BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary) Stock Code: 200725 Stock Name: BOE-B Announcement No. 2019-058 BOE TECHNOLOGY GROUP CO., LTD.
THIRD QUARTER REPORT 2019 (SUMMARY)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
All theCompany’s directors have attended the Board meeting for the review of this Report and its summary.
Mr. Chen Yanshun, theCompany’s legal representative, Mr. Liu Xiaodong, president of theCompany’s Execution Committee (Chief Executive Officer), Ms. Sun Yun, theCompany’s Chief Financial Officer, and Ms. Yang Xiaoping, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes□ No
Reasons for the retrospective restatements:
Changes to the accounting policies.
||||||
|-|-|-|-|-|
|||31 December 2018||Change (%)|
|Item|30 September 2019||||
|||Before|Restated|Restated|
|Total assets (RMB)|324,400,678,094.00|304,028,491,385.00|304,028,491,385.00|6.70%|
|Equity attributable to the listed|86,762,736,301.00||85,856,748,703.00||
|||85,856,748,703.00||1.06%|
|company’s shareholders (RMB)|||||

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
||||||
|-|-|-|-|-|
|Item|Q3 2019|YoY change (%)|Q1-Q3 2019|YoY change (%)|
|Operating revenue (RMB)|30,682,823,546.00|18.05%|85,722,032,233.00|23.40%|
|Net profit attributable to the listed|183,791,110.00||1,852,239,559.00||
|||-54.49%||-45.18%|
|company’s shareholders (RMB)|||||
|Net profit attributable to the listed|||||
|company’s shareholders before|-840,490,839.00|-332.16%|-189,000,405.00|-110.13%|
|exceptional items (RMB)|||||
|Net cash generated from/used in|||16,526,989,409.00||
||--|--||-10.37%|
|operating activities (RMB)|||||
|Basic earnings per share (RMB/share)|0.005|-58.33%|0.053|-45.36%|
|Diluted earnings per share (RMB/share)|0.005|-58.33%|0.053|-45.36%|
|Weighted average return on equity (%)|0.21%|-55.32%|2.14%|-45.41%|

 Notes:
In the 2018 Annual Report, the net profit attributable to the listedcompany’s shareholders before exceptional gains and losses was restated according to the audit results. According to the interpretations of the regulatory document CK[2018] No.15, government subsidies received, whether related to assets or income, shall be presented as cash generated from operating activities” in the cash flow statements. Above adjustment has no influence on total assets and equity attributable to the listedcompany’s shareholders for the end of last year.
Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1-Q3 2019|Note|
|Gain or loss on disposal of non-current assets (inclusive of impairment allowance|||
||-10,469,354.00|N/A|
|write-offs)|||
|Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly|||
||0.00|N/A|
|approved document|||
|Government subsidies charged to current profit and loss (exclusive of government|||
|subsidies given in the Company’s ordinary course of business at fixed quotas or amounts|1,433,252,399.00|N/A|
|as per government’s uniform standards )|||
|Capital occupation charges on non-financial enterprises that are charged to current gains|||
||0.00|N/A|
|and losses|||
|Income equal to the amount by which investment costs for the Company to obtain|||
|subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair|0.00|N/A|
|value of identifiable net assets of investees when making investments|||
|Gains and losses on non-monetary asset swap|0.00|N/A|
|Gains and losses on investment or asset management entrustments to other entities|0.00|N/A|
|Allowance for asset impairments due to acts of God such as natural disasters|0.00|N/A|
|Gains and losses on debt restructuring|0.00|N/A|

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
||||
|-|-|-|
|Restructuring costs in staff arrangement, integration, etc.|0.00|N/A|
|Gains and losses on over-fair value amount as a result of transactions with distinctly|||
||0.00|N/A|
|unfair prices|||
|Current gains and losses on subsidiaries acquired through business mergers under same|||
||0.00|N/A|
|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|N/A|
|business|||
|Gain or loss on fair-value changes in trading financial assets and liabilities and derivative|||
|financial assets and liabilities & investment income from disposal of trading financial|||
|assets and liabilities and derivative financial assets and liabilities, and other creditors’|86,944,711.00|N/A|
|investment (exclusive of effective portion of hedges that arise in the Company’s ordinary|||
|course of business)|||
|Reversed portion of impairment allowance for accounts receivable and contract assets|||
||393,516.00|N/A|
|which are tested individually for impairment|||
|Gains and losses on loan entrustment|0.00|N/A|
|Gains and losses on fair value changes in investment property of which subsequent|||
||0.00|N/A|
|measurement is carried out using fair value method|||
|Effects of all adjustments required by taxation, accounting and other applicable laws and|||
||0.00|N/A|
|regulations on current gains and losses|||
|Income from charges on entrusted management|0.00|N/A|
|Non-operating income and expense other than above|63,888,377.00|N/A|
|Other gains and losses that meet definition of nonrecurring gain/loss|795,126,980.00|N/A|
|Less: Income tax effects|87,489,641.00|N/A|
|Non-controlling interests effects (net of tax)|240,407,024.00|N/A|
|Total|2,041,239,964.00|--|

 Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
√Applicable□ Not applicable
||||
|-|-|-|
|Item|Amount|Reason|
|||The Company undertook the transfer and share swap obligations for investments|
|||from non-controlling interests of the Company’s subsidiary Hefei Xinsheng|
|||Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Hefei|
|Other gains and losses that||Xinsheng”), which was recorded into financial liabilities as applicable|
|meet definition of|795,126,980.00|accounting standards related to financial instruments. During the Reporting|
|nonrecurring gain/loss||Period, the Company signed the Equity Transfer Agreement with Hefei Heping|
|||Investment Company Limited (hereinafter referred to as “Hefei Heping”), in|
|||which the Company was agreed to be transferred the 15.3846% shares in Hefei|
|||Xinsheng held by Hefei Heping. Once upon completion of this transfer, Hefei|

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
||
|-|
|Xinsheng will be a wholly-owned subsidiary of the Company. The difference of|
|RMB795,126,980.00 between the cash payment and carrying financial liabilities|
|was recorded into the current profit or loss as required by standards.|

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary) II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Number of ordinary shareholders|1,434,390 (including 1,394,366 A-shareholders and 40,024 B-shareholders）||||||
|Top 10 shareholders|||||||
||||||Shares in pledge or||
||Nature of|Shareholding|Number of|Restricted|||
|Name of shareholder|||||frozen||
||shareholder|percentage|shares|shares|||
||||||Status|Shares|
|Beijing State-owned CapitalOperation and Management Center|State-owned legalperson|11.68%|4,063,333,333|0|||
||||||N/A|0|
|Chongqing Capital Opto-electronicIndustry Investment Co., Ltd.|State-owned legalperson|7.60%|2,643,863,541|0|||
||||||N/A|0|
|Hefei Jianxiang Investment Co.,Ltd.|State-owned legalperson|7.21%|2,510,142,953|0|||
||||||N/A|0|
|Beijing Yizhuang InvestmentHoldings Co., Ltd|State-owned legalperson|3.36%|1,168,209,006|0|||
||||||N/A|0|
|Beijing BOE Investment &Development Co., Ltd.|State-owned legalperson|2.36%|822,092,180|0|||
||||||N/A|0|
|Hong Kong Securities ClearingCompany Ltd.|Foreign legalperson|1.37%|477,597,769|0|||
||||||N/A|0|
|Beijing Electronics Holdings Co.,Ltd.|State-owned legalperson|0.79%|273,735,583|0|||
||||||N/A|0|
|Central Huijin Assets ManagementCo., Ltd|State-owned legalperson|0.71%|248,305,300|0|||
||||||N/A|0|
|Xiamen Hengxing Group Co., Ltd.|Domesticnon-state-ownedlegal person|0.47%|163,345,478|0|||
||||||N/A|0|
|China Securities FinanceCorporation Limited|Domesticnon-state-ownedlegal person|0.38%|132,480,249|0|||
||||||N/A|0|
|Top 10 unrestricted shareholders|||||||
||||Shares by type||||
|Name of shareholder|Unrestricted shares||||||
||||Type||Shares||
|Beijing State-owned CapitalOperation and Management Center|4,063,333,333||||||
||||RMB-denominated ordinary stock||4,063,333,333||

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
|||||
|-|-|-|-|
|Chongqing Capital Opto-electronicIndustry Investment Co., Ltd.|2,643,863,541|||
|||RMB-denominated ordinary stock|2,643,863,541|
|Hefei Jianxiang Investment Co.,Ltd.|2,510,142,953|||
|||RMB-denominated ordinary stock|2,510,142,953|
|Beijing Yizhuang InvestmentHoldings Co., Ltd|1,168,209,006|||
|||RMB-denominated ordinary stock|1,168,209,006|
|Beijing BOE Investment &Development Co., Ltd.|822,092,180|||
|||RMB-denominated ordinary stock|822,092,180|
|Hong Kong Securities ClearingCompany Ltd.|477,597,769|||
|||RMB-denominated ordinary stock|477,597,769|
|Beijing Electronics Holdings Co.,Ltd.|273,735,583|||
|||RMB-denominated ordinary stock|273,735,583|
|Central Huijin Assets ManagementCo., Ltd|248,305,300|||
|||RMB-denominated ordinary stock|248,305,300|
|Xiamen Hengxing Group Co., Ltd.|163,345,478|RMB-denominated ordinary stock|163,345,478|
|China Securities FinanceCorporation Limited|132,480,249|||
|||RMB-denominated ordinary stock|132,480,249|
||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 Opto-electronic Industry Investment Co., Ltd., by entering into|||
||Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares|||
||held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd.|||
|Related or acting-in-concert parties|when executing the voting rights of the shareholders.|||
|among shareholders above|4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital|||
||Operation and Management Center handed over 70% of the shares directly held by it to|||
||Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol,|||
||and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except|||
||for disposing right and usufruct of the shares, of which the rest 30% voting right maintained|||
||unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to|||
||Implementation Protocol of Voting Right.|||
||5. Except for the above relationships, the Company does not know any other connected party|||
||or acting-in-concert party among the top 10 shareholders.|||
||The Company’s shareholder Beijing Yizhuang Investment Holdings Co., Ltd. decreased its|||
|Top 10 ordinary shareholders||||
||shareholding in the Company of 30,709,600 shares for involved in refinancing business.|||
|involved in securities margin||||
||The Company’s shareholder Xiamen Hengxing Group Co., Ltd. holds 42,926,898 shares|||
|trading||||
||through the securities margin trading account.|||

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)□ Yes√ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable□ Not applicable
1. The Construction in progress as at 30 September 2019 rose35% compared to 31 December 2018, primarily driven by increase with the progress of new projects in the Reporting Period.
2. Short-term borrowings as at 30 September 2019 rose75% compared to 31 December 2018, primarily driven by optimization of debt structure and reduction of finance costs in the Reporting Period.
3. The current portion of non-current liabilities as at 30 September 2019 rose88% compared to 31 December 2018, primarily driven by the transfer of the current portion of long-term borrowings into this item in the Reporting Period.
4. Bonds payable as at 30 September 2019 declined96% compared to 31 December 2018, primarily driven by the advance cashing of corporate bonds in the Reporting period.
5.R&D expense went up75% during the Reporting Period compared to the same period of last year, primarily driven by a higher amount ofR&D investment in the Reporting Period.
6. Finance costs went down38% during the Reporting Period compared to the same period of last year, primarily driven by reduction of finance costs arising from repayments of carrying convertiblecreditor’s rights by the Company during the Reporting Period. 7. Asset impairment loss went up51% during the Reporting Period compared to the same period of last year, primarily driven by an increase in the inventory valuation allowance recorded in the Reporting Period according to the lower of cost and net realizable value.
8. Return on investment went down71% during the Reporting Period compared to the same period of last year, primarily driven by a decrease in mature wealth management products in the Reporting Period.
9. Net cash generated from/used in financing activities went up38% during the Reporting Period compared to the same period of last year, primarily driven by the putting in place of the projectcompany’s investment funds as the progress of the new project. II Progress, Influence and Solutions with regard to Significant Events
√ Applicable□ Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv Mobile hereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co., Ltd. and Jia Yueting, with the total amount of claims being aboutUS$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance and Civil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdiction objection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's
Court for verdict on jurisdiction objection. The final verdict of the Supreme People's Court is that the appeal of Letv Mobile is
BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary) rejected and the original verdict is maintained. On 8 March 2019, the case was first heard in the Beijing Municipal HigherPeople’s Court and the next step for the Company is to wait for notice or judgment from the court. For receivables corresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulations in accounting standard accordingly; therefore, it has uncertain influences on the Company.
||||
|-|-|-|
|||Index to the related|
|Summary of the significant event|Disclosure date||
|||announcement|
|Announcement on Signing Supplementary Agreement of CooperationAgreement on Life Science and Technology Industrial Base Project (II)|||
||8 September 2019|www.cninfo.com.cn|

Progress of any share repurchases:
□ Applicable√ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary) IV Securities Investments
√ Applicable□ Not applicable
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Gain/loss of||||||||
||||||||Accumulative|Purchased|Sold in|||||
|||||Accounting||changes in fair||||Gain/loss in||||
|Variety of|Symbol of|Name of|Initial||Beginning||changes in fair|in the|the||Ending|Accounting|Capital|
|||||measurement||value in the||||Reporting||||
|security|security|security|investment cost||carrying value||value recorded into|Reporting|Reporting||carrying value|title|source|
|||||model||Reporting||||Period||||
||||||||equities|Period|Period|||||
|||||||Period||||||||
|Domestic||||||||||||||
|||||||||||||Other equity||
|and||TPV||Fair value|||||||||Self-owned|
||HK00903||134,658,158.00||25,613,279.00|-24,470,177.00|-133,515,055.00|0.00|0.00|471,354.00|1,143,103.00|instruments||
|overseas||Technology||method|||||||||funds|
|||||||||||||investment||
|stock||||||||||||||
|Domestic||||||||||||||
|||||||||||||Other equity||
|and||Electronic||Fair value|||||||||Self-owned|
||SH600658||90,160,428.00||83,995,943.00|56,125,880.00|49,961,395.00|0.00|0.00|1,883,379.00|140,121,823.00|instruments||
|overseas||Zone||method|||||||||funds|
|||||||||||||investment||
|stock||||||||||||||
|Domestic||||||||||||||
|||||||||||||Other equity||
|and||Bank of||Fair value|||||||||Self-owned|
||HK01963||120,084,375.00||98,705,065.00|-4,000,184.00|-40,472,517.00|0.00|0.00|3,859,812.00|98,835,126.00|instruments||
|overseas||Chongqing||method|||||||||funds|
|||||||||||||investment||
|stock||||||||||||||
|Domestic||||||||||||||
|||||||||||||Other equity||
|and||China||Fair value|||||||||Self-owned|
||HK06066||70,041,364.00||44,412,577.00|12,415,268.00|-12,468,379.00|0.00|0.00|2,044,411.00|58,945,138.00|instruments||
|overseas||Securities||method|||||||||funds|
|||||||||||||investment||
|stock||||||||||||||
|Domestic||New||Fair value||||||||Other equity|Self-owned|
||HK01518||140,848,850.00||125,909,253.00|-72,588,144.00|-87,705,450.00|0.00|0.00|0.00|57,630,071.00|||
|and||Century||method||||||||instruments|funds|

BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary)
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|overseas|Healthcare||||||||||investment||
|stock|||||||||||||
|Other securities investments held|||||||||||||
|||0.00|--|0.00|0.00|0.00|0.00|0.00|0.00|0.00|--|--|
|at the period-end|||||||||||||
|Total||555,793,175.00|--|378,636,117.00|-32,517,357.00|-224,200,006.00|0.00|0.00|8,258,956.00|356,675,261.00|--|--|
|Disclosure date of the|||||||||||||
|announcement about the board’s|||||||||||||
|||N/A|||||||||||
|consent for the securities|||||||||||||
|investment|||||||||||||
|Disclosure date of the|||||||||||||
|announcement about the general|||||||||||||
|||N/A|||||||||||
|meeting’s consent for the|||||||||||||
|securities investment (if any)|||||||||||||

V Wealth Management Entrustment
√ Applicable□ Not applicable
Unit:RMB’0,000 (in RMB ten thousand yuan)
||||||
|-|-|-|-|-|
|Type of wealth management|Funding source|Principal|Outstanding amount before maturity|Overdue amount|
|Wealth management product purchased from bank and|||||
||Self-funded|674,150|455,750|0|
|structural deposits|||||
|total||674,150|455,750|0|

 High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no protection of the principal:
□ Applicable√ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Third Quarter Report 2019 (Summary) VI Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and Interviews during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
||||Index to main information|
|Date|Way of communication|Type of communication party||
||||communicated|
|24 July 2019|One-on-one meeting|Institution||
||||1. the main situations of the industry|
|27 August 2019|By phone|Institution||
||||2. main operating information of the|
|4 September 2019|One-on-one meeting|Institution||
||||Company|
|12 September 2019|One-on-one meeting|Institution|3. innovations of technology and|
|25 September 2019|One-on-one meeting|Institution|products|
||||4. future strategy layout|
|25 September 2019|One-on-one meeting|Institution||
||||For details, see www.cninfo.com.cn|
|26 September 2019|One-on-one meeting|Individual||

VIII Irregularities in the Provision of Guarantees
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Chairman of the Board(signature)：Chen Yanshun Date of theBoard’s approval of this
Report:30th
October 2019