ANNUAL REPORT 2017
April 2018
BOE Technology Group Co., Ltd. Annual Report 2017
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of BOE Technology Group Co., Ltd. (the “Company”)
hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and
shall be jointly and severally liable for any misrepresentations, misleading statements or
material omissions in this Report.
Mr. Wang Dongsheng, the Company’s legal representative, Mr. Chen Yanshun, President of
the Execution Committee (Chief Executive Officer) of the Company, Ms. Sun Yun, the
Company’s Chief Financial Officer, and Ms. Yang Xiaoping, head of the Company’s financial
department (equivalent to financial manager) hereby guarantee that the Financial Statements
carried in this Report are factual, accurate and complete.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Any plans for the future and other forward-looking statements mentioned in this Report shall
NOT be considered as absolute promises of the Company to investors. Investors, among
others, shall be sufficiently aware of the risk and shall differentiate between plans and
forecasts and promises.
The Board has considered and approved the following dividend payout proposal for common
shareholders for the Reporting Period: based on the total shares of 34,798,398,763, a cash
dividend of RMB0.50 (tax inclusive) per 10 shares would be distributed to all the common
shareholders, with no share dividend converted either from retain earnings or from capital
reserves.
This Report has been prepared as per the Chinese Accounting Standards for Business
Enterprises and other relevant regulations. KPMG Huazhen LLP has issued an independent
auditor’s report with unmodified unqualified opinion for the Company.
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.
BOE Technology Group Co., Ltd. Annual Report 2017
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Company Profile and Key Financial Information.............................................................. 6
Part III Business Summary ............................................................................................................. 11
Part IV Company Performance Discussion and Analysis ............................................................ 14
Part V Significant Events ................................................................................................................ 35
Part VI Share Changes and Shareholder Information ................................................................. 57
Part VII Preferred Shares ............................................................................................................... 68
Part VIII Directors, Supervisors, Senior Management and Staff ............................................... 69
Part IX Corporate Governance ...................................................................................................... 84
Part X Corporate Bonds .................................................................................................................. 94
Section XI Financial Report ......................................................................................................... 99
Part XII Documents Available for Reference .............................................................................. 106
BOE Technology Group Co., Ltd. Annual Report 2017
Definitions
Term Definition
BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the
The “Company”, “BOE” or “we”
context otherwise requires
BOE Technology Group Co., Ltd. exclusive of subsidiaries, except where the context
Parent, Parent Company
otherwise requires
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2014)
SZSE, the Stock Exchange The Shenzhen Stock Exchange
The cninfo website http://www.cninfo.com.cn/
CSRC China Securities Regulatory Commission
The Articles of Association The Articles of Association of BOE Technology Group Co., Ltd.
The Company Law The Company Law of the People’s Republic of China
The Securities Law The Securities Law of the People’s Republic of China
OASIS Hospital OASIS International Hospital
DBG The display and sensor business group of the Company
SBG The smart systems business group of the Company
HBG The healthcare business group of the Company
United Ratings United Credit Ratings Co., Ltd.
TFT- LCD Thin Film Transistor- Liquid Crystal Display
LCD Liquid Crystal Display
LTPS Low Temperature Poly-Silicon
FPXD Flat Panel X-Ray Detector
AMOLED Active-Matrix Organic Light Emitting Diode
AMQLED Active Matrix Quantum-Dot Light Emitting Diode
OLED Organic Light-Emitting Diode
VR/AR Virtual Reality /Augmented Reality
IFI IFI CLAIMS Patent Services
SID The Society for Information Display
IFA Internationale Funkausstellung Berlin
TDDI Touch and Display Driver Integration
KPMG KPMG Huazhen LLP
BOE Technology Group Co., Ltd. Annual Report 2017
The “Reporting Period” or “Current
The period from January 1, 2017 to December 31, 2017
Period”
RMB, RMB’0,000 In RMB yuan, in RMB ten thousand yuan
BOE Technology Group Co., Ltd. Annual Report 2017
Part II Company Profile and Key Financial Information
I Corporate Information
Stock name BOE A, BOE B Stock symbol 000725, 200725
Changed stock name (if any) N/A
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. 京东方
Company name in English (if
BOE TECHNOLOGY GROUP CO., LTD.
any)
Abbr. (if any) BOE
Legal representative Wang Dongsheng
Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China
Zip code
Office address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China
Zip code
Company website http://www.boe.com
Email address web.master@boe.com.cn
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Cui Zhiyong
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Address Economic-Technological Development Area, Economic-Technological Development Area,
P.R.China P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
Email address liuhongfeng@boe.com.cn cuizhiyong@boe.com.cn
III Media for Information Disclosure and Place where this Report Is Kept
Newspapers designated by the Company for China Securities Journal, Shanghai Securities News, Securities Times, Ta
information disclosure Kung Pao (HK)
Website designated by CSRC for publication of this http://www.cninfo.com.cn/
BOE Technology Group Co., Ltd. Annual Report 2017
Report
Place where this Report is kept Board Secretary’s Office
IV Company Registered Information and Alterations
Organization code No alterations
Alterations to main business scope of the Company
No alterations
since going public (if any)
Alterations to controlling shareholder (if any) No alterations
V Other Information
The independent certified public accounting (or “CPA”) firm hired by the Company:
Name KPMG Huazhen LLP
8/F, KPMG Tower, Oriental Plaza, 1 East Chang An Avenue, Beijing,
Office address
P.R.China
Accountants writing signatures Zhang Huan and Su Xing
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2017-over-2016
Item 2017 2016
change
Sales revenue (RMB) 93,800,479,215.00 68,895,658,963.00 36.15% 48,623,732,312.00
Net income attributable to
shareholders of the listed company 7,567,682,493.00 1,882,571,674.00 301.99% 1,636,270,488.00
(RMB)
Net income attributable to
shareholders of the listed company
6,679,211,138.00 12,534,878.00 53,185.01% 613,814,833.00
before nonrecurring gains and
losses (RMB)
Net cash flows from operating
26,266,986,015.00 10,073,287,120.00 160.76% 10,493,385,445.00
activities (RMB)
BOE Technology Group Co., Ltd. Annual Report 2017
Basic earnings per share
0.217 0.054 301.85% 0.046
(RMB/share)
Diluted earnings per share
0.217 0.054 301.85% 0.046
(RMB/share)
Weighted average return on equity
9.25% 2.40% 6.85% 2.13%
(%)
Change of December
Item December 31, 2017 December 31, 2016 31, 2017 over December 31, 2015
December 31, 2016
Total assets (RMB) 256,108,741,849.00 205,135,011,042.00 24.85% 152,592,894,442.00
Equity attributable to shareholders
84,809,816,377.00 78,699,988,493.00 7.76% 77,485,275,564.00
of the listed company (RMB)
VII Accounting Data Differences under Chinese Accounting Standards (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Item Q1 Q2 Q3 Q4
Sales revenue 21,854,974,362.00 22,750,053,633.00 24,803,328,149.00 24,392,123,071.00
Net income attributable to
2,413,015,650.00 1,889,589,950.00 2,173,061,620.00 1,092,015,273.00
shareholders of the listed company
Net income attributable to
shareholders of the listed company
2,301,442,129.00 1,716,401,980.00 1,899,046,822.00 762,320,207.00
before nonrecurring gains and
losses
Net cash flows from operating
6,216,049,821.00 4,422,541,445.00 7,852,416,022.00 7,775,978,727.00
activities
Indicate by tick mark whether any of the financial data in the table above or their summations differs materially from what have been
BOE Technology Group Co., Ltd. Annual Report 2017
disclosed in the Company’s quarterly or semi-annual reports.
□ Yes √ No
IX Nonrecurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2017 2016 2015 Note
Gains and losses on disposal of non-current
assets (inclusive of offset allowance for asset -87,930,698.00 -46,754,352.00 -8,350,324.00 N/A
impairments)
Tax rebates, reductions and exemptions with
ultra vires approval or in lack of duly approved 0.00 0.00 0.00 N/A
document
Government subsidies charged to current profit
and loss (exclusive of government subsidies
given in the Company’s ordinary course of 962,283,001.00 1,914,531,603.00 1,045,101,727.00 N/A
business at fixed quotas or amounts as per
government’s uniform standards )
Capital occupation charges on non-financial
enterprises that are charged to current gains and 0.00 0.00 0.00 N/A
losses
Income equal to the amount by which
investment costs for the Company to obtain
subsidiaries, associates and joint ventures are
0.00 105,228,293.00 163,082.00 N/A
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 0.00 0.00 N/A
Gains and losses on investment or asset
0.00 0.00 0.00 N/A
management entrustments to other entities
Allowance for asset impairments due to acts of
0.00 0.00 0.00 N/A
God such as natural disasters
Gains and losses on debt restructuring 0.00 0.00 0.00 N/A
Restructuring costs in staff arrangement,
0.00 0.00 0.00 N/A
integration, etc.
Gains and losses on over-fair value amount as a
result of transactions with distinctly unfair 0.00 0.00 0.00 N/A
prices
Current gains and losses on subsidiaries
0.00 0.00 0.00 N/A
acquired through business mergers under same
BOE Technology Group Co., Ltd. Annual Report 2017
control from period-beginning to merger dates,
net
Gains and losses on contingencies that do not
arise in the Company’s ordinary course of 0.00 0.00 0.00 N/A
business
Gains and losses on changes in fair value of
trading financial assets and liabilities &
investment income from disposal of trading
financial assets and liabilities and 134,810,181.00 149,197,609.00 173,197,708.00 N/A
available-for-sale financial assets (exclusive of
effective portion of hedges that arise in the
Company’s ordinary course of business)
Reversed portion of impairment allowance for
2,616,024.00
accounts receivable which are tested 24,547,083.00 4,535,849.00 N/A
individually for impairment
Gains and losses on loan entrustment 0.00 0.00 0.00 N/A
Gains and losses on fair value changes in
investment property of which subsequent
0.00 0.00 0.00 N/A
measurement is carried out using fair value
method
Effects of all adjustments required by taxation,
accounting and other applicable laws and 0.00 0.00 0.00 N/A
regulations on current gains and losses
Income from charges on entrusted management 0.00 0.00 0.00 N/A
Non-operating revenue and expense other than
46,503,917.00 40,206,943.00 22,787,015.00 N/A
above
Other gains and losses that meet definition of
0.00 0.00 0.00 N/A
nonrecurring gain/loss
Less: Income tax effects 126,533,931.00 305,399,453.00 185,320,551.00 N/A
Non-controlling interests effects (net of
43,277,139.00 11,520,930.00 29,658,851.00 N/A
tax)
Total 888,471,355.00 1,870,036,796.00 1,022,455,655.00 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
Part III Business Summary
I Main Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
Founded in April 1993, BOE Technology Group Co., Ltd. (BOE) has three major business divisions, namely, the display and sensor
business group (DBG), the smart systems business group (SBG) and the healthcare business group (HBG). And BOE is rapidly
transforming towards an Internet of Things (IOT) company.
1. Display and Sensor Business Group (DBG)
This business group provides, among others, TFT-LCD, AMOLED and micro display components and solutions. The display
business primarily offers display components and solutions for mobile phones, tablet PCs, laptops, displayers, TVs, VR/AR devices,
vehicles, wearable devices, industrial control, medical care, tiled display screens, etc. And the sensor business mainly provides core
thin film transistors and solutions for photoelectric sensors, gene sequencing sensors, multi-sign sensors, security sensors and
molecular antenna, among others.
2. Smart Systems Business Group (SBG)
Following the main direction of “the Internet of Things and artificial intelligence”, this business group consists of five major
sub-divisions, namely, smart manufacturing, digital arts, smart retail systems, smart vehicle-mounted systems, and smart energy
systems. The smart manufacturing sub-division mainly provides its global partners with the most competitive ODM/OEM and
customized smart manufacturing solutions of complete machines, backlight units, etc. The digital arts sub-division focuses on B2C
screen systems, providing O+O digital artwork trading platforms for customers. The smart retail systems sub-division mainly offers
electronic shelf label, commercial display, hospital-bank smart systems and solutions. And the smart vehicle-mounted systems and
smart energy systems sub-divisions mainly provide advanced vehicle-mounted and energy systems and solutions.
3. Healthcare Business Group (HBG)
With “Internet of Things technology and life data” as the core, this business group consists of five major sub-divisions, namely,
mobile healthcare, digital hospitals, regenerative medicine, healthcare parks and life insurance, primarily providing portable health
monitoring, online medical consulting, offline medical care, regenerative medicine and healthcare park products and solutions.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Reason for significant changes in the period
Equity assets No significant changes
Property, plant and equipment No significant changes
BOE Technology Group Co., Ltd. Annual Report 2017
Intangible assets No significant changes
Construction in progress Newly invested project was still not turned into fixed assets.
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
No.
1. The Company firmly promoted and implemented DSH business strategy and improved global competitiveness.
In 2017, BOE firmly promoted and implemented DSH business strategy, made efforts to strengthen and expand display and sensor
device business, rapidly formed layout of smart system business and health service business, consolidated its businesses and
improved global competitiveness.
As for the display and sensor business group (DBG): The 6th Generation Flexible AMOLED Production Line (the fist in China and
the second in the world)--The 6th BOE Chengdu Flexible AMOLED Production line was put into produce the first product in May
2017, and the MP delivery in October 2017; the first TFT-LCD Production Line of the highest generation in the world--The 10.5th
Generation BOE Hefei TFT-LCD Production Line was put into production ahead of the schedule in December 2017; The 8.5th
Generation Fuzhou TFT-LCD Production Line was put into mass production and delivery in February, which set a record in the
industry for the shortest time (15.8 months) spend during the process from the piling to the formal production, and achieved the best
performance in making profits in that year; The 6th Generation Mianyang Flexible AMOLED Production Line Project was also
carried out step by step as planned. As the sensor business further developed, unremitting effort will be made to enhance the
technical strength and the market promotion related to photoelectric sensors, gene sequencing sensors, multi-sign sensors, security
sensors and molecular antennas etc., increase the sales of photoelectric sensors, and establish the strategic cooperation with various
clients in such fields as FPXD, Flow Cell (micro-fluidic chips), digital microfluidics and molecular antennas.
As for the smart systems business group (SBG): As the five major businesses developed with a steady pace, the shipments of smart
manufacturing service TV and MNT complete machines achieved a new high. Hefei Smart Factory realized its mass production and
delivery in January; the main structure of Chongqing Smart Factory was completed one month ahead of the schedule; the first
Maker’s Workshop in China was successfully open for business; the digital art screen system completed corresponding product
upgrading and 21.5- and 49-inch Painted Screen products were sold on the market; the smart retail systems succeeded in purchasing
SES-imagotag, and would enter the new retail ecosystem by means of the RFID system; Chengdu vehicle-mounted module base (the
smart vehicle-mounted systems) succeeded in its mass production and accelerating the product upgrading; the scale of the power
station owned by the smart energy systems exceeded 270MW, and great effort would be made to promote the business development
of the energy-saving EMC, the smart microgrid and the plant factory.
As for the healthcare business group (HBG): The Company has strictly adhered to the strategic principles of Human Orientation,
Disease Prevention and Life Data, and made unremitting effort to five major business systems--mobile healthcare, digital hospitals,
regenerative medicine, life insurance and healthcare centers. For example, mobile healthcare non-invasive blood detector appeared
on the market for sales, and online and offline sales channels were successfully established; Hefei Digital Hospital Construction
Project was completed as scheduled in September, and Beijing OASIS International Hospital continued making full use of its
advantages to conduct the brand construction, realizing a steady development of the digital hospital career; the regenerative medicine
institute was formally open for business in August, laying a foundation for the transition into the clinic treatment.
2. The Company stuck to client orientation and further increased its market shares.
BOE Technology Group Co., Ltd. Annual Report 2017
With the policy of “Deep cooperation, Collaborative development, and Value co-creation”, BOE has become the world top supplier
in semiconductor and display field. BOE has kept long-term and sustainable cooperation with well-known domestic and overseas
clients, ranking as the 1st supplier for plenty of international 1st class brands. While intensifying on enlarging and maintaining
strategic clients, the Company deeply ploughed and subdivided the markets, and realized stable increase in market share in
subdivided markets. According to IHS Markit (Information Handling Services, Inc. & Markit Ltd.) data, the shipment of BOE
display screen approached 400 million pieces, ranking first in the world in many consecutive years. However, as for the display and
sensor devices group, the market shares of the LCD for smart phones and display screen for tablet PC continued to rank first in the
world, that of the display screen for notebooks also ranked first, that of TV sets second and display screen second in the world. As for
the smart business group and smart manufacturing systems, the shipment of complete machines exceeded 15 million pieces, and the
market occupancy of TV Sets and displays ranked fourth.
3. Reinforced independent innovation and further promoted innovation ability
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint value
creation”, continued to strengthen construction of patent attack and defense system, and kept foresight and primacy of technologies
and products. In 2017, BOE applied for 8,678 new patents and authorized more than 4,600 patents with the available patents
exceeding 60,000 in total; the number of patents granted by IFI (U.S.A.) in 2017 ranked 21st with its increase speed maintaining top
1 status. In terms of the technology and product, many products applying the cutting-edge technologies in the world were launched
for the first time including 5- and 14-inch AMQLED, 1.5-inch FIC (Full In Cell) OLED, 2.1-inch VR (pixel density: 2300PPI),
5.5-inch QHD eye tracking 3D and 8x8 liquid crystal molecular antennas etc.; BOE Painted Screen won the 2017 IFA Product
Technology Innovation Award and received positive comments from the entire industry; at 2017 Commercial Display Exhibition
(Japan), BOE won the BEST OF SHOW AWARD by virtue of its outstanding integrated commercial display solutions; the
regenerative medicine group finished corresponding sample preparation and the technical competence was further promoted.
4. Pushed forward transformation and upgrading and further promoted brand image
With the promotion of transformation and upgrading, BOE has further improved its products and service quality, and improved its
brand image. In 2017, the Company’s innovative brand image was publicized by CCTV News, Morning News and Night News;
BOE also attended the U.S.A. SID Exhibition, and held a series of grand brand promotion activities including BOE SPC and BOE
IPC to improve the brand awareness and reputation of BOE. As the continuous improvement of BOE Brand Value, Customer
Satisfaction and Brand Reputation, BOE has ranked among Top 10 China Consumer Electronics Brands in 11 consecutive years, and
its brand image has been widely recognized and praised by the world.
BOE Technology Group Co., Ltd. Annual Report 2017
Part IV Company Performance Discussion and Analysis
I Overview
In 2017, the global economy experienced a strong recovery, with faster-than-expected growth in trade; and China’s economy was
developing steadily and healthily with remarkable results produced in its supply-side reform. Regarding the semiconductor display
industry, it saw slower growth in the traditional LCD market, but faster growth in new markets such as VR/AR, commercial display,
industrial control and vehicle-mounted systems, as well as wider application of AMOLED in mobile phones and wearable equipment,
providing new impetuses for growth in the industry, as well as great market opportunities for the Company. Additionally, the rising
Internet of Things industry driven by the fast development of AI and big data technologies, an expanding smart terminal range of the
Internet of Things incurred by new technologies and applications, as well as a fast growing comprehensive healthcare industry
boosted by the integration of information technology and life technology, all created favorable opportunities for the Company’s
innovation and transformation.
In 2017, the ending year for its “Iron Sword” strategy, the Company united as one man and forged ahead, actively seizing market
opportunities and dealing with various challenges. For the year, the Company recorded sales revenue of RMB93.8 billion, up
approximately 36.15% compared to 2016, and recorded net income of RMB 7.568 billion, surging around 301.99% year over year,
hitting a record high in the Company’s history and laying a solid foundation for the Company’s next “Wooden Sword” strategy.
While improving the core competitiveness of the new display and sensor business including TFT-LCD and AMOLED, the Company
has also enhanced the core competitiveness of its smart manufacturing service, digital art, smart retail, smart vehicle-mounted
systems and smart energy systems, and made trans-boundary innovations through combining the semiconductor display, AI, sensor
technology and other electronic information technologies with the medicine and life science and technology. In 2017, the Company
applied for 8678 new patents, and invention patents occupied 85%. The Company’s available patents have exceeded 60,000 in total,
ranking among the best in the world. The Company has applied for over 3000 patents overseas, including the U.S.A., Europe, Japan
and Korea etc. According to relevant America patent data, BOE’s United States Patents Granted ranked 21st in 2017 from 40th in
2016, and the number of United States Patents granted reached 1,413 with a year-on-year increase of 62%. In fact, BOE has become
one of IFI TOP50 with the highest increase rate in two consecutive years. According to the 2017 Global International Patent
Application (PCT) Report issued by WIPO, BOE owned 1,818 patent applications and ranked 7th in the world. The business
operation situation of various business divisions is described as follows:
(I) The display and sensor business group (DBG)
In 2017, the market occupancy of five traditional display devices maintained its leading status. The shipment of smart phone LCD,
tablet PC display screen and notebook display screen all ranked first in the world, and that of the display screen and TV Sets display
screen second; the OLED business made a breakthrough; the 6th generation Chengdu Flexible OLED Production Line realized the
mass production and delivery in October; the pile foundation of the 6th generation Mianyang Flexible OLED Production Line was
also completed in October, and 50% of the main structure was completed in the year; the 10.5th generation Hefei TFT-LCD
Production Line was put into production and corresponding products were delivered to the customers in December; the 8.5th
generation Fuzhou TFT-LCD Production Line realized its mass production and delivery in February and fulfilled the planned
objective of making profits in the year when it’s put into production. Meanwhile, the sensor business also made some progress. For
example, X-ray achieved corresponding scale and was on the market; gene sequencing devices were shipped to various brand clients,
and the sample preparation of molecular antennas, multi-sign sensors and security sensors was completed. Therefore, it has
continuously strengthened its ability in developing clients, and added 9 first suppliers throughout the year. The Company will seek
development through making innovations, encourage the technical and product innovations and gradually improve the overall yield.
BOE Technology Group Co., Ltd. Annual Report 2017
(II) The smart systems business group (SBG)
The market occupancy of smart manufacturing service TV ranked 4th and that of MNT 4th in the world. Meanwhile, various
innovative BU (Business Unit) including Wearable Devices Unit and ESL (Electronic Shelf Label) Unit also made some progress.
Hefei Smart Manufacturing Factory realized its mass production and delivery in January, and the structure of Chongqing Factory was
completed 43 days ahead of schedule; many famous brand clients were also developed; the prototype development of the wide-angle
double imaging vehicle-mounted head-up display was completed, and the smart rear-view mirror technology platform was also
developed; the client authentication of Chengdu Vehicle-mounted Systems Base was finished, and many famous automobile brands
were successfully introduced; ESL made concerted effort with Ali and Jingdong etc. to establish the new retail ecosystem; iBank
succeeded in developing 5 clients and independently worked out the integrated solutions for two smart banks and realized the
delivery; the smart retail business layout was further improved; the painted screen won the IFA Product Technology Innovation
Award; various new products were launched including 21.5- inch products and 49-inch products, and the production line was
diversified.
(III) The healthcare business group (HBG)
The main structure of Hefei Digital Hospital was completed in September, and Chengdu Digital Hospital signed the framework
agreement and established the project company; the mobile healthcare product MTX (non-invasive multi-parameter detector) was
sold on the market; COG (non-invasive comprehensive glucose meter) passed the authentication of CFDA (China Food and Drug
Administration); for the CTC Screening Project, the glass-based colloid structure micro-fluidic chip was prepared and completed; the
diagnostic model for the non-invasive blood pressure detection and skin cancer screening project was successfully established; the
regenerative medicine cell laboratory was initiated and put into service, and 3 kinds of cell membrane samples were well prepared.
II Analysis of Main Business
1. Summary
See “I Overview” in “Company Performance Discussion and Analysis” herein.
2. Revenue and Cost
(1) Breakdown of Sales Revenue
Unit: RMB
2017
Item Percentage of total Percentage of total Change
Sales revenue Sales revenue
sales revenue (%) sales revenue (%)
Total 93,800,479,215.00 100% 68,895,658,963.00 100% 36.15%
By operating division
Display and Sensor
82,636,085,228.00 88.10% 61,207,032,381.00 88.84% 35.01%
Business Group
Smart Systems
18,134,719,119.00 19.33% 12,503,057,007.00 18.15% 45.04%
Business Group
Healthcare Business
1,023,905,566.00 1.09% 907,225,055.00 1.32% 12.86%
Group
BOE Technology Group Co., Ltd. Annual Report 2017
Other 2,225,609,340.00 2.37% 1,835,270,634.00 2.66% 21.27%
Offset -10,219,840,038.00 -10.90% -7,556,926,114.00 -10.97% -35.24%
By product category
Display and Sensor
82,636,085,228.00 88.10% 61,207,032,381.00 88.84% 35.01%
Business Group
Smart Systems
18,134,719,119.00 19.33% 12,503,057,007.00 18.15% 45.04%
Business Group
Healthcare Business
1,023,905,566.00 1.09% 907,225,055.00 1.32% 12.86%
Group
Others 2,225,609,340.00 2.37% 1,835,270,634.00 2.66% 21.27%
Offset -10,219,840,038.00 -10.90% -7,556,926,114.00 -10.97% -35.24%
By operating segment
China 44,077,183,105.00 46.99% 36,758,279,462.00 53.35% 19.91%
Other regions in Asia 44,260,377,203.00 47.19% 28,659,907,880.00 41.60% 54.43%
Europe 2,185,981,332.00 2.33% 1,576,844,846.00 2.29% 38.63%
America 3,198,611,737.00 3.41% 1,783,928,923.00 2.59% 79.30%
Other regions 78,325,838.00 0.08% 116,697,852.00 0.17% -32.88%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Sales Revenue
or Income
√ Applicable □ Not applicable
Is the Company subject to any disclosure requirements for special industries?
No.
Unit: RMB
YoY change in
Gross margin YoY change in YoY change in
Item Sales revenue Cost of sales gross margin
percentage sales revenue cost of sales
percentage
By operating division
Display and
Sensor Business 82,636,085,228.00 61,973,888,991.00 25.00% 35.01% 21.93% 8.04%
Group
Smart Systems
18,134,719,119.00 16,598,309,921.00 8.47% 45.04% 45.13% -0.06%
Business Group
By product category
Display and
Sensor Business 82,636,085,228.00 61,973,888,991.00 25.00% 35.01% 21.93% 9.55%
Group
BOE Technology Group Co., Ltd. Annual Report 2017
Smart Systems
18,134,719,119.00 16,598,309,921.00 8.47% 45.04% 45.13% -0.06%
Business Group
By operating segment
China 44,077,183,105.00 34,937,348,836.00 20.74% 19.91% 6.92% 9.63%
Other regions in
44,260,377,203.00 30,278,819,001.00 31.59% 54.43% 43.69% 5.12%
Asia
Main business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2017 2016 Change
Unit sales K㎡ 31,840 28,957 9.96%
TFT-LCD Output K㎡ 31,921 28,242 13.02%
Inventory K㎡ 1,576 1,120 40.75%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
There was newly invested operating production line in 2017, so the overall scale of inventory increased.
(4) Execution Progress of Major Signed Sales Contracts in Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2017 2016 年
Operating division Item Percentage of total Percentage of total Change
Cost of sales Cost of sales
cost of sales (%) cost of sales (%)
Display and Sensor Business Group Materials, labor costs, depreciation, etc. 61,973,888,991.00 88.19% 50,827,910,258.00 89.82% 21.93%
Smart Systems Business Group Materials, labor costs, depreciation, etc. 16,598,309,921.00 23.62% 11,436,764,569.00 20.21% 45.13%
Healthcare Business Group Materials, labor costs, depreciation, etc. 416,009,475.00 0.59% 404,222,596.00 0.71% 2.92%
Other Materials, labor costs, depreciation, etc. 33,582,463.00 0.05% 19,378,863.00 0.03% 73.29%
Offset Materials, labor costs, depreciation, etc. -8,739,313,265.00 -12.44% -6,102,580,195.00 -10.77% -43.21%
Notes:
N/A
(6) Change in Scope of Consolidated Financial Statements for Reporting Period
√ Yes □ No
The scope of the consolidated financial statements for this Reporting Period has changed. And the relevant data exclusive of the five new subsidiaries are as follows:
Gross profit Sales revenue: YoY Cost of sales: YoY Gross profit margin:
Item Sales revenue Cost of sales
margin +/-% +/-% YoY +/-%
By operating division
Display and Sensor Business Group 82,636,083,813.00 61,973,888,991.00 25.00% 35.01% 21.93% 8.05%
Smart Systems Business Group 18,055,846,953.00 16,569,071,254.00 8.23% 44.41% 44.88% -0.29%
Healthcare Business Group 1,022,091,499.00 414,285,120.00 59.47% 12.66% 2.49% 4.02%
BOE Technology Group Co., Ltd. Annual Report 2017
Other 2,225,609,341.00 33,582,463.00 98.49% 21.27% 73.29% -0.45%
Offset -10,227,927,771.00 -8,739,313,265.00 14.55% 35.35% 43.21% -4.69%
By product category
Display and Sensor Business Group 82,636,083,813.00 61,973,888,991.00 25.00% 35.01% 21.93% 8.05%
Smart Systems Business Group 18,055,846,953.00 16,569,071,254.00 8.23% 44.41% 44.88% -0.29%
Healthcare Business Group 1,022,091,499.00 414,285,120.00 59.47% 12.66% 2.49% 4.02%
Other 2,225,609,341.00 33,582,463.00 98.49% 21.27% 73.29% -0.45%
Offset -10,227,927,771.00 -8,739,313,265.00 14.55% 35.35% 43.21% -4.69%
By operating segment
China 43,988,407,725.00 34,906,385,814.00 20.65% 19.67% 10.83% 6.33%
Other regions in Asia 44,260,377,203.00 30,278,819,001.00 31.59% 54.43% 48.18% 2.88%
Europe 2,185,981,332.00 1,915,308,668.00 12.38% 38.63% 38.86% -0.15%
America 3,198,611,737.00 3,072,165,773.00 3.95% 79.30% 128.53% -20.69%
Other regions 78,325,838.00 78,835,307.00 -0.65% -32.88% -15.01% -21.16%
(7) Major Change in Business Scope or Product or Service Range in Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
(8) Main Customers and Suppliers
Main customers:
Total sales to top five customers (RMB) 36,994,760,445.00
Total sales to top five customers as a percentage of the total sales for this Reporting
39.44%
Period (%)
Total sales to related parties among top five customers as a percentage of the total
0.00%
sales for this Reporting Period (%)
Information about top five customers
As a percentage of the total sales for this
No. Customer Sales amount (RMB)
Reporting Period (%)
1 Customer A 19,073,677,986.00 20.33%
2 Customer B 5,514,610,136.00 5.88%
3 Customer C 5,401,162,046.00 5.76%
4 Customer D 3,923,295,678.00 4.18%
5 Customer E 3,082,014,600.00 3.28%
Total -- 36,994,760,445.00 39.44%
Other information about the main customers
□ Applicable √ Not applicable
Main suppliers
Total purchases from top five suppliers (RMB) 8,094,543,550.00
Total purchases from top five suppliers as a percentage of the total purchases for this
11.52%
Reporting Period (%)
Total purchases from related parties among top five suppliers as a percentage of the
0.00%
total purchases for this Reporting Period (%)
Information about top five suppliers
As a percentage of the total purchases for
No. Supplier Purchase amount (RMB)
this Reporting Period (%)
1 Supplier A 2,802,103,170.00 3.99%
2 Supplier B 2,073,493,305.00 2.95%
3 Supplier C 1,207,513,311.00 1.72%
4 Supplier D 1,030,089,983.00 1.47%
5 Supplier E 981,343,781.00 1.40%
Total -- 8,094,543,550.00 11.52%
Other information about the main suppliers
BOE Technology Group Co., Ltd. Annual Report 2017
□ Applicable √ Not applicable
3. Expense
Unit: RMB
Item 2017 2016 Change Reason for material change
Increased accordingly as the sales
Selling expenses 2,591,925,798.00 1,984,361,921.00 30.62%
revenues increased
Administrative expenses 7,246,543,340.00 5,618,443,652.00 28.98% N/A
Finance costs 1,948,024,860.00 2,299,116,897.00 -15.27% N/A
4. Research and Development Expense
√ Applicable □ Not applicable
N/A
Details about R&D input:
Item 2017 2016 Change
Number of R&D personnel 17,141 13,270 29.17%
R&D personnel as a percentage in the total 27.42% 27.00% 0.42%
employees
R&D input (RMB) 6,972,095,396.00 4,139,435,892.00 68.43%
R&D input as a percentage in operating revenues 7.43% 6.01% 1.42%
Capitalized R&D input (RMB) 1,893,143,576.00 919,711,205.00 105.84%
Capitalized R&D input as a percentage in the total
27.15% 22.22% 4.93%
R&D input
Reason for any significant YoY change in the proportion of R&D expense in sales revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of the capitalized R&D expense and rationale
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2017 2016 Change
Subtotal of cash generated by operating activities 111,934,693,142.00 73,610,884,095.00 52.06%
Subtotal of cash used in operating activities 85,667,707,127.00 63,537,596,975.00 34.83%
Net cash flows from operating activities 26,266,986,015.00 10,073,287,120.00 160.76%
BOE Technology Group Co., Ltd. Annual Report 2017
Subtotal of cash generated by investing activities 33,347,868,918.00 34,686,752,663.00 -3.86%
Subtotal of cash used in investing activities 92,409,894,695.00 59,181,683,823.00 56.15%
Net cash flows from investing activities -59,062,025,777.00 -24,494,931,160.00 141.12%
Subtotal of cash generated by financing activities 66,143,493,674.00 44,117,048,127.00 49.93%
Subtotal of cash used in financing activities 33,218,121,485.00 17,975,955,326.00 84.79%
Net cash flows from financing activities 32,925,372,189.00 26,141,092,801.00 25.95%
Net increase in cash and cash equivalents -1,441,522,805.00 13,172,072,171.00 -110.94%
Explanation of why the data above varied significantly
□ Applicable √ Not applicable
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
□ Applicable √ Not applicable
III Non-Core Business Analysis
√ Applicable □ Not applicable
Unit: RMB
As a percentage of
Item Amount Source/reason Recurring or not
total profit (%)
Investment income 115,602,683.00 1.19% Gains on financial products No
Profit/Loss on fair
32,048,211.00 0.33% N/A No
value changes
Amount provided for inventory falling price
Asset impairment 2,229,524,682.00 22.89% No
impairment according to market conditions
Non-operating Governmental subsidies received in the
180,418,858.00 1.85% No
revenue Reporting Period
Non-operating
113,080,601.00 1.16% Loss on disposal of fixed assets No
expense
BOE Technology Group Co., Ltd. Annual Report 2017
IV Analysis of Assets and Liabilities
1. Material Change in Asset Composition
Unit: RMB
December 31, 2017 December 31, 2016 Change in
Item Percentage of Percentage of percentage Reason for material change
Value Value
total assets (%) total assets (%) (%)
Monetary funds 57,128,659,576.00 22.31% 58,152,817,223.00 28.35% -6.04% No
Accounts receivable 15,513,763,252.00 6.06% 16,191,791,617.00 7.89% -1.83% No
Inventories 8,957,719,381.00 3.50% 7,833,138,532.00 3.82% -0.32% No
Investment property 1,296,662,205.00 0.51% 1,192,932,896.00 0.58% -0.07% No
Increased investment in associated companies during the
Long-term equity investments 6,928,854,415.00 2.71% 1,356,111,395.00 0.66% 2.05%
Reporting Period.
Fixed assets 88,625,296,761.00 34.60% 69,947,586,967.00 34.10% 0.50% No
Increase of construction in progress because the newly
Construction in progress 50,761,250,426.00 19.82% 33,008,248,720.00 16.09% 3.73%
invested project was still not turned into fixed assets.
Short-term borrowings 3,249,736,430.00 1.27% 4,916,965,507.00 2.40% -1.13% Repaying part of bank loans during the Reporting Period.
Long-term borrowings 78,973,633,010.00 30.84% 49,885,166,211.00 24.32% 6.52% Increase of new project’s borrowings
Other current assets 15,924,433,978.00 6.22% 5,691,200,226.00 2.77% 3.45% Increase of financial products during the Reporting Period.
Accounts payable 16,205,788,698.00 6.33% 13,835,615,665.00 6.74% -0.41% No
Other accounts payable 15,264,806,774.00 5.96% 14,395,525,248.00 7.02% -1.06% No
Non-current liabilities due within The long-term borrowing was due and then converted into
9,109,708,511.00 3.56% 3,684,236,935.00 1.80% 1.76%
one year non-current liabilities during the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gains/losses on fair Cumulative fair value Allowance for Sold in
Purchased in
Item Opening balance value changes in changes charged to impairment for Reporting Closing balance
Reporting Period
Reporting Period equity Reporting Period Period
Financial assets
1. Financial assets at fair value through 0.00 0.00 0.00 0.00 0.00 0.00 0.00
profit/loss (excluding derivative
financial assets)
2.Derivative financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.Available-for-sale financial assets 394,236,151.00 0.00 102,183,379.00 0.00 141,558,280.00 0.00 527,750,536.00
Subtotal of financial assets 394,236,151.00 0.00 102,183,379.00 0.00 141,558,280.00 0.00 527,750,536.00
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 394,236,151.00 0.00 102,183,379.00 0.00 141,558,280.00 0.00 527,750,536.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Significant changes in the measurement attributes of the main assets in this Reporting Period
□ Yes √ No
BOE Technology Group Co., Ltd. Annual Report 2017
3. Restricted Asset Rights as of End of Reporting Period
Item Closing book value Reason for restriction
Monetary funds 9,215,371,993.00 As pledge for guarantee and as security deposits
Endorsed and transferred with right of recourse, as
Notes receivable 503,406,676.00
pledge for opening notes payable
Inventories 0.00 N/A
Fixed assets 56, 639,021,799.00 As mortgage for guarantee
Intangible assets 958,034,967.00 As mortgage for guarantee
Investment property 188,015,432.00 As mortgage for guarantee
Construction in progress 8,275,020,678.00 As mortgage for guarantee
Total 75,778,871,545.00 --
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Investments made in this Reporting Period
Investments made in the prior year (RMB) +/-%
(RMB)
5,781,001,277.00 501,072,666.00 1053.73%
2. Material Equity Investments Made in Reporting Period
□ Applicable √ Not applicable
3. Material Non-Equity Investments Ongoing in Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Profit/los
s on fair Sold
Cumulative fair Source of
Variety of Code of Name of Initial investment Accounting Opening book value value changes
Purchased in in this Profit/loss in
Closing book
measureme changes this Reporting Report this Reporting Accounting title investment
securities securities securities cost value charged to value
nt model in this Period ing Period
equity funds
Reportin Period
g Period
Domestic/overseas TPV Fair value Available-for-sal Self-owned
HK00903 134,658,158.00 28,763,373.00 0.00 -6,458,604.00 0.00 0.00 792,019.00 21,584,703.00
stock Technology method e financial asset funds
Domestic/overseas Electronic Fair value 129,715,503.0 Available-for-sal Self-owned
SH600658 90,160,428.00 0.00 62,320,748.00 0.00 0.00 2,062,875.00 108,996,372.00
stock Zone method 0 e financial asset funds
Domestic/overseas Bank of Fair value 148,067,613.0 Available-for-sal Self-owned
HK01963 120,084,375.00 0.00 10,884,385.00 0.00 0.00 7,378,692.00 130,968,760.00
stock Chongqing method 0 e financial asset funds
BlackRock
Global Fair value Available-for-sal Self-owned
Funds BLK 4,004,297.00 5,974,163.00 0.00 2,343,502.00 0.00 0.00 0.00 6,347,799.00
Allocation method e financial asset funds
Fund A2 USD
Domestic/overseas China Fair value Available-for-sal Self-owned
HK06066 70,041,364.00 69,367,469.00 0.00 -4,185,045.00 0.00 0.00 0.00 65,856,319.00
stock Securities method e financial asset funds
Domestic/overseas New Century Fair value Available-for-sal Self-owned
HK01518 141,558,280.00 0.00 0.00 37,279,591.00 141,558,280.00 0.00 0.00 178,837,871.00
stock Healthcare method e financial asset funds
Domestic/overseas Z-Obee Fair value Available-for-sal Self-owned
HK00948 0.00 0.00 0.00 246,566.00 0.00 0.00 0.00 246,566.00
stock Holdings Ltd. method e financial asset funds
BOE Technology Group Co., Ltd. Annual Report 2017
Other securities investments held at the
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
381,888,121.0
Total 560,506,902.00 -- 0.00 102,431,143.00 141,558,280.00 0.00 10,233,586.00 512,838,390.00 -- --
Disclosure date of the announcement about
the board’s consent for the securities N/A
investment
Disclosure date of the announcement about
the general meeting’s consent for the N/A
securities investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship
Company name with the Main business scope Registered capital Total assets Net assets Sales revenue Operating income Net income
Company
Investment construction, R&D,
Hefei BOE
Production, and sales of relevant
Optoelectronics Subsidiary 9,000,000,000.00 16,984,354,224.00 10,583,486,274.00 15,761,021,154.00 1,812,276,986.00 1,468,852,365.00
products of TFT-LCD and its
Technology Co., Ltd.
matching products.
Beijing BOE
Development and production of
Display Technology Subsidiary 17,882,913,500.00 25,807,289,633.00 20,956,085,272.00 18,822,624,217.00 1,664,491,577.00 1,386,066,820.00
TFT-LCD
Co., Ltd.
Investment construction, R&D,
Hefei Xinsheng
Production, and sales of relevant
Optoelectronics Subsidiary 19,500,000,000.00 33,649,856,477.00 22,588,249,026.00 13,407,247,490.00 1,882,249,506.00 1,594,702,999.00
products of TFT-LCD and its
Technology Co., Ltd.
matching products.
Investment construction, R&D,
Chongqing BOE
Production, and sales of relevant
Optoelectronics Subsidiary 19,226,000,000.00 41,538,306,008.00 23,808,597,959.00 18,883,561,426.00 4,471,188,027.00 3,772,498,662.00
products of TFT-LCD and its
Technology Co., Ltd.
matching products.
Subsidiaries obtained or disposed in this Reporting Period
BOE Technology Group Co., Ltd. Annual Report 2017
√ Applicable □ Not applicable
How the subsidiary was obtained or disposed in this Reporting
Subsidiary Effect on overall production and operation results
Period
Kunming BOE Display Technology Co., Ltd. Investing to establish No significant effects
Information about the main controlled and joint stock companies
N/A
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
IX Outlook for the Future Development of the Company
(I) Analysis of future environment
The 4th industrial revolution with the representative of internet of things, artificial intelligence, big data, life science and technology
etc is coming roughly. With the rapid application and development of related technologies, human society is stepping into a new era
which all things are perceived and all things are linked with each other intelligently. You can find display anywhere. New display
technology including AMOLED develops rapidly and quickly increases its market share. With the deep integration of life
technologies and IT, there is an opportunity for breakthroughs in human health and longevity.
(II) Future development of the Company
In the year 2018, many opportunities and changes will coexist. Although the global economy is expected to recover continuously, the
specific situation will become much more complicated. For example, the trade protectionism has spread extensively; the geopolitical
situation has become increasingly intense; the global monetary policies have been tightened; the tax reform recently conducted by the
United States may exert a relatively strong impact on the global economic layout. However, it is expected that Chinese economy
would transit from its high-speed growth stage into the high-quality development stage. As the 18th National Congress of the
Communist Party of China was successfully held, new energy will be added into China’s economy, and various strategies including
“Made in China 2015” and “Digital China” will bring new growth points for all industries. In the display industry, as the release of
new capacity of the semiconductor display, the competition will become much fiercer. Nevertheless, as stimulated by various factors
including the development of large-sized TV sets, the popularization of full-display phones, the rapid development of new
application markets and the high expectation for the recovery of global economy, the display market demand is expected to realize a
robust growth. As predicted by relevant market research institutes, the semiconductor display demand in 2018 will achieve a highest
annual increase since 2014. As the development of AI and big data technology, all industries have accelerated their entry into the age
of IoT, creating many development opportunities for the company’s integration of software and hardware and innovative
transformation. The year 2018 marks the implementation of Wooden Sword Strategy, and will be critical for the company to catch up
with the trend of IoT and seize new market opportunities. On this basis the company will further transform and upgrade its businesses
by means of the integration of software and hardware, the integration of applications and the servitization transformation.
2018 is the first year for the company’s Wooden Sword Strategy. In order to speed up the business transformation, the company has
clearly defined its overall strategy in 5 years from 2018 to 2022, completely promoted the innovative transformation of DSH
Business and upgraded the business in the age of IoT. To be specific:
Display and Sensor Business Group (DBG): will make concerted effort with partners to improve the user experience of the
information interaction interface and its comprehensive upgrade. Special attention will also be paid to develop five major traditional
application market segments (TV Sets, Display, Notebook, Tablet PC, and Mobile Phone) in order to increase the market shares.
Meanwhile, various new application market segments will also be expanded in order to realize a transformation into the field of
transparency, on-board displays, industrial control, medical industry, mirror surface, wearable devices, splicing technology, virtual
display, and sensors etc. and accelerate the strategic layout of IoT. The following three aspects will be highlighted: Firstly, the 8425
industrial chain will be fully established to guide the upgrading of the display interface in the IoT age and construct the 8K UHD
Display ecosystem. We will work together with the worldwide components & parts, complete machine, software, content,
communication device partners and operators to create a win-win situation. Secondly, the flexible OLED business layout will also be
accelerated to usher in the new age for flexible display. The company will make full use of OLED technical advantages, positively
make an overall arrangement for the flexible mobile products, develop various new application products (wearable devices and
medical devices etc.) and satisfy the smart interface’s multilevel demands. Thirdly, by taking advantage of the basis and advantages
of the semiconductor display technology and making revolutionary innovations, a rapid breakthrough will be made in the non-display
field (sensor devices).
Smart Systems Business Group (SBG): has spared no effort to establish the technical platform which focuses on the display, sensors,
BOE Technology Group Co., Ltd. Annual Report 2017
AI and Big Data, and the users will be provided with various cloud platform-based innovative products and service in five lines of
business (smart manufacturing, Digital Art, smart retail systems, smart vehicle-mounted systems, and smart energy systems).
Specifically, by building a series of automatic smart factories, the smart manufacturing business will present the clients with a
brand-new service experience, and provide innovators and consumers with customized services and innovative counseling services.
The Digital Art and smart retail systems are based on AI and the big data technology to establish two IoT platforms, namely the
Digital Art IoT depending on the end product “Painted Screen” and the smart retail IoT based on RFID. In terms of the smart
vehicle-mounted systems, the company has ranked first in the world on its Passive vehicle-mounted display market, and almost all
mainstream automobile brands in the world have become the company’s clients. The company will seize the opportunity posed by the
reform in the automobile industry and occupy market for the vehicle-mounted display systems and the complete automobile
electronic system by virtue of various innovative products including head-up displays and molecular antennas. In light of the smart
energy systems, special effort will be made to promote the application of AI and the big data technology in the field of energies and
set up the smart micro-grid platform to materialize the high-efficiency interconnection between the power generation side and the
power consumption side, providing the users with clean, transparent and high-efficiency energy services.
Healthcare Business Group (HBG): aims at providing corresponding health and medical services covering the full life circle. The
existing display, sensors, AI and big data technology will be applied to make trans-boundary innovations in association with
corresponding medical and life science and technology. Meanwhile, emphasis will be placed on the digital hospitals to develop
mobile healthcare, digital hospitals, regenerative medicine, life insurance and healthcare centers, establish the integrated health and
medical service system ranging from prevention, diagnosis & treatment, recovery to life after retirement, and benefit the human
being’s health and happiness.
X Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
1. In this Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor Index to main inquiry information
01/04/2017 One-on-one meeting Institution
01/05/2017 One-on-one meeting Institution
01/09/2017 One-on-one meeting Institution
01/12/2017 One-on-one meeting Institution Main contents:
01/12/2017 One-on-one meeting Institution 1. the performances of the Company and
01/19/2017 One-on-one meeting Institution the basic situations of the industry
2. main operating information of the
02/08/2017 One-on-one meeting Institution
Company
02/08/2017 By phone Institution
3. innovations of technology and
02/16/2017 By phone Institution products
02/20/2017 By phone Institution 4. future strategy layout
02/21/2017 One-on-one meeting Institution For details, see www.cninfo.com.cn
02/28/2017 One-on-one meeting Institution
02/28/2017 One-on-one meeting Institution
02/28/2017 By phone Institution
BOE Technology Group Co., Ltd. Annual Report 2017
02/28/2017 One-on-one meeting Institution
02/28/2017 By phone Institution
3/07/2017 One-on-one meeting Institution
03/14/2017 One-on-one meeting Institution
03/14/2017 One-on-one meeting Institution
03/20/2017 One-on-one meeting Institution
03/22/2017 By phone Institution
03/23/2017 One-on-one meeting Institution
03/28/2017 One-on-one meeting Institution
04/24/2017 By phone Institution
04/25/2017 One-on-one meeting Institution
04/26/2017 One-on-one meeting Institution
04/27/2017 One-on-one meeting Institution
05/02/2017 One-on-one meeting Institution
05/04/2017 One-on-one meeting Institution
05/08/2017 One-on-one meeting Institution
05/11/2017 One-on-one meeting Institution
05/15/2017 One-on-one meeting Institution
05/23/2017 One-on-one meeting Institution
06/07/2017 By phone Institution
06/12/2017 One-on-one meeting Institution
06/13/2017 One-on-one meeting Institution
06/20/2017 By phone Institution
06/22/2017 By phone Institution
06/26/2017 By phone Institution
06/27/2017 By phone Institution
06/29/2017 One-on-one meeting Institution
07/03/2017 One-on-one meeting Institution
07/06/2017 One-on-one meeting Institution
07/07/2017 By phone Institution
07/07/2017 By phone Institution
07/11/2017 One-on-one meeting Institution
07/11/2017 One-on-one meeting Institution
07/12/2017 One-on-one meeting Institution
BOE Technology Group Co., Ltd. Annual Report 2017
07/13/2017 One-on-one meeting Institution
08/21/2017 One-on-one meeting Institution
08/29/2017 One-on-one meeting Institution
08/31/2017 By phone Institution
09/05/2017 One-on-one meeting Institution
09/11/2017 One-on-one meeting Institution
09/15/2017 By phone Institution
09/18/2017 One-on-one meeting Institution
09/19/2017 By phone Institution
09/20/2017 One-on-one meeting Institution
09/20/2017 By phone Institution
09/21/2017 One-on-one meeting Institution
09/22/2017 One-on-one meeting Institution
09/25/2017 One-on-one meeting Institution
09/28/2017 One-on-one meeting Institution
09/29/2017 One-on-one meeting Institution
10/17/2017 One-on-one meeting Institution
10/19/2017 One-on-one meeting Institution
10/20/2017 By phone Institution
10/23/2017 One-on-one meeting Institution
10/30/2017 One-on-one meeting Institution
10/31/2017 One-on-one meeting Institution
11/01/2017 One-on-one meeting Institution
11/03/2017 One-on-one meeting Institution
11/15/2017 One-on-one meeting Institution
11/17/2017 One-on-one meeting Institution
11/20/2017 One-on-one meeting Institution
11/21/2017 One-on-one meeting Institution
11/22/2017 One-on-one meeting Institution
11/24/2017 One-on-one meeting Institution
11/28/2017 One-on-one meeting Institution
11/29/2017 One-on-one meeting Institution
11/30/2017 One-on-one meeting Institution
12/05/2017 One-on-one meeting Institution
BOE Technology Group Co., Ltd. Annual Report 2017
12/06/2017 One-on-one meeting Institution
12/07/2017 One-on-one meeting Institution
12/08/2017 One-on-one meeting Institution
12/11/2017 One-on-one meeting Institution
12/13/2017 One-on-one meeting Institution
12/14/2017 One-on-one meeting Institution
12/25/2017 One-on-one meeting Institution
12/27/2017 One-on-one meeting Institution
12/28/2017 One-on-one meeting Institution
Times of visit
Number of visiting institutions
Number of visiting individuals
Number of other visitors
Significant undisclosed information disclosed,
No
revealed or leaked
BOE Technology Group Co., Ltd. Annual Report 2017
Part V Significant Events
I Profit Distribution and Converting Capital Reserve into Share Capital for Common
Shareholders
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, for common shareholders in this
Reporting Period
□ Applicable √ Not applicable
Plans/proposals for profit distribution and converting capital reserve into share capital for common shareholders for the past three
years (including this Reporting Period):
For the first half of 2015, based on the total shares of 35,153,067,743 (after deducting the bought-back B-shares), the Company
distributed a cash dividend of RMB0.10 (tax inclusive) per 10 shares to all shareholders, representing a total distribution of
RMB351,530,677.43, accounting for 75.63% of its undistributed profit. No bonus shares were granted. Nor was any capital reserves
converted into share capital.
For 2015, based on the total shares of 35,153,067,743.00, the Company distributed, with the undistributed profit, a cash dividend of
RMB0.10 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB351,530,677.43,
representing 72.21% of the total undistributed profit. And no bonus share was granted, nor was any capital reserve converted into
share capital.
For 2016, based on the total shares of 34,953,874,916 (excluding the A and B shares bought back) (The total share base for the
Company’s profit distribution proposal may change). Since the Company is carrying out a plan to buy back some public shares, the
total share base for this profit distribution plan shall be subject to the figure in the register of shareholders on the relevant book
closure date.）, the Company intended to distribute, with the undistributed profit, a cash dividend of RMB0.30 (tax inclusive) per 10
shares to all its shareholders, with the total amount to be distributed reaching RMB1,048,616,247.48, representing 70.22% of the
total undistributed profit. And no bonus shares would be granted, nor would any capital reserve be converted into share capital.
For 2017, based on the total shares of 34,798,398,763, the Company distributed, with the undistributed profit, a cash dividend of
RMB0.50 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB1,739,919,938.15,
representing 98.56% of the total undistributed profit. And no bonus share was granted, nor was any capital reserve converted into
share capital.
Cash dividend distribution of the Company to common shareholders over the past three years (including this Reporting Period)
Unit: RMB
Net profit Proportion in net
attributable to profit attributable to
common common
Cash dividends shareholders of the shareholders of the Ratio of cash
Cash dividends in
Year dividends in other
(tax included) Company in the Company in the other forms
forms
consolidated consolidated
statements for the statements for the
year year (%)
2017 1,739,919,938.15 7,567,682,493 22.99% 0.00 0.00%
2016 1,046,578,275.99 1,882,571,674.00 55.59% 0.00 0.00%
BOE Technology Group Co., Ltd. Annual Report 2017
2015 703,061,354.86 1,636,270,488.00 42.97% 0.00 0.00%
Indicate by tick mark whether the Company made profit in this Reporting Period and the profit distributable to common shareholders
of the Company was positive, but it did not put forward a proposal for cash dividend distribution to its common shareholders
□ Applicable √ Not applicable
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for this
Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share)
Dividend for every 10 shares (RMB) (tax inclusive) 0.50
Additional shares to be converted from capital
reserve for every 10 shares (share)
Total shares as the basis for the profit distribution 34,798,398,763
proposal (share)
Total cash dividends (RMB) (tax included) 1,739,919,938.15
Distributable profit (RMB) 1,765,291,136.00
Percentage of cash dividends in the total profit to 100.00%
be distributed (%)
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash
dividends shall be 20% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
Based on the total shares of 34,798,398,763, the Company planned to distribute a cash dividend of RMB0.50 (tax inclusive) per 10
shares to the shareholders, with no share dividend converted either from retained earnings or from capital reserves. The said
proposal is in compliance with the Company’s Articles of Association and relevant approval procedure, and the independent
directors have expressed their independent opinion on the proposal, which fully protects the legal rights and interests of the
minority investors.
BOE Technology Group Co., Ltd. Annual Report 2017
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirer, as well as the Company and Other Commitment
Makers, Fulfilled in this Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Date of commitment Period of
Commitment Commitment maker Type of commitment Contents Fulfillment
making commitment
Commitments made in share reform
Commitments made in acquisition documents or
shareholding alteration documents
Commitments made in time of asset restructuring
Committed that the
Beijing State-owned
shares acquired from
Capital Operation and
purchasing would not
Management Center,
be transferred from
Hefei Jianxiang Restricted shares
Commitments made in time of IPO or refinancing the first date of 04/08/2014 36 months Fulfilled
Investment Co., Ltd., commitments
issuing the newly
Chongqing Capital
increased shares of
Optoelectronics
the issuer within 36
Investment Co., Ltd.
months
Commitments concerning stock ownership incentive
Other commitments made to minority interests
Fulfilled on time or not Yes
Specific reasons for failing to fulfill commitments on
No
time and plans for next step
BOE Technology Group Co., Ltd. Annual Report 2017
2. Where there had been an Earnings Forecast for an Asset or Project and this Reporting Period was still
within the Forecast Period, Explain why the Forecast has been Reached for this Reporting Period.
□Applicable √ Not applicable
IV Occupation of the Company’s Funds by the Controlling Shareholder or its Related Parties
for Non-operating Purposes
□ Applicable √ Not applicable
No such cases in this Reporting Period.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) regarding the “Modified Auditor’s Report” Issued by the CPAs Firm for
this Reporting Period
□ Applicable √ Not applicable
VI YoY changes in accounting policies, estimations and methods
√ Applicable □ Not applicable
The MOF issued the Accounting Standards for Business Enterprises No. 42—Non-current Assets and Disposal Groups Held for Sale
and Discontinued Operations (ASBE 42) and the revised Accounting Standards for Business Enterprises No. 16 - Government Grants
(ASBE 16 (2017)) in April and May 2017 respectively. The effective date of ASBE 42 and ASBE 16 (2017) are 28 May and 12 June
2017.
In addition, the MOF issued the Notice on Issuing the Revised Formats of Financial Statements for General Enterprises (Caikuai
[2017] No.30) in December 2017. The Company has prepared its financial statements for the year ended 31 December 2017 in
accordance with the Notice.
Impacts of the adoption of the above accounting standards and regulations are as follows:
(i) Held for sale and discontinued operations
The adoption of this standard has no significant impact on the Group's financial position and operating performance.
(ii) Government grants
In accordance with ASBE 16 (2017), the Company has reviewed the government grants on 1 January 2017 and updated
corresponding accounting policies using prospective application method. The accounting treatment and disclosure requirements for
government grants in 2016 are still subject to relevant enterprise accounting standards before the issuance of ASBE 16 (2017).
Impacts of the adoption of this standard are as follows:
BOE Technology Group Co., Ltd. Annual Report 2017
- Certain government grants related to assets were changed from deferred income to write off the book value of related assets;
- Certain government grants related to income are included in the income statement, and changed from non-operating income to
other income or used to write off related cost based on the nature of economic businesses in respect of those related to daily activities
of the Company, or included in non-operating income and expense in respect of those not related to daily activities of the Company.
(iii) Gains from disposal of assets
The Company has prepared its financial statements for the year ended 31 December 2017 in accordance with Caikuai [2017] No.30.
Comparative figures have been adjusted retrospectively. The adoption of Caikuai [2017] No.30 has no material effect on the financial
position and operating performance of the Company.
According to this standard, the Company has added a separate line item “Gains from asset disposals” in the income statement to
present gains or losses arising from disposals of those classified as non-current assets (excluding financial instruments, long-term
equity investments and investment property) or disposal groups, and gains or losses arising from disposals of those not classified as
fixed assets, construction in progress and intangible assets. The above gains or losses were previously presented in “Non-operating
income” or “Non-operating expenses”.
VII Retroactive Restatement due to Correction of Material Accounting Errors in this
Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VIII YoY Changes in the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
One newly established second level subsidiary of the Company for 2017: Kunming BOE Display Technology Co., Ltd.
IX Engagement and Disengagement of CPAs Firm
Current CPAs firm
Name of the domestic CPAs firm KPMG Huazhen LLP
The Company’s payment for the domestic CPAs firm
(RMB’0,000)
Consecutive years of the audit service provided by the domestic
13 years
CPAs firm
Names of the certified public accountants from the domestic
Zhang Huan and Su Xing
CPAs firm
BOE Technology Group Co., Ltd. Annual Report 2017
Consecutive years of the audit service provided by the certified
Zhang Huan 1 year and Su Xing 5 years
public accountants from the domestic CPAs firm
Name of the foreign CPAs firm (if any) N/A
Consecutive years of the audit service provided by the foreign
N/A
CPAs firm (if any)
Names of the certified public accountants from the foreign CPAs
N/A
firm (if any)
Consecutive years of the audit service provided by the certified
N/A
public accountants from foreign CPAs firm (if any)
Indicate by tick mark whether the CPAs firm was changed during this Reporting Period.
□ Yes √ No
CPAs firm, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
The Company hired KPMG Huazhen LLP as the internal control auditor for the Current Year at the cost of RMB2.55 million.
X Possibility of Listing Suspension or Termination after Disclosure of this Report
□ Applicable √ Not applicable
XI Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
XII Significant Litigations and Arbitrations
√ Applicable □ Not applicable
Amount involved in
Progress of the Enforcement on the
Basic information of the the lawsuit Forming the estimated Trial result and influence
lawsuit judgment of the lawsuit Disclosure date Disclosure index
lawsuit (arbitration) (arbitration) liabilities or not of the lawsuit (arbitration)
(arbitration) (arbitration)
(RMB’0,000)
Jurisdiction
objection put
forward by LeTV
Mobile to Beijing
High People’s
Disputes case of sales contract
Court was For details, see
that BOE Technology (HK)
rejected, and Semi-annual Report
Limited sued LeTV Mobile
LeTV Mobile had 2017 of BOE
Intelligent Information
filed a lawsuit Technology Group
Technology (Beijing) Co., Ltd, 28,471.43 No Unknown N/A 08/29/2017
before supreme Co., Ltd. disclosed
LeTV Holdings (Beijing) Co.,
people’s court on on
Ltd., Le Sai Mobile
jurisdiction www.cninfo.com.cn.
Technology (Beijing) Co., Ltd.
objection. At on August 29, 2017
and Mr. JiaYueting
present, the final
verdict is waiting
to be to be made
by supreme
people’s court.
Litigations for 2017 (including
carryforwards in previous 4,804.02 No N/A N/A N/A N/A N/A
years )
BOE Technology Group Co., Ltd. Annual Report 2017
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XIV Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Implementation of any Equity Incentive Plan, Employee Stock Ownership Plan or other
Incentive Measures for Employees
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVI Significant Related-party Transactions
1. Related-party Transactions Relevant to Routine Operation
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Related Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related Transactions
√ Applicable □ Not applicable
No
Index to the public announcements about the said related-party transactions disclosed
BOE Technology Group Co., Ltd. Annual Report 2017
Title of public announcement Disclosure date Disclosure website
Announcement on the Prediction of 2017 Annual
04/25/2017 www.cninfo.com.cn
Routine Related Transaction
XVII Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
√ Applicable □ Not applicable
Explanation to leasing
1. The fixed assets rent financed by leasing in our group are our youth apartment used for staff dormitory.
2. The group sold and leased back part of the machinery equipment and construction in progress. The sale of assets and lease
transactions are related to each other, and there is almost no doubt that the group will repurchase them after expiry of the lease.
The project whose profit and loss brought for the company can reach above 10% of the total profit during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
2. Significant Guarantees
√ Applicable □ Not applicable
(1) Guarantees Provided by the Company
Unit: RMB’0,000
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Disclosure date of Actual occurrence date Guarantee for
Actual guarantee Due or
Guaranteed party the guarantee line Line of guarantee (date of agreement Type of guarantee Term of guarantee a related party
amount not
announcement signing) or not
No
Guarantees provided by the Company for its subsidiaries
Disclosure date of Actual occurrence date Guarantee for
Actual guarantee Due or
Guaranteed party the guarantee line Line of guarantee (date of agreement Type of guarantee Term of guarantee a related party
amount not
announcement signing) or not
Hefei BOE Photoelectric Joint liability
08/14/2014 731,955 03/12/2015 206,387 07/23/2010 - 07/23/2019 No No
Technology Co., Ltd. guarantee
Hefei XinSheng
Joint liability
Photoelectric Technology 08/14/2014 1,208,827 01/15/2015 757,967 01/06/2014 – 01/06/2022 No No
guarantee
Co., Ltd.
Ordos YuanSheng Joint liability
04/02/2013 463,642 05/22/2013 293,640 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd. guarantee
Ordos YuanSheng
08/14/2014 463,642 09/30/2014 293,640 Pledge 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd.
Ordos YuanSheng 11/30/2016 544,746 03/15/2017 359,461 Joint liability 03/17/2017 – 03/17/2025 No No
BOE Technology Group Co., Ltd. Annual Report 2017
Photoelectric Co., Ltd. guarantee
Chengdu BOE
Joint liability
Photoelectric Technology 04/25/2017 2,244,479 08/30/2017 1,251,944 09/06/2017 -09/06/2027 No No
guarantee
Co., Ltd.
Chengdu BOE
Joint liability Opening date of the letter
Photoelectric Technology 04/25/2017 450,000 08/30/2017 171,000 No No
guarantee of guarantee - 07/31/2023
Co., Ltd.
Chongqing BOE
Joint liability
Photoelectric Technology 08/14/2014 1,390,897 09/29/2014 1,288,617 11/05/2014 - 11/05/2022 No No
guarantee
Co., Ltd.
Chongqing BOE
Joint liability Opening date of the letter
Photoelectric Technology 08/14/2014 300,000 05/25/2015 75,000 No No
guarantee of guarantee - 12/31/2020
Co., Ltd.
Hefei BOE Display Joint liability
12/01/2016 1,625,361 08/30/2017 1,430,133 09/07/2017 - 09/07/2025 No No
Technology Co., Ltd. guarantee
Fuzhou BOE Photoelectric Joint liability
12/10/2015 1,303,256 11/08/2016 1,075,069 12/19/2016 - 12/19/2024 No No
Technology Co., Ltd. guarantee
Fuzhou BOE Photoelectric Joint liability Opening date of the letter
12/10/2015 300,000 11/08/2016 228,000 No No
Technology Co., Ltd. guarantee of guarantee - 12/28/2023
Total actual guarantee amount for
Total guarantee line for subsidiaries approved
2,694,479 subsidiaries during the Reporting Period 2,827,117
during the Reporting Period (B1)
(B2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
11,108,162 subsidiaries at the end of the Reporting 7,137,217
the end of the Reporting Period (B3)
Period (B4)
Guarantees between subsidiaries
Guaranteed party Disclosure date of Line of guarantee Actual occurrence date Actual guarantee Type of guarantee Term of guarantee Due or Guarantee for
BOE Technology Group Co., Ltd. Annual Report 2017
the guarantee line (date of agreement amount not a related party
announcement signing) or not
Ordos YuanSheng
04/02/2013 463,642 05/22/2013 293,640 Pledge 06/17/2013 - 06/09/2021 No No
Photoelectric Co., Ltd.
Huanda Trading (Hebei) Joint liability
N/A 14,600 05/24/2017 14,570 06/15//2017 - 01/16/2029 No No
Co., Ltd. guarantee
Guangtai Solar Energy
Joint liability
Technology (Suzhou) Co., N/A 5,450 12/20/2017 5,345 12/20/2017 - 04/06/2027 No No
guarantee
Ltd
Baier New Energy
Joint liability
Technology (Ningyang) N/A 12,800 10/23/2017 12,800 10/23/2017 - 10/23/2032 No No
guarantee
Co., Ltd
Henghui Investment (Suixi) Joint liability
N/A 25,418 12/01/2017 25,418 12/01/2017 – 12/01/2032 No No
Co., Ltd. guarantee
Yangyuan Photovoltaic
Joint liability
Power Generation N/A 4,552 09/11/2017 4,552 09/11/2017 – 09/11/2027 No No
guarantee
(Huanggang) Co., Ltd
Yaoguang New Energy Joint liability
N/A 4,192 10/31/2017 4,192 10/31/2017 – 10/31/2027 No No
(Shouguang) Co., Ltd guarantee
Suzhou Industrial Park
Joint liability
Taijing Photovoltaic Co., N/A 3,484 12/01/2017 3,484 12/01/2017 – 12/01/2027 No No
guarantee
Ltd
Qingmei Solar Energy
Joint liability
Technology (Lishui) Co., N/A 4,678 12/21/2017 4,678 12/21/2017 – 12/21/2027 No No
guarantee
Ltd
Qinghong Solar Energy Joint liability
N/A 2,374 12/21/2017 2,374 12/21/2017 – 12/21/2027 No No
Technology (Jinhua) Co., guarantee
BOE Technology Group Co., Ltd. Annual Report 2017
Ltd
Qinghui Solar Energy
Joint liability
Technology (Jinhua) Co., N/A 3,666 12/15/2017 3,666 12/15/2017 – 12/15/2027 No No
guarantee
Ltd
Rongke New Energy Joint liability
N/A 1,400 12/18/2017 1,400 12/18/2017 – 12/18/2029 No No
(Hefei) Co., Ltd guarantee
Tianchi New Energy Joint liability
N/A 1,100 12/18/2017 1,100 12/18/2017 – 12/18/2029 No No
(Hefei) Co., Ltd guarantee
Qinghao Solar Energy
Joint liability
Technology (Jinhua) Co., N/A 890 12/18/2017 890 12/18/2017 – 12/18/2029 No No
guarantee
Ltd
Xiangqing Solar Energy
Joint liability
Technology (Dongyang) N/A 3,476 12/18/2017 3,476 12/18/2017 – 12/18/2029 No No
guarantee
Co., Ltd
Qingyue Solar Energy
Joint liability
Technology (Wuyi) Co., N/A 960 12/18/2017 960 12/18/2017 – 12/18/2029 No No
guarantee
Ltd
Qingyou Solar Energy
Joint liability
Technology (Longyou) Co., N/A 2,210 12/18/2017 2,210 12/18/2017 – 12/18/2029 No No
guarantee
Ltd
Qingfan Solar Energy
Joint liability
Technology (Quzhou) Co., N/A 1,855 12/18/2017 1,855 12/18/2017 – 12/18/2029 No No
guarantee
Ltd
Anhui BOE Energy Joint liability
N/A 13,575 12/27/2017 13,575 12/27/2017 – 12/27/2029 No No
Investment Co., Ltd guarantee
Taihang Electric Power Joint liability
N/A 600 12/19/2017 600 12/19/2017 – 12/18/2025 No No
Technology (Ningbo) Co., guarantee
BOE Technology Group Co., Ltd. Annual Report 2017
Ltd
Guoji Energy (Ningbo) Co., Joint liability
N/A 2,740 12/19/2017 2,740 12/19/2017 – 12/18/2025 No No
Ltd guarantee
Total actual guarantee amount for
Total guarantee line for subsidiaries approved
110,020 subsidiaries during the Reporting Period 110,020
during the Reporting Period (C1)
(C2)
Total actual guarantee balance for
Total approved guarantee line for subsidiaries at
110,020 subsidiaries at the end of the Reporting 109,885
the end of the Reporting Period (C3)
Period (C4)
Total guarantee amount (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved during the Total actual guarantee amount during
2,804,499 2,937,137
Reporting Period (A1+B1+C1) the Reporting Period (A2+B2+C2)
Total actual guarantee balance at the
Total approved guarantee line at the end of the
11,218,182 end of the Reporting Period 7,247,102
Reporting Period (A3+B3+C3)
(A4+B4+C4)
Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company 85.45%
Of which:
Amount of guarantees provided for shareholders, the actual controller and their related parties
(D)
Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset
87,566
ratio over 70% (E)
Portion of the total guarantee amount in excess of 50% of net assets (F) 3,006,611
Total amount of the three kinds of guarantees above (D+E+F) 3,006,611
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
BOE Technology Group Co., Ltd. Annual Report 2017
Explanation on guarantee that adopts complex method: N/A
(2) Illegal Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Entrusted Cash Management
(1) Entrusted Cash Management
√ Applicable □ Not applicable
Overviews of entrusted cash management during the Reporting Period
Unit: RMB’0,000
Specific type Capital resources Amount incurred Undue Balance Overdue amount
Bank financial products Self-owned funds 4,027,300 975,000
Total 4,027,300 975,000
Note: The company’s general meeting of shareholders approves entrusted financial management quota of RMB 10 billion, which can
be recycled
Particulars of entrusted cash management with single significant amount or low security, bad liquidity, and no capital preservation
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for
entrusted asset management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in this Reporting Period.
4. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVIII Social Responsibilities
1. Social Responsibilities Taken
BOE will formulate and issue its Corporate Social Responsibility Report every year, and 2017 Annual BOE Social Responsibility
Report is the 8th edition report disclosed by BOE. Please view and download such report via www.boe.com or www.cninfo.com.cn.
BOE Technology Group Co., Ltd. Annual Report 2017
2. Targeted Measures Taken to Help People Lift themselves out of Poverty
(1) Plan for Targeted Measures
In response to the national targeted poverty alleviation policy, BOE in 2018 will mainly reply on educational activities and the
industrial development to alleviate the poverty situation, and positively promote the implementation of various non-profit educational
projects (including “Light Up Your Growth” and “Dream Space”) and the poverty alleviation project based on the PV industry.
(2) Outline of Targeted Measures in the Reporting Period
In 2017, BOE implemented various educational projects to alleviate the poverty including “Light Up Your Growth”, “Yulu Project”
and “Dream Space”, subsidize the poverty-stricken students and improve the educational resources investment in various
poverty-stricken areas (RMB 500,000 was invested in the year). In addition, BOE has also established the Volunteer Service system
covering all entities, and BOE volunteers have earnestly practiced what they advocate and spread their love, kindness and faith
nationwide. In 2017, BOE donated RMB 1 million to China Volunteer Service Foundation for the purpose of supporting the
development of public welfare and the volunteer service career.
(3) Results of Targeted Measures
Indicator Measurement unit Number/Progress
I. General condition —— ——
Of which: 1. capital RMB’0,000
2. materials converted into cash RMB’0,000
II. Itemized investment —— ——
1. Out of poverty by industrial development —— ——
2. Out of poverty by transferring
—— ——
employment
3. Out of poverty by relocating —— ——
4. Out of poverty by education —— ——
Of which: 4.1 invested amounts to subsidize
RMB’0,000
poor students
4.2 numbers of poor students
Person 2,500
subsidized
4.3 improve the invested amounts n
RMB’0,000
educational resources of poor areas
5. Out of poverty by improving health —— ——
6. Out of poverty by protecting ecological
—— ——
environment
7. Subsidy for the poorest —— ——
8. Social poverty alleviation —— ——
BOE Technology Group Co., Ltd. Annual Report 2017
9. Other items —— ——
III. Received awards(contents and rank) —— ——
(4) Subsequent Targeted Measure Plans
In 2018, BOE will continue the implementation of various educational projects including “Light up Your Growth” and “Dream
Space”, pay special attention to the mental health of stay-at-home children, conduct various activities such as the donation of goods
and materials, the volunteer service and the online educational curriculum, and gradually enlarge the coverage scale of various
projects based on various locations of BOE Production Lines. Moreover, BOE will rely on its own advantages in the field of PV
energy to boost the PV poverty alleviation project, assist the rural poor households to increase their income and enhance their
abilities in helping themselves.
BOE Technology Group Co., Ltd. Annual Report 2017
3. Particulars Relevant to Environmental Protection
Is the Company or any of its subsidiaries a heavily polluting business identified by the environmental protection authorities of China?
Yes
Quantity Distribution Executed
Name of Main Total Approved Excessive
Discharge of Information Emission Emission
Name of Company or subsidiary Pollutant and Weight of Total Weight of Emission
Method Emission of Emission Concentration Standard of
Distinctive Pollutant Emission (t) Emission (t) Condition
Outlet Outlet Pollutant
COD South gate 233mg/L 500mg/L 345.91tons 702.68 tons
of factory,
Beijing BOE Optoelectronics Technology Co.,
2 northwest None
Ltd. Ammonia nitrogen 28.1 mg/L 45 mg/L 50.4 tons 55.93 tons
corner of
factory
The 4.5th generation TFT-LCD production line of COD 231.39mg/L 500mg/L 244.62 tons 490.51 tons
North side
Chengdu BOE Optoelectronics Technology Standard 1 None
Ammonia nitrogen of factory 20.45mg/L 45 mg/L 21.62 tons 25.249 tons
Co., Ltd. emission
after
COD Northwest 46.27mg/L 380mg/L 168.87 tons 1059 tons None
Hefei BOE Optoelectronics Technology Co., being
1 corner of
Ltd. Ammonia nitrogen treated by 4.84mg/L 30mg/L 18.35 tons 99.2 tons None
factory
sewage
COD East gate of 128.84mg/L 500mg/L 597.04 tons 1618.8 tons None
treatment
Beijing BOE Display Technology Co., Ltd.
Ammonia nitrogen system factory 14.07mg/L 45 mg/L 65.2 tons 134.4 tons None
COD Northeast 55.44 mg/L 380mg/L 286.08 tons 1621.97 tons None
Hefei Xinsheng Optoelectronics Technology Co.,
1 gate of
Ltd. Ammonia nitrogen 12.14 mg/L 30mg/L 62.64 tons 128.08 tons None
factory
COD North side 32.6mg/L 500mg/L 86.2 tons 713.81 tons None
Erdos Yuansheng Optoelectronics Co., Ltd.
Ammonia nitrogen of factory 1.19mg/L 45mg/L 3.14 tons 76.82 tons None
BOE Technology Group Co., Ltd. Annual Report 2017
The 6th generation flexible AMOLED production COD 11.03 mg/L 500mg/L 14.4 tons 2004.15 tons None
North side
line of Chengdu BOE Optoelectronics
Ammonia nitrogen of factory 3.25 mg/L 45 mg/L 4.27 tons 216.81 tons None
Technology Co., Ltd.
Chongqing BOE Optoelectronics Technology COD South side 84.18mg/L 400mg/L 499.14 tons 1861.24 tons None
Co., Ltd. Ammonia nitrogen of factory 13mg/L 30mg/L 77.78 tons 142.27 tons None
COD Northeast 58.07 mg/L 500mg/L 217.08 tons 510.35 tons None
Fuzhou BOE Optoelectronics Technology Co.,
1 side of
Ltd. Ammonia nitrogen 3.88 mg/L 45 mg/L 13.74 tons 68.05 tons None
factory
Construction of pollution prevention equipment and operation condition
During report period, the Company did not have important environmental problem. The Company built strict environmental management system, and established internal organizational
structure to supervise overall environmental performance of the Company, formulated environmental management regulations and targets, carried out regular supervision for the environmental
management condition of subordinate enterprises to promote the implementation of environmental management work.
Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial waste water and household waste water. Rain water-waste water
shunting system is adopted for drainage system to drain water separately according to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the
rain water is collected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste water is discharged into sewage
treatment factory through municipal pipe network for intense treatment. Household waste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the
waste water is discharged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and the concentration and total amount of drainage satisfy
the requirements of national and local relevant standards.
In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas during production process, including general exhaust gas, acid exhaust
gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission
concentration and total amount satisfy the national and local relevant standards.
“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce), renewal (Renew) and responsibility (responsibly). The Company
promises that the used materials are all in accordance with requirements of national relevant environmental regulations and the registration, assessment, permission and restriction system of
chemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which are generated by each subordinate enterprise can be divided into general
BOE Technology Group Co., Ltd. Annual Report 2017
industrial solid waste, hazardous waste materials and household waste materials, and they all handed over to qualified recycler for regular treatment.
The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for processing equipment. Most high purity water and chemicals
are recycled, reducing the consumption of high purity water, chemical and other materials maximally and reducing the discharge of waste water and waste materials.
At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollution management standard, hazardous waste materials
management standard, energy management standard etc. The methods specify the operation and maintenance regulations and requirements of pollutant treatment system, establish regular
monitoring and supervising mechanism, in order to ensure the continuous stable operation of each system.
In recent years, the environmental emission index of the Company is up to national standards such as Sewage Comprehensive Discharge Standard (GB8979-1996), Air Pollutant Comprehensive
Emission Standard (GB89879-1996), Industrial Enterprise Environmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards. The Company will
continue to promote the environmental management, devote to forging green factory and improve environmental management level constantly.
Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental Protection
At present, corresponding environmental impact assessments have been conducted for all construction projects under the control of the company in conformity with applicable national and local
laws and regulations, and corresponding administrative licenses have also been obtained.
Contingency Plan for Emergent Environmental Incidents
The company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmental protection agency according to relevant local requirements.
However, such contingency plan consists of comprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous wastes and
dangerous chemicals etc. Meanwhile, drills must be conducted regularly.
Self-monitoring Plan
Currently, major pollutant-discharging units subordinated to the company have worked out corresponding self-monitoring plan according to relevant requirements put forward by the local
environmental protection agency. The self-monitoring plans respectively formulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Photoelectric Technology Co., Ltd. have
been published via the company’s official website.
Other environment information that should be disclosed
No
Other related environment protection information
No
BOE Technology Group Co., Ltd. Annual Report 2017
XIX Other Significant Events
√ Applicable □Not applicable
1. The public corporate bonds (Phase 1) of BOE Technology Group Co., Ltd. in 2016 issued to qualified investors by BOE from
March 21 to March 22, 2016 reach one year on March 21, 2017. The interest shall be settled once a year within interest accrual
period based on the regulations. On March 15, 2017, BOE disclosed “16BOE01” 2017 Announcement of Interest Settlement (No.:
2017-007), specifying that the interest of 10 bonds is RMB31.5 (tax included).
2. On July 15, 2016, BOE disclosed Plan on Repurchasing Part of BOE’s Public Share, which was passed in the 3th extraordinary
general meeting in 2016. On September 20, 2016, BOE implemented the plan for the first time. The plan is expired on August 18,
2017 (expired date of repurchase period). BOE has repurchased 88,692,299 A-shares with max. price: RMB 2.92/share and min.
price: RMB 2.36/share, total payment: RMB226,525,285.07 (commission and other fixed charged included): and 265,976,681
B-shares with max. price: HKD 3.45/share and min. price: HKD 2.12/share, total payment: HKD 799,996,931.17 (commission and
other fixed charged included). For details, see Announcement on Completion of Repurchasing Part of BOE’s Public Share disclosed
by the Company on August 22 (No.: 2017-046).
3. On December 2, 2015, BOE disclosed Announcement on Investing Intelligent Manufacturing Production Line Project for
Complete Machine (No.: 2015-079). BOE has invested RMB 1.19 billion to the project of wholly-owned subsidiaries, which is
reviewed and approved in 32th meeting of 7th board of directors of the Company. The project has put into production in Hefei. Under
such case, BOE has invested additional RMB 1 billion in the Phase 2 project in Hefei based on the full research and argumentation,
which is reviewed and approved in 13th meeting of 8th board of directors of the Company. For details, see Announcement on
Investing Intelligent Manufacturing Production Line Project (Phase 2) for Complete Machine in Hefei disclosed by the Company on
June 10 (No.: 2017-034).
4. On July 8, 2017, the company published 2016 Annual Equities Allocation Announcement, and 2016 Annual Equities Allocation
Plan was also reviewed and approved at 2016 Annual Shareholder Meeting held on June 9, 2017. In 2016, the company distributed
the profits based on the standard of RMB 0.3 per 10 shares (however, the distribution of profits of B Share shall be conducted in the
form of HKD converted based on the middle rate of CNY: HKD issued by the People’s Bank of China in the first working day after
the shareholder meeting) without distributing the bonus shares and converting the reserved funds into the capitals stock.
5. The company respectively published Pre-announcement on Reducing the Shares Held by Shareholders owning 5% or above Shares
(No. 2017-061) and Pre-announcement on Reducing the Shares Held by Shareholders owning 5% or above Shares (No. 2017-062) on
November 22, 2017 and November 25, 2017. The company’s shareholder Hefei Jianxiang Investment Co., Ltd. and Chongqing
Capital Optoelectronics Industry Investment Co., Ltd. were expected to reduce their holding shares no more than 1.00% of the
company’s general capital by means of the centralized bidding within 3 months after 15 business days upon the disclosure of such
announcements. Up to January 15, 2018 and January 19, 2018, the above shareholders completed their reducing of holding shares.
6. On June 17, 2017, the company issued Announcement on Purchasing Shares of SES-imagotag (NO.: 2017-036), the company
proposed to assign its wholly-owned subsidiary on its behalf to purchase more than 50.01% shares of SES and consolidate SES’s
financial statements together with the joint-venture company SPV established by the company and the investment platform
designated by the SES management. Up to March 16, 2018, SPV purchased 10,789,186 shares from SES in total by means of block
trading and comprehensive offer, occupying 79.94% of SES’s issued and outstanding shares, paid the total consideration Euros
323,675,580. Please refer to Announcement on Completing the Purchase of SES-imagotag Shares (NO.: 2018-017) issued on March
17, 2018 for detailed information.
7. BOE Technology (HK) Limited, one of the Company’s wholly-owned subsidiaries, filed a lawsuit before the Beijing High People’s
Court over a disputed sales contract against 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 Mr. JiaYueting for
approximately USD 41.84 million in total. The court issued the Case Acceptance Notice and the Civil Ruling for property
preservation respectively on July 6, 2017 and July 31, 2017. The jurisdiction objection put forward by LeTV Mobile was rejected by
BOE Technology Group Co., Ltd. Annual Report 2017
the court, and has instituted an appeal on the ruling of such jurisdiction objection to the Supreme People’s Court. Now, the absolute
decree of the Supreme People’s Court is pending. As for relevant receivables of this lawsuit, the Company has made relevant bad
debt provision according to accounting standard. This case is now waiting for the court’s trial. Therefore, its effects on the Company
are uncertain.
index to disclosure website for
Overview of significant events Disclosure date
interim report
Announcement about the Strategic Cooperation with Beihang University 05/13/2017 www.cninfo.com.cn
Announcement about Signing Investment Framework Agreement 08//11/2017 www.cninfo.com.cn
Announcement about Government Subsidy Received by Subsidiary 09/29/2017 www.cninfo.com.cn
Announcement about Signing Investment Framework Agreement 12/12/2017 www.cninfo.com.cn
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Capitalization
Item Newly issue
Amount Proportion Bonus shares of public Other Subtotal Amount Proportion
share reserves
I. Restricted shares 9,922,266,108 28.23% 0 0 0 -9,920,476,190 -9,920,476,190 1,789,918 0.01%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned corporations 9,920,476,190 28.22% 0 0 0 -9,920,476,190 -9,920,476,190 0 0.00%
3. Shares held by other domestic investors 1,789,918 0.01% 0 0 0 0 0 1,789,918 0.01%
Among which: shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by domestic individuals 1,789,918 0.01% 0 0 0 0 0 1,789,918 0.01%
4. Shares held by foreign investors 0 0.00% 0 0 0 0 0 0 0.00%
Among which: Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by foreign individuals 0 0.00% 0 0 0 0 0 0 0.00%
II. Non-restricted shares 25,230,801,635 71.77% 0 0 0 9,565,807,210 9,565,807,210 34,796,608,845 99.99%
BOE Technology Group Co., Ltd. Annual Report 2017
1. RMB ordinary shares 24,028,711,466 68.35% 0 0 0 9,831,783,891 9,831,783,891 33,860,495,357 97.30%
2. Domestically listed foreign shares 1,202,090,169 3.42% 0 0 0 -265,976,681 -265,976,681 936,113,488 2.69%
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 35,153,067,743 100.00% 0 0 0 -354,668,980 -354,668,980 34,798,398,763 100.00%
Reasons for changes in shares
√ Applicable □ Not applicable
1. Parts of the Company’s private issuing stock in 2014 was lifted the restriction on sales on April 10, 2017 with the amount of 9,920,476,190 shares.
2. The Company completed the plan of share repurchase in the Reporting Period and cancelled all repurchased shares of 354,668,980 shares on August 25, 2017, of which 88,692,299 shares
A-share and 265,976,681 shares B-share.
Approval of share changes
□ Applicable √ Not applicable
Particulars about transferring ownership of shares
□ Applicable √ Not applicable
Influence of changes in shares on financial indicators of the recent year or the recent term including basic EPS, diluted EPS, net asset value per share belonging to common stock holders of the
Company, etc.
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period
Basic EPS 0.217
Diluted EPS 0.217
Item Dec. 31, 2017
Net assets per share attributable to common stockholders of the Company 2.43
Other contents that the Company thinks it is necessary to disclose or that the securities regulatory institutions require to disclose
BOE Technology Group Co., Ltd. Annual Report 2017
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Opening restricted Increased in Closing Reason for
Name of shareholder Unlocked in Reporting Period Date of unlocking
shares Reporting Period restricted shares lock-up/unlocking
Beijing State-owned Capital Operation
and Management 4,063,333,333 4,063,333,333 0 0 Non-public issuance 04/10/2017
Center
Chongqing Ezcapital Opto-electronics
3,000,000,000 3,000,000,000 0 0 Non-public issuance 04/10/2017
Industry Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. 2,857,142,857 2,857,142,857 0 0 Non-public issuance 04/10/2017
Total 9,920,476,190 9,920,476,190 0 0 -- --
II Issuance and Listing of Securities
1. Securities (Excluding Preference Shares) Issued in this Reporting Period
□ Applicable √ Not applicable
2. Changes in Total Shares of the Company and the Shareholder Structure, as well as the Asset and Liability Structures
√ Applicable □ Not applicable
In the Reporting Period, the Company accumulatively repurchased 88,692,299 shares of A-share and 265,976,681 shares of B-share and cancelled all repurchased shares of 354,668,980. The
total shares of the Company decreased to 34,798,398,763 shares from 35,153,067,743 shares. The total assets of the Company at the end of the Reporting period increased to
RMB256,108,741,849.00 from RMB205,135,011,042 of the period-begin and the asset-liability ratio was up to 59.24% from 55.14%.
BOE Technology Group Co., Ltd. Annual Report 2017
3. Existing Employee-held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and their Shareholdings
Unit: share
Total number of Total number of common shareholders at the
1,259,119 (including 1,222,422A-share holders and 1,313,406 (including 1,275,197 A-share holders and 38,209
common shareholders prior month-end before the disclosure of this
36,697 B-share holders) B-share holders)
at the period-end Report
5% or greater shareholders or the top 10 shareholders
Increase/decrease Number of Number of Pledged or frozen shares
Shareholding Total shares held at the
Name of shareholder Nature of shareholder during this restricted shares non-restricted shares
percentage (%) period-end Status Number
Reporting Period held held
Beijing State-owned Capital
State-owned juridical
Operation and Management 11.68% 4,063,333,333 0 0 4,063,333,333 N/A
person
Center
Chongqing Ezcapital
State-owned juridical
Opto-electronics Industry 8.12% 2,826,500,070 -173,499,930 0 2,826,500,070 N/A
person
Investment Co., Ltd.
Hefei Jianxiang Investment State-owned juridical
7.71% 2,683,642,953 -173,499,904 0 2,683,642,953 N/A
Co., Ltd. person
Beijing Yizhuang
State-owned juridical
Investment Holdings 3.57% 1,241,423,641 0 0 1,241,423,641 N/A
person
Limited
BOE Technology Group Co., Ltd. Annual Report 2017
Beijing BOE Investment & State-owned juridical
2.36% 822,092,180 0 0 822,092,180 N/A
Development Co., Ltd. person
Hong Kong Securities
Foreign juridical person 1.27% 442,527,252 442,527,252 0 442,527,252 N/A
Clearing Company Ltd.
Beijing Electronics On behalf of the
0.79% 273,735,583 0 0 273,735,583 N/A
Holdings Co., Ltd. government
Central Huijin Asset State-owned juridical
0.71% 248,305,300 0 0 248,305,300 N/A
Management Co., Ltd. person
National Social Security
Other 0.64% 223,371,500 223,371,500 0 223,371,500 N/A
Fund Portfolio 101
Zhang Jianping Domestic natural person 0.58% 201,712,697 201,712,697 0 201,712,697 N/A
Strategic investors or general corporations becoming
top-ten shareholders due to placing of new shares (if any) N/A
(see Note 3)
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its
controlling shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment
Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them
respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.
Related or acting-in-concert parties among the
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over
shareholders above
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 relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist
associated relationship or not, or they are persons acting in concert or not.
BOE Technology Group Co., Ltd. Annual Report 2017
Shareholdings of the top ten non-restricted shareholders
Type of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
Beijing State-owned Capital Operation and Management RMB common
4,063,333,333 4,063,333,333
Center share
Chongqing Ezcapital Opto-electronics Industry RMB common
2,826,500,070 2,826,500,070
Investment Co., Ltd. share
RMB common
Hefei Jianxiang Investment Co., Ltd. 2,683,642,953 2,683,642,953
share
RMB common
Beijing Yizhuang Investment Holdings Limited 1,241,423,641 1,241,423,641
share
RMB common
Beijing BOE Investment & Development Co., Ltd. 822,092,180 822,092,180
share
RMB common
Hong Kong Securities Clearing Company Ltd. 442,527,252 442,527,252
share
RMB common
Beijing Electronics Holdings Co., Ltd. 273,735,583 273,735,583
share
RMB common
Central Huijin Asset Management Co., Ltd. 248,305,300 248,305,300
share
RMB common
National Social Security Fund Portfolio 101 223,371,500 223,371,500
share
RMB common
Zhang Jianping 201,712,697 201,712,697
share
Related or acting-in-concert parties among the top ten
1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd.
non-restrictedly tradable share holders and between the
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its
top ten non-restrictedly tradable share holders and the top
BOE Technology Group Co., Ltd. Annual Report 2017
ten shareholders controlling shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment
Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them
respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when 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 relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist
associated relationship or not, or they are persons acting in concert or not.
Top ten common shareholders conducting securities Among the top 10 common shareholders, Zhang Jianping became a top 10 shareholder due to securities margin trading. And all the
margin trading (if any) (see Note 4) 201,712,697 shares held by him in the Company were in his account of collateral securities for margin trading.
Note: Beijing Economic-Technological Investment & Development Corp. has been renamed Beijing Yizhuang Investment Holdings Limited.
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conducted any promissory repo during this Reporting
Period.
□ Yes √ No
No such cases in this Reporting Period.
2. Information about the Controlling Shareholder
Nature of the controlling shareholder: Controlled by the local government
Type of the controlling shareholder: Corporation
Legal representative/person
Name of controlling shareholder Date of establishment Credibility code Main business scope
in charge
Operation and management of state-owned assets within
Beijing Electronics Holdings Co., Wang Yan 04/08/1997 91110000633647998H
authorization; communications equipments, audio &
BOE Technology Group Co., Ltd. Annual Report 2017
Ltd. visual products for broadcasting and television; computer
and its supporting equipments and the applied products;
electronic raw material and components; home electric
appliances and electronic products; electronic surveying
instruments and meters; mechanical and electric
equipments; electronic transportation products and
investment in business fields other than electronics and its
management; development of real estate, lease and sales
of commodity apartments; property management.
Situation of the equities of the Beijing Electronic Shareholding Co., Ltd. held 363,429,503 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total
other domestic and overseas shares amount of Electronic City; it held 42,287,460 shares of A share of NAURA Technology Group Co., Ltd. (Stock Code: 002371), which accounted for
listed companies of actual 9.23% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA
controller during the Reporting Technology Group Co., Ltd. through holding the subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 38.90% of the total shares
Period amount of NAURA Technology Group Co., Ltd.
Change of the controlling shareholder during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
3. Information about the Actual Controller
Nature of the actual controller: Local administrator for state-owned assets
Type of the actual controller: Corporation
Legal
representative/ Date of
Name of actual controller Credibility code Main business scope
person in establishment
charge
Operation and management of
state-owned assets within authorization;
communications equipments, audio &
visual products for broadcasting and
television; computer and its supporting
equipments and the applied products;
electronic raw material and components;
Beijing Electronics home electric appliances and electronic
Wang Yan 04/08/1997 91110000633647998H
Holdings Co., Ltd. products; electronic surveying
instruments and meters; mechanical and
electric equipments; electronic
transportation products and investment in
business fields other than electronics and
its management; development of real
estate, lease and sales of commodity
apartments; property management.
Beijing Electronic Shareholding Co., Ltd. held 363,429,503 shares of A share of Electronic City (Stock
Situation of the equities of
Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it held
the other domestic and
42,287,460 shares of A share of NAURA Technology Group Co., Ltd. (Stock Code: 002371), which
overseas listed
accounted for 9.23% of the total shares of NAURA Technology Group Co., Ltd.. Beijing Electronic
companies of actual
Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd.
controller during the
through holding the subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered
Reporting Period
38.90% of the total shares amount of NAURA Technology Group Co., Ltd..
Change of the actual controller during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
Ownership and control relations between the actual controller and the Company
BOE Technology Group Co., Ltd. Annual Report 2017
State-owned Assets Supervision and Administration
Commission of People’s Government of Beijing
Municipality
100%
Beijing State-Owned Capital Operation and
Beijing Intelligent Kechuang Technology Development Co., Ltd.
Management Center
33.75% 100%
66.25%
Beijing BOE Investment & Development Co., Ltd. Beijing Electronics Holding Co., Ltd.
2.36% 0.79%
11.68%
BOE Technology Group Co., Ltd.
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for the
Company to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders of
Intelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.
The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capital
contribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, Zhao
Caiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%,
Wang Yanjun 3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng
1.667%, Wang Aizhen 1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and Management
Center transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through a
Shares Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposal
and earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in a
Voting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of the
remaining 30% stake directly held by it in the Company.
The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Not applicable
4. Other Corporate Shareholders with a Shareholding Percentage above 10%
√ Applicable □ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
Legal representative / Date of
Name of corporate shareholder Registered capital Business scope
company principal establishment
Investment and investment
management; assets
Beijing State-owned Capital
management; organize the
Management Administrative Lin Fusheng 12/30/2008 35,000,000,000
reorganization as well as the
Center
merger and acquisition of
the enterprise assets.
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
Part VII Preferred Shares
□ Applicable √ Not applicable
There was no preferred stock during Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
Part VIII Directors, Supervisors, Senior Management and Staff
I Changes in Shareholdings of Directors, Supervisors and Executive Officers in this Reporting Period
Opening Increase in Decrease in Other Closing
Starting date Ending date
Name Office title Incumbent/former Gender Age shareholding this Reporting this Reporting increase/decrease shareholding
of tenure of tenure
(share) Period (share) Period (share) (share) (share)
Wang
Chairman of the Board Incumbent Male 60 05/20/2016 05/19/2019 299,905 0 0 0 299,905
Dongsheng
Xie
Vice Chairman of the Board Incumbent Male 58 05/20/2016 05/19/2019 7,680 0 0 0 7,680
Xiaoming
Chen Vice Chairman of the Board, Chief
Incumbent Male 51 05/20/2016 05/19/2019 260,000 0 0 0 260,000
Yanshun of Executive Committee(CEO)
Wang Jing Director Incumbent Female 46 05/20/2016 05/19/2019 0 0 0 0
Zhang
Director Incumbent Male 45 05/20/2016 05/19/2019 0 0 0 0
Jinsong
Liu Director, Executive Vice
Incumbent Male 53 05/20/2016 05/19/2019 250,000 0 0 0 250,000
Xiaodong President, President and COO
Song Jie Director Incumbent Male 50 05/20/2016 05/19/2019 0 0 0 0
Director, executive vice president
Sun Yun Incumbent Female 47 05/20/2016 05/19/2019 155,981 0 0 0 155,981
and CFO
Lv Tingjie Independent Director Incumbent Male 62 05/20/2016 05/19/2019 0 0 0 0
Wang
Independent Director Incumbent Male 54 05/20/2016 05/19/2019 0 0 0 0
Huacheng
BOE Technology Group Co., Ltd. Annual Report 2017
Hu Xiaolin Independent Director Incumbent Male 39 05/20/2016 05/19/2019 0 0 0 0
Li Xuan Independent Director Incumbent Male 49 08/19/2016 05/19/2019 0 0 0 0
Chief of Supervisory Board
Chen Ming Incumbent Male 60 05/20/2016 03/01/2018 0 0 0 0
（Convener）
Xu Tao Supervisor Incumbent Male 53 05/20/2016 05/19/2019 0 0 0 0
Mu Supervisor, Secretary of the
Incumbent Male 50 05/20/2016 05/19/2019 2,991 0 0 0 2,991
Chengyuan Supervisory Committee
Zhao Wei Supervisor Incumbent Male 49 05/20/2016 05/19/2019 0 0 0 0
Shi Hong Supervisor Incumbent Female 35 05/20/2016 05/19/2019 0 0 0 0
Zhuang
Supervisor Incumbent Male 33 05/20/2016 05/19/2019 0 0 0 0
Haoyu
Miao
Employee Supervisor Incumbent Male 44 05/19/2016 05/19/2019 0 0 0 0
Chuanbin
Xu
Employee Supervisor Incumbent Male 43 05/19/2016 05/19/2019 0 0 0 0
Yangping
He Daopin Employee Supervisor Incumbent Male 48 05/19/2016 05/19/2019 0 0 0 0
Dong
Executive Vice President, Incumbent Female 54 05/20/2016 05/19/2019 200,000 0 0 0 200,000
Youmei
Senior vice president, Joint COO
Yao
and CEO of Intellectual System Incumbent Male 40 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Xiangjun
Business Group
Yue
Senior Vice President, CIO Incumbent Male 50 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Zhanqiu
Feng Senior Vice President, Chief
Incumbent Female 45 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Liqiong Lawyer
BOE Technology Group Co., Ltd. Annual Report 2017
Zhong
Senior Vice President, CHO Incumbent Male 47 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Huifeng
Xie Senior Vice President, Chief Risk
Incumbent Male 47 05/20/2016 05/19/2019 110,000 0 0 0 110,000
Zhongdong Officer and Auditor General
Senior Vice President, CEO of
Zhang
Display and Sensing Devices Incumbent Male 47 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Zhaohong
Business Group
Feng Senior Vice President, CEO of
Incumbent Male 41 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Qiang Health Service Business Group
Senior Vice President, Chief
Yang Anle Incumbent Male 47 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Investment Officer
Tong
Senior Vice President, CTO Incumbent Male 49 05/20/2016 05/19/2019 0 0 0 0
Guanshan
Liu Vice President, Secretary of the
Incumbent Male 39 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Hongfeng Board
Jing
Vice President, CSO Incumbent Male 39 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Linfeng
Total -- -- -- -- -- -- 2,386,557 0 0 0 2,386,557
BOE Technology Group Co., Ltd. Annual Report 2017
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Yao Xiangjun Director Appointed 04/07/2017 Job adjustment and changes in posts
Elected as a director from an executive
Sun Yun Director Appointed 06/09/2017
officer
Note: Mr. Chen Ming has submitted the written resignation to the Supervisory Committee of the Company in order to resign as the
Chairman of the 8th Supervisory Committee and the supervisor on March 1, 2018 due to his age. Mr. Yang Xiangdong was elected as
a supervisor of the 8th Supervisory Committee and the Chairman after the review and approval of the 8th Meeting of the 8th
Supervisory Committee, the First Special Meeting of Shareholders in 2018 and the 9th Meeting of the 8th Supervisory Committee.
III Brief Biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent directors,
supervisors and executive officers
Director
Mr. Wang Dongsheng, Master of Engineering, financial experts and system engineering experts, founder of BOE, ever took the
posts of Chairman of 1st and 2nd Board of Directors as well as president, and Chairman of the 3rd Board of Directors of the Company,
as well as Chairman of Execution Committee, CEO, the Chairman of the 4th Board of Directors of the Company and Chairman of
Execution Committee, the Chairman of the 5th Board of Directors of the Company and Chief of Execution Committee and Chairman
of the 6th Board of Directors, Chief of Execution Committee of the Company, and the Chairman of the 7th Board of Directors, Chief
of Execution Committee of the Company.
Now he takes the posts of Chairman of the 8th Board of Directors, meanwhile, Vice President of China Electronic Chamber of
Commerce, President of Beijing Electronic Chamber of Commerce, Vice President of China Optics and Optoelectronics
Manufactures Association and Chairman of China Optics and Optoelectronics Manufactures Association LCB, etc.
Mr. Wang Dongsheng led the incorporation of BOE in 1993, and made BOE become a leading enterprise in the field of global
display. He first put forward the concept of semiconductor display industry in the global industry. Also in 2010, he put forward life
principle of display industry which was known as” Mr. Wang Principle”.
Mr. Wang Dongsheng once was awarded \"China Top Ten Mergers and Acquisitions Personage”, “Chinese Top Ten Smartfortune
Personage”, “China's information industry leader”,” The most influential leader of listed companies” , “The National May 1 Labor
Medal” and other honorary titles.
Mr. Xie Xiaoming, MBA, a senior engineer at professor grade. He had ever taken the posts of Director of 821 Workshop of Beijing
Tube Factory, Plant Manager of First Branch Factory of Beijing Tube Factory, Deputy GM of Beijing Orient Electronics Group Co.,
Ltd, General Manager and Director of Beijing Yandong Microelectronics Co., Ltd, Director of Beijing Dongguang Micro Electronics
Co., Ltd, Party Secretary of Beijing Semiconductor Devices Fifth Factory, and Vice Chairman of the 7th Board of Directors.
Now he takes the posts of Vice Chairman of the 8th Board of Director of the Company, Vice President of Beijing Electronics Holding
Co., Ltd, Chairman of Beijing Yandong Microelectronics Co., Ltd, Director of NAURA Technology Group Co., Ltd., Director of
Beijing Electronic Control Ai Sikai Technology Co., Ltd. and Director of BAIC BJEV.
Mr. Chen Yanshun, Master of Economics, senior accountant, has ever taken the posts of lecturer of Chongqing Industry &
BOE Technology Group Co., Ltd. Annual Report 2017
Commerce University. He had served in the Company from the year of 1993, has taken the posts of Secretary of the Board of the 1st
Board of Directors of the Company, Secretary of the 2nd Board of Directors and Vice President, Executive Director of the 3rd Board
of Directors and Senior Vice President, Executive Director of the 4th, 5th and the 6th Board of Directors and President, and Vice
Chairman of the 7th Board of Directors and President, and Chairman of the Board of Beijing BOE Vision-electronic Technology Co.,
Ltd, Beijing BOE Optoelectronics Technology Co., Ltd, Hefei BOE Optoelectronics Technology Co., Ltd, and Ordos Yuansheng
Optoelectronics Co., Ltd.
Now he takes the posts of Vice Chairman of the 8th Board of Directors of the Company and Chief of Executive Committee(CEO),
Chairman of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Chairman of Chongqing BOE Chairman of Optoelectronics
Technology Co., Ltd, Beijing Intelligent Kechuang Technology Development Co., Ltd., Chairman of the Board BeijingMatsushita
Color CRT Co., Ltd, and Chairman and Director of the Board of BOE Technology (Hong Kong) Co., Ltd., and Director of BOE
Health Investment Management Co., Ltd.
Mrs. Wang Jing, Bachelor of Finance, LLM, MBA and Senior Economist. She once worked as Clerk of Securities Department in
Beijing Lightbus Co., Ltd., Cadre of General Office of the Economic System Reform Committee of Beijing, assistants to the
Directors and Deputy Directors Financing Department of Beijing Enterprises Holdings Ltd. (HK Head office), Entrepreneurship
Manager of Beijing Enterprises Holdings Investment Management Ltd., Deputy GM of Beijing BHL Investment Management Center
of Beijing Holdings, Manager of Business Operating & Management Department of Beijing Holdings, General Manager Assistant of
Beijing Holdings, Chairman and GM of Inland Port International Logistics Co., Ltd., GM of Investment Management Department
and Investment Management Department I of Beijing State-owned Capital Operation Management Center, and Director of the 7th
Board of Directors of the Company.
Now she worked as Director of the 8th Board of Directors of the Company, Deputy GM of Beijing State-owned Capital Operation
Management Center, Director of Huarun Pharmaceutical Group Co., Ltd, Director of Beijing Automobile Co., Ltd, Director of BAIC
BJEV and Director of Zhongxin Construction Securities Co., Ltd.
Mr. Zhang Jinsong, Master Degree, Senior Accountant. He ever took posts of Chief of Finance Department of Beijing Jianzhong
Machinery Factory, CFO of Beijing Boda Integrated Circuit Co., Ltd. and Deputy CFO of the Company and Supervisor of the 6th
Supervisory Committee and Chairman( convener) of the 7th Supervisory Committee, and Director of the 7th Board of Directors.
Now he acts as Director of the 8th Board of Directors of the Company, Vice President of Beijing Electronics Holdings Corp.,
Chairman of NAURA Technology Group Co., Ltd., and Chairman of Beijing Hezhida Investment Co., Ltd., and vice president of
Beijing BOE Investment & Development Co., Ltd, Director of Beijing Electronic Control Ai Sikai Technology Co., Ltd, Director of
Beijing Yandong Microelectronics Co., Ltd. and Director of Beijing Jingguorui Equity Investment Fund Management Co., Ltd.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,
Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.,
Ltd., Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE
Vision-electronic Technology Co., Ltd. and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., President of Beijing BOE
Multimedia Science and Technology Co., Ltd. and Beijing BOE Technology Wisdom Commerce Co., Ltd, Director of the 7th Board
of Directors, Executive Vice President and COO of the Company
Now he takes the posts of Director of the 8th Board of Director, Executive Vice President, President and COO of the Company,
Deputy Chairman of Chongqing BOE Optoelectronics Technology Co., Ltd., Chairman of Mianyang BOE Optoelectronics
Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd., Wuhan BOE Optoelectronics Technology Co., Ltd., Kunming
BOE Display Technology Co., Ltd. and Beijing BOE Sensor Technology Co., Ltd., Director of Hefei Xinsheng Optoelectronics
BOE Technology Group Co., Ltd. Annual Report 2017
Technology Co., Ltd, and TPV Display Technology (China) Co., Ltd.
Mr. Song Jie, Senior Economist, MBA of Peking University, Countries travelled visiting scholar of University of Sydney from Feb,
2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation, Officer of
Project examination and approval of Beijing Economic and Technological Development Zone Management Committee, Officer of
Foreign Investment Service Center, the Director of Yi Da Tong Paging Center, Deputy General Manager of Chinese Human Genome
Research Center, Beijing (SinoGenoMax Co., Ltd.), Project Manager of East Zone Sewage project of Beijing Yizhuang Investment
Holdings Co., Limited, Director of the 7th Board of Directors of the Company.
Now he is the Director of the 8th Board of Directors of the Company, Manager of Department of investment and financing of Beijing
Yizhuang Investment Holdings Co., Limited.
Ms. Sun Yun, Master of Business, is a senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance
Department of the Company, as well as Deputy CFO and Chief Auditor of the Company.
Now she is Director of the 8th Board of Directors, Executive Vice President and CFO of the Company, Director of Beijing BOE Land
Co., Ltd., Director of Beijing Yinghe Century Science & Technology Development Co., Ltd., Director of BeijingMatsushita Color
CRT Co., Ltd.
Independent Director
Mr. Lv Tingjie, Doctor Degree, Professor and Doctorial Tutor, Assistant, Lecturer, Associate Professor, Professor, Doctorial Tutor,
Vice Dean, Standing vice President and President, and Assistant Principal of Beijing University of Posts and Telecommunications.
Social part-time job: Executive Director of Union International Telecommunications, Vice Chairman of Information Economy
Society of China, Deputy Director of the Ministry of Education Electronic Commerce Teaching Committee, Standing Director of
China Institute of Communications (Director of the Communication Management Branch) Standing Director of China Association of
Communication Enterprises, Standing Director of Chinese Research Council of Technical Economy (Director of Communications
Technology and Economy), Member of Ministry of Industry and Information Science Committee and Telecom Economic Experts
Committee. He was once the Independent Director of the 7th Board of Directors of the Company
Now he is the independent director of the 8th Board of Directors of the Company. He has been working in Beijing University of Posts
and Telecommunications since May 1985, and he acts as the Independent Director of BOE, Gohigh Data Networks Technology Co.,
Ltd, Shenzhen Ai Shide Co., Ltd. and China Unicom.
Mr. Wang Huacheng, Doctoral Candidate Degree, Professor Doctoral Supervisor, In July 1985, graduate from Department of
Finance, Renmin University of China, obtained bachelor of economics degree, in July 1988, graduated from Department of
Accounting, Renmin University of China, obtained master's degree in economics, in July 1998,graduated from Department of
Accounting, Renmin University of China, obtained PhD degree. Since September 1988, worked as a teacher in Renmin University of
China, He successively worked as teaching assistant, lecturer, associate professor, professor, PhD supervisor, social appointments:
Director of the institute of Chinese accounting. He once was the Independent Director of the 7th Board of Directors of the Company
Now he is the Independent Director of the 8th Board of Directors of the Company, HXB and China Railway Construction
Corporation Limited.
Mr. Hu Xiaolin, doctor, associate professor of Tsinghua University, artificial intelligence professor.
Now he serves as Senior Member of Institute of Electrical and Electronics Engineers (IEEE), Editorial Board Member of IEEE
Transactions on Neural Networks and Learning Systems, Independent Director of 8th board of directors.
BOE Technology Group Co., Ltd. Annual Report 2017
Mr. Li Xuan, doctor of laws, associate professor, graduate student tutor. He once worked as the Teaching Assistant, Lecturer, Chief
Assistant, Deputy Chief of Central University of Finance and Economics, Vice Dean of Central University of Finance and
Economics School of Law, Chief of Central University of Finance and Economics Legal Affairs Office, Independent Director of
Beijing Da Bei Nong Science and Technology Group Co., Ltd.
Now he serves as the Independent Director of the 8th board of directors of the Company, Chief of Central University of Finance and
Economics Master of Laws (J.M) Education Center, Deputy Chief of Central University of Finance and Economics Public
Policy-Making Research Center, Deputy Chief of Committee for Social and Legal Affairs of Beijing Municipal Committee of the
CDL, Secretary General of Case Study Association of China Law Society, Executive Director of Law Society of China Law Society,
Arbitrator of Harbin Arbitration Commission, Independent Director of China Minzu Securities Co., Ltd., Independent Supervisor of
China Shengmu Organic Milk Limited (listed in Hong Kong Exchange) and CNBM (listed in Hong Kong Exchange).
Supervisor
Mr. Chen Ming, Bachelor degree, once worked as Manager of Beijing Wireless Power Plant Peony Electronic Engineering
Company, Chairman of the Board and Chief of Execution Committee ,Factory Director of Beijing Wireless Power Plant and GM of
Beijing Ether-led Electronic Group Co., Ltd. He once was the Chairman (Convener) of the 7th Supervisory Committee of the
Company.
Currently, the Chairman (Convener) of the 8th Supervisory Committee of the Company, the Chairman of the Supervisory Committee
of Beijing Electronics Zone Investment and Development Co., Ltd, Beijing Zhaowei Electronics (Group) Co., Ltd, and NAURA
Technology Group Co., Ltd.
Mr. Xu Tao, Senior Accountant, Minister of Finance Department of Beijing TV Accessories Third Factory, Chief Accountant and
CFO of Beijing Jile Economics Group Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Currently, a Supervisor of the 8th Supervisory Committee of the Company. the Financial/Accounting Center Director of Beijing
Electronics Holdings Co., Ltd.
Mr. Mu Chengyuan, master, is an Economist. He ever took the posts of Manager of Comprehensive Department of International
Trade Branch of the Company, Deputy General Manager of Beijing Orient Lighting Fixture Engineering Co., Ltd., Division Chief of
Assets Operating and Management Division of and Deputy Factory Manager of Beijing Electronic Tube Factory, Supervisor of the
3rd Supervisory Committee of the Company, Supervisor and Secretary of the 4th and the 5th Supervisory Committee of the Company,
the Supervisor and Secretary of the 6th Supervisory Committee, Supervisor and Secretary of the 7th Supervisory Committee of the
Company.
Now he is the Supervisor and Secretary of the 8th Supervisory Committee, Chief of Investment Securities Department of Beijing
Electronics Holdings Co., Ltd., as well as Director and Vice President of Beijing BOE Investment & Development Co., Ltd. and
Secretary General of Zhongguancun Yunti Technology Innovation Alliance.
Mr. Zhao Wei, Bachelor, Joined the Communist Party of China in 2001, he successively worked as Manager of Financial
Department of Hefei City Construction Investment Co., Ltd. Deputy Minister, Minister of Financial Department and Minister of
Financing Department of Hefei City Construction Investment Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Now he is the Supervisor of the 8th Supervisory Committee of the Company, Member of CPC Committee, Director, Deputy GM of
Hefei City Construction Investment Co., Ltd..
BOE Technology Group Co., Ltd. Annual Report 2017
Ms. Shi Hong, Master of Economics, Senior Economist, Supervisor of the 7th Supervisory Committee of the Company.
Now he is the Supervisor of the 8th Supervisory Committee of the Company, worked in Department of Investment and Financing of
Beijing Yizhuang Investment Holdings Limited. Member of Investment Decision Committee of China Reform Fund Management Co.,
Ltd. Director of Beijing Jinyuanjingkai Limited Liability Company for Sewage Treatment and Supervisor of Beijing Boda Xinyuan
House Real Estate Development Co., Ltd..
Mr. Zhuang Haoyu, Bachelor, he once worked as Project Assistant, Investment Manager, Senior Investment Manager of Beijing
Industrial Development Investment Management Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Now he is Senior Investment Manager of SENSEGAIN ASSET MANAGEMENT Co., Ltd.
Mr. Miao Chuanbin, Master degree, once worked as Manager of Market Department Beijing Wireless Power Plant Putai
Technology Company, Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plan,
Deputy General Manager of Beijing Ether-led Electronic Group Co., Ltd., Secretary of Party Committee Work Department,
Enterprise Minister of Culture of Beijing Electronics Holdings Co., Ltd, Employee Supervisor of the 7th Supervisory Committee of
the Company.
Now he is the Employee Supervisor of the 8th Supervisory Committee of the Company, Vice Secretary of Party Committee, Secretary
of the Commission for Discipline Inspection, Union Chairman and Chief Officer of Culture, member of Beijing Electronic Union and
member of the Commission for Discipline Inspection in Beijing Electronics Holding Co., Ltd.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s Legal
Department, and Employee Supervisor of the 7th Supervisory Committee of the Company.
Now he acts as Employee Supervisor of the 8th Supervisory Committee of the Company, Minister and Deputy Director of the
Company’s Legal Department and Organization, Senior Chief Officer and the Director of Board of Directors of Gaochuang (Suzhou)
Electronics Co., Ltd, Supervisor of Beijing BOE Vacuum Electric Appliance Co., Ltd and Beijing BOE Technology Development
Co., Ltd.
Mr. He Daopin, master. He once worked as Production Supervisor, Purchasing Supervisor, Financial Manager, Vice General
Manager of Beijing Oriental Aristocratic Paper Co., Ltd., Vice General Manager, General Manager of Industrial Gas Underwriting
Company of Business Department of Park of the Company, Management Representative of Business Department of Park, Chief of
HR and Administrative Department, Chief of Property Department and Chief of Labor Union, Deputy Chief, Chief of Party Mass
Work Department of the Company, Corporate Cultural Center.
He now serves as Employee Supervisor of the 8th board of supervisors of the Company, Chairman of Labor Union of Beijing BOE
Display Technology Co., Ltd., Secretary of Committee for Discipline Inspection, Deputy Chief of Party Mass Work Department,
Corporate Cultural Center.
Executive Officer
Ms. Dong Youmei, she successively took the posts of Deputy Chief of New Product Development Division of Shuguang
Electronic Group Co., Ltd., Deputy Chief of Liquid Crystal Center in Tsinghua University, and Strategic Chief Technical
Officer of the Company.
Now she serves as Senior Vice President, Member of Advisory Committee for the State Information, Member of Electronic
Science and Technology Committee of Ministry of Industry and Information Technology.
BOE Technology Group Co., Ltd. Annual Report 2017
Mr. Yao Xiangjun, MBA, Chinese CPA. He once worked as Chief Inspector of Financing Department
of the Company, Director of Business Planning Center, Chief Strategic Officer of the Company, CEO of Intelligent
System Business Group, Financial Controller of Hefei BOE Optoelectronics Technology Co., Ltd.
Now he serves as Senior Vice President, Co-Chief Operating Officer and Chief Executive Officer of Intelligent System Business
Group, Chairman of Beijing BOE Optical Science and Technology Co., Ltd., Beijing BOE Video Science and Technology Co., Ltd.,
Beijing BOE Multi-Media Science and Technology Co., Ltd., Beijing BOE Intelligent Science and Technology Co., Ltd., Beijing
BOE Smart Commerce Co., Ltd., Hefei BOE Video Science and Technology Co., Ltd., Chongqing BOE Smart Electronic System
Co., Ltd., and Varitronix International Limited, and Director of SES-imagotag.
Mr. Yue Zhanqiu, obtained EMBA in CEIBS, Senior Accountant. He ever took post of Chief and Chief Accountant of Finance
Section of Power Business Department, Financial Manger of Beijing Huamin Smart Card System Co., Ltd., CFO of Beijing Seven
Star Electronics Co., Ltd., CFO and Secretary to the Board of Beijing Seven Star Science & Technology Co., Ltd., and CFO, Deputy
General Manager, General Manager of Beijing BOE Optoelectronics Technology Co., Ltd..
Now he acts as Senior Vice President and CIO of the Company.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Department Director of Legal Affairs
Department of the Company. And as Secretary of the 5th and 6th Board of Directors.
Now she is Senior Vice President, Chief Counsel and Secretary to the Board of the Company as well as Director of Beijing BOE
Land Co., Ltd. and Director of Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Zhong Huifeng, Master Degree, awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever took
posts of Securities Affairs Representative and Manager of Security Department of the 2nd Board of Directors, Secretary to the Board
of the 3rd, 4th and 5th Board of Directors of the Company, Employee Supervisor of the 6th Supervisory Committee and Employee
Supervisor of the 7th Supervisory Committee, Supervisor of Beijing Orient Top Victory Electronics Co., Ltd.. and Vice Secretary of
the CPC, Secretary of Discipline Inspection Commission and Principal of Labor Union of the Company, member of the Third
National Committee of China’s Defense of Posts and Telecommunications Union.
Now he acts as Senior Vice President and CHO of the Company.
Mr. Xie Zhongdong, Master, CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si Water
Conservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C, Chief and
Deputy Auditor of Auditing & Supervision Division of the Company, Vice Chief and Chief of Auditing & Supervision Division of
Beijing BOE Optoelectronics Technology Co., Ltd.
Now he acts as Senior Vice President, Chief Risk Control Officer and Chief Auditor of the Company, Vice President of Beijing
Internal Audit Association, Supervisor of Hefei BOE Optoelectronics Technology Co., Ltd., Chengdu BOE Optoelectronics
Technology Co., Ltd., Hefei BOE Display Light Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., Hefei Xinsheng
Optoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd., and OASIS Investment Co., Ltd., Beijing BOE
Vision-electronic Technology Co., Ltd. Chongqing BOE Display Technology Co., Ltd., Beijing BOE Sensor Technology Co., Ltd.
Erdos Yuansheng Optoelectronics Technology Co., Ltd. and Gaochuang (Suzhou) Electronics Co., Ltd.
Mr. Zhang Zhaohong, bachelor of inorganic nonmetallic materials, engineer. He joined in the Company in 1992, he once worked as
General Manager of China of Beijing Asahi Glass Co., Ltd., General Manager of Chengdu BOE Optoelectronics Technology Co.,
Ltd., Chairman of BOE (Hebei) Mobile Display Technology Co., Ltd., General Manager of Beijing BOE Display Technology Co.,
BOE Technology Group Co., Ltd. Annual Report 2017
Ltd., Chief Operating Officer of BOE Display Device Business Group.
Now he serves as Senior Vice President, Chief Executive Officer of Display and Sensing Device Business Group of the Company,
Chairman of Beijing BOE Optoelectronics Technology Co., Ltd., Chairman of Chengdu BOE Optoelectronics Technology Co., Ltd.,
Chairman of Hefei BOE Optoelectronics Technology Co., Ltd., Chairman of Beijing BOE Display Technology Co., Ltd., Chairman
of Erdos Yuansheng Optoelectronics Co., Ltd., Chairman of Fuzhou BOE Optoelectronics Technology Co., Ltd., Vice President of
Beijing BOE Sensor Technology Co., Ltd. and Director of Wuhan BOE Optoelectronics Technology Co., Ltd.
Mr. Feng Qiang, MBA, master of engineering. He joined in the Company in 1998. He once worked as Vice General Manager of
Science & Technology Park Business Head Office of the Company, Executive Director and General Vice General Manager of
Beijing BOE Land Co., Ltd., Executive Director and Vice General Manager of Beijing Yinghe Century Land Co., Ltd.
Now he works as Senior Vice President, Chief Executive Officer of Health Service Business Group of the Company, Chairman of
Beijing BOE Land Co., Ltd., Chairman of Beijing Yinghe Century Land Co., Ltd., General Manager of Beijing Matsushita Color
CRT Co., Ltd.
Mr. Yang Anle, master. He once worked as Deputy Chief of Financial Division of Beijing Electronic Tube Factory, Manager of
Financial Department of Beijing BOE Investment & Development Co., Ltd., Chief Financial Officer of Beijing Dongdian Industrial
Development Co., Ltd., Supervisor of the 2nd, 3rd, 4th Board of Supervisors of the Company, Employee Supervisor of 5th, 6th
Board of Supervisors.
He now serves as Senior Vice President of the Company, Chief Investment Officer, Chairman of Beijing North Asahi Electronic
Glass Co., Ltd., Chairman of Beijing Rishen Electronic Precise Parts Co., Ltd., Chairman of Beijing Nittan Electronics Co., Ltd.,
Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd.,
Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOE Display Technology Co., Ltd., Director of
Erdos Yuansheng Optoelectronics Co., Ltd., Director of Hefei BOE Display Technology Co., Ltd., Director of Fuzhou BOE
Optoelectronics Technology Co., Ltd., Director of BOE Optoelectronics Technology Co., Ltd., Director of OASIS Investment Co.,
Ltd., Director of Hefei BOE Hospital Co., Ltd., Director of Beijing Yingfei Hailin Venture Capital Management Co., Ltd, Director of
Beijing BOE Vacuum Electric Co., Ltd.
Mr. Tong Guanshan, doctor of computer science of University of Chicago (Ph.D.) and MBA of Massachusetts Institute of
Technology (MBA). He once worked in IBM Global Headquarter. He was in charge of IBM global mergers and acquisitions,
divestitures and strategic alliances and building of partnerships. He acted as leader for several research & development groups in
IBM global research and development department.
He now serves as Senior Vice President, Chief Technology Officer of the Company
He is the specially-hired expert for National “Thousand Talents Program”.
Mr. Liu Hongfeng, master. He once worked as the Deputy Chief of the Financial Planning Department of the Company, the Deputy
Chief and Chief of the BOD Office, the Securities Representative and the Secretary of the 7th Board of the Company.
Now he is a vice president and the Board Secretary of the Company, as well as a director of Beijing Nissin Electronics Precision
Component Co., Ltd.
Mr. Jing Linfeng, bachelor. He once worked as Sales Manager, Sales Chief of Beijing BOE Optoelectronics Technology Co., Ltd.,
General Manager of DBG Laptop Business Department.
He now works as Senior Vice President and Chief Strategic Officer of the Company.
BOE Technology Group Co., Ltd. Annual Report 2017
Posts concurrently held in shareholding entities
√ Applicable □ Not applicable
Allowance from
Starting date of Ending date of
Name Shareholding entity Post the shareholding
tenure tenure
entity (yes/no)
Beijing Electronics Holdings Co.,
Xie Xiaoming Vice president 06/22/2011 Naught Yes
Ltd.
Beijing State-owned Capital
Wang Jing Vice GM 01/26/2014 Naught Yes
Management Center
Beijing Electronics Holdings Co.,
Zhang Jinsong Vice president 08/29/2011 Naught Yes
Ltd.
Beijing BOE Investment &
Zhang Jinsong Deputy chairman 12/23/2015 Naught No
Development Co., Ltd.
Manager of
Beijing Yizhuang Investment Investment
Song Jie 05/26/2008 Naught Yes
Holdings Limited Securities
Department
Minister of
Beijing Electronics Holdings Co., Investment
Mu Chengyuan 06/01/2011 Naught Yes
Ltd. Securities
Department
Beijing BOE Investment & Director, Vice
Mu Chengyuan 12/14/2012 Naught No
Development Co., Ltd. president
Beijing Electronics Holdings Co.,
Xu Tao Finance Minister 10/26/2012 Naught Yes
Ltd.
Investment &
Beijing Yizhuang Investment
Shi Hong, Financing 09/18/2012 Naught Yes
Holdings Limited
Director
Notes to
post-holding in
The documents for holding the posts of shareholders entities haven’t listed the expiry date.
shareholder’s
unit
Post-holding in other units
√ Applicable □ Not applicable
Starting date of Ending date of Allowance from
Name Other entity Post
tenure tenure the entity (yes/no)
Beijing University of Posts and Doctor
Lv Tingjie -- -- Yes
Telecommunications Advisor
Wang Doctor
Renmin University of China -- -- Yes
Huacheng Advisor
BOE Technology Group Co., Ltd. Annual Report 2017
Associate
Hu Xiaolin Tsinghua University -- -- Yes
professor
The Central University of Finance and Post-graduate
Li Xuan -- -- Yes
Economics Tutor
Hefei Construction Investment Holding Vice General
Zhao Wei -- -- Yes
(Group) Co., Ltd. Manager
Notes to
Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not
post-holding in
been fixed.
other unit
Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors and executive
officers as well as those who left in this Reporting Period
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Executive Officers
Decision-making procedure, determination basis and actual remuneration payment of directors, supervisors and executive officers
(1) Determining basis and procedures for the remuneration of directors, supervisors and senior management staffs
Proposal on Principle of Recognition of Remunerations for Directors, Supervisors and Senior management staffs was reviewed and
approved by The 2005 Annual Meeting of Shareholders held on May 29, 2006. Allowance for directors and supervisors of the
Company was reviewed and approved at the Second Special Meeting of Shareholders in 2013 held on July10，2013.
(2) Up to the end of the Reporting Period, the current directors, supervisors and senior management staffs drew their remuneration
from the Company total RMB41.4292 million (before tax). Allowance for independent directors is RMB150,000 (after tax) per year
in 2016. For details please referred to the statement below.
Remuneration for directors, supervisors and senior management staffs of the Company during the Reporting Period
Unit: RMB’0,000
Remuneration
Total before-tax from related
Name Office title Gender Age Incumbent/former remuneration from parties of the
the Company Company
(yes/no)
Wang Dongsheng Chairman of the Board Male 60 Incumbent 231.11 No
Vice Chairman of the
Xie Xiaoming Male 58 Incumbent
Board
Vice Chairman of the
Board, Chief of
Chen Yanshun Male 51 Incumbent 438.64 No
Executive
Committee(CEO)
Wang Jing Director Female 46 Incumbent
Zhang Jinsong Director Male 45 Incumbent
Liu Xiaodong Director, Executive Vice Male 53 Incumbent 356.39 No
BOE Technology Group Co., Ltd. Annual Report 2017
President, President and
COO
Song Jie Director Male 50 Incumbent 4
Executive Vice
Sun Yun President, CFO and Female 47 Incumbent 262.65 No
director
Lv Tingjie Independent Director Male 62 Incumbent 15
Wang Huacheng Independent Director Male 54 Incumbent 15
Hu Xiaolin Independent Director Male 39 Incumbent 15
Li Xuan Independent Director Male 49 Incumbent 15
Chief of Supervisory
Chen Ming Male 60 Incumbent 0
Board（Convener）
Xu Tao Supervisor Male 53 Incumbent 0
Supervisor and the
Mu Chengyuan Secretary of the Male 50 Incumbent 0
Supervisory Committee
Zhao Wei Supervisor Male 49 Incumbent 2
Shi Hong Supervisor Female 35 Incumbent 8
Zhuang Haoyu Supervisor Male 33 Incumbent 8
Miao Chuanbin Employee Supervisor Male 44 Incumbent 96.09 No
Xu Yangping Employee Supervisor Male 43 Incumbent 91.15 No
He Daopin Employee Supervisor Male 48 Incumbent 63.58 No
Dong Youmei Executive Vice President Female 54 Incumbent 223.02 No
Senior Vice President,
Joint COO and CEO of
Yao Xiangjun Male 40 Incumbent 223.76 No
Intellectual System
Business Group
Executive Committee
Yue Zhanqiu Member, Senior Vice Male 50 Incumbent 188.44 No
President, CIO
Senior Vice President,
Feng Liqiong Female 45 Incumbent 196.06 No
Chief Lawyer
Senior Vice President,
Zhong Huifeng Male 47 Incumbent 193.72 No
CHO
Senior Vice President,
Xie Zhongdong Chief Risk Officer and Male 47 Incumbent 197.71 No
Auditor General
Zhang Zhaohong Senior Vice President, Male 47 Incumbent 290.48 No
BOE Technology Group Co., Ltd. Annual Report 2017
CEO of Display and
Sensing Devices
Business Group
Senior Vice President,
Feng Qiang CEO of Health Service Male 41 Incumbent 201.86 No
Business Group
Senior Vice President,
Yang Anle Male 47 Incumbent 188.12 No
Chief Investment Officer
Senior Vice President,
Tong Guanshan Male 49 Incumbent 300.42 No
CTO
Vice President, Secretary
Liu Hongfeng Male 39 Incumbent 149.03 No
of the Board
Jing Linfeng Vice President, CSO Male 39 Incumbent 168.69 No
Total -- -- -- -- 4,142.92 --
Equity incentives for directors, supervisors and executive officers in this Reporting Period
□ Applicable √ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Parent Company 2,078
Number of in-service employees of main subsidiaries 58,455
Total number of in-service employees 62,516
Total number of employees with remuneration in this Reporting
62,516
Period
Number of retirees to whom the Parent Company or its main
subsidiaries need to pay retirement pension
Functions
Function Number of employees
Production 38,208
Sales 1,859
Technical 19,088
Financial
Administrative
Manager 1,642
Others
Total 62,516
BOE Technology Group Co., Ltd. Annual Report 2017
Educational backgrounds
Educational background Number of employees
Doctor and post-doctorate
Master 7,324
Bachelor 14,609
College 16,584
Technical secondary school 10,554
Other 13,132
Total 62,516
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to the
external competitive compensation and internal fairness, established compensation benefit, performance management, cadre
administration, employee rank and related compensation and appraisal management system
3. Employee Training Plans
For the purpose that exploiting and inheriting the intelligent assets with BOE genes and forming the talent cultivation mode with
BOE features, BOE University was set-up in July, 2015, which with the purpose of “Academic drive and professional guide” and a
vision of “being international competitive and respectful Industrial University”. And it undertakes the strategy and service as main
line, driving the development of the Company personnel training system’s further improvement and upgrade and forms training
products line including four categories of leaders, managers, professionals and industry personnel as well as provides targeted
solutions for talent growth at different stages. In 2017, BOE University organized and carried out a lot of trainings covering various
aspects such as management, professional and all-purpose vocational ability, etc. Meanwhile the data of participation people and the
participation period and satisfaction of the training keep continuously increasing.
4. Labor Outsourcing
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2017
Part IX Corporate Governance
I Basic Situation of Corporate Governance
1. Standardized operation and perfection of corporate governance structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance for
Listed Companies, etc., and requirements of Guidelines of the Shenzhen Stock Exchange for the Standardized Operation of Companies
Listed on the Main Board, to continuously improve the corporate governance of the Company, to perfect internal control system as well
as to promote corporate governance level of the Company.
During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectiveness
of corporate governance. During the Reporting Period, the Company revised the Articles of Association and Rules of Procedure of the
Board and newly set up Financing Business Management System, Implementing Rules for the Enterprise Annuity Plan Further promote
the standardization of the corporate governance level. During the Reporting Period, the Company continued to promote the Company’s
governance in many ways. Actively arranged the Company's new directors, supervisors to join special training organized by the
Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propaganda inside the Company. The
Company preserved the related party fund transaction, external guarantee and regularly self-inspection of the shareholding and its
changes of the directors, supervisors and senior executives, through maintaining and perfecting the Shenzhen Stock Exchange Investors
Interactive Platform to strengthen the communication of the investors.
In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliance
with various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal
related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the concept
of “honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.
Main governance of the Company was as follows:
(1) About shareholders and shareholders’ general meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.
Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and regulations.
The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile, on the basis of
ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet voting for
minority shareholders’ joining the general meeting of the shareholders.
(2) About relationship between the controlling shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,
with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevant laws,
regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and no behaviors in
relation to asking the Company to provide guarantees for it or other parties.
(3) About directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulations
and the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all
performed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept a
constant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They also
BOE Technology Group Co., Ltd. Annual Report 2017
took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific
decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of
Association and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors,
namely, the Execution Committee, the Nomination, Remuneration and Appraisal Committee and the Audit Committee. The Company
also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About supervisors and the Supervisory Committee
In the Reporting Period, by way of attending shareholders’ general meetings, sitting in on board sessions, checking the Company’s
compliance with laws and finance periodically, issuing its opinions on relevant matters, etc., the Supervisory Committee supervised the
Company’s finance, duty performance of directors and senior management staffs, management and capital flows between the Company
and its related parties, and safeguarded the legitimate interests and rights of the Company and its shareholders. Sessions of the
Supervisory Committee were organized and convened in strict compliance with the Articles of Association and the Rules of Procedure
for the Supervisory Committee so as to ensure the Supervisory Committee’s activities for duty performance were rightful and valid.
(5) About information disclosure and transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Shenzhen Stock
Exchange for the Standardized Operation of Companies Listed on the Main Board, Companies Publicly Issuing Securities Information
Disclosure Standards on the Contents and Formats No.2 - Content And Format of the Annual Report (2014 revision), the Disclosure of
Information A Business Memo No. 21 - Regular Report Disclosure Related Matters (2014 revision). The Articles of Association and
Management Methods for Information Disclosure and other requirements, the Company disclosed information in a timely and fair
manner and ensured the factuality, accuracy and completeness of the information disclosed.
The Company attached importance to communication with investors through investor visits reception, investors interaction platform,
online business performance explanation session, telephone and attending the investment strategy session organized by the securities
brokers, etc. Except for the aforesaid services, the Company’s senior management joined in the investor conference held by large
international investment institutions, actively communicated with the global institutional investors and discussed the situation and
development strategy of the Company with investors and analyst, so as to promote the open, transparent, efficient and consistent
communication between the Company, investors and analyst of securities, made them known more about the strategy, operation and
development of the Company.
2. Corporate governance system established in the Reporting Period
During the Reporting Period, the Company revised many corporate governance systems in accordance the requirements of the
regulatory authorities and the needs for self-development, relevant systems were disclosed on http://www.cninfo.com.cn, and the
details of revision were presented as follows:
Time of Disclosure Name of System New Creation/Revision
04/25/2017 Articles of the Company Revision
04/25/2017 Members of Board Strategic Committee and Rules of Procedure Revision
Members of Board Strategic Advisory Committee and Rules of
04/25/2017 New creation
Procedure
04/25/2017 Members of Executive Committee and Rules of Procedure Revision
Any significant incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies
□ Yes √ No
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2017
II Independence of Businesses, Personnel, Asset, Organizations and Finance which are
Separate from the Controlling Shareholder
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,
organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production and
business departments and management system, the Company had the capability to make its own decisions, assume sole responsibility
for its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operating
management team. CEO, President, Chief Financial Officer, Secretary of the Board as well as other senior management staffs of the
Company all worked on full-time basis in the Company and did not hold any post in or receive any remuneration in the controlling
shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently
owned the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like
land use rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any
assets of the Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and the
actual controller, with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the
controlling shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system, established the
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account in
bank, and paid tax independently.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special Meetings of Shareholders Convened during this Reporting Period
1. Meetings of Shareholders Convened during this Reporting Period
Index to the
Investor
Meeting Type Convened date Disclosure date disclosed
participation ratio
information
Announcement on
Resolution of the
The 2016 Annual 2016 Annual
Annual Meeting of
Meeting of 35.65% 06/09/2017 06/10/2017 Meeting of
Shareholders
Shareholders Shareholders
(2017-031) disclosed
on China Securities
BOE Technology Group Co., Ltd. Annual Report 2017
Journal, Shanghai
Securities News,
Securities Times, and
Hong Kong Ta Kung
Pao as well as
http://www.cninfo.co
m.cn.
2. Special Meetings of Shareholders Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V Performance of Independent Directors in this Reporting Period
1. Attendance of Independent Directors in Board Meetings and Meetings of Shareholders
Attendance of independent directors in board meetings and meetings of shareholders
Due presence Presence by Presence
Presence on Absent for two Presence for
for board telecommunica through a Absence for
Independent site for board consecutive meetings of
meetings in tion for board proxy for board meetings
director meetings times for board shareholders
this Reporting meetings board meetings (times)
(times) meetings (times)
Period (times) (times) (times)
Lv Tingjie 13 2 11 0 0 No
Wang Huacheng 13 2 11 0 0 No
Hu Xiaolin 13 2 11 0 0 No
Li Xuan 13 2 11 0 0 No
Explanation on failing to be present in person for two consecutive sessions
N/A
2. Objections Raised by Independent Directors on Issues of the Company
Indicate by tick mark whether any independent directors raised any objections on issues of the Company.
□ Yes √ No
No such cases in this Reporting Period.
3. Other Details about the Performance of Duties by Independent Directors
Whether the advices of independent directors for the Company were adopted or not?
√ Yes □ No
Explanation on the advices of independent directors for the Company being adopted or not adopted
The Company has four current independent directors, who are experts and scholars in the fields of finance, law and industry. During
BOE Technology Group Co., Ltd. Annual Report 2017
the Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules, Guidance on Establishing Independent
Director System for Listed Companies, Articles of Association and Independent Director System, the independent directors paid
special attention to the standardized operation of the Company, performed their duties independently and diligently, issued many
precious professional advice in terms of the perfection of systems and routine operating decision-making, etc., and issued their
independent and fair opinion as independent directors on the related-party transactions, engagement of audit firm, decision of annual
remuneration of senior management staffs, external guarantee and other events needing their opinion occurred in the Reporting
Period, as well as played their due roles in perfecting the supervisory mechanism of the Company, protecting the legal right of the
Company and the whole shareholders.
VI Performance of Duties by Specialized Committees under the Board during this Reporting
Period
1. Duty fulfillment of the Strategy Committee under Board of Directors
In the Reporting Period, the Strategy Committee under Board of Directors conscientiously controlled the strategic guidance, significant
projects, and production and operation activities. During the recess of the board session, the Strategy Committee was in charge of
working out the operating strategies of the Company, planning its significant investment and financing projects, and monitoring its
major operation activities, which played an important role in ensuring the Company’s stable and smooth operation in the year.
2. Duty fulfillment of the Audit Committee under Board of Directors
In the Reporting Period, the Audit Committee conscientiously performed its routine duties, and actively advanced the launch of the
audit work for Y2017. Before the periodic reports were submitted to the Board for review, the Audit Committee convened special
sessions to discuss the reports. At the sessions, the committee members listened to relevant reports, expressed their opinions and put
forward constructive advices concerning the Company’s internal control, financial auditing and so on.
The 2017 annual audit work on financial report of the Audit Committee was detailed as follows:
1) Before the audit, the Committee discussed and decided the schedule of audit work for the 2017 annual report with KPMG Huazhen
Certified Public Accountants (LLP) (hereinafter referred to as “KPMG”);
2) Before the presence of KPMG, the Committee reviewed the financial statements prepared by the Company and issued a written
opinion;
3) Upon the presence of KPMG, the Audit Committee convened meetings to communicate with KPMG, reviewed the Company’s
financial statements following the preliminary audit opinion issued by KPMG, and issued the written opinion concerned. Before the
Board reviewed the annual report, the Committee reviewed the annual financial statements, the employment of the CPAs firm, etc., and
made resolutions for further review by the Board.
4) In the audit process, the Committee issued a written Audit Urge Letter to KPMG, asking KPMG to finish the audit in an orderly
manner in strict accordance with the set schedule, so as to submit the annual audit report on time;
The Audit Committee is of the opinion that the Financial Report is complete and factual with complete consolidated entities and
statements, an accurate consolidation basis, a steady and consistent accounting policy, proper application of the accounting policy and
reasonable accounting estimates, which is in line with the Enterprise Accounting Standards and other regulations promulgated by the
Ministry of Finance.
3. Duty fulfillment of Nomination & Remuneration & Appraisal Committee under Board of Directors
In the Reporting Period, in accordance with relevant rules and laws, the Nomination & Remuneration & Appraisal Committee
conscientiously performed its duties endowed by the Board through strictly executing the appointment procedure of directors, and
senior management staffs, as well as the appraisal procedure for directors and senior management staffs. And it reviewed the basic
remuneration of senior managerial staffs of the Company.
BOE Technology Group Co., Ltd. Annual Report 2017
VII Performance of Duties by the Supervisory Committee
Whether the Supervisory Committee finds the Company existing risks or not in the supervisory activities during the Reporting
Period?
□ Yes √ No
The Supervisory Committee has no objection on the supervised events during the Reporting Period
VIII Appraisal and Incentive for Senior Management Staff
According to the performance appraisal method of the Company, Senior management staffs sign an Annual Target Responsibility
Paper with the Company, which sets the annual operation targets, key performance indicators (KPI) as well as the evaluation, reward
and punishment standards. As for the accomplishment of the targets, quarterly analyses, semi-annual reports and annual appraisal
will be conducted. The examination and evaluation results will determine the remunerations, position changes as well as the trainings
to receive of senior management staffs.
BOE Technology Group Co., Ltd. Annual Report 2017
IX Internal Control
1. Serious Internal Control Defects Found in this Reporting Period
□ Yes √ No
2. Internal Control Self-evaluation Report
Disclosure date of the internal control
04/24/2018
self-evaluation report
Index to the disclosed internal control
On April 24, 2018, the Company published 2017 Internal Control Appraisal Report; disclosure website: www.cninfo.com.cn
self-evaluation report
Total assets of the evaluated entities as a
91.00%
percentage in the consolidated total assets
Operating revenues of the evaluated entities
as a percentage in the consolidated operating 95.00%
revenues
Defect identification standards
Type Financial-report related Non-financial-report related
Defect included but not limited to the following characteristics:
(1) the Corporate governance did not form operation mechanism and
The material fault in a financial report includes but not limited to the
execution, a significant decision failed to run;
following types:
(2) Existing control designed for the board of directors, managers above
Nature standard (1) the enterprise corrects the publicized financial statements;
risk of control;
(2) material misstatement is found in the current financial statement,
(3) The directors, supervisors and senior management were found fraud;
which is not found during internal control.
(4) The audit committee and internal audit institutions’ supervision of the
internal control is invalid
BOE Technology Group Co., Ltd. Annual Report 2017
1) The internal control of a financial report (company level, 1) Quantitative standard I of defect identification standards of the
consolidated statements at group level) refers to the internal control non-financial report:
designed and implemented for objectives in the financial report. The fault
in the internal control of a financial report is classified into major fault, The amount of
important fault and general fault, identified with a standard directly Type direct property Significant negative impact
depending on the importance of misstatement in a financial report that losses
may be caused by the fault. The potential misstated amount shall be
Or punishment by the
calculated based on the proportion of faulty sample and the specific
RMB100 government provincial
identification and quantitative procedures and quantitative criteria at
thousand(including level (including provincial)
company level are as follows:
RMB100 below but had no negative
(1) record misstatement sample
thousand)- RMB5 influence to the disclosure of
(2) confirm potential misstatement rate Common million the Company’s periodic
(3) calculate potential misstated amount (=co-current accumulated defect report
amount in corresponding accounting subject × potential misstatement
Quantitative standard rate) Or punishment by the state
RMB5
(4) generally, for misstated amount and fault grade, the following can be government but had no
million(including
taken as reference for the standard for identifying and quantifying the negative influence to the
RMB5 million)
fault in the internal control of a financial report (company level): General Significant disclosure of the Company’s
- RMB10 million
fault: 0.1‰*total group assets ≤ misstated amount < 0.5‰* total group defect periodic report
assets; important fault: 0.5‰* total group assets ≤ misstated amount <
Or public disclosed but had
1‰* total group assets; major fault: misstated amount ≥ 1‰* total group
RMB10 million no negative influence to the
assets. In addition, it must be noted that the company with relatively Major above disclosure of the Company’s
small assets amount and scales may separately confirm quantitative Defect periodic report
standard in formulating a scheme for assessment and the importance level
shall not be higher than the abovementioned standard. 2) The Quantitative standard II when the defect of internal control
2) the assessment team (process level), based on the auditing standard, related to quantifiable assessment KPI target but unable or unable
after confirming a proper criterion, generally applies professional specifically use the aforesaid methods to recognized the type of defect
judgment to reasonably select a percentage based on which to confirm the of internal control and the actual recognition procedure and standards
importance level. The following are examples of reference value: were as following:
BOE Technology Group Co., Ltd. Annual Report 2017
(1) for a profit-making enterprise, the percentage is 5% of profit before The completeness of
The completeness of
tax or net profit after tax from current operations, or 0.5% of the total Type some organization’s KPI
Group KPI target
revenue. Under appropriate circumstances, a certain proportion of total target
assets or net assets may be adopted;
Common 10%≤KPI completeness 30%≤KPI completeness of
(2) for a non-profit organization, 0.5% of the total expenses or revenue;
defect of target＜30% target＜50%
(3) for a mutual fund company, 0.5% of the net assets. Misstated amount
and fault grade: General fault: 25%*importance level ≤ misstated amount Significant 30%≤KPI completeness 50%≤KPI completeness of
< 50%* importance level; important fault: 50%* importance level ≤ defect of target＜50% target＜80%
misstated amount < 75%* importance level; the standard for quantifying Major KPI completeness of KPI completeness of
and identifying the fault in internal control of a financial report (process Defect target≥50% target≥80%
level) when misstated amount ≥75%* importance level shall be based on
the confirmed importance level.
Number of serious financial-report-related
defects
Number of serious
non-financial-report-related defects
Number of important
financial-report-related defects
Number of important
non-financial-report-related defects
BOE Technology Group Co., Ltd. Annual Report 2017
X Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on
December 31, 2017 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations.
Auditor’s report on internal control
Disclosed
disclosed or not
Disclosure date 04/24/2018
Index to the disclosed auditor’s The Company disclosed the Audit Report on Internal Control on April 24, 2018, for details,
report on internal control please refer to http://www.cninfo.com.cn
Type of the auditor’s opinion Standard unqualified opinion
Serious non-financial-report-related
No
defects
Note: The disclosure index can disclose the number, title and the website name where the announcement was published.
Whether any modified opinions are expressed by the CPAs firm in its auditor’s report on the Company’s internal control
□ Yes √ No
Whether the auditor’s report on the Company’s internal control issued by the CPAs firm is consistent with the self-evaluation report
of the Board
√ Yes □ No
BOE Technology Group Co., Ltd. Annual Report 2017
Part X Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full
Yes
I. Basic Information of the Company Bonds
Bonds balance Way of
Name Abbr. Code Release date Due date Interest rate
(RMB’0,000) redemption
2016 Public
offering of the
corporation
Paid for the
bonds for the
interests by
qualified
16BOE01 112358 03/21/2016 03/21/2021 1,000,000 3.15% year and the
investors of
principals once
BOE
when expired.
Technology
Group Co.,
Ltd. (Phase I)
Listed or transferred trading
List on the SZSE.
place of the Company bonds
Appropriate arrangement of the
the qualified investors
investors
List of the interests payment of
On March 21, 2018, the Company completed the 2017 annual interest payout for the qualified
the Company bonds during the
investors of its 2016 corporate bonds.
Reporting Period
Execution of the relevant
regulations during the
Reporting Period such as the
There was affiliated issuers’ up-regulation nominal interest rate option and the investors’ sell-back
affiliated option clause of the
option at the year-end of the third year of the current bond duration; and up to the approval
issuers or investors, special
quotation date of the Annual Report, the bonds were not yet needed to be executed.
clauses such as the
exchangeable regulations of the
Company bonds (if applicable)
BOE Technology Group Co., Ltd. Annual Report 2017
II. List of the Bond Trustee and the Rating Organization
Bond trustee:
Rm. 2203, North Tower,
China Zhu Mingqiang,
Shanghai Securities Plaza, Contact Contact
Name Securities Co., Office address Han Yong, Sheng 021-68801565
528 Pudong Road South, person number
Ltd. Cheng
Shanghai
Rating organization executed the tracking rating of the Company bonds of the Reporting Period:
Office 12/F, PICC Building, No.2 Jianwai Street,
Name United Ratings Co., Ltd.
address Chaoyang District, Beijing
Alternation reasons, execution process and
influences on the investors’ interests etc. if
there was alternation of the bond trustees
Not applicable
and the credit rating agencies engaged by
the Company during the Reporting Period
(if applicable)
III. List of the Usage of the Raised Funds of the Company Bonds
List of the usage of the raised funds and The Company executed the internal decision-making process strictly according to the
the execution process of the Company applications committed by the prospectus as well as the reviewal regulations of the
bonds Board of Directors and meetings of shareholders of the Company.
Ending balance (RMB’0,000) 2.66
The Company signed the Agreement on the 2016 Public Offering of the Corporation
Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE
Operating situation of the raised funds Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co,
special account Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing
Branch of China Merchants Bank Co., Ltd., which set up the raise funds account that
ensure the exclusive use of the special fund of the raise funds.
Whether the usage of the raised funds met
with the usage, using plan and other Yes
agreements committed on the prospectus
IV. Rating Situation of the Company Bonds Information
On Jun. 24, 2016, United Ratings issued the Tracking Rating Report of the 2016 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
Jun. 25, 2016, the tracking rating report of the current bonds by the United Rating will be disclosed on www.szse.cn and
www.unitedratings.com.cn with the public disclosure date of www.szse.cn not later than that of other trading places, media or other
places.
On Jun. 23, 2017, United Ratings issued the Tracking Rating Report of the 2017Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
BOE Technology Group Co., Ltd. Annual Report 2017
Jun. 24, 2017, the tracking rating report of the current bonds by the United Rating will be disclosed on www.szse.cn and
www.unitedratings.com.cn with the public disclosure date of www.szse.cn not later than that of other trading places, media or other
places.
Before Jun. 24, 2018, United Ratings will issue the Tracking Rating Report of the 2018 Corporate Bonds Credit Rating of BOE
Technology Group Co., Ltd. The Company will disclose the tracking rating analysis report on www.szse.cn in time. And please
investors pay attention to it.
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures of
the Company Bonds
There was no guarantee of the corporate bonds of the Reporting Period.
The profits from the issuers’ main business were the main resources of the debt service fund of the bonds of the Reporting Period.
The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every March 21 of each
year from Y2017 to Y2021 is the interest date of the last interest accural year (if met with the legal holidays or rest days, should
postpone which to the subsequent 1st working day); if the investors executed the put-back right, the interest date of the part of the
put-back bonds is every March 21 from Y2017 to Y2021 (if met with the legal holidays or rest days, should postpone which to the
subsequent 1st working day). The principal of the current bonds should be paid at one time when expired. The payment date of the
current bonds would be March 21, 2021 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st
working day); if the investors executed the put-back right, the payment date of the part of the put-back bonds would be March 21,
2019 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day).
The repayment guarantee measures of the corporate bonds of the Reporting Period: to furmulate the Meeting Regulations of the
Bondholders and the repayment guarantee measures; to furmulate and strictly carry out the funds management plans; to fuly exert the
functions of the bond trustees; to strictly disclose the information; at the same time,when expected to fail to repay the principals and
interest of the bonds on time or failed to repay the principals and interest of the bonds when expired, the Company will at least adopt
the measures of the execution of the capital expenditures projects such as to postpone the significant external investment and the
purchase as well as merger and so on that guarantee the repayment of the debts.
During the Reporting Period, there was no alternation of the credit-adding mechanism, debt repayment plan and other repatment
guarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
No such cases in the Reporting Period.
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention to the operating,finance and credit
situation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Trading
of the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed the
responsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.
BOE Technology Group Co., Ltd. Annual Report 2017
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 2017 2016 Change rate of the same period
EBITDA 2,416,492.00 1,490,865.00 62.09%
Current ratio 2.01 2.20 -8.64%
Asset-liability ratio 59.28% 55.14% 4.14%
Quick ratio 1.83 2.01 -8.96%
Total debt ratio of EBITDA 15.92% 13.18% 2.74%
Times interest earned 3.89 1.93 101.55%
Times interest earned of cash 10.03 7.05 42.27%
Times interest earned of
11.03 8.05 37.02%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA increased of 62.09% over the same period of last year, which mainly due to increase in net profit this year of Y2017.
IX. List of the Interest Payment of Other Bonds and Bonds Financing Instruments during the
Reporting Period
No such cases in the Reporting Period.
X. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The Company operates normatively with good reputation and strong ability of profitability and debt payment. And the Company
maintained the long-term strategic partnerships with major cooperative banks. Up to Dec. 31, 2017, the total amount of the credit line
of the major cooperative banks with the Company was of RMB35.8 billion with the used credit line of RMB7.1 billion and the
unused amount of which was of RMB28.7 billion. The principal and the interest of bank loans were repaid on time. There was no
default of bank loans for the Company in the Reporting Period.
XI. List of the Execution of the Agreements or the Commitments Related to the Company
Bonds Raising Specification during the Reporting Period
Up to the approval quotation date of the Annual Report, the Company strictly carried out each agreement and commitment of the
current bond prospectus, and there was no any situation of the inefficient execution of the relevant agreements or commitments
according to the bond prospectus by the Company that caused the negative influences on the bonds investors.
BOE Technology Group Co., Ltd. Annual Report 2017
XII. Significant Events Occurring during the Reporting Period
Up to Dec. 31, 2017, the audited balance of loans (consolidated statement) of the Company is RMB101.12 billion, increasing
RMB32.68 billion compared with RMB68.44billion of audited balance of loans (consolidated statement) of the Company on Dec. 31,
2016. The increased amount accounts for 35.51% in RMB92.016 billion of audited net asset (consolidated statement) on Dec. 31,
2016. The increased amount is within the limit which is approved in the annual shareholders meeting, mainly comprising entrusting
loans, borrowing from bank etc.
The above increased loans do not have significant influence on debt paying ability of the Company.
The Company has disclosed on December 6, 2017 the announcement about accumulative newly increased loans in the year on
http://www.cninfo.com.cn/.
XIII. Whether there Was Guarantor of the Company Bonds
□ Yes √ No
BOE Technology Group Co., Ltd. Annual Report 2017
Part XI Financial Report
I. Audit Report
Type of audit opinion Standard unqualified audit opinion
Signature date of audit report 20 Apr. 2018
Name of the audit agency KPMG Huazhen Certified Public Accountants (LLP)
Reference number of audit report KPMGHZSZ No. 1802368
Name of CPA Zhang Huan, Su Xing
AUDITORS’ REPORT
毕马威华振审字第 1802368 号
All Shareholders of BOE Technology Group Company Limited:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Company
Limited (“BOE”), which comprise the consolidated and parent company’s balance sheet as at
31 December 2017, the consolidated and parent company’s income statement, the
consolidated and parent company’s cash flow statement, and the consolidated and parent
company’s statement of changes in shareholders’ equity for the year then ended, and notes to
the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the consolidated and parent company’s financial position of BOE as at 31 December 2017,
and its consolidated and parent company’s financial performance and cash flows of BOE for
the year then ended in accordance with Accounting Standards for Business Enterprises
issued by the Ministry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of BOE in accordance with the China Code of Ethics for Certified Public
Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 23 and “V. Notes to the
consolidated financial statements” 40.
How the matter was addressed in our
The Key Audit Matter
audit
The revenue of BOE and its subsidiaries Our audit procedures to evaluate revenue
(“BOE Group”) is mainly derived from the recognition included the following:
sales of products relating to display device
across the domestic and overseas market. Evaluate the design and operation
effectiveness of key internal controls
The sales contracts/orders signed between related to revenue recognition;
BOE Group and its customers (mainly
electronic equipment manufacturers) contain Check key sales contracts/orders on a
various trading terms. BOE Group judges the sampling basis to identify relevant trading
transfer timing of major risks and rewards terms, and evaluate whether the
according to the trading terms, and accounting policies for revenue
recognises revenue accordingly. Depending recognition of BOE Group meet the
on the trading terms, the income is usually requirements of the Enterprise
recognized when the goods are delivered Accounting Standards;
and received, or when they are received by On a sampling basis and according to
the carrier. different trading terms, reconcile the
We identified the recognistion of BOE revenue recorded in the current year to
Group’s revenue as a key audit matter relevant supporting files such as relevant
because revenue, as one of BOE Group’s orders, shipping orders, sales invoices,
key performance indicators, involves various customs declarations, delivery receipts,
trading terms, and there is an inherent risk etc. to evaluate whether revenue is
that revenue may not be recognised in a recognized in accordance with the
correct period. accounting policy of BOE Group;
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters (continued)
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 23 and “V. Notes to the
consolidated financial statements” 40.
How the matter was addressed in our
The Key Audit Matter
audit
On a sampling basis and according to
different trading terms, cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders,
shipping orders, sales invoices, customs
declarations, delivery receipts, etc. to
evaluate whether revenue is recorded in
the appropriate period;
Select a sample based on the
characteristics and nature of customer's
transaction, and perform certification on
the balance of accounts receivable as at
the balance sheet date and the sales
transaction amount during the current
year;
On a sampling basis, check the
written-back of revenue after the balance
sheet date (including sales discounts and
sales returns, etc.) with relevant
supporting documents to assess whether
revenue is recorded in the appropriate
period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters (continued)
Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 14, 15 and “V. Notes to the
consolidated financial statements” 11, 12.
The Key Audit Matter How the matter was addressed in our audit
BOE Group continued to invest in Our audit procedures to assess the book value of
building production lines of display fixed assets and construction in progress
device to expand its production capacity. included the following:
As at 31 December 2017, the book value
of fixed assets and construction in Evaluate the design and operation
progress amounted to RMB 139.387 effectiveness of key internal controls
billion. (including estimating useful life and residual
values, etc.) related to the integrity, existence
The judgement made by the and accuracy of fixed assets and construction
management on the following aspects in progress;
will affect the book value of fixed assets
and construction in progress, including: Check the physical status of construction in
progress and fixed assets on a sampling
Determine which type of basis;
expenditures are qualified for
capitalization; Check capital expenditures with relevant
supporting documents (including purchase
Determine the timing for transferring agreements/orders, acceptance orders,
construction in progress to fixed engineering construction contracts, project
assets and making depreciation; progress reports, etc.) on a sampling basis;
Estimate the useful life and residual Assess whether the capitalized
value of corresponding fixed assets. commissioning expenses for the current year
We identified the book value of fixed are in compliance with relevant capitalization
assets and construction in progress of conditions; check the commissioning
BOE Group as a key audit matter expenses with relevant supporting documents
because the valuation of the book value on a sampling basis;
of fixed assets and construction in On the basis of sampling, assess the timing
progress involves significant judgement for transferring construction in progress to
from the management and it is of fixed assets, through the inspection of
importance to the consolidated financial commissioning situation and the documents
statements. for transferring construction in progress to
fixed assets;
Based on our understanding of industry
practices and actual operating conditions of
assets, we evaluate the management's
estimation of the useful life and residual value
of fixed assets.
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Other Information
BOE’s management is responsible for the other information. The other information
comprises all the information included in 2017 annual report of BOE, other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises, and for
the design, implementation and maintenance of such internal control necessary to enable that
the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the ability of
BOE to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless BOE either intends to
liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting
process of BOE.
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements。
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the BOE’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause BOE to cease to continue as a
going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
BOE Technology Group Co., Ltd. Annual Report 2017
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of
China
Zhang Huan (Engagement Partner)
Beijing, China Su Xing
20 April 2018
II. Financial Statements
1. Financial Statements (see schedules)
2. Notes to financial statements (see attachments)
Currency unit for the statements in the notes to the financial statements: RMB Yuan
BOE Technology Group Co., Ltd. Annual Report 2017
Part XII Documents Available for Reference
(I) The financial statements with the signatures and seals of the Company’s legal representative, the President of the
Execution Committee (Chief Executive Officer) of the Company, the Company’s Chief Financial Officer and the head of the
Company’s financial department (equivalent to financial manager); and
(II) The originals of all the Company’s announcements and documents that were disclosed on http://www.cninfo.com.cn in
the Reporting Period.
The above documents can be found at the Board Secretary’s Office.
Chairman of the Board: Wang Dongsheng
Date of the Board’s approval of this Report: April 20, 201
BOE Technology Group Company Limited
ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2017 TO 31 DECEMBER 2017
IF THERE IS ANY CONFLICT OF MEANING BETWEEN THE CHINESE VERSION
AND ENGLISH TRANSLATION, THE CHINESE VERSION WILL PREVAIL
AUDITORS’ REPORT
毕马威华振审字第 1802368 号
All Shareholders of BOE Technology Group Company Limited:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Company
Limited (“BOE”), which comprise the consolidated and parent company’s balance sheet as at
31 December 2017, the consolidated and parent company’s income statement, the
consolidated and parent company’s cash flow statement, and the consolidated and parent
company’s statement of changes in shareholders’ equity for the year then ended, and notes to
the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the consolidated and parent company’s financial position of BOE as at 31 December 2017,
and its consolidated and parent company’s financial performance and cash flows of BOE for
the year then ended in accordance with Accounting Standards for Business Enterprises
issued by the Ministry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of BOE in accordance with the China Code of Ethics for Certified Public
Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
1/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 23 and “V. Notes to the
consolidated financial statements” 40.
How the matter was addressed in our
The Key Audit Matter
audit
The revenue of BOE and its subsidiaries Our audit procedures to evaluate revenue
(“BOE Group”) is mainly derived from the recognition included the following:
sales of products relating to display device
across the domestic and overseas market. Evaluate the design and operation
effectiveness of key internal controls
The sales contracts/orders signed between related to revenue recognition;
BOE Group and its customers (mainly
electronic equipment manufacturers) contain Check key sales contracts/orders on a
various trading terms. BOE Group judges the sampling basis to identify relevant trading
transfer timing of major risks and rewards terms, and evaluate whether the
according to the trading terms, and accounting policies for revenue
recognises revenue accordingly. Depending recognition of BOE Group meet the
on the trading terms, the income is usually requirements of the Enterprise
recognized when the goods are delivered Accounting Standards;
and received, or when they are received by On a sampling basis and according to
the carrier. different trading terms, reconcile the
We identified the recognistion of BOE revenue recorded in the current year to
Group’s revenue as a key audit matter relevant supporting files such as relevant
because revenue, as one of BOE Group’s orders, shipping orders, sales invoices,
key performance indicators, involves various customs declarations, delivery receipts,
trading terms, and there is an inherent risk etc. to evaluate whether revenue is
that revenue may not be recognised in a recognized in accordance with the
correct period. accounting policy of BOE Group;
2/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters (continued)
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 23 and “V. Notes to the
consolidated financial statements” 40.
How the matter was addressed in our
The Key Audit Matter
audit
On a sampling basis and according to
different trading terms, cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders,
shipping orders, sales invoices, customs
declarations, delivery receipts, etc. to
evaluate whether revenue is recorded in
the appropriate period;
Select a sample based on the
characteristics and nature of customer's
transaction, and perform certification on
the balance of accounts receivable as at
the balance sheet date and the sales
transaction amount during the current
year;
On a sampling basis, check the
written-back of revenue after the balance
sheet date (including sales discounts and
sales returns, etc.) with relevant
supporting documents to assess whether
revenue is recorded in the appropriate
period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
3/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Key Audit Matters (continued)
Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 14, 15 and “V. Notes to the
consolidated financial statements” 11, 12.
The Key Audit Matter How the matter was addressed in our audit
BOE Group continued to invest in Our audit procedures to assess the book value
building production lines of display device of fixed assets and construction in progress
to expand its production capacity. As at included the following:
31 December 2017, the book value of
fixed assets and construction in progress Evaluate the design and operation
amounted to RMB 139.387 billion. effectiveness of key internal controls
(including estimating useful life and residual
The judgement made by the values, etc.) related to the integrity,
management on the following aspects will existence and accuracy of fixed assets and
affect the book value of fixed assets and construction in progress;
construction in progress, including:
Check the physical status of construction in
Determine which type of expenditures progress and fixed assets on a sampling
are qualified for capitalization; basis;
Determine the timing for transferring Check capital expenditures with relevant
construction in progress to fixed supporting documents (including purchase
assets and making depreciation; agreements/orders, acceptance orders,
Estimate the useful life and residual engineering construction contracts, project
value of corresponding fixed assets. progress reports, etc.) on a sampling basis;
We identified the book value of fixed Assess whether the capitalized
assets and construction in progress of commissioning expenses for the current year
BOE Group as a key audit matter are in compliance with relevant capitalization
because the valuation of the book value conditions; check the commissioning
of fixed assets and construction in expenses with relevant supporting
progress involves significant judgement documents on a sampling basis;
from the management and it is of On the basis of sampling, assess the timing
importance to the consolidated financial for transferring construction in progress to
statements. fixed assets, through the inspection of
commissioning situation and the documents
for transferring construction in progress to
fixed assets;
Based on our understanding of industry
practices and actual operating conditions of
assets, we evaluate the management's
estimation of the useful life and residual value
of fixed assets.
4/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Other Information
BOE’s management is responsible for the other information. The other information
comprises all the information included in 2017 annual report of BOE, other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises, and for
the design, implementation and maintenance of such internal control necessary to enable that
the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the ability of
BOE to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless BOE either intends to
liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting
process of BOE.
5/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements。
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the BOE’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause BOE to cease to continue as a
going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
6/7
AUDITORS’ REPORT (continued)
毕马威华振审字第 1802368 号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of
China
Zhang Huan (Engagement Partner)
Beijing, China Su Xing
20 April 2018
7/7
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
Assets
Current assets
Cash at bank and on hand V.1 57,128,659,576 58,152,817,223
Bills receivable V.2 833,268,127 1,369,836,650
Accounts receivable V.3 15,513,763,252 16,191,791,617
Prepayments V.4 587,126,751 708,511,473
Interest receivable 89,628,559 125,141,573
Other receivables V.5 728,395,573 903,069,416
Inventories V.6 8,957,719,381 7,833,138,532
Non-current assets due within one year 17,303,152 66,321,715
Other current assets V.7 15,924,433,978 5,691,200,226
Total current assets 99,780,298,349 91,041,828,425
---------------------- ----------------------
Non-current assets
Available-for-sale financial assets V.8 859,899,356 622,502,556
Long-term equity investments V.9 6,928,854,415 1,356,111,395
Investment properties V.10 1,296,662,205 1,192,932,896
Fixed assets V.11 88,625,296,761 69,947,586,967
Construction in progress V.12 50,761,250,426 33,008,248,720
Intangible assets V.13 2,982,664,308 3,136,873,387
Goodwill V.14 197,963,688 197,963,688
Long-term deferred expenses V.15 379,829,430 344,891,227
Deferred tax assets V.16 106,255,657 146,538,565
Other non-current assets V.17 4,189,767,254 4,139,533,216
Total non-current assets 156,328,443,500 114,093,182,617
---------------------- ----------------------
Total assets 256,108,741,849 205,135,011,042
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2017(continued)
(Expressed in Renminbi Yuan)
Note 2017
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.18 3,249,736,430 4,916,965,507
Bills payable V.19 543,798,835 640,262,461
Accounts payable V.20 16,205,788,698 13,835,615,665
Advances from customers V.21 781,324,522 548,942,714
Employee benefits payable V.22 2,217,066,944 1,542,852,266
Taxes payable V.23 775,621,146 656,351,894
Interest payable 847,955,186 676,358,748
Dividends payable V.24 9,651,170 9,651,170
Other payables V.25 15,264,806,774 14,395,525,248
Non-current liabilities due within one year V.26 9,109,708,511 3,684,236,935
Other current liabilities V.27 730,709,590 532,983,474
Total current liabilities 49,736,167,806 41,439,746,082
---------------------- ----------------------
Non-current liabilities
Long-term loans V.28 78,973,633,010 49,885,166,211
Bonds payable V.29 9,966,467,496 9,956,719,508
Long-term payables V.30 1,176,250,982 1,261,446,565
Provisions V.31 16,457,010 16,457,010
Deferred income V.32 2,261,955,307 2,494,122,929
Deferred tax liabilities V.16 563,302,910 448,625,054
Other non-current liabilities V.33 9,130,244,495 7,616,672,523
Total non-current liabilities 102,088,311,210 71,679,209,800
---------------------- ----------------------
Total liabilities 151,824,479,016 113,118,955,882
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2017(continued)
(Expressed in Renminbi Yuan)
Note 2017
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.34 34,798,398,763 35,153,067,743
Capital reserve V.35 38,585,515,122 39,031,357,529
Less: Treasury shares V.36 - 314,350,824
Other comprehensive income V.37 150,602,933 75,718,703
Surplus reserve V.38 889,640,475 743,139,855
Retained earnings V.39 10,385,659,084 4,011,055,487
Total equity attributable to shareholders
of the Company 84,809,816,377 78,699,988,493
---------------------- ----------------------
Non-controlling interests 19,474,446,456 13,316,066,667
Total shareholders’ equity 104,284,262,833 92,016,055,160
---------------------- ----------------------
Total liabilities and shareholders’ equity 256,108,741,849 205,135,011,042
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company balance sheet as at 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
Assets
Current assets
Cash at bank and on hand XV.1 2,990,801,501 7,649,349,412
Bills receivable - 200,197,354
Accounts receivable XV.2 39,897,385 45,853,859
Prepayments 10,315,083 7,462,061
Interest receivable - 21,525,261
Dividends receivable XV.3 10,404,147 1,007,950,479
Other receivables XV.4 1,824,727,573 1,629,176,234
Inventories 12,751,847 12,069,865
Non-current assets due within one year 3,648,840,000 -
Other current assets XV.5 61,082,075 25,504,074
Total current assets 8,598,819,611 10,599,088,599
---------------------- ----------------------
Non-current assets
Available-for-sale financial assets XV.6 149,269,107 177,166,908
Long-term equity investments XV.7 121,193,680,391 99,918,451,449
Investment properties 292,544,063 164,540,581
Fixed assets 982,985,346 862,860,227
Construction in progress 274,400,649 468,494,838
Intangible assets 530,490,988 624,007,700
Long-term deferred expenses 112,776,691 98,745,001
Deferred tax assets XV.8 150,206,185 47,679,645
Other non-current assets 480,909,226 4,010,146,153
Total non-current assets 124,167,262,646 106,372,092,502
---------------------- ----------------------
Total assets 132,766,082,257 116,971,181,101
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company balance sheet as at 31 December 2017 (continued)
(Expressed in Renminbi Yuan)
Note 2017
Liabilities and shareholders’ equity
Current liabilities
Accounts payable 50,152,503 34,015,337
Advances from customers 1,375,022,585 1,093,593,891
Employee benefits payable XV.9 283,000,193 169,917,103
Taxes payable 119,584,927 80,897,741
Interest payable 312,029,252 281,124,448
Dividends payable 6,451,170 6,451,170
Other payables XV.10 9,713,912,548 10,791,929,737
Non-current liabilities due within one year 4,031,840,000 100,000,000
Total current liabilities 15,891,993,178 12,557,929,427
---------------------- ----------------------
Non-current liabilities
Long-term loans XV.11 23,943,000,000 18,922,400,000
Bonds payable V.29 9,966,467,496 9,956,719,508
Deferred income XV.12 130,652,127 148,987,694
Other non-current liabilities 7,600,000,000 -
Total non-current liabilities 41,640,119,623 29,028,107,202
---------------------- ----------------------
Total liabilities 57,532,112,801 41,586,036,629
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company balance sheet as at 31 December 2017 (continued)
(Expressed in Renminbi Yuan)
Note 2017
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.34 34,798,398,763 35,153,067,743
Capital reserve XV.13 37,588,541,593 38,157,600,408
Less: Treasury shares V.36 - 314,350,824
Other comprehensive income XV.14 192,097,489 152,323,461
Surplus reserve V.38 889,640,475 743,139,855
Retained earnings XV.15 1,765,291,136 1,493,363,829
Total shareholders’ equity 75,233,969,456 75,385,144,472
---------------------- ----------------------
Total liabilities and shareholders’ equity 132,766,082,257 116,971,181,101
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
I. Operating income V.40 93,800,479,215 68,895,658,963
II. Less: Operating costs V.40 70,282,477,585 56,585,696,091
Taxes and surcharges V.41 708,381,529 459,263,933
Selling and distribution expenses V.42 2,591,925,798 1,984,361,921
General and administrative
expenses V.43 7,246,543,340 5,618,443,652
Financial expenses V.44 1,948,024,860 2,299,116,897
Impairment losses V.45 2,229,524,682 1,594,488,553
Add: Gains from changes in fair
value V.46 32,048,211 -
Investment income V.47 115,602,683 151,006,609
Including: Gains/ (Loss) from
investment in associates and
joint ventures 169,034 (15,121,347)
Losses from disposal of assets V.48 (69,145) (2,264,480)
Other income V.49 732,550,112 -
III. Operating profit 9,673,733,282 503,030,045
Add: Non-operating income V.50 180,418,858 2,080,912,372
Less: Non-operating expense V.50 113,080,601 71,543,342
IV. Profit before income tax 9,741,071,539 2,512,399,075
Less: Income tax expenses V.51 1,880,659,980 467,228,316
V. Net profit for the year 7,860,411,559 2,045,170,759
---------------------- ----------------------
Attributable to:
Shareholders of the Company 7,567,682,493 1,882,571,674
Non-controlling interests 292,729,066 162,599,085
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December
2017(continued)
(Expressed in Renminbi Yuan)
Note 2017
VI. Other comprehensive income, net of tax V.37 44,387,083 32,059,196
Other comprehensive income (net of tax)
attributable to shareholders of the
Company 74,884,230 (14,434,306)
Items that may be reclassified to profit
or loss:
1 Share of other comprehensive
income of the equity-accounted
investee that may be
reclassified to profit or loss 76,051,151 42,053,252
2 Gains or losses arising from
changes in fair value of
available-for-sale financial
assets 12,910,506 (16,836,007)
3 Translation differences arising
from translation of foreign
currency financial statements (14,077,427) (39,651,551)
Other comprehensive income (net of tax)
attributable to non-controlling interests (30,497,147) 46,493,502
---------------------- ----------------------
VII. Total comprehensive income for the year 7,904,798,642 2,077,229,955
Attributable to:
Shareholders of the Company 7,642,566,723 1,868,137,368
Non-controlling interests 262,231,919 209,092,587
VIII. Earnings per share
(1) Basic earnings per share V.52 0.217 0.054
(2) Diluted earnings per share V.52 0.217 0.054
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company income statement for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
I. Operating income XV.16 2,815,561,521 1,890,892,555
II. Less: Operating costs 29,212,906 73,853,601
Taxes and surcharges XV.17 39,649,316 21,040,511
Selling and distribution
expenses 2,224,628 2,769,587
General and administrative
expenses 1,719,668,597 1,393,918,778
Financial expenses XV.18 505,879,539 211,354,173
Impairment losses - 500,604
Add: Investment income XV.19 950,279,403 1,111,742,988
Including: Gains/ (Loss) from
investment in associates and
joint ventures 169,034 (14,730,259)
Losses from disposal of assets (157,430) (20,682)
Other income XV.20 23,513,456 -
III. Operating profit 1,492,561,964 1,299,177,607
Add: Non-operating income XV.21 3,552,572 260,227,913
Less: Non-operating expense XV.21 18,008,134 1,634,108
IV. Profit before income tax 1,478,106,402 1,557,771,412
Less: Income tax expenses XV.22 13,100,199 48,793,448
V. Net profit 1,465,006,203 1,508,977,964
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company income statement for the year ended 31 December 2017(continued)
(Expressed in Renminbi Yuan)
Note 2017
VI. Other comprehensive income, net of
tax XV.14 39,774,028 42,536,665
Items that may be reclassified to profit
or loss:
1 Share of other comprehensive
income of the equity-accounted
investee that may be reclassified
to profit or loss 76,051,151 42,053,252
2 Gains arising from changes in
fair value of available-for-sale
financial assets (36,277,123) 483,413
VII. Total comprehensive income for the
Year 1,504,780,231 1,551,514,629
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 102,954,356,249 68,853,018,038
Refund of taxes 8,111,061,033 3,917,650,651
Proceeds from other operating
activities 869,275,860 840,215,406
Sub-total of cash inflows 111,934,693,142 73,610,884,095
---------------------- ----------------------
Payment for goods and services (73,250,817,397) (55,859,347,637)
Payment to and for employees (8,015,171,249) (6,063,846,083)
Payment of various taxes (2,480,139,386) (604,705,988)
Payment for other operating activities (1,921,579,095) (1,009,697,267)
Sub-total of cash outflows (85,667,707,127) (63,537,596,975)
---------------------- ----------------------
Net cash inflow from operating
activities V.53(1) 26,266,986,015 10,073,287,120
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2017
(continued)
(Expressed in Renminbi Yuan)
Note 2017
II. Cash flows from investing activities:
Proceeds from disposal of investments 29,310,620,000 31,157,802,962
Investment returns received 114,521,291 149,197,609
Net proceeds from disposal of fixed
assets, intangible assets and other
long-term assets 6,906,760 214,137,335
Cash received from acquisition of
subsidiaries - 2,403,114,462
Proceeds from government grants
related to assets 459,943,640 47,729,081
Proceeds from other investing activities 3,455,877,227 714,771,214
Sub-total of cash inflows 33,347,868,918 34,686,752,663
---------------------- ----------------------
Payment for acquisition of fixed assets,
intangible assets and other long-term
assets (47,741,900,710) (30,702,614,717)
Payment for acquisition of investments (44,667,993,985) (28,468,266,548)
Net payment for disposal of subsidiaries - (10,802,558)
Sub-total of cash outflows (92,409,894,695) (59,181,683,823)
---------------------- ----------------------
Net cash outflow from investing activities (59,062,025,777) (24,494,931,160)
---------------------- ----------------------
III. Cash flows from financing activities:
Proceeds from investors 9,851,250,000 4,500,000,000
Including: Proceeds from non-controlling
shareholders of subsidiaries 9,851,250,000 4,500,000,000
Proceeds from borrowings 53,106,623,454 38,124,199,131
Proceeds from other financing activities 3,185,620,220 1,492,848,996
Sub-total of cash inflows 66,143,493,674 44,117,048,127
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2017
(continued)
(Expressed in Renminbi Yuan)
Note 2017
III. Cash flows from financing activities:
(continued)
Repayments of borrowings (18,337,522,432) (15,306,109,721)
Payment for dividends or interest (3,860,122,769) (2,273,801,245)
Including: Dividends paid to non-
controlling
shareholders of
subsidiaries (7,359,220) (8,732,530)
Net change of cash pledged for
borrowing (3,435,366,588) (17,853,536)
Payment for other financing activities (7,585,109,696) (378,190,824)
Sub-total of cash outflows (33,218,121,485) (17,975,955,326)
---------------------- ----------------------
Net cash inflow from financing
activities 32,925,372,189 26,141,092,801
---------------------- ----------------------
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents (1,571,855,232) 1,452,623,410
---------------------- ----------------------
V. Net increase in cash and cash
equivalents V.53(1) (1,441,522,805) 13,172,072,171
Add: Cash and cash equivalents at
the beginning of the year 49,354,810,388 36,182,738,217
VI. Cash and cash equivalents at the end
of the year V.53(2) 47,913,287,583 49,354,810,388
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company cash flow statement for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Note 2017
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 2,646,300,929 2,674,977,287
Proceeds from other operating
activities 34,989,298 3,981,911,784
Sub-total of cash inflows 2,681,290,227 6,656,889,071
---------------------- ----------------------
Payment for goods and services (538,392,970) (464,475,338)
Payment to and for employees (702,175,894) (514,664,760)
Payment of various taxes (127,394,546) (79,647,917)
Payment for other operating activities (5,016,674,918) (158,578,872)
Sub-total of cash outflows (6,384,638,328) (1,217,366,887)
---------------------- ----------------------
Net cash inflow from operating
activities XV.23(1) (3,703,348,101) 5,439,522,184
---------------------- ----------------------
II. Cash flows from investing activities:
Proceeds from disposal of investments - 8,236,000,000
Investment returns received 1,949,256,701 128,126,936
Net proceeds from disposal of fixed
assets 773,888 775,023
Proceeds from other investing
activities 1,280,375,880 934,888,042
Sub-total of cash inflows 3,230,406,469 9,299,790,001
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company cash flow statement for the year ended 31 December
2017(continued)
(Expressed in Renminbi Yuan)
2017
II. Cash flows from investing activities:
(continued)
Payment for acquisition of fixed assets,
intangible assets and other long-term
assets (137,047,424) (848,208,277)
Payment for acquisition of investments (21,200,608,757) (30,995,624,582)
Payment for other investing activities (800,000,000) (2,040,000,000)
Sub-total of cash outflows (22,137,656,181) (33,883,832,859)
---------------------- ----------------------
Net cash outflow from investing
activities (18,907,249,712) (24,584,042,858)
---------------------- ----------------------
III. Cash flows from financing activities:
Proceeds from borrowings 9,933,000,000 24,830,951,698
Proceeds from other financing activities 11,300,000,000 1,280,000,000
Sub-total of cash inflows 21,233,000,000 26,110,951,698
---------------------- ----------------------
Repayments of borrowings (980,560,000) (670,000,000)
Distribution of dividends and payment
for interest (1,562,806,447) (511,706,064)
Payment for other financing activities (609,376,971) (1,584,350,197)
Sub-total of cash outflows (3,152,743,418) (2,766,056,261)
---------------------- ----------------------
Net cash inflow from financing activities 18,080,256,582 23,344,895,437
---------------------- ----------------------
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company cash flow statement for the year ended 31 December
2017(continued)
(Expressed in Renminbi Yuan)
Note 2017
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents (27,557,680) 26,110,206
---------------------- ----------------------
V. Net (decrease) / increase in cash
and cash equivalents XV.23(1) (4,557,898,911) 4,226,484,969
Add: Cash and cash equivalents at
the beginning of the year 7,548,700,412 3,322,215,443
VI. Cash and cash equivalents at the
end of the year XV.23(2) 2,990,801,501 7,548,700,412
These financial statements were approved by the Board of Directors of the Company on 20
April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company
Chairman of the Chief Executive Chief Financial Financial Officer stamp)
Board Officer Officer
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Less: treasury comprehensive Non-controlling
Note Share capital Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the year 35,153,067,743 39,031,357,529 314,350,824 75,718,703 743,139,855 4,011,055,487 78,699,988,493 13,316,066,667 92,016,055,160
II. Changes in equity for the year
1. Total comprehensive income - - - 74,884,230 - 7,567,682,493 7,642,566,723 262,231,919 7,904,798,642
2. Shareholders’ contributions and
decrease of capital
(1) Acquisitions of subsidiaries’
minorities interests - 123,216,408 - - - - 123,216,408 5,903,507,090 6,026,723,498
(2) Repurchase of treasury
shares - - 609,376,971 - - - (609,376,971) - (609,376,971)
(3) Written off treasury shares (354,668,980) (569,058,815) (923,727,795) - - - - - -
3. Appropriation of profits V.39
(1) Appropriation for surplus
reserve - - - - 146,500,620 (146,500,620) - - -
(2) Distributions to shareholders - - - - - (1,046,578,276) (1,046,578,276) (7,359,220) (1,053,937,496)
III. Balance at the end of the year 34,798,398,763 38,585,515,122 - 150,602,933 889,640,475 10,385,659,084 84,809,816,377 19,474,446,456 104,284,262,833
These financial statements were approved by the Board of Directors of the Company on 20 April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company stamp)
Chairman of the Board Chief Executive Chief Financial Officer Financial Officer
Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Less: treasury comprehensive Non-controlling
Note Share capital Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the year 35,153,067,743 39,018,900,467 - 90,153,009 592,242,059 2,630,912,286 77,485,275,564 865,554,255 78,350,829,819
II. Changes in equity for the year
1. Total comprehensive income - - - (14,434,306) - 1,882,571,674 1,868,137,368 209,092,587 2,077,229,955
2. Shareholders’ contributions and
decrease of capital
(1) Acquisitions of subsidiaries’
minorities interests - 11,579,348 - - - - 11,579,348 12,250,152,355 12,261,731,703
(2) Repurchase of treasury
shares - - 314,350,824 - - - (314,350,824) - (314,350,824)
3. Appropriation of profits V.39
(1) Appropriation for surplus
reserve - - - - 150,897,796 (150,897,796) - - -
(2) Distributions to shareholders - - - - - (351,530,677) (351,530,677) (8,732,530) (360,263,207)
4. Others - 877,714 - - - - 877,714 - 877,714
III. Balance at the end of the year 35,153,067,743 39,031,357,529 314,350,824 75,718,703 743,139,855 4,011,055,487 78,699,988,493 13,316,066,667 92,016,055,160
These financial statements were approved by the Board of Directors of the Company on 20 April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company stamp)
Chairman of the Board Chief Executive Chief Financial Officer Financial Officer
Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company statement of changes in shareholders’ equity for the year ended 31 December 2017
(Expressed in Renminbi Yuan)
Other
Less: treasury comprehensive
Share capital Capital reserve shares income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 35,153,067,743 38,157,600,408 314,350,824 152,323,461 743,139,855 1,493,363,829 75,385,144,472
II. Changes in equity for the year
1. Total comprehensive income - - - 39,774,028 - 1,465,006,203 1,504,780,231
2. Shareholders’ contributions and
decrease of capital
(1) Repurchase of treasury shares - - 609,376,971 - - - (609,376,971)
(2) Written off treasury shares (354,668,980) (569,058,815) (923,727,795) - - - -
3. Appropriation of profits
(1) Appropriation for surplus reserve - - - - 146,500,620 (146,500,620) -
(2) Distributions to shareholders - - - - - (1,046,578,276) (1,046,578,276)
III. Balance at the end of the year 34,798,398,763 37,588,541,593 - 192,097,489 889,640,475 1,765,291,136 75,233,969,456
These financial statements were approved by the Board of Directors of the Company on 20 April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company stamp)
Chairman of the Board Chief Executive Chief Financial Officer Financial Officer
Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Company statement of changes in shareholders’ equity for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Other
Less: treasury comprehensive
Share capital Capital reserve shares income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 35,153,067,743 38,152,869,635 - 109,786,796 592,242,059 486,814,338 74,494,780,571
II. Changes in equity for the year
1. Total comprehensive income - - - 42,536,665 - 1,508,977,964 1,551,514,629
2. Shareholders’ contributions and
decrease of capital
(1) Repurchase of treasury shares - - 314,350,824 - - - (314,350,824)
(2) Written off treasury shares - - - - - - -
3. Appropriation of profits
(1) Appropriation for surplus reserve - - - - 150,897,796 (150,897,796) -
(2) Distributions to shareholders - - - - - (351,530,677) (351,530,677)
4. Others - 4,730,773 - - - - 4,730,773
III. Balance at the end of the year 35,153,067,743 38,157,600,408 314,350,824 152,323,461 743,139,855 1,493,363,829 75,385,144,472
These financial statements were approved by the Board of Directors of the Company on 20 April 2018.
Wang Dongsheng Chen Yanshun Sun Yun Yang Xiao Ping (Company stamp)
Chairman of the Board Chief Executive Chief Financial Officer Financial Officer
Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 147 form part of these financial statements.
BOE Technology Group Company Limited
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by
shares established on 9 April 1993 in Beijing, with its head office located at Beijing.
The parent of the Company and the Company’s ultimate holding company is Beijing
Electronics Holdings Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as “the Group”) comprise three main
business segments: Display device and sensor device business, Smart system
business and Healthcare service business. For information about the subsidiaries of
the Company, please refer to Note VII. During the reporting period, the information
about increases and decreases in the Group’s subsidiaries is disclosed in Note VI.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
III. Significant accounting policies and accounting estimates
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises or referred to as China Accounting
Standards (“CAS”). These financial statements present truly and completely the
consolidated financial position and financial position of the Company as at 31
December 2017, and the consolidated financial performance and financial
performance and the consolidated cash flows and cash flows of the Company for the
year then ended.
These financial statements also comply with the disclosure requirements of
“Regulation on the Preparation of Information Disclosures by Companies Issuing
Securities, No. 15: General Requirements for Financial Reports” as revised by the
China Securities Regulatory Commission (“CSRC”) in 2014.
2. Accounting period
The accounting period is from 1 January to 31 December.
3. Operating cycle
The Company takes the period from the acquisition of assets for processing to until
the ultimate realisation of cash or cash equivalents as a normal operating cycle. The
operating cycle of the Company is usually less than 12 months.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
4. Functional currency
The Company’s functional currency is Renminbi and these financial statements are
presented in Renminbi. Functional currency is determined by the Company and its
subsidiaries on the basis of the currency in which major income and costs are
denominated and settled. Some of the Company’s subsidiaries have functional
currencies that are different from the Company’s functional currency. Their financial
statements have been translated based on the accounting policy set out in Note III.8.
5. Accounting treatments for business combinations involving entities under common
control and not under common control
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business
combination in which all of the combining entities are ultimately controlled by the
same party or parties both before and after the business combination, and that
control is not transitory. The assets acquired and liabilities assumed are measured
based on their carrying amounts in the consolidated financial statements of the
ultimate controlling party at the combination date. The difference between the
carrying amount of the net assets acquired and the consideration paid for the
combination (or the total par value of shares issued) is adjusted against share
premium in the capital reserve, with any excess adjusted against retained earnings.
Any costs directly attributable to the combination are recognised in profit or loss
when incurred. The combination date is the date on which one combining entity
obtains control of other combining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by the
same party or parties both before and after the business combination. Where (1)
the aggregate of the fair value at the acquisition date of assets transferred (including
the acquirer’s previously held equity interest in the acquiree), liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the
acquiree, exceeds (2) the acquirer’s interest in the fair value at the acquisition date of
the acquiree’s identifiable net assets, the difference is recognised as goodwill (see
Note III.18) Where (1) is less than (2), the difference is recognised in profit or loss for
the current period. The costs of issuing equity or debt securities as a part of the
consideration for the acquisition are included in the carrying amounts of these equity
or debt securities upon initial recognition. Other acquisition-related costs are
expensed when incurred. The acquiree’s identifiable asset, liabilities and
contingent liabilities, if the recognition criteria are met, are recognised by the Group
at their acquisition-date fair value. The acquisition date is the date on which the
acquirer obtains control of the acquiree.
For a business combination involving entities not under common control and
achieved in stages, the Group remeasures its previously-held equity interest in the
acquiree to its acquisition-date fair value and recognises any resulting difference
between the fair value and the carrying amount as investment income for the current
period. In addition, any amount recognised in other comprehensive income that
may be reclassified to profit or loss, in prior reporting periods relating to the
previously-held equity interest, and any other changes in the owners’ equity under
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
equity accounting, are transferred to investment income in the period in which the
acquisition occurs (see Note III.12(2)(b)).
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
6. Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the
consolidated financial statements comprise the Company and its subsidiaries.
Control exists when the investor has all of following: power over the investee;
exposure, or rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. When
assessing whether the Group has power, only substantive rights (held by the Group
and other parties) are considered. The financial position, financial performance and
cash flows of subsidiaries are included in the consolidated financial statements from
the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet
within shareholders’ equity. Net profit or loss attributable to non-controlling
shareholders is presented separately in the consolidated income statement below
the net profit line item. Total comprehensive income attributable to non-controlling
shareholders is presented separately in the consolidated income statement below
the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the
opening owners’ equity of the subsidiary, the excess is still allocated against the
non-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from
those of the Company, the Company makes necessary adjustments to the financial
statements of the subsidiary based on the Company’s own accounting period or
accounting policies. Intra-group balances and transactions, and any unrealised
profit or loss arising from intra-group transactions, are eliminated when preparing the
consolidated financial statements. Unrealised losses resulting from intra-group
transactions are eliminated in the same way as unrealised gains, unless they
represent impairment losses that are recognised in the financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities under common control, the subsidiary’s assets and
liabilities based on their carrying amounts in the financial statements of the ultimate
controlling party are included in the consolidated financial statements as if the
combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated
financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities not under common control, the identifiable assets and
liabilities of the acquired subsidiaries are included in the scope of consolidation from
the date that control commences, based on the fair value of those identifiable assets
and liabilities at the acquisition date.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or
losses are recognised as investment income for the current period. The remaining
equity interests is re-measured at its fair value at the date when control is lost, any
resulting gains or losses are also recognised as investment income for the current
period.
When the Group loses control of a subsidiary in multiple transactions in which it
disposes of its long-term equity investment in the subsidiary in stages, the following
are considered to determine whether the Group should account for the multiple
transactions as a bundled transaction:
- arrangements are entered into at the same time or in contemplation of each
other;
- arranges work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least
one other arrangement;
- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for
in accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which
eventually results in the loss of control in the subsidiary, these multiple transactions
are accounted for as a single transaction. In the consolidated financial statements,
the difference between the consideration received and the corresponding proportion
of the subsidiary’s net assets (calculated continuously from the acquisition date) in
each transaction prior to the loss of control shall be recognised in other
comprehensive income and transferred to profit or loss when the parent eventually
loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s
non-controlling shareholders or disposes of a portion of an interest in a subsidiary
without a change in control, the difference between the proportion interests of the
subsidiary’s net assets being acquired or disposed and the amount of the
consideration paid or received is adjusted to the capital reserve (share premium) in
the consolidated balance sheet, with any excess adjusted to retained earnings.
7. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily
withdrawn on demand, and short-term, highly liquid investments that are readily
convertible into known amounts of cash and are subject to an insignificant risk of
change in value.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
8. Foreign currency transactions and translation of financial statements denominated in
foreign currencies
When the Group receives capital in foreign currencies from investors, the capital is
translated to Renminbi at the spot exchange rate at the date of the receipt. Other
foreign currency transactions are, on initial recognition, translated to Renminbi at the
spot exchange rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the
spot exchange rate at the balance sheet date. The resulting exchange differences
are generally recognised in profit or loss, unless they arise from the re-translation of
the principal and interest of specific borrowings for construction of qualifying assets
(see Note III.16). Non-monetary items that are measured at historical cost in
foreign currencies are translated to Renminbi using the exchange rate at the
transaction date. Non-monetary items that are measured at fair value in foreign
currencies are translated using the exchange rate at the date the fair value is
determined. The resulting exchange differences are recognised in profit or loss,
except for the differences arising from the re-translation of available-for-sale financial
assets, which are recognised in other comprehensive income.
Assets and liabilities of foreign operation are translated to Renminbi at the spot
exchange rate at the balance sheet date. Equity items, excluding “retained
earnings and translation differences with respect to a foreign operation in other
comprehensive income”, are translated to Renminbi at the spot exchange rates at
the transaction dates. Income and expenses of foreign operation are translated to
Renminbi at the rates that approximate the spot exchange rates at the transaction
dates. The resulting translation differences are recognised in other comprehensive
income. The translation differences accumulated in shareholders’ equity with
respect to a foreign operation is transferred to profit or loss in the period when the
foreign operation is disposed.
9. Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and
equity securities other than those classified as long-term equity investments (see
Note III.12), receivables, payables, loans and borrowings, bonds payable and share
capital, etc.
(1) Recognition and measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the
Group becomes a party to the contractual provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial
recognition based on the purpose of acquiring assets or assuming liabilities: financial
assets and financial liabilities at fair value through profit or loss, loans and
receivables, held-to-maturity investments, available-for-sale financial assets and
other financial liabilities.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Financial assets and financial liabilities are measured initially at fair value. For
financial assets and financial liabilities at fair value through profit or loss, any related
directly attributable transaction costs are charged to profit or loss; for other
categories of financial assets and financial liabilities, any related directly attributable
transaction costs are included in their initial costs. Subsequent to initial recognition,
financial assets and liabilities are measured as follows:
- Financial assets and financial liabilities at fair value through profit or loss
(including financial assets or financial liabilities held for trading)
Subsequent to initial recognition, financial assets and financial liabilities at fair
value through profit or loss are measured at fair value, and changes therein are
recognised in profit or loss.
- Receivables
Receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
Subsequent to initial recognition, receivables are measured at amortised cost
using the effective interest method.
- Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or
determinable payments and fixed maturity that the Group has the positive
intention and ability to hold to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured at
amortised cost using the effective interest method.
- Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are
designated upon initial recognition as available for sale and other financial assets
which do not fall into any of the above categories.
Available-for-sale investments in equity instruments whose fair value cannot be
measured reliably are measured at cost subsequent to initial recognition. Other
available-for-sale financial assets are measured at fair value subsequent to initial
recognition and changes therein are generally recognised in other comprehensive
income, except for impairment losses and foreign exchange gains and losses
from monetary financial assets which are recognised directly in profit or loss.
When an investment is derecognised, the gain or loss accumulated in other
comprehensive income is reclassified to profit or loss. Dividend income is
recognised in profit or loss when the investee approves the dividends. Interest is
recognised in profit or loss using the effective interest method (see Note III.23 (4)).
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
- Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or
loss are classified as other financial liabilities.
Other financial liabilities include liabilities arising from financial guarantee
contracts. Financial guarantees are contracts that require the Group (i.e. the
guarantor) to make specified payments to reimburse the beneficiary of the
guarantee (the holder) for a loss the holder incurs because a specified debtor fails
to make payment when due in accordance with the terms of a debt instrument.
Where the Group issues a financial guarantee, subsequent to initial recognition,
the guarantee is measured at the higher of the amount initially recognised less
accumulated amortisation and the amount of a provision determined in
accordance with the principles for contingent liabilities (see Note III.22).
Liabilities other than those arising from financial guarantee contracts are
measured at amortised cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
Financial assets and financial liabilities are generally presented separately in the
balance sheet, and are not offset. However, a financial asset and a financial liability
are offset and the net amount is presented in the balance sheet when both of the
following conditions are satisfied:
- the Group currently has a legally enforceable right to set off the recognised
amounts;
- the Group intends either to settle on a net basis, or to realise the financial asset
and settle the financial liability simultaneously.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognised if any of the following conditions were met:
- the Group's contractual rights to the cash flows from the financial asset expire;
- if the the financial asset has been transferred and the Group transfers
substantially all the risks and rewards of ownership of the financial asset to
transferee;
- if the the financial asset has been transferred and the Group neither transfers nor
retains substantially all the risks and rewards of ownership of the financial asset,
but it gives up its control over the financial asset.
Where a transfer of a financial asset in its entirety meets the criteria for
derecognition, the difference between the two amounts below is recognised in profit
or loss:
- the carrying amount of the financial asset transferred;
- the sum of the consideration received from the transfer and any cumulative gain
or loss that has been recognised directly in shareholders’ equity.
The Group derecognises a financial liability (or part of it) only when its contractual
obligation (or part of it) is discharged or cancelled or expires.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit
or loss) are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, an impairment loss
is recognised.
Objective evidence that a financial asset is impaired includes but is not limited to:
(a) significant financial difficulty of the issuer or obligor;
(b) a breach of contract by the borrower, such as a default or delinquency in
interest or principal payments;
(c) it becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;
(d) the disappearance of an active market for that financial asset because of
financial difficulties faced by the issuer;
(e) significant changes with an adverse effect that have taken place in the
technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of an investment in an equity instrument may
not be recovered by the investor;
(f) a significant (i.e. a decline of 50%) or prolonged decline in the fair value (i.e. a
decline persisting for nine months) o an investment in an equity instrument
below its cost.
For the calculation method of impairment of receivables, refer to Note III.10. The
impairment of other financial assets is measured as follows:
- Held-to-maturity investments
Held-to-maturity investments are assessed for impairment on an individual basis
as follows. Where impairment is assessed on an individual basis, an impairment
loss in respect of a held-to-maturity investment is calculated as the excess of its
carrying amount over the present value of the estimated future cash flows
(excluding future credit losses that have not been incurred) discounted at the
original effective interest rate. Impairment losses are recognised in profit or loss.
If, after an impairment loss has been recognised on held-to-maturity investments,
there is a recovery in the value of the financial asset which can be related
objectively to an event occurring after the impairment was recognised, the
previously recognised impairment loss is reversed through profit or loss. A
reversal of an impairment loss will not result in the asset’s carrying amount
exceeding what the amortised cost would have been had no impairment loss been
recognised in prior years.
- Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual
basis and on a collective group basis. When an available-for-sale financial asset
is impaired, the cumulative loss arising from a decline in fair value that has been
recognised directly in shareholders’ equity is reclassified to profit or loss even
though the financial asset has not been derecognised.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
If, after an impairment loss has been recognised on an available-for-sale debt
instrument, the fair value of the debt instrument increases in a subsequent period
and the increase can be objectively related to an event occurring after the
impairment loss was recognised, the impairment loss is reversed through profit or
loss. An impairment loss recognised for an investment in an equity instrument
classified as available-for-sale is not reversed through profit or loss. The
impairment loss on an investment in an unquoted equity instrument whose fair
value cannot be reliably measured is not reversed.
(5) Equity instrument
The consideration received from the issuance of equity instruments net of transaction
costs is recognised in shareholders’ equity. Consideration and transaction costs
paid by the Company for repurchasing self-issued equity instruments are deducted
from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as
treasury shares. All expenditures relating to the repurchase are recorded in the
cost of the treasury shares, with the transaction recording in the share register.
Treasury shares are excluded from profit distributions and are presented as a
deduction under shareholders’ equity in the balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the
extent of the total par value of the treasury shares cancelled. Where the cost of the
treasury shares cancelled exceeds the total par value, the excess is sequentially
deducted from capital reserve (share premium), surplus reserve and retained
earnings sequentially. If the cost of treasury shares cancelled is less than the total
par value, the difference is credited to the capital reserve (share premium).
When treasury shares are disposed of, any excess of proceeds above cost is
recognised in capital reserve (share premium); otherwise, the shortfall is deducted
against capital reserve (share premium), surplus reserve and retained earnings
sequentially.
(6) Convertible instruments
- Convertible instruments containing an equity component
Convertible instruments issued by the Group that can be converted to equity
shares, where the number of shares to be issued and the value of consideration
to be received at that time do not vary, are accounted for as compound financial
instruments containing both liability and equity components.
The initial carrying amount of a compound financial instrument is allocated to its
equity and liability components. The amount recognised in the equity is the
difference between the fair value of the instrument as a whole and the separately
determined fair value of the liability component (including the fair value of any
embedded derivatives other than the equity component). Transaction costs that
relate to the issue of a compound financial instrument are allocated to the liability
and equity components in proportion to the allocation of proceeds.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Subsequent to initial recognition, the liability component is measured at amortised
cost using the effective interest method, unless it is designated upon recognition
at fair value through profit or loss. The equity component is not re-measured.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
If the convertible instrument is converted, the liability component, together with
the equity component, is transferred to equity. If the convertible instrument is
redeemed, the consideration paid for the redemption, together with the
transaction costs that relate to the redemption, are allocated to the liability and
equity components. The method used to allocate the consideration and
transaction costs is the same as that used for issuance. After allocating the
consideration and transaction costs, the difference between the allocated and
carrying amounts is charged to profit and loss if it relates to the liability component
or is directly recognised in equity if it relates to the equity component.
- Other convertible instruments not containing an equity component
For other convertible instruments issued by the Group which do not contain an
equity component, at initial recognition, the derivative component is measured at
fair value, and any excess of proceeds over the derivative component is
recognised as the liability component.
The derivative component is subsequently measured at fair value, and gains or
losses from the changes in the fair value are recognised in profit or loss. The
liability component is subsequently carried at amortised cost using the effective
interest method.
On conversion, the carrying amounts of the derivative and liability components are
transferred to equity. If the instrument is redeemed, any difference between the
redemption amount paid and the carrying amounts of both components is
recognised in profit or loss.
10. Impairment of receivables
Receivables are assessed for impairment both on an individual basis and on a
collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect
of a receivable is calculated as the excess of its carrying amount over the present
value of the estimated future cash flows (exclusive of future credit losses that have
not been incurred) discounted at the original effective interest rate. All impairment
losses are recognised in profit or loss. The Group recognised receivables
individually greater than RMB 50,000,000 as significant and perform impairment test
on an individual basis. Those receivables individually insignificant but with specific
natures, i.e. legal issue or customer credit issue, are also reviewed and tested on an
individual basis.
The assessment is made collectively where receivables share similar credit risk
characteristics (including those not having been individually assessed as impaired),
based on their historical loss experiences, and adjusted by the observable factors
reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective
evidence of a recovery in value of the financial asset which can be related objectively
to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss. A reversal of an impairment loss
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
will not result in the asset’s carrying amount exceeding what the amortised cost
would have been determined had no impairment loss been recognised in prior years.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
11. Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable
materials. Reusable materials include low-value consumables, packaging materials
and other materials, which can be used repeatedly but do not meet the definition of
fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of
purchase, costs of conversion and other expenditures incurred in bringing the
inventories to their present location and condition. In addition to the purchasing
cost of raw materials, work in progress and finished goods include direct labour costs
and an appropriate allocation of production overheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are
amortised when they are used. The amortisation charge are included in the cost of
the related assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value of inventories and method for provision
for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net
realisable value.
Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs to completion and the estimated costs necessary to make
the sale and relevant taxes. The net realisable value of materials held for use in the
production is measured based on the net realisable value of the finished goods in
which they will be incorporated. The net realisable value of the quantity of inventory
held to satisfy sales or service contracts is measured based on the contract price. If
the quantities held by the Group are more than the quantities of inventories specified
in sales contracts, the net realisable value of the excess portion of inventories is
measured based on general selling prices.
Any excess of the cost over the net realisable value of each category of inventories is
recognised as a provision for obsolete inventories, and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
12. Long-term equity investment
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of
the carrying amount of the subsidiary’s equity in the consolidated financial
statements of the ultimate controlling party at the combination date. The
difference between the initial investment cost and the carrying amount of the
consideration given is adjusted to the share premium in the capital reserve, with
any excess adjusted to retained earnings. For a long-term equity investment in a
subsidiary acquired through a business combination achieved in stages which do
not form a bundled transaction and involving entities under common control, the
Company determines the initial cost of the investment in accordance with the
above policies. The difference between this initial cost and the sum of the
carrying amount of previously-held investment and the consideration paid for the
shares newly acquired is adjusted to capital premium in the capital reserve, with
any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not
involving entities under common control, the initial cost comprises the aggregate
of the fair value of assets transferred, liabilities incurred or assumed, and equity
securities issued by the Company, in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not
involving entities under common control and achieved through multiple
transactions in stages which do not form a bundled transaction, the initial cost
comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date, and the additional investment
cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business
combination is initially recognised at the amount of cash paid if the Group
acquires the investment by cash, or at the fair value of the equity securities issued
if an investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement,
other those investments qualified for held for sale (see Note III.28). Except for cash
dividends or profit distributions declared but not yet distributed that have been
included in the price or consideration paid in obtaining the investments, the Company
recognises its share of the cash dividends or profit distributions declared by the
investee as investment income for the current period.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.20.
In the Group’s consolidated financial statements, investments in subsidiaries are
accounted for in accordance with the policies described in Note III.6.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.12 (3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note
III.12 (3)).
An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement, unless the investment is classified as held for
sale (see Note III.28).
The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s
interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially
recognised at the investor’s share of the fair value of the investee’s identifiable net
assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income or
losses and other comprehensive income respectively, and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions, the carrying amount of the investment is reduced
by the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution (referred to as “other
changes in owners’ equity”), is recognised directly in the Group’s equity, and the
carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive
income and other changes in owners’ equity, the Group recognises investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based
on the fair value of the investee’s identifiable net assets at the date of acquisition.
Unrealised profits and losses resulting from transactions between the Group and
its associates or joint ventures are eliminated to the extent of the Group’s interest
in the associates or joint ventures. Unrealised losses resulting from transactions
between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no impairment.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
- The Group discontinues recognising its share of further losses of the investee
after the carrying amount of the long-term equity investment and any long-term
interest that in substance forms part of the Group’s net investment in the joint
venture or associate is reduced to zero, except to the extent that the Group has
an obligation to assume additional losses. If the joint venture or associate
subsequently reports net profits, the Group resumes recognising its share of
those profits only after its share of the profits has fully covered the share of losses
not recognized.
For the Group’s impairment of the investments in joint ventures and associates, refer
to Note III.20.
(3) Criteria for determining the existence of joint control or significant influence over an
investee
Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities (activities with significant
impact on the returns of the arrangement) require the unanimous consent of the
parties sharing control.
The following factors are usually considered when assessing whether the Group can
exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
13. Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost
model and stated in the balance sheet at cost less accumulated depreciation,
amortisation and impairment losses. The cost of investment property, less its
estimated residual value and accumulated impairment losses, is depreciated or
amortised using the straight-line over its estimated useful life, unless the investment
property is classified as held for sale (see Note III.28). For the impairment of the
investment properties, refer to Note III.20.
The estimated useful lives, residual value rates and depreciation rates of each class
of investment properties are as follows:
Estimated useful life Residual value Depreciation
Class (years) rate (%) rate (%)
Land use rights 32 - 50 years 0.0% 2.0% - 3.1%
Buildings 25 - 40 years 3.0% - 10.0% 2.3% - 3.9%
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of
goods, supply of services, for rental or for administrative purposes with useful lives
over one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and
any directly attributable expenditure for bringing the asset to working condition for its
intended use. The cost of self-constructed assets is measured in accordance with
the policy set out in Note III.15.
Where the parts of an item of fixed assets have different useful lives or provide
benefits to the Group in a different pattern, thus necessitating use of different
depreciation rates or methods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets
are capitalised and recognised as assets when it is probable that the related
economic benefits will flow to Group, and the carrying amount of the replaced part is
derecognised. The costs of the day-to-day servicing of fixed assets are recognised
in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation
and impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated
impairment losses, is depreciated using the straight-line method over its estimated
useful life, unless the fixed asset is classified as held for sale (see Note III.28).
The estimated useful lives, residual value rates and depreciation rates of each class
of fixed assets are as follows:
Class Estimated useful life Residual value Depreciation
(years) rate (%) rate (%)
Plant and buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 20 years 0 - 10% 4.5% - 50%
Others 2 - 10 years 0 - 10% 9.0% - 50%
Useful lives, estimated net residual value and depreciation methods are
reviewed at least at each year-end.
(3) For the impairment of the fixed assets, refer to Note III.20.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(4) For the recognition, measurement and depreciation of fixed assets acquired under
finance leases, refer to Note III.27.
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognized:
- when the fixed asset is on holding for disposal; or
- when no future economic benefit is expected to be generated from its use or
disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying
amount of the item, and are recognised in profit or loss on the date of retirement or
disposal.
15. Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour,
capitalised borrowing costs (see Note III.16), and any other costs directly attributable
to bringing the asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to
fixed asset when it is ready for its intended use. No depreciation is provided against
construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20).
16. Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, construction of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing
costs are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is
determined as follows:
Where funds are borrowed specifically for the acquisition, construction of a
qualifying asset, the amount of interest to be capitalised is the interest expense
calculated using effective interest rates during the period less any interest income
earned from depositing the borrowed funds or any investment income on the
temporary investment of those funds before being used on the asset.
To the extent that the Group borrows funds generally and uses them for the
acquisition, construction of a qualifying asset, the amount of borrowing costs
eligible for capitalisation is determined by applying a capitalisation rate to the
weighted average of the excess amounts of cumulative expenditures on the asset
over the above amounts of specific borrowings. The capitalisation rate is the
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
weighted average of the interest rates applicable to the general-purpose
borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated
future cash flow through the expected life of the borrowing or, when appropriate, a
shorter period to the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and
interest on a specific-purpose borrowing denominated in foreign currency are
capitalised as part of the cost of the qualifying asset. The exchange differences
related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognised as a financial expense when incurred.
The capitalisation period is the period from the date of commencement of
capitalisation of borrowing costs to the date of cessation of capitalisation, excluding
any period over which capitalisation is suspended. Capitalisation of borrowing
costs commences when expenditure for the asset is being incurred, borrowing costs
are being incurred and activities of acquisition, construction that are necessary to
prepare the asset for its intended use are in progress, and ceases when the assets
become ready for their intended use. When the parts of the qualifying assets
acquired or constructed that are eligible for capitalisation are completed separately,
and each part is available for use in other parts of the construction process or can be
sold externally, and for the purpose of making the parts of the assets ready for use or
necessary for the sales status, the acquisition or construction activities have been
substantially completed, the Group ceases the capitalization of the borrowing costs
related to the parts of the assets. Capitalisation of borrowing costs is suspended
when the acquisition, construction activities are interrupted abnormally for a period of
more than three months.
17. Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated
amortisation (where the estimated useful life is finite) and impairment losses (see
Note III.20). For an intangible asset with finite useful life, its cost estimated less
residual value and accumulated impairment losses is amortised on the straight-line
method over its estimated useful life, unless the intangible asset is classified as held
for sale (see Note III.28).
The respective amortisation periods for intangible assets are as follows:
Item Amortisation periods (years)
Land use rights 40 - 50 years
Patent and technology rights 5 - 10 years
Computer software 3 - 10 years
Others 5 - 20 years
An intangible asset is regarded as having an indefinite useful life and is not amortised
when there is no foreseeable limit to the period over which the asset is expected to
generate economic benefits for the Group. At the balance sheet date, the Group
does not have any intangible assets with indefinite useful lives.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Expenditure on an internal research and development project is classified into
expenditure incurred during the research phase and expenditure incurred during the
development phase.
Expenditure during the research phase is expensed when incurred. Expenditure
during the development phase is capitalised if development costs can be measured
reliably, the product or process is technically and commercially feasible, and the
Group intends to and has sufficient resources to complete the development.
Capitalised development costs are stated in the balance sheet at cost less
impairment losses (see Note III.20). Other development expenditure is recognised
as an expense in the period in which it is incurred.
18. Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the
acquirer’s interest in the fair value of the identifiable net assets of the acquiree under
the business combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20). On disposal of an asset group or a set of asset
groups, any attributable amount of purchased goodwill is written off and included in
the calculation of the profit or loss on disposal.
19. Long-term deferred expenses
Long-term deferred expenses are amortised on a straight-line method within the
benefit period. The respective amortisation periods of such expenses are as
follows:
Item Amortisation period (years)
Prepayment for public facilities construction and use 10 - 15 years
Cost of operating lease assets improvement 3 - 10 years
Others 2 - 10 years
20. Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet
date based on the internal and external sources of information to determine whether
there is any indication of impairment:
fixed assets
construction in progress
intangible assets
investment properties measured using a cost model
long-term equity investments
goodwill
long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
addition, the Group estimates the recoverable amounts of goodwill at each year-end,
irrespective of whether there is any indication of impairment. Goodwill is allocated
to each asset group or set of asset groups, which is expected to benefit from the
synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups, the same
below) is the higher of its fair value (see Note III.21) less costs to sell and its present
value of expected future cash flows.
An asset group is composed of assets directly relating to cash-generation. An asset
group is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by
discounting the future cash flows, estimated to be derived from continuing use of the
asset and from its ultimate disposal, to their present value using an appropriate
pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an
asset is less than its carrying amount. A provision for impairment of the asset is
recognised accordingly. Impairment losses related to an asset group or a set of
asset groups are allocated first to reduce the carrying amount of any goodwill
allocated to the asset group or set of asset groups, and then to reduce the carrying
amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, such allocation would not reduce the carrying amount of an asset
below the highest of its fair value less costs to sell (if measurable), its present value
of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
21. Fair value measurement
Unless otherwise specified, the Group determines fair value measurement as below:
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date.
When measuring fair value, the Group takes into account the characteristics of the
particular asset or liability (including the condition and location of the asset and
restrictions, if any, on the sale or use of the asset) that market participants would
consider when pricing the asset or liability at the measurement date, and uses
valuation techniques that are appropriate in the circumstances and for which
sufficient data and other information are available to measure fair value. Valuation
techniques mainly include the market approach, the income approach and the cost
approach.
22. Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
A provision is initially measured at the best estimate of the expenditure required to
settle the related present obligation. Where the effect of time value of money is
material, provisions are determined by discounting the expected future cash flows.
Factors pertaining to a contingency such as the risks, uncertainties and time value of
money are taken into account as a whole in reaching the best estimate. Where
there is a continuous range of possible outcomes for the expenditure required, and
each possible outcome in that range is as likely as any other, the best estimate is the
mid-point of that range. In other cases, the best estimate is determined according
to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likely
outcome.
- Where the contingency involves a large population of items, the best estimate is
determined by weighting all possible outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and
adjusts the carrying amount to the current best estimate.
23. Revenue recognition
Revenue is the gross inflow of economic benefit arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity, other
than increase relating to contributions from shareholders. Revenue is recognised in
profit or loss when it is probable that the economic benefits will flow to the Group, the
revenue and costs can be measured reliably and the following conditions are met:
(1) Sale of goods
Revenue is recognised when the general conditions stated above and the following
conditions are satisfied:
- Significant risks and rewards of ownership of goods have been transferred to the
buyer;
- The Group retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable under the sales contract or agreement.
The sales contracts/orders signed between the Company and its customers (mainly
electronic equipment manufacturers) contain various trading terms. The Company
judges the transfer timing of major risks and rewards according to the trading terms,
and recognises revenue accordingly. Depending on the trading terms, the income is
usually recognized when the goods are delivered and received, or when they are
received by the carrier.
(2) Rendering of services
Revenue is measured at the fair value of the consideration received or receivable
under the contract or agreement.
Where the outcome of a transaction involving the rendering of services can be
estimated reliably, revenue is recognised by reference to the stage of completion
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
based on the progress of work performed.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Where the outcome cannot be estimated reliably, revenues are recognised to the
extent of the costs incurred that are expected to be recoverable, and an equivalent
amount is charged to profit or loss as service cost; otherwise, the costs incurred are
recognised in profit or loss and no service revenue is recognized.
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract
revenue and contract expenses associated with the construction contract are
recognised using the percentage of completion method.
The stage of completion of a contract is determined based on the proportion of
contract costs incurred for work performed to date to the estimated total contract
costs.
When the outcome of a construction contract cannot be estimated reliably:
- If the contract costs can be recovered, revenue is recognised to the extent of
contract costs incurred that can be recovered, and the contract costs are
recognised as contract expenses when incurred;
- Otherwise, the contract costs are recognised as contract expenses immediately
when incurred, and no contract revenue is recognised.
(4) Interest income
Interest income is recognised on a time proportion basis with reference to the
principal outstanding and the applicable effective interest rate.
(5) Royalties from intangible assets
Royalty income from intangible assets is determined according to the period and fee
calculation method as stipulated in the relevant contracts or agreements.
24. Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical
insurance, work injury insurance, maternity insurance and housing fund, measured at
the amount incurred or accrued at the applicable benchmarks and rates, are
recognised as a liability as the employee provides services, with a corresponding
charge to profit or loss or included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the
Group participated in a defined contribution basic pension insurance plan and
unemployment insurance plan in the social insurance system established and
managed by government organisations, and annuity plan established by the Group in
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
compliance with the national policy of the corporation annuity. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks
and rates stipulated by the government. Annuity is accrued based on the gross
salaries of the employees. Basic pension insurance contributions are recognised as
part of the cost of assets or charged to profit or loss as the related services are
rendered by the employees.
(3) Post-employment benefits – defined benefit plans.
During the reporting period, the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire, or provides compensation under an offer to encourage employees
to accept voluntary redundancy, a provision is recognised with a corresponding
expense in profit or loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits
because of an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will
carry out the restructuring by starting to implement that plan or announcing its
main features to those affected by it.
25. Government grants
Government grants are non-reciprocal transfers of monetary assets or non-monetary
assets from the government to the Group at no consideration except for any capital
contribution from the government as an investor in the Group. Special funds such
as investment grants allocated by the government, if clearly defined in official
documents as part of “capital reserve” are dealt with as capital contributions, and not
regarded as government grants.
A government grant is recognised when there is reasonable assurance that the grant
will be received and that the Group will comply with the conditions attaching to the
grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured
at the amount that is received or receivable. If a government grant is in the form of
a transfer of a non-monetary asset, it is measured at its fair value.
Government grants related to assets are grants whose primary condition is that the
Group qualifying for them should purchase, construct or otherwise acquire long-term
assets. Government grants related to income are grants other than those related to
assets.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Those related to daily activities of the Company are included in other income or used
to write off related cost based on the nature of economic businesses, or included in
non-operating income and expense in respect of those not related to daily activities
of the Company.
With respect to the government grants related to assets, if the Group first obtains
government grants related to assets and then recognises the long-term assets
purchased and constructed, deferred income is included in profit and loss based on a
reasonable and systematic approach by stages when related assets are initially
depreciated or amortized; or the deferred income is written off against the carrying
amount of the asset when the asset becomes ready for its intended status or
intended use. If the Group obtains government grants related to the assets after
relevant long-term assets are put into use, deferred income is included in profit and
loss based on a reasonable and systematic approach by stages within the remaining
useful life of relevant assets, or the deferred income is written off against the carrying
amount of relevant asset when the grants are obtained; the assets shall be
depreciated or amortized based on the carrying amount after being offset and the
remaining useful life of relevant assets.
For the government grants related to income which are used to compensate for
related costs or losses of the Group in the future period, it shall be recognized as
deferred income, and included in profit and loss or used to offset related costs;
otherwise it shall be directly included in profit and loss or used to offset related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the
Group, if the interest subsidy is appropriated to the lending bank which shall provide
loans to the Group at the policy-based preferential interest rate, the actual loan
amount is used as the entry value and relevant borrowing costs are calculated on the
basis of the loan principal and the preferential interest rate. If the interest subsidy is
directly appropriated to the Group, relevant borrowing costs shall be offset by
corresponding interest subsidy.
26. Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that
they relate to a business combination or items recognised directly in equity (including
other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on
taxable income for the year, plus any adjustment to tax payable in respect of
previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the
Group has a legally enforceable right to set them off and also intends either to settle
on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable
temporary differences respectively, being the differences between the carrying
amounts of assets and liabilities for financial reporting purposes and their tax bases,
which include the deductible losses and tax credits carried forward to subsequent
periods. Deferred tax assets are recognised to the extent that it is probable that
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
future taxable profits will be available against which deductible temporary differences
can be utilised.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or deductible loss).
Deferred tax is not recognised for taxable temporary differences arising from the
initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences
that would follow from the expected manner of recovery or settlement of the carrying
amount of the assets and liabilities, using tax rates enacted at the reporting date that
are expected to be applied in the period when the asset is recovered or the liability is
settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date,
and is reduced to the extent that it is no longer probable that the related tax benefits
will be utilised. Such reduction is reversed to the extent that it becomes probable
that sufficient taxable profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if
all the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and
current tax assets;
- different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax
liabilities or deferred tax assets are expected to be settled or recovered.
27. Operating and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease
is a lease that transfers substantially all the risks and rewards incidental to ownership
of a leased asset to the lessee, irrespective of whether the legal title to the asset is
eventually transferred. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of
another related asset or as expenses on a straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties
(see Note III.13), are depreciated in accordance with the Group’s depreciation
policies described in Note III.14(2). Impairment losses are recognised in
accordance with the accounting policy described in Note III.20. Income derived
from operating leases is recognised in the income statement using the straight-line
method over the lease term. If initial direct costs incurred in respect of the assets
leased out are material, the costs are initially capitalised and subsequently amortised
in profit or loss over the lease term on the same basis as the lease income.
Otherwise, the costs are charged to profit or loss immediately.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(3) Assets acquired under finance leases
When the Group acquires an asset under a finance lease, the asset is measured at
an amount equal to the lower of its fair value and the present value of the minimum
lease payments, each determined at the inception of the lease. At the
commencement of the lease term, the minimum lease payments are recorded as
long-term payables. The difference between the carrying amount of the leased
assets and the minimum lease payments is recognised as unrecognised finance
charges. Initial direct costs attributable to a finance lease that are incurred by the
Group are added to the carrying amount of the leased asset. Depreciation and
impairment losses are accounted for in accordance with the accounting policies
described in Notes III.14 (2) and III.20, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset
at the end of the lease term, the leased asset is depreciated over its estimated useful
life. Otherwise, the leased asset is depreciated over the shorter of the lease term
and its estimated useful life.
Unrecognised finance charge under a finance lease is amortised using an effective
interest method over the lease term. The amortisation is accounted for in
accordance with the principles of borrowing costs (see Note III.16).
At the balance sheet date, the difference between long-term payables related to
finance leases and unrecognized financing expenses is stated as long-term liabilities
and long-term liabilities due within one year respectively.
28. Assets held for sale and discontinued operations
(1) Assets held for sale
A non-current asset or disposal group is accounted for as held for sale when the
carrying amount is recovered through disposal instead of continuous use of a
non-current asset or disposal group.
A disposal group is a group of assets to be disposed of together as a group in a
single transaction, and liabilities directly associated with those assets that will be
transferred in the transaction.
A non-current asset or disposal group is accounted for as held for sale when all the
following criteria are met:
- The non-current asset or disposal group must be available for immediate
sale in their present condition based on similar transactions of assets selling or
disposal groups;
- The selling is highly probable, ie. the Group has decided to dispose the
assets and has signed a legally binding purchase agreement with other parties
and the transaction is to be completed within one year.
Non-current assets held for sale are initially and subsequently stated at the lower of
carrying amount and fair value (see Note III.21) less costs to sell (excluding the
measurement of financial assets (see Note III.9), deferred tax assets (see Note
III.26) or disposal group. Any excess of the carrying amount over the fair value (see
Note III.21) less costs to sell is recognised as an impairment loss and included in
profit or loss.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(2) Discontinued operations
The Group classifies a component that is separately identifiable, and the
component either has been disposed of or is classified as held for sale, and satisfies
one of the following conditions as a discontinued operation.
- It represents a separate major line of business or separate geographical area of
operations;
- It is part of a single co-ordinated plan to dispose of a separate major line of
business or separate geographical area of operations;
- It is a subsidiary acquired exclusively with a special purpose to resale
For the Group's discontinued operations during the current period, the profit and loss
from continuing operations and the profit and loss from discontinued operations are
respectively presented in the income statement, and the information previously
presented as the profit and loss from continuing operations is reclassified as the
profit and loss from discontinued operations in the comparable accounting period in
the income statement of the comparative period.
29. Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which
will be approved after the balance sheet date, are not recognised as a liability at the
balance sheet date but are disclosed in the notes separately.
30. Related parties
If a party has the power to control, jointly control or exercise significant influence over
another party, or vice versa, or where two or more parties are subject to common
control or joint control from another party, they are considered to be related parties.
Related parties may be individuals or enterprises. Enterprises with which the
Company is under common control only from the State and that have no other
related party relationships are not regarded as related parties.
In addition, related parties are determined based on the disclosure requirements
of the Administrative Procedures on the Information Disclosures of Listed Companies
issued by the CSRC.
31. Segment reporting
Operating segments are determined based on the structure of the Group’s internal
organisation, management requirements and internal reporting system. Two or
more operating segments may be aggregated into a single operating segment if the
segments have similar economic characteristics, and are same or similar in respect
of the nature of each product and service; the nature of production processes; the
type or class of customers for the products and services; the methods used to
distribute the products or provide the services; the nature of the regulatory
environment. Reportable segments are identified based on operating segments
taking into account of materiality principle.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Inter-segment revenues are measured on the basis of actual transaction price for
such transactions for segment reporting. Segment accounting policies are
consistent with those for the consolidated financial statements.
32. Significant accounting estimates and judgements
The preparation of financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
Expect for accounting estimates related to depreciation and amortisation of assets
such as fixed assets and intangible assets (see Note III. 14 and 17) and provision for
impairment of various types of assets (see Note V. 3, 5, 6, 8, 9, 11, 12, 13 and 14,
and Note XV. 2 and 4). Other significant accounting estimates are as follows:
(i) Note V. 16 – Recognition of deferred tax asset;
(ii) Note V. 27 – Assurance of product quality;
(iii) Note IX. – Fair value measurements of financial instruments.
Significant judgements made by the Group in the application of accounting policies
are as follows:
(i) Note V. 33 – Convertible debt and equity investment with redemption
provisions terms are categorised as financial liabilities; and
(ii) Note VII. 1(1) –Disclosure of significant judgements and assumptions of control
and exercising significant influence over other entities.
33. Changes in accounting policies
(a) Changes in accounting policies and their reasons
The MOF issued the Accounting Standards for Business Enterprises No.
42—Non-current Assets and Disposal Groups Held for Sale and Discontinued
Operations (ASBE 42) and the revised Accounting Standards for Business
Enterprises No. 16 - Government Grants (ASBE 16 (2017)) in April and May
2017 respectively. The effective date of ASBE 42 and ASBE 16 (2017) are 28
May and 12 June 2017.
Significant accounting policies after the adoption of the above Accounting
Standards for Business Enterprises are disclosed in Note III.
In addition, the MOF issued the Notice on Issuing the Revised Formats of
Financial Statements for General Enterprises (Caikuai [2017] No.30) in
December 2017. The Company has prepared its financial statements for the
year ended 31 December 2017 in accordance with the Notice.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
Impacts of the adoption of the above accounting standards and regulations are
as follows:
(i) Held for sale and discontinued operations
The adoption of this standard has no significant impact on the Group's
financial position and operating performance.
(ii) Government grants
In accordance with ASBE 16 (2017), the Company has reviewed the
government grants on 1 January 2017 and updated corresponding
accounting policies using prospective application method. The
accounting treatment and disclosure requirements for government grants
in 2016 are still subject to relevant enterprise accounting standards
before the issuance of ASBE 16 (2017).
Impacts of the adoption of this standard are as follows:
- Certain government grants related to assets were changed from
deferred income to write off the book value of related assets;
- Certain government grants related to income are included in the
income statement, and changed from non-operating income to other
income or used to write off related cost based on the nature of
economic businesses in respect of those related to daily activities of
the Company, or included in non-operating income and expense in
respect of those not related to daily activities of the Company.
(iii) Gains from disposal of assets
The Company has prepared its financial statements for the year ended
31 December 2017 in accordance with Caikuai [2017] No.30.
Comparative figures have been adjusted retrospectively. The adoption of
Caikuai [2017] No.30 has no material effect on the financial position and
operating performance of the Company.
According to this standard, the Company has added a separate line item
“Gains from asset disposals” in the income statement to present gains or
losses arising from disposals of those classified as non-current assets
(excluding financial instruments, long-term equity investments and
investment property) or disposal groups, and gains or losses arising from
disposals of those not classified as fixed assets, construction in progress
and intangible assets. The above gains or losses were previously
presented in “Non-operating income” or “Non-operating expenses”.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
(b) Effects from changes in accounting policies on the financial statements for the
current year
The consolidated and parent company’s income statement for the year ended
31 December 2017, the consolidated balance sheet and parent company’s
balance sheet as at 31 December 2017 which have been prepared in
accordance with the changed accounting policies, compared with those which
were parepared in accordance with the previous accounting policies, the
details of impacted items are as follows:
- The impacts from the changes in accounting policies during the year over
the consolidated income statement and the income statement for the year
ended 31 December 2017 are as follows:
(decreased) / Increased
amount of the items of financial
statements after the adoption of the
changed accounting policies
The Group The Company
Costs of principal activities (84,619,955) (2,559,167)
Financial expenses (36,417,041) (25,898,470)
Other income 732,550,112 23,513,456
Non-operating income (853,587,108) (51,971,093)
Total profit - -
- The impacts from the changes in accounting policies during the year over
the consolidated balance sheet and the balance sheet as at 31 December
2017 are as follows:
(decreased) / Increased amount of
the items of financial statements after
the adoption of the
changed accounting policies
The Group The Company
Assets:
Fixed assets (344,577,135) -
Intangible assets (26,258,837) (26,258,837)
Liabilities:
Deferred income (370,835,972) (26,258,837)
Shareholders' equity - -
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
IV. Taxation
1. Main types of taxes and corresponding rates
Tax type Tax basis Tax rate
Value-added tax (VAT) Output VAT is calculated on product sales and 6%, 11%
taxable services revenue, based on tax laws. 13%, 17%
The remaining balance of output VAT, after
subtracting the deductible input VAT of the period,
is VAT payable.
Business tax Based on taxable revenue before 1 May 2016. 3%, 5%
Aaccording to Caishui [2016] No. 36, jointly issued
by MOF and the State Administration of Taxation,
all taxpayers subject to business tax in China are
included in the scope of the VAT pilot scheme.
Effective from 1 May 2016, those taxpayers are
required to pay VAT in lieu of business tax.
City maintenance and Based on business tax and VAT paid, and VAT 7%, 5%
construction tax exemption and offset for the period
Education surcharges Based on business tax and VAT paid, and VAT 3%, 2%
and local education exemption and offset for the period
surcharge
Corporate income tax Based on taxable profits 15% - 25%
2. Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2016: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China (“new
tax law”) treatment No.28, corporate income tax for key advanced and high-tech
enterprises supported by the State is applicable to a preferential tax rate of 15%.
On 25 October 2017, the Company renewed the High-tech Enterprise Certificate No.
GR201711002584, which was entitled jointly by Beijing Municipal Science and
Technology Commission, Beijing Municipal Financial Bureau, Beijing Municipal State
Administration of Taxation and Beijing Municipal Local Administration of Taxation.
The Company is subject to corporate income tax rate of 15% since the date of
certification with the valid period of three years.
Pursuant to the new tax law, the income tax rate applicable to other subsidiaries of
the Group is 25% other than the following subsidiaries and the overseas subsidiaries
which subject to the local income tax rate.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2017
The subsidiaries that are entitled to preferential tax treatments are as follows:
Company name Preferential Reason
rate
Beijing BOE Optoelectronics Technology 15% High-tech Enterprise
Co., Ltd. (BOE OT) Certificate
Chengdu BOE Optoelectronics Technology 15% High-tech Enterprise
Co., Ltd (Chengdu Optoelectronics ) Certificate
Hefei BOE Optoelectronics Technology Co., 15% High-tech Enterprise
Ltd.(Hefei BOE) Certificate
Beijing BOE Display Technology Co., Ltd. 15% High-tech Enterprise
(BOE Display) Certificate
Hefei Xinsheng Optoelectronics Technology 15% High-tech Enterprise
Co., Ltd. Certificate
(Hefei Xinsheng)
Ordos Yuansheng Optoelectronics Co., Ltd. 15% Encouraged
(Yuansheng Optoelectronics) enterprise in Western
Regions
Chongqing BOE Optoelectronics Co., Ltd. 15% Encouraged
(Chongqing BOE) enterprise in Western
Regions
BOE (Hebei) Mobile Technology Co., Ltd. (BOE 15% High-tech Enterprise
Hebei) Certificate
BOE Optical Science and technology Co., 15% High-tech Enterprise
Ltd (Optical Technology) Certificate
BOE Semi-conductor Co., Ltd. 15% High-tech Enterprise
(BOE Semiconductor) Certificate
Beijing BOE Special Display Technology Co., 15% High-tech Enterprise
Ltd. (Special Display) Certificate
Beijing BOE Vacuum Electronics Co., Ltd. 15% High-tech Enterprise
(Vacuum Electronics) Certificate
Beijing ASAHI Electronic Materials Co., Ltd. 15% High-tech Enterprise
(ASAHI Materials) Certificate
Beijing BOE Vacuum Technology Co., Ltd. 15% High-tech Enterprise
(Vacuum Technology)
