BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) Stock Code: 200725 Stock Name: BOE-B Announcement No. 2019-025 BOE TECHNOLOGY GROUP CO., LTD.
FIRST 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. Wang Dongsheng, theCompany’s legal representative, Mr. Chen Yanshun, President of the Execution Committee (Chief Executive Officer) of the Company, 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.
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
|Item|Q1 2019|Q1 2018|Change (%)|
|Operating revenue (RMB)|26,454,258,554.00|21,566,813,037.00|22.66%|
|Net profit attributable to the listed company’s shareholders|1,051,781,919.00|2,018,692,554.00||
||||-47.90%|
|(RMB)||||
|Net profit attributable to the listed company’s shareholders||||
||352,304,432.00|1,238,599,228.00|-71.56%|
|before exceptional items (RMB)||||
|Net cash generated from/used in operating activities (RMB)|6,164,241,385.00|7,198,088,816.00|-14.36%|
|Basic earnings per share (RMB/share)|0.030|0.058|-48.28%|
|Diluted earnings per share (RMB/share)|0.030|0.058|-48.28%|
|Weighted average return on equity (%)|1.22%|2.35%|-1.13%|
|Item|31 March 2019|31 December 2018|Change (%)|
|Total assets (RMB)|308,295,146,086.00|304,028,491,385.00|1.40%|
|Equity attributable to the listed company’s shareholders||||
||87,077,785,020.00|85,856,748,703.00|1.42%|
|(RMB)||||

Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1 2019|Note|
|Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)|265,209.00|N/A|
|Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly approved|||
||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 business at fixed quotas or amounts as per|718,192,876.00|N/A|
|government’s uniform standards )|||
|Capital occupation charges on non-financial enterprises that are charged to current gains and|||
||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 lower than the Company’s enjoyable fair value of identifiable|0.00|N/A|
|net assets of investees when making investments|||

BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
||||
|-|-|-|
|Gains and losses on non-monetary asset swap|0.00|N/A|
|Gains and losses on investment or asset management entrustments to other entities|0.00|N/A|
|Allowance for asset impairments due to acts of God such as natural disasters|0.00|N/A|
|Gains and losses on debt restructuring|0.00|N/A|
|Restructuring costs in staff arrangement, integration, etc.|0.00|N/A|
|Gains and losses on over-fair value amount as a result of transactions with distinctly unfair|||
||0.00|N/A|
|prices|||
|Current gains and losses on subsidiaries acquired through business mergers under same control|||
||0.00|N/A|
|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’ investment|45,166,494.00|N/A|
|(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 which|||
||0.00|N/A|
|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|31,130,674.00|N/A|
|Other gains and losses that meet definition of nonrecurring gain/loss|0.00|N/A|
|Less: Income tax effects|54,217,884.00|N/A|
|Non-controlling interests effects (net of tax)|41,059,882.00|N/A|
|Total|699,477,487.00|--|

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
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 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 at|||||||
||1,612,810 (including 1,573,114 A-shareholders and 39,696 B-shareholders)||||||
|the period-end|||||||
|Top 10 shareholders|||||||
|||||Restricted|Shares in pledge||
|||Shareholding|||||
|Name of shareholder|Nature of shareholder||Total shares held|shares|or frozen||
|||percentage|||||
|||||held|Status|Shares|
|Beijing State-owned CapitalOperation and Management Center|State-owned legal person|11.68%|4,063,333,333|0|||
||||||N/A|0|
|Chongqing Ezcapital Opto-electronicIndustry Investment Co., Ltd.|State-owned legal person|7.62%|2,652,813,041|0|||
||||||N/A|0|
|Hefei Jianxiang Investment Co., Ltd.|State-owned legal person|7.21%|2,510,142,953|0|N/A|0|
|Beijing Yizhuang InvestmentHoldings Co., Ltd|State-owned legal person|3.57%|1,241,423,641|0|||
||||||N/A|0|
|Beijing BOE Investment &Development Co., Ltd.|State-owned legal person|2.36%|822,092,180|0|||
||||||N/A|0|
|Hong Kong Securities ClearingCompany Ltd.|Foreign legal person|1.13%|392,805,995|0|||
||||||N/A|0|
|Beijing Electronics Holdings Co., Ltd.|State-owned legal person|0.79%|273,735,583|0|N/A|0|
|Central Huijin Assets ManagementCo., Ltd|State-owned legal person|0.71%|248,305,300|0|||
||||||N/A|0|
|National Social Security FundPortfolio 108|State-owned legal person|0.52%|180,722,899|0|||
||||||N/A|0|
|China Securities Finance CorporationLimited|State-owned legal person|0.38%|132,480,249|0|||
||||||N/A|0|
|Top 10 unrestricted shareholders|||||||
||||Shares by type||||
|Name of shareholder|Unrestricted shares held||||||
||||Type||Shares||
|Beijing State-owned CapitalOperation and Management Center|4,063,333,333||||||
||||RMB ordinary share||4,063,333,333||
|Chongqing Ezcapital Opto-electronicIndustry Investment Co., Ltd.|2,652,813,041||||||
||||RMB ordinary share||2,652,813,041||
|Hefei Jianxiang Investment Co., Ltd.|2,510,142,953||RMB ordinary share||2,510,142,953||

BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
|||||
|-|-|-|-|
|Beijing Yizhuang InvestmentHoldings Co., Ltd|1,241,423,641|||
|||RMB ordinary share|1,241,423,641|
|Beijing BOE Investment &Development Co., Ltd.|822,092,180|||
|||RMB ordinary share|822,092,180|
|Hong Kong Securities ClearingCompany Ltd.|392,805,995|||
|||RMB ordinary share|392,805,995|
|Beijing Electronics Holdings Co., Ltd.|273,735,583|RMB ordinary share|273,735,583|
|Central Huijin Assets ManagementCo., Ltd|248,305,300|||
|||RMB ordinary share|248,305,300|
|National Social Security FundPortfolio 108|180,722,899|||
|||RMB ordinary share|180,722,899|
|China Securities Finance CorporationLimited|132,480,249|||
|||RMB ordinary share|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 Ezcapital Opto-electronic Industry Investment Co., Ltd., by entering into|||
||Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares|||
||held by them respectively unanimous with Beijing BOE Investment & Development Co.,|||
|Related or acting-in-concert parties|Ltd. when executing the voting rights of the shareholders.|||
|among the 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.|||
|Top 10 ordinary shareholders||||
|involved in securities margin trading|None|||
|(if any)||||

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.
□ Yea√ No
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) 2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable□ Not applicable
1. The current portion of non-current liabilities as at 31 March 2019 rose35% compared to 31 December 2018, primarily driven by the transfer of the current portion of long-term borrowings into this item in Q 1 2019.
2. Bonds payable as at 31 March 2019 declined94% compared to 31 December 2018, primarily driven by the advance cashing of corporate bonds in Q 1 2019.
3.R&D expense went up88% during Q 1 2019 compared to Q1 2018, primarily driven by a higher amount ofR&D investment in Q1 2019.
4. Finance costs went up58% during Q 1 2019 compared to Q1 2018, primarily driven by a smaller exchange loss and a higher interest expense resulted from the operation of new projects in Q1 2019.
5. Asset impairment loss went down42% during Q 1 2019 compared to Q1 2018, primarily driven by a decrease in the inventory valuation allowance recorded in Q1 2019 according to the lower of cost and net realizable value.
6. Return on investment went down84% during Q 1 2019 compared to Q1 2018, primarily driven by a decrease in mature wealth management products in Q1 2019.
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 Supreme People's Court made the final verdict and rejected the appeal of Letv mobile, upholding the original verdict. On 8 March 2019, this case was heard for the first time by Beijing Municipal HigherPeople’s Court, waiting for the notice or judgment from the court for the next step. 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.
2. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22 March 2016 reached 3 full years by 21 March 2019. According to regulations, the interest should be paid once per year during the interest-bearing period. According to the agreed put provisions from Prospectus of the Corporate Bonds (Phase I) of BOE Technology Group Co., Ltd. Issued to Public Qualified Investors in 2016, the Company published The First Reminder of No Adjustments to Coupon Rate of Corporate Bonds “16BOE01” and Implementation Measures for Put-backs by Investors (Announcement No.: 2019-001), The Second Reminder of No Adjustments to Coupon Rate of Corporate Bonds “16BOE01” and Implementation Measures for Put-backs by Investors (Announcement No.: 2019-003), and The Third Reminder of No Adjustments to Coupon Rate of Corporate Bonds “16BOE01” and Implementation Measures for Put-backs by Investors (Announcement No.: 2019-004) on 31 January 2019, 1 February 2019, and 12 February 2019 respectively. Investors can choose to sell all their holding
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) “16BOE01” or part of it back to the Company within the registered period of put-backs with the price of RMB100/piece (excluding interests). In accordance with the data provided by Shenzhen Branch of China Securities Depository and Cleaning Corporation Limited, the number of the put-backs of “16BOE01” was 96,705,976, and the price was RMB9,975,221,424.40 (including interests), and the remaining number for trusteeship was 3,294,024. The Company issued Announcement on Payment “16BOE01” Interest 2019 (Announcement No.: 2019-009) on 14 March 2019, in which the interest should be paid as per the standard of RMB31.5 (tax-inclusive) for every 10 bonds. 21 March 2019 was the payment date for capital and interests of this put-back declaration, and the Company has paid principal and the current interests to the bondholders of “16BOE01” declared effectively for put-back. The Company convened the 1st Meeting of Bondholders in 2019 for 2016 Corporate Bonds on 28 March 2019, which reviewed and approved the Proposal on Payment in Advance to 2016 Corporate Bonds of BOE Technology Group Co., Ltd, and the Company disclosed Announcement on Resolutions Made at the 1st Meeting of Bondholders in 2019 for 2016 Corporate Bonds (Announcement No.: 2019-022) on 29 March 2019. The Company paid the interests of “16BOE01” bonds from 21 March 2019 to 2 April 2019 and its principal on 3 April 2019. The Bonds was delisted on 3 April 2019, and the record date of payment for principal and interests was 2 April 2019. The trading of “16BOE01” was terminated on the trading system of Shenzhen Stock Exchange on 3 April 2019. 3. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than5% Stocks (I) (Announcement No.: 2019-007) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than5% Stocks (II) (Announcement No.: 2019-008) on 6 March 2019; shareholders of the Company as Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. planned to reduce no more than1.00% of general capital of the Company by means of centralized competitive bidding within 3 months after 15 working days since the issuance of each Announcement.
||||
|-|-|-|
|||Index to the related|
|Summary of the significant event|Disclosure date||
|||announcement|
|Announcement on Project of Investing and Establishing Beijing BOE Life Science andTechnology Industrial Base (Phase I)|||
||26 March 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.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation of
why:
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
V Securities Investments
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Gain/loss||||||||
|||||||of||||||||
|||||||changes|Accumulative|Purchased|Sold in|||||
|Variety||||Accounting||||||||||
|||||||||||Gain/loss||||
||Symbol of|Name of|Initial||Beginning|in fair|changes in fair|in the|the|||Accounting|Capital|
|of||||measurement||||||in|Ending carrying value|||
||security|security|investment cost||carrying value|value in|value recorded into|Reporting|Reporting|Reporting||title|source|
|security||||model||||||Period||||
|||||||the|equities|Period|Period|||||
|||||||Reporting||||||||
|||||||Period||||||||
|Domestic||||||||||||Other||
|and||TPV||Fair value||||||||equity|Self-owned|
||HK00903||134,658,158.00||25,613,279.00|0.00|9,987,282.00|0.00|0.00|0.00|38,030,589.00|||
|overseas||Technology||method||||||||instruments|funds|
|stock||||||||||||investment||
|Domestic||||||||||||Other||
|and||Electronic||Fair value||||||||equity|Self-owned|
||SH600658||90,160,428.00||83,995,943.00|0.00|43,781,546.00|0.00|0.00|0.00|90,457,170.00|||
|overseas||Zone||method||||||||instruments|funds|
|stock||||||||||||investment||
|Domestic||||||||||||Other||
|and||Bank of||Fair value||||||||equity|Self-owned|
||HK01963||120,084,375.00||98,705,065.00|0.00|-11,584,716.00|0.00|0.00|0.00|108,499,659.00|||
|overseas||Chongqing||method||||||||instruments|funds|
|stock||||||||||||investment||
|Domestic||||||||||||Other||
|and||China||Fair value||||||||equity|Self-owned|
||HK06066||70,041,364.00||44,412,575.00|0.00|-1,855,538.00|0.00|0.00|0.00|68,185,826.00|||
|overseas||Securities||method||||||||instruments|funds|
|stock||||||||||||investment||

BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Domestic||||||||||||Other||
|||New||||||||||||
|and||||Fair value||||||||equity|Self-owned|
||HK01518|Century|140,848,850.00||125,909,255.00|0.00|-36,922,892.00|0.00|0.00|0.00|103,925,958.00|||
|overseas||||method||||||||instruments|funds|
|||Healthcare||||||||||||
|stock||||||||||||investment||
|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|0.00|3,405,682.00|0.00|0.00|0.00|409,099,202.00|--|--|
|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)||||||||||||||

VI Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. First Quarter Report 2019 (Summary) VII Communications with the Investment Community such as Researches, Inquiries and Interviews during the Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date|Way of communication|Type of communication party|Index to main information communicated|
|17 January 2019|One-on-one meeting|Institution||
||||Main contents:|
|21 January 2019|One-on-one meeting|Institution||
||||1. the main situations of the industry|
|22 January 2019|One-on-one meeting|Institution||
||||2. main operating information of the Company|
|15 February 2019|One-on-one meeting|Institution|3. innovations of technology and products|
|25 February 2019|One-on-one meeting|Institution|4. future strategy layout|
||||For details, see www.cninfo.com.cn|
|26 March 2019|One-on-one meeting|Institution||

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)：Wang Dongsheng Date of theBoard’s approval of this Report: 29 April 2019