Stock Code: 200725 Stock Name: BOE-B Announcement No. 2021-037
BOE TECHNOLOGY GROUP CO., LTD.FIRST QUARTERLY REPORT 2021 (SUMMARY)
Part I Important NotesThe 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 referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President of theCompany, Ms. Sun Yun, the Company’s Chief Financial Officer, and Ms. Yang Xiaoping, headof the Company’s financial department (equivalent to financial manager) hereby guaranteethat 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 anydiscrepancies or misunderstandings between the two versions, the Chinese version shallprevail.
Part II Key Corporate InformationI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for any retrospectively adjustment or restatementOther reasons
| Item | Q1 2021 | Q1 2020 | Change (%) | |
| Before | After | After | ||
| Operating revenue (RMB) | 49,655,379,519.00 | 25,879,940,117.00 | 23,887,380,060.00 | 107.87% |
| Net profit attributable to the listed company’s shareholders (RMB) | 5,182,037,171.00 | 566,676,460.00 | 566,676,460.00 | 814.46% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 4,484,934,082.00 | -502,352,271.00 | -502,352,271.00 | - |
| Net cash generated from/used in operating activities (RMB) | 14,522,832,708.00 | 5,223,671,919.00 | 5,223,671,919.00 | 178.02% |
| Basic earnings per share (RMB/share) | 0.147 | 0.014 | 0.014 | 950.00% |
| Diluted earnings per share (RMB/share) | 0.147 | 0.014 | 0.014 | 950.00% |
| Weighted average return on equity (%) | 5.51% | 0.50% | 0.50% | 5.01% |
| Item | 31 March 2021 | 31 December 2020 | Change (%) | |
| Before | After | After | ||
| Total assets (RMB) | 427,658,157,566.00 | 424,256,806,331.00 | 424,256,806,331.00 | 0.80% |
| Equity attributable to the listed company’s shareholders (RMB) | 112,362,224,896.00 | 103,276,766,835.00 | 103,276,766,835.00 | 8.80% |
Other reasonsThe operating revenue for Q1 2020 was represented in accordance with reviewed data, which caused no influence on other financialindicators.Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 149,147,539.00 | N/A |
| Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly approved document | 0.00 | N/A |
| 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 government’s uniform standards ) | 627,394,493.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current gains and losses | 0.00 | N/A |
| 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 net assets of investees when making investments | 0.00 | N/A |
| 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 prices | 0.00 | N/A |
| Current gains and losses on subsidiaries acquired through business mergers under same control from period-beginning to merger dates, net | 0.00 | N/A |
| Gains and losses on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | N/A |
| 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 (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 28,421,688.00 | N/A |
| Reversed portion of impairment allowance for accounts receivable and contract assets which are tested individually for impairment | 2,844,705.00 | N/A |
| Gains and losses on loan entrustment | 0.00 | N/A |
| Gains and losses on fair value changes in investment property of which subsequent measurement is carried out using fair value method | 0.00 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current gains and losses | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | N/A |
| Non-operating income and expense other than above | 18,665,471.00 | N/A |
| Other gains and losses that meet definition of nonrecurring gain/loss | 0.00 | N/A |
| Less: Income tax effects | 81,244,762.00 | N/A |
| Non-controlling interests effects (net of tax) | 48,126,045.00 | N/A |
| Total | 697,103,089.00 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2021
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 1,329,925 (including 1,292,791 A-shareholders and 37,134 B-shareholders) | |||||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |
| Status | Shares | |||||
| Beijing State-owned Capital Operation and Management Center | State-owned legal person | 11.68% | 4,063,333,333 | 0 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 5.90% | 2,051,846,141 | 0 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | 0 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.91% | 666,195,772 | 0 | N/A | 0 |
| Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. | State-owned legal person | 1.33% | 463,816,446 | 0 | N/A | 0 |
| Hefei Jianxin Investment Co., Ltd. | State-owned legal person | 1.30% | 452,016,095 | 0 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 1.12% | 388,827,757 | 0 | N/A | 0 |
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | Other | 0.98% | 341,531,677 | 0 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.79% | 273,735,583 | 0 | N/A | 0 |
| Industrial and Commercial Bank of China-GF Double Engines Upgrade Mixed Type Securities Investment Fund | Other | 0.72% | 249,000,000 | 0 | N/A | 0 |
| Top 10 unrestricted shareholders | |||
| Name of shareholder | Unrestricted shares held | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Center | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 2,051,846,141 | RMB ordinary share | 2,051,846,141 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. | 463,816,446 | RMB ordinary share | 463,816,446 |
| Hefei Jianxin Investment Co., Ltd. | 452,016,095 | RMB ordinary share | 452,016,095 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 388,827,757 | RMB ordinary share | 388,827,757 |
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | 341,531,677 | RMB ordinary share | 341,531,677 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Industrial and Commercial Bank of China-GF Double Engines Upgrade Mixed Type Securities Investment Fund | 249,000,000 | RMB ordinary share | 249,000,000 |
| Related or acting-in-concert parties among the shareholders above | 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., Ltd. when executing the voting rights of the shareholders. 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 (if any) | The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 31,709,700 shares due to engaging in securities financing. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Operating revenue rose 108% during Q1 2021 compared to Q1 2020, primarily driven by the rising prices of primary products, therelease of new production capacity, and changes to the consolidation scope in the Reporting Period.
2. Cost of sales rose 77% during Q1 2021 compared to Q1 2020, primarily driven by the expanding operating revenue.
3. Selling expense rose 43% during Q1 2021 compared to Q1 2020, primarily driven by the expanding operating revenue.
4. Administrative expense rose 59% during Q1 2021 compared to Q1 2020, primarily driven by the expanding operating revenue.
5. R&D expense rose 46% during Q1 2021 compared to Q1 2020, primarily driven by greater R&D investments.
6. Financial expenses rose 44% during Q1 2021 compared to Q1 2020, primarily driven by the new projects were transferred intooperation，and changes to the consolidation scope in the Reporting Period.
7. Asset impairment loss declined 105% during Q1 2021 compared to Q1 2020, primarily driven by a decrease in the inventoryvaluation allowance according to the lower of cost and net realizable value in the Reporting Period.
8. Other income declined 45% during Q1 2021 compared to Q1 2020, primarily driven by a decrease in government grants in theReporting Period.
9. Income tax expense rose 362% during Q1 2021 compared to Q1 2020, primarily driven by an increase in earnings in the ReportingPeriod.
10. Accounts receivable as at 31 March 2021 rose 31% compared to 31 December 2020, primarily driven by an increase in amountsdue from customers with expanding operating revenue in the Reporting Period.
11. Net cash generated from operating activities rose 178% during Q1 2021 compared to Q1 2020, primarily driven by an increase inoperating profit with a larger business size.
12. Cash used in investing activities rose 68% during Q1 2021 compared to Q1 2020, primarily driven by the repurchase ofnon-controlling interests and an increase in expenses on construction of new projects in the Reporting Period.
II Progress, Influence and Solutions with regard to 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 itsPublic Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801Approval from CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominalvalue no more than RMB30 billion to qualified investors. The Company publicly issued renewable corporate bonds (to qualifiedinvestors) (the first issue) (“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October2019, the issuing scale of RMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issuedrenewable 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 thebonds’ ultimate nominal interest of 3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (thesecond 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 Companypublicly 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 RMB2billion and the bonds’ ultimate nominal interest of 3.50%. The Company disclosed 2021 "20BOEY1" Interest PaymentAnnouncement (Announcement No. 2021-016) on 23 February 2021. BOE Public Issuance of Renewable Corporate Bonds (toQualified Investors) (the First Issue) (epidemic prevention and control bonds) in 2020 was one year old until 27 February 2021.According to the regulations, interest will be paid once a year during the interest-bearing period. The interest payment plan isRMB36.40 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY2" Interest Payment Announcement (AnnouncementNo. 2021-018) on 17 March 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue)(pandemic prevention and control bonds) in 2020 was one year old until 18 March 2021. According to the regulations, interest willbe paid once a year during the interest-bearing period. The interest payment plan is RMB35.40 (including tax) per 10 bonds. TheCompany disclosed 2020 "20BOEY3" Interest Payment Announcement (Announcement No. 2021-035) on 23 April 2021. BOEPublic Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Third Issue) in 2020 was one year old until 27 April2021. According to the regulations, interest will be paid once a year during the interest-bearing period. The interest payment plan isRMB35.00 (including tax) per 10 bonds.
2. The Company’s wholly-owned subsidiary BOE Technology (HK) Limited filed a lawsuit on the sales contract dispute to thesuperior 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. andJia Yueting with the claimed amount of USD41.84 million in total. However, Beijing Municipal Superior People’s Court respectivelyissued the Notice of Acceptance and the Civil Ruling Paper on Property Preservation on July 6, 2017 and July 31, 2017. LETVMobile ever put forward the jurisdiction objection to Beijing Municipal Superior People’s Court, which was rejected, and thenlaunched a lawsuit on the judgment of the jurisdiction objection to the Supreme People’s Court. Finally, the Supreme People’s Courtmade the final ruling, rejected the appeal of LETV Mobile and affirmed the original judgment. On 8 March 2019, the first hearingwas held in Beijing Municipal Superior People’s Court. On 19 February 2020, Beijing Municipal Superior People’s Court issued thefirst 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 theinterest 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 paymentday, and US134,850 from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days)), as well as theliquidated damages (regarding the principal USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71from 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 tothe actual payment day; the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after thejudgment took effect;
(2) The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETVMobile 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, LETVHoldings (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 theinterest basis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period as thestandard; USD2,459,090.91 from August 20, 2019 to the actual payment day with the quoted interest rate of the loan market issuedby 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 tofulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayedperiod 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 wasRMB5000, which shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETVHoldings (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. The Supreme People’s Courtmade the judgment that the case was treated as that the appellant LeTV Holdings (Beijing) Co., Ltd. automatically withdrew theappeal on 8 July 2020. And the judgment of the first instance will take effect since the date when the written order is served. BOETechnology (HK) Limited has submitted the Application for Execution to Beijing High People’s Court and the court has accepted theexecution application. On 24 December 2020, the Beijing No. 3 Intermediate People's Court made an Application for Execution thatLeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, and LeTV Holdings (Beijing) Co., Ltd. had been included in thelist of defaulters, and the court ruled to terminate this enforcement because the defaulters had no property available for execution.The Company has calculated corresponding bad-debt provision for the account receivables equaling the above-mentioned claimedamount according to the accounting standards, which has uncertain influence on the Company.
3. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21
st Meeting of the 9
thBoard of Directors(Announcement No.: 2021-001) and the Plan of Private Placement of A-Shares in 2021. According to the disclosure, the Companyintended to privately issue A-shares for no more than 35 special investors including Beijing Jingguorui State-owned EnterpriseReform and Development Fund (Limited Partnership) for raised funds with net amount not exceeding RMB20 billion. The raisedfunds will be used to acquire 24.06% equity in Wuhan BOE Optoelectronics Technology Co., Ltd., increase the capital in ChongqingBOE Display Technology Co., Ltd. & construct the project of its 6G AMOLED Production Line, increase the capital in YunnanChuangshijie Optoelectronics Technology Co., Ltd. & construct the project of 12-inch Si-based OLED, increase the capital inChengdu BOE Hospital Co., Ltd. & construct the project of Chengdu BOE Hospital, repay the loan of Fuzhou Urban ConstructionInvestment Group Co., Ltd., and supplement the working capital. On 10 February 2021, the Company disclosed the Announcementon Receiving the Reply of SASAC regarding Private Placement of A-Shares in 2021 (Announcement No.: 2021-014). According tothe disclosure, the Company received the notice from its actual controller Beijing Electronics Holding Co., Ltd. saying the latter hadreceived the Reply on Private Placement of Shares by BOE Technology Group Co., Ltd. (JGZCQ[2021]No. 5) from State-ownedAssets Supervision and Administration Commission of People’s Government of Beijing Municipality who agreed the overall plan ofthis private placement of shares not exceeding 6,959,679,752 shares in principle. On 1 April 2021, the Company disclosed theAnnouncement on Applying the Acceptance of China Securities Regulatory Commission (CSRC) regarding the Private Placement ofA-Shares in 2021 (Announcement No.: 2021-021). According to the disclosure, CSRC inspected the application materials regardingthe private placement of A-Shares by listed company submitted by the Company in conformity with legal provisions and decided toaccept the administrative license application. On 12 April 2021, the Company disclosed the Announcement on Receiving the Noticeof First Review Feedback on Administrative Licensing Projects from the China Securities Regulatory Commission (CSRC)(Announcement No.: 2021-023). According to the disclosure, the CSRC reviewed the administrative licensing application materialssubmitted by the Company regarding the Approval of BOE Technology Group Co., Ltd. on the Private Placement of Shares(A-Shares in the Main Board and SME Board, and B-Shares) by Listed Companies, required the Company and related agency toprovide written explanations and interpretations on relevant issues and to submit a written reply to the administrative licenseacceptance department of the CSRC within 30 days. On 27 April 2021, the Company disclosed the Announcement on Delayed Reply
on the Notice of First Review Feedback on Administrative Licensing Projects from the China Securities Regulatory Commission(CSRC) (Announcement No.: 2021-036). According to the disclosure, it is estimated that the Company will be unable to submit awritten reply to the CSRC within 30 days. After the prudent communication with related agency, the Company has submitted thedelayed reply application. And the Company will submit a written reply and application files with updated financial data before 8June 2021 with related agency and perform the information disclosure obligation in time.
4. On 23 March 2021, the Company disclosed the Announcement on the Resolution of the 24
th Meeting of the 9
thBoard of Directors(Announcement No.: 2021-019). According to the disclosure, Mr. Zhang Yu was appointed as Vice President, CHRO andProfessional Manager by the Board with his tenure from the approval date by the Board to the expiration of the tenure of the 9
th
Board of Director; and Ms. Su Xuefei was appointed as Securities Affairs Representative with her tenure from the approval date bythe Board to the expiration of the tenure of the 9
th
Board of Directors.
5. On 13 April 2021, the Company disclosed the Announcement on the Resolution of the 25
th Meeting of the 9
thBoard of Directors(Announcement No.: 2021-0xx) and the Announcement on the Departure of an Independent Director at Tenure Expiration and theSelection of a Replacement Independent Director (Announcement No.: 2021-0xx). According to the disclosure, Mr. Wang Huachengapplied for departing from his position as Independent Director of the Company and other positions in related committees under theBoard due to the expiration of his tenure as Independent Director. At the 25
th Meeting of the 9
thBoard of Directors, the Companyconsidered and approved the Proposal on Selecting Mr. Zhang Xinmin as an Independent Director of the 9
th
Board of Directors, andnominated Mr. Zhang Xinmin as a candidate for Independent Director of the 9
thBoard of Directors.
| Overview of significant events | Disclosure date | Index to disclosure website for interim report |
| Announcement on Being Transferred Some Equity of Mianyang BOE Optoelectronics Technology Co., Ltd. | 27 January 2021 | www.cninfo.com.cn |
| Announcement on Investing the Production Line Expansion of Advanced Generation TFT-LCD by Wuhan BOE Optoelectronics Technology Co., Ltd. | 23 March 2021 | www.cninfo.com.cn |
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
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | - |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | - |
| Commitments made in time of asset restructuring | - | - | - | - | - | - |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | - |
| Equity incentive commitments | - | - | - | - | - | - |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun Vice Chairman of the Board: Mr. Liu Xiaodong Director: Ms. Sun Yun and Mr. Gao Wenbao Supervisor: Mr. Xu Yangping, Mr. He Daopin, | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others | 21 February 2020 | During the term as director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | Ongoing |
| Mr. Yan Jun and Mr. Teng Jiao Senior Management: Mr. Yao Xiangjun, Mr. Zhang Zhaohong, Mr. Zhong Huifeng, Ms. Feng Liqiong, Mr. Xie Zhongdong, Mr. Miao Chuanbin and Mr. Liu Hongfeng | to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including 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. | |||
| Executed on time or not | Yes | |||
| Specific reasons for failing to fulfill commitments on time and plans for next step | N/A | |||
IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Variety of security | Symbol of security | Name of security | Initial investment cost | Accounting measurement model | Beginning carrying value | Gain/loss of changes in fair value in the Reporting Period | Accumulative changes in fair value recorded into equities | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in Reporting Period | Ending carrying value | Accounting title | Capital source |
| Domestic and overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 74,372,840.00 | 0.00 | -21,011,558.00 | 0.00 | 0.00 | 0.00 | 69,148,870.00 | Other equity instruments investment | Self-owned funds |
| Domestic and overseas stock | HK01963 | Bank of Chongqing | 128,514,251.00 | Fair value method | 102,845,668.00 | 0.00 | -15,012,811.00 | 0.00 | 0.00 | 0.00 | 113,501,440.00 | Other equity instruments investment | Self-owned funds |
| Domestic and overseas stock | HK01518 | New Century Healthcare | 134,067,764.00 | Fair value method | 36,995,513.00 | 0.00 | -103,621,474.00 | 0.00 | 0.00 | 0.00 | 30,446,290.00 | Other equity instruments investment | Self-owned funds |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 352,742,443.00 | -- | 214,214,021.00 | 0.00 | -139,645,843.00 | 0.00 | 0.00 | 0.00 | 213,096,600.00 | -- | -- | ||
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | ||||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | ||||||||||||
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
| Counterparty | Relationship with the Company | Related-party transaction or not | Type of derivative | Initial investment amount | Start date | End date | Beginning investment amount | Purchased in the Reporting Period | Sold in the Reporting Period | Impairment allowance (if any) | Ending investment amount | Ending investment amount as % of the Company’s ending net asset value | Actual gain/loss in the Reporting Period |
| Financial institutions | Not related parties | Not | Foreign exchange forward contract | 118,687.93 | 1 January 2021 | 31 March 2021 | 118,687.93 | 20,557.92 | 43,304.87 | - | 95,940.98 | 0.54% | -282.36 |
| Total | 118,687.93 | -- | -- | 118,687.93 | 20,557.92 | 43,304.87 | - | 95,940.98 | 0.54% | -282.36 | |||
| Funding source | Self-funded | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Analysis of risks and control measures associated with the derivative investments held in the Reporting Period (including but not limited to market, liquidity, credit, operational and legal risks, etc.) | As of the end of the reporting period, the financial derivatives held by the company are foreign exchange forward contracts, and the risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the financial derivatives are as follows: the company controls the types of derivative transactions, reasonably matches the scale of derivative transactions, and the transactions must match the company's production, operation and development planning, mainly for the purpose of cost locking and risk prevention. | ||||||||||||
| Changes in market prices or fair value of derivative investments in the Reporting Period (fair value analysis should include measurement methods and related assumptions and parameters) | The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation of the external financial institutions. | ||||||||||||
| Significant changes in accounting policies and specific accounting principles adopted for derivative investments in the Reporting Period compared to the last reporting period | No major changes | ||||||||||||
| Opinion of independent directors on derivative investments and risk | N/A | ||||||||||||
V Progress of Projects Financed with Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0,000
control
Committed investmentproject and super raise
fund arrangement
| Committed investment project and super raise fund arrangement | Changed or not (including partial changes) | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the Reporting Period | Accumulative investment amount as of the period-end (2) | Investment schedule as the period-end (3)＝(2)/(1) | Date of reaching intended use of the project | Realized income in the Reporting Period | Whether reached anticipated income | Whether occurred significant changes in project feasibility |
| Committed investment project (19BOEY1) | ||||||||||
| Capital increase to subsidiries | Not | 450,000 | 445,600 | - | 445,600 | 100.00% | Naught | N/A | N/A | Not |
| Repayment of bank loan | Not | 350,000 | 350,000 | - | 350,000 | 100.00% | Naught | N/A | N/A | Not |
| Subtotal of committed investment project | -- | 800,000 | 795,600 | - | 795,600 | -- | -- | N/A | -- | -- |
| Committed investment project (20BOEY1) | ||||||||||
| Capital increase to subsidiries | Not | 200,000 | 198,900 | - | 198,900 | 100.00% | Naught | N/A | N/A | Not |
| Repayment of bank loan | -- | 200,000 | 198,900 | - | 198,900 | -- | -- | N/A | -- | -- |
| Committed investment project (20BOEY2) | ||||||||||
| Capital increase to subsidiries | Not | 200,000 | 198,878 | - | 198,878 | 100.00% | Naught | N/A | N/A | Not |
| Repayment of bank loan | -- | 200,000 | 198,878 | - | 198,878 | -- | -- | N/A | -- | -- |
| Committed investment project (20BOEY3) | ||||||||||
| Capital increase in subsidiaries | Not | 180,000 | 180,000 | - | 180,000 | 100.00% | Naught | N/A | N/A | Not |
| Supplement to working capital | No | 20,000 | 18,888 | - | 18,888 | 100.00% | Naught | N/A | N/A | Not |
| Subtotal of committed investment projects | -- | 200,000 | 198,888 | - | 198,888 | -- | -- | N/A | -- | -- |
| Total committed investment projects | -- | 1,400,000 | 1,392,266 | - | 1,392,266 | -- | -- | -- | -- | |
| Condition and reason for not reaching the | No such cases in the Reporting Period. | |||||||||
| schedule and anticipated income (by specific items) | |
| Notes of condition of significant changes occurred in project feasibility | Naught |
| Advance investments in projects financed with raised funds and swaps of such advance investments with subsequent raised funds | As of 31 March 2021, the Company swapped, with subsequent raised funds, a total of advance investments of RMB4,515 million in projects financed with raised funds. To be specific, the funds raised in the first tranche of renewable corporate bonds of 2019 were swapped with advance investments of RMB785 million, the funds raised in the first tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB1,600 million, the funds raised in the second tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB1,200 million, and the funds raised in the third tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB930 million. |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | The total amount of raised funds was used up. As of 31 March 2021, the balance in the raised funds account was RMB8.1381 million, which were interest accrued. |
| Usage and destination of unused funds | Naught |
| Problems incurred in fund using and disclosure or other condition | Naught |
VI Operating Performance Forecast for January-June 2021
Warning of a forecast loss on or a forecast significant YoY change in accumulative net profit from the beginning of the year to theend of the next reporting period, 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
Unit: RMB’0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Overdue amount |
| Bank financial products and structured deposit | Self-owned funds | 501,500 | 320,400 | 0 |
| Total | 501,500 | 320,400 | 0 | |
Note: The amount incurred of cash entrusted for wealth management refers to the maximum balance of such wealth management ona single day during the Reporting Period.High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principalprotection:
□ 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 RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 11 March 2021 | Teleconference | By phone | Institution | Penghua Fund, China International Fund Management Co., Ltd. | Main content: 1. Main situation of the industry; 2. Major operating information of the Company. | www.cninfo.com.cn |
| 11 March 2021 | Teleconference | By phone | Institution | Xuzhang Investment |
Chairman of the Board (signature)：Chen Yanshun
Date of the Board’s approval of this Report: 29 April 2021