongrongding consolidation Investment, Zhong Ou Asset Management, CS Richland Asset, CICC Asset Management, CICC, Bank Of Beijing Scotiabank Asset 17 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Management, AVIC Fund, China Life Asset Management, PICC, CSIC Finance Company, FGC, Zheshang Securities, Zhejiang Yisheng Asset Management, China Merchants Fund, Changxin Fund, Changsheng Fund, Changjiang Securities, Changjiang Pension Insurance, Great Wall Securities, Great Wall Glory Securities, Yunshan Investment, Yuanhao Capital, COWIN, Winsure Capital, AIA Asset Management, Yourong Asset, Maxwealth Fund, Infore Capital, Yingda Securities, Yinhua Fund, China Galaxy Securities, Galaxy AMC, Flying Tiger, Evalueserve, Evalueserve, Nomura Securities Hong Kong, Nomura Orient International Securities, API P&C, Xunchang Investment, Xuanbu Investment, Industrial Securities Asset Management, Xingyin Fund, Industrial Securities, CIB Fund, Starlux Investments, Cinda Securities, Xinyuan Asset Management, Sinvo Fund, New Times Securities, New Power Capital, New China Assets Management, New China Asset, Xishan Capital, Southwest Securities, Tibet Eastmoney Fund, Western Securities, Western Leadbank Fund, Winning Ventures, Windsor Capital, Future Assets, Wanjia Asset, Tongtai AMC, Tongben Investment, China Nature Asset Management, Tiansun Investment, Tianhong Asset Management, Tianfeng Securities, Skywind International, Tianchong Capital, Tianan Life, Tianan Property Insurance, First-trust Fund, Taikang Asset Management, Manulife TEDA Fund, Taiping Asset, Taiping 18 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Pension, Timewise International Capital Corporation, Shunfeng Asset, Capital Securities, Mega Trust Investment, Rock Bay Investment, Shicheng Holding, Shenzhen Zhengyuan Investment, Shenzhen Xinran Asset Management, ShenZhen Wukong Investment, Shenzhen Spruces Capital, Shenzhen Zhicheng Haiwei Investment, Shenzhen Rongshu Investment Management, Shenzhen Hongchou Investment, Shenzhen Shandao IMC, Shenzhen Shanshi Fund, ShenZhen QianHai Hawking Capital, Shenzhen Longteng Assets, Shenzhen KingTower, Shenzhen Jinyou Chuangzhi Asset Management, Shenzhen Guanghuiyuan Asset Management, Shenzhen Hillview Capital Management, Shenzhen Orient Junzheng Capital Management, Shenwan Hongyuan Securities, Shanghai Jurassic Asset Management, Shanghai SHCB Investment Management, Shanghai Ztcapital Management, Shanghai Yinshi Capital Management, Shanghai Yijinghui Capital Management, Shanghai Sunsource Investment, Shanghai Top Capital Management, Shanghai Tanyi, Shanghai Elegant Investment, Shanghai Hawthorn Asset Management, Shanghai Qunbo Asset Management, Shanghai Mingyu Asset Management, Shanghai Intewise Capital, Shanghai Kingsun Investment Management, Shanghai Trend Capital, Shanghai Hanpu Investment, Shanghai Guoxin Investment, Shanghai Dingling Asset Management, Shanghai Biaopu Investment, Sumitomo Mitsui DS 19 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Asset Management, Credit Suisse Founder Securities, Credit Suisse Founder, PICC Asset Management, Shanghai Quanli Asset Management, Shanghai Knight Investment, Qingdao Anzhi Capital, First Qianhai Fund, Cloud Alpha, Pearl Investment, Zhiling Sanlian Asset Management, Ping An Asset Management, Ping An Securities, Ping An Pension Insurance, Pengyang Fund, Panjing Investment, Lord Abbett China Asset Management, ABC Life, ABC-CA Fund, Ningbo Yuehai Xiehe Asset Management, Nixi Capital, Monita Research, Minya Fund, DIB Asset, Mingyu Asset, Minsheng Securities Investment Department, Minsheng Securities, Minsheng Trust, Minsheng Royal Fund, Macquarie Securities, Longwin Investment, Long Hang Assets, Lowrisk Asset, Commando Capital, V. Stone Fund, Kaiding Investment, Kaiyuan Securities, J.K. Life, JT Asset Management, Invesco Great Wall, Greenwoods, Goldstate Securities, Golden Eagle Fund, BOCOM Schroder Fund, Winfast Holding, Kiingsun Investment, CCB Pension Management, CCB Investment, CCB Wealth, Harvest Fund, Co-Stone Asset, HSBC Jinxin, HSBC, High-flyer Quant, Huaxia Bank Asset Management Department, Huaxia Future Investment, Huaxi Securities, Huatai Securities Asset Management, Huatai Securities, Huatai Baoxing Fund, Huashang Fund, CR Yuanta Fund, Huarong Securities, Huaneng Trust, Huajin Securities, Harfor Fund, Huachuang Securities Self-support, Huachuang Securities, Mirae Asset, Hwabao WP Fund, 20 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Hubei Dingfeng Asset, Hongsheng Asset, Honghu Investment, Hongde Fund, Hongdao Investment, Honggang Asset, Hongyi Horizon Fund, HSAM, Hengyuan Capital, Hang Seng Qianhai Fund, Heng An Standard Life, Union Asset, KWG Group Holdings, Juji Asset, Hangzhou Hao Sheng Investment, Hangzhou Gufu Asset Management, Korea Investment, Haitong Securities, Guoyuan Securities, Guosen Securities, UBS SDIC, Guotai Junan Securities Asset Management, Guotai Junan Securities, Guotai Junan International. Guotai Junan, China Life AMP, Guosheng Securities, Guolian Securities, CPIC Fund, Guohua Life, Sealand Securities, Guangzhou Xuanyuan Asset Management, Hui Chuang Fu Xiang, Red Cat Asset, Guangyin Wealth Management, GF Securities, GF Fund, Everbright Securities, Sun Life Everbright Asset Management, Everbright PGIM, Everest Investment, Gaozheng Investment, Goldman Sachs, Fuxi Capital, Full-Good Investment, Fusion Fund, Fupei Investment, Fengpei Investment, Fenghe Zhengqin, Fengcang Fund, Founder Asset Management, Founder Securities Asset Management, Founder Securities, Founder Fubon Fund, Fangyuan Fund, DH Fund Management, Dongxing Securities, Soochow Securities, Soochow Fund, Donghai Securities Asset Management, Donghai Fund, Orient Securities, Eastmoney Securities, Northeast Securities Self-support, Northeast Securities, Dingcheng Life, 21 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) Diecai Asset, DJ Asset, Elephant Asset, Dajia Asset, Pureking Fund, TryValue Asset Management, Chuancai Securities, Chengsi Investment, Caitong Securities, Fortune Securities, Brilliance Capital, Boze Asset, Boyuan Fund, Bosera Asset, Bodu Investment, Broad Fund, Botong Investment, Beixin Ruifeng Fund, Beijing ZhiKai Investment, Beijing Yunchengtai, Beijing Yongyuan Antai, Beijing Yan Hnag Investment, Beijing International Trust, Beijing WenboQisheng Investment, Beijing Taozhu Investment, Beijing Shennong Capital, Beijing Forest Lake Assets, Beijing Rundasheng’an Asset Management, Beijing Qingtian Puruiming Capital Management, Beijing Heju Asset, HZPH Investment, Beijing Gushan Investment, Beijing Dingsa Fund, Beijing Chengyang Investment, Beijing Chengsheng Investment, Power Pacific, Oscar and Partners Capital, Essence Securities Asset Management Department, Essence Funds, TX Capital, Sherwood capital , RWC Partners, Q Fund Management, PAG, OPPO, Oppenheimer&Co , Octo Rivers AM, Oberweis Asset Mgt, Morgan Stanley, Mighty Divine, Inventio Capital, eFusion Capital, Cyber atlas capital, Bank of America , Aspex, Acuity knowledge partner 1. Main situation of the industry; 25 September For details, see Teleconference By phone Institutions Orient Securities Asset Management 2. Main 2020 www.cninfo.com.cn operating information of the Company; 22 BOE Technology Group Co., Ltd. Third Quarterly Report 2020 (Summary) 3. Innovations of technology and products; 4. Future strategy layout Chairman of the Board (signature): Chen Yanshun Date of the Board’s approval of this Report: 29 October 2020 23