ANNUAL REPORT 2016
April 2017
BOE Technology Group Co., Ltd. Annual Report 2016 Section I Important Statements, Contents and Definitions The board of directors (the “Board”), the supervisory board (the “Supervisory Board”), as well as the directors, supervisors and executive officers 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 false representation, misleading statements or material omissions in this Report.
Mr. Wang Dongsheng, head of the Company, Mr. Chen Yanshun, president of the Execution Committee (chief executive officer) of the Company, Ms. Sun Yun, accounting head for this Report, and Ms. Yang Xiaoping, head of the accounting department (head of accounting), hereby guarantee that the Financial Report carried in this Report is factual, accurate and complete.
All directors 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 virtual promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks.
The Board has considered and approved the following proposal for profit distribution: a cash dividend of RMB 0.30 Yuan (tax inclusive) per 10 shares will be distributed to all shareholders of the Company. No bonus shares will be granted, nor will any capital reserve be converted into share capital.
This Report has been prepared in compliance with the Chinese “Accounting Standards for Business Enterprises” and other relevant regulations. KPMG Huazhen LLP has issued a standardauditor’s report with unqualified opinion for the Company.
This Annual Report and its abstract have 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 2016 Table of Contents
Section I Important Statements, Contents and Definitions ............................................................ 2 Section II Corporate Profile and Key Financial Results ................................................................ 5 Section III Business Profile ............................................................................................................. 10 Section IV Performance Discussion and Analysis ......................................................................... 13 Section V Significant Events ........................................................................................................... 37 Section VI Share Changes and Information about Shareholders ............................................... 67 Section VII Preference Shares ........................................................................................................ 78 Section VIII Directors, Supervisors, Senior Executive Officers and Staff .................................. 79 Section IX Corporate Governance ................................................................................................. 96 Section X Corporate Bonds ........................................................................................................... 106 Section XI Financial Report ....................................................................................................... 111 Section XII Documents Available for Reference ......................................................................... 114
BOE Technology Group Co., Ltd. Annual Report 2016 Definitions
|||
|-|-|
|Term|Definition|
|BOE, the Company, Company, the Group, Group|BOE Technology Group Co., Ltd.|
|The Stock Listing Rules|The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2014)|
|SZSE, the Stock Exchange|The Shenzhen Stock Exchange|
|CSRC|China Securities Regulation Commission|
|CSRC Beijing|China Securities Regulation Commission Beijing Bureau|
|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|
|The cninfo website|http://www.cninfo.com.cn/|
|OASIS Hospital|OASIS International Hospital|
|SID|The Society for Information Display|
|DBG|The display business group of the Company|
|SBG|The smart business group of the Company|
|HBG|The health business group of the Company|
|United Ratings|United Credit Ratings Co., Ltd.|
|TFT|Thin Film Transistor|
|LCD|Liquid Crystal Display|
|LTPS|Low Temperature Poly-silicon|
|AMOLED|Active-matrix organic light emitting diode|
|OLED|Organic Light-Emitting Diode|
|VR/AR|Virtual reality/ Augmented Reality|
|KPMG|KPMG Huazhen LLP|

BOE Technology Group Co., Ltd. Annual Report 2016 Section II Corporate Profile and Key Financial Results
I Corporate information
|||||
|-|-|-|-|
|Stock name|BOE A, BOE B|Stock code|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 any)|BOE TECHNOLOGY GROUP CO., LTD.|||
|Abbr. (if any)|BOE|||
|Legal representative|Wang Dongsheng|||
|Registered address|10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China|||
|Zip code|100015|||
|Office address|12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China|||
|Zip code|100176|||
|Company website|http://www.boe.com|||
|Email|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|
|E-mail|liuhongfeng@boe.com.cn|cuizhiyong@boe.com.cn|

III 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 the China Securities||
||http://www.cninfo.com.cn/|
|Regulatory Commission (CSRC) for the publication||

BOE Technology Group Co., Ltd. Annual Report 2016
|||
|-|-|
|of this Report||
|Place where this Report is kept|Board Secretary’s Office|

IV Company registration and alteration
|||
|-|-|
|Credibility code|No changes|
|Changes in main business activities of the Company||
||No changes|
|after going public (if any)||
|Changes of controlling shareholder (if any)|No changes|

V Other information
The CPAs firm hired by the Company
|||
|-|-|
|Name|KPMG Huazhen LLP|
|Office address|8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Beijing, P.R.China|
|Accountants writing signatures|Su Xing, Wang Ting|

Sponsor engaged by the Company to continuously perform its supervisory function during this Reporting Period
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Sponsorrepresentative|||
||Name||Office address|||Supervisory period|
|China SecuritiesCo., Ltd.||Room 2203, North Tower,Shanghai Stock ExchangeBuilding, 528 Pudong SouthRoad, Shanghai, P.R.China||Zhu Mingqiang,Zhao Jun|04/05/2014~12/31/2015 (Up to December 31,2015, the funds raised by the Company througha private A-share offering had not yet beenused up. Therefore, China Securities Co., Ltd.would continue to perform its supervisoryfunction on the Company. As of December 31,2016, the said funds had been used up and thesponsor thus ceased its supervision.)||

Financial advisor engaged by the Company to continuously perform its supervisory function during this Reporting Period
□ Applicable√ Not applicable
VI Key financial results
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors.
□ Yes√ No
||||||
|-|-|-|-|-|
|Item|2016|2015|+/-%|2014|
|Operating revenues (RMB Yuan)|68,895,658,963|48,623,732,312.00|41.69%|36,816,316,676.00|
|Net profit attributable to|1,882,571,674|1,636,270,488.00|15.05%|2,562,128,829.00|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|shareholders of the Company|||||
|(RMB Yuan)|||||
|Net profit attributable to|||||
|shareholders of the Company|12,534,878.00|613,814,833.00|-97.96%|1,827,866,642.00|
|before exceptional profit and loss|||||
|(RMB Yuan)|||||
|Net cash flows from operating|10,073,287,120.00|10,493,385,445.00|||
||||-4.00%|8,095,825,923.00|
|activities (RMB Yuan)|||||
|Basic earnings per share (RMB|0.054|0.046|||
||||17.39%|0.087|
|Yuan /share)|||||
|Diluted earnings per share (RMB|0.054|0.046|||
||||17.39%|0.087|
|Yuan /share)|||||
|Weighted average return on equity|||||
||2.40%|2.13%|0.27%|4.29%|
|(%)|||||
|Item|December 31, 2016|December 31, 2015|+/-%|December 31, 2014|
|Total assets (RMB Yuan)|205,135,011,042|152,592,894,442.00|34.43%|136,240,283,477.00|
|Net assets attributable to|78,699,988,493|77,485,275,564.00|||
|shareholders of the Company|||1.57%|76,155,071,579.00|
|(RMB Yuan)|||||

VII Differences in accounting data under domestic and foreign accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese and international accounting standards
□ Applicable√ Not applicable
No such differences for this Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese and foreign accounting standards
□ Applicable√ Not applicable
No such differences for this Reporting Period.
VIII Key financial results by quarter
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|1Q|2Q|3Q|4Q|
|Operating revenues|12,297,738,830.00|14,150,571,887.00|19,393,595,018.00|23,053,753,228.00|
|Net profit attributable to|||||
||108,325,454.00|-624,797,872.00|657,140,380.00|1,741,903,712.00|
|shareholders of the Company|||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|Net profit attributable to|||||
||-1,356,749,356.00|-952,948,032.00|509,396,071.00|1,812,836,195.00|
|shareholders of the Company|||||
|before exceptional profit and loss|||||
|Net cash flows from operating|||||
||2,767,654,463.00|-33,567,508.00|3,814,061,583.00|3,525,138,582.00|
|activities|||||

Indicate by tick mark whether there are any material differences between the financial indicators above or their summations and those which have been disclosed in quarterly or semi-annual reports
□ Yes√ No
IX Exceptional profit/loss
√ Applicable□ Not applicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|2016|2015|2014|Note|
|Profit/loss on disposal of non-current assets|-46,754,352.00|||N/A|
|||-8,350,324.00|-15,575,867.00||
|(including offset asset impairment provisions)|||||
|Tax rebates, reductions and exemptions due to|0.00|||N/A|
|approval beyond authority or the lack of official||0.00|0.00||
|approval documents|||||
|Government subsidies charged to the profit/loss|1,914,531,603.00|||N/A|
|for this Reporting Period (except for the|||||
|government grants closely related to the business|||||
|||1,045,101,727.00|830,471,170.00||
|of the Company and given at a fixed quota or|||||
|amount in accordance with the State’s uniform|||||
|standards)|||||
|Capital occupation charges on non-financial|0.00|||N/A|
|enterprises that are charged to the profit/loss for||0.00|0.00||
|this Reporting Period|||||
|Profit due to the situation where investment costs|105,228,293.00|||N/A|
|for the Company to obtain subsidiaries, associates|||||
|and joint ventures are lower than the enjoyable||163,082.00|10,168,409.00||
|fair value of identifiable net assets of investees|||||
|when making investments|||||
|Profit/loss on non-monetary asset swap|0.00|0.00|0.00|N/A|
|Profit/loss on entrusting others with investments|0.00|||N/A|
|||0.00|0.00||
|or asset management|||||
|Asset impairment provisions due to acts of God|0.00|||N/A|
|||0.00|0.00||
|such as natural disasters|||||
|Profit/loss on debt restructuring|0.00|0.00|0.00|N/A|
|Restructuring costs in staff arrangement,|0.00|||N/A|
|||0.00|0.00||
|integration, etc.|||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|Profit/loss on the part over the fair value due to|0.00|||N/A|
|||0.00|0.00||
|transactions with distinctly unfair prices|||||
|Net Reporting Period profit/loss on subsidiaries|0.00|||N/A|
|acquired through business mergers under the|||||
|||0.00|0.00||
|same control from the period-beginning to merger|||||
|dates|||||
|Profit/loss on contingencies irrelevant to the|0.00|||N/A|
|||0.00|0.00||
|Company’s routine business activities|||||
|Profit/loss on fair value changes of transactional|149,197,609.00|||N/A|
|financial assets and liabilities & investment|||||
|income from disposal of transactional financial|||||
|||173,197,708.00|6,113,418.00||
|assets and liabilities as well as financial assets|||||
|available for sale, except for effective hedges|||||
|related to routine operations of the Company|||||
|Impairment provision reversal for accounts|24,547,083.00|||N/A|
|receivable on which the impairment test is carried||4,535,849.00|5,583,021.00||
|out separately|||||
|Profit/loss on entrusted loans|0.00|0.00|0.00|N/A|
|Profit/loss on fair value changes in investing|0.00|||N/A|
|properties of which the subsequent measurement||0.00|0.00||
|is carried out adopting the fair value method|||||
|Effect on Reporting Period profit/loss when a|0.00|||N/A|
|one-off adjustment is made to Reporting Period|||||
|profit/loss according to requirements of taxation,||0.00|0.00||
|accounting and other relevant laws and|||||
|regulations|||||
|Custody fee income when entrusted with|0.00|||N/A|
|||0.00|0.00||
|operations|||||
|Non-operating income and expense other than the|40,206,943.00|||N/A|
|||22,787,015.00|43,217,737.00||
|above|||||
|Other profit/loss that meet the definition of|0.00|||N/A|
|||0.00|-4,190,740.00||
|exceptional profit/loss|||||
|Less: Corporate income tax|305,399,453.00|185,320,551.00|119,985,837.00|N/A|
|Minority interests (after tax)|11,520,930.00|29,658,851.00|21,539,124.00|N/A|
|Total|1,870,036,796.00|1,022,455,655.00|734,262,187.00|--|

 Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable√ Not applicable
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2016 Section III Business Profile
I Main business scope for this Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
BOE Technology Group Co., Ltd. (BOE) was established in April 1993. Its core business includes display devices, intelligent systems and health services.
1. Display business group
As a leader in semi-conductor display innovation and development, the Company is trying to strengthen the core technology through transformation in technology, product design and application so as to create more value. It is committed to the development, production and marketing of TFT-LCD, AMOLED, virtual display, etc. Currently, it mainly provides display screens and thin film transistors for mobile phones, tablet PCs, laptops, displayers, TVs, vehicles, wearable devices, industrial control, medical care, as well as tiled and transparent display screens.
2. Smart business group
Following the main line of “the Internet of Things and artificial intelligence”, the Company is building four business sub-divisions, namely intelligent manufacturing, intelligent display systems, intelligent vehicle display systems, and intelligent energy systems. At present, it mainly provides, for its global partners, the most competitive ODM, OEM and customized intelligent manufacturing services of complete machines, backlight units, etc., as well as specialized Internet of Things solutions for intelligent display and banking, vehicle-mounted units, intelligent energy systems, etc.
3. Health business group
With “information medicine and big data” as the basic features, the Company is building a health service system covering mobile health services, O2O medical services, regenerative medicine, medicine integration, health service centers and health insurance. II Significant changes in main assets
1. Significant changes in main assets
|||
|-|-|
|Main assets|Reason for any significant change|
|Equity assets|No changes|
|Fixed assets|No changes|
|Intangible assets|No changes|
|Construction in progress|New construction and equipment procurement increased in this Reporting Period|

 2. Main assets overseas
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 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, rapidly formed the layout of new business area, consolidated businesses and improved global competitiveness
In 2016, the BOE firmly promoted and implemented DSH business strategy, made efforts to strengthen and expand display device business, rapidly formed layout of smart system business and health service business, consolidated its businesses and improved global competitiveness. As for display device business: The Company rapidly formed layout of AMOLED. The construction of the large-size TFT-LCD Production Line, the Chengdu 6th Generation Flexible AMOLED Production Line, as well as the Fuzhou 8.5th Generation TFT-LCD Production Line were stably promoted, and capped in advance. The Hefei 10.5th TFT-LCD Product Line project construction was rapidly promoted. The aforesaid projects offered the security both in capacity and technology for strengthening and expanding display device business, as well as for making transformation and upgrade of the Company. As for smart system business: the Company founded four business systems separately in smart manufacturing, smart panel connection, smart vehicle connection, and smart energy. In 2016, the acquirement of VARITRONIX made the foundation for developing smart vehicle connection business for smart system business. And the launch of iGallery (a digital art gallery) expanded the market for smart panel connection business. As for health service business, the Company founded six business systems separately in mobile health, O2O health service, regenerative medical science, integrated medicine, health park, and health insurance. The Oasis International Hospital won the JCI (Joint Commission on Accreditation of Healthcare Organizations) authentication. The architecture design and medical planning of Hefei BOE Hospital project were finished, and the system establishment and talents introduction were being promoted as scheduled.
2. The Company stuck to client orientation, and deeply ploughed and subdivided the market
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, including Samsung, LG, Hisense, Konka, Lenovo, Dell, and HP, 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. As for display service: according toIHS Markit (Information Handling Services, Inc.& Markit Ltd.) data, the market share of LCD display screen of smart phones and tablets kept ranking as the world number 1, the market share of display screen of laptops leaped to the 4th place in the world in the fourth quarter, the market share of display screen of displayers ranked in the 2nd place in the world, and the market share of TV display ranked in the 3rd place in the world. As for smart system business: The shipment of complete machines was nearly 13 million units. The market share of TV and MNT was remarkably improved. Clients were introduced to the shipment of vehicle-mounted display system. Product projects including VR/AR have been positively pushing forward.
3. The Company reinforced independent innovation, and further promoted its ability to innovate
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, positively took part in domestic and international industrial standard formation, constantly intensified self-innovation capability, kept foresight and primacy of technologies and products, and thoroughly improved global competitiveness. In 2016, the Company applied 7570 patents, of which the authorized patents amounted to over 3000. As at 31 Dec. 2016,BOE’s patents in commission accumulated to an amount of over 50,000. The IFI (a USA service institution for commercial patents data) announced the top 50 companies list in the field of authorized patens in the USA, where only 2 companies in mainland China ranked in. The BOE ranked as the 40th one as the only one with over200% increase in authorized patents. At the same time, breakthroughs in productization and mass production were made in new technologies such as TDDI (integrated technology in touch control and display driver), SLOC (single-layer multipoint
BOE Technology Group Co., Ltd. Annual Report 2016 outer-embedded technology), and LTPS AMOLED. The Company launched a series of globally leading innovated products, of which the 2.8-inch LTPS display screen with pixel density reaching up to 1600 PPI, the7–inch FHD LTPS heteromorphism display, the 82-inch 10K hook face product with the highest hook face resolution rate in the world, and Alta Max, won high praises in global industry in SID, and innovated product including iGallery won the attention and recognition by the industry and from consumers. In the Global Innovation Report issued by Thomson Reuters, the BOE ranked in the 2nd place in the world in respect of Innovation Power of Semiconductor Companies.
4. The Company pushed forward transformation and upgrade, and further promoted its brand image
With the promotion of transformation and upgrade, theCompany’s products and service quality was further improved, the innovation vigor of the organization was further motivated, the publicity and marketing promotion was further enhanced, and theCompany’s brand image was further improved. In 2016, the CCTV news broadcasting of the innovative brand image of the Company for many times, together with the organization and implementation of significant brand activities in China and overseas, for example, the participation in SID in the USA, the holding of globalsuppliers’ meeting and global innovationpartners’ meeting, sharply improved the brand recognition and reputation of the Company. Based on the evaluation of market institutions, the BOE brand value was improved in a multiplied way, customer satisfaction and brand reputation were continuously improved, as well as the selection into the Top 10 Leading Brands in Consumer Electronics in China in ten consecutive years, showed the high recognition and broad attention for the BOE brand image in global market.
BOE Technology Group Co., Ltd. Annual Report 2016 Section IV Performance Discussion and Analysis
I Overview
2016 marked the first year forChina’s 13th Five-Year Plan for Economic and Social Development. In the year, in light of the faster integration among industries under the“+ Internet” policy, the Company tried to build an “Open and Connected Ecoresystem” and positioned itself as a “supplier of Internet of Things technology, products and services” centering on four core technologies, namely “display, sensor technology, artificial intelligence and big data”.
2015 and the first half of 2016 witnessed a considerable decline in market demand, fierce competition, as well as the reform towards large-sized, HD display products and those carrying new technology, new techniques and new materials. In face of a complex and changeable market, all employees of the Company united as one man and worked hard to try to seize opportunites. As a result, its operating revenues reaches RMB 68.89 billion Yuan, with year-on-year growth of41.69%,with a steady growth in its profit. While strengthening new display and sensor technology such as TFT-LCD and AMOLED, the Company also improved its capability regarding intelligent manufacturing, intelligent energy systems, intelligent vehicle display systems and intelligent display systems. Meanwhile, it made cross-field innovations by combining semi-conductor display, artifitial intellience and sensor technology with medical and life technology. Details about the situations of theCompany’s business divisions are given as follows:
(I) Display business group (DBG)
The ratio of touch-control modules for semiconductor display products, as well as products with high resolution and new applications was improved, which effectively hedged the impact from price drop to revenue. The Company seized market opportunities, swept marketing and sales, raised market share, and kept the market share of main products in subdivided markets in the leading position in the industry. The market share of LCD display screen of smart phones and tablets kept ranking as the world number 1, the market share of display screen of laptops leaped to the 4th place in the world in the fourth quarter, the market share of display screen of displayers ranked in the 2nd place in the world, and the market share of TV display ranked in the 3rd place in the world. The VR/AR (visual reality/augmented reality) products realized mass production, and clients were introduced. Projects of X-ray, gene sequencing, and smart antenna forged ahead steadily. The Company continued to deeply dig technique capability, optimize bottleneck crafts, and arrange lean production scheduling, so as to set a new record for yield rate and capacity. Projects of smart manufacturing and manufacturing engineers were executed as planned, and the personal structure was further optimized. The domestication ratio in materials, equipment, as well as reserve products and parts was continuously improved. The localization supporting plan for suppliers of new production lines was carried forward as scheduled. The Company further perfected quality management and control mechanism, reached the cost control target for poor quality, and won A-class appraisal from clients. The Company established green product analysis center, and became the first semiconductor manufacturer in China to build the GP lab.
(II) Smart business group (SBG)
As for smart manufacturing: The shipment of TV/MNT complete machines marked record high. The shipment of mobile backlight modules made breakthrough. Cooperation with strategic clients was further firmed. The Hefei smart manufacturing factory was established and put into use. The construction of Chongqing smart manufacturing factory was started. As for smart energy: The photovoltaic project made new progress, the semiconductor lighting business kept being improved, and the plant factory explored new business patterns. As for smart vehicle connection: the Company purchased HK VARITRONIX, a vehicle connection business platform, and positively promoted the business integration with VARITRONIX. As for smart panel connection: The Company launched iGallery (a digital art gallery) products and pleased the market. The Company conducted cooperation project of smart banks and wonclients’ recognition. The Company established the platform and center for artificial intelligence and big data, promoted the transformation of innovation technology, and supported the development of four major divisions.
BOE Technology Group Co., Ltd. Annual Report 2016 (III) Health business group (HBG)
In 2016, supported by the platform of service from robot doctors, the Company founded six business systems in mobile health, regenerative medical science, integrated medicine, O2O healthy service, health park, and health insurance. The Oasis International Hospital won the JCI authentication and achieved over40% year-on-year increase in revenue and the quantity of new clients. The construction of Hefei BOE hospital was started. The resource expansion in Beijing-Tianjin-Hebei and southwest region was propelled step by step. The pattern design and planning for online health service platform were finished, and the preliminary operation was started. As for mobile health business, the Company integrated mobile health with robot doctors, and promoted new product development. As for the business of regenerative medical science, the Company accomplished the planning of development path and platform, and started the establishment of research center of regenerative medical science. The transformation of health park made breakthrough, and new profit growth factor for business revenue was dug out. As for health insurance business, the Company perfected operation mechanism and business development planning, and accelerated the reviewing process of operation qualification. II Analysis of main business
1. Overview
See “I Overview” in “Performance Discussion and Analysis”.
2. Revenues and costs
(1) Breakdown of operating revenues
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||2016||2015|||
|||As a percentage of||As a percentage of||
|Item|||||+/-%|
||Revenue|total operating|Revenue|total operating||
|||revenues (%)||revenues (%)||
|Total operating|68,895,658,963.00||48,623,732,312.00|||
|||100%||100%|41.69%|
|revenues||||||
|By business segment||||||
|Display device|61,207,032,381.00|88.84%|43,501,436,202.00|89.47%|40.70%|
|Intelligent system|12,503,057,007.00|18.15%|8,781,046,730.00|18.06%|42.39%|
|Health service|907,225,055.00|1.32%|826,323,560.00|1.70%|9.79%|
|Other|1,835,270,634.00|2.66%|1,196,198,355.00|2.46%|53.43%|
|Offset|-7,556,926,114.00|-10.97%|-5,681,272,535.00|-11.69%|33.01%|
|By product||||||
|Display devices|61,207,032,381.00|88.84%|43,501,436,202.00|89.47%|40.70%|
|Intelligent systems|12,503,057,007.00|18.15%|8,781,046,730.00|18.06%|42.39%|
|Health services|907,225,055.00|1.32%|826,323,560.00|1.70%|9.79%|
|Others|1,835,270,634.00|2.66%|1,196,198,355.00|2.46%|53.43%|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||
|-|-|-|-|-|-|
|Offset|-7,556,926,114.00|-10.97%|-5,681,272,535.00|-11.69%|33.01%|
|By geographical segment||||||
|China|36,758,279,462.00|53.35%|21,057,873,677.00|43.31%|74.56%|
|Other regions in Asia|28,659,907,880.00|41.60%|21,339,034,068.00|43.89%|34.31%|
|Europe|1,576,844,846.00|2.29%|2,677,131,554.00|5.51%|-41.10%|
|America|1,783,928,923.00|2.59%|3,430,415,741.00|7.06%|-48.00%|
|Other regions|116,697,852.00|0.17%|119,277,272.00|0.23%|-2.16%|

 (2) Business segments, products or geographical segments contributing over10% of the operating revenues or profit
√ Applicable□ Not applicable
Is the Company subject to any disclosure requirements for special industries?
No.
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Operating|Operating|Gross profit|
||||Gross profit||||
|Item|Operating revenue|Operating cost||revenue: YoY|cost: YoY|margin: YoY|
||||margin||||
|||||+/-%|+/-%|+/-%|
|By business segment|||||||
|Display device|61,207,032,381.00|50,827,910,258.000|16.96%|40.70%|46.16%|-3.10%|
|Intelligent system|12,503,057,007.00|11,436,764,569.00|8.53%|42.39%|42.60%|-0.14%|
|By product|||||||
|Display devices|61,207,032,381.00|50,827,910,258.00|16.96%|40.70%|46.16%|-3.10%|
|Intelligent systems|12,503,057,007.00|11,436,764,569.00|8.53%|42.39%|42.60%|-0.14%|
|By geographical segment|||||||
|China|36,758,279,462.00|32,674,830,264.00|11.11%|74.56%|120.12%|-18.40%|
|Other regions in|||||||
||28,659,907,880.00|21,072,655,784.00|26.47%|34.31%|18.00%|10.16%|
|Asia|||||||

Main business data of the prior year restated according to the changed statistical caliber for this Reporting Period
□ Applicable√ Not applicable
(3) Whether revenue from physical sales is higher than service revenue
√ Yes□ No
|||||||
|-|-|-|-|-|-|
|Business segment|Item|Unit|2016|2015|+/-%|
||Sales volume|0,000 units|59,001|52,573|12.23%|
|TFT-LCD||||||
||Output volume|0,000 units|60,127|53,810|11.74%|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|Inventory|0,000 units|2,530|3,960|-36.11%|

 Reason for any over30% YoY movements in the data above
√ Applicable□ Not applicable
In 2016, the sales volume of small-sized products increased, bringing down the number of the stock.
(4) Execution progress of major signed sales contracts in this Reporting Period
□ Applicable√ Not applicable
(5) Breakdown of operating costs
By business segment
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2016||2015|||
||||As a percentage of||As a percentage of||
|Business segment|Costs|||||+/-%|
|||Cost amount|total operating|Cost amount|total operating costs||
||||costs (%)||(%)||
||Materials, labor||||||
|Display device|costs,|50,827,910,258.00|89.82%|34,776,700,215.00|89.73%|46.16%|
||depreciation, etc.||||||
||Materials, labor||||||
|Intelligent system|costs,|11,436,764,569.00|20.21%|8,020,038,488.00|20.69%|42.60%|
||depreciation, etc.||||||
||Materials, labor||||||
|Health service|costs,|404,222,596.00|0.71%|411,163,905.00|1.06%|-1.69%|
||depreciation, etc.||||||
||Materials, labor||||||
|Other|costs,|19,378,863.00|0.03%|6,372,839.00|0.02%|204.09%|
||depreciation, etc.||||||
||Materials, labor||||||
|Offset|costs,|-6,102,580,195.00|-10.77%|-4,459,184,781.00|-11.50%|36.85%|
||depreciation, etc.||||||

Notes:
N/A
(6) Changes in the scope of the consolidated financial statements for this Reporting Period
√ Yes□ No
Five new subsidiaries were included in the consolidation scope of this Reporting Period due to ownership changes. And the relevant
data exclusive of the five new subsidiaries are as follows:
||||||||
|-|-|-|-|-|-|-|
|Item|Operating revenue|Operating cost|Gross profit|Operating revenue:|Operating cost:|Gross profit|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
||||margin|YoY +/-%|YoY +/-%|margin: YoY|
|||||||+/-%|
|By business segment|||||||
|Display device|61,207,024,362.00|50,827,910,258.00|16.96%|40.72%|46.16%|-3.09%|
|Intelligent system|11,201,629,071.00|10,403,551,258.00|7.12%|27.57%|29.72%|-1.55%|
|Health service|904,534,276.00|402,140,219.00|55.54%|9.46%|-2.19%|5.30%|
|Other|1,672,096,930.00|19,378,863.00|98.84%|39.78%|162.65%|-0.54%|
|Offset|-7,395,196,484.00|-6,583,178,143.00|10.98%|30.17%|47.44%|-10.43%|
|By product|||||||
|Display devices|61,207,024,362.00|50,827,910,258.00|16.96%|40.72%|46.16%|-3.09%|
|Intelligent|||||||
||11,201,629,071.00|10,403,551,258.00|7.12%|27.57%|29.72%|-1.55%|
|systems|||||||
|Health services|904,534,276.00|402,140,219.00|55.54%|9.46%|-2.19%|5.30%|
|Others|1,672,096,930.00|19,378,863.00|98.84%|39.78%|162.65%|-0.54%|
|Offset|-7,395,196,484.00|-6,583,178,143.00|10.98%|30.17%|47.44%|-10.43%|
|By geographical segment|||||||
|China|36,480,855,574.00|31,975,617,652.00|12.35%|73.24%|115.48%|-17.18%|
|Other regions in|||||||
||28,328,807,163.00|20,828,026,521.00|26.48%|32.76%|16.63%|10.17%|
|Asia|||||||
|Europe|1,066,272,192.00|991,357,734.00|7.03%|-60.09%|-61.97%|4.39%|
|America|1,650,781,793.00|1,226,386,241.00|25.71%|-51.88%|-63.18%|22.80%|
|Other regions|63,371,433.00|48,414,307.00|23.60%|-46.87%|-58.40%|21.16%|

 (7) Major changes in the business, products or services in this Reporting Period
□ Applicable√ Not applicable
(8) Main customers and suppliers
Main customers
|||
|-|-|
|Total sales to top five customers (RMB Yuan)|26,037,132,038.00|
|Total sales to top five customers as a percentage of the||
||37.79%|
|total sales for this Reporting Period (%)||
|Total sales to related parties among top five customers as||
||0.00%|
|a percentage of the total sales for this Reporting Period||

BOE Technology Group Co., Ltd. Annual Report 2016
||
|-|
|(%)|

Information about top five customers
|||||
|-|-|-|-|
||||As a percentage of the total sales for this|
|No.|Customer|Sales amount (RMB)||
||||Reporting Period (%)|
|1|Customer A|12,128,602,338.00|17.60%|
|2|Customer B|4,330,041,610.00|6.28%|
|3|Customer C|3,818,324,990.00|5.54%|
|4|Customer D|2,921,763,901.00|4.24%|
|5|Customer E|2,838,399,199.00|4.12%|
|Total|--|26,037,132,038.00|37.79%|

 Other information about the main customers
□ Applicable√ Not applicable
Main suppliers
|||
|-|-|
|Total purchases from top five suppliers (RMB Yuan)|9,869,787,655.00|
|Total purchases from top five suppliers as a percentage of the total||
||17.44%|
|purchases for this Reporting Period (%)||
|Total purchases from related parties among top five suppliers as a||
||0.00%|
|percentage of the 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|5,183,295,066.00|9.16%|
|2|Supplier B|1,886,899,606.00|3.33%|
|3|Supplier C|1,082,069,720.00|1.91%|
|4|Supplier D|866,010,035.00|1.53%|
|5|Supplier E|851,513,228.00|1.50%|
|Total|--|9,869,787,655.00|17.44%|

 Other information about the main suppliers
□ Applicable√ Not applicable
3. Expense
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|2016|2015|+/-%|Reason for any significant change|
||1,984,361,921.00|1,290,038,686.00|53.82%|Increased accordingly as the operating|
|Selling expenses|||||
|||||revenues increased|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|Administrative expenses|5,618,443,652.00|4,675,778,199.00|20.16%|N/A|
||2,299,116,897.00|1,496,013,180.00||Increase in borrowings, corporate bonds and|
|Finance costs|||53.68%|expensed interest cost due to the fact that some|
|||||new construction became fixed assets|

4.R&D input
√ Applicable□ Not applicable
N/A
Details aboutR&D input:
|||||
|-|-|-|-|
|Item|2016|2015|+/-%|
|Number of R&D personnel|3,248|2,603|24.78%|
|R&D personnel as a percentage in the total||||
||6.61%|6.08%|0.53%|
|employees||||
|R&D input (RMB Yuan)|4,139,435,892.00|3,318,561,843.00|24.74%|
|R&D input as a percentage in operating revenues|6.01%|6.82%|-0.81%|
|Capitalized R&D input (RMB Yuan)|919,711,205.00|786,493,174.00|16.94%|
|Capitalized R&D input as a percentage in the total||||
||22.22%|23.70%|-1.48%|
|R&D input||||

Reasons for any significant YoY change in the percentage of theR&D input in the operating revenues
□ Applicable√ Not applicable
Reason for any sharp variation in the percentage of the capitalizedR&D input and rationale
□ Applicable√ Not applicable
5. Cash flows
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|2016|2015|+/-%|
|Subtotal of cash inflows from|73,610,884,095.00|54,646,309,541.00||
||||34.70%|
|operating activities||||
|Subtotal of cash outflows due to|63,537,596,975.00|44,152,924,096.00||
||||43.90%|
|operating activities||||
|Net cash flows from operating|10,073,287,120.00|10,493,385,445.00||
||||-4.00%|
|activities||||
|Subtotal of cash inflows from|34,686,752,663.00|13,757,314,612.00||
||||152.13%|
|investing activities||||
|Subtotal of cash outflows due to|59,181,683,823.00|33,351,718,502.00|77.45%|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||
|-|-|-|-|
|investing activities||||
|Net cash flows from investing|-24,494,931,160.00|-19,594,403,890.00||
||||-25.01%|
|activities||||
|Subtotal of cash inflows from|44,117,048,127.00|21,241,472,453.00||
||||107.69%|
|financing activities||||
|Subtotal of cash outflows due to|17,975,955,326.00|13,112,545,053.00||
||||37.09%|
|financing activities||||
|Net cash flows from financing|26,141,092,801.00|8,128,927,400.00||
||||221.58%|
|activities||||
|Net increase in cash and cash|13,172,072,171.00|-321,968,943.00||
||||4191.10%|
|equivalents||||

Explanation of why the data above varied significantly
√ Applicable□ Not applicable
Mainly due to the issue of RMB10 billion bonds and the increased borrowings, the net cash flows from financing activities increased221% from last year.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable□ Not applicable
The Company was engaged in manufacture and the relevant depreciation& amortization was great, resulting in a big difference between the operating cash flows and the net profits in the year.
III Analysis of non-core business
√ Applicable□ Not applicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||As a percentage of|||
|Item|Amount||Source/reason|Recurring or not|
|||total profit (%)|||
|Investment income|151,006,609.00|6.01%|Gains on financial products|No|
|Profit/Loss on fair|||||
||0.00|0.00%|N/A|No|
|value changes|||||
||||Amount provided for inventory falling price||
|Asset impairment|1,594,488,553.00|63.46%||No|
||||impairment according to market conditions||
|Non-operating|||Governmental subsidies received in the||
||2,085,966,318.00|83.03%||No|
|revenue|||Reporting Period||
|Non-operating|||||
||78,861,768.00|3.14%|Loss on disposal of fixed assets|No|
|expense|||||

BOE Technology Group Co., Ltd. Annual Report 2016 IV Analysis of assets and liabilities
1. Significant changes in the asset composition
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||December 31, 2016||December 31, 2015||||
||||||Change in percentage||
|Item||As a percentage of||As a percentage||Reason for any significant change|
||Amount||Amount||(%)||
|||total assets (%)||of total assets (%)|||
||58,152,817,223.00||38,866,861,836.00|||Arrival of specialized funds and cash|
|Monetary funds||28.35%||25.47%|2.88%||
|||||||inflows from operating activities|
||16,191,791,617.00||8,192,514,361.00|||Increased accordingly as the operating|
|Accounts receivable||7.89%||5.37%|2.52%||
|||||||revenues increased|
|Inventories|7,833,138,532.00|3.82%|6,609,406,228.00|4.33%|-0.51%|No significant changes|
|Investment property|1,192,932,896.00|0.58%|1,227,099,427.00|0.80%|-0.22%|No significant changes|
|Long-term equity|1,356,111,395.00||1,260,302,959.00||||
|||0.66%||0.83%|-0.17%|No significant changes|
|investments|||||||
|Fixed assets|69,947,586,967.00|34.10%|63,565,099,405.00|41.66%|-7.56%|No significant changes|
||33,008,248,720.00||18,645,461,692.00|||New construction and equipment|
|Construction in progress||16.09%||12.22%|3.87%||
|||||||procurement increased|
|Short-term borrowings|4,916,965,507.00|2.40%|5,091,974,830.00|3.34%|-0.94%|No significant changes|
|Long-term borrowings|49,885,166,211.00|24.32%|36,341,198,145.00|23.82%|0.50%|New borrowings for new construction|
|||||||Decrease in wealth management products|
|Other current assets|5,691,200,226.00|2.77%|8,712,017,517.00|5.71%|-2.94%||
|||||||upon maturity|
|||||||Increase in prepayments for engineering|
|Other non-current assets|4,139,533,216.00|2.02%|347,851,674.00|0.23%|1.79%||
|||||||equipment|
|Accounts payable|13,835,615,665.00|6.74%|9,849,935,031.00|6.46%|0.28%|Material procurement increased|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|||||||accordingly as the production and sales|
|||||||volumes increased|
|||||||The payables for engineering equipment|
|Other accounts payable|14,395,525,248.00|7.02%|8,864,929,878.00|5.81%|1.21%||
|||||||increased as construction proceeded|
|Non-current liabilities||||||Long-term borrowings became due within|
||3,684,236,935.00|1.80%|2,283,535,113.00|1.50%|0.30%||
|due within one year||||||one year|

2. Assets and liabilities measured at fair value
√ Applicable□ Not applicable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Profit/loss on fair value|Cumulative fair value|||||
|||||Impairment provided in|Purchased in this|Sold in this Reporting||
|Item|Opening balance|changes in this|changes charged to||||Closing balance|
|||||this Reporting Period|Reporting Period|Period||
|||Reporting Period|equity|||||
|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||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|assets||||||||
|3. Available-for-sale||||||||
||305,520,857.00|0.00|112,739,631.00|0.00|86,693,214.00|0.00|394,236,151.00|
|financial assets||||||||
|Subtotal of financial||||||||
||305,520,857.00|0.00|112,739,631.00|0.00|86,693,214.00|0.00|394,236,151.00|
|assets||||||||
|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|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|Others|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Total of the above|305,520,857.00|0.00|112,739,631.00|0.00|86,693,214.00|0.00|394,236,151.00|
|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
3. Restricted asset rights as of the end of this Reporting Period
||||
|-|-|-|
|Item|Closing book value|Reason for restriction|
|Monetary funds|8,798,006,835.00|As pledge for guarantee and as security deposits|
|Notes receivable|554,066,161.00|Endorsed and transferred with right of recourse, as pledge for opening notes payable|
|Inventories|0.00|N/A|
|Fixed assets|59,103,357,241.00|As mortgage for guarantee|
|Intangible assets|962,788,931.00|As mortgage for guarantee|
|Investment property|194,397,438.00|As mortgage for guarantee|
|Construction in progress|2,578,810,470.00|As mortgage for guarantee|
|Total|72,191,427,076.00|--|

BOE Technology Group Co., Ltd. Annual Report 2016 V Investments made
1. Total investments made
√ Applicable□ Not applicable
||||
|-|-|-|
|Investments made in this Reporting Period (RMB Yuan)|Investments made in the prior year (RMB Yuan)|+/-%|
|501,072,666.00|684,136,502.00|-26.76%|

 2. Significant equity investments made in this Reporting Period
□ Applicable√ Not applicable
3. Significant non-equity investments ongoing in this Reporting Period
□ Applicable√ Not applicable
4. Financial investments
(1) Securities investments
√ Applicable□ Not applicable
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Profit/loss||||||||
|||||||on fair|Cumulative||||||Source of|
||||||||||Sold in|Profit/loss in||||
|Variety of|Code of|Name of|Initial|Accounting||value|fair value|Purchased in||||||
|||||measurement|Opening book|changes|changes|this Reporting|this|this|Closing book|Accounting title|investment|
|securities|securities|securities|investment cost||value||||Reporting|Reporting|value|||
|||||model||in this|charged to|Period|Period|Period|||funds|
|||||||Reporting|equity|||||||
|||||||Period||||||||
|Domestic/overseas||TPV||Fair value||||||||Available-for-sale|Own|
||HK00903||134,658,158.00||20,817,148.00|0.00|720,066.00|0.00|0.00|205,296.00|28,763,373.00|||
|stock||Technology||method||||||||financial asset|funds|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Domestic/overseas||Electronic||Fair value||||||||Available-for-sale|Own|
||SH600658||90,160,428.00||137,178,316.00|0.00|83,039,879.00|0.00|0.00|2,641,444.00|129,715,503.00|||
|stock||Zone||method||||||||financial asset|funds|
|Domestic/overseas||Bank of||Fair value||||||||Available-for-sale|Own|
||HK01963||120,084,375.00||147,525,393.00|0.00|27,983,239.00|0.00|0.00|6,651,480.00|148,067,614.00|||
|stock||Chongqing||method||||||||financial asset|funds|
|||BlackRock||||||||||||
|||Global||||||||||||
|Domestic/overseas||||Fair value||||||||Available-for-sale|Own|
||BLK|Allocation|4,004,297.00||0.00|0.00|1,969,866.00|4,004,297.00|0.00|0.00|5,974,163.00|||
|stock||||method||||||||financial asset|funds|
|||Fund A2||||||||||||
|||USD||||||||||||
|Domestic/overseas||China||Fair value||||||||Available-for-sale|Own|
||HK06066||70,041,364.00||0.00|0.00|-673,895.00|70,041,364.00|0.00|0.00|69,367,469.00|||
|stock||Securities||method||||||||financial asset|funds|
|Other securities investments held at the||||||||||||||
||||0.00|--|0.00|0.00|0.00|0.00|0.00|0.00|0.00|--|--|
|period-end||||||||||||||
|Total|||418,948,622.00|--|418,948,622.00|0.00|113,039,155.00|74,045,661|0.00|9,498,220.00|381,888,122.00|--|--|
|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) Investment in derivative financial instruments
□ Applicable√ Not applicable
No such cases in this Reporting Period
BOE Technology Group Co., Ltd. Annual Report 2016 5. Use of raised funds
√ Applicable□ Not applicable
(1) Overview of the use of raised funds
√ Applicable□ Not applicable
RMB’0,000 Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Accumulative||||
||||||Raised funds||raised funds||||
|||||||Accumulative|||Intended use of|Raised funds|
||||Raised funds|Raised funds|with changed||with changed||||
|||Total raised||||raised funds||Unused raised|unused raised|being idle for|
|Year of raising|Way of raising||used in this|accumulatively|use in the||use as a||||
|||amount||||with changed||funds|funds and place|more than two|
||||Reporting Period|used|Reporting||percentage of||||
|||||||use|||where it is kept|years|
||||||Period||total raised||||
||||||||funds||||
|2014|Private offering|4,488,471|679,593|4,488,471|68,474|418,474|9.32%|0|--|0|
||Corporate||||||||||
|2016||995,000|995,000|995,000|0|0|0.00%|0|--|0|
||bonds||||||||||
|Total|--|5,483,471|1,674,593|5,483,471|68,474|418,474|9.32%|0|--|0|
|Overview of the use of raised funds|||||||||||
|The total raised funds stood at RMB45,712,999,989.30. After deducting the various issuance expense of RMB828,294,936.66, the net raised funds via asset and cash subscription stood at|||||||||||
|RMB44,884,705,052.64, of which including the assets subscription of RMB8,532,999,999.30 (Beijing State-owned Capital Operation and Management Center subscribed by 48.92% equities of|||||||||||
|Beijing BOE Display Technology Co., Ltd.) and RMB5,999,999,999.70 of the relevant creditor's rights subscription with the issuance and raising funds investment projects of the Company that|||||||||||
|held by Hefei Jianxiang Investment Co., Ltd.. During the Reporting Period, the raised funds gradually invested in each project according to the expected plans. On December 21, 2016, it was|||||||||||
|approved at the 8th meeting of the 8th Board to permanently supplement the working capital with the surplus funds in the special account for raised funds as of December 19, 2016, which had|||||||||||
|been raised through a private offering in 2014.|||||||||||
|The net amount of the raised funds of the 16BOE01 bonds was of RMB99.50 hundred million Yuan, and up to the period-end, the raised funds has been used up, all of which used in|||||||||||
|supplementing the working funds which met with the agreement of the bond prospectus.|||||||||||

BOE Technology Group Co., Ltd. Annual Report 2016 (2) Projects with promised raised funds investment
√ Applicable□ Not applicable
Unit:RMB’0,000 Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Project|||||Investment|Date when||||
|||||||||Profit|||
||changed or|||||progress|the project||Expected|Significant|
|Projects with promised raised|||||Accumulative|||generated in|||
||not|Promised raised|Changed|Investment in the||as of the|reaches the||profit|change in|
|funds investment and investment|||||investment as of|||the|||
||(including|funds investment|investment (1)|Reporting Period||period-end|expected||reached or|project|
|of over-raised capital|||||the period-end (2)|||Reporting|||
||partially|||||(3)＝|usable||not|feasibility|
|||||||||Period|||
||changed)|||||(2)/(1)|condition||||
|Projects with promised raised funds investment|||||||||||
|1. Hefei 8.5G Line Project|No|700,000|699,500|78,072|699,500|100.00%|10/31/2014|2,638,509|--|None|
|2. Touch Screen Production Line|||||||||||
||No|250,000|250,000|0|250,000|100.00%|05/31/2017|--|--|None|
|Project|||||||||||
|3. Erdos 5.5G Line Project|No|400,000|400,000|117,130|400,000|100.00%|06/30/2017|227,869|--|None|
|4. Chongqing 8.5G Line Project|Yes|1,520,000|1,144,608|226,884|1,144,608|100.00%|12/31/2015|1,321,509|Yes|None|
|5. Supplementing the working|||||||||||
||No|165,171|233,645|68,474|233,645|100.00%|--|--|--|--|
|capital|||||||||||
|6. Subscription to equity interests|||||||||||
||No|853,300|853,300|0|853,300|100.00%|--|--|--|--|
|in BOE Display|||||||||||
|7. Subscription to creditor’s|||||||||||
||No|600,000|600,000|0|600,000|100.00%|--|--|--|--|
|rights on Hefei Jianxiang|||||||||||
|8. 2016 Supplement circulating|||||||||||
||No|995,000|995,000|995,000|995,000|100.00%|--|--|--|--|
|funds of the Company’s bonds|||||||||||
|Subtotal of projects with|||||||||||
||--|5,483,471|5,176,053|1,485,560|5,176,053|--|--|4,168,765|--|--|
|promised raised funds investment|||||||||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investment of over-raised capital|||||||||||
|N/A||||0|||||||
|Subtotal of investment of|||||||||||
||--|||||--|--|0|--|--|
|over-raised capital|||||||||||
|Total|--|5,483,471|5,176,053|1,485,560|5,176,053|--|--|4,168,765|--|--|
|Reason for failing to reach|||||||||||
|expected progress or profit|||||||||||
||No such cases in the Reporting Period||||||||||
|(explain one project by one|||||||||||
|project)|||||||||||
|Explanation on significant|||||||||||
||N/A||||||||||
|changes in feasibility of projects|||||||||||
|Amount, use and use progress of|||||||||||
||N/A||||||||||
|over-raised funds|||||||||||
|Change of the place where any|||||||||||
|raised funds investment project|N/A||||||||||
|will be carried out|||||||||||
|Change of the way how any|||||||||||
|raised funds investment project|N/A||||||||||
|will be carried out|||||||||||
|Advanced investment and|||||||||||
|exchange of any raised funds|N/A||||||||||
|investment project|||||||||||
|Idle raised funds used for|||||||||||
|temporarily supplementing|N/A||||||||||
|working capital|||||||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||
|-|-|
||During the construction of capital raising investment project, the Company and Project Company start from realities of situation; implement budget|
||management strictly; use raised capital cautiously with the principle of reasonability, effectiveness and economy; strictly control purchase and construction|
||procedure; control cost effectively; decrease implementation costs of project, so as to save maximum project capital. Also, interest income is generated when|
|Surplus raised funds in project||
||the raised capital is deposited. The Company held the 8th Meeting of the 8th Board of Directors on 21 Dec. 2016. The meeting deliberated and passed the|
|implementation and reasons||
||issue that non-development release savings of raised capital in 2014 replenished circulating capital permanently, also the meeting agreed to use the savings of|
||raised capital, around RMB 1.38 billion (including interest income) and in the special account of raised capital of the Company till 19 Dec. 2016, as permanent|
||replenishing circulating capital.|
|Intended use of unused raised||
||N/A|
|funds and place where it is kept||
|Problems or other issues found in||
|the use and disclosure of raised|N/A|
|funds||

(3) Changes in raised funds investment projects
√ Applicable□ Not applicable
Unit:RMB’0,000 Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Total raised funds|||Investment|Date when the|||Significant change|
||||Actual investment|Actual cumulative|||Profit generated in|||
||Originally|to be invested in|||progress as of the|project reaches||Expected profit|in feasibility of|
|Changed project|||in the Reporting|investment as of|||the Reporting|||
||promised project|the changed|||period-end (3)＝|the expected||reached or not|the changed|
||||Period|the period-end (2)|||Period|||
|||project (1)|||(2)/(1)|usable condition|||project|
|Chongqing 8.5G||||||||||
||Chongqing 8.5G|||||||||
|30K production||307,418|189,033|307,418|100.00%|04/01/2016|--|Yes|None|
||Line Project|||||||||
|expansion project||||||||||
||Supplementing|||||||||
|Supplementing||||||||||
||the working|||||||||
|the working||233,645|68,474|233,645|100.00%|--|--|--|None|
||capital Hefei 8.5G|||||||||
|capital||||||||||
||Line Project|||||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Chongqing 8.5G|||||||||
||and 30K|||||||||
||production|||||||||
|Hefei 8.5G Line|Hefei 8.5G Line|||||||Yes|None|
|||699,500|78,072|699,500|100.00%|10/31/2014|2,638,514|||
|Project|Project|||||||||
|Chongqing 8.5G|Chongqing 8.5G|||||||Yes|None|
|||1,144,608|226,884|1,144,608|100.00%|12/31/2015|1,302,382|||
|Line Project|Line Project|||||||||
|Total|--|2,385,171|562,463|2,385,171|--|--|3,940,896|--|--|
||||1. Chongqing 8.5G Line Project: Considering the narrowing profit margin for touch screen due to increasingly fierce competition, our|||||||
||||analysis of market trends and the actual situation of the project, the use of some raised funds has been adjusted according to the|||||||
||||Proposal for Adjusting Use of Some Raised Funds to Invest in Chongqing 8.5G Line 30K Production Expansion Project which was|||||||
||||reviewed and approved at the 23rd Meeting of the Seventh Board of Directors dated 19 April 2015 and later at the 2014 Annual General|||||||
||||Meeting dated 20 May 2015. The adjustment details have been disclosed in the Announcement No. 2015-022 of BOE Technology|||||||
|Reasons for change, decision-making procedure and|||Group Co., Ltd. on Adjusting Use of Some Raised Funds to Invest in Chongqing 8.5G Line 30K Production Expansion Project dated|||||||
|relevant information disclosure (explain one project by|||20 April 2015.|||||||
|one project)|||2. Supplementing the working capital : When the raised funds investment projects were being carried out, the Company and the project|||||||
||||companies managed to save some funds based on the reality of the projects. In addition, interest accrued when the raised funds was|||||||
||||kept in a bank account. As such, on December 21, 2016, it was approved at the 8th meeting of the 8th Board to permanently supplement|||||||
||||the working capital with the surplus funds in the special account for raised funds as of December 19, 2016, which had been raised|||||||
||||through a private offering in 2014. The said matter has been disclosed in the Announcement No. 2016-093 of BOE Technology Group|||||||
||||Co., Ltd. on Permanently Supplementing Working Capital with Surplus Raised Funds dated December 23, 2016.|||||||
|Reason for failing to reach expected progress or profit||||||||||
||||N/A|||||||
|(explain one project by one project)||||||||||
|Explanation on significant changes in feasibility of||||||||||
||||No significant changes|||||||
|changed project||||||||||

Note：The profit reached in this reporting perioed of Chongqing 8.5G and 30K production were calculated tighter..
BOE Technology Group Co., Ltd. Annual Report 2016 VI Sale of major assets and equity interests
1. Sale of major assets
□ Applicable√ Not applicable
No such cases in this Reporting Period.
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 over10% influence on theCompany’s net profit
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Relationship||||||||
|||||||Operating|||
|Company name||Main business scope|Registered capital|Total assets|Net assets||Operating profit|Net profit|
||with the||||||||
|||||||revenues|||
||Company||||||||
|Beijing BOE|||||||||
|Display||Development and production|||||||
||Subsidiary||17,882,913,500.00|28,911,968,701.00|19,921,321,452.00|15,874,528,030.00|170,186,471.00|421,670,504.00|
|Technology||of TFT-LCD|||||||
|Co., Ltd.|||||||||
|||Investment, construction,|||||||
|Hefei Xinsheng|||||||||
|||R&D, production and sales of|||||||
|Optoelectronics|||||||||
||Subsidiary|the relevant products of thin|19,500,000,000.00|35,527,569,494.00|20,993,546,027.00|11,685,780,086.00|-302,116,871.00|452,959,474.00|
|Technology|||||||||
|||film transistor LCD and its|||||||
|Co., Ltd.|||||||||
|||auxiliary products|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||||
|-|-|-|-|-|-|-|-|-|
|Chongqing||Investment, construction,|||||||
|BOE||R&D, production and sales of|||||||
|Optoelectronics|Subsidiary|the relevant products of thin|19,226,000,000.00|36,718,702,593.00|20,035,249,763.00|11,880,542,795.00|720,657,942.00|787,537,938.00|
|Technology||film transistor LCD and its|||||||
|Co., Ltd.||auxiliary products|||||||

Subsidiaries obtained or disposed in this Reporting Period
√ Applicable□ Not applicable
||||
|-|-|-|
|Subsidiary|How the subsidiary was obtained or disposed in this Reporting Period|Effect on overall production and operation results|
|Beijing BOE Changhong Network Technology Co., Ltd.|Transferred|No significant effects|
|Beijing BOE Digital Technology Co., Ltd.|Liquidated|No significant effects|
|BOE Taiwan Inc.|Liquidated|No significant effects|
|Varitronix International Limited|Business combination not under the same control|No significant effects|
|Beijing BOE Property Development Co., Ltd.|Business combination not under the same control|No significant effects|
|Hefei BOE Display Technology Co., Ltd.|Business combination not under the same control|No significant effects|
|Hefei BOE Video Technology Co., Ltd.|Incorporated through investment|No significant effects|
|Chongqing BOE Intelligent Electronic System Co., Ltd.|Incorporated through investment|No significant effects|
|Huaining Orient Duxiu New Energy Co., Ltd.|Incorporated through investment|No significant effects|
|BOE Taiwan Inc.|Incorporated through investment|No significant effects|
|BOE India Private Limited|Incorporated through investment|No significant effects|
|Beijing BOE Technology Development Co., Ltd.|Incorporated through investment|No significant effects|
|BOE Intelligent Technology Co., Ltd.|Incorporated through investment|No significant effects|
|Hefei BOE Zhuoyin Technology Co., Ltd.|Incorporated through investment|No significant effects|

Information about the main controlled and joint stock companies
N/A
BOE Technology Group Co., Ltd. Annual Report 2016 VIII Structured bodies controlled by the Company
□ Applicable√ Not applicable
IX Outlook for the future development of the Company
(I) Analysis of future environment for development
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
BOE has made a 25year development strategy at the beginning of entering the field of semi-conduct display industry. In the face of opportunities and challenges, BOE will further promote the integration of hardware and software, integration of application and transformation towards service orientation. The company will completely establish revolutionary innovative organization and mechanism as well as vitality to accelerate its transformation towards new display technological products and intelligent products, foster the ability to integrate life technology and IT and then promote theCompany’s innovation-oriented transformation and rapid but stable development of DSH through sticking to innovation and implementation of Internet Plus Strategy.
1. Display business group (DBG)
The Company should improve its core competitiveness in business group of new display and sensor through finding the potential demand of customers and optimizing customer experience taking customers as the centre. The Company need develop new products jointly to provide the best human-computer interactive products and service for application field such as smart phone, tablet PC, laptop, TV, industry control, healthcare, VR/AR etc.
TFT-LCD: Strengthening technical innovation, improving its ability to increase value in production line and flexibly respond to productivity fluctuation so as to meetcustomers’ needs maximally; raising the standardization of production line, optimizing the technological risks assessment mechanism of new products to ensure maximization of efficiency of production line; further promoting touch modularization, increasing the market share of five traditional applications--smart phone, table PC, laptop, TV, and display--at the time of speeding up the increasing of market share of new applications such as car carrying, industry control, health care, and display for commercial use etc.; promoting the increasing of production of Fuqing G8.5 production line and the building of G10.5 production line in Hefei.
AMOLED: Strengthening the ability of technological accumulation in AMOLED, enhancing the core capability, improving the technological reserve of key products and speeding up mass production of new technology; improving the supply chain of future display technology, finding potential customers and building a supply chain system with technological strength and cost competitiveness. Accelerating the project of the building of Chengdu AMOLED to achieve mass production as soon as possible. Sensor: Improving the ability and core technology in sensor and application products, speeding up the technological development of sensor and developing of new customers, and contributing to the breakthrough of sensor market.
VR/AR: promoting the project construction of Kunming micro-display quickly, speeding up productization of technology so as to seize the market.
2. Smart business group (SBG)
The Company constantly improves the core capacity-building of smart manufacturing service, smart retail, smart vehicle connection, and smart energy, and cooperates with household appliances, commercial equipment, culture and art, health care and other industry to expand new application, develop new market, set up new ecology, and create new value.
Smart manufacturing service: digging the potential demand of strategic customers deeply, developing the new brand customers, and
BOE Technology Group Co., Ltd. Annual Report 2016 carrying out the first supplier plan with lean management; achieving the annual sales breakthrough of medium and large size products, and constantly improving the market share of mobile products; promoting the construction of Hefei smart manufacturing factory, Chongqing smart manufacturing factory, and etc, completing the analysis of investment and operation to improve profitability.
Smart retail: accelerating the progress of self-service system, retail system, and the platform of art trading, etc, improving the core capacity of niche business of service system of internet of things, rapidly obtaining the revenues and profit, and improving the global competitiveness.
Smart energy: strengthening the core capacity, developing the new market, and setting up healthy and sustainable development model.
Smart vehicle connection: promoting the sales of TFT car products, and getting the substantive achievements of vehicle electronic system products; promoting the construction of car module production to produce line and sell soon.
3. Health business group (HBG)
Combining the electronic information technology, such as semiconductor display, artificial intelligence, and sensor technology with medicine and life science and technology innovatively, setting up health care service system that is human-centered to improve people healthy lifespan and life quality, and strive to be the global model of the field of health care service.
Mobile health: accelerating the customers development and market expansion of multi-signs tester, digging customers and market and developing the products, like glucose meter and occupying the market quickly to improve the profitability.
Regenerative medical science: attracting the industry leading talents, accumulating the core capacity of regenerative medical science; promoting positively the construction of projects, like cell engineering lab, cell preparation center, and clinical transformation center. O2O healthy service: setting up and perfecting the discipline of ecological system where medical, teaching, and research are put into one, consolidating the core capacity of medical business; accelerating the construction and operating preparation of Hefei BOE hospital project; pushing forward the confirmation of Chengdu project layout.
Health park: innovating the business model, constantly optimizing TS project, and improving the service ability of overall solution. X Visits paid to the Company for purposes of research, communication, interview, etc.
BOE Technology Group Co., Ltd. Annual Report 2016 1. In this Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
|01/07/2016|By phone|Institution||
|01/12/2016|One-on-one meeting|Institution||
|01/15/2016|One-on-one meeting|Institution||
|01/25/2016|One-on-one meeting|Institution|Main discussions: 1. The status quo and|
|02/18/2016|One-on-one meeting|Institution|future outlook of the Company; 2. The|
||||status quo and development trends of the|
|02/19/2016|By phone|Institution||
||||industry; and 3. The production lines of|
|02/24/2016|By phone|Institution||
||||the Company.|
|03/07/2016|One-on-one meeting|Institution||
|03/17/2016|By phone|Institution||
|04/21/2016|One-on-one meeting|Institution||
|05/06/2016|By phone|Institution||
|05/10/2016|One-on-one meeting|Institution||
|05/11/2016|By phone|Institution||
|05/12/2016|One-on-one meeting|Institution||
|05/23/2016|One-on-one meeting|Institution||
|05/27/2016|By phone|Institution||
|05/27/2016|One-on-one meeting|Institution||
|06/06/2016|One-on-one meeting|Institution|Main discussions: 1. The operating|
|06/08/2016|By phone|Institution|results of the first quarter in the year and|
||||the future outlook of the Company; 2.|
|06/13/2016|One-on-one meeting|Institution||
||||The status quo and development trends|
|06/16/2016|One-on-one meeting|Institution||
||||of the industry; and 3. The production|
|06/24/2016|One-on-one meeting|Institution|lines of the Company.|
|06/28/2016|By phone|Institution||
|07/01/2016|One-on-one meeting|Institution||
|07/01/2016|By phone|Institution||
|07/05/2016|One-on-one meeting|Institution||
|07/14/2016|One-on-one meeting|Institution||
|07/15/2016|One-on-one meeting|Institution||
|07/21/2016|One-on-one meeting|Institution||
|09/01/2016|One-on-one meeting|Institution||
||||Main discussions: 1. The semi-annual|
|09/02/2016|One-on-one meeting|Institution|operating results and the future outlook|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|09/02/2016|By phone||Institution|of the Company; 2. The status quo and|
|||||development trends of the industry; and|
|09/07/2016|One-on-one meeting||Institution||
|||||3. The production lines of the Company.|
|09/21/2016|By phone||Institution||
|09/21/2016|One-on-one meeting||Institution||
|09/23/2016|One-on-one meeting||Institution||
|10/14/2016|By phone||Institution||
|10/26/2016|By phone||Institution||
|10/27/2016|One-on-one meeting||Institution||
|10/31/2016|One-on-one meeting||Institution||
|11/03/2016|By phone||Institution||
|11/04/2016|One-on-one meeting||Institution||
|11/04/2016|One-on-one meeting||Institution|Main discussions: 1. The operating|
|11/10/2016|One-on-one meeting||Institution|results of the third quarter in the year and|
|||||the future outlook of the Company; 2.|
|11/11/2016|One-on-one meeting||Institution||
|||||The status quo and development trends|
|11/11/2016|By phone||Institution||
|||||of the industry; and 3. The production|
|11/11/2016|By phone||Institution|lines of the Company.|
|11/16/2016|One-on-one meeting||Institution||
|12/22/2016|One-on-one meeting||Institution||
|12/26/2016|By phone||Institution||
|Times of visit||50|||
|Number of visiting institutions||195|||
|Number of visiting individuals||0|||
|Number of other visitors||0|||
|Significant undisclosed information disclosed,|||||
|||None|||
|revealed or leaked|||||

BOE Technology Group Co., Ltd. Annual Report 2016 Section 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):
The Preplan for 2014 Annual Profit Allocation was reviewed and approved at the 2014 Annual Board of Directors. According to theCompany’s Scheme of Returns for Shareholders for the Coming Three Years (2014-2016), the Company shall, except in special circumstances, first adopt cash in dividend distribution provided that the Company makes a profit and the accumulative retained profits are positive for a year. The profits distributed in cash, stock or the combination of cash and stock for a year shall not be less than30% of the distributable profits made in the year. And special circumstances refer to: (I) that the Company is to have a significant external investment plan or a significant cash expenditure in the coming 12 months reaching or exceeding10% of theCompany’s lately audited net assets; and (II) other circumstances recognized by the general meeting of shareholders. Since the undistributed profits of the Company (without subsidiaries) for 2014 are RMB41,186,231 Yuan and the basic undistributed profits per share are RMB0.001167 Yuan, which is a small amount, the Board proposes not to distribute profits or transfer capital reserves into share capital for 2014. And the retained profits will be used for distribution for subsequent years or semi-years as well as in the routine operation of the Company.
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 Yuan (tax inclusive) per 10 shares to all shareholders, representing a total distribution of RMB351,530,677.43 Yuan, accounting for75.63% of its undistributed profit. No bonus shares were granted. Nor was any capital reserves converted into share capital.
The 2015 Annual Profit Distribution Proposal was considered and approved at the 2015 annual meeting of the Board. With the undistributed profit for 2015 at RMB486,814,338 Yuan and the basic undistributed profit per share at RMB0.013848 Yuan, the Company planned to distribute a dividend of RMB0.1 Yuan per 10 shares for 2015. 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 Yuan (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB351,530,677.43 Yuan, representing72.21% of the total undistributed profit. And no bonus shares were 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 theCompany’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 closuredate.）, the Company intended to distribute, with the undistributed profit, a cash dividend of RMB0.30 Yuan (tax inclusive) per 10 shares to all its shareholders, with the total amount to be distributed reaching RMB1,048,616,247.48 Yuan, representing70.22% of the total undistributed profit. And no bonus shares would be granted, nor would any capital reserve be converted into share capital.
BOE Technology Group Co., Ltd. Annual Report 2016 Cash dividend distribution of the Company to common shareholders over the past three years (including this Reporting Period) Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Net profit|Proportion in net|||
|||attributable to|profit attributable to|||
|||common|common|||
||Cash dividends|shareholders of the|shareholders of the||Ratio of cash|
|Year||||Cash dividends in||
||||||dividends in other|
||(tax included)|Company in the|Company in the|other forms||
||||||forms|
|||consolidated|consolidated|||
|||statements for the|statements for the|||
|||year|year (%)|||
|2016|1,048,616,247.48|1,882,571,674.00|55.70%|0.00|0.00%|
|2015|703,061,354.86|1,636,270,488.00|42.97%|0.00|0.00%|
|2014|0.00|2,562,128,829.00|0.00%|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)|0|
|Dividend for every 10 shares (RMB Yuan) (tax||
||0.30|
|inclusive)||
|Additional shares to be converted from capital||
||0|
|reserve for every 10 shares (share)||
|Total shares as the basis for the profit distribution||
||34,953,874,916|
|proposal (share)||
|Total cash dividends (RMB Yuan) (tax included)|1,048,616,247.48|
|Distributable profit (RMB Yuan)|1,493,363,829.00|
|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||
|For 2016, based on the total shares excluding the A and B shares bought back, the Company intended to distribute a cash dividend||
|of RMB0.30 Yuan (tax inclusive) per 10 shares to all its shareholders. And no bonus shares would be granted, nor would any||

BOE Technology Group Co., Ltd. Annual Report 2016
||
|-|
|capital reserve be converted into share capital. 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.|

Note: The total share base for theCompany’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.
BOE Technology Group Co., Ltd. Annual Report 2016 III Fulfillment of commitments
1. Commitments of theCompany’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||Period of|||
|||||Type of||||||||Fulfillm|
|Commitment||Commitment maker||||Contents||commitment||commitme|||
|||||commitment||||||||ent|
|||||||||making||nt|||
|Commitments made in share|||||||||||||
|reform|||||||||||||
|Commitments made in acquisition|||||||||||||
|documents or shareholding|||||||||||||
|alteration documents|||||||||||||
|Commitments made in time of|||||||||||||
|asset restructuring|||||||||||||
||Beijing State-owned Capital Operationand Management Center, Hefei JianxiangInvestment Co., Ltd., Chongqing CapitalOptoelectronics Investment Co., Ltd.||Restrictedsharescommitments||Committed that the shares acquired frompurchasing would not be transferred from thefirst date of issuing the newly increased sharesof the issuer within 36 months||04/08/2014||36 months||Ongoing||
|Commitments made in time of IPO|||||||||||||
|or refinancing|||||||||||||
||Hefei Rongke Project Investment Co.,Ltd.||Restrictedsharescommitments||Voluntarily committed to lock up for 24 monthsof the whole held Company’s shares sinceJanuary 9, 2014||01/09/2014||24 months||Fulfilled||
|Commitments concerning stock|||||||||||||
|ownership incentive|||||||||||||
|Other commitments made to|Beijing Electronics Holdings Co., Ltd.||Othercommitments||Committed not to decrease the shareholdingduring the shareholding increase execution and||07/31/2015||6 months||Fulfilled||
|minority interests|||||||||||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
||||within 6 months after the completion of theshareholding increase of 231,700 tradableshares of the RMB ordinary shares whichincreased the shareholding through thedirectional asset plan.||||
||Beijing BOE Investment & DevelopmentCo., Ltd.|Othercommitments|Committed not to decrease the shareholdingduring the shareholding increase execution andwithin 6 months after the completion of theshareholding increase of 6,311,100 tradableshares of the RMB ordinary shares whichincreased the shareholding through thedirectional asset plan.|08/24/2015|6 months|Fulfilled|
||All Directors, Supervisors and SeniorExecutives|Othercommitments|Committed not to decrease the shareholding ofthe Company’s shares within the future 6months since July 11, 2015.|07/11/2015|6 months|Fulfilled|
||Beijing Electronics Holdings Co., Ltd.,Beijing BOE Investment & DevelopmentCo., Ltd. and Hefei Rongke ProjectInvestment Co., Ltd.|Othercommitments|Committed not to decrease the shareholding ofthe Company’s shares within the future 6months since January 28, 2016.|01/28/2016|6 months|Fulfilled|
||Beijing BDA Technological InvestmentDevelopment Co., Ltd.|Othercommitments|Committed not to decrease the shareholding ofthe Company’s shares within the future 6months since February 14, 2016.|02/14/2016|6 months|Fulfilled|
|Fulfilled on time or not|Yes||||||
|Specific reasons for failing to|N/A||||||
|fulfill commitments on time and|||||||
|plans for next step|||||||

BOE Technology Group Co., Ltd. Annual Report 2016 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 theCompany’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 “modifiedauditor’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
No such cases in this Reporting Period.
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
In November 2016, the Company included Hefei BOE Display Technology Co., Ltd. in its consolidation scope because it had realized actual control on Hefei BOE Display by signing an acting-in-concert agreement with the other shareholders of Hefei BOE Display.
In April 2016, the Company included Varitronix International Limited in its consolidation scope because it had acquired a54.70% stake of Varitronix International Limited.
In July 2016, the Company included Beijing BOE Property Development Co., Ltd. in its consolidation scope because it had acquired the100% stake of Varitronix International Limited.
In August 2016, the Company excluded Beijing BOE Changhong Network Technology Co., Ltd. from its consolidation scope because it had sold its51% stake in Beijing BOE Changhong.
BOE Technology Group Co., Ltd. Annual Report 2016 In August 2016, the Company excluded controlled subsidiary Beijing BOE Video Technology Co., Ltd. from its consolidation scope because liquidation had been carried out on Beijing BOE Video.
In September 2016, the Company excluded Taiwan-based subsidiary Hometek Electronics Co., Ltd. from its consolidation scope because liquidation had been carried out on Hometek Electronics.
The Company incorporated eight new subsidiaries in the Current Year, namely, Hefei BOE Video Technology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., Huaining Orient Duxiu New Energy Co., Ltd., BOE Taiwan Inc., BOE India Private Limited, Beijing BOE Technology Development Co., Ltd., BOE Intelligent Technology Co., Ltd. and Hefei BOE Zhuoyin 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 Yuan)|810|
|Consecutive years of the audit service provided by the domestic CPAs firm|12 years|
|Names of the certified public accountants from the domestic CPAs firm|Su Xing, Wang Ting|
|Name of the foreign CPAs firm (if any)|N/A|
|Consecutive years of the audit service provided by the foreign CPAs firm (if||
||N/A|
|any)||
|Names of the certified public accountants from the foreign CPAs firm (if any)|N/A|

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 RMB2.25 million Yuan. 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.
XII Significant lawsuits and arbitrations
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 No such cases in this Reporting Period.
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-party transactions regarding purchase or sales of assets or equity interests
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Related-party transitions regarding joint investments
□ 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-party transactions
√ Applicable□ Not applicable
No
BOE Technology Group Co., Ltd. Annual Report 2016 Index to the public announcements about the said related-party transactions disclosed
||||
|-|-|-|
|Title of public announcement|Disclosure date|Disclosure website|
|Announcement on the Prediction of 2016 Annual Routine RelatedTransaction of BOE Technology Group Co., Ltd.|||
||04/26/2016|www.cninfo.com.cn|
|Announcement on the Adjustment of Investment Amounts for the10.5 Generation Film Transistor LCD Devices Production LineProject of BOE Technology Group Co., Ltd.|||
||07/28/2016|www.cninfo.com.cn|
|Announcement on the Adjustment of Registered Capital of HefeiBOE Display Technology Co., Ltd and the Signing of Investor’sConcerted Action Agreement of BOE Technology Group Co., Ltd.|||
||12/01/2016|www.cninfo.com.cn|
|Announcement on the Offer of Guarantee and Related Transaction forHefei BOE Display Technology Co., Ltd of BOE Technology GroupCo., Ltd.|||
||12/01/2016|www.cninfo.com.cn|

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 is 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 above10% 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 2016 2. Significant guarantees
√ Applicable□ Not applicable
(1) Guarantees provided by the Company
Unit:RMB’0,000 Yuan
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)||||||||||||||||||
||||Disclosure date of||||Actual occurrence||Actual||||||||Guarantee|
||||||Line of|||||||||||||
||Guaranteed party||the guarantee line||||date (date of||guarantee||Type of guarantee||Term of guarantee||Due or not||for a related|
||||||guarantee|||||||||||||
||||announcement||||agreement signing)||amount||||||||party or not|
|无||||||||||||||||||
|Guarantees between the Company and its subsidiaries||||||||||||||||||
||||Disclosure date of||||Actual occurrence||Actual||||||||Guarantee|
||||||Line of|||||||||||||
||Guaranteed party||the guarantee line||||date (date of||guarantee||Type of guarantee||Term of guarantee||Due or not||for a related|
||||||guarantee|||||||||||||
||||announcement||||agreement signing)||amount||||||||party or not|
|Hefei BOE PhotoelectricTechnology Co., Ltd.||08/14/2014||757,554||03/12/2015||332,818||Joint liabilityguarantee||07/23/2010 -07/23/2019||No||No||
|Beijing BOE DisplayTechnology Co., Ltd.||08/14/2014||1,072,387||09/30/2014||139,053||Joint liabilityguarantee||01/27/2011 -01/26/2020||No||No||
|Hefei Xin Sheng PhotoelectricTechnology Co., Ltd.||08/14/2014||1,283,345||01/15/2015||1,082,172||Joint liabilityguarantee||01/06/2014 -01/06/2022||No||No||
|Ordos Yuan ShengPhotoelectric Co., Ltd.||04/02/2013||482,976||05/22/2013||407,844||Pledge||06/17/2013 -06/09/2021||No||No||
|Ordos Yuan ShengPhotoelectric Co., Ltd.||08/14/2014||482,976||09/30/2014||407,844||Joint liabilityguarantee||06/17/2013 -06/09/2021||No||No||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Chongqing BOE PhotoelectricTechnology Co., Ltd.|08/14/2014||1,477,581|9/29/2014|1,064,802||Joint liabilityguarantee||11/05/2014 -11/05/2022||No|No|
|Chongqing BOE PhotoelectricTechnology Co., Ltd.|08/14/2014||300,000|05/25/2015|135,000||Joint liabilityguarantee||Opening date of theletter of guarantee -12/31/2020||No|No|
|Hefei BOE DisplayTechnology Co., Ltd.|12/17/2016||1,706,502|12/26/2016|291,354||Joint liabilityguarantee||12/26/2016 -12/26/2017||No|No|
|Fuzhou BOE PhotoelectricTechnology Co., Ltd.|12/10/2015||1,387,400|11/08/2016|857,057||Joint liabilityguarantee||12/19/2016 -12/19/2024||No|No|
|Total guarantee line for subsidiaries approved duringthe Reporting Period (B1)|||1,706,502||Total actual guarantee amount forsubsidiaries during the ReportingPeriod (B2)||||327,567||||
|Total approved guarantee line for subsidiaries at theend of the Reporting Period (B3)|||8,467,745||Total actual guarantee balance forsubsidiaries at the end of theReporting Period (B4)||||4,310,100||||
|Guarantees between subsidiaries|||||||||||||
||Disclosure date||||||||||||
|||||Actual occurrence date||||||||Guarantee for|
||of the guarantee|||||Actual guarantee|||||||
|Guaranteed party||Line of guarantee||(date of agreement||||Type of guarantee||Term of guarantee|Due or not|a related party|
||line|||||amount|||||||
|||||signing)||||||||or not|
||announcement||||||||||||
|Ordos Yuan Sheng Photoelectric||||||||Pledge||06/17/2013 -|||
||04/02/2013|482,976||05/22/2013||407,844|||||No|No|
|Co., Ltd.||||||||||06/09/2021|||
|||||||Total actual guarantee amount for|||||||
|Total guarantee line for subsidiaries approved|||||||||||||
|||0||||subsidiaries during the Reporting Period||||0|||
|during the Reporting Period (C1)|||||||||||||
|||||||(C2)|||||||
|Total approved guarantee line for subsidiaries at the||||||Total actual guarantee balance for|||||||
|||0||||||||0|||
|end of the Reporting Period (C3)||||||subsidiaries at the end of the Reporting|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||
|-|-|-|-|
|||Period (C4)||
|Total guarantee amount (total of the above-mentioned three kinds of guarantees)||||
|Total guarantee line approved during the Reporting||Total actual guarantee amount during the||
||1,706,502||327,567|
|Period (A1+B1+C1)||Reporting Period (A2+B2+C2)||
|Total approved guarantee line at the end of the||Total actual guarantee balance at the end||
||8,467,745||4,310,100|
|Reporting Period (A3+B3+C3)||of the Reporting Period (A4+B4+C4)||
|Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company||54.77%||
|Of which:||||
|Amount of guarantees provided for shareholders, the actual controller and their related parties||||
|||0||
|(D)||||
|Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset||||
|||0||
|ratio over 70% (E)||||
|Portion of the total guarantee amount in excess of 50% of net assets (F)||205,428||
|Total amount of the three kinds of guarantees above (D+E+F)||205,428||
|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||

Note：The Company provided a joint-liability guarantee for a syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. In the meantime, the Company, Hefei BOE Optoelectronics Technology Co., Ltd. and Beijing BOE Display Technology Co., Ltd. provided guarantees for the said syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. with their stakes in Erdos Haosheng Energy Investment Co., Ltd. as the pledges, so C1, C2, C3 and C4 are 0.
Explanation on guarantee that adopts complex method
N/A
(2) Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 No such cases in the Reporting Period.
3. Entrusted cash management
(1) Entrusted asset management
√ Applicable□ Not applicable
Unit:RMB’0,000 Yuan
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||||Actual||||||Actual||Actually|
||||||||||||||||||Amount|||||||
||||||||||||||||principal||||||profit and||received/paid|
||||Whether it is||||||||||||||provided|||||||
||||||||Value of||||||||amount||||||loss||profit/loss|
||||a||||||Commencement||Termination||Method of||||for||Projected|||||
||Name of trustee||||Product type||entrusted||||||||recovered||||||amount for||amount for|
||||related-party||||||date||date||remuneration||||impairment||income|||||
||||||||assets||||||||for the||||||the||the|
||||transaction||||||||||||||(if|||||||
||||||||||||||||Reporting||||||Reporting||Reporting|
||||||||||||||||||applicable)|||||||
||||||||||||||||Period||||||Period||Period|
|Industrial andCommercialBank of China||No||Bank wealthmanagementproduct||48,000||09/30/2015||01/27/2016||Pledgedprincipal||48,000||0||631||137||631||
|Industrial andCommercialBank of China||No||Bank wealthmanagementproduct||20,000||12/01/2015||03/29/2016||Pledgedprincipal||20,000||0||243||178||243||
|Industrial andCommercialBank of China||No||Bank wealthmanagementproduct||25,000||12/11/2015||04/08/2016||Pledgedprincipal||25,000||0||304||248||304||
|Industrial andCommercialBank of China||No||Bank wealthmanagementproduct||10,000||02/05/2016||04/07/2016||Pledgedprincipal||10,000||0||61||61||61||
|Industrial and||No||Bank wealth||10,000||02/03/2016||05/10/2016||Pledged||10,000||0||97||97||97||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|CommercialBank of China||managementproduct||||principal||||||
|ChinaEverbright Bank|No|Bank wealthmanagementproduct|12,800|05/27/2016|08/27/2016|Pledgedprincipal|12,800|0|98|98|98|
|ChinaEverbright Bank|No|Bank wealthmanagementproduct|10,000|07/29/2016|10/29/2016|Pledgedprincipal|10,000|0|75|75|75|
|ChinaEverbright Bank|No|Bank wealthmanagementproduct|13,000|08/29/2016|11/29/2016|Pledgedprincipal|13,000|0|98|98|98|
|ChinaEverbright Bank|No|Bank wealthmanagementproduct|12,300|08/26/2016|11/26/2016|Pledgedprincipal|12,300|0|92|92|92|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|20,000|03/04/2016|04/05/2016|Pledgedprincipal|20,000|0|47|47|47|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|10,000|05/30/2016|06/30/2016|Pledgedprincipal|10,000|0|23|23|23|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|20,000|07/08/2016|08/08/2016|Pledgedprincipal|20,000|0|44|44|44|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|20,000|06/28/2016|09/28/2016|Pledgedprincipal|20,000|0|146|146|146|
|ChinaDevelopment|No|Bank wealthmanagement|100,000|08/16/2016|09/15/2016|Pledged|100,000|0|218|218|218|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Bank||product||||principal||||||
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|18,800|06/03/2016|09/01/2016|Pledgedprincipal|18,800|0|134|134|134|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|35,000|07/21/2016|10/24/2016|Pledgedprincipal|35,000|0|264|264|264|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|20,000|09/02/2016|10/08/2016|Pledgedprincipal|20,000|0|52|52|52|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|100,000|09/19/2016|10/24/2016|Pledgedprincipal|100,000|0|254|254|254|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|25,000|08/16/2016|11/16/2016|Pledgedprincipal|25,000|0|183|183|183|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|40,000|08/31/2016|11/29/2016|Pledgedprincipal|40,000|0|286|286|286|
|ChinaDevelopmentBank|No|Bank wealthmanagementproduct|50,000|08/09/2016|11/07/2016|Pledgedprincipal|50,000|0|358|358|358|
|Huishang Bank|No|Bank wealthmanagementproduct|6,000|11/09/2016|05/05/2017|Pledgedprincipal|0|0|90|64|0|
|Huishang Bank|No|Bank wealthmanagement|15,000|09/24/2015|01/20/2016|Pledgedprincipal|15,000|0|213|34|213|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|Huishang Bank|No|Bank wealthmanagementproduct|20,000|09/11/2015|01/06/2016|Pledgedprincipal|20,000|0|269|12|269|
|Huishang Bank|No|Bank wealthmanagementproduct|15,000|11/13/2015|03/09/2016|Pledgedprincipal|15,000|0|192|112|192|
|Huishang Bank|No|Bank wealthmanagementproduct|30,000|01/15/2016|05/05/2016|Pledgedprincipal|30,000|0|319|319|319|
|Huishang Bank|No|Bank wealthmanagementproduct|30,000|05/25/2016|08/25/2016|Pledgedprincipal|30,000|0|253|253|253|
|ChinaConstructionBank|No|Bank wealthmanagementproduct|100,000|05/27/2016|07/07/2016|Pledgedprincipal|100,000|0|315|315|315|
|Bank ofCommunications|No|Bank wealthmanagementproduct|20,000|11/15/2016|12/20/2016|Pledgedprincipal|20,000|0|59|59|59|
|Minsheng Bank|No|Bank wealthmanagementproduct|55,000|05/24/2016|07/26/2016|Pledgedprincipal|55,000|0|313|313|313|
|Minsheng Bank|No|Bank wealthmanagementproduct|185,000|05/26/2016|08/25/2016|Pledgedprincipal|185,000|0|1,545|1,545|1545|
|The AgriculturalBank of China|No|Bank wealthmanagement|5,000|08/31/2016|11/29/2016|Pledgedprincipal|5,000|0|35|35|35|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|The AgriculturalBank of China|No|Bank wealthmanagementproduct|15,000|10/19/2016|12/20/2016|Pledgedprincipal|15,000|0|69|69|69|
|Ping An Bank|No|Bank wealthmanagementproduct|20,000|04/01/2016|04/29/2016|Pledgedprincipal|20,000|0|52|52|52|
|Ping An Bank|No|Bank wealthmanagementproduct|98,400|04/01/2016|04/29/2016|Pledgedprincipal|98,400|0|257|257|257|
|Ping An Bank|No|Bank wealthmanagementproduct|20,000|03/11/2016|05/18/2016|Pledgedprincipal|20,000|0|116|116|116|
|Ping An Bank|No|Bank wealthmanagementproduct|20,000|05/04/2016|05/18/2016|Pledgedprincipal|20,000|0|21|21|21|
|Ping An Bank|No|Bank wealthmanagementproduct|10,000|04/08/2016|05/17/2016|Pledgedprincipal|10,000|0|35|35|35|
|Ping An Bank|No|Bank wealthmanagementproduct|128,400|05/06/2016|05/20/2016|Pledgedprincipal|128,400|0|138|138|138|
|Ping An Bank|No|Bank wealthmanagementproduct|10,000|05/26/2016|06/02/2016|Pledgedprincipal|10,000|0|5|5|5|
|Ping An Bank|No|Bank wealthmanagement|128,400|05/25/2016|06/08/2016|Pledgedprincipal|128,400|0|135|135|135|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|Ping An Bank|No|Bank wealthmanagementproduct|40,000|05/24/2016|06/23/2016|Pledgedprincipal|40,000|0|104|104|104|
|Ping An Bank|No|Bank wealthmanagementproduct|40,000|05/27/2016|06/24/2016|Pledgedprincipal|40,000|0|81|81|81|
|Ping An Bank|No|Bank wealthmanagementproduct|40,000|06/30/2016|07/28/2016|Pledgedprincipal|40,000|0|101|101|101|
|Ping An Bank|No|Bank wealthmanagementproduct|20,000|06/24/2016|07/22/2016|Pledgedprincipal|20,000|0|49|49|49|
|Ping An Bank|No|Bank wealthmanagementproduct|5,000|07/15/2016|08/12/2016|Pledgedprincipal|5,000|0|11|11|11|
|Ping An Bank|No|Bank wealthmanagementproduct|20,000|05/27/2016|08/26/2016|Pledgedprincipal|20,000|0|162|162|162|
|Ping An Bank|No|Bank wealthmanagementproduct|128,400|06/15/2016|09/13/2016|Pledgedprincipal|128,400|0|1,061|1,061|1061|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|10/09/2015|01/07/2016|Pledgedprincipal|10,000|0|108|7|108|
|SPD Bank|No|Bank wealthmanagement|30,400|10/22/2015|01/20/2016|Pledgedprincipal|30,400|0|322|68|322|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|SPD Bank|No|Bank wealthmanagementproduct|10,000|11/13/2015|01/20/2016|Pledgedprincipal|10,000|0|97|27|97|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|11/26/2015|02/24/2016|Pledgedprincipal|30,000|0|318|191|318|
|SPD Bank|No|Bank wealthmanagementproduct|16,600|11/13/2015|02/11/2016|Pledgedprincipal|16,600|0|176|80|176|
|SPD Bank|No|Bank wealthmanagementproduct|20,000|11/30/2015|02/29/2016|Pledgedprincipal|20,000|0|214|139|214|
|SPD Bank|No|Bank wealthmanagementproduct|25,000|12/14/2015|03/14/2016|Pledgedprincipal|25,000|0|268|215|268|
|SPD Bank|No|Bank wealthmanagementproduct|35,000|12/21/2015|03/20/2016|Pledgedprincipal|35,000|0|371|326|371|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|12/23/2015|03/22/2016|Pledgedprincipal|30,000|0|333|300|333|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|02/26/2016|04/26/2016|Pledgedprincipal|30,000|0|207|207|207|
|SPD Bank|No|Bank wealthmanagement|30,000|03/24/2016|04/25/2016|Pledgedprincipal|30,000|0|108|108|108|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|SPD Bank|No|Bank wealthmanagementproduct|10,000|01/11/2016|04/11/2016|Pledgedprincipal|10,000|0|112|112|112|
|SPD Bank|No|Bank wealthmanagementproduct|15,000|03/11/2016|04/11/2016|Pledgedprincipal|15,000|0|55|55|55|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|03/25/2016|04/24/2016|Pledgedprincipal|30,000|0|101|101|101|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|03/25/2016|04/24/2016|Pledgedprincipal|30,000|0|101|101|101|
|SPD Bank|No|Bank wealthmanagementproduct|20,000|01/28/2016|04/27/2016|Pledgedprincipal|20,000|0|212|212|212|
|SPD Bank|No|Bank wealthmanagementproduct|26,600|02/25/2016|04/25/2016|Pledgedprincipal|26,600|0|184|184|184|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|03/11/2016|04/11/2016|Pledgedprincipal|10,000|0|25|25|25|
|SPD Bank|No|Bank wealthmanagementproduct|20,000|03/11/2016|05/10/2016|Pledgedprincipal|20,000|0|138|138|138|
|SPD Bank|No|Bank wealthmanagement|106,600|04/29/2016|05/18/2016|Pledgedprincipal|106,600|0|172|172|172|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|SPD Bank|No|Bank wealthmanagementproduct|20,000|05/12/2016|05/19/2016|Pledgedprincipal|20,000|0|14|14|14|
|SPD Bank|No|Bank wealthmanagementproduct|25,000|04/14/2016|05/14/2016|Pledgedprincipal|25,000|0|84|84|84|
|SPD Bank|No|Bank wealthmanagementproduct|25,000|04/14/2016|05/16/2016|Pledgedprincipal|25,000|0|90|90|90|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|05/04/2016|05/18/2016|Pledgedprincipal|30,000|0|36|36|36|
|SPD Bank|No|Bank wealthmanagementproduct|25,000|03/17/2016|05/16/2016|Pledgedprincipal|25,000|0|173|173|173|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|04/14/2016|05/16/2016|Pledgedprincipal|10,000|0|36|36|36|
|SPD Bank|No|Bank wealthmanagementproduct|30,000|05/05/2016|05/18/2016|Pledgedprincipal|30,000|0|33|33|33|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|05/30/2016|06/29/2016|Pledgedprincipal|10,000|0|22|22|22|
|SPD Bank|No|Bank wealthmanagement|60,000|05/27/2016|06/27/2016|Pledgedprincipal|60,000|0|189|189|189|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|SPD Bank|No|Bank wealthmanagementproduct|40,000|05/27/2016|06/27/2016|Pledgedprincipal|40,000|0|126|126|126|
|SPD Bank|No|Bank wealthmanagementproduct|70,000|05/25/2016|07/24/2016|Pledgedprincipal|70,000|0|426|426|426|
|SPD Bank|No|Bank wealthmanagementproduct|80,000|05/25/2016|07/24/2016|Pledgedprincipal|80,000|0|487|487|487|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|07/08/2016|08/07/2016|Pledgedprincipal|10,000|0|31|31|31|
|SPD Bank|No|Bank wealthmanagementproduct|55,000|07/29/2016|08/29/2016|Pledgedprincipal|55,000|0|173|173|173|
|SPD Bank|No|Bank wealthmanagementproduct|80,000|05/25/2016|08/23/2016|Pledgedprincipal|80,000|0|730|730|730|
|SPD Bank|No|Bank wealthmanagementproduct|15,000|08/11/2016|09/12/2016|Pledgedprincipal|15,000|0|47|47|47|
|SPD Bank|No|Bank wealthmanagementproduct|10,000|07/06/2016|10/08/2016|Pledgedprincipal|10,000|0|77|77|77|
|SPD Bank|No|Bank wealthmanagement|20,000|08/17/2016|09/14/2016|Pledgedprincipal|20,000|0|46|46|46|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||product||||||||||
|SPD Bank|No|Bank wealthmanagementproduct|40,000|09/01/2016|10/08/2016|Pledgedprincipal|40,000|0|144|144|144|
|SPD Bank|No|Bank wealthmanagementproduct|100,000|09/02/2016|10/08/2016|Pledgedprincipal|100,000|0|335|335|335|
|Industrial Bank|No|Bank wealthmanagementproduct|10,000|12/28/2015|01/28/2016|Pledgedprincipal|10,000|0|32|28|32|
|Industrial Bank|No|Bank wealthmanagementproduct|10,000|01/28/2016|05/20/2016|Pledgedprincipal|10,000|0|150|150|150|
|Industrial Bank|No|Bank wealthmanagementproduct|10,000|05/30/2016|07/30/2016|Pledgedprincipal|10,000|0|47|47|47|
|The AgriculturalBank of China|No|Bank wealthmanagementproduct|10,000|06/30/2016|09/28/2016|Pledgedprincipal|10,000|0|76|76|76|
|Bank of China|No|Bank wealthmanagementproduct|10,000|08/23/2016|09/20/2016|Pledgedprincipal|10,000|0|19|19|19|
|Bank of China|No|Bank wealthmanagementproduct|15,000|07/13/2016|10/13/2016|Pledgedprincipal|15,000|0|113|113|113|
|Bank of China|No|Bank wealthmanagement|15,000|07/13/2016|11/10/2016|Pledgedprincipal|15,000|0|148|148|148|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||product||||||||||||||
|Bank of China||No|Bank wealthmanagementproduct|5,000|12/01/2016||12/30/2016||Pledgedprincipal||5,000|0|10|10|10||
|Bank of China||No|Bank wealthmanagementproduct|15,000|11/14/2016||12/30/2016||Pledgedprincipal||15,000|0|49|49|49||
|China CiticBank||No|Bank wealthmanagementproduct|10,000|05/26/2016||06/23/2016||Pledgedprincipal||10,000|0|20|20|20||
|China CiticBank||No|Bank wealthmanagementproduct|8,000|08/26/2016||11/25/2016||Pledgedprincipal||8,000|0|58|58|58||
||Total|||3,252,700||--||--||--|3,246,700|0|17,351|15,336||--|
||Source of entrusted assets|||All from the Company's own funds|||||||||||||
||Cumulative amount of principal and revenue|||0|||||||||||||
||overdue||||||||||||||||
||Litigation involved (if applicable)|||Not applicable|||||||||||||
||Disclosure date of the announcement about the|||04/26/2016|||||||||||||
||board’s consent for the asset management||||||||||||||||
||entrustment (if any)||||||||||||||||
||Disclosure date of the announcement about the|||05/21/2016|||||||||||||
||general meeting’s consent for the asset||||||||||||||||
||management entrustment (if any)||||||||||||||||
||Any plan for asset management entrustment in|||Yes|||||||||||||
||the future||||||||||||||||

Note：The amount of entrusted assets approved by Company shareholders' meeting is 10 billion Yuan,which can be recycled.
BOE Technology Group Co., Ltd. Annual Report 2016 (2) Entrusted loans
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Other significant contracts
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XVIII. Social reponsibilities
1. Implementation of social responsibility of targeted measures in poverty alleviation
□ Applicable√ Not applicable
2. Condition of implementing other social responsibility
Earning from society, giving back to society and existing with society harmoniously are the faith which BOE always persists. For many years, BOE undertakes social responsibilities, integrates into local area and devotes into social public welfare actively. BOE establishes volunteer service system which covers each entity. BOE volunteers become the link between BOE and community, they practice what they advocate and pass on love and faith. The footprint of volunteer service has reached throughout the country. In 2016, BOE donated RMB 1 million Yuan to China Volunteer Service Foundation for supporting the development of social public welfare and volunteer service business.
In 2016, BOE launched several public welfare programs of education such as “lighting the growth road”, “rain and dew plan” and “dream space” etc. They are used to supporting poverty students and improve investment of educational resources in poverty area. The investment throughout the year is RMB 186,291 Yuan.Plus,BOE has signed long-term cooperation agreement withYan’an Human resources and social security bureau,and promise that in the future 3 years,they would offer more than 400 employment positions to employees who are compatible with job requirements.In 2016,BOE has successfully arranged 48 employess relevant jobs in company.
Details can be seen in 2016 Social Responsibility Report of BOE Technology Group Co., Ltd. which was disclosed on 25 Apr. 2017.
BOE Technology Group Co., Ltd. Annual Report 2016 If listed company and its subsidiaries belong to the key pollution discharge units which are published by environmental protection department
Yes
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Executed||Approved||
||Name of|Name of Main|||Quantity of||Distribution|||Total Weight||Excessive|
|||||||||Emission|Emission||Total Weight||
||Company or|Pollutant and|Discharge Method||Emission||Information of|||of Emission||Emission|
|||||||||Concentration|Standard of||of Emission||
||subsidiary|Distinctive Pollutant|||Outlet||Emission Outlet|||(t)||Condition|
||||||||||Pollutant||(t)||
|Beijing BOEOptoelectronicsTechnology Co.,Ltd.||COD|Standard emission|2||South gate offactory, northwestcorner of factory||171.17mg/L|500mg/L|54.33 tons|702.68 tons||
||||after being treated||||||||||
||||by|||||||||None|
|||Ammonia nitrogen||||||22.29 mg/L|45 mg/L|0.3 tons|55.93 tons||
||||sewage treatment||||||||||
||||system||||||||||
|||COD|Standard emission|||||141mg/L|500mg/L|164.18 tons|490.51 tons||
||Chengdu BOE||||||||||||
||||after being treated||||||||||
||Optoelectronics||||||North side of||||||
||||by||1|||||||None|
||Technology Co.,|Ammonia nitrogen|||||factory|21.2mg/L|45 mg/L|24.68 tons|25.249 tons||
||||sewage treatment||||||||||
||Ltd.||||||||||||
||||system||||||||||
|||COD|Standard emission|||||39.41mg/L|380mg/L|155.92 tons|1059 tons|None|
||Heifei BOE||||||||||||
||||after being treated||||||||||
||Optoelectronics||||||Northwest corner||||||
||||by||1||||||||
||Technology Co.,|Ammonia nitrogen|||||of factory|1.97mg/L|30mg/L|7.95 tons|99.2 tons|None|
||||sewage treatment||||||||||
||Ltd.||||||||||||
||||system||||||||||
||||Standard emission||||East gate of||||||
||Beijing BOE|COD||||||135 mg/L|||||
||||after being treated||||factory||||||
||Display||||||||||||
||||by||2||Behind No. 8||500mg/L|1291.042 tons|1618.8 tons|None|
||Technology Co.,||||||||||||
|||COD|sewage treatment||||Building of|97 mg/L|||||
||Ltd.||||||||||||
||||system||||factory||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||East gate of||||||
||Ammonia nitrogen||||9.91mg/L|||||
|||||factory||||||
|||||Behind No. 8||45 mg/L|59.56 tons|134.4 tons|None|
||Ammonia nitrogen|||Building of|2.59mg/L|||||
|||||factory||||||
|||Standard emission||Northeast gate of||||||
|Hefei Xinsheng|COD||||57.56 mg/l|380mg/L|284.86 tons|1621.97 tons|None|
|||after being treated||factory||||||
|Optoelectronics||||||||||
|||by|1|||||||
|Technology Co.,||||Northeast gate of||||||
||Ammonia nitrogen|sewage treatment|||12.31 mg/l|30mg/L|62.9 tons|128.08 tons|None|
|Ltd.||||factory||||||
|||system||||||||
|||Standard emission||North side of||||||
||COD||||30.5mg/L|500mg/L|58.5 tons|713.81 tons|None|
|Erdos Yuansheng||after being treated||factory||||||
|Optoelectronics||by|1|||||||
|||||North side of||||||
|Co., Ltd.|Ammonia nitrogen|sewage treatment|||0.83mg/L|45mg/L|1.5 tons|76.82 tons|None|
|||||factory||||||
|||system||||||||
|||Standard emission||South side of||||||
|Chongqing BOE|COD||||70.32mg/L|400mg/L|418.13 tons|727.08 tons|None|
|||after being treated||factory||||||
|Optoelectronics||||||||||
|||by|1|||||||
|Technology Co.,||||South side of||||||
||Ammonia nitrogen|sewage treatment|||7.56mg/L|30mg/L|42.98 tons|79.424 tons|None|
|Ltd.||||factory||||||
|||system||||||||

BOE Technology Group Co., Ltd. Annual Report 2016 Construction of pollution prevention equipment and operation condition
During report period, the Company does not have important environmental problem and builds strict environmental management system. Based on DSH three business groups, the Company improves environmental management structure constantly, specifies responsibility of environmental management at each level and prevents the unfavorable influence of enterprise operation on environment maximally. The Company has internal organizational structure to supervise overall environmental performance of the Company, formulate environmental management regulations and targets, carry out regular supervision for the environmental management condition of subordinate enterprises and 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 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. According to the principle of using water by separating, the RO concentrated water with higher salt content (deionized water which is got by osmose process) which is generated during preparing original pure water can be used in pure water preparing system after treatment, the remain RO concentrated water is flowed into recycled water system as exhaust gas purifying, cycling and cooling water, replenishing water of sewage treatment system and household flushing water for toilet, watering water for road, water for greening. The drainage water which is generated during ultrapure water preparing process is used for humidification of air conditioning system.
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.
BOE Technology Group Co., Ltd. Annual Report 2016 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 without any emission and discharge which exceed the standards. The Company will continue to promote the environmental management, devote to forging green factory and improve environmental management level constantly.
If social responsibility report is published
√ Yes□ No
|||||||
|-|-|-|-|-|-|
|Corporate Social Responsibility Report||||||
|Nature ofCorporate|If informationabout environmentis included|If informationabout societyis included|If informationabout corporategovernance isincluded|Standard disclosed in report||
|||||National standard|Foreignstandard|
|Others|Yes|Yes|Yes|1. Guide for Compiling ChinaCorporate Social ResponsibilityReport2. Guide for Standard Operationof Listed Company in MainBoard of Shenzhen StockExchange|GRI|

Explanation of specific situation
|||
|-|-|
|1. If the Company passes certification of environmental||
||Yes|
|management system (ISO14001)||
|2. Annual environmental investment and expenditure amount||
||42,097|
|of the Company (RMB’0,000)||
||In recent years, the environmental emission index of BOE Group is|
||successively up to national standards such as Sewage|
||Comprehensive Discharge Standard (GB8979-1996), Air Pollutant|
||Comprehensive Emission Standard (GB89879-1996), Industrial|
|3. Emission reduction performance of “waste gas, waste||
||Enterprise Environmental Noise Emission Standard within Factory|
|water, waste residue” of the Company||
||Boundary (GB12348-2008), The People’s Republic of China|
||Prevention and Treatment Law of Environmental Pollution of Solid|
||Waste etc and local standards without any emission and discharge|
||which exceed the standards.|
|4. The investment of the Company in improving personal||
|knowledge and skill of employee for improving career|2,806|
|development ability of employee (RMB’0,000)||
|5. The amount of social public welfare donation (fund, goods||
||118.63|
|and materials, free professional service) of the Company||

BOE Technology Group Co., Ltd. Annual Report 2016 XIX Other significant events
√ Applicable□ Not applicable
1. According to the Notice About Subscription of Additional Shares of Varitronix International Limited(Notice No.: 2016-011) released on February 4, 2016 by the company, the Company signed the Subscription Agreement Between Varitronix International Limited and BOE Technology Group Co., Ltd on February 3, 2016 with Varitronix International Limited that the Company funded from the Company's own funds and subscribed over50% shares of Varitronix International Limited by the way of subscribing additional shares to integrate its superior resources and accelertaely implement the global strategy of the vehicle display business of the company. The company had completed the delivery of stock options for Varitronix International Limited on April 28, 2016 in accordance with the Notice About Settlement for Subscription of Additional Shares of Varitronix International Limited (Notice No.: 2016-043) released on April 29, 2016. After the delivery, the Company held 400 million shares of Varitronix International Limited which accounts for54.70% of total shares and became its controlling shareholder. For the details, please see the related announcement.
2. According to the Notice About the Coupon Rate of Company Securities (the First) Issued publicly for Qualified Investors in 2016(Notice No.: 2016-024) released on March 21, 2016 by the company, the Company issued publicly Securities(the First) (“16BOE01” for short, stock code“112358”) 10,000 million for Qualified Investors in 2016, and the final coupon rate of the securities was3.15%.
3. On 21 May, 2016, the Company disclosed Announcement on Resolution of 2015 Shareholders Meeting (Announcement No. : 2016-045), Announcement on Resolution of the 1st Meeting of the 8th Board of Directors (Announcement No. : 2016-047) and Announcement on Resolution of the 1st Meeting of the 8th Board of Supervisors (Announcement No. : 2016-048). The meeting passed the relevant proposal for general election and finished general election. Specific information can be seen in relevant announcements in detail.
4. The Company disclosed Plan about Repurchasing Part of Social Public Shares of the Company on 15 Jul. 2016, the 3rd temporary shareholders meeting in 2016 has deliberated and approved the plan. The Company implemented the proposal about repurchasing part of social public shares for the first time in 20 September. Up to 31 Dec. 2016, the Company repurchased 88,692,299 shares of A-share and 43,848,526 shares of B-share accumulatively. Specific information can be seen in Announcement on Progress of Repurchasing Part of Social Public Shares (Announcement No. : 2017-001) in detail which was disclosed on 4 Jan. 2017 by the Company.
5. On 31 Oct. 2016, the Company disclosed Announcement on Signing Investment Framework Agreement (Announcement No.: 2016-075), the Company signed Investment Framework Agreement on the 6th AMOLED (Soft) Production Line Project in Mianyang with Mianyang MunicipalPeople’s Government. It is planned to invest RMB 46.5 billion Yuan in building a 6th AMOLED (soft) production line in Mianyang, Sichuan. The main product positioning is AMOLED soft display product, and the production line is used for producing high-end phone display and newly-developing mobile display product. The 4rd temporary shareholders meeting in 2016 has deliberated and approved the issue. Specific information can be seen in Announcement on Investing in Construction of the 6th AMOLED (Soft) Production Line Project (Announcement No.: 2016-084) in detail.
6. In order to fairly present the value of various assets, as per the Accounting Standards for Business Enterprises of the Ministry of Finance, as well as theCompany’s accounting policies and estimates, the Company carried out an impairment test on its assets with any sign of impairment at the end of 2016. Upon the test, theCompany’s asset impairment provisions as of the end of 2016 stood at RMB2,497.2778 million Yuan, up by RMB251.8448 million Yuan from the opening amount.
XX Significant events of subsidiaries
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 Section VI Share Changes and Information about Shareholders
I. Changes in shares
1. Change in shares
Unit: Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease (+, -)|||||After the change||
||||||Capitalization|||||
|Item|||Newly issue|||||||
||Amount|Proportion||Bonus shares|of public|Other|Subtotal|Amount|Proportion|
||||share|||||||
||||||reserves|||||
|I. Restricted shares|10,597,612,766|30.15%|0|0|0|-675,346,658|-675,346,658|9,922,266,108|28.23%|
|1. Shares held by the state|0|0.00%|0|0|0|0|0|0|0.00%|
|2. Shares held by state-owned corporations|10,595,502,993|30.14%|0|0|0|-675,026,803|-675,026,803|9,920,476,190|28.22%|
|3. Shares held by other domestic investors|2,109,773|0.01%|0|0|0|-319,855|-319,855|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|2,109,773|0.01%|0|0|0|-319,855|-319,855|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|24,555,454,977|69.85%|0|0|0|675,346,658|675,346,658|25,230,801,635|71.77%|
|1. RMB ordinary shares|23,353,364,808|66.43%|0|0|0|675,346,658|675,346,658|24,028,711,466|68.35%|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|2. Domestically listed foreign shares|1,202,090,169|3.42%|0|0|0|0|0|1,202,090,169|3.42%|
|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|0|0|35,153,067,743|100.00%|

 Reasons for changes in shares
√ Applicable□ Not applicable
1. On 11 Jan. 2016, the shareholders of the Company eased restrictions on restricted shares, the amount of released restricted shares is 675,026,803.
2. On 22 Oct. 2015, senior managers changed and all shares they held are transferred into restricted shares. Up to the end of report period, the restricted period of this part of shares expired, this part of shares transferred into unrestricted shares, 517,405 shares in total. On 20 May, 2015, the term of office for board of directors and board of supervisors of the Company was changed, directors, supervisors and senior managers changed,75% of the shares which the new directors, supervisors and senior managers held were transferred into restricted shares; all shares which the outgoing directors, supervisors and senior managers held were transferred into restricted shares, increasing 384,150 restricted shares in total. The total amount of decreased restricted shares was 133,255.
3. On 20 May, 2016, the term of Senior Vice President of the Company Li Xuezheng expired and he left his post; on 20 Nov. 2016, the restricted shares dropped by 186,600 shares. 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
Other contents that the Company thinks it is necessary to disclose or that securities regulatory institutions demand to disclose
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 2. Change of the restricted shares
√ Applicable□ Not applicable
Unit: share
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Restricted shares||Restricted||Restricted||Restricted shares||||Restricted|
||Name of the||||||||||Restricted|||
||||amount at the||shares relieved||shares increased||amount at the||||shares|
||shareholders||||||||||reasons|||
||||period-begin||of the period||of the period||period-end||||relieved date|
|BeijingState-ownedCapitalOperation andManagementCenter||4,063,333,333||0||0||4,063,333,333||Non-publicissuance||04/10/2017||
|ChongqingEzcapitalOpto-electronics IndustryInvestmentCo., Ltd.||3,000,000,000||0||0||3,000,000,000||Non-publicissuance||04/10/2017||
|HefeiJianxiangInvestmentCo., Ltd.||2,857,142,857||0||0||2,857,142,857||Non-publicissuance||04/10/2017||
|Hefei RongkeProjectInvestmentCo., Ltd.||675,026,803||675,026,803||0||0||Voluntarilycommitted toadd the sellingrestriction||01/11/2016||
|SeniorExecutivesshareholdings||2,109,773||704,005||384,150||1,789,918||Change inSeniorExecutives||11/20/2016||
||Total|10,597,612,766||675,346,658||384,150||9,922,266,108|||--||--|

 II. Issuance and listing of securities
1. Securities issuance in Reporting Period (excluding preferred stock)
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|Name of the|||||||
||||||Approved listing||
|shares and their||Issuance price||||Expiration date of the|
||Issuance date||Issuance number|Listing date|trading number||
|derivative||(or interest rate)||||trading|
||||||approved||
|securities|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|shares class|||||||
|No|||||||
|Convertible bonds, and Convertible bonds, bonds class in separation deal|||||||
|BOE Technology|||||||
|Group Co., Ltd|||||||
|publicly issued|||||||
|Company|||||||
||03/21/2016|3.15%|100,000,000|04/26/2016|100,000,000|03/21/2021|
|securities(the|||||||
|First) for|||||||
|Qualified|||||||
|Investors in 2016|||||||
|Other derivative securities|||||||
|No|||||||

Explanation of securities issuance (preferred shares are not included)
The bonds issued by the Company are used for supplementing working capital of the Company, optimizing financing structure and improving the capital condition of the Company. The Company is developed into integrated services architecture of display device, intelligent product and service, health service from single display device business eventually to achieve the integration of software and hardware, application integration and service transition. The Company will integrate to establish the intelligent product and service business group with the main direction of “internet of things and artificial intelligence” and the health service business group which is characterized by “information medicine and big data” on the basis of constantly strengthening the core ability of display business group. Through the financing arrangement, the requirement of operating capital of the Company can be satisfied to a certain extent, which helps the development and expansion of the corporate business and strengthens the market development and risk resistance ability.
2. Changes of theCompany’s share number and structure, as well as the corresponding changes in its asset-liability structure
√ Applicable□ Not applicable
During the Reporting Period, the Company publicly issued 10,000million securities for Qualified Investors. At the end of Reporting Period, the total assets increased from RMB 152,592,894,442 Yuan to RMB205,135,011,042 Yuan. The asset-liability ratio increased from48.65% to55.14%.
3. List of the existing internalworkers’ shares
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 III. Shareholders and actual controller
Total number of shareholders and their shareholding situation
Unit: share
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Total number of common|1,185,732（including 1,140,580 A-share holdersand 45,152 B-share holders）||||||Total number of common shareholders at the prior|||||||1,056,889 (including 1,014,828 A-share holdersand 42,061 B-share holders）|||||
||shareholders at the period-end|||||||month-end before the disclosure of this Report||||||||||||
||Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders|||||||||||||||||||
||||||Shareholding|||||Increase/decrease||||Number of|||Pledged or frozen shares|||
||||Nature of||||Total shares held at|||||Number of restricted||||||||
||Name of shareholder||||percentage|||||during the||||non-restricted|||Status of||Number of|
||||shareholder||||the period-end|||||shares held||||||||
||||||(%)|||||Reporting Period||||shares held|||shares||shares|
|Beijing State-owned CapitalOperation and ManagementCenter||State-ownedCorporation||11.56%||4,063,333,333|||0||4,063,333,333||0|||||||
|Chongqing EzcapitalOpto-electronics IndustryInvestment Co., Ltd.||State-ownedCorporation||8.53%||3,000,000,000|||0||3,000,000,000||0|||Pledged||955,000,000||
|Hefei Jianxiang Investment Co.,Ltd.||State-ownedCorporation||8.13%||2,857,142,857|||0||2,857,142,857||0|||||||
|Hua An Fund-ICBC-ZhongrongInternationalTrust-Zhongrong-AssembledFunds Trust Plan of RongjingNo. 1||Other||4.45%||1,564,126,904|||0||0||1,564,126,904|||||||
|BeijingEconomic-TechnologicalInvestment & Development||State-ownedCorporation||3.53%||1,241,423,641|||564,000,000||0||1,241,423,641|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
|Corp.||||||||
|China Securities Finance Corp.||Other|2.49%|876,936,082|-174,142,849|0|876,936,082|
|Beijing BOE Investment &Development Co., Ltd.||State-ownedCorporation|2.34%|822,092,180|0|0|822,092,180|
|Hefei Rongke ProjectInvestment Co., Ltd.||State-ownedCorporation|1.92%|675,026,803|0|0|675,026,803|
|National Social Security FundPortfolio 108||Other|0.80%|279,999,795|279,999,795|0|279,999,795|
|Beijing Electronics HoldingsCo., Ltd.||On behalfof thegovernment|0.78%|273,735,583|0|0|273,735,583|
||Strategic investors or general corporations||N/A|||||
||becoming top-ten shareholders due to placing|||||||
||of new shares (if any) (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 controllingshareholder.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 respectivelyunanimous 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% ofthe shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and BeijingElectronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to ImplementationProtocol of Voting Right.5. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist associatedrelationship or not, or they are persons acting in concert or not.|||||
||Related or acting-in-concert parties among the|||||||
||shareholders above|||||||
||Shareholdings of the top ten non-restricted shareholders|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||
|-|-|-|-|-|-|-|-|
||||||Type of shares|||
||Name of shareholder||Number of non-restricted shares held at the period-end|||||
||||||Type||Number|
|Hua An Fund-ICBC-Zhongrong InternationalTrust-Zhongrong-Assembled Funds Trust Plan of RongjingNo. 1||1,564,126,904||RMB ordinary shares||1,564,126,904||
|Beijing Economic-Technological Investment &Development Corp.||1,241,423,641||RMB ordinary shares||1,241,423,641||
|China Securities Finance Corp.||876,936,082||RMB ordinary shares||876,936,082||
|Beijing BOE Investment & Development Co., Ltd.||822,092,180||RMB ordinary shares||822,092,180||
|Hefei Rongke Project Investment Co., Ltd.||675,026,803||RMB ordinary shares||675,026,803||
|National Social Security Fund Portfolio 108||279,999,795||RMB ordinary shares||279,999,795||
|Beijing Electronics Holdings Co., Ltd.||273,735,583||RMB ordinary shares||273,735,583||
|Central Huijin Asset Management Co., Ltd.||248,305,300||RMB ordinary shares||248,305,300||
|Founder BEA Trust Co., Ltd- Founder BEA· HengshengNo.30 Securities Investment Single Fund Trust||210,289,500||RMB ordinary shares||210,289,500||
|Founder BEA Trust Co., Ltd - Founder BEA· HengshengNo.36 Single Fund Trust||207,960,100||RMB ordinary shares||207,960,100||
|||1. Beijing State-owned Capital Operation and ManagementCenter 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 itscontrolling shareholder.3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital PhotoelectricityInvestment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the sharesheld by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights ofthe shareholders.4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handedover 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock ManagementProtocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and||||||
||Related or acting-in-concert parties among the top ten|||||||
||non-restrictedly tradable share holders and between the top|||||||
||ten non-restrictedly tradable share holders and the top ten|||||||
||shareholders|||||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||
|-|-|
||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. The investment counselor of both Fangzheng East Asia EntrustmentCo., Ltd- Fangzheng East Asia Hengsheng No.30 SecuritiesInvestment with Single Fund Entrustment and Fangzheng East Asia EntrustmentCo., Ltd- Fangzheng East AsiaHengsheng No.36Single Fund Entrustmen belong to Zhengjin Capital Management.6. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders existassociated relationship or not, or they are persons acting in concert or not.|
|Top ten common shareholders conducting securities|N/A|
|margin trading (if any) (see Note 4)||

Did any top 10 common shareholder or any top 10 common shareholder with non-restricted share of the Company carry out an agreed buy-back in the Reporting Period?
□ Yes√ No
No top 10 common shareholder or any top 10 common shareholder with non-restricted share of the Company carried out any agreed buy-back in the Reporting Period.
2. Particulars about the controlling shareholder
Nature of the controlling shareholders: local state-controlled
Type of the controlling shareholders: corporation
||||||
|-|-|-|-|-|
||Legal representative /||Unified social credit||
|Name of controlling shareholder||Date of establishment||Main business scope|
||company principal||code||
|||||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; home electric appliances and|
|Beijing Electronics Holdings Co., Ltd.|Wang Yan|04/08/1997|91110000633647998H||
|||||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 other|Beijing Electronic Shareholding Co., Ltd. held 363,429,503shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||
|-|-|
|domestic and overseas listed companies|total shares amount of Electronic City; it held 42,287,460 shares of A share of North Huachuang (originally “Seven Star Electronics”)(Stock Code:|
|for the share controlling and share|002371), which accounted for 9.23% of the total shares of North Huachuang. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A|
|participating of the controlling|share of North Huachuang through holding the subsidiary Beijing Seven Star Huadian Technology GroupCo., Ltd, which covered 38.90% of the total|
|shareholders during the Reporting|shares amount of North Huachuang.|
|Period||

Change of the controlling shareholder during the Reporting Period
□ Applicable√ Not applicable
There was no change of the controlling shareholder during the Reporting Period.
3. Information about the actual controller
Nature of the actual controller: Local management organization for state-owned assets
Type of the actual controller: Corporation
||||||
|-|-|-|-|-|
||Legal representative /||Unified social credit||
|Name of actual controller||Date of establishment||Business scope|
||company principal||code||
|||||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; home electric appliances and|
|Beijing Electronics Holdings Co., Ltd.|Wang Yan|04/08/1997|91110000633647998H||
|||||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.|
||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||||
|Situation of the equities of the other|||||
||total shares amount of Electronic City; it held 42,287,460 shares of A share of North Huachuang (originally “Seven Star Electronics”)(Stock Code:||||
|domestic and overseas listed|||||
||002371), which accounted for 9.23% of the total shares of North Huachuang. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A||||
|companies of actual controller during|||||
||share of North Huachuang through holding the subsidiary Beijing Seven Star Huadian Technology GroupCo., Ltd, which covered 38.90% of the total||||
|the Reporting Period|||||
||shares amount of North Huachuang.||||

BOE Technology Group Co., Ltd. Annual Report 2016 Change of the actual controller during the Reporting Period
□ Applicable√ Not applicable
There was no change of the actual controller during the Reporting Period.
Ownership and control relations between the actual controller and the Company
Wang Dongsheng20%, Jiang Yukun10%, Liang Xinqing10%, Zhao State-owned Assets Supervision& Administration
Caiyong6.667%, Shi Dong6.667%, Chen Yanshun6.667%, Song Ying Commission of BeijingPeople’s Government
6.667%, Han Guojian6.667%, Gong Xiaoqing3.333%, Wang Yanjun3.333%, Wang Jiaheng3.333%, Liu Xiaodong3.333%, Ren Jianchang100%
1.667%, Sun Jiping1.667%, Zhang Peng1.667%, WangAi’zhen1.667%, Mu Chengyuan1.667%, Xu Yan1.667%, Hua Yulun1.667%, Zhong Beijing State-owned Capital Management
Huifeng1.667%
Administrative Center
100%
100%
Beijing Electronics Holdings Co., Ltd.
Beijing Intelligent Kechuang Technology Development Co., Ltd.66.25% 33.75%
Beijing BOE Investment& Development Co., Ltd.
11.56% 0.78%
2.34%
%
BOE Technology Group Co., Ltd.
Notes: 1: The Company regards Beijing Intelligent Kechuang Technology Development Co., Ltd. as a platform to implement equity incentive for the whole core technology manager, the aforesaid 20 subscribers are nominal shareholders, each investment proportion is not actual equity proportion, the equities of Beijing Intelligent Kechuang Technology Development Co., Ltd. are held in common by all implemented objectives of simulate plan of equity incentive mechanism.
2: When the Company completed private offering of shares in 2014, Beijing State-owned Capital Operation and Management Center transferred the70% shares directly held to Beijing Electronic Shareholding Co., Ltd. for managing through Shares Management Protocol, and Beijing Electronic Shareholding Co., Ltd. acquired the shareholders rights except for the disposition rights and equity rights attached to the equities; Beijing State-owned Capital Operation and Management Center maintained its voting rights of the rest30% equity directly held by itself in accordance with Beijing Electronic Shareholding Co., Ltd. through the agreement of the Voting Rights Exercising Agreement.
The actual controller controls the Company via trust or other ways of asset management
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 4. Other corporate shareholders with a shareholding percentage above10%
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
||Legal representative /|Date of|||
|Name of corporate shareholder|||Registered capital|Business scope|
||company principal|establishment|||
|||||Investment and investment|
|||||management; assets|
|Beijing State-owned Capital|||||
||||RMB 35,000,000,000|management; organize the|
|Management Administrative|Lin Fusheng|12/30/2008|||
||||Yuan|reorganization as well as the|
|Center|||||
|||||merger and acquisition of|
|||||the enterprise assets.|

 5. Limits on theCompany’s shares held by its controlling shareholder, actual controller, reorganizer and other commitment subjects
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016 Section VII Preference Shares
□ Applicable√ Not applicable
There was no preferred stock during Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2016 Section VIII Directors, Supervisors, Senior Executive Officers and Staff
I Changes in shareholdings of directors, supervisors and senior management
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||||||Increase in||Decrease in|||||
||||||||||||||||||||||Other|||
||||||||||||||||Opening||the||the||||Closing|
||||||Incumbent||||||||||||||||increase/d|||
||Name||Office title||||Gender||Age||Starting date||Ending date||shareholdin||Reporting||Reporting||||shareholdin|
||||||/former||||||of tenure||of tenure||||||||ecrease|||
||||||||||||||||g (share)||Period||Period||||g (share)|
||||||||||||||||||||||(share)|||
||||||||||||||||||(share)||(share)|||||
|WangDongsheng||Chairman of the Board||Current||Male||59||05/20/2016||05/19/2019||299,905||0||0||0||299,905||
|Xie Xiaoming||Vice Chairman of theBoard||Current||Male||57||05/20/2016||05/19/2019||7,680||0||0||0||7,680||
|Chen Yanshun||Vice Chairman of theBoard, Chief of ExecutiveCommittee(CEO)||Current||Male||50||05/20/2016||05/19/2019||260,000||0||0||0||260,000||
|Wang Jing||Director||Current||Female||45||05/20/2016||05/19/2019||0||0||0||0||0||
|Zhang Jinsong||Director||Current||Male||44||05/20/2016||05/19/2019||0||0||0||0||0||
|Liu Xiaodong||Director, Executive VicePresident, President andCOO||Current||Male||52||05/20/2016||05/19/2019||250,000||0||0||0||250,000||
|Song Jie||Director||Current||Male||49||05/20/2016||05/19/2019||0||0||0||0||0||
|YaoXiangjun||Director, ExecutiveCommittee Member,Senior Vice President,Joint COO and CEO ofIntellectual SystemBusiness Group||Current||Male||39||05/20/2016||05/19/2019||100,000||0||0||0||100,000||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Lv Tingjie|Independent Director|Current|Male|61|05/20/2016|05/19/2019|0|0|0|0|0|
|WangHuacheng|Independent Director|Current|Male|53|05/20/2016|05/19/2019|0|0|0|0|0|
|Hu Xiaolin|Independent Director|Current|Male|38|05/20/2016|05/19/2019|0|0|0|0|0|
|Li Xuan|Independent Director|Current|Male|48|08/19/2016|05/19/2019|0|0|0|0|0|
|Chen Ming|Chief of SupervisoryBoard（Convener）|Current|Male|59|05/20/2016|05/19/2019|0|0|0|0|0|
|Xu Tao|Supervisor|Current|Male|53|05/20/2016|05/19/2019|0|0|0|0|0|
|Mu Chengyuan|Supervisor|Current|Male|49|05/20/2016|05/19/2019|2,991|0|0|0|2,991|
|Zhao Wei|Supervisor|Current|Male|48|05/20/2016|05/19/2019|0|0|0|0|0|
|Shi Hong|Supervisor|Current|Female|32|05/20/2016|05/19/2019|0|0|0|0|0|
|Zhuang Haoyu|Supervisor|Current|Male|32|05/20/2016|05/19/2019|0|0|0|0|0|
|Miao Chuanbin|Employee Supervisor,CCO|Current|Male|43|05/20/2016|05/19/2019|0|0|0|0|0|
|Xu Yangping|Employee Supervisor|Current|Male|42|05/20/2016|05/19/2019|0|0|0|0|0|
|He Daopin|Employee Supervisor|Current|Male|47|05/20/2016|05/19/2019|0|0|0|0|0|
|Dong Youmei|Executive Vice President,Secretary General ofStrategy Committee of theBoard and Director ofTechnology and ProductsStrategy Committee|Current|Female|53|05/20/2016|05/19/2019|200,000|0|0|0|200,000|
|Sun Yun|Executive CommitteeMember, Executive VicePresident, CFO|Current|Female|47|05/20/2016|05/19/2019|155,981|0|0|0|155,981|
|Yue Zhanqiu|Executive Committee|Current|Male|49|05/20/2016|05/19/2019|150,000|0|0|0|150,000|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Member, Senior VicePresident, CIO|||||||||||
|Feng Liqiong|Senior Vice President,Chief Lawyer|Current|Female|44|05/20/2016|05/19/2019|150,000|0|0|0|150,000|
|Zhong Huifeng|Executive CommitteeMember, Senior VicePresident, CHO|Current|Male|46|05/20/2016|05/19/2019|150,000|0|0|0|150,000|
|Xie Zhongdong|Executive CommitteeMember, Senior VicePresident, Chief RiskOfficer and AuditorGeneral|Current|Male|46|05/20/2016|05/19/2019|110,000|0|0|0|110,000|
|ZhangZhaohong|Executive CommitteeMember, Senior VicePresident, CEO ofDisplay Devices BusinessGroup|Current|Male|46|05/20/2016|05/19/2019|150,000|0|0|0|150,000|
|Feng Qiang|Executive CommitteeMember, Senior VicePresident, CEO of HealthService Business Group|Current|Male|40|05/20/2016|05/19/2019|100,000|0|0|0|100,000|
|Yang Anle|Senior Vice President,Chief Investment Officer|Current|Male|46|05/20/2016|05/19/2019|100,000|0|0|0|100,000|
|Tong Guanshan|Senior Vice President,CTO|Current|Male|48|05/20/2016|05/19/2019|0|0|0|0|0|
|Liu Hongfeng|Vice President, Secretaryof the Board|Current|Male|38|05/20/2016|05/19/2019|100,000|0|0|0|100,000|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Jing Linfeng||Vice President, CSO andExecutive Secretary of theExecutive Committee||Current||Male||38||05/20/2016||05/19/2019||100,000||0||0||0||100,000||
|Ji Guoping||Independent Director||Former||Male||69||07/10/2013||05/20/2016||0||0||0||0||0||
|Yu Ning||Independent Director||Former||Male||61||07/10/2013||06/01/2016||0||0||0||0||0||
|Zhou Yanwen||Employee Supervisor||Former||Male||49||07/10/2013||05/20/2016||0||0||0||0||0||
|Li Xuezheng||Senior Vice President||Former||Male||47||07/10/2013||05/20/2016||186,600||0||186,600||0||0||
||Total||--||--||--||--||--||--||2,573,157||0||186,600||0||2,386,557|

 II Changes in directors, supervisors and senior management
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Office title|Type of change|Date|Reason|
|YaoXiangjun|Director, Executive Committee Member, Senior Vice President,||||
|||Appointed|05/20/2016|Elected|
||Joint COO and CEO of Intellectual System Business Group||||
|Hu Xiaolin|Independent Director|Appointed|05/20/2016|Elected|
|Li Xuan|Independent Director|Appointed|08/19/2016|Elected|
|He Daopin|Employee Supervisor|Appointed|05/20/2016|Elected|
|Dong Youmei|Executive Vice President, Secretary General of Strategy|Appointed|||
||Committee of the Board and Director of Technology and||05/20/2016|Employment|
||Products Strategy Committee||||
|Zhang Zhaohong|Executive Committee Member, Senior Vice President, CEO of|Appointed|||
||||05/20/2016|Employment|
||Display Devices Business Group||||
|Feng Qiang|Executive Committee Member, Senior Vice President, CEO of|Appointed||Employment|
||||05/20/2016||
||Health Service Business Group||||
|Yang Anle|Senior Vice President, Chief Investment Officer|Appointed|05/20/2016|Employment|

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
|Tong Guanshan|Senior Vice President, CTO|Appointed|05/20/2016|Employment|
|Liu Hongfeng|Vice President, Secretary of the Board|Appointed|05/20/2016|Employment|
|Jing Linfeng|Vice President, CSO and Executive Secretary of the Executive|Appointed||Employment|
||||05/20/2016||
||Committee||||
|Ji Guoping|Independent Director|Left as the service term|||
||||05/20/2016|Left as the service term expired|
|||expired|||
|Yu Ning|Independent Director|Left the post|06/01/2016|Pass away|
|Zhou Yanwen|Employee Supervisor|Left as the service term|||
||||05/20/2016|Left as the service term expired|
|||expired|||
|Li Xuezheng|Senior Vice President|Left as the service term|||
||||05/20/2016|Left as the service term expired|
|||expired|||

BOE Technology Group Co., Ltd. Annual Report 2016 III Brief biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent directors, supervisors and senior management
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 leaded to found BOE in 1993, and made BOE bacame 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, 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, Chairman of Beijing Dongguang Micro Electronic Co., Director of Beijing Seven Star Huachuang Electronics Holding Co., Ltd., and Director of Beijing Electronic Control Ai Sikai Technology Co., Ltd.
Mr. Chen Yanshun, Master of Economics, senior accountant, has ever taken the posts of lecturer of Chongqing Industry& 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 BoardBeijing·Matsushita Color CRT Co., Ltd, and Chairman and Director of the Board of BOE Technology (Hong Kong) Co., Ltd., and Director of Mingde Investment Co., Ltd.
Mrs. Wang Jing, Bachelor of Finance, LLM, MBA and Senior Economist. She once worked as Clerk of Securities Department in
BOE Technology Group Co., Ltd. Annual Report 2016 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., Director of Beijing New energy Automobile Co., Ltd, 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 Anchinery 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 Beijing Sevenstar Huachuang Electronics Co., Ltd, and Chairman of Beijing Peony Electronic Group Co., Ltd, and Director of Beijing BOE Investment& Development Co., Ltd, Director of Beijing Beiguang Science& Technology Co., Ltd., Director of Beijing Electronic Control Ai Sikai Technology Co., Ltd, and Director of Beijing Yandong Microelectronics 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., Director of Hefei Xinsheng Optoelectronics 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 Economic-Technological Investment& Development Corp, 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 Economic -Technological Investment& Development Corp.
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, Financial Controller of Hefei BOE Optoelectronics Technology Co., Ltd.
Now he serves as Director of the 8th board of directors, Member of Execution Committee, Senior Vice President, Co-Chief
BOE Technology Group Co., Ltd. Annual Report 2016 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. and Varitronix International Limited.
Independentdirector’s particulars
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 worked in Beijing University of Posts and Telecommunications since May 1985, and he was the Independent Director of Xinhua Net, BOE, and Gohigh Data Networks Technology Co., Ltd, Independent Director of Shenzhen Ai Shide Co., Ltd.
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.
Mr. Li Xuan, doctor of laws, vice 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 China Case Study Association, 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 CNBM (listed in Hong Kong Exchange).
BOE Technology Group Co., Ltd. Annual Report 2016Supervisors’ Particulars
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 Beijing Seven Star Huachuang Electronics 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.. 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..
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 Economic-Technological Investment& Development Corp. Member of Investment Decision Committee of China Reform Fund Management Co., Ltd. and Supervisor of Beijing Boda Xinyuan House Real Estate Development Co., Ltd..
Mr. Zhuang Haoyu, Bachelor, he once worked as Project Assistant of Beijing Industrial Development Investment Management Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Now he is Supervisor of the 8th Supervisory Committee of the Company, and Project Assistant of Beijing Industrial Development. 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 Plant. 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.
BOE Technology Group Co., Ltd. Annual Report 2016 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 Officials and Chief Officer of Culture; member of the Third National Committee ofChina’s Defense of Posts and Telecommunications Union.
Mr. Xu Yangping, Master of Civil and Commerciall Law. He was former Deputy Minister, Minister of theCompany’s Legal Department, 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 theCompany’s Legal Department and Organization 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, 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.
Introduction of senior managerial personnel
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 and Chief Technology Officer of the Company, Chief of TFT-LCD Technology National Engineering Laboratory, Member of Advisory Committee for the State Information, Member of Electronic Science and Technology Committee of Ministry of Industry and Information Technology, Team Leader of Core Technology Team of China OLED Industry Union, Expert of State Science and Technology Awards Evaluation, member of The Ministry of Education of Higher School Teaching Steering Committee and Member of Editorial Board of Modern Display.
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 Executive Committee Member, Senior 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 ofBeijing·Matsushita Color CRT Co., Ltd.
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 Executive Committee Member , Senior Vice President and CIO of the Company.
BOE Technology Group Co., Ltd. Annual Report 2016 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 ofChina’s Defense of Posts and Telecommunications Union.
Now he acts as Executive Committee Member, 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 Executive Committee Member, Vice President, Chief Risk Control Officer and Chief Auditor of the Company, Vice President of Beijing Internal Audit Association, Chief Supervisor of Hefei BOE Optoelectronics Technology Co., Ltd., Supervisor of Chengdu BOE Optoelectronics Technology Co., Ltd., Hefei BOE Display Light Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., Hefei Xinsheng Optoelectronics Technology Co., Ltd., Supervisor of Beijing BOE Display Technology Co., Ltd., and OASIS Investment Co., Ltd., Beijing BOE Vision-electronic 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., Ltd., Chief Operating Officer of BOE Display Device Business Group.
Now he serves as Member of Executive Committee of the Company, Senior Vice President, Chief Executive Officer of Display Device Business Group, 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.
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 Member of Executive Committee of the Company, Senior Vice President, Chief Executive Officer of Health Service Business Group, 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
BOE Technology Group Co., Ltd. Annual Report 2016 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 Heifei BOE Display Technology Co., Ltd., Director of Fuzhou BOE Optoelectronics Technology Co., Ltd., Director of BOE Optoelectronics Technology Co., Ltd., Director of Integrity Capital Partners, 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.), MBA of Massachusetts Institute of Technoloty (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.
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 Vice President, Chief Strategic Officer of the Company and Executive Secretary of Executive Committee. Post-holding inshareholders’ units
√ Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Name of the||||||||||
|||||||||||Receivepay|
||person holding||||||||||
|||||||||Ending date||ment from|
||any post in||Name of shareholder’s unit||Position in||Beginning date of|of office||shareholder|
||||||shareholder’s unit||office term||||
||shareholder’s|||||||term||’s unit or|
|||||||||||not|
||unit||||||||||
|Xie Xiaoming||Beijing Electronics Holdings Co.,Ltd.||Vice president||06/22/2011|||Yes||
|Wang Jing||Beijing State-owned CapitalManagement Center||Vice GM||01/26/2014|||Yes||
|Zhang Jinsong||Beijing Electronics Holdings Co.,Ltd.||Vice president||08/29/2011|||Yes||
|Zhang Jinsong||Beijing BOE Investment &||Director||12/14/2012|||No||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
||Development Co., Ltd.||||
|Song Jie|Beijing Economic-TechnologicalInvestment & Development Corp.|Manager ofInvestmentSecuritiesDepartment|05/26/2008|Yes|
|Mu Chengyuan|Beijing Electronics Holdings Co.,Ltd.|Minister ofInvestmentSecuritiesDepartment|06/01/2011|Yes|
|Mu Chengyuan|Beijing BOE Investment &Development Co., Ltd.|Director, Vicepresident|12/14/2012|No|
|Xu Tao|Beijing Electronics Holdings Co.,Ltd.|Finance Minister|10/26/2012|Yes|
|Shi Hong,|Beijing Economic-TechnologicalInvestment & Development Corp.|Investment &FinancingDirector|09/18/2012|Yes|
|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
|||||||
|-|-|-|-|-|-|
|Name of the||||||
||||||Receive payment|
|person holding||||||
||Name of other unit|Position in other|Beginningdate of office|Ending date of|from other unit or|
|any post in||unit||office term||
||||term||not|
|other unit||||||
||Beijing University of Posts and|||||
|Lv Tingjie||Doctor Advisor|||Yes|
||Telecommunications|||||
|Wang||||||
||Renmin University of China|Doctor Advisor|||Yes|
|Huacheng||||||
|||Associate||||
|Hu Xiaolin|Tsinghua University||||Yes|
|||Researcher||||
||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||||
||Beijing Industry Development Investment|||||
|Zhuang Haoyu||Project Manager|||Yes|
||Management Co., Ltd|||||
|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||||||

BOE Technology Group Co., Ltd. Annual Report 2016 Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors and senior management as well as those who left in the Reporting Period
□ Applicable√ Not applicable
IV. Remuneration for directors, supervisors and senior management staffs
Decision-making procedure, determining basis and actual payment for the remuneration of directors, supervisors and senior management staffs
(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 theShareholders’ General Meeting 2005 held on 29 May 2006. Allowance for directors and supervisors of the Company was reviewed and approved at the Second SpecialShareholders’ General Meeting for 2013 held onJuly10，2013.
(2) Up to the end of the Reporting Period, the current directors, supervisors and senior management staffs drew their remuneration from the Company total RMB30.2189 million Yuan (before tax). Allowance for independent directors is RMB150,000 Yuan (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 Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Whether gain|
||||||||||||Total|||
||||||||||||||remuneration|
||||||||||||remuneration|||
||||||||||Tenure||||from the|
||Name||Office title||Sex||Age||||(before tax)|||
||||||||||status||||Related Party|
||||||||||||gained from the|||
||||||||||||||of the|
||||||||||||Company|||
||||||||||||||Company|
|WangDongsheng||Chairman of the Board||Male||59||Current||223.51||No||
|Xie Xiaoming||Vice Chairman of the Board||Male||57||Current||0||||
|Chen Yanshun||Vice Chairman of the Board,Chief of ExecutiveCommittee(CEO)||Male||50||Current||253.94||No||
|Wang Jing||Director||Female||45||Current||0||||
|Zhang Jinsong||Director||Male||44||Current||0||||
|Liu Xiaodong||Director, Executive VicePresident, President andCOO||Male||52||Current||200.94||No||
|Song Jie||Director||Male||49||Current||8||||
|YaoXiangjun||Director, ExecutiveCommittee Member, SeniorVice President, Joint COOand CEO of Intellectual||Male||39||Current||190.2||No||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
||System Business Group||||||
|Lv Tingjie|Independent Director|Male|61|Current|15|No|
|WangHuacheng|Independent Director|Male|53|Current|15|No|
|Hu Xiaolin|Independent Director|Male|38|Current|9.23||
|Li Xuan|Independent Director|Male|48|Current|5.5||
|Chen Ming|Chief of Supervisory Board（Convener）|Male|59|Current|0||
|Xu Tao|Supervisor|Male|53|Current|0||
|Mu Chengyuan|Supervisor|Male|49|Current|0||
|Zhao Wei|Supervisor|Male|48|Current|8||
|Shi Hong|Supervisor|Female|32|Current|8||
|Zhuang Haoyu|Supervisor|Male|32|Current|8||
|Miao Chuanbin|Employee Supervisor, CCO|Male|43|Current|52.9|No|
|Xu Yangping|Employee Supervisor|Male|42|Current|67.55|No|
|He Daopin|Employee Supervisor|Male|47|Current|53.41|No|
|Dong Youmei|Executive Vice President,Secretary General ofStrategy Committee of theBoard and Director ofTechnology and ProductsStrategy Committee|Female|53|Current|179.05|No|
|Sun Yun|Executive CommitteeMember, Executive VicePresident, CFO|Female|47|Current|208.19|No|
|Yue Zhanqiu|Executive CommitteeMember, Senior VicePresident, CIO|Male|49|Current|135.77|No|
|Feng Liqiong|Senior Vice President, ChiefLawyer|Female|44|Current|135.29|No|
|Zhong Huifeng|Executive CommitteeMember, Senior VicePresident, CHO|Male|46|Current|132.79|No|
|Xie Zhongdong|Executive CommitteeMember, Senior VicePresident, Chief Risk Officerand Auditor General|Male|46|Current|132.62|No|
|Zhang|Executive Committee|Male|46|Current|142.94|No|

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Zhaohong||Member, Senior VicePresident, CEO of DisplayDevices Business Group||||||||||||
|Feng Qiang||Executive CommitteeMember, Senior VicePresident, CEO of HealthService Business Group||Male||40||Current||106.4||No||
|Yang Anle||Senior Vice President, ChiefInvestment Officer||Male||46||Current||153.44||No||
|Tong Guanshan||Senior Vice President, CTO||Male||48||Current||188.48||No||
|Liu Hongfeng||Vice President, Secretary ofthe Board||Male||38||Current||120.74||No||
|Jing Linfeng||Vice President, CSO andExecutive Secretary of theExecutive Committee||Male||38||Current||95.02||No||
|Ji Guoping||Independent Director||Male||69||Former||15||No||
|Yu Ning||Independent Director||Male||61||Former||6.21||No||
|Zhou Yanwen||Employee Supervisor||Male||49||Former||52.83||No||
|Li Xuezheng||Senior Vice President||Male||47||Former||97.94||No||
||Total||--||--||--||--||3,021.89||--|

Equity incentives for directors, supervisors and senior management in the Reporting Period
□ Applicable√ Not applicable
V Employees
1. Number, functions and educational backgrounds of the staff
|||
|-|-|
|Number of in-service employees of the Company|1,629|
|Number of in-service employees of main subsidiaries|46,078|
|Total number of in-service employees|49,151|
|Total number of employees with remuneration in the Reporting Period|49,151|
|Number of retirees to whom the Company or its main subsidiaries need to||
||19|
|pay retirement pension||
|Functions||
|Function|Number of employees|
|Production|26,527|
|Sales|964|
|Technicians|19,359|
|Financial|462|

BOE Technology Group Co., Ltd. Annual Report 2016
|||
|-|-|
|Administrative|300|
|Manager|1,344|
|Other|195|
|Total|49,151|
|Educational backgrounds||
|Educational background|Number of employees|
|Doctor and post-doctorate|259|
|Master|5,534|
|Bachelor|10,708|
|College|13,653|
|Technical secondary school|11,321|
|Other|7,676|
|Total|49,151|

 2.Employee’s 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’s training plan
In 2015, BOE University has been set-up, which with a vision of being international competitive and respectful Industrial University. And undertakes the strategy and service as main line, driving the development of the Company personnel trainingsystem’s further improvement and upgrade and forms training products line including four categories of leaders, managers, professional and industry personnel. Meanwhile the data of participation people and the participation period and satisfaction of the training keep continuously increasing.
4. Outsourcing
□ Applicable√ Not applicabe
BOE Technology Group Co., Ltd. Annual Report 2016 Section IX Corporate Governance
I. Basic information 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, theCompany’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 theCompany’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 andshareholders’ general meetings
As per theCompany’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held. Organizing and convening procedures of theCompany’sshareholders’ 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 ofshareholders’ general meetings, actively provided conveniences including internet voting for minorityshareholders’ 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 theCompany’s decision-making, production and operating activities by violating relevant laws, regulations and theCompany’s 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 Company adjusted the composition of special committees, further perfect the Board of Directors and special committees. Composition of the Board of Directors of the Company was in line with requirements of regulations and theCompany’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all performed their duties as stipulated in theCompany’s Articles of Association honestly, faithfully and diligently. They learned about
and kept a constant focus on theCompany’s production and operation, its financial status and influence and risks of significant events.
BOE Technology Group Co., Ltd. Annual Report 2016 They also 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 theCompany’s 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
TheCompany’s supervisors enhancedSupervisors’ ability of supervision to the compliance and legal of executing duty of the Board and Senior Executives by way of attendingshareholders’ general meetings, sitting in on board sessions, checking theCompany’s compliance with laws and finance periodically, issuing its opinions on relevant matters, etc., the Supervisory Committee supervised theCompany’s finance, duty performance of directors and senior management staffs, management and use of raised funds, and capital flows between the Company and its related parties, and safeguarded the benefits and interests of the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with theCompany’s Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the SupervisoryCommittee’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). TheCompany’s 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, theCompany’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<Articles ofassociation> , with the detailed revision as follows ,disclosed on http://www.cninfo.com.cn,
||||
|-|-|-|
|Time of Disclosure|Name of System|New Creation/Revision|
|21 May, 2016|Articles of Company|Revision|
|21 May, 2016|Rules of Procedure for Board of Directors|Revision|
|21 May, 2016|Members of Board Strategic Committee and Rules of Procedure|Revision|
|21 May, 2016|Members of Board Risk Control and Audit Committee and Rules of Procedure|Revision|
|21 May, 2016|Members of Board Nomination, Salary, Assessment Committee and Rules ofProcedure|Revision|
|21 May, 2016|Members of Executive Committee and Rules of Procedure|Revision|

BOE Technology Group Co., Ltd. Annual Report 2016
||||
|-|-|-|
|20 Aug. 2016|Articles of Company|Revision|
|1 Dec. 2016|Regulations on Capital Raising|Revision|
|1 Dec. 2016|Regulations on External Guarantee|Revision|
|1 Dec. 2016|Regulations on Transactions of Derivatives|Revision|
|1 Dec. 2016|Regulations on Financial Business|Revision|
|1 Dec. 2016|Regulations on Movement of Funds with Related Party|Revision|
|1 Dec. 2016|Regulations on External Investment|Revision|
|1 Dec. 2016|Regulations on Connected Transactions|Revision|
|1 Dec. 2016|Regulations on Information Disclosure|Revision|

Whether it exists any difference between the corporate governance and the Company Law and relevant rules of CSRC or not?□ Yes√ No
There is no difference between the corporate governance and the Company Law and relevant rules of CSRC.
II. Particulars about theCompany’s “five-separation” from the controlling shareholder in respect of business, personnel, assets, organization and financing
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. President, Vice 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
BOE Technology Group Co., Ltd. Annual Report 2016 IV Annual general meeting and special general meetings convened during the Reporting Period
1. General meetings convened during the Reporting Period
|||||||
|-|-|-|-|-|-|
|||Investor||Disclosure||
|Meeting|Type||Convened date||Index to the disclosed information|
|||participation ratio||date||
||||||Announcement on Resolutions Made|
||||||at the First Special Shareholders’|
|The First Special||||||
||Special||||General Meeting for 2016 (2016-009),|
|Shareholders’||||||
||Shareholders’|35.56%|29 Jan. 2016|30 Jan. 2016|published on China Securities Journal,|
|General Meeting for||||||
||General Meeting||||Shanghai Securities News, Securities|
|2016||||||
||||||Times and Hong Kong Ta Kung Pao as|
||||||well as http://www.cninfo.com.cn.|
||||||Announcement on Resolutions Made|
||||||at the Second Special Shareholders’|
|The Second Special||||||
||Special||||General Meeting for 2016 (2016-028),|
|Shareholders’||||||
||Shareholders’|35.75%|28 Mar. 2016|29 Mar. 2016|published on China Securities Journal,|
|General Meeting for||||||
||General Meeting||||Shanghai Securities News, Securities|
|2016||||||
||||||Times and Hong Kong Ta Kung Pao as|
||||||well as http://www.cninfo.com.cn.|
||||||Announcement on Resolutions Made|
||||||at 2015 Annual Shareholders’ General|
|2015 Annual|Annual||||Meeting (2016-045), published on|
|Shareholders’|Shareholders’|35.86%|20 May 2016|21 May 2016|China Securities Journal, Shanghai|
|General Meeting|General Meeting||||Securities News, Securities Times and|
||||||Hong Kong Ta Kung Pao as well as|
||||||http://www.cninfo.com.cn.|
||||||Announcement on Resolutions Made|
||||||at the Third Special Shareholders’|
|The Third Special||||||
||Special||||General Meeting for 2016 (2016-060),|
|Shareholders’||||||
||Shareholders’|35.77%|19 Aug. 2016|20 Aug. 2016|published on China Securities Journal,|
|General Meeting for||||||
||General Meeting||||Shanghai Securities News, Securities|
|2016||||||
||||||Times and Hong Kong Ta Kung Pao as|
||||||well as http://www.cninfo.com.cn.|
||||||Announcement on Resolutions Made|
||||||at the Forth Special Shareholders’|
|The Forth Special||||||
||Special||||General Meeting for 2016 (2016-090),|
|Shareholders’||||||
||Shareholders’|37.32%|16 Dec. 2016|17 Dec. 2016|published on China Securities Journal,|
|General Meeting for||||||
||General Meeting||||Shanghai Securities News, Securities|
|2016||||||
||||||Times and Hong Kong Ta Kung Pao as|
||||||well as http://www.cninfo.com.cn.|

BOE Technology Group Co., Ltd. Annual Report 2016 2. SpecialShareholders’ General Meeting required by the preferred stockholder with voting rights recovered
□ Applicable√ Not applicable
V Performance of independent directors in the Reporting Period
1. Attendance of independent directors in board meetings and general meetings
||||||||
|-|-|-|-|-|-|-|
|Particulars about the independent directors attending the board sessions|||||||
|||||||Failing to present|
||||Presence by||||
|Name of independent|Due presence|Presence in||Entrusted||in person for two|
||||telecommunicati||Absence (times)||
|directors|(times)|person (times)||presence (times)||consecutive|
||||on (times)||||
|||||||sessions or not|
|Lv Tingjie|13|3|10|0|0|No|
|Wang Huacheng|13|3|10|0|0|No|
|Hu Xiaolin|7|2|5|0|0|No|
|Li Xuan|4|1|3|0|0|No|
|Ji Guoping|6|2|4|0|0|No|
|Yu Ning|6|2|4|0|0|No|
|Presence of independent directors in|||||||
|||19|||||
|general meetings (times)|||||||

Explanation on failing to present in person for two consecutive sessions
N/A
2. Particulars about independent directors propose objection on relevant events
Whether independent directors propose objection on relevant events or not?
□ Yes√ No
The independent directorsdidn’t propose objection on relevant events during the Reporting Period.
3. Other explanation on performance of 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 technology, finance, law and industry. During 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
BOE Technology Group Co., Ltd. Annual Report 2016 right of the Company and the whole shareholders.
VI. Performance of the Special Committees under the Board during the 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 theCompany’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 Y2016. 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 theCompany’s internal control, financial auditing and so on.
The 2016 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 2016 annual report with KPMG Huazhen Certified Public Accountants (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 theCompany’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 held a meeting to review 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 senior management staffs, as well as the appraisal procedure for directors and senior management staffs. Reviewed the qualification of the director candidates nominated by the board of directors, the board of supervisors and qualify shareholders and searched by Nomination& Remuneration& Appraisal Committee and allowance of senior managerial staffs of the Company.
VII. Performance of 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
BOE Technology Group Co., Ltd. Annual Report 2016 VIII. Performance appraisal and incentive mechanism 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 2016 IX Internal control
1. Serious internal control defects found in the Reporting Period
□ Yes√ No
2. Self-evaluation report on internal control
||||||||
|-|-|-|-|-|-|-|
|Disclosure date of the internal control self-evaluation report||04/25/2017|||||
|||On April 25, 2017, the Company published 2016 Internal Control Self-evaluationl Report; disclosure website:|||||
|Index to the disclosed internal control self-evaluation report|||||||
|||www.cninfo.com.cn|||||
|Total assets of the evaluated entities as a percentage in the|||||||
|||96.00%|||||
|consolidated total assets|||||||
|Operating revenues of the evaluated entities as a percentage in the|||||||
|||92.00%|||||
|consolidated operating revenues|||||||
|Defect identification standards|||||||
|Type|Financial-report related||Non-financial-report related||||
||||Defect included but not limited to the following characteristics: (1) the||||
||The material fault in a financial report includes but not limited to the||||||
||||Corporate governance did not form operation mechanism and execution, a||||
||following types:||||||
||||significant decision failed to run; (2) Existing control designed for the board of||||
|Nature standard|(1) the enterprise corrects the publicized financial statements;||||||
||||directors, managers above risk of control; (3) The directors, supervisors and||||
||(2) material misstatement is found in the current financial statement,||||||
||||senior management were found fraud; (4) The audit committee and internal audit||||
||which is not found during internal control.||||||
||||institutions’ supervision of the internal control is invalid||||
||1) The internal control of a financial report (company level,||1) Quantitative standard I of defect identification standards of the non-financial||||
||consolidated statements at group level) refers to the internal control||report:||||
|Quantitative standard|designed and implemented for objectives in the financial report. The||||||
||||||The amount of direct|Significant negative|
||fault in the internal control of a financial report is classified into major|||Type|||
||||||property losses|impact|
||fault, important fault and general fault, identified with a standard||||||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||||
|-|-|-|-|-|-|-|
|directly depending on the importance of misstatement in a financial|||||||
|||||||Or punishment by the|
|report that may be caused by the fault. The potential misstated amount|||||||
|||||||government|
|shall be calculated based on the proportion of faulty sample and the|||||||
|||||||provincial level|
|||||RMB100 thousand Yuan|||
|specific identification and quantitative procedures and quantitative|||||||
|||||||(including provincial)|
|||||(including RMB100|||
|criteria at company level are as follows:|||||||
|||||||below but had no|
|||||thousand Yuan)- RMB5|||
|(1) record misstatement sample|||||||
|||||||negative influence to|
|||||million Yuan|||
|(2) confirm potential misstatement rate|||||||
|||||||the disclosure of the|
|(3) calculate potential misstated amount (=co-current accumulated|||||||
|||||||Company’s periodic|
|amount in corresponding accounting subject × potential misstatement||Common defect|||||
|||||||report|
|rate)|||||||
|||||||Or punishment by the|
|(4) generally, for misstated amount and fault grade, the following can|||||||
|||||||state government|
|be taken as reference for the standard for identifying and quantifying|||||||
|||||RMB5 million Yuan|||
|||||||but had no negative|
|the fault in the internal control of a financial report (company level):|||||||
|||||(including RMB5 million|||
|||||||influence to the|
|General fault: 0.1‰×total group assets ≤ misstated amount < 0.5‰×|||||||
|||||Yuan)|||
|||||||disclosure of the|
|total group assets; important fault: 0.5‰× total group assets ≤|||||||
|||||- RMB10 million Yuan|||
|||Significant|||||
|||||||Company’s periodic|
|misstated amount < 1‰× total group assets; major fault: misstated|||||||
|||defect||||report|
|amount ≥ 1‰× total group assets. In addition, it must be noted that|||||||
|the company with relatively small assets amount and scales may|||||||
|||||||Or public disclosed but|
|separately confirm quantitative standard in formulating a scheme for|||||||
|||||||had no negative|
|assessment and the importance level shall not be higher than the|||||||
|||||||influence to the|
|||||RMB10 million Yuan above|||
|abovementioned standard.|||||||
|||||||disclosure of the|
|2) the assessment team (process level), based on the auditing standard,|||||||
|||||||Company’s periodic|
|after confirming a proper criterion, generally applies professional||Major Defect|||||
|||||||report|
|judgment to reasonably select a percentage based on which to confirm|||||||
||2) The Quantitative standard II when the defect of internal control related to||||||
|the importance level. The following are examples of reference value:|||||||
||quantifiable assessment KPI target but unable or unable specifically use the||||||
|(1) for a profit-making enterprise, the percentage is 5% of profit before|||||||
||aforesaid methods to recognized the type of defect of internal control and the||||||
|tax or net profit after tax from current operations, or 0.5% of the total|||||||
||actual recognition procedure and standards were as following:||||||
|revenue. Under appropriate circumstances, a certain proportion of total|||||||
||||The completeness of||The completeness of some||
|assets or net assets may be adopted;|||||||
|||Type|||||
|(2) for a non-profit organization, 0.5% of the total expenses or revenue;|||Group KPI target||organization’s KPI target||

BOE Technology Group Co., Ltd. Annual Report 2016
||||||
|-|-|-|-|-|
||(3) for a mutual fund company, 0.5% of the net assets. Misstated|Common|10%≤KPI completeness of|30%≤KPI completeness of|
||amount and fault grade: General fault: 25%×importance level ≤|defect|target＜30%|target＜50%|
||misstated amount < 50%× importance level; important fault: 50%×||||
|||Significant|30%≤KPI completeness of|50%≤KPI completeness of|
||importance level ≤ misstated amount < 75%× importance level; the||||
|||defect|target＜50%|target＜80%|
||standard for quantifying and identifying the fault in internal control of a||||
|||Major|KPI completeness of|KPI completeness of|
||financial report (process level) when misstated amount ≥75%×||||
|||Defect|target≥50%|target≥80%|
||importance level shall be based on the confirmed importance level.||||
|Number of serious|||||
||0||||
|financial-report-related defects|||||
|Number of serious|||||
||0||||
|non-financial-report-related defects|||||
|Number of important|||||
||0||||
|financial-report-related defects|||||
|Nature standard|0||||

 XAuditor’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, 2016 according to the Basic Rules on||
|Enterprise Internal Control and other relevant stipulations.||
|Auditor’s report on internal control disclosed or not|Disclosed|
|Disclosure date|04/25/2017|
|Index to the disclosed auditor’s report on internal||
||The Company discloses the Audit Report on Internal Control on April 25, 2017, for details, please refer to http://www.cninfo.com.cn|
|control||
|Type of the auditor’s opinion|Standard unqualified opinion|
|Serious non-financial-report-related defects|No|

Whether any modified opinions are expressed by the CPAs firm in itsauditor’s report on theCompany’s internal control
□ Yes√ No
Whether theauditor’s report on theCompany’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 2016 Section X Corporate Bonds
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
1. Basic information of the Company bonds
|||||||||
|-|-|-|-|-|-|-|-|
||||||Bonds balance|||
|||||||Interest||
|Name|Abbr.|Code|Release date|Due date|(RMB’0,000||Way of redemption|
|||||||rate||
||||||Yuan)|||
|2016 Public offering of the||||||||
||||||||Paid for the interests|
|corporation bonds for the||||||||
||||||||by year and the|
|qualified investors of BOE|16BOE01|112358|21 Mar. 2016|21 Mar. 2021|1,000,000|3.15%||
||||||||principals once when|
|Technology Group Co.,||||||||
||||||||expired.|
|Ltd. (Phase I)||||||||
|Listed or transferred trading place of the||||||||
|||List on the SZSE.||||||
|Company bonds||||||||
|Appropriate arrangement of the||||||||
|||the qualified investors||||||
|investors||||||||
|List of the interests payment of the||||||||
|||On March 21, 2017, the Company completed the 2016 annual interest payout for the||||||
|Company bonds during the Reporting||||||||
|||qualified investors of its 2016 corporate bonds.||||||
|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’||||||
|affiliated option clause of the issuers or||sell-back option at the year-end of the third year of the current bond duration; and up to the||||||
|investors, special clauses such as the||approval quotation date of the Annual Report, the bonds were not yet needed to be||||||
|exchangeable regulations of the||executed.||||||
|Company bonds (if applicable)||||||||

2. List of the bond trustee and the rating organization
|||||||||
|-|-|-|-|-|-|-|-|
|Bond trustee:||||||||
||||Rm. 2203,|||||
||||||Zhu|||
||China||North Tower,|||||
||||||Mingqiang,|||
|Name|Securities Co.,|Office address|Shanghai|Contact||Contact number|021-68801565|
||||||Han Yong,|||
||Ltd.||Securities|||||
||||||Sheng Cheng|||
||||Plaza, 528|||||

BOE Technology Group Co., Ltd. Annual Report 2016
|||||||
|-|-|-|-|-|-|
||||Pudong Road|||
||||South,|||
||||Shanghai|||
|Rating organization executed the tracking rating of the Company bonds of the Reporting Period:||||||
||||||12/F, PICC Building, No.2 Jianwai Street,|
|Name|United Ratings Co., Ltd.|||Office address||
||||||Chaoyang District, Beijing|
|Alternation reasons, execution process and||fsNot applicable||||
|influences on the investors’ interests etc. i||||||
|there was alternation of the bond trustee||||||
|and the credit rating agencies engaged by||||||
|the Company during the Reporting Period||||||
|(if applicable)||||||

3. 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 Board|
|bonds|of Directors and Annual General Meeting of the Company.|
|Ending balance (RMB’0,000 Yuan)|2.73|
||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||

4. Rating situation of the Company bonds information
On 25 Jan. 2016, United Ratings Co., Ltd. (hereinafter referred to as “United Ratings”) issued the Analysis Report of the 2016 Corporate Bonds Credit Rating of BOE Technology Group Co., Ltd., with theissuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. The main body of the credit rating of the Company was AAA with the rating outlook was stable that reflected the rather strong debt paying ability which would basically not be influenced by the disadvantage economic environment with rather low default risks. The credit rating of the bonds of the Reporting Period was AAA, which reflected the rather high bond credit quality and the rather low credit risks.
On 24 Jun. 2016, United Ratings issued the Tracking Rating Report of the 2016 Corporate Bonds Credit Rating of BOE Technology Group Co., Ltd., with theissuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
25 Jun. 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.
BOE Technology Group Co., Ltd. Annual Report 2016 United Ratings is expected to issue the Tracking Rating Report of the 2017 Corporate Bonds of BOE Technology Group Co., Ltd. in June 2017. The Company will disclose Tracking Rating Analysis Report in http://www.cninfo.com.cn/ in time, vast investors, please pay attention to it.
5. 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 of the main business of the issuers was 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 21 March 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 21 March 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 21 March 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 21 March 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.
6. Convene situation of the bonds holders meeting during the Reporting Period
Trustee of the Company China Securities held the First Bondholders Meeting of the 2016 Corporate Bonds on cancelling repurchased shares of the Company according to laws and correspondingly decreasing the registered capital of the Company according to relevant regulations in Rules of Bondholders Meeting and Raising Specifications. The on-the-spot meeting was held at teno’clock on 1 September, 2016 in No. 12 meeting room of the Company, Xihuan Middle Road, Beijing Economic and Technological Development Zone, Beijing City. The meeting used the method of combining with on-the-spot voting, network voting and communication (post or fax) voting. The Bondholders Meeting passed the Proposal about Not Requiring the Company to Pay off Debts in Advance and to Provide Guarantee.
7. 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 on 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 theCompany’s interests when executing the relevant responsibilities of the trustee.
BOE Technology Group Co., Ltd. Annual Report 2016 8. The major accounting data and the financial indicators of the recent 2 years of the Company up the period-end
Unit:RMB’0,000 Yuan
|||||
|-|-|-|-|
|Item|2016|2015|Change rate of the same period|
||1,490,866|1,146,017|30.09%|
|EBITDA||||
|Current ratio|219.70%|220.83%|-1.13%|
|Asset-liability ratio|55.14%|48.65%|6.49%|
|Quick ratio|200.63%|197.94%|2.69%|
|Total debt ratio of EBITDA|13.18%|15.44%|-2.26%|
|Times interest earned|1.93|1.79|7.82%|
|Times interest earned of cash|7.05|9.05|-22.10%|
|Times interest earned of EBITDA|8.05|6.08|32.40%|
|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 exceeded30%
√ Applicable□ Not applicable
EBITDA increased of31.41% over the same period of last year, which mainly due to increase in net profit this year of Y2016; 9. List of the interest payment of other bonds and bonds financing instruments during the Reporting Period No such situation of the Company during the Reporting Period.
10. List of the acquired bank credit lines, usage and the repayment of the bank loans
The operation and reputation of the Company was favourable and the profitability as well as the debt payment ability of the Company was strong as well as the Company maintained the long-term cooperative partnerships with China Development Bank, Ping An Bank and Industrial and Commercial Bank. Up to 31 Dec. 2016, the total amount of the credit line of the major cooperative banks with the Company was of RMB29.20 billion Yuan with the used credit line of RMB5.9 billion Yuan and the unused amount of which was of RMB23.3 billion Yuan.
11. 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.
12. Significant events occurred during the Reporting Period
Up to 31 Dec. 2016, the audited balance of loans (consolidated statement) of the Company is RMB 68.443 billion Yuan, increasing
BOE Technology Group Co., Ltd. Annual Report 2016 RMB 24.726 billion Yuan compared with RMB 43.717 billion Yuan of audited balance of loans (consolidated statement) of the Company on 30 Dec. 2015. The increased amount accounts for31.56% in RMB 78.351 billion of audited net asset (consolidated statement) on 31 Dec. 2015. The increased amount is within the limit which is approved in annual shareholders meeting, mainly comprising newly issuing corporate bonds, entrusting loans, borrowing from bank etc, required by project operation of the Company and within range of normal business activities.
The above increased loans do not have significant influence on debt paying ability of the Company.
The Company has disclosed on December 3, 2016 the announcement about accumulative newly increased loans in the year in http://www.cninfo.com.cn/.
13. Whether there was guarantor of the Company bonds
□ Yes√ No
BOE Technology Group Co., Ltd. Annual Report 2016 Section XI Financial Report
I. Audit Report
|||
|-|-|
|Type of audit opinion|Standard unqualified audit opinion|
|Signature date of audit report|21 Apr. 2017|
|Name of the audit agency|KPMG Huazhen Certified Public Accountants (LLP)|
|Reference number of audit report|KPMGHZSZ No. 1701961|
|Name of CPA|Su Xing, Wang Ting|

AUDITORS’ REPORT
毕马威华振审字第1701961号 All Shareholders of BOE Technology Group Company Limited:
We have audited the accompanying financial statements of BOE Technology Group Company Limited (“the Company”), which comprise the consolidated balance sheet and balance sheet as at 31 December 2016, the consolidated income statement and income statement, the consolidated cash flow statement and cash flow statement, the consolidated statement of changes in
shareholders’ equity and statement of changes inshareholders’ equity for the year then ended, and notes to the financial statements.
Management’s Responsibility for the Financial Statements
TheCompany’s management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing these financial statements in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’s Republic of China, and fairly presenting them; (2) designing, implementing and maintaining internal control which is necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants. Those standards require that we comply with China Code of Ethics for Certified
Public Accountants, and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
BOE Technology Group Co., Ltd. Annual Report 2016 An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on theauditors’
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to theentity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position and financial position of the Company as at 31 December 2016, and the
consolidated financial performance and financial performance and the consolidated cash flows and cash flows of the Company for the year then ended in accordance with the requirements of
Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’s Republic of China.
KPMG Huazhen LLP Certified Public Accountants
Registered in thePeople’s Republic of China Su Xing
Beijing, China Wang Ting
21 April 2017
BOE Technology Group Co., Ltd. Annual Report 2016 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 2016 Section XII Documents Available for Reference
Note: The Company shall disclose a list of the documents available for reference, which is as follows:
(I) The financial statements with the signatures and seals of the company principal, the chairman of the Executive Committee (the Chief Executive Officer), the accounting head for this Report and the head of the accounting organ (the accounting head);
(II) The original of theAuditor’s Report with the seal of the CPAs firm and the signatures& seals of the certified public accountants; and
(III) The texts of all theCompany’s documents ever disclosed on http://www. cninfo.com.cn in the Reporting Period, and the originals of the public announcements.
The above documents available for reference can be found at the BoardSecretary’s Office.
Chairman of the Board: Mr. Wang Dongsheng (signature) Date of the Board of Directors approving to report: 21 Apr 2017
BOE Technology Group Co., Ltd. Annual Report 2016 BOE Technology Group Company Limited
ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2016 TO 31 DECEMBER 2016
IF THERE IS ANY CONFLICT OF MEANING BETWEEN THE CHINESE VERSION AND ENGLISH TRANSLATION, THE CHINESE VERSION WILL PREVAIL
v
AUDITORS’ REPORT
毕马威华振审字第1701961号 All Shareholders of BOE Technology Group Company Limited:
We have audited the accompanying financial statements of BOE Technology Group
Company Limited (“the Company”), which comprise the consolidated balance sheet and
balance sheet as at 31 December 2016, the consolidated income statement and income
statement, the consolidated cash flow statement and cash flow statement, the consolidated statement of changes inshareholders’ equity and statement of changes inshareholders’
equity for the year then ended, and notes to the financial statements.
Management’s Responsibility for the Financial Statements
TheCompany’s management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing these financial statements in accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance of thePeople’s Republic of China, and fairly presenting them; (2) designing,
implementing and maintaining internal control which is necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing for Certified Public Accountants. Those standards require that we comply with China Code of Ethics for
Certified Public Accountants, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditors’ judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to theentity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
AUDITORS’ REPORT (continued)
毕马威华振审字第1701961号 Opinion
In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position and financial position of the Company as at 31 December 2016, and the consolidated financial performance and financial performance and the consolidated cash flows and cash flows of the Company for the year then ended in accordance with the
requirements of Accounting Standards for Business Enterprises issued by the Ministry of
Finance of thePeople’s Republic of China.
KPMG Huazhen LLP Certified Public Accountants
Registered in thePeople’s Republic of
China
Su Xing
Beijing, China Wang Ting
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 Assets
Current assets
Cash at bank and on hand V.1 58,152,817,223 38,866,861,836 Bills receivable V.2 1,369,836,650 362,053,092 Accounts receivable V.3 16,191,791,617 8,192,514,361 Prepayments V.4 708,511,473 226,447,504 Interest receivable 125,141,573 194,518,278 Other receivables V.5 903,069,416 593,329,847 Inventories V.6 7,833,138,532 6,609,406,228 Non-current assets due within
one year 66,321,715 - Other current assets V.7 5,691,200,226 8,712,017,517 Total current assets 91,041,828,425 63,757,148,663 ---------------------- ---------------------- Non-current assets
Available-for-sale financial assets V.8 622,502,556 454,096,246 Long-term equity investments V.9 1,356,111,395 1,260,302,959 Investment properties V.10 1,192,932,896 1,227,099,427 Fixed assets V.11 69,947,586,967 63,565,099,405 Construction in progress V.12 33,008,248,720 18,645,461,692 Intangible assets V.13 3,136,873,387 2,679,239,255 Goodwill V.14 197,963,688 197,963,688 Long-term deferred expenses V.15 344,891,227 341,526,213 Deferred tax assets V.16 146,538,565 117,105,220 Other non-current assets V.17 4,139,533,216 347,851,674 Total non-current assets 114,093,182,617 88,835,745,779 ---------------------- ---------------------- Total assets 205,135,011,042 152,592,894,442 The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 Liabilities andshareholders’ equity
Current liabilities
Short-term loans V.18 4,916,965,507 5,091,974,830 Bills payable V.19 640,262,461 343,277,037 Accounts payable V.20 13,835,615,665 9,849,935,031 Advances from customers V.21 548,942,714 386,538,903 Employee benefits payable V.22 1,542,852,266 1,092,103,138 Taxes payable V.23 656,351,894 224,415,009 Interest payable 676,358,748 348,173,849 Dividends payable V.24 9,651,170 9,651,170 Other payables V.25 14,395,525,248 8,864,929,878 Non-current liabilities due within
one year V.26 3,684,236,935 2,283,535,113 Other current liabilities V.27 532,983,474 376,906,959 Total current liabilities 41,439,746,082 28,871,440,917 ---------------------- ---------------------- Non-current liabilities
Long-term loans V.28 49,885,166,211 36,341,198,145 Bonds payable V.29 9,956,719,508 - Long-term payables V.30 1,261,446,565 - Provisions V.31 16,457,010 16,457,010 Deferred income V.32 2,494,122,929 2,406,244,676 Deferred tax liabilities V.16 448,625,054 435,880,215 Other non-current liabilities V.33 7,616,672,523 6,170,843,660 Total non-current liabilities 71,679,209,800 45,370,623,706 ---------------------- ---------------------- Total liabilities 113,118,955,882 74,242,064,623 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 Liabilities andshareholders’
equity (continued)
Shareholders’ equity
Share capital V.34 35,153,067,743 35,153,067,743 Capital reserve V.35 39,031,357,529 39,018,900,467 Less: Treasury shares V.36 314,350,824 - Other comprehensive income V.37 75,718,703 90,153,009 Surplus reserve V.38 743,139,855 592,242,059 Retained earnings V.39 4,011,055,487 2,630,912,286 Total equity attributable to
shareholders of the Company 78,699,988,493 77,485,275,564 ---------------------- ---------------------- Non-controlling interests 13,316,066,667 865,554,255 Totalshareholders’ equity 92,016,055,160 78,350,829,819 ---------------------- ---------------------- Total liabilities andshareholders’ equity 205,135,011,042 152,592,894,442 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 Assets
Current assets
Cash at bank and on hand XIV.1 7,649,349,412 3,327,934,443 Bills receivable 200,197,354 - Accounts receivable XIV.2 45,853,859 59,397,930 Prepayments 7,462,061 6,825,464 Interest receivable 21,525,261 52,437,366 Dividends receivable XIV.3 1,007,950,479 90,941,079 Other receivables XIV.4 1,629,176,234 1,281,026,259 Inventories 12,069,865 10,846,799 Other current assets XIV.5 25,504,074 109,578,393 Total current assets 10,599,088,599 4,938,987,733 ---------------------- ---------------------- Non-current assets
Available-for-sale financial assets XIV.6 177,166,908 176,683,497 Long-term equity investments XIV.7 99,918,451,449 77,551,596,817 Investment properties 164,540,581 169,723,827 Fixed assets 862,860,227 846,738,969 Construction in progress 468,494,838 160,409,258 Intangible assets 624,007,700 638,764,378 Long-term deferred expenses 98,745,001 104,917,711 Deferred tax assets XIV.8 47,679,645 - Other non-current assets 4,010,146,153 2,551,631,765 Total non-current assets 106,372,092,502 82,200,466,222 ---------------------- ---------------------- Total assets 116,971,181,101 87,139,453,955 The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 Liabilities andshareholders’ equity
Current liabilities
Accounts payable 34,015,337 13,975,839 Advances from customers 1,093,593,891 3,439,149 Employee benefits payable XIV.9 169,917,103 111,350,496 Taxes payable 80,897,741 34,371,553 Interest payable 281,124,448 5,091,297 Dividends payable 6,451,170 6,451,170 Other payables XIV.10 10,791,929,737 7,507,464,657 Non-current liabilities due
within one year 100,000,000 670,000,000 Total current liabilities 12,557,929,427 8,352,144,161 ---------------------- ---------------------- Non-current liabilities
Long-term loans XIV.11 18,922,400,000 4,140,720,000 Bonds payable V.29 9,956,719,508 - Deferred income XIV.12 148,987,694 151,809,223 Total non-current liabilities 29,028,107,202 4,292,529,223 ---------------------- ---------------------- Total liabilities 41,586,036,629 12,644,673,384 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 Liabilities andshareholders’
equity (continued)
Shareholders’ equity
Share capital V.34 35,153,067,743 35,153,067,743 Capital reserve XIV.13 38,157,600,408 38,152,869,635 Less: Treasury shares V.36 314,350,824 - Other comprehensive income XIV.14 152,323,461 109,786,796 Surplus reserve V.38 743,139,855 592,242,059 Retained earnings XIV.15 1,493,363,829 486,814,338 Totalshareholders’ equity 75,385,144,472 74,494,780,571 ---------------------- ---------------------- Total liabilities andshareholders’ equity 116,971,181,101 87,139,453,955 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 I. Operating income V.40 68,895,658,963 48,623,732,312 II. Less: Operating costs V.40 56,585,696,091 38,755,090,666 Taxes and surcharges V.41 459,263,933 275,798,416 Selling and distribution expenses V.42 1,984,361,921 1,290,038,686 General and administrative
expenses V.43 5,618,443,652 4,675,778,199 Financial expenses V.44 2,299,116,897 1,496,013,180 Impairment losses V.45 1,594,488,553 1,364,500,152 Add: Investment income V.46 151,006,609 187,191,686 Including: (Loss) / income from
investments in
associates (15,121,347) 4,748,739 III. Operating profit 505,294,525 953,704,699 Add: Non-operating income V.47 2,085,966,318 1,082,717,233 Including: Gains from disposal
of non-current
assets 11,206,342 3,026,374 Less: Non-operating expenses V.48 78,861,768 23,178,815 Including: Losses from disposal
of non-current
assets 64,068,631 11,376,698 IV. Profit before income tax 2,512,399,075 2,013,243,117 Less: Income tax expenses V.49 467,228,316 375,133,185 V. Net profit for the year 2,045,170,759 1,638,109,932 ---------------------- ---------------------- Attributable to:
Shareholders of the Company 1,882,571,674 1,636,270,488 Non-controlling interests 162,599,085 1,839,444 The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 VI. Other comprehensive income,
net of tax V.37 32,059,196 49,447,550 Other comprehensive income
(net of tax) attributable to
shareholders of the Company (14,434,306) 49,522,398 Items that may be reclassified to profit
or loss:
1 Share of other comprehensive
income of the equity method
investments 42,053,252 26,510,264 2 Gains or losses arising from
changes in fair value of
available-for-sale financial
assets (16,836,007) 35,188,234 3 Translation differences arising
from translation of foreign
currency financial statements (39,651,551) (12,176,100) Other comprehensive income (net of
tax) attributable to non-controlling
interests 46,493,502 (74,848) ---------------------- ---------------------- VII. Total comprehensive income for the
year 2,077,229,955 1,687,557,482 Attributable to:
Shareholders of the Company 1,868,137,368 1,685,792,886 Non-controlling interests 209,092,587 1,764,596 VIII. Earnings per share
(1) Basic earnings per share V.50 0.054 0.046 (2) Diluted earnings per share V.50 0.054 0.046 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Income statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 I. Operating income XIV.16 1,890,892,555 1,425,473,680 II. Less: Operating costs 73,853,601 128,651,008 Taxes and surcharges XIV.17 21,040,511 9,972,879 Selling and distribution
expenses 2,769,587 3,014,862 General and administrative
expenses 1,393,918,778 1,016,795,024 Financial expenses /
(net financial income) XIV.18 211,354,173 (91,691,634) Impairment losses / (reversal) 500,604 (112,708) Add: Investment income XIV.19 1,111,742,988 459,538,688 Including: (Loss) / income from
investments in
associates (14,730,259) 4,748,739 III. Operating profit 1,299,198,289 818,382,937 Add: Non-operating income XIV.20 260,303,997 94,708,410 Including: Gains from disposal
of non-current
assets 76,084 103,499 Less: Non-operating expenses XIV.21 1,730,874 5,010,447 Including: Losses from disposal
of non-
current assets 96,766 8,690 IV. Profit before income tax 1,557,771,412 908,080,900 Less: Income tax expenses XIV.22 48,793,448 22,348,918 V. Net profit 1,508,977,964 885,731,982 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Income statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 VI. Other comprehensive income,
net of tax XIV.14 42,536,665 37,135,441 Items that may be reclassified to
profit or loss:
1 Share of other comprehensive
income of the equity method
investments 42,053,252 26,510,264 2 Gains arising from changes in
fair value of available-for-sale
financial assets 483,413 10,625,177 VII. Total comprehensive income for the
Year 1,551,514,629 922,867,423 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 68,853,018,038 50,577,270,660 Refund of taxes 3,917,650,651 3,288,689,442 Proceeds from other operating
activities 840,215,406 780,349,439 Sub-total of cash inflows 73,610,884,095 54,646,309,541 ---------------------- ---------------------- Payment for goods and services (55,859,347,637) (36,746,483,055) Payment to and for employees (6,063,846,083) (5,127,957,029) Payment of various taxes (604,705,988) (1,094,353,613) Payment for other operating activities (1,009,697,267) (1,184,130,399) Sub-total of cash outflows (63,537,596,975) (44,152,924,096) ---------------------- ---------------------- Net cash inflow from operating
activities V.51(1) 10,073,287,120 10,493,385,445 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 II. Cash flows from investing activities:
Proceeds from disposal of
investments 31,157,802,962 12,515,000,000 Investment returns received 149,197,609 184,586,410 Net proceeds from disposal of fixed
assets, intangible assets and
other long-term assets 214,137,335 25,777,766 Cash received from acquisition of
subsidiaries V.51(2) 2,403,114,462 - Proceeds from government grants
related to assets 47,729,081 223,654,697 Proceeds from other investing
activities 714,771,214 808,295,739 Sub-total of cash inflows 34,686,752,663 13,757,314,612 ---------------------- ---------------------- Payment for acquisition of fixed
assets, intangible assets and
other long-term assets (30,702,614,717) (18,607,146,447) Payment for acquisition of
investments (28,468,266,548) (14,339,727,658) Net payment for acquisition of
subsidiaries V.51(2) - (404,844,397) Net payment for disposal of
subsidiaries V.51(2) (10,802,558) - Sub-total of cash outflows (59,181,683,823) (33,351,718,502) ---------------------- ---------------------- Net cash outflow from investing
activities (24,494,931,160) (19,594,403,890) ---------------------- ---------------------- III. Cash flows from financing activities:
Proceeds from investors 4,500,000,000 - Including: Proceeds from
non-controlling
shareholders of
subsidiaries 4,500,000,000 - Proceeds from borrowings 38,124,199,131 18,383,259,217 Net change of cash pledged for
borrowing - 316,363,688 Proceeds from other financing
activities 1,492,848,996 2,541,849,548 Sub-total of cash inflows 44,117,048,127 21,241,472,453 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 III. Cash flows from financing activities:
(continued)
Repayments of borrowings (15,306,109,721) (11,506,938,478) Payment for dividends or interest (2,273,801,245) (1,574,606,575) Including: Dividends paid to non-
controlling shareholders
of subsidiaries (8,732,530) (200,000) Net change of cash pledged for
borrowing (17,853,536) - Payment for other financing activities (378,190,824) (31,000,000) Sub-total of cash outflows (17,975,955,326) (13,112,545,053) ---------------------- ---------------------- Net cash inflow from financing
activities 26,141,092,801 8,128,927,400 ---------------------- ---------------------- IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 1,452,623,410 650,122,102 ---------------------- ---------------------- V. Net increase / (decrease) in cash
and cash equivalents V.51(1) 13,172,072,171 (321,968,943) Add: Cash and cash equivalents at
the beginning of the year 36,182,738,217 36,504,707,160 VI. Cash and cash equivalents at the
end of the year V.51(3) 49,354,810,388 36,182,738,217 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016 2015 I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 2,674,977,287 1,299,166,255 Proceeds from other operating
activities 3,981,911,784 1,182,132,246 Sub-total of cash inflows 6,656,889,071 2,481,298,501 ---------------------- ---------------------- Payment for goods and services (464,475,338) (520,099,530) Payment to and for employees (514,664,760) (487,897,643) Payment of various taxes (79,647,917) (41,607,593) Payment for other operating
activities (158,578,872) (125,664,468) Sub-total of cash outflows (1,217,366,887) (1,175,269,234) ---------------------- ---------------------- Net cash inflow from operating
activities XIV.23(1) 5,439,522,184 1,306,029,267 ---------------------- ---------------------- II. Cash flows from investing activities:
Proceeds from disposal of
investments 8,236,000,000 - Investment returns received 128,126,936 454,989,949 Net proceeds from disposal of fixed
assets 775,023 1,282,071 Proceeds from other investing
activities 934,888,042 827,665,579 Sub-total of cash inflows 9,299,790,001 1,283,937,599 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
2016 2015 II. Cash flows from investing activities:
(continued)
Payment for acquisition of fixed
assets, intangible assets and
other long-term assets (848,208,277) (315,534,306) Payment for acquisition of
investments (30,995,624,582) (9,185,582,156) Net payment for acquisition of
subsidiaries - (759,738,513) Payment for other investing
activities (2,040,000,000) (3,166,519,191) Sub-total of cash outflows (33,883,832,859) (13,427,374,166) ---------------------- ---------------------- Net cash outflow from investing
activities (24,584,042,858) (12,143,436,567) ---------------------- ---------------------- III. Cash flows from financing activities:
Proceeds from borrowings 24,830,951,698 4,692,300,200 Proceeds from other financing
activities 1,280,000,000 3,529,295,099 Sub-total of cash inflows 26,110,951,698 8,221,595,299 ---------------------- ---------------------- Repayments of borrowings (670,000,000) (636,550,000) Payment for interest (511,706,064) (391,739,316) Payment for other financing
activities (1,584,350,197) (1,700,000,000) Sub-total of cash outflows (2,766,056,261) (2,728,289,316) ---------------------- ---------------------- Net cash inflow from financing
activities 23,344,895,437 5,493,305,983 ---------------------- ---------------------- The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016 2015 IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 26,110,206 (5,559,829) ---------------------- ---------------------- V. Net increase / (decrease) in cash
and cash equivalents XIV.23(1) 4,226,484,969 (5,349,661,146) Add: Cash and cash equivalents
at the beginning of the
year 3,322,215,443 8,671,876,589 VI. Cash and cash equivalents
at the end of the year XIV.23(2) 7,548,700,412 3,322,215,443 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp) Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes inshareholders’ 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 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes inshareholders’ equity for the year ended 31 December 2015
(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 35,289,637,574 39,084,393,441 198,004,581 40,630,611 503,668,861 1,434,745,673 76,155,071,579 804,334,640 76,959,406,219 II. Changes in equity for the year
1. Total comprehensive
income - - - 49,522,398 - 1,636,270,488 1,685,792,886 1,764,596 1,687,557,482 2.Shareholders’ contributions
and decrease of capital
(1) Acquisitions of
subsidiaries’
minorities
interests - 596,438 - - - - 596,438 61,255,019 61,851,457 (2) Repurchase of
treasury shares - - 79,051,194 - - - (79,051,194) - (79,051,194) (3) Written off treasury
shares (136,569,831) (140,485,944) (277,055,775) - - - - - - 3. Appropriation of profits V.39
(1) Appropriation for
surplus reserve - - - - 88,573,198 (88,573,198) - - - (2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677) (1,800,000) (353,330,677) 4. Others - 74,396,532 - - - - 74,396,532 - 74,396,532 III. Balance at the end 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 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Statement of changes inshareholders’ 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 3 5,153,067,743 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 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Statement of changes inshareholders’ equity for the year ended 31 December 2015
(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 3 5,289,637,574 38,218,959,047 198,004,581 72,651,355 503,668,861 41,186,231 73,928,098,487 II. Changes in equity for the year
1. Total comprehensive income - - - 37,135,441 - 885,731,982 922,867,423 2.Shareholders’ contributions
and decrease of capital
(1) Repurchase of treasury
shares - - 79,051,194 - - - (79,051,194) (2) Written off treasury shares (136,569,831) (140,485,944) (277,055,775) - - - - 3. Appropriation of profits
(1) Appropriation for surplus
reserve - - - - 88,573,198 (88,573,198) - (2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677) 4. Others - 74,396,532 - - - - 74,396,532 III. Balance at the end of the year 35,153,067,743 38,152,869,635 - 109,786,796 592,242,059 486,814,338 74,494,780,571 These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 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 theCompany’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 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 theGroup’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 2016, 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 2016 4. Functional currency
TheCompany’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 theCompany’s subsidiaries have functional currencies that are different from theCompany’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 theacquirer’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) theacquirer’s interest in the fair value at the acquisition date of theacquiree’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. Theacquiree’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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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 theowners’ equity under equity accounting, are transferred to investment income in the period in which the acquisition occurs (see Note III.12(2)(b)).
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 withinshareholders’ 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-controllingshareholders’ share of the openingowners’ 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 theCompany’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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (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, thesubsidiary’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.
(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 thesubsidiary’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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from asubsidiary’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 thesubsidiary’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 withdraw 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.
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”, 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 inshareholders’ 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, and share capital, etc.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (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.
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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 - 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)). - 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 theGroup’s contractual rights to the cash flows from the financial asset expire or if the Group transfers substantially all the risks and rewards of ownership of the financial asset to another party.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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 inshareholders’ 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.
(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 of50%) or prolonged decline in the fair value (i.e. a decline persisting for nine months) of 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 theasset’s carrying amount
exceeding what the amortised cost would have been had no impairment loss been recognised in prior years.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 - 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 inshareholders’ equity is reclassified to profit or loss even though the financial asset has not been derecognised.
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 inshareholders’ equity. Consideration and transaction costs paid by the Company for repurchasing self-issued equity instruments are deducted fromshareholders’ 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 undershareholders’ 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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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.
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. 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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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 will not result in theasset’s carrying amount exceeding what the amortised cost
would have been determined had no impairment loss been recognised in prior years. 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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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.
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 theCompany’s share of the carrying amount of thesubsidiary’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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In theCompany’s separate financial statements, long-term equity investments in subsidiaries are accounted for using the cost method for subsequent measurement. 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.
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 theGroup’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 theGroup’s
interest in the fair value of theinvestee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at cost. Where the initial
investment cost is less than theGroup’s interest in the fair value of theinvestee’s identifiable net assets at the date of acquisition, the investment is initially
recognised at theinvestor’s share of the fair value of theinvestee’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 that amount attributable to the Group. Changes in theGroup’s share of theinvestee’sowners’ equity, other than those arising from theinvestee’s net profit or loss, other comprehensive income or profit distribution (referred to as “other
changes inowners’ equity”), is recognised directly in theGroup’s equity, and the carrying amount of the investment is adjusted accordingly.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 - In calculating its share of theinvestee’s net profits or losses, other comprehensive income and other changes inowners’ 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 theinvestee’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 theGroup’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.
- 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 theGroup’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 recognised.
For theGroup’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 theinvestee’s related activities unilaterally;
- Whether strategic decisions relating to theinvestee’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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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% 2% -3.1% Buildings 25 - 40 years 3% -10% 2.3% -3.9% 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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (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% -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.
(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).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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 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. 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).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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.
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 3 - 10 years
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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
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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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.
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 theGroup’s ordinary activities when the inflows result in increase inshareholders’ 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:
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (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 Company determines different trading methods with the buyer in the sales
contract, determines the timing of the transfer of significant risks and rewards based on the trading methods, and recognised revenue accordingly.
(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 based on the progress of work performed.
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 recognised.
(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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (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 thePeople’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 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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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. A government grant related to an asset is recognised initially as deferred income and amortised to profit or loss on a straight-line basis over the useful life of the asset. A grant that compensates the Group for expenses to be incurred in the subsequent periods is recognised initially as deferred income and recognised in profit or loss in the same periods in which the expenses are recognised. A grant that compensates the Group for expenses incurred is recognised in profit or loss immediately.
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 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 2016 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 theGroup’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 2016 (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).
28. Assets held for sale and discontinued operations
(1) Assets held for sale
A non-current asset (or disposal group, the same below) is accounted for as held for sale when all the following criteria are met. 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.
- The assets must be available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such assets;
- The Group has decided to dispose the assets;
- The Group has signed an irrevocable transfer agreement with the transferee, and the transfer is to be completed within one year.
Non-current assets held for sale are 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). Any excess of the carrying amount over the fair value (see Note III.21) less costs to sell is recognised as an impairment loss.
Once classified as held for sale, fixed assets, intangible assets and investment
properties previously accounted for using the cost model are no longer depreciated or amortised, and long-term equity investments previously accounted for using the equity method will no longer be equity accounted.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Discontinued operations
The Group classifies a component that either has been disposed of or is classified as held for sale, and is separately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions as a discontinued operation. - It represents a separate major line of business or geographical area of operations; - It is part of a single co-ordinated plan to dispose of a separate major line of
business or geographical area of operations;
- It is a subsidiary acquired exclusively with a view to resale.
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 theGroup’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.
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.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 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 XIV. 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:
Note V. 33– Convertible debt and equity investment with redemption provisions terms are categorised as financial liabilities.
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 taxable 6%,11% services revenue, based on tax laws. The remaining 13%,17% 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 and Based on business tax and VAT paid, and VAT 3%,2% local education surcharge exemption and offset for the period
Corporate income tax Based on taxable profits 15% -25%
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2. Corporate income tax
The income tax rate applicable to the Company for the year is15% (2015:15%). Pursuant to the Corporate Income Tax Law of thePeople’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 of15%. On 30 October 2014, the Company renewed the High-tech Enterprise Certificate No. GR201411003041, 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 of15% 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 is25% other than the following subsidiaries and the overseas subsidiaries which subject to the local income tax rate.
The subsidiaries that are entitled to preferential tax treatments are as follows:
Preferential
Company name rate Reason Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) 15% High-tech Enterprise Certificate Chengdu BOE Optoelectronics Technology Co., Ltd (Chengdu
Optoelectronics ) 15% High-tech Enterprise Certificate Hefei BOE Optoelectronics Technology Co., Ltd.(Hefei BOE) 15% High-tech Enterprise Certificate Beijing BOE Display Technology Co., Ltd. (BOE Display) 15% High-tech Enterprise Certificate Hefei Xinsheng Optoelectronics Technology Co., Ltd.
(Hefei Xinsheng) 15% High-tech Enterprise Certificate Ordos Yuansheng Optoelectronics Co., Ltd.
(Yuansheng Optoelectronics) 15% High-tech Enterprise Certificate Encouraged enterprise in Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) 15% Western Regions BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei) 15% High-tech Enterprise Certificate BOE Optical Science and technology Co., Ltd (Optical Technology) 15% High-tech Enterprise Certificate BOE Semi-conductor Co., Ltd. (BOE Semiconductor) 15% High-tech Enterprise Certificate Beijing BOE Special Display Technology Co., Ltd. (Special Display) 15% High-tech Enterprise Certificate Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) 15% High-tech Enterprise Certificate Beijing ASAHI Electronic Materials Co., Ltd. (ASAHI Materials) 15% High-tech Enterprise Certificate Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) 15% High-tech Enterprise Certificate Beijing BOE Energy Technology Co., Ltd. (BOE Energy) 15% High-tech Enterprise Certificate Beijing BOE multimedia Technology Co., Ltd. (BOE multimedia) 15% High-tech Enterprise Certificate Chongqing BOE obtained the tax notice (Yu Liang Jiang Di Shui Shui Shui Tong[2017] No.445) released on 10 April 2017 by the tax office of SHUITU Technology Industiral Development Zone under the local tax bureau in Liangjiang New Area, Chongqing. According to the tax notice, Chongqing BOE is recognised as the
enterprise located in west areas and encouraged by the government and so qualified to pay corporate income tax at the rate of15%. Any changes in its qualification for tax reduction or exemption shall be reported to tax authorities within 15 days.
Enterprises which no longer meet the tax reduction or exemption criteria shall pay taxes in accordance with laws and tax authorities shall recover tax in arrears if
enterprises fail to do so.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 V. Notes to the consolidated financial statements
1. Cash at bank and on hand
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents Cash on hand
RMB 429,678 75,913 USD 8,410 6.9370 58,337 9,416 6.4936 61,144 HKD 56,545 0.8945 50,579 9,665 0.8378 8,097 JPY 283,063 0.0596 16,870 53,566 0.0539 2,887 Korean Won 513,831 0.0058 2,977 513,831 0.0055 2,834 Other foreign
currencies 149,355 102,725 Sub-total 707,796 253,600 --------------- --------------- Bank deposit
RMB 20,283,958,386 20,699,085,451 USD 4,019,966,852 6.9370 27,886,510,065 2,378,004,298 6.4936 15,441,809,024 HKD 66,025,420 0.8945 59,059,739 1,215,123 0.8378 1,018,030 JPY 14,943,519,516 0.0596 890,504,565 512,240,885 0.0539 27,602,245 Korean Won 531,008,311 0.0058 3,057,014 806,855,564 0.0055 4,437,706 Other foreign
currencies 47,526,900 8,532,161 Sub-total 49,170,616,669 36,182,484,617 --------------- --------------- Other monetary funds
RMB 7,598,180,199 2,386,293,475 USD 186,376,585 6.9370 1,292,894,367 43,341,957 6.4936 281,445,337 HKD 100,480,138 0.8945 89,879,483 14,039,835 0.8378 11,762,574 JPY 9,040,109 0.0596 538,709 85,795,505 0.0539 4,622,233 Sub-total 8,981,492,758 2,684,123,619 --------------- --------------- Total 58,152,817,223 38,866,861,836 Including: Total overseas deposits were equivalent to RMB 858,689,619 (2015: RMB 540,239,745).
As at 31 December 2016, other monetary funds were pledged by the Group
amounting to USD 17,428,071 (2015: USD 36,550,000) for short-term loans, and RMB 120,217,226 and USD 11,000,000 (2015: RMB 211,842,560) were pledged for long-term loans. The rest of other monetary funds, amounting to RMB
8,480,584,080 (2015: RMB 2,234,939,979), were the deposits in commercial banks as security.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2. Bills receivable
(1) Classification of bills receivable:
Item 2016 2015 Bank acceptance bills 1,358,736,650 353,803,012 Commercial acceptance bills 11,100,000 8,250,080 Total 1,369,836,650 362,053,092 All of the above bills are due within one year.
As at 31 December 2016, the pledged bills of the Group amounted to RMB
103,352,825 (2015: RMB 4,227,148).
(2) Outstanding endorsed or discounted bills that have not matured at the end of the year:
Amount Amount derecognised at not-derecognised Item year end at year end Bank acceptance bills 15,670,176 450,713,336 Commercial acceptance bills - - Total 15,670,176 450,713,336 For the year ended 31 December 2016, there was no amount transferred to accounts receivable from bills receivable due to non-performance of the issuers of the Group (2015: nil).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 3. Accounts receivable
(1) TheGroup’s accounts receivable by customer type:
Item 2016 2015 Amounts due from related parties 32,089,791 98,545,751 Amounts due from other customers 16,191,073,637 8,145,292,525 Sub-total 16,223,163,428 8,243,838,276 Less: provision for bad and doubtful
debts 31,371,811 51,323,915 Total 16,191,791,617 8,192,514,361 (2) TheGroup’s accounts receivable by currency type:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents RMB 6,042,307,916 3,315,181,701 USD 1,436,590,148 6.9370 9,965,625,859 758,910,996 6.4936 4,928,064,432 JPY 3,006,320,604 0.0596 179,176,708 - 0.0539 - Other foreign currencies 36,052,945 592,143 Sub-total 16,223,163,428 8,243,838,276 Less: provision for bad
and doubtful
debts 31,371,811 51,323,915 Total 16,191,791,617 8,192,514,361 (3) The ageing analysis of accounts receivable is as follows:
2016 2015 Within 1 year (inclusive) 16,154,541,771 8,150,955,522 1 to 2 years (inclusive) 30,205,486 60,990,488 2 to 3 years (inclusive) 30,336,028 10,843,363 Over 3 years 8,080,143 21,048,903 Sub-total 16,223,163,428 8,243,838,276 Less: Provision for bad and doubtful
loans 31,371,811 51,323,915 Total 16,191,791,617 8,192,514,361 The ageing is counted starting from the date when accounts receivable are
recognised.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) TheGroup’s accounts receivable by category
2016 2015
Provision for bad Provision for bad
Category Book value and doubtful debts Book value and doubtful debts
Percentage Percentage Carrying Percentage Percentage Carrying Amount (%) Amount (%) amount Amount (%) Amount (%) amount Collectively assessed for impairment
based on credit risk characteristics* 15,857,746,391 98% - - 15,857,746,391 8,175,630,706 99% - - 8,175,630,706 Individually insignificant but assessed
for impairment individually 365,417,037 2% 31,371,811 9% 334,045,226 68,207,570 1% 51,323,915 75% 16,883,655 Total 16,223,163,428 100% 31,371,811 0% 1 6,191,791,617 8,243,838,276 100% 51,323,915 1% 8,192,514,361Note*: This category includes accounts receivable which have been individually assessed but not impaired.
The Group has no individually significant accounts receivable and individually for impairment this year (2015: nil).
As at 31 December 2016, the Group collectively assessed accounts receivable having been individually assessed but not impaired for impairment and did not recognise impairment loss against this amount of accounts receivable (2015: nil).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (5) Additions, recoveries or reversals of provision for bad and doubtful debts during the year:
2016 2015 Balance at the beginning
of the year 51,323,915 58,300,298 Additions during the year 5,442,744 4,323,947 Recoveries during the year 21,427,488 4,535,849 Write-offs during the year 3,967,360 6,764,481 Balance at the end of the year 31,371,811 51,323,915 For the year ended 31 December 2016, the Group had no individually significant write-off or recovery of doubtful debts which had been fully or substantially made in prior years (2015: nil).
(6) Five largest accounts receivable by debtor at the end of the year
The sub-total of five largest accounts receivable of the Group at the end of the year was RMB 7,370,094,336, representing45% of the total accounts receivable, and no provision was made for bad and doubtful debts after assessment.
4. Prepayments
(1) TheGroup’s prepayments by category:
2016 2015 Prepayment for inventory 268,366,388 112,514,008 Others 440,145,085 113,933,496 Total 708,511,473 226,447,504
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) The ageing analysis of prepayments is as follows:
Ageing 2016 2015
Percentage Percentage Amount (%) Amount (%) Within 1 year (inclusive) 706,523,558 100% 222,965,900 99% 1 to 2 years (inclusive) 1,191,189 - 2,911,881 1% 2 to 3 years (inclusive) 418,929 - 495,306 - Over 3 years 377,797 - 74,417 - Total 708,511,473 100% 226,447,504 100% The ageing is counted starting from the date when prepayments are recognised. As at 31 December 2016, the total of five largest prepayments of the Group is RMB 399,927,674, representing56% of the total prepayments.
5. Other receivables
(1) TheGroup’s other receivables by customer type:
Customer type 2016 2015 Amounts due from related parties 6,440 1,055,976 Amounts due from other customers 903,716,317 597,101,055 Sub-total 903,722,757 598,157,031 Less: Provision for bad and doubtful
loans 653,341 4,827,184 Total 903,069,416 593,329,847
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) TheGroup’s other receivables by currency type:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents RMB 876,808,626 580,194,852 USD 798,455 6.9370 5,538,884 2,159,507 6.4936 14,022,975 JPY 75,180,579 0.0596 4,480,763 55,049,242 0.0539 2,967,153 Korean Won - 0.0058 - 176,736,541 0.0055 972,051 Other foreign currencies 16,894,484 - Sub-total 903,722,757 598,157,031 --------------- --------------- Less: Provision for bad
and
doubtful
loans 653,341 4,827,184 Total 903,069,416 593,329,847 (3) The ageing analysis of theGroup’s other receivables is as follows:
2016 2015 Within 1 year (inclusive) 604,482,596 260,559,729 1 to 2 years (inclusive) 51,411,837 32,793,069 2 to 3 years (inclusive) 12,539,126 36,323,681 Over 3 years 235,289,198 268,480,552 Sub-total 903,722,757 598,157,031 Less: Provision for bad and doubtful
loans 653,341 4,827,184 Total 903,069,416 593,329,847 The ageing is counted starting from the date when other receivables are recognised.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) TheGroup’s other receivables by category
2016 2015
Book Value Provision for bad Provision for bad
Category and doubtful debts Book Value and doubtful debts
Percentage Percentage Carrying Percentage Percentage Carrying Amount (%) Amount (%) amount Amount (%) Amount (%) amount Collectively assessed for impairment
based on credit risk characteristics* 903,069,416 100% - - 903,069,416 593,323,066 99% - - 593,323,066 Individually insignificant but assessed
for impairment individually 653,341 0% 653,341 100% - 4,833,965 1% 4,827,184 100% 6,781 Total 903,722,757 100% 653,341 0% 903,069,416 598,157,031 100% 4,827,184 1% 593,329,847Note*: This category includes other receivable having been individually assessed but not impaired.
The Group has no individually significant other receivable and individually for impairment this year. As at 31 December 2016, the Group collectively assessed other receivable having been individually assessed but not impaired for impairment and did not recognise impairment loss against this amount of other receivable (2015: nil).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (5) Additions and reversals of provision for bad and doubtful debts during the year:
2016 2015 Balance at the beginning of the year 4,827,184 8,818,190 Additions during the year 214,232 406,270 Recoveries during the year 3,119,595 - Write-offs during the year 1,268,480 4,397,276 Balance at the end of the year 653,341 4,827,184 (6) TheGroup’s other receivables categorised by nature
Nature of other receivables 2016 2015 VAT refunds 252,652,057 105,110,154 Amount due from equity transfer 200,000,000 200,000,000 Deposits 289,801,526 8,822,268 Others 161,269,174 284,224,609 Sub-total 903,722,757 598,157,031 Less: Provision for bad and doubtful
debts 653,341 4,827,184 Total 903,069,416 593,329,847 (7) Five largest other receivables by debtor at the end of the year
As at 31 December 2016, the total balance of other receivables due from theGroup’s top five debtors amounted to RMB 624,584,732, most of which are export tax rebate receivables due from tax authorities and receivables due from equity transfer. No provision is made for bad and doubtful debts after assessment.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 6. Inventories
(1) TheGroup’s inventories by category:
2016 2015
Provision for Provision for
impairment of Carrying impairment of Carrying Book value inventories amount Book value inventories amount Raw materials 3,378,887,483 170,279,800 3,208,607,683 2,140,352,715 109,664,234 2,030,688,481 Work in progress 1,110,541,775 154,157,198 956,384,577 729,493,187 86,221,585 643,271,602 Finished goods 4,348,635,413 789,031,165 3,559,604,248 4,670,195,081 838,807,123 3,831,387,958 Consumables 109,264,439 722,415 108,542,024 104,891,330 833,143 104,058,187 Total 8,947,329,110 1,114,190,578 7,833,138,532 7,644,932,313 1,035,526,085 6,609,406,228 As at 31 December 2016, there was no amount of capitalised borrowing cost in theGroup’s closing balance of inventories (2015: nil).
As at 31 December 2016, the Group had no inventory used as collateral (2015: nil). (2) Provision for impairment of inventories of the Group is analysed as follows:
Balance at the
beginning of the Additions during Balance at the year the year Reductions during the year end of the year Reversals Write-offs
Raw materials 109,664,234 214,171,786 48,950,377 104,605,843 170,279,800 Work in progress 86,221,585 174,743,092 72,065,901 34,741,578 154,157,198 Finished goods 838,807,123 1,393,366,613 265,310,078 1,177,832,493 789,031,165 Consumables 833,143 108,669 219,397 - 722,415 Total 1,035,526,085 1,782,390,160 386,545,753 1,317,179,914 1,114,190,578 7. Other current assets
2016 2015 VAT on tax credits 4,323,654,894 3,618,069,252 Input tax to be verified or deducted 1,264,145,639 1,322,422,140 Prepayment of income tax 155,248 123,348,135 Wealth management products 60,267,110 3,620,970,828 Others 42,977,335 27,207,162 Total 5,691,200,226 8,712,017,517 As at 31 December 2016, all of the wealth management products owned by the
Group are due within one year.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 8. Available-for-sale financial assets
(1) Available-for-sale financial assets
2016 2015
Provision for Carrying Provision for Carrying Item Book value impairment amount Book value impairment amount Available-for-sale debt
instruments 12,348,030 - 12,348,030 - - - Available-for-sale equity
instruments
- At fair value 531,987,776 150,099,655 381,888,121 455,620,512 150,099,655 305,520,857 - At cost 228,446,405 180,000 228,266,405 148,755,389 180,000 148,575,389 Total 772,782,211 150,279,655 622,502,556 604,375,901 150,279,655 454,096,246 (2) Available-for-sale financial assets at fair value at the end of the year:
Available-for-s Available-for-s
ale equity ale debt
instruments instruments Total Cost of equity instruments /
amortised cost of debt
instruments 418,948,622 12,647,553 431,596,175 Fair value 381,888,121 12,348,030 394,236,151 Accumulative fair value changes
recognised in other
comprehensive income 113,039,154 (299,523) 112,739,631 Provision for impairment 150,099,655 - 150,099,655
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (3) Available-for-sale financial assets at cost at the end of the year:
Provision for
Investee Book value impairment
Balance at the
Balance at the Increase Decrease beginning and Percentage of beginning during the during the Balance at the the end of the shareholding in of the year year year end of the year year investees(%) Teralane Semiconductor Inc 11,868,000 - - 11,868,000 - 7.29% Zhejiang BOE Display
Technology Co., Ltd. 321,256 - - 321,256 - 7.03% Zhejiang Qiusheng Photoelectric
Technology Co., Ltd. 248,776 - - 248,776 - 7.03% National Engineering Laboratory
of Digital Television (Beijing)
Co., Ltd. 6,250,000 - - 6,250,000 - 12.50% Meta Company 30,733,954 3,950,994 - 34,684,948 - 7.24% Danhua Capital, L. P. 23,308,625 2,705,125 - 26,013,750 - 5.48% Danhua Capital II, L.P. - 13,874,000 - 13,874,000 - 5.00% Kateeva Inc. 75,844,778 7,017,688 - 82,862,466 - 3.89% DEPICT INC. - 13,874,000 - 13,874,000 - 19.83% MOOV INC. - 27,862,839 - 27,862,839 - 6.48% ZGLUE INC. - 10,405,488 - 10,405,488 - 6.00% Fabord Ltd. - 882 - 882 10.30% Others 180,000 - - 180,000 180,000
Total 148,755,389 79,691,016 - 228,446,405 180,000
9. Long-term equity investments
(1) TheGroup’s long-term equity investments by category:
2016 2015 Investments in associates 1,893,248,367 1,597,915,136 Less: Provision for impairment 537,136,972 337,612,177 Total 1,356,111,395 1,260,302,959
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Information on Investments in associates:
Investment
income Acquired as
Balance at recognised Other subsidiaries Balance at the beginning Additional under equity comprehensive Other equity during the the end Investee of the year investment method income movements year of the year Beijing Nissin
Electronics
Precision
Component Co.,
Ltd. 3,011,145 - (2,651,253) - - - 359,892 Beijing Nittan Electronic
Co., Ltd. 29,353,994 - 11,274,609 - - - 40,628,603 Erdos BOE Energy
Investment Co., Ltd. 907,476,536 - (13,266) - - - 907,463,270 Beijing Infi-Hailin
Venture Investment
Co., Ltd. 324,896 - 131,785 - - - 456,681 Beijing Infi-Hailin
Venture
Investment (Limited
Partnership) 117,872,528 22,333,400 (993,478) 16,891,494 877,088 - 156,981,032 TPV Display Technology
(China) Limited 23,715,205 - 2,907,139 - - - 26,622,344 Hefei BOE Display
Technology Co.,
Ltd. 85,566,875 444,000,000 (1,654,610) - 3,853,059 (531,765,324) - Beijing Xindongneng
Investment Fund
(Limited
Partnership) 370,261,522 300,000,000 (16,099,481) 25,161,758 - - 679,323,799 Beijing Xindongneng
Investment
Management Co.,
Ltd. 1,921,429 - 984,789 - - - 2,906,218 Shenzhen Yunyinggu
Technology Co.,
Ltd. 58,411,006 - (8,065,070) - - - 50,345,936 Beijing Xloong
Technologies
Co.,Ltd. - 25,000,000 (551,423) - - - 24,448,577 New on Technology
Co. Ltd. - 4,103,103 (391,088) - - - 3,712,015 Sub-total 1 ,597,915,136 795,436,503 (15,121,347 ) 42,053,252 4,730,147 (531,765,324 ) 1 ,893,248,367 Less: Provision for
impairment 337,612,177 537,136,972 Total 1 ,260,302,959 1 ,356,111,395 The Group performed an impairment test on the long-term equity investments in which indication of impairment existed on 31 December 2016. As the book value of equity investment of individual companies held by the Group was higher than the recoverable amount, the book value was reduced to recoverable amount by the
Group to recognise impairment loss from long-term equity investment.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 10. Investment properties
Land use rights Buildings Total Cost
Balance at the beginning
of the year 659,779,217 854,334,573 1,514,113,790 Additions during the year - 4,439,896 4,439,896 Balance at the end of the
year 659,779,217 858,774,469 1,518,553,686 -------------------- -------------------- -------------------- Less: Accumulated depreciation
or amortisation
Balance at the beginning
of the year 84,345,006 202,669,357 287,014,363 Additions during the year 14,507,032 24,099,395 38,606,427 Balance at the end of the
year 98,852,038 226,768,752 325,620,790 -------------------- -------------------- -------------------- Carrying amounts
At the end of the year 560,927,179 632,005,717 1,192,932,896 At the beginning of the
year 575,434,211 651,665,216 1,227,099,427
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 11. Fixed assets
(1) TheGroup’s fixed assets are as follows:
Plant& Other
buildings Equipment categories Total Cost:
Balance at the beginning
of the year 19,601,399,268 73,620,519,802 827,314,126 94,049,233,196 Additions during the year
-Purchases 827,724 566,538,096 377,626,338 944,992,158 -Transfer from
construction in
progress 2,801,341,470 12,433,453,836 192,473,212 15,427,268,518 -Additions due to
business
combinations
involving entities not
under common
control 146,812,929 175,445,367 20,198,824 342,457,120 Disposals or write-offs
during the year 63,530,560 364,476,638 13,827,703 441,834,901 Difference of foreign
currency translation (925,271) (28,614,199) (4,084,947) (33,624,417) Balance at the end of the
year 22,485,925,560 8 6,402,866,264 1 ,399,699,850 1 1 0,288,491,674 ---------------- ---------------- ---------------- ---------------- Less: Accumulated depreciation
Balance at the beginning
of the year 2,133,566,863 27,422,371,406 282,075,525 29,838,013,794 Additions during the year 679,278,852 9,146,329,511 277,901,840 1 0,103,510,203 Disposals or write-offs
during the year 15,756,811 199,261,398 10,723,308 225,741,517 Difference of foreign
currency translation (2,576,012) (32,946,552) (4,972,505) (40,495,069) Balance at the end of the
year 2,794,512,892 3 6,336,492,967 544,281,552 3 9,675,287,411 ---------------- ---------------- ---------------- ---------------- Less: Provision for impairment
Balance at the beginning
of the year 1,161,260 643,793,809 1,164,928 646,119,997 Additions during the year - 38,050,772 1,674,557 39,725,329 Disposals or write-offs
during the year 61,245 18,070,639 2,096,146 20,228,030 Balance at the end of the
year 1,100,015 663,773,942 743,339 665,617,296 ---------------- ---------------- ---------------- ---------------- Carrying amounts
At the end of the year 19,690,312,653 49,402,599,355 854,674,959 69,947,586,967 At the Beginning of the
year 17,466,671,145 45,554,354,587 544,073,673 63,565,099,405 The Group recognised provision of impairment of some idle equipment and mould assets of RMB 39,725,329 for the current year.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Fixed assets acquired under finance leases:
2016 2015
Accumulated Provision for Carrying Accumulated Provision for Carrying Item Cost depreciation impairment amount Cost depreciation impairment amount Plant& buildings 11,291,665 3,849,627 - 7,442,038 11,291,665 3,595,938 - 7,695,727 TheGroup’s fixed assets under finance leases represented a youth apartment under finance lease for the Company, which is used for the purposes of the staff dormitory. 12. Construction in progress
(1) TheGroup’s construction in progress is as follows:
2016 2015
Provision for Carrying Provision for Carrying Project Book value impairment amount Book value impairment amount The 6th generation LTPS /
AMOLED production line
project of Chengdu BOE 6,623,826,176 - 6,623,826,176 126,732,620 - 126,732,620 The 8.5th generation
TFT-LCD and Touch
screen production of Hefei
Xinsheng 3,775,171,446 - 3,775,171,446 3,848,879,771 - 3,848,879,771 The 5.5th generation LTPS
and AMOLED projects of
Yuansheng 6,977,796,088 - 6,977,796,088 1 0,517,718,706 - 10,517,718,706 The 8.5th generation
TFT-LCD production line
of Chongqing BOE 456,322,808 - 456,322,808 2,634,406,927 - 2,634,406,927 The 10.5th generation
TFT-LCD project of Hefei
Display 3,720,534,213 - 3,720,534,213 - - - The 8.5th generation new
semiconductor display
device production line of
Fuzhou BOE 8,408,445,327 - 8,408,445,327 460,185,529 - 460,185,529 Others 3,047,464,118 1,311,456 3,046,152,662 1,058,849,595 1,311,456 1,057,538,139 Total 33,009,560,176 1,311,456 33,008,248,720 1 8 , 646,773,148 1,311,456 18,645,461,692
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Movements of major construction in progress during the year
Transfer to
long-term
deferred Percentage Including: Interest rate Balance at the Transfer to Transfer to expenses and of actual cost Accumulated Interest for beginning of the Additions during fixed assets Intangible assets others during the Balance at the to budget capitalised capitalised in capitalization Sources of Project Budget year the year during the year during the year year end of the year (%) interest 2016 in 2016(%) funding The 6th generation LTPS /
AMOLED production
line project of Chengdu
BOE 44,800,000,000 126,732,620 6,502,873,565 - 5,780,009 - 6,623,826,176 14.80% - - - Self-funding The 8.5th generation
TFT-LCD and Touch Self-funding, screen production of loans and Hefei Xinsheng 30,987,000,000 3,848,879,771 644,027,821 716,237,732 1,498,414 - 3,775,171,446 80.96% 3,831,721 - - raising capitals The 5.5th generation Self-funding, LTPS and AMOLED loans and projects of Yuansheng 20,020,000,000 10,517,718,706 6,081,240,304 9,496,179,316 124,983,606 - 6,977,796,088 84.20% 61,580,545 156,759,799 5.13% raising capitals The 8.5th generation Self-funding, TFT-LCD production loans and line of Chongqing BOE 30,000,000,000 2,634,406,927 1,626,853,055 3,792,993,683 11,943,491 - 456,322,808 74.01% - 150,664,739 4.73% raising capitals The 10.5th generation
TFT-LCD project of Self-funding and Hefei Display 42,937,000,000 - 3,720,588,352 54,139 - - 3,720,534,213 8.67% 3,360,633 1,584,642 3.92% loans The 8.5th generation The
new semiconductor
display device
production line of Self-funding and Fuzhou BOE 26,985,000,000 460,185,529 8,321,114,759 372,854,961 - - 8,408,445,327 32.54% 17,682,700 17,682,700 2.75% loans Others 1,058,849,595 3,042,802,006 1,048,948,687 4,009,833 1,228,963 3,047,464,118
Total 18,646,773,148 29,939,499,862 15,427,268,518 148,215,353 1,228,963 33,009,560,176
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 13. Intangible assets
Patent and
technology
Land use rights rights Software Others Total Cost:
Balance at the
beginning of the
year 1,300,366,510 1,703,881,828 572,981,178 262,962,616 3,840,192,132 Additions during the
year
- Purchase 208,160,708 66,851,120 40,885,770 1,118,663 317,016,261 - Transfer from
construction in
progress 5,780,009 - 81,551,624 60,883,720 148,215,353 - Additions due to
business
combinations
involving
entities
not under
common
control 327,958,987 - 140,209 - 328,099,196 Disposal during the
year 76,158,611 - 68,060 - 76,226,671 Balance at the end of
the year 1,766,107,603 1,770,732,948 695,490,721 324,964,999 4,557,296,271 -------------- -------------- -------------- -------------- -------------- Less: Accumulated
amortisation
Balance at the
beginning of the
year 111,021,207 701,485,352 315,817,972 32,156,893 1,160,481,424 Additions during the
year 33,615,548 162,869,266 57,451,767 12,172,340 266,108,921 Disposal during the
year 6,622,466 - 16,448 - 6,638,914 Balance at the end of
the year 138,014,289 864,354,618 373,253,291 44,329,233 1,419,951,431 -------------- -------------- -------------- -------------- -------------- Less: Provision for
impairment
Balance at the
beginning and
and the end of the
year - - 471,453 - 471,453 -------------- -------------- -------------- -------------- -------------- Carrying amounts
At the end of the year 1,628,093,314 906,378,330 321,765,977 280,635,766 3,136,873,387 At the beginning of the
year 1,189,345,303 1,002,396,476 256,691,753 230,805,723 2,679,239,255
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 14. Goodwill
Balance at the Name of investee or events from which Balance at the beginning goodwill arose end of the year of the year Book value
Beijing Yinghe Century Co., Ltd. 42,940,434 42,940,434 K-Tronics (Suzhou) technology Co., Ltd. 8,562,464 8,562,464 Beijing BOE Optoelectronics Technology
Co., Ltd. 4,423,876 4,423,876 BOE Healthcare Investment& Management
Co., Ltd. 146,460,790 146,460,790 Sub-total 202,387,564 202,387,564 Provision for impairment 4,423,876 4,423,876 Carrying amount 197,963,688 197,963,688 As at 31 December 2016, The Group performed an impairment test of the goodwill recognised in the acquisition of Beijing Yinghe Century Co., Ltd., K-Tronics (Suzhou) technology Co., Ltd., and BOE Healthcare Investment& Management Co., Ltd. and determined that no provision for impairment loss needs to be recognised. In
previous year, full impairment losses had been recognised for the goodwill
recognised in the acquisition of Beijing BOE Optoelectronics Technology Co., Ltd. 15. Long-term deferred expense
Balance at the
beginning of the Additions during Decrease during Balance at the year the year the year end of the year Prepayment for public facilities
construction and use 144,183,461 - 15,370,224 128,813,237 Cost of operating lease
assets improvement 10,254,474 - 1,699,754 8,554,720 Others 187,088,278 71,712,409 51,277,417 207,523,270 Total 341,526,213 71,712,409 68,347,395 344,891,227
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 16. Deferred tax assets and deferred tax liabilities
(1) Recognised deferred tax assets and deferred tax liabilities
2016 2015
Deductible / Deductible /
(taxable) Deferred tax (taxable) Deferred tax temporary Assets / temporary Assets / Item differences (liabilities) differences (liabilities) Deferred tax assets:
Provision for impairment of
Assets 150,713,954 36,340,807 153,660,274 38,165,517 Difference of
depreciation /
amortisation 19,830,095 2,974,516 23,677 3,553 Revaluation due to
investment of real estate 153,218,516 38,304,629 158,772,372 39,693,093 Accumulated losses 61,989,130 15,497,284 122,194,824 30,548,708 Advances from customers 349,621,212 52,443,182 - - Others 65,184,744 13,273,757 34,656,467 8,694,349 Sub-total 800,557,651 158,834,175 469,307,614 117,105,220 Amount offset (12,295,610) - Balance after offset 146,538,565 117,105,220 Deferred tax liabilities:
Revaluation due to
business combinations
involving entities not
under common control (1,129,240,231) (282,310,058) (1,141,068,053) (285,267,013) Depreciation of fixed
assets (699,513,159) (107,479,271) (391,241,676) (58,686,251) Fair value changes of
wealth management
products (356,147) (89,037) (21,473,098) (3,220,965) Changes in fair value of
available-for- sale
financial assets (27,983,239) (4,617,234) (28,168,564) (4,647,813) Long-term equity
investments (360,863,027) (54,129,454) (560,387,820) (84,058,173) Bond interest (71,221,140) (10,683,171) - - Others (10,749,594) (1,612,439) - - Sub-total (2,299,926,537) (460,920,664) (2,142,339,211) (435,880,215) Amount offset 12,295,610 - Balance after offsett (448,625,054) (435,880,215)
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Details of unrecognised deferred tax assets
2016 2015 Deductible temporary differences 4,878,250,340 4,004,972,209 Deductible tax losses 1,797,146,855 1,555,680,596 Total 6,675,397,195 5,560,652,805 As at 31 December 2016, the deductible temporary differences are mainly the
differences between the carrying amount and tax base of thesubsidiaries’
impairment of assets. Due to the uncertainty that there will be sufficient taxable
income to cover these deductible differences in future periods, the deferred income tax assets were not recognised in consideration of prudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets:
Year 2016 2015 2016 - 99,532,368 2017 284,484,489 280,647,569 2018 158,349,778 185,377,579 2019 278,873,005 231,252,534 2020 826,746,986 758,870,546 2021 248,692,597 - Total 1,797,146,855 1,555,680,596 17. Other non-current assets
2016 2015 Prepayment for projects 1,056,333,969 38,134,743 Prepayment for fixed assets 2,447,632,012 225,828,407 VAT on tax credits 199,580,943 - Deferred VAT for imported
equipment 354,553,214 75,720,270 Others 81,433,078 8,168,254 Total 4,139,533,216 347,851,674
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 18. Short-term loans
2016
Credited / collateralised RMB / guaranteed / Original currency Exchange rate RMB equivalents pledged Bank loans
- RMB 1,027,787,762 Credited - RMB 389,996,480 Pledged Sub-total 1,417,784,242
------------------
Foreign currency
bank loans
- USD 17,357,860 6.9370 120,411,472 Pledged - USD 420,000,000 6.9370 2,913,540,000 Guaranteed - USD 58,988,221 6.9370 409,201,296 Credited - JPY 940,217,573 0.0596 56,028,497 Credited Sub-total 3,499,181,265
------------------
Total 4,916,965,507
2015
Credited / collateralised RMB / guaranteed / Original currency Exchange rate RMB equivalents pledged Bank loans
- RMB 10,000,000 Collateralised Sub-total 10,000,000
------------------
Foreign currency
bank loans
- USD 34,478,897 6.4936 223,892,165 Pledged - USD 600,000,000 6.4936 3,896,160,000 Guaranteed - USD 145,542,250 6.4936 945,093,159 Credited - JPY 312,374,837 0.0539 16,829,506 Credited Sub-total 5,081,974,830
------------------
Total 5,091,974,830
The interest rate of RMB short-term loans for the Group ranged from2.70% to5.00% in 2016 (2015:5.62%); the interest rate of USD short-term loans for the Group
ranged from1.77% to3.56% and its variable rate wasLIBOR+2.6% for six months in 2016 (2015: from0.47% to2.87% and fromLIBOR+1.55% toLIBOR+2.8%); the interest rate of JPY short-term loans for the Group ranged from1.20% to3.00% in 2016 (2015: from1.08% to1.68%).
As at 31 December 2016, no short-term loan was past due (2015: nil).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 19. Bills payable
2016 2015 Bank acceptance bills 524,560,235 343,277,037 Commercial acceptance bills 115,702,226 - Total 640,262,461 343,277,037 There is no due but unpaid bill payable at the end of the year. The above bills are all due within one year.
20. Accounts payable
(1) TheGroup’s accounts payable by category are as follows:
2016 2015 Payables to related parties 5,937,474 11,313,820 Payables to third parties 13,829,678,191 9,838,621,211 Total 13,835,615,665 9,849,935,031 (2) TheGroup’s accounts payable by currency are as follows:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents - RMB 8,024,220,650 5,121,366,631 - USD 745,461,344 6.9370 5,171,265,343 647,147,839 6.4936 4,202,299,002 - JPY 10,642,803,787 0.0596 634,284,846 9,756,902,307 0.0539 525,772,543 - Other foreign
currencies 5,844,826 496,855 Total 13,835,615,665 9,849,935,031 As at 31 December 2016, the Group had no individually significant accounts payable ageing more than one year.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 21. Advances from customers
Item 2016 2015 Advances from related parties - 2,700 Advances from third parties 548,942,714 386,536,203 Total 548,942,714 386,538,903 As at 31 December 2016, the Group had no individually significant advances from customers ageing more than one year.
22. Employee benefits payable
(1) Employee benefits payable:
Balance at 1 Accrued during Decreased Balance at 31 Note January 2016 the year during the year December 2016 Short-term
employee benefits (2) 1,051,226,920 6,591,953,839 6,146,112,007 1,497,068,752 Post-employment
benefits-defined
contribution plans (3) 25,755,886 531,414,880 526,424,212 30,746,554 Termination benefits 15,120,332 865,719 949,091 15,036,960 Total 1,092,103,138 7,124,234,438 6,673,485,310 1,542,852,266 Balance at 1 Accrued during Decreased Balance at 31 Note January 2015 the year during the year December 2015 Short-term
employee benefits (2) 1,101,654,236 5,186,168,369 5,236,595,685 1,051,226,920 Post-employment
benefits-defined
contribution plans (3) 34,848,353 442,997,647 452,090,114 25,755,886 Termination benefits 15,120,332 330,170 330,170 15,120,332 Total 1,151,622,921 5,629,496,186 5,689,015,969 1,092,103,138
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Short-term employee benefits
Balance at 1 Accrued during Decreased Balance at 31 January 2016 the year during the year December 2016 Salaries, bonuses,
allowances 802,297,623 5,200,061,896 4,824,279,085 1,178,080,434 Staff welfare - 665,138,127 665,138,127 - Social insurance 34,946,466 302,125,182 270,292,495 66,779,153 Medical insurance 33,257,964 258,719,751 228,640,046 63,337,669 Work-related injury
insurance 685,379 22,027,310 21,081,268 1,631,421 Maternity insurance 1,003,123 21,378,121 20,571,181 1,810,063 Housing fund 18,494,267 262,493,474 260,379,985 20,607,756 Labour union fee, staff
andworkers’ education fee 182,715,621 141,501,553 109,280,533 214,936,641 Staff bonus and welfare fund 7,282,591 - - 7,282,591 Other short-term employee
benefits 5,490,352 20,633,607 16,741,782 9,382,177 Total 1,051,226,920 6,591,953,839 6,146,112,007 1,497,068,752 Balance at 1 Accrued during Decreased Balance at 31 January 2015 the year during the year December 2015 Salaries, bonuses,
allowances 888,236,228 4,082,074,752 4,168,013,357 802,297,623 Staff welfare - 565,464,073 565,464,073 - Social insurance 34,142,462 217,336,948 216,532,944 34,946,466 Medical insurance 32,329,441 181,343,398 180,414,875 33,257,964 Work-related injury
insurance 606,425 19,812,161 19,733,207 685,379 Maternity insurance 1,206,596 16,181,389 16,384,862 1,003,123 Housing fund 11,509,770 190,699,521 183,715,024 18,494,267 Labour union fee, staff
andworkers’ education fee 158,223,788 110,895,324 86,403,491 182,715,621 Staff bonus and welfare fund 7,282,591 - - 7,282,591 Other short-term employee
benefits 2,259,397 19,697,751 16,466,796 5,490,352 Total 1,101,654,236 5,186,168,369 5,236,595,685 1,051,226,920 (3) Post-employment benefits- defined contribution plans
Balance at 1 Accrued during Decreased Balance at 31 January 2016 the year during the year December 2016 Basic pension insurance 22,621,515 487,546,677 485,539,176 24,629,016 Unemployment insurance 1,284,085 25,615,575 25,680,498 1,219,162 Annuity 1,850,286 18,252,628 15,204,538 4,898,376 Total 25,755,886 531,414,880 526,424,212 30,746,554
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Balance at 1 Accrued during Decreased Balance at 31 January 2015 the year during the year December 2015 Basic pension insurance 23,742,078 404,925,571 406,046,134 22,621,515 Unemployment insurance 1,312,546 25,444,758 25,473,219 1,284,085 Annuity 9,793,729 12,627,318 20,570,761 1,850,286 Total 34,848,353 442,997,647 452,090,114 25,755,886 23. Taxes payable
2016 2015 Value-added tax 6,826,361 6,034,483 Business tax - 2,950,474 Corporate income tax 342,021,556 51,227,464 Individual income tax 28,431,907 26,686,375 City maintenance and construction
tax 114,056,922 61,736,456 Education surcharge and local
education surcharge 81,471,180 44,106,572 Others 83,543,968 31,673,185 Total 656,351,894 224,415,009 24. Dividends payable
As at 31 December 2016, dividends payable mainly represented unclaimed
dividends for non-public shareholders and dividends payable to minority
shareholders of Vacuum Electronics.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 25. Other payables
(1) Details of other payables are as follows:
2016 2015 Projects and equipment 11,986,641,278 6,809,238,439 Deferred VAT for imported
equipment 1,019,532,634 980,993,091 Technology licence fee 44,447,195 149,873,192 Deposits 295,916,263 186,443,738 Accrued water and electricity
charges and freight 363,061,275 263,579,363 Agency fee payable 39,629,069 32,624,494 Technology royalties 17,622,563 48,675,647 Others 628,674,971 393,501,914 Total 14,395,525,248 8,864,929,878 Significant other payables aged over one year are payables of projects and
equipment.
(2) TheGroup’s other payables by currency are as follows:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents RMB 7,206,854,497 5,338,668,580 USD 926,858,546 6.9370 6,429,617,732 375,250,844 6.4936 2,436,728,856 JPY 12,540,233,332 0.0596 747,278,731 20,113,929,548 0.0539 1,084,050,962 Other foreign currencies 11,774,288 5,481,480 Total 14,395,525,248 8,864,929,878
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 26. Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-term loans and long-term payables due within one year
2016
Credited / collateralised Exchange RMB / guaranteed / Original currency rate RMB equivalents pledged Bank loans
- RMB 100,000,000 Credited - RMB 397,380,000 Collateralised - USD 24,145,788 6.9370 167,499,332 Credited - USD 419,760,700 6.9370 2,911,879,976 Collateralised Long-term payables 107,477,627 Collateralised Total 3,684,236,935
2015
Credited / collateralised Exchange RMB / guaranteed / Original currency rate RMB equivalents pledged Bank loans
- RMB 248,330,000 Collateralised - RMB 670,000,000 Credited - USD 210,238,560 6.4936 1,365,205,113 Collateralised Total 2,283,535,113
The interest rate of RMB long-term loans due within one year for the Group ranged from4.75% to5.94% in 2016 (2015: from3.90% to5.94%), the interest rate of USD long-term loans for the Group due within one year ranged from2.33% to
LIBOR+4.3% in 2016 (2015: fromLIBOR+3.2% toLIBOR+4.3%).
27. Other current liabilities
The other current liabilities of the Group were warranty provision. The warranty provision mainly relates to the expected after-sales repair warranty to the customers. The provision is estimated by the Management, based on historical claim experience and current actual sales outcomes.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 28. Long-term loans
2016
Credited / collateralised Exchange RMB / guaranteed / Principal rate RMB equivalents pledged Bank loans
- RMB 14,865,000 Pledged - RMB 2,684,820,636 Collateralised - RMB 17,635,000,000 Credited - USD 4,424,999,231 6.9370 30,696,219,667 Collateralised - USD 350,442,585 6.9370 2,431,020,216 Credited Less: Long-term loans
within one year 3,576,759,308
Total 49,885,166,211
2015
Credited / collateralised Exchange RMB / guaranteed / Principal rate RMB equivalents pledged Bank loans
- RMB 19,755,000 Pledged - RMB 3,359,822,712 Collateralised - RMB 3,512,000,000 Credited - USD 4,660,836,176 6.4936 30,265,605,790 Collateralised - USD 225,999,408 6.4936 1,467,549,756 Credited Less: Long-term loans
within one year 2,283,535,113
Total 36,341,198,145
The interest rate of RMB long-term loans for the Group ranged from0% to7.68% in 2016 (2015: from0% to7.68%); the interest rate of USD long-term loans for the Group ranged from4.42% to5.56% and the variable rate ranged fromLIBOR+2.00% toLIBOR+4.3% in 2016 (2015: fromLIBOR+2.7% toLIBOR+4.3%).
29. Bonds payable
(1) Bonds payable
Items 2016 2015 Bonds payable 9,956,719,508 - Less: Bonds payable due within one year - - Total 9,956,719,508 -
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Increase and decrease of bonds payable:
Balance of Interest
Name the recognised Amortisation Repayment
of beginning of Issued amount based on par discounted to during the Balance of the bond Par value Issuance date Maturity Issued amount the year during the year value premium year end of the year 16BO
E01 10,000,000,000 2016.03.21 5 years 10,000,000,000 - 10,000,000,000 - (43,280,492) - 9,956,719,508 Total 10,000,000,000 - 10,000,000,000 - (43,280,492) - 9,956,719,508 From 21 March 2016 to 22 March 2016, with the Approval document No. 469[2016] of CSRC, the Group issued successfully a corporate bond of RMB 10 billion to
qualified investors via Shenzhen Stock Exchange. The full name of the bond is corporate bond issued publicly by BOE Technology Group Co., Ltd. to qualified
investors in 2016 (the first phase), which is referred to as 16BOE01.
The total amount of the bond in the current period is RMB 10 billion issued at a par value of RMB 100, with its maturity of 5 years from 21 March 2016 to 21 March 2021. At the end of the third year of the maturity, the bond is accompanied by option of the issuer to increase the coupon rate and option of investors to sell back the bond.
The coupon rate of the bond is3.15% which is fixed for the first 3 years of the
maturity. At the end of the third year of the maturity, if the issuer exercises the
option of increasing the coupon rate, the coupon rate of part of the bond which is not sold back equal to the coupon rate of the first 3 years of the maturity plus the
increased basis point. This rate is fixed during the rest of 2 years of the maturity. The principal of the bond should be repaid in full at expiration date. The interests, calculated from 21 March 2016, should be paid annually and the interest of the last period should be paid along with the principal.
30. Long-term payables
Items 2016 2015 Amount payables of sale and
leaseback 1,368,924,192 - Less: Amount payables of sale and
leaseback due within one year 107,477,627 - Total 1,261,446,565 - The Group rented back some of its sold machinery equipment and constructions in progress. The sales of the assets are related to the leases, and the Group basically can ensure to buy back the asset after lease term. Therefore, the Group adopts the accounting treatment of collateral loans.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 31. Provisions
Item 2016 2015 Pending implementation of the
agreement 16,457,010 16,457,010 In 2009, the Group ceased producing several products and stopped fulfilling the purchase contract related to production. Due to the indemnity incurred accordingly, the Group accrued provisions according to reasonable estimation of loss.
32. Deferred income
Balance at the
beginning of the Additions during Reductions Balance at the Item year the year during the year end of the year Government grants 2,406,244,676 731,464,843 643,586,590 2,494,122,929 Balance at the Additions of Recognition as
beginning of the grants during non-operating Balance at the year the year income end of the year Government grants related to
assets
The 8.5th generation of TFT-
LCD production line 762,261,809 42,515,845 176,026,102 628,751,552 The 6th generation of TFT-
LCDproduction line 146,666,667 5,758,696 69,599,767 82,825,596 The 10.5th generation of
TFT-LCD production line - 369,744,100 - 369,744,100 Subsidies for scientific
research and development 1,299,583,097 166,392,036 207,278,353 1,258,696,780 Sub-total 2,208,511,573 584,410,677 452,904,222 2,340,018,028 --------------- --------------- --------------- --------------- Government grants related to
income
Subsidies for scientific
research and development 197,733,103 147,054,166 190,682,368 154,104,901 Sub-total 197,733,103 147,054,166 190,682,368 154,104,901 --------------- --------------- --------------- --------------- Total 2,406,244,676 731,464,843 643,586,590 2,494,122,929
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 33. Other non-current liabilities
Item Note 2016 2015 Convertible debt (1) 3,823,719,309 3,595,123,390 Equity investment with redemption
provisions (2) 3,336,400,000 2,500,000,000 Deferred VAT for imported
equipment 354,553,214 75,720,270 Others (3) 102,000,000 - Total 7,616,672,523 6,170,843,660 (1) Convertible debt
Pursuant to the agreement regarding the investment in Hefei Xinsheng signed by the Company and its minority shareholders, the Company is responsible for converting the investment RMB 4,000,000,000 made by the minority shareholders on 1 April 2013 with its increased issue of shares if the increase issue was granted by the
CSRC. The Company should acquire the minority shareholder's rights otherwise. The Company affirmed the equity investment by minority shareholders aforesaid to be the financial instruments mixed as the following: 1) the acquisition duty should be categorised as the financial liabilities initially recognised at its fair value and
subsequently measured at its amortised costs; 2) the convertible duty should be categorised as the financial liabilities recognised at its fair value and changes therein are recognised in profit and loss. These financial liabilities were recognised in
consolidated balance sheet as other non-current liabilities.
The Group evaluated the value of financial liability- the acquisition duty in
accordance with the valuation model for its initial recognition. The remaining of the evaluation deducted by the actual investment made by minority shareholders was recognised as the financial liability- the convertible duty. In November 2014, the Company acquired the minoritystockholders’ investment in Hefei Xinsheng
amounting to RMB 1,000,000,000 and derecognised the book value of the relevant financial liabilities. As at 31 December 2016, the Company used effective interest rate method to evaluate the amortised costs to be RMB 3,718,609,945 for the value of financial liability- the acquisition duty, the remaining equity investment attributable to minority shareholders amounting to RMB 3,000,000,000. The value of the
financial liability- the convertible duty was recognised at its initial investment costs for RMB 105,109,364.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Equity investment with redemption provisions
Pursuant to the first, second and third agreements regarding the investment in the 8.5th generation semiconductor display device production line of Fuzhou signed among Fuzhou Government, Fuzhou Construction, China Development Bond Co., LTD (“CDB Development Fund”) and the Company, CDB Development Fund
invested RMB 1,700,000,000, RMB 800,000,000 and RMB 800,000,000 as paid-in capitals in Fuzhou BOE Optoelectronics Technology Co., Ltd (Fuzhou BOE) in
December 2015, December 2015 and February 2016 respectively. CDB
Development Fund has the right to demand the Company to repurchase all the
equity generated from the investment at the same price as its initial investment and the Company should guarantee that CDB Development Fund enjoys an annualized yield at1.2% of the total investment through dividend distribution. The Company recognised all the mentioned investments from CDB Development Fund as other non-current liabilities and recognised interest expense of RMB 36,400,000 calculated based on annualized yield at the end of 2016.
(3) Others
The subsidiary of the Group acquired special support fund for construction projects and fixed asset acquisition. The special support fund can be reclassified as
government grant related to assets once the construction projects are reviewed and verified as qualified. Otherwise, the principal and interests which are calculated at the bank interest rate of the current period from the date of capital appropriation should be repaid. During the agreement period, the Group categorised the fund as Other non-current liabilities.
34. Share capital
Balance at the
beginning of the Balance at the end year of the year Total shares 35,153,067,743 35,153,067,743 35. Capital reserve
Balance at the
beginning of the Additions during Reductions during Balance at the end year the year the year of the year Share premiums 38,115,575,868 - - 38,115,575,868 Other capital reserves
- Equity investment
provision 259,913,487 - - 259,913,487 - Acquisition of
minority interests 635,655,430 11,579,348 - 647,234,778 - Other changes of
investees 7,755,682 4,730,773 3,853,059 8,633,396 Total 39,018,900,467 16,310,121 3,853,059 39,031,357,529
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 36. Treasury shares
Balance at the
beginning of the Additions during Reductions during Balance at the end Item year the year the year of the year Repurchase of
unrestricted A-share - 226,480,961 - 226,480,961 Repurchase of
unrestricted B-share - 87,869,863 - 87,869,863 Total - 314,350,824 - 314,350,824 The Company utilised its own fund to repurchase the issued public shares through centralised biding in Shenzhen Stock Exchange on 20 September 2016. As at 31 December 2016, the Company have repurchased 88,692,299 unrestricted A-share and 43,848,526 unrestricted B-share. After the repurchase is completed, the
repurchased shares will be deregistered within 6 months of the repurchase in
accordance with the requirements of Company Law.
37. Other comprehensive income
Movements during the year
Balance at the
beginning of Less: Balance at the the year Previsously After-tax After-tax end of the year attributable to recognised amount amount attributable to shareholders amount attributable to attributable to shareholders of the parent Before-tax transferred to Less: income the parent the minority of the parent Item company amount profit or loss tax company shareholders company Other comprehensive income that
will be reclassified to profit or loss
Including: Share of other
comprehensive
income of equity
method investments 26,510,264 42,053,252 - - 42,053,252 - 68,563,516 Gain or loss arising
from changes in fair
value of
available-for-sale
financial assets 124,321,870 2,140,108 18,252,133 89,037 (16,836,007) 634,945 107,485,863 Translation difference
from foreign financial
statements (60,679,125) 6,207,006 - - (39,651,551) 45,858,557 (100,330,676) Total 90,153,009 50,400,366 18,252,133 89,037 (14,434,306) 46,493,502 75,718,703 38. Surplus reserve
Balance at the
beginning of the Additions during Reductions during Balance at the end Item year the year the year of the year Statutory surplus reserve 302,570,750 150,897,796 - 453,468,546 Discretionary surplus reserve 289,671,309 - - 289,671,309 Total 592,242,059 150,897,796 - 743,139,855
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 39. Retained earnings
Item 2016 2015 Retained earnings at the beginning of
the year 2,630,912,286 1,434,745,673 Add: Net profits for the year attributable
to shareholders of the Company 1,882,571,674 1,636,270,488 Less: Appropriation for statutory surplus
reserve 150,897,796 88,573,198 Dividends to ordinary shares 351,530,677 351,530,677 Retained earnings at the end of the
year 4,011,055,487 2,630,912,286 As at 31 December 2016, the consolidated retained earnings attributable to the
Company included an appropriation of RMB 807,192,450 to surplus reserve by theCompany’s subsidiaries (2015: RMB 1,451,832,263).
According to the AnnualShareholders’ Meeting for 2015 held on 20 May 2016, the Company distributed cash dividends to all shareholders on 28 June 2016, with RMB 0.1 every 10 shares and a total dividend of RMB 351,530,677 distributed.
40. Operating income and operating costs
2016 2015
Income Cost Income Cost Principal activities 66,518,894,197 54,744,486,677 46,808,437,681 37,383,502,981 Other operating activities 2,376,764,766 1,841,209,414 1,815,294,631 1,371,587,685 Total 68,895,658,963 56,585,696,091 48,623,732,312 38,755,090,666 Details of operating income:
2016 2015 Operating income from principal
activities
- Sales of goods 66,518,894,197 46,808,437,681 Other operating income
- Sales of raw materials 1,377,253,263 899,663,002 - Rental income of investment
properties 805,736,949 700,499,244 - Others 193,774,554 215,132,385 Total 68,895,658,963 48,623,732,312 Information on income, expenses and profit of principal activities has been included in Note XIII.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 41. Taxes and surcharges
2016 2015 Business tax 15,807,478 32,870,880 City maintenance and construction
tax 129,074,343 135,042,622 Education surcharge and local
education charge 92,429,674 96,995,837 Real estate tax 138,000,971 - Land use tax 26,748,602 - Stamp duty 52,130,827 - Others 5,072,038 10,889,077 Total 459,263,933 275,798,416 In accordance with Notice of Ministry of Finance on Promulgation of the Regulations on Accounting Treatment of Value-added Tax (Cai Kuai[2016] No. 22), taxes such as real estate tax, land use tax, license tax for vehicles and vessels, stamp tax
should be recorded in the tax and surcharge from 1 May 2016.
42. Selling and distribution expenses
2016 2015 Staff cost 370,619,778 274,041,738 Logistics 347,897,805 240,430,388 Warranty provisions 958,418,943 480,703,981 Other expenses 307,425,395 294,862,579 Total 1,984,361,921 1,290,038,686
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 43. General and administrative expenses
2016 2015 Staff cost 1,246,903,134 810,284,723 Depreciation and amortisation 212,598,319 185,533,307 Research and development
expense 2,619,111,248 2,187,548,666 Repair expense 800,135,647 727,044,555 Other expenses 739,695,304 765,366,948 Total 5,618,443,652 4,675,778,199 44. Financial expenses
2016 2015 Interest expenses from loans 2,349,432,222 1,885,066,434 Less: Borrowing costs capitalised 326,691,880 533,424,651 Interest income from deposits (533,341,012) (725,634,009) Net exchange losses 754,759,625 815,250,986 Other financial expenses 54,957,942 54,754,420 Total 2,299,116,897 1,496,013,180 The interest rate per annum, at which the borrowing costs were capitalised by the Group, was2.75% -5.13% (2015:2.43% -4.97%) for the year.
45. Impairment losses
2016 2015 Bad debts (reversal) / loss (18,890,107) 194,368 Inventories 1,374,128,536 1,362,645,452 Long-term equity investments 199,524,795 - Fixed assets 39,725,329 1,660,332 Total 1,594,488,553 1,364,500,152
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 46. Investment income
2016 2015 Long-term equity investments
(loss) / income under equity method (15,121,347) 4,748,739 Investment income from disposal of
long-term equity investment 6,107,937 - Investment loss from disposal of
financial assets measured at fair
value through profit or loss (20,988,941) - Including: Financial asets held for
trading (20,988,941) - Investment income from disposal of
available-for-sale financial assets 11,921,601 - Investment income from holding
available-for-sale financial assets 10,822,410 9,245,239 Investment income from wealth
management products on maturity 158,264,949 173,197,708 Including: Reversal of other
comprehensive income 21,473,098 30,095,798 Total 151,006,609 187,191,686 47. Non-operating income
(1) Non-operating income by item is as follows:
Amount recognised in extraordinary gain and loss in Item 2016 2015 2016 Total gains from disposal of
non-current assets 11,206,342 3,026,374 11,206,342 Including: Disposal of fixed
assets 5,076,889 3,026,374 5,076,889 Disposal of
intangible assets 5,053,946 - 5,053,946 Government grants 1,914,531,603 1,045,101,727 1,914,531,603 Others 160,228,373 34,589,132 160,228,373 Total 2,085,966,318 1,082,717,233 2,085,966,318
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Details of government grants
Item 2016 2015 Relate to assets
The 8.5th generation of TFT- LCD
production line 176,026,102 156,636,126 The 6th generation of TFT-LCD
production line 69,599,767 68,571,429 Subsidies for scientific research and
development 207,278,353 207,672,737 Sub-total 452,904,222 432,880,292 ----------------------- ----------------------- Relate to income
Subsidies for scientific research and
development 1,461,627,381 612,221,435 Sub-total 1,461,627,381 612,221,435 ----------------------- ----------------------- Total 1,914,531,603 1,045,101,727 48. Non-operating expenses
Amount recognised in extraordinary gain and loss in Item 2016 2015 2016 Total losses from disposal of
non-current assets 64,068,631 11,376,698 64,068,631 Including: Losses from
disposal of fixed
assets 64,017,019 11,376,698 64,017,019 Losses from
disposal of
intangible assets 51,612 - 51,612 Donations provided 2,719,012 4,948,561 2,719,012 Others 12,074,125 6,853,556 12,074,125 Total 78,861,768 23,178,815 78,861,768
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 49. Income tax expenses
Note 2016 2015 Current tax expenses for the year
based on tax law and
corresponding regulations 492,415,785 325,421,338 Changes in deferred tax assets /
liabilities (1) (25,187,469) 49,711,847 Total 467,228,316 375,133,185 (1) The analysis of deferred tax assets / liabilities is set out below:
2016 2015 Origination and reversal of
temporary differences (25,187,469) 49,711,847 (2) Reconciliation between income tax expenses and accounting profit is as follows: 2016 2015 Profit before taxation 2,512,399,075 2,013,243,117 Expected income tax expenses at a tax
rate of15% 376,859,861 301,986,467 Add: Effect of different tax rates applied
by subsidiaries 46,714,771 3,843,487 Tax effect of non- deductible
costs, expenses and losses 29,725,849 37,930,558 Tax effect of weighted deduction
and tax preference (164,389,739) (203,814,433) Utilisation of prior year tax losses (34,812,379) (57,887,723) Tax effect of deductible losses of
deferred tax assets not
recognised 50,457,430 131,240,811 Tax effect of temprary deductible
temporary differences of
deferred tax assets not
recognised 162,672,523 161,834,018 Income tax expenses 467,228,316 375,133,185
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 50. Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit of the
Company attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding; The Group does not have any potential dilutive ordinary shares for the listed years.
2016 2015 Consolidated net profit attributable to
ordinary shareholders of the Company 1,882,571,674 1,636,270,488 Weighted average number of ordinary
shares outstanding (share) 35,132,740,903 35,255,569,283 Basic earnings per share
(RMB / share) 0.054 0.046 Weighted average number of ordinary shares is calculated as follows:
2016 2015 Issued ordinary shares at the beginning of
the year 35,153,067,743 35,289,637,574 Weighted average number of ordinary
shares issued in current period - - Effect of shares repurchased (20,326,840) (34,068,291) Weighted average number of ordinary
shares at the end of the year 35,132,740,903 35,255,569,283
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 51. Notes to cash flow statement
(1) Supplement to cash flow statement
2016 2015 a. Reconciliation of net profit to cash
flows from operating activities:
Net profit 2,045,170,759 1,638,109,932 Add: Provisions for impairment of
assets 1,594,488,553 1,364,500,152 Depreciation of fixed assets and
investment property 10,043,152,205 7,799,457,709 Amortisation of intangible assets 263,565,131 239,631,840 Amortisation of long-term
deferred expenses 66,800,461 56,193,811 Gains from disposal of fixed
assets, intangible assets, and
other long-term assets (11,206,342) (3,026,374) Losses from scrapping of fixed
assets and intangible assets 64,068,631 11,376,698 Gains from share acquisition (105,228,293) (163,082) Financial expenses 3,054,587,745 980,021,974 Income arising from investments (151,006,609) (187,191,686) Gains from Government grants (1,056,995,722) (432,880,292) (Increase) / decrease in deferred
tax assets (28,829,528) 21,674,405 Increase in deferred tax liabilities 3,944,619 32,778,710 Increase in gross inventories (2,266,461,601) (3,807,241,082) Increase in operating receivables (9,061,142,249) (506,006,281) Increase in operating payables 5,618,379,360 3,286,149,011 Net cash inflow from operating
activities 10,073,287,120 10,493,385,445 b. Change in cash and cash equivalents:
Cash and cash equivalents at the end
of the year 49,354,810,388 36,182,738,217 Less: Cash and cash equivalents at
the beginning of the year 36,182,738,217 36,504,707,160 Net increase / (decrease) in cash and
cash equivalents 13,172,072,171 (321,968,943)
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Information on acquisition of subsidiaries during the current year:
Information on acquisition of subsidiaries:
2016 2015 Consideration of acquiring subsidiaries 1,172,780,300 759,738,513 Cash and cash equivalents paid during
the year for acquiring subsidiaries 1,172,780,300 759,738,513 Including: Viratronix International Co.,
Ltd. 1,172,360,000 - Beijing BOE Property
Development Co., Ltd. 420,300 - Fuzhou BOE Optoelectronics
Technology Co., Ltd. - 509,500,000 BOE Healthcare Investment&
Management Co., Ltd. - 250,238,513 Less: Cash and cash equivalents held
by subsidiaries 3,575,894,762 354,894,116 Including: Viratronix International Co.,
Ltd. 1,825,401,971 - Hefei BOE Display Technology
Co., Ltd. 1,724,618,836 - Beijing BOE Property
Development Co., Ltd. 25,873,955 - Fuzhou BOE Optoelectronics
Technology Co., Ltd. - 346,999,560 BOE Healthcare Investment&
Management Co., Ltd. - 7,894,556 Net cash received from / paid for the
acquisition of subsidiaries (2,403,114,462) 404,844,397 For non-cash assets and liabilities held by the acquired subsidiaries and other
business units, refer to Note VI.1(3).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Information on disposal of subsidiaries:
2016 Consideration from disposing subsidiaries: 18,590,000 Cash and cash equivalents received during the year for
disposing subsidiaries during the year 18,590,000 Including: Beijing BOE Changhong Network Science
& Technology Co., Ltd. 18,590,000 Less: Cash and cash equivalent held by diposed
subsidiaries 29,392,558 Including: Beijing BOE Changhong Network Science
& Technology Co., Ltd. 28,711,286 Beijing BOE Digital Technology Co., Ltd. 89,059 BOE Taiwan Inc. 592,213 Net cash received for disposing subsidiaries (10,802,558) Non-cash assets and liabilities held by disposed
subsidiaries and other business units
- Current assets 22,499,052 - Non-current asssets 304,238 - Current liabilities 19,150,640 - Other non-current liabilities - (3) Details of cash and cash equivalents
2016 2015 Cash on hand 707,796 253,600 Bank deposits available on demand 49,170,616,669 36,182,484,617 Other monetary funds available
on demand 183,485,923 - Cash and cash equivalents at the
end of year 49,354,810,388 36,182,738,217 Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted usage.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 52. Assets with restrictive ownership title or right of use
Balance at the
beginning of the Additions during Decreases during Balance at the
Item year the year the year end of the year Reason for restriction Cash at bank and Pledged as collateral and on hand 2,684,123,619 9,112,226,181 2,998,342,965 8,798,006,835 margin deposit Discounted with recourse, endorsed with resource and Bills receivable 51,563,586 879,582,674 377,080,099 554,066,161 pledged for drawing bill Investment
properties 170,325,299 30,299,557 6,227,418 194,397,438 Mortgaged as collateral Fixed assets 51,516,583,058 15,629,932,827 8,043,158,644 59,103,357,241 Mortgaged as collateral Construction in
progress 10,479,844,601 3,484,318,546 11,385,352,677 2,578,810,470 Mortgaged as collateral Intangible assets 668,801,276 351,196,755 57,209,100 962,788,931 Mortgaged as collateral Total 65,571,241,439 29,487,556,540 2 2,867,370,903 72,191,427,076
53. Provisions for impaiement of assets
Decreases during the year
Balance at the Additions Disposals due Balance at the beginning of the during the to business end of the Item Note year year Reversals Write-offs combinations year Receivables V.3,5 56,151,099 5,656,976 24,547,083 5,235,840 - 32,025,152 Inventories V.6 1,035,526,085 1,782,390,160 386,545,753 1,317,149,145 30,769 1,114,190,578 Available-for-sale
financial assets V.8 150,279,655 - - - - 150,279,655 Held-to-maturity
investments 17,960,946 - - - - 17,960,946 Long-term equity
invesments V.9 337,612,177 199,524,795 - - - 537,136,972 Fixed assets V.11 646,119,997 39,725,329 - 20,228,030 - 665,617,296 Construction in
progress V.12 1,311,456 - - - - 1,311,456 Intangible assets V.13 471,453 - - - - 471,453 Goodwill V.1 4 4,423,876 - - - - 4,423,876 Total 2,249,856,744 2 ,027,297,260 411,092,836 1,342,613,015 30,769 2 ,523,417,384 For reasons of recognition of impairment losses, refer to the notes of relevant assets.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 VI. Change of consolidation scope
1. Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
Acquiree- from acquisition date 31 December 2016
Acquisition time Net cash Name of the of equity Cost of equity Shareholding Acquisition Acquisition Basis of acquisition inflow / subsidiary investment investment acquired method date date determination Income Net profit (outflow)(%)
Entering into
Hefei BOE unified action
Display agreement and
Technology 30 November Not Not Not 30 November obtaining actual
Co., Ltd. 2016 Applicable Applicable Applicable 2016 control 8,019 1,586,766 4,134,039,396 Owning more than
Varitronix half of the
acquiree’s Board
International Business seats with actual
Limited 28 April 2016 1,172,360,000 54.70% combination 28 April 2016 control 1,301,427,936 37,037,859 (282,476,239) Beijing BOE
Property
Closing date of the
Management Business share agreed in
Co., Ltd. 13 July 2016 420,300 100% combination 13 July 2016 the agreement 97,919,353 18,828,512 25,642,327 Hefei BOE Display Technology Co., Ltd. (“Hefei Display”) was established in Hefei in 2015 and mainly engaged in researching and developing, manufacturing and selling semiconductor display devices, complete machines and related products. Before the acquisition date, the Company, Hefei Construction Investment& Holding Co., Ltd. and Hefei Xinping Industry Investment Fund (Limited Partnership) held7.27%,65.46% and27.27% of HefeiDisplay’s capital shares, respectively. The controlling shareholder of Hefei Display was Hefei Construction Investment& Holding Co., Ltd. According to the Articles of Association, the board of directors consists of five
directors, three of whom are recommended by the Company and the resolutions of board meetings must be approved by more than two thirds of all directors from the board of directors. Therefore, the Company has significant influence over Hefei
Display, and accounts for this investment as a joint venture using the equity method. In November 2016, the Company, Hefei Construction Investment& Holding Co., Ltd. and Hefei Xinping Industry Investment Fund (Limited Partnership) concluded an agreement to act as concerted action in accordance with the wishes of the Company and exercise their voting rights in accordance with the opinions of the Company, unconditionally and irrevocably. Therefore, the Company has control over Hefei
Display. The book value of the equity investment held by the Company at the
acquisition date is RMB 531,765,324. The Company transferred the capital reserves related to shares held to the investment income of RMB 3,853,059 in the
consolidated financial statements at the acquisition date.
Varitronix International Limited was established in Bermuda in 1978 with its head office in Hong Kong and mainly engaged in designing, manufacturing and selling of LCD monitors and related products. Before the business combination, the
controlling shareholder of Varitronix International Limited is Gao Zhenshun. BOE Technology (HK) Limited, which is a subsidiary of the Company, subscribed for 400 millions of newly shares with voting rights issued by Varitronix International Limited with cash in April 2016. The subscription price was HKD 3.5 per share. After the subscription, BOE Technology (HK) Limited holds54.7% shares of Varitronix
International Limited.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Beijing BOE Property Management Co., Ltd. was established in Beijing in November 2009 with its head office located at Room 101, Floor 4, Building 55, No. 10,
Jiuxianqiao Road, Chaoyang District, Beijing and mainly engaged in property
management, engineering project management, engineering consultation, landscape engineering design, food and beverage management, agent business of real estates, real estate consultation, lease of office buildings and other activities (Operation of the projects, subject to the approval by related authorities in accordance with laws, are carried out based on the content approved). Before the business combination, the parent company of Beijing BOE Property Management Co., Ltd. is the Labour Union ofBeijingM· atsushita Color CRT Co.,Ltd.
(2) Acquisition costs and goodwill
Hefei BOE Display Technology Beijing BOE Property Co., Ltd. Varitronix International Limited Management Co., Ltd. Acquisition costs Book value Fair value Book value Fair value Book value Fair value Cash - - 1,172,360,000 1,172,360,000 420,300 420,300 Equity interests held
before acquisition
date 531,765,324 531,765,324 - - - - Total acquisition cost 531,765,324 1,172,360,000 420,300 Less: Fair value share of
identifiable net
assets acquired 531,765,324 1,277,588,293 420,300 Amount of acquisition
cost less than share
of the fair value of
the identifiable net
assets acquired - (105,228,293) - (3) Identifiable assets and liabilities of acquirees at the acquisition dates
Hefei BOE Display Technology Beijing BOE Property Co., Ltd. Varitronix International Limited Management Co., Ltd. Book value Fair value Book value Fair value Book value Fair value Assets:
Current assets 3,821,372,125 3,821,372,125 2,717,780,109 2,717,780,109 38,485,563 38,485,563 Non-current assets 5,460,410,470 5,460,410,470 382,099,747 419,702,698 2,118,278 2,118,278 Liabilities:
Current liabilities 1,517,845,143 1,517,845,143 789,751,021 789,796,426 40,183,541 40,183,541 Non-current liabilities 447,924,100 447,924,100 6,380,743 12,021,186 - - Net assets 7,316,013,352 7,316,013,352 2,303,748,092 2,335,665,195 420,300 420,300 Less: Non-controlling
interests 6,784,248,028 6,784,248,028 1,043,597,886 1,058,076,902 - - Net assets acquired 531,765,324 531,765,324 1,260,150,206 1,277,588,293 420,300 420,300 The fair value of the above identifiable assets existing in active market is determined based on their prices in the active market. For the identifiable assets which do not exist in active market, the fair value is determined based on the market prices of the assets of the similar kind or of the same kind; if there is not any assets of the similar kind or of the same kind, the fair value is determined under valuation.
The fair value of the above identifiable liabilities is determined based on present value of the amounts payable or amounts paid.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2. Disposal of subsidiaries
Losing control in the single disposal of investment in the subsidiary
Investment income or loss transferred from other Difference between the Method and key comprehensive consideration received Proportion of Carrying amount Fair value of Gain or loss from assumptions for income related and the related share remaining of remaining remaining equity remeasurement determining the to previous Basis for of net assets in shareholding equity interests interests on the of remaining fair value of equity Shareholding Date of losing determining date consolidated financial on the date of on the date of date of losing equity interests to remaining equity investment in Name Consideration being disposed Disposal method control of losing control statements losing control losing control control fair value interests subsidiaires(%)
Beijing BOE Changhong Completing the
Network Science& equity transfer
Technology Co., Ltd. 18,590,000 51% Transfer 16 August 2016 procedures 1,177,864 - - - - - - In return of losing the control of Beijing BOE Changhong Network Science& Technology Co., Ltd., The Group obtained gain of RMB 1,177,864, stated in the investment income in the consolidated financial statements.
3. Othere reasons for change of consolidation scope
(1) New-established subsidiaries
The Company established 8 subsidiaries, namely Chongqing BOE Smart Electronic System Co., Ltd., Huaining Dongfangduxiu New Energy Co., Ltd., BOE India Private Limited, Hefei BOE Vision-electronic Technology Co., Ltd., BOE Taiwan Inc., Beijing BOE Technology Development Co., Ltd., BOE Smart Technology Co., Ltd., and Hefei BOE Zhuoyin Technology Co., Ltd. The shareholding percentage of the above companies is100%.
(2) Settlement of subsidiaries
Beijing BOE Digital Technology Co., Ltd. and OE Taiwan Inc., the holding subsidiaries of the Company, entered into settlement in August 2016 and September, 2016 respectively.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 VII. Interests in other entities
1. Interests in subsidiaries
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Shareholding (or simila||rge||
|||||||equity interest) percenta||||
|Name of the Subsidiary|||Registration place|Business Nature|Registered capital|Direct|Indirect|||
|Beijing BOE Optoelectronics Technology Co.,||||||||||
|Ltd.||Beijing, China|Beijing, China|Research, development, and manufacture of TFT-LCD|USD 649,110,000|82.49%|17.51%||Investment|
|Chengdu BOE Optoelectronics Technology Co.|,|||Research, development, manufacture, and sale of new display devicesand components RMB 20,000,000,000Investing, researching, manufacturing and promoting TFT-LCD productsand accessory products RMB 9,000,000,000|||||Business combinations involving enterprises|
|Ltd. (Chengdu Optoelectronics)||Chendgu, China|Chendgu, China|||100%|-||not under common control|
||||||||||Business combinations involving enterprises|
|Hefei BOE Optoelectronics Technology Co., Ltd|.|Hefei, China|Hefei, China|||100%|-||not under common control|
|Beijing BOE Display Technology Co., Ltd. (BOE||||||||||
|Display)||Beijing, China|Beijing, China|Development of TFT-LCD, manufacture and sale of TFT-LCD|RMB 17,882,913,500|97.17%|2.83%||Investment|
|Hefei Xinsheng Optoelectronics Technology Co|.,|||Investing, researching, manufacturing and promoting TFT-LCD productsand accessory products RMB 19,500,000,000|||||Business combinations involving enterprises|
|Ltd.||Hefei, China|Hefei, China|||84.59%|0.03%||not under common control|
|Erdos Yuansheng Optoelectronics Co., Ltd.||||||||||
|(Yuansheng Optoelectronics)||Erdos, China|Erdos, China|The production and operation of AMOLED and relevant products|RMB 11,804,000,000|100%|-||Investment|
|||||Research, development, manufacture and sales of semiconductor display||||||
|Chongqing BOE Optoelectronics Technology C|o.,|||devices, machine and relevant products, import and export of goods and|||||Business combinations involving enterprises|
|Ltd. (Chongqing BOE)||Chongqing, China|Chongqing, China|technical consulting|RMB 19,226,000,000|81.80%|-||not under common control|
|Fuzhou BOE Optoelectronics Technology Co.,||||Investing, researching, manufacturing and promoting TFT-LCD products|||||Business combinations involving enterprises|
|Ltd. (Fuzhou BOE)||Fuzhou, China|Fuzhou, China|and accessory products|RMB 10,483,000,000|68.52%|-||not under common control|
|Beijing BOE Vision-electronic Technology Co.,||||||||||
|Ltd. (BOE Vision-electronic)||Beijing, China|Beijing, China|Research, manufacture and sales of LCD and terminal products of TV|RMB 1,750,000,000|100%|-||Investment|
|Beijing BOE Vacuum Electronics Co., Ltd.||Beijing, China|Beijing, China|Manufacture and sales of vacuum electronic products|RMB 35,000,000|55%|-||Investment|
|Beijing BOE Vacuum Technology Co., Ltd.||Beijing, China|Beijing, China|Manufacture and sales of vacuum products|RMB 32,000,000|100%|-||Investment|
|Beijing BOE Special Display Technology Co., Lt|d.|||||||||
|(Special Display)||Beijing, China|Beijing, China|Development of display products and sales of electronic products|RMB 100,000,000|100%|-||Investment|
|||||Engineering project management, real estate development, mobile||||||
|Beijing Yinghe Century Co., Ltd.||Beijing, China|Beijing, China|vehicle parking lot services and marketing research|RMB 233,105,200|100%|-||Investment|
|BOE Optical Science and technology Co., Ltd.||||Development, manufacture and sales of backlight and related parts and||||||
|(Optical Technology)||Suzhou, China|Suzhou, China|components for LCD|RMB 826,714,059|93.88%|-||Investment|
|BOE Hyundai LCD (Beijing) Display Technolog|y|||Development, manufacture and sales of liquid display for mobile||||||
|Co., Ltd.||Beijing, China|Beijing, China|termination|USD 5,000,000|75%|-||Investment|
|BOE (Hebei) Mobile Technology Co., Ltd. (BOE||||Manufacture and sales of mobile flat screen display technical products||||||
|Hebei)||Langfang, China|Langfang, China|and related services|RMB 1,358,160,140|100%|-||Investment|

BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Shareholding (or simila||rge||
|||||||equity interest) percenta||||
|Name of the Subsidiary||||||Direct|Indirect|||
|Beijing BOE Multimedia Technology Co., Ltd.||||Sales of computer software and Hardware, the numeral regards the||||||
|(BOE Multimedia)||Beijing, China|Beijing, China|audio frequency technology|RMB 400,000,000|100%|-||Investment|
|||||Design, consultation and services of solar battery, photovoltaic system,||||||
|Beijing BOE Energy Technology Co., Ltd. (BOE||||wing turbine system and photo-thermal system, and energy saving||||||
|Energy)||Beijing, China|Beijing, China|service|RMB 850,000,000|100%|-||Investment|
|Beijing BOE Smart Commerce Co., Ltd. (Beijing||||Technology promotion, property management, and sales of electronic||||||
|Smart Commerce)||Beijing, China|Beijing, China|products|RMB 10,000,000|100%|-||Investment|
|Beijing Zhongxiangying Technology Co., Ltd.||||Technology promotion, property management, and sales of electronic||||||
|(Beijing Zhongxiangying)||Beijing, China|Beijing, China|products|RMB 10,000,000|100%|-||Investment|
|Erdos Haosheng Energy Investment Co., Ltd.||||||||||
|(Haosheng Energy)||Erdos, China|Erdos, China|Energy investment|RMB 30,000,000|20%|80%||Investment|
|||||Processing, production, and sales of goods, primarily comprising sales of||||||
|||||precision electronic metal parts and semiconductor devices, in addition to||||||
|||||micromodules, microelectronic devices and electronic materials; import||||||
|BOE Semi-conductor Co., Ltd.||Beijing, China|Beijing, China|and export of goods|RMB 11,700,000|80.77%|-||Investment|
|BOE Optoelectronics Holding Co.,Ltd.|||Virgin Islands,|||||||
|(Optoelectronics Holding)||Hong Kong, China|British|||100%|-||Investment|
||||||||||Business combinations involving enterprises|
|Beijing ASAHI Electronic Materials Co., Ltd.||Beijing, China|Beijing, China|||100%|-||not under common control|
|BOE Healthcare Investment & Management Co|.,||||||||Business combinations involving enterprises|
|Ltd. (Healthcare Investment)||Beijing, China|Beijing, China|||100%|||not under common control|
|BeijingM·atsushita Color CRT Co., Ltd.|||||||||Business combinations involving enterprises|
|(Matsushita)||Beijing, China|Beijing, China|||88.80%|-||not under common control|
||||||||||Business combinations involving enterprises|
|Hefei BOE Display Technology Co,. Ltd.||Hefei China|Hefei China|||7.46%|-||not under common control|
|Beijing BOE Technology Development Co., Ltd.||||||||||
|(Technology Development)||Beijing, China|Beijing, China|||100%|-||Investment|
|BOE Smart Technology Co., Ltd. (Smart||||||||||
|Technology)||Beijing, China|Beijing, China|||100%|-||Investment|
|Hefei BOE Zhuoyin Science & Technology Co.,||||||||||
|Ltd. (Zhuoyin Science & Technology)||Hefei China|Hefei China|||100%|-||Investment|
|Beijing BOE Property Co., Ltd.||Beijing, China|Beijing, China|||70%|-||Investment|
|Beijing BOE Marketing Co., Ltd.||Beijing, China|Beijing, China|||100%|-||Investment|

BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 The movements of majorsubsidiaries’ paid-in capital during the year:
Balance at the
beginning of the Additions during Reduction Balance at the Name of the Subsidiary year the year during the year end of the year Chengdu BOE 2,830,000,000 8,500,000,000 - 11,330,000,000 Yuansheng Optoelectronics 6,904,000,000 4,900,000,000 - 11,804,000,000 Chongqing BOE 16,226,000,000 3,000,000,000 - 19,226,000,000 BOE Display 17,377,199,300 505,714,200 - 17,882,913,500 Optical Technology 364,068,929 160,000,000 - 524,068,929 BOE Hebei 558,160,140 500,000,000 - 1,058,160,140 BOE Energy 50,000,000 200,000,000 - 250,000,000 Optoelectronics Holding 210,894,285 87,041,182 - 297,935,467 Matsushita 1,240,754,049 - 570,000,000 670,754,049 BOE Vision-electronic 560,000,000 560,000,000 - 1,120,000,000 Hefei Display 7,333,000,000 1,636,000,000 - 8,969,000,000 Fuzhou BOE 2,250,000,000 8,233,000,000 - 10,483,000,000 Healthcare Investment 510,921,556 200,000,000 - 710,921,556 2. Transactions that cause changes in theGroup’s interests in subsidiaries but do not result in loss of control
Changes in theGroup’s interests in subsidiaries:
Before changes of After changes of interests interest Chongqing BOE 96.92% 81.80% Optical Technology 91.20% 93.88% Hefei Display 7.27% 7.46% In March 2016, Guotai Yuanxin Asset Management Co. Ltd. and Shenzhen Pingan Dahua Huitong Wealth Management Co., Ltd. increased capital contribution to
Chongqing BOE by RMB 1,700,000,000 and RMB 1,300,000,000, respectively.
The percentage of shares held by the Company in Chongqing BOE decreased from96.92% to81.80% after the capital increase.
The Company increased capital contribution to Optical Science and Technology by RMB 60,000,000 and RMB 100,000,000 respectively in April 2016 and September 2016. The percentage of shares held by the Company increased from91.20% to93.88% after the capital increase.
In November 2016, the Company, Hefei Construction Investment& Holding Co., Ltd. and Hefei Xinping Industry Investment Fund (Limited Partnership) concluded an agreement on concreted action to have control over Hefei Display. In December 2016, the Company and Hefei Xinping Industry Investment Fund (Limited
Partnership) increased capital contribution to Hefei Display by RMB 136,000,000 and RMB 1,500,000,000, respectively. The percentage of shares held by the Company in Hefei Display increased from7.27% to7.46% after the capital increase.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Impact from transactions with non-controlling interests and equity attributable to the shareholders of the Company:
Chongqing BOE Optical Technology Hefei Display Acquisition cost
- Cash - 160,000,000 136,000,000 Less: Share of net
assets in
subsidiaries
based on the
shares acquired 8,899,085 162,628,429 136,051,834 Difference (8,899,085) (2,628,429) (51,834) Including: Adjustment
on capital
reserve 8,899,085 2,628,429 51,834 3. Interests in associates
Please see Note V.9(2) for details of the summarised financial information of the associates.
No material restrictions on transfers of funds from investees to the Group.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 VIII. Risk related to financial instruments
The Group has exposure to the following risks from its use of financial instruments in the normal course of theGroup’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
- Other price risks
The following mainly presents information about theGroup’s exposure to each of the above risks and their sources, their changes during the year, and theGroup’s
objectives, policies and processes for measuring and managing risks, and their
changes during the year.
Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that the risks of
financial instruments have on theGroup’s financial performance. Based on such objectives, theGroup’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and theGroup’s
activities. The internal audit department of the Group undertakes both regular and ad-hoc reviews of risk management controls and procedures.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. TheGroup’s credit risk is primarily attributable to receivables. Exposure to these credit risks are monitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions. Management does not foresee any significant credit risks from these deposits and does not expect that these financial institutions may default and cause losses to the Group.
In respect of receivables, the Group has established a credit policy under which
individual credit evaluations are performed on all customers to determine the credit limit and terms applicable to the customers. These evaluations focus on the
customers’ financial position, the external ratings of the customers and the record of previous transactions. Receivables are due within 15 to 120 days from the date of billing. Debtors with balances that are past due are requested to settle all
outstanding balances before any further credit is granted. Normally, the Group does not obtain collateral from customers.
In monitoring customer credit risk, customers are grouped according to some factors, such as ageing and maturity date, etc.
TheGroup’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer rather than the industry, country or area in which the customers operate and therefore significant concentrations of credit risk arise primarily when the Group has significant exposure to individual customers. At the balance sheet date, the Group and theCompany’s accounts receivable and other receivables due from the top five customers account for40% and1% of the total receivables respectively (2015:38% and1%). In addition, the accounts receivable not overdue or impaired is mainly related to many clients whodon’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. As mentioned in Note XII, as at 31 December 2016, the Group does not provide any external guarantees which would expose the Group or the Company to credit risk.
(2) Liquidity risk
Liquidity risk is the risk that an enterprise may encounter deficiency of funds in
meeting obligations that are settled by delivering cash or another financial asset. The Company and its individual subsidiaries are responsible for their own cash
management, including short term investment of cash surpluses and the raising of loans to cover expected cash demands (subject to approval by theCompany’s board when the borrowings exceed certain predetermined levels). TheGroup’s policy is to regularly monitor its liquidity requirements and its compliance with lending
covenants, to ensure that it maintains sufficient reserves of cash, readily realisable marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 At the balance sheet date, rest of contractual term and the earliest payment date required of the contractual cash flows belonging to theGroup’s financial liabilities which have not been discounted, including interests calculated on contractual
interest rate (if the interest rate is floating, the actual interest rate as at 31 December is adopted) are as follows:
Contract cash flow not discounted in the year of 2016
Carrying amount at Within 1 year or balance on demand 1 to 2 years 2 to 5 years Over 5 years Total sheet date Financial liabilities
Short-term loans 5,051,842,272 - - - 5,051,842,272 4,916,965,507 Bills payable 640,262,461 - - - 640,262,461 640,262,461 Accounts payable 13,835,615,665 - - - 13,835,615,665 13,835,615,665 Interest payable 676,358,748 - - - 676,358,748 676,358,748 Dividends payable 9,651,170 - - - 9,651,170 9,651,170 Other payables 14,395,525,248 - - - 14,395,525,248 14,395,525,248 Non-current
liabilities due
within one year 3,800,756,577 - - - 3,800,756,577 3,684,236,935 Long-term loans 1,290,145,169 1,842,519,105 12,256,912,204 37,703,989,254 53,093,565,732 49,885,166,211 Long-term
payables 184,320,143 598,914,389 766,317,278 - 1,549,551,810 1,261,446,565 Bonds payable 68,178,082 315,000,000 10,945,000,000 - 11,328,178,082 9,956,719,508 Total 39,952,655,535 2,756,433,494 23,968,229,482 37,703,989,254 1 04,381,307,765 99,261,948,018 Contract cash flow not discounted in the year of 2015
Carrying amount at Within 1 year or balance on demand 1 to 2 years 2 to 5 years Over 5 years Total sheet date Financial liabilities
Short-term loans 5,191,079,555 - - - 5,191,079,555 5,091,974,830 Bills payable 343,277,037 - - - 343,277,037 343,277,037 Accounts payable 9,849,935,031 - - - 9,849,935,031 9,849,935,031 Interest payable 348,173,849 - - - 348,173,849 348,173,849 Dividends payable 9,651,170 - - - 9,651,170 9,651,170 Other payables 8,864,929,878 - - - 8,864,929,878 8,864,929,878 Non-current
liabilities due
within one year 2,334,938,435 - - - 2,334,938,435 2,283,535,113 Long-term loans 1,543,202,766 5,041,962,653 31,062,688,027 4,028,762,598 41,676,616,044 36,341,198,145 Total 28,485,187,721 5,041,962,653 31,062,688,027 4,028,762,598 68,618,600,999 63,132,675,053 (3) Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fair value interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate
interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interest rate risk.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (a) As at 31 December, the Group held the following interest-bearing financial
instruments:
Fixed rate instruments:
2016 2015
Real interest Real interest
Item rate Amount rate Amount Financial assets
- Cash at bank and on hand 1.10%~2.75% 27,271,387,386 1.10%~3.10% 22,631,183,057 Financial liabilities
- Short-term loans 1.20%~5.00% (2,003,425,507)0.72%~5.62% (460,163,736) - Non-current liabilities due
within one year 2.33%~5.94% (206,116,992) 3.90% (670,000,000) - Bonds payable 3.15% (9,956,719,508) - - - Long-term payables 5%~5.04% (1,261,446,565) - - - Long-term loans 0.00%~7.68% (16,698,135,000)0.00%~7.68% (2,861,755,000) Total (2,854,456,186) 18,639,264,321 Variable rate instruments:
2016 2015
Real interest Real interest
Items rate Amount rate Amount Financial assets
- Cash at bank and on hand0.30%~2.025% 30,880,722,041 0.35% 16,235,425,179 Financial liabilities
0.47%
- Short-term loans LIBOR+2.6% (2,913,540,000)~LIBOR+2.8% (4,631,811,094) - Non-current liabilities due LIBOR+3.0% LIBOR+3.2%
within one year ~4.30% (3,478,119,943) ~5.94% (1,613,535,113)LIBOR+2.0% LIBOR+2.7%
- Long-term loans ~4.3% (33,187,031,211) ~5.94% (33,479,443,145) Total ( 8,697,969,113) (23,489,364,173) (b) Sensitivity analysis
As at 31 December 2016, it is estimated that a general increase / decrease of 100 basis points in interest rates of variable rate instrument, with all other variables held constant, would decrease / increase theGroup’s net profit and equity by RMB
81,370,000 (2015: RMB 200,740,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on the net profit and equity is estimated as an annualised impact on interest expense or income of such a change in interest rates. The analysis is performed on the same basis for the previous year.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) Foreign currency risk
In respect of cash at bank and on hand, accounts receivables and payables,
short-term loans and other assets and liabilities denominated in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances.
(a) TheGroup’s exposure as at 31 December to currency risk arising from recognised foreign currency assets or liabilities is mainly denominated in US dollar. The
amount of the USD exposure is net liabilities exposure USD 181,256,436 (2015 net liabilities exposure: USD 3,506,829,240), translated into RMB 1,257,375,894 (2015: RMB 22,771,925,816), using the spot rate at the balance sheet date. Differences resulting from the translation of the financial statements denominated in foreign
currency are excluded.
(b) The following are the exchange rates for Renminbi against US dollar applied by the Group:
Average rate Reporting date mid-spot rate 2016 2015 2016 2015 USD 6.7153 6.3063 6.9370 6.4936 Assuming all other risk variables remained constant, a5% strengthening / weakening of the Renminbi against the US dollar at 31 December would have increased /
decreased both theGroup’s equity and net profit by the amount RMB 99,443,997 (2015: RMB 943,464,255).
The sensitivity analysis above assumes that the change in foreign exchange rates have been applied to re-measure those financial instruments held by the Group
which expose the Group to foreign currency risk at the balance sheet date. The analysis excludes differences that would result from the translation of the financial statements denominated in foreign currency. The analysis is performed on the same basis for the previous year.
(5) Other price risks
Other price risks mainly include stock price risk and commodity price risk etc..
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 IX. Fair value disclosure
The level in the fair value hierarchy within which the fair value measurement is
categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. The levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for underlying assets or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
31 December 2016
Level 1 Level 2 Level 3
Fair value Fair value Fair value
Item measurement measurement measurement Total Recurring fair value measurements
- Wealth management products - - 60,267,110 60,267,110 - Available-for-sale debt
instrument 3,670,223 - 8,677,807 12,348,030 - Available-for-sale equity
instrument 381,888,121 - - 381,888,121 Total assets measured at fair value
on a recurring basis 385,558,344 - 68,944,917 454,503,261 31 December 2015
Level 1 Level 2 Level 3
Fair value Fair value Fair value
Item measurement measurement measurement Total Recurring fair value measurements
- Wealth management products - - 3,620,970,828 3,620,970,828 - Available-for-sale equity
instrument 305,520,857 - - 305,520,857 Total assets measured at fair value
on a recurring basis 305,520,857 - 3,620,970,828 3,926,491,685 The fair value of available-for-sale equity instruments is determined by market price on the balance sheet date. The fair value of financial products is determined using discounted cash flow method, whose amortised cost is not significantly different from the fair value on the balance sheet fate. The fair value of available-for-sale debt
instruments is determined by market price on the balance sheet date and discounted cash flow method, respectively.
During the year ended 31 December 2016, there were no changes in valuation
technique of fair value. As at 31 December 2016, there were no significant
discrepancies between the book value and fair value of all the financial assets and financial liabilities except the above fair value of available-for-sale equity instrument and wealth management products.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 X. Related parties and related party transactions
1. Information about the parent of the Company
Ultimate Shareholding Percentage of controlling Company percentage voting rights party of the name Registered place Business nature Registered capital (%) (%) Company Electronics No. 12, Jiuxianqiao Operation and RMB 0.78% 11.21% Yes Holdings Road Chaoyang management of 1,307,370,000
District, Beijing state-owned assets
within
authorisation, etc.
2. Information about the subsidiaries of the Company
For information about the subsidiaries of the Group, refer to Note VII.1.
3. Information about associates of the Company
Associates that have related party transactions with the Group during this year or the previous year are as follows:
Name of entity Relationship with the Company Beijing Nissin Electronics Precision
Component Co., Ltd. Associate of the Group and the Company Beijing Nittan Electronic Co., Ltd. Associate of the Group and the Company TPV Display Technology (China) Limited Associate of the Group and the Company Beijing Xindongneng Investment
Management Co., Ltd. Associate of the Group and the Company Shenzhen Yunyinggu Technology Co.,
Ltd. Associate of the Group and the Company
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 4. Information on other related parties
Name of other related parties Related party relationship Beijing Sevenstar Front Electronics Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Sevenstar Electronics Co., Enterprises that are controlled by the Ltd. Company’s ultimate holding company Beijing Sevenstar Integrated Circuit Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Sevenstar Science and Enterprises that are controlled by the Technology Co., Ltd. Company’s ultimate holding company Beijing Sevenstar Huasheng Enterprises that are controlled by the Electronics& Machinery Co., Ltd. Company’s ultimate holding company Beijing Sevenstar-hitech Electronics Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Dongdian Industrial Enterprises that are controlled by the Development Co., Ltd. Company’s ultimate holding company Beijing Zhaowei Electronic Group Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Zhaowei Technology Enterprises that are controlled by the Development Co., Ltd. Company’s ultimate holding company Beijing Jile Electronics Group Co., Enterprises that are controlled by the Ltd. Company’s ultimate holding company Beijing Orient Electronics Material Enterprises that are controlled by the Corp. Company’s ultimate holding company Beijing Zhengdong Electronic Power Enterprises that are controlled by the Group Co., Ltd. Company’s ultimate holding company Beijing PCB Square Corporation Enterprises that are controlled by theCompany’s ultimate holding company Beijing Yandong Microelectronic Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Electronic City Co., Ltd. Enterprises that are controlled by theCompany’s ultimate holding company Beijing BBEF Science& Technology Enterprises that are controlled by the Co., Ltd. Company’s ultimate holding company Beijing Beifang Research Centre of
Micro- electronic Base Equipment Enterprises that are controlled by the and Technique Company’s ultimate holding company NAURA Technology Group Co., Ltd. Enterprises that are controlled by theCompany’s ultimate holding company
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 5. Transactions with related parties
The transactions below with related parties were conducted under normal
commercial terms or agreements.
(1) Purchase of goods and assets / receiving services (excluding remuneration of key management personnel)
The Group
Nature of transaction 2016 2015 Purchase of goods 30,867,050 38,746,827 Purchase of assets 170,825,347 452,450,778 Receiving services 2,331,484 2,616,085 Total 204,023,881 493,813,690 The Company
Nature of transaction 2016 2015 Purchase of goods 8,894,274 8,773,571 Receiving services 725,509 533,558 Total 9,619,783 9,307,129 (2) Sale of goods / rendering of services
The Group
Nature of transaction 2016 2015 Sale of goods 173,444,370 285,134,989 Rendering of services 5,400 1,467,988 Total 173,449,770 286,602,977
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 The Company
Nature of transaction 2016 2015 Sale of goods - 920,322 Rendering of services 1,713,605,854 1,050,089,867 Total 1,713,605,854 1,051,010,189 (3) Leases
(a) As the lessor
The Group
Lease income Lease income Type of assets leased recognised in 2016 recognised in 2015 Investment properties 5,886,590 5,525,862 The Company
Lease income Lease income Type of assets leased recognised in 2016 recognised in 2015 Investment properties 28,213,831 16,989,175 (b) As the lessee
The Group
Lease fee Lease fee Type of assets leased recognised in 2016 recognised in 2015 Fixed assets 22,606 151,033
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) Funding from related party
The Company
Related party relationship Amount of funding Inception date Maturity date Funds from
Subsidiary of the parent 500,000,000 13/09/2015 Paid as demand Subsidiary of the parent 920,000,000 30/09/2015 Paid as demand Subsidiary of the parent 1,000,000,000 23/12/2016 23/12/2017 Funds to
Subsidiary of the parent 50,000,000 27/03/2015 26/12/2018 Subsidiary of the parent 30,000,000 21/01/2016 20/01/2019 Subsidiary of the parent 773,425,000 28/05/2015 27/05/2018 Subsidiary of the parent 1,583,794,000 28/05/2015 28/05/2018 Subsidiary of the parent 600,000,000 26/09/2016 26/09/2017 Subsidiary of the parent 565,181,000 28/05/2015 28/05/2018 Subsidiary of the parent 300,000,000 28/04/2016 27/04/2019 Subsidiary of the parent 100,000,000 08/06/2016 07/06/2019 Subsidiary of the parent 400,000,000 22/11/2016 15/11/2019 Subsidiary of the parent 200,000,000 17/02/2016 28/05/2018 Subsidiary of the parent 100,000,000 21/01/2016 28/05/2018 Subsidiary of the parent 5,000,000 19/08/2016 18/08/2018 Subsidiary of the parent 2,000,000 16/12/2016 16/12/2017 (5) Remuneration of key management personnel
The Group and the Company
Item 2016 2015 Remuneration of key
management personnel 29,239,000 18,267,000
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 6. Receivables from and payables to related parties
Receivables from related parties
The Group
2016 2015
Provision for Provision for bad and doubtful bad and doubtful Item Book value debts Book value debts Accounts receivable 32,089,791 - 98,545,751 121,741 Prepayments - - 1,080,000 - Other receivables 6,440 - 1,055,976 - Other non-current assets - - 691,736 - The Company
2016 2015
Provision for Provision for bad and doubtful bad and doubtful Item Book value debts Book value debts Accounts receivable 43,019,526 473,228 54,546,968 55,623 Prepayments 975 - 428,772 - Dividends receivable 1,007,950,479 - 90,941,079 - Other receivables 1,601,879,382 - 1,250,898,077 - Other non-current assets 4,007,400,000 - 2,523,720,000 - Bills receivable 200,000,000 - - - Payables to related parties
The Group
Item 2016 2015 Accounts payable 5,937,474 11,313,820 Advance from customers - 2,700 Other payables 113,722,663 123,842,691 The Company
Item 2016 2015 Accounts payable 588,982 1,374,630 Advance from customers 1,086,617,052 253,215 Other payables 10,625,868,282 6,373,460,758
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 XI. Capital management
TheGroup’s primary objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for
shareholders, by pricing products and services commensurately with the level of risk and by securing access to finance at a reasonable cost.
The Group defines capital asshareholders’ equity, net of proposed distribution of dividends unrecognised. Such capital does not include related party transaction balances.
TheGroup’s capital structure is regularly reviewed and managed to achieve an
optimal structure and return for shareholders. Factors for theGroup’s consideration include: its future funding requirements, capital efficiency, actual and expected
profitability, expected cash flows, and expected capital expenditure, etc..
Adjustments are made to the capital structure in light of changes in economic
conditions affecting the Group.
TheGroup’s capital structure is monitored on the basis of an adjusted net
debt-to-capital ratio (Total Liabilities divided by Total Assets). The capital
management strategies exerted by the Group remained unchanged from 2015. For this purpose, the Group may adjust the amount of dividends paid to shareholders, request new loans, issue new shares, or sell assets to reduce debt.
As at 31 December 2016 and 31 December 2015, theGroup’s debt-to-capital ratios are as follows:
2016 2015 Debt-to-capital ratio 55.14% 48.65% Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
XII. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
The Group 2016 2015 Contracts entered into but
not performed or performed partially 36,715,593,193 5,327,996,929 Contracts authorised but
not entered into 67,984,162,416 60,550,486,510 Total 104,699,755,609 65,878,483,439
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 TheGroup’s contracts authorised but not entered into mainly included the fixed
assets that Chengdu BOE, Chongqing BOE, Fuzhou BOE, Hefei Display and
Yuansheng Optoelectronics planned to purchase in 2017 and project equipment that the Group planned to purchase in 2017.
The Company 2016 2015 Contracts entered into but
not performed or partially performed 28,310,042,427 36,044,597,742 Contracts authorised but not entered
into - 92,652,892 Total 28,310,042,427 36,137,250,634 TheCompany’s contracts entered into but not performed or performed partially
mainly included guaranteed investments in Chengdu BOE, Chongqing BOE, Fuzhou BOE, Hefei Display and Yuansheng Optoelectronics.
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under irrevocable
operating leases of theGroup’s properties were payable as follows:
Item 2016 2015 Within 1 year (inclusive) 21,220,578 20,347,968 After 1 year but within 2 years
(inclusive) 17,634,577 20,499,876 After 2 years but within 3 years
(inclusive) 13,715,188 17,601,350 After 3 years 16,038,238 39,958,929 Total 68,608,581 98,408,123 As at 31 December 2016, the Company had no significant operating lease
commitments.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2. Guarantees provided for other enterprises
(1) The Group as the guarantor
As at 31 December 2016, the Group did not have guarantees provided for external enterprises.
(2) The Company as the guarantor
As at 31 December 2016, the long-term loans of RMB 1,266,670,000 and USD
405,330,000 were collateralised by Yuansheng Optoelectronics with its plant and buildings whose book value amounted to RMB 2,318,369,521, machinery,
equipment and other devices amounting to RMB 7,165,304,813, land use rights
amounting to RMB 49,963,737, and construction in progress amounting to RMB 1,277,987,918. These loans were also pledged by the Company with its20%
shareholding of Erdos BOE Energy Investment Co., Ltd (“BOE Energy Investment”) and20% shareholding of Haosheng Energy, pledged by Hefei BOE with its65% shareholding of Haosheng Energy, and by BOE Display with its15% shareholding of Haosheng Energy. The Company also provided a third-party guarantee with joint and several liabilities for these loans.
As at 31 December 2016, the long-term loans of RMB 520,000,000 and USD
1,460,000,000 were collateralised by Chongqing BOE with its machinery and
equipment whose book value amounted to RMB 14,677,980,475, land use rights amounting to RMB 200,595,395, and construction in progress amounting to RMB 444,531,459, and were pledged by its other monetary funds of USD 11,000,000. The Company also provided a third-party guarantee with joint and several liabilities for these loans, and also provided guarantee with joint and several liabilities for the long-term letter of guarantee limit of RMB 1,350,000,000.
As at 31 December 2016, the long-term loans of USD 1,560,000,000 of Hefei
Xinsheng was collateralised by its plant and buildings whose book value amounted to RMB 3,905,142,401, machinery and equipment amounting to RMB 11,337,852,984, and land use rights amounting to RMB 125,227,107, and was pledged by its other monetary funds of RMB 88,000,000. The Company also provided a third-party guarantee with joint and several liabilities for the loan.
As at 31 December 2016, the long-term loans of RMB 115,183,044 and USD
183,847,246 were collateralised by BOE Display with its plant and buildings whose book value amounted to RMB 4,796,819,905, machinery and equipment amounting to RMB 9,008,176,846, land use rights amounting to RMB 271,795,762, and
construction in progress amounting to RMB 630,251,890. The Company also
provided a third-party guarantee with joint and several liabilities for the loans.
As at 31 December 2016, the long-term loans of RMB 623,987,593 and USD
389,821,985 were collateralised by Hefei BOE with its plant and buildings whose book value amounted to RMB 1,876,885,287, machinery and equipment amounting to RMB 2,837,224,993, and land use rights amounting to RMB 81,604,189, and were pledged by its other monetary funds of RMB 1,300,000. Besides, the Company also provided a third-party guarantee with joint and several liabilities for the loans.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 As at 31 December 2016, the foreign exchange loan of USD 426,000,000 was
collateralised by Fuzhou BOE with its land use rights amounting to RMB
225,594,902, and collateralised by the Company with a third-party guarantee with joint and several liabilities. Besides, the Company provided a guarantee with joint and several liabilities regarding the short-term letter of guarantee limit of RMB
900,000,000, the issued but not accepted letter of credit of JPY 46,991,117,400, and the issued but not accepted letter of credit of USD 276,079,032.
As at 31 December 2016, a short-term loan of USD 420,000,000 was granted by the Anhui Branch of China Development Bank to Hefei BOE Display Technology Co., Ltd. for the period from 26 December 2016 to 26 December 2017. Besides, the Company also provided a third-party guarantee with joint and several liabilities for the loan.
XIII. Segment reporting
(1) Segment reporting considerations
The Group management reviews the operation performance and allocates resources according to the business segments below.
(a) Display parts— This business mainly involves the development, manufacture and sales of panel and module for TFT-LCD and AMOLED.
(b) Smart system— This business mainly involves the development, manufacture and sales of display terminal products and system; OEM service for terminal products and system of TV, display, special display product; offering safe, energy-saving,
healthy, fashionable quality illumination service and solutions; the integration and operation for solar energy application system (e.g. photovoltaic-thermal system), including key parts and overall solution for this area.
(c) Healthcare service— This business mainly covers HealthCloud, Health& Medical product, and Park Solution. HealthCloud is an information management system based on cloud computing and cloud server; Health& Medical product and service mainly includes wearable and testing equipment; Park Solution refers to professional solution for technology estate and heath estate and so on.
(d) Others— Other service mainly includes technical development service and patent maintenance service
The main reason to separate the segments is that the Group independently manages the display parts business, the smart system business, and healthcare service
businesses and other businesses. Because the business segments manufacture and distribute different products, apply different manufacturing processes and
specifies in gross profit, the business segments are managed independently. The management evaluates the performance and allocates resources according to the profit of each business segment and does not take financing cost and investment income into account.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Accounting policy for the measurements of segment profit or loss, assets and
liabilities
For the purposes of assessing segment performance and allocating resources
between segments, theGroup’s management regularly reviews the assets, liabilities, revenue, cost and results of operations, attributable to each reportable segment on the following bases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exception of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank
borrowings and other non-current liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporate liabilities.
Financial performance is operating income (including operating income from external customers and inter-segment operating income) after deducting expenses,
depreciation, amortisation, impairment losses, gains or losses from changes in fair value, investment gain, non-operating income and expenses and income tax
expenses attributable to the individual segments. The transder pricing of
nter-segment sales is determined with reference to prices charged to external parties for similar orders.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2016
Display parts Smart system Healthcare service Others Elimination Remaining items Total Operating income 61,207,032,381 12,503,057,007 907,225,055 1,835,270,634 (7,556,926,114) - 68,895,658,963 Including: External transaction 57,705,786,975 10,324,396,954 865,475,034 - - - 68,895,658,963 Segment transaction 3,501,245,406 2,178,660,053 41,750,021 1,835,270,634 (7,556,926,114) - - Operating expenses 60,144,631,820 12,532,051,803 583,851,925 1,694,886,410 (6,923,319,054) 358,261,534 68,390,364,438 Operating profits / (losses) 1,062,400,561 (28,994,796) 323,373,130 140,384,224 (633,607,060) (358,261,534) 505,294,525 Profits / (losses) before income tax 2,759,485,942 119,385,393 343,539,752 397,485,658 (749,236,136) (358,261,534) 2,512,399,075 Income tax expenses 386,734,771 6,248,025 53,992,327 20,253,193 - - 467,228,316 Net profits / (net losses) 2,372,751,171 113,137,368 289,547,425 377,232,465 (749,236,136) (358,261,534) 2,045,170,759 Total assets 195,080,731,538 11,643,284,994 3,899,250,735 116,972,145,984 (122,606,940,774) 146,538,565 205,135,011,042 Total liabilities 80,455,038,367 7,592,061,082 1,286,981,254 56,507,263,497 (33,171,013,372) 448,625,054 113,118,955,882 Other items:
- Impairment losses for the current
period 1,332,484,203 53,641,246 684,295 207,678,809 - - 1,594,488,553 - Depreciation and amortisation
expenses 10,075,266,855 150,710,562 96,953,044 195,111,267 (144,523,931) - 10,373,517,797 - Long-term equity investments in
associates - - - 1,356,111,395 - - 1,356,111,395 - Capital outlay 30,576,055,416 1,040,749,393 253,312,916 521,206,363 (1,113,663,502) - 31,277,660,586 - Losses arising from investments in
associates - - - 15,121,347 - - 15,121,347 - Net interest expenses 1,620,578,396 46,559,718 6,654,996 64,682,224 - 339,222,950 2,077,698,284
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2015
Display parts Smart system Healthcare service Others Elimination Remaining items Total Operating income 43,501,436,202 8,781,046,730 826,323,560 1,196,198,355 (5,681,272,535) - 48,623,732,312 Including: External transaction 40,426,767,112 7,427,772,088 769,193,112 - - - 48,623,732,312 Segment transaction 3,074,669,090 1,353,274,642 57,130,448 1,196,198,355 (5,681,272,535) - - Operating expenses 42,679,745,815 8,866,708,973 526,076,913 1,025,090,631 (5,542,625,604) 115,030,885 47,670,027,613 Operating profits / (losses) 821,690,387 (85,662,243) 300,246,647 171,107,724 (138,646,931) (115,030,885) 953,704,699 Profits / (losses) before income tax 1,708,841,419 6,943,544 306,339,038 260,503,802 (154,353,801) (115,030,885) 2,013,243,117 Income tax expenses 302,208,715 1,965,397 47,221,692 23,737,381 - - 375,133,185 Net profits / (net losses) 1,406,632,704 4,978,147 259,117,346 236,766,421 (154,353,801) (115,030,885) 1,638,109,932 Total assets 166,981,540,531 5,689,069,590 3,446,685,864 87,044,095,970 (110,685,602,733) 117,105,220 152,592,894,442 Total liabilities 83,288,257,377 4,965,158,045 570,547,952 7,757,459,924 (27,585,958,890) 5,246,600,215 74,242,064,623 Other items:
- Impairment losses / (recoveries)
for current period 1,340,214,668 22,611,445 (53,232) 1,727,271 - - 1,364,500,152 - Depreciation and amortisation
expenses 7,888,127,620 94,748,316 58,574,720 176,948,110 (123,115,406) - 8,095,283,360 - Long-term equity investments in
associates - - - 1,260,302,959 - - 1,260,302,959 - Capital outlay 18,994,866,642 334,148,623 333,561,559 525,351,626 (456,163,379) - 19,731,765,071 - Gains arising from investments in
associates - - - 4,748,739 - - 4,748,739 - Net interest expenses 1,160,907,008 45,631,939 3,488,250 - - 196,369,006 1,406,396,203
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (3) Secondary segment reporting (geographical segments)
(a) Divided based on the location at which the services were provided or the goods
delivered.
The information of theGroup’s external transactions based on the location is as
follows:
Revenue from external customers 2016 2015 PRC mainland 36,758,279,462 21,057,873,677 Other Asian regions 28,659,907,880 21,339,034,068 Europe 1,576,844,846 2,677,131,554 America 1,783,928,923 3,430,415,741 Other regions 116,697,852 119,277,272 Total 68,895,658,963 48,623,732,312 (b) Divided based on assets location
The geographical location of the specified non-current assets is based on the
physical location of the asset, in the case of fixed assets; the location of the operation to which they are allocated, in the case of intangible assets and goodwill; and the location of operations, in the case of interests in associates and jointly controlled enterprises. Most of the non-current assets in the Group are located in mainland China.
(4) Main clients
Operating income of TFT-LCD Business from which is over10% of theGroup’s total operating income ended up with one customer. The operating income from this customer represented RMB 12,128,602,338 (2015: RMB 10,969,549,418), which was approximately18% (2015:23%) of theGroup’s total operating income.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 XIV. Notes of financial statements of the Company
1. Cash at bank and on hand
2016 2015
RMB / RMB / Original Exchange RMB Original Exchange RMB currency rate equivalents currency rate equivalents Cash on hand:
RMB 2,386 20,752 USD 7,525 6.9370 52,199 7,525 6.4936 48,864 HKD 9,665 0.8945 8,645 9,665 0.8378 8,097 JPY 51,325 0.0596 3,059 51,325 0.0539 2,765 Korean Won 420,000 0.0058 2,436 420,000 0.0055 2,317 Other foreign
currencies 85,221 83,047 Sub-total 153,946 165,842 --------------- --------------- Current deposit:
RMB 3,121,994,347 2,383,205,326 USD 614,464,401 6.9370 4,262,539,551 144,423,171 6.4936 937,826,301 HKD 728,649 0.8945 651,777 1,215,056 0.8378 1,017,974 Sub-total 7,385,185,675 3,322,049,601 --------------- --------------- Other monetary
funds:
RMB 174,130,308 5,719,000 HKD 100,480,138 0.8945 89,879,483 - Sub-total 264,009,791 5,719,000 --------------- --------------- Total 7,649,349,412 3,327,934,443 Including: Total overseas deposits were equivalent to RMB 158,064 (2015: RMB 148,467).
As at 31 December 2016, other monetary funds of the Company amounting to RMB 100,649,000 were deposits in commercial banks as security. The remaining
monetary funds of RMB 73,481,308 and HKD 100,480,138 were refundable deposits used for share repurchase.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2. Accounts receivable
(1) TheCompany’s accounts receivable by customer type:
2016 2015 Amounts due from subsidiaries 43,013,222 53,650,969 Amounts due from other related
parties 6,304 895,999 Amounts due from other customers 5,724,199 8,058,313 Sub-total 48,743,725 62,605,281 Less: Provision for bad and doubtful
debts 2,889,866 3,207,351 Total 45,853,859 59,397,930 (2) The ageing analysis of accounts receivable is as follows:
Ageing 2016 2015 Within 1 year (inclusive) 9,293,239 16,111,686 1 to 2 years (inclusive) 5,795,247 2,879,445 2 to 3 years (inclusive) 2,879,445 7,397,684 Over 3 years 30,775,794 36,216,466 Sub-total 48,743,725 62,605,281 Less: Provision for bad and doubtful
debts 2,889,866 3,207,351 Total 45,853,859 59,397,930 The ageing is counted starting from the date when accounts receivable are recognised.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (3) TheCompany’s accounts receivable by category
2016 2015
Provision for bad and Carrying Provision for bad and Carrying Category Book value d o u b tful debts amount Book value doubtful debts amount Percentage Percentage Percentage Percentage Amount (%) Amount (%) Amount (%) Amount (%) Collectively assessed for impairment
based on credit riskcharacteristics* 30,874,530 63% - - 30,874,530 35,709,167 57% - - 35,709,167 Individually insignificant but assessed
for impairment individually 17,869,195 37% 2,889,866 16% 14,979,329 26,896,114 43% 3,207,351 12% 23,688,763 Total 48,743,725 100% 2,889,866 6% 45,853,859 62,605,281 100% 3,207,351 5% 59,397,930Note*: This category includes accounts receivable that having been individually assessed but not impaired.
The Company has no individually significant accounts receivable and individually for impairment this year.
As at 31 December 2016, the Company collectively assessed accounts receivable having been individually assessed but not impaired for impairment and did not recognise impairment loss against this amount of accounts receivable (2015: nil).
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) Additions, recoveries or reversals of provision for bad and doubtful debts during the year:
2016 2015 Balance at the beginning of the year 3,207,351 3,320,059 Additions during the year 500,604 9,606 Recoveries or reverslas during the
year - 122,314 Write-offs during the year 818,089 - Balance at the end of the year 2,889,866 3,207,351 For the year ended 31 December 2016, the Company had no individually significant write-off, recovery or reversal of doubtful debts which had been fully or substantially made in prior years.
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 43,545,292, amounting for89% of the total accounts receivable at the end of the year, and the corresponding balance of provision for bad and doubtful debts is RMB 473,228.
3. Dividends receivable
2016 2015 Yinghe Century 86,204,147 8,204,147 Chengdu Optpelectrnics 80,536,932 80,536,932 Vacuum Electronics 2,200,000 2,200,000 Hefei BOE 61,649,400 - BOE Display 777,360,000 - Balance at the end of the year 1,007,950,479 90,941,079
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 4. Other receivables
(1) TheCompany’s other receivables by customer type:
Customer type 2016 2015 Amounts due from subsidiaries 1,601,879,382 1,250,457,124 Amounts due from other related
parties - 440,953 Amounts due from other customers 27,296,852 30,128,182 Total 1,629,176,234 1,281,026,259 (2) TheCompany’s other receivables by currency:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents RMB 1,629,176,234 1,279,700,545 USD - 6.9370 - 204,157 6.4936 1,325,714 Sub-total 1,629,176,234 1,281,026,259 Less: Provision for bad
and
doubtful
debts - - Total 1,629,176,234 1,281,026,259 (3) The ageing analysis of other receivables is as follows:
2016 2015 Within 1 year (inclusive) 366,058,914 349,515,633 1 to 2 years (inclusive) 349,515,633 691,769,562 2 to 3 years (inclusive) 691,769,562 221,832,125 Over 3 years 221,832,125 17,908,939 Total 1,629,176,234 1,281,026,259 The ageing is counted starting from the date when other receivables are recognised.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (4) TheCompany’s other receivables by nature:
Nature of other receivables 2016 2015 Borrowing 1,248,425,532 777,919,107 Rent 209,636,819 209,470,610 Royalty fee 105,591,491 227,819,480 Others 65,522,392 65,817,062 Total 1,629,176,234 1,281,026,259 (5) Five largest other receivables by debtor at the end of the year
As at 31 December 2016, other receivables at the end of the year due from the top five debtors of the Company amounted to RMB 1,504,807,217 in total, most of which are borrowings and royalty fees. No provision is made for bad and doubtful debts after assessment.
5. Other current assets
2016 2015 Deductible VAT 21,214,487 105,819,892 Others 4,289,587 3,758,501 Total 25,504,074 109,578,393 6. Available-for-sale financial assets
(1) Available-for-sale financial assets
2016 2015
Provision for Carrying Provision for Carrying Item Book value impairment amount Book value impairment amount Available-for-sale
equity instruments
- At fair value 308,578,531 150,099,655 158,478,876 308,095,120 150,099,655 157,995,465 - At cost 124,689,635 106,001,603 18,688,032 124,689,635 106,001,603 18,688,032 Total 433,268,166 256,101,258 177,166,908 432,784,755 256,101,258 176,683,497
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Available-for-sale financial assets at fair value at the end of the year:
2016 Cost 224,818,586 Fair value 158,478,876 Accumulative fair value changes recognised
in other comprehensive income 83,759,945 Provision for impairment 150,099,655 (3) Available-for-sale financial assets at cost at the end of the year:
Provision for
Investee Book value impairment
Balance at the Percentage of Balance at Balance at beginning and shareholding the beginning Increase during Decrease the end the end of the in of the year the year during the year of the year year investees(%) Teralane Semiconductor Inc 11,868,000 - - 11,868,000 - 7.29% Zhejiang BOE Display
Technology Co., Ltd. 59,959,709 - - 59,959,709 59,638,453 7.03% Zhejiang Qiusheng - -
Photoelectric Technology
Co., Ltd. 46,431,926 46,431,926 46,183,150 7.03% National Engineering
Laboratory of Digital
Television(Beijing) Co.,
Ltd. 6,250,000 - - 6,250,000 - 12.50% Others 180,000 - - 180,000 180,000
Total 124,689,635 - - 124,689,635 106,001,603
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 7. Long-term equity investments
(1) TheCompany’s long-term equity investments by category:
2016 2015 Investments in subsidiaries 98,986,915,097 76,924,098,231 Investments in associates 991,536,352 699,915,136 Sub-total 99,978,451,449 77,624,013,367 Less: Provision for impairment 60,000,000 72,416,550 Total 99,918,451,449 77,551,596,817 In previous year, the Company provided full impairment losses for investments in its subsidiary, Special Display, which amounted to RMB 60,000,000.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Investments in subsidiaries
Opening Closing balance of balance of Balance at the provision for provision for beginning of Increase during Decrease Balance at the bad and bad and Subsidiary the year the year during the year end of the year doubtful debts doubtful debts BOE OT 4,172,288,084 - - 4,172,288,084 - - Chengdu Optoelectronics 2,833,149,991 8,500,000,000 - 11,333,149,991 - - Hefei BOE 9,000,000,000 - - 9,000,000,000 - - BOE Display 17,418,713,599 - - 17,418,713,599 - - Hefei Xinsheng 16,575,150,000 - - 16,575,150,000 - - Yuansheng Optoelectronics 6,904,000,000 4,900,000,000 - 11,804,000,000 - - BOE Vision-electronic 560,000,000 560,000,000 - 1,120,000,000 - - Chongqing BOE 15,739,669,199 - - 15,739,669,199 - - Vacuum Electronics 19,250,000 - - 19,250,000 - - Vacuum Technology 32,000,000 - - 32,000,000 - - Special Display 100,000,000 - - 100,000,000 60,000,000 60,000,000 Yinghe Century 333,037,433 - - 333,037,433 - - Optical Technology 359,961,914 160,000,000 - 519,961,914 - - BOE Hyundai 31,038,525 - - 31,038,525 - - BOE Hebei 553,651,020 500,000,000 - 1,053,651,020 - - BOE Multimedia 400,000,000 - - 400,000,000 - - BOE Energy 50,000,000 200,000,000 - 250,000,000 - - BOE Smart Commerce 10,000,000 - - 10,000,000 - - Zhongxiangying 10,000,000 - - 10,000,000 - - Haosheng Energy 2,000,000 - - 2,000,000 - - BOE Semi-conductor 9,450,000 - - 9,450,000 - - Optoelectronics Holding 210,894,285 87,041,182 - 297,935,467 - - ASAHI Glass 30,888,470 - - 30,888,470 - - Matsushita 424,823,089 - 424,823,089 - - - Beijing BOE Land Co., Ltd. 7,731,474 - - 7,731,474 - - BOE KOREA Co., Ltd 788,450 - - 788,450 - - Beijing BOE Marketing Co.,
Ltd. 500,000 - - 500,000 - - Beijing BOE Digital
Technology Co., Ltd. 12,416,550 - 12,416,550 - 12,416,550 - Fuzhou BOE 509,542,079 6,673,500,000 - 7,183,042,079 - - Healthcare Investment 613,154,069 200,000,000 - 813,154,069 - - Hefei Display - 667,765,323 - 667,765,323 - - Technology Development - 1,000,000 - 1,000,000 - - Smart Science& Technology - 50,000,000 - 50,000,000 - - Zhuoyin Science&
Technology - 750,000 - 750,000 - - Total 7 6,924,098,231 2 2,500,056,505 437,239,639 9 8,986,915,097 72,416,550 60,000,000 For information about the main subsidiaries of the Company, refer to Note VII.1.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (3) Investments in associates:
Movements during the year
Investment Balance of income provision for Balance at the recognised Other Transferred to impairment at beginning of the Increase in under equity comprehensive Changes in investments in Balance at the the end of the Investee year investments method income other equity subsidiaries end of the year year Beijing Nissin Electronics
Precision Component Co., Ltd. 3,011,145 - (2,651,253) - - - 359,892 - Beijing Nittan Electronic Co., Ltd. 29,353,994 - 11,274,609 - - - 40,628,603 - Erdos BOE Energy Investment Co., Ltd. 9,476,536 - (13,266) - - - 9,463,270 - Beijing Infi-Hailin Venture
Investment Co., Ltd. 324,896 - 131,785 - - - 456,681 - Beijing Infi-Hailin Venture
Investment (Limited Partnership) 117,872,528 22,333,400 (993,478) 16,891,494 877,088 - 156,981,032 - TPV Display Technology (China) Co.,
Ltd. 23,715,205 - 2,907,139 - - - 26,622,344 - Hefei BOE Display Technology Co., Ltd. 85,566,875 444,000,000 (1,654,610) - 3,853,059 (531,765,324) - - Beijing Xindongneng Investment Fund
(Limited Partnership) 370,261,522 300,000,000 (16,099,481) 25,161,758 - - 679,323,799 - Beijing Xindongneng Investment
Management Co., Ltd. 1,921,429 - 984,789 - - - 2,906,218 - Shenzhen Yunyinggu Technology Co.,
Ltd. 58,411,006 - (8,065,070) - - - 50,345,936 - Beijing Xloong Technologies Co.,Ltd. - 25,000,000 (551,423) - - - 24,448,577 - Total 699,915,136 791,333,400 (14,730,259) 42,053,252 4,730,147 (531,765,324) 991,536,352 -
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 8. Deferred tax assets and deferred tax liabilities
2016
Deductible /
(taxable) Deferred tax temporary assets / Item differences (liabilities) Deferred tax assets:
Provision for impairment 183,119 27,468 Difference of depreciation /
amortisation 19,806,418 2,970,963 Advances from customers 349,621,212 52,443,182 Others 30,224,283 4,533,642 Sub-total 399,835,032 59,975,255 Amount offset (12,295,610) Balance after offset 47,679,645 Deferred tax liabilities:
Bond interest (71,221,140) (10,683,171) Others (10,749,594) (1,612,439) Sub-total (81,970,734) (12,295,610) Amount offset 12,295,610 Balance after offset - As at 31 December 2016, the Company estimated that the amount of taxable income is expected to be available in the future period that the deductible temporary differences are reversed, thereby confirming the relevant deferred tax assets.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 9. Employee benefits payable
(1) Employee benefits payable:
Balance at 1 Accrued during Decreased Balance at 31 Note January 2016 the year during the year December 2016 Short-term employee
benefits (2) 104,758,659 536,322,713 478,872,799 162,208,573 Post-employment benefits
- defined contribution
plans (3) 6,591,837 46,092,054 44,975,361 7,708,530 Termination benefits - 116,293 116,293 - Total 111,350,496 582,531,060 523,964,453 169,917,103 Balance at 1 Accrued during Decreased Balance at 31 Note January 2015 the year during the year December 2015 Short-term employee
benefits (2) 137,019,227 419,533,323 451,793,891 104,758,659 Post-employment benefits
- defined contribution
plans (3) 7,331,574 37,093,316 37,833,053 6,591,837 Total 144,350,801 456,626,639 489,626,944 111,350,496 (2) Short-term employee benefits
Balance at 1 Accrued during Decreased Balance at 31 January 2016 the year during the year December 2016 Salaries, bonuses,
allowances 71,829,733 423,043,848 370,540,728 124,332,853 Staff welfare fees - 43,293,341 43,293,341 - Social insurance
Medical insurance 14,973,035 21,126,438 21,677,897 14,421,576 Work injury insurance
premium 244,642 1,957,434 1,211,004 991,072 Maternity insurance
premium 459,432 1,685,300 1,001,834 1,142,898 Housing fund 4,559,805 24,935,288 24,334,277 5,160,816 Labour union fee, staff
andworkers’ 12,692,012 15,024,677 11,557,331 16,159,358
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 education
fee
Others - 5,256,387 5,256,387 - Total 104,758,659 536,322,713 478,872,799 162,208,573
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Balance at 1 Accrued during Decreased Balance at 31 January 2015 the year during the year December 2015 Salaries, bonuses,
allowances 107,483,058 323,401,216 359,054,541 71,829,733 Staff welfare fees - 40,316,256 40,316,256 - Social insurance
Medical insurance 14,710,387 16,479,478 16,216,830 14,973,035 Work injury insurance
premium 195,717 1,646,683 1,597,758 244,642 Maternity insurance
premium 425,183 1,314,989 1,280,740 459,432 Housing fund 3,734,781 18,878,516 18,053,492 4,559,805 Labour union fee, staff and
workers’ education
fee 10,470,101 12,236,232 10,014,321 12,692,012 Others - 5,259,953 5,259,953 - Total 137,019,227 419,533,323 451,793,891 104,758,659 (3) Post-employment benefits - defined contribution plans
Balance at 1 Accrued during Decreased Balance at 31 January 2016 the year during the year December 2016 Basic pension insurance 5,737,530 40,621,919 39,323,544 7,035,905 Unemployment insurance 247,257 1,821,493 1,768,306 300,444 Annuity 607,050 3,648,642 3,883,511 372,181 Total 6,591,837 46,092,054 44,975,361 7,708,530 Balance at 1 Accrued during Decrease during Balance at 31 January 2015 the year the year December 2015 Basic pension insurance 4,663,761 32,824,174 31,750,405 5,737,530 Unemployment insurance 199,977 1,640,658 1,593,378 247,257 Annuity 2,467,836 2,628,484 4,489,270 607,050 Total 7,331,574 37,093,316 37,833,053 6,591,837
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 10. Other payables
(1) TheCompany’s other payables are as follows:
2016 2015 Projects, equipment and intangible
assets 134,757,262 385,565,764 Agency fee payable 25,300,518 26,927,410 Advanced disbursement 10,625,718,591 7,052,279,420 Technology royalties - 5,428,584 Others 6,153,366 37,263,479 Total 10,791,929,737 7,507,464,657 (2) Other payables of the Company by currency are as follows:
2016 2015
Exchange RMB / Exchange RMB / Original currency rate RMB equivalents Original currency rate RMB equivalents RMB 6,189,669,746 6,097,645,554 USD 663,436,643 6.9370 4,602,259,991 217,109,015 6.4936 1,409,819,103 Total 10,791,929,737 7,507,464,657 11. Long-term loans
2016
Credited / Exchange RMB / collateralised Original currency rate RMB equivalents guaranteed / pledged Bank loans
- RMB 17,635,000,000 Credited - USD 200,000,000 6.9370 1,387,400,000 Credited Less: Long-term loans due
within one year 100,000,000 Credited Total 18,922,400,000
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 2015
Credited / Exchange RMB / collateralised Original currency rate RMB equivalents guaranteed / pledged Bank loans
- RMB 3,512,000,000 Credited - USD 200,000,000 6.4936 1,298,720,000 Credited Less: Long-term loans due
within one year 670,000,000 Credited Total 4,140,720,000
As at 31 December 2016, theCompany’s long-term loans consisted of credit loans of RMB 17,535,000,000 with interest rates between0% and4.75%, and the credit loan of USD 200,000,000 at six-month LIBOR plus2.7% (2015: credit loans of RMB 2,842,000,000 with interest rates between0% and4.75%, and the credit loan of USD 200,000,000 with interest rate of3.34%). The Company had no renewed long-term loans because of overdue loans (2015: nil).
As at 31 December 2016, theCompany’s long-term loans due within one year amounted to RMB 100,000,000 with interest rate of4.75%.
12. Deferred income
Balance at the
beginning of the Additions during Reductions Balance at the Item year the year during the year end of the year Government grant 151,809,223 30,920,140 33,741,669 148,987,694 Balance at the Recognitions as
beginning of the Additions during non-operating Balance at the year the year income end of the year Government grants related to
assets
Subsidies for scientific
research and
development, etc. 25,514,385 13,431,109 10,628,942 28,316,552 Government grants related to
income
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Subsidies for scientific
research and
development, etc. 126,294,838 17,489,031 23,112,727 120,671,142 Total 151,809,223 30,920,140 33,741,669 148,987,694
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 13. Capital reserve
Balance at the
beginning of the Additions during Reductions Balance at the year the year during the year end of the year Share premiums 38,115,575,868 - - 38,115,575,868 Other capital
reserves
- Capital reserve
brought
forward from
original
scheme 29,538,085 - - 29,538,085 - Changes in other
equity of
investees 7,755,682 4,730,773 - 12,486,455 Total 38,152,869,635 4,730,773 - 38,157,600,408 14. Other comprehensive income
Balance at the Movements during the year Balance at the end beginning of the of the year year attributable to Less: attributable to shareholders of Income tax shareholders of Item the Company Before-tax amount expense the Company Items that will be reclassified
to profit or loss
Including: Gains / (losses) arising
from changes in fair
value of available-
for-sale financial
assets 83,276,532 483,413 - 83,759,945 Share of other
comprehensive
income of the
equity method
investments 26,510,264 42,053,252 - 68,563,516 Total 109,786,796 42,536,665 - 152,323,461
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 15. Retained earnings
Item 2016 2015 Retained earnings at the beginning
of the year 486,814,338 41,186,231 Add: Net profits for the year 1,508,977,964 885,731,982 Less: Appropriation for statutory
surplus reserve 150,897,796 88,573,198 Less: Distribution of cash dividends 351,530,677 351,530,677 Retained earnings at the end of the
year 1,493,363,829 486,814,338
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 16. Operating income
2016 2015 Rental income of investment
properties 174,980,284 151,084,598 Technological development income 1,451,002,636 1,018,550,576 Others 264,909,635 255,838,506 Total 1,890,892,555 1,425,473,680 17. Taxes and surcharges
2016 2015 Business tax 1,873,356 8,898,215 City maintenance and construction
tax 445,037 626,887 Education surcharge and
local education surcharge 317,883 447,777 Real estate tax 15,136,751 - Land use tax 1,432,152 - Stamp duty 1,824,682 - Others 10,650 - Total 21,040,511 9,972,879 18. Financial expenses / (net financial income)
2016 2015 Interest expenses from loans 443,656,348 290,278 Interest income from deposits (233,975,937) (112,491,103) Net exchange losses 444,414 19,552,729 Other financial expense 1,229,348 956,462 Total 211,354,173 (91,691,634)
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 19. Investment income
2016 2015 Long-term equity investments income under
cost method 1,007,385,303 452,043,628 Long-term equity investments (losses) /
income under equity method (14,730,259) 4,748,739 Investment income from disposal of
long-term equity investments 81,336,911 - Investment income from available-for-sale
financial assets 2,846,739 2,746,321 Investment income from wealth
management products 34,904,294 - Including: Transfers from other
comprehensive income - - Total 1,111,742,988 459,538,688 20. Non-operating income
(1) Non-operating income by item is as follows:
Amount recognised in extraordinary gains and Item 2016 2015 losses in 2016 Gains from disposal of
non-current assets 76,084 103,499 76,084 Including: Disposal of fixed
assets 76,084 103,499 76,084 Government grants 257,695,342 92,767,653 257,695,342 Others 2,532,571 1,837,258 2,532,571 Total 260,303,997 94,708,410 260,303,997 (2) Details of government grants
Item 2016 2015 Relate to assets
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Subsidies for scientific research and
Development, etc. 10,628,942 10,089,189 Relate to income
Subsidies for scientific research and
Development, etc. 247,066,400 82,678,464 Total 257,695,342 92,767,653 21. Non-operating income
Amount recognised in extraordinary gains and Item 2016 2015 losses in 2016 Losses from disposal of
non-current assets 96,766 8,690 96,766 Including: Losses from
disposal of fixed
assets 96,766 8,690 96,766 External contribution 1,563,700 4,943,561 1,563,700 Others 70,408 58,196 70,408 Total 1,730,874 5,010,447 1,730,874 22. Income tax expense
Note 2016 2015 Current tax expenses for the period
based on tax law and
corresponding regulations 96,473,093 22,348,918 Changes in deferred tax assets /
liabilities (1) (47,679,645) - Total 48,793,448 22,348,918 (1) The analysis of changes in deferred tax assets / liabilities is set out below:
2016 2015
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Origination and reversal of
temporary differences (47,679,645) -
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (2) Reconciliation between income tax expenses and accounting profit is as follows:
Item 2016 2015 Profit before taxation 1,557,771,412 908,080,900 Expected income tax expenses at a tax
rate of15% 233,665,712 136,212,135 Add: Non-deductible costs 3,572,754 980,500 Non-taxable income (159,287,713) (68,930,803) Weighted deduction of research
and development expenses and
tax preference (29,157,305) (31,508,977) Utilisation of prior year tax losses - (10,091,886) Changes of deductible temporary
differences not recognised - (4,312,051) Income tax expenses 48,793,448 22,348,918 23. Notes to cash flow statement
(1) Supplement to cash flow statement
2016 2015 (a) Reconciliation of net profit to cash
flows from operating activities:
Net profits 1,508,977,964 885,731,982 Add: Provisions / (reversals) for
impairment of assets 500,604 (112,708) Depreciation of fixed assets
and investment properties 86,061,009 56,028,074 Amortisation of intangible assets 107,119,375 97,082,752 Amortisation of long-term
deferred expenses 29,846,094 29,020,530 Income from disposal of fixed
assets (76,084) (103,499) Losses from disposal of fixed
assets 96,766 8,690 Financial expenses /
(net financial income) 210,124,825 (92,648,096) Investment income (1,111,742,988) (459,538,688) Increase in deferred tax assets (47,679,645) -
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Increase in inventories (1,223,066) (5,790,865) Increase in operating receivables (53,667,138) (109,509,972) Increase in operating payables 4,711,184,468 905,861,067 Net cash inflow from
operating activities 5,439,522,184 1,306,029,267
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 (b) Net change in cash and cash
equivalents:
Cash and cash equivalents at the end
of the year 7,548,700,412 3,322,215,443 Less: Cash and cash equivalents at
the beginning of the year 3,322,215,443 8,671,876,589 Net increase / (decrease) in cash
and cash equivalents 4,226,484,969 (5,349,661,146) (2) Details of cash and cash equivalents
2016 2015 Cash on hand 153,946 165,842 Bank deposits available on demand 7,385,185,675 3,322,049,601 Other monetary funds available on demand 163,360,791 - Closing balance of cash and cash
equivalents 7,548,700,412 3,322,215,443 Note: Cash and cash equivalents disclosed above exclude other monetary funds with restricted usage.
24. Assets with restrictive ownership title or right of use
As at 31 December 2016, other monetary funds amounting to RMB 100,649,000 were deposits in commercial banks as security with maturity date from 22 January 2017 to 30 June 2017.
As at 31 December 2016, the Company pledged its20% equity of BOE Energy Investment and20% equity of Haosheng Energy as security for the syndicated loans of RMB
1,500,000,000 and USD 480,000,000 for Yuansheng Optoelectronics, which will expire on 9 June 2021.
The Company has no other asset with restrictive ownership title or right of use.
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 XV. Extraordinary gains and losses in 2016
2016 2015 Losses from disposal of non-current assets (46,754,352) (8,350,324) Government grants recognised through
profit or loss 1,914,531,603 1,045,101,727 Excess of interest in the fair value of
investee’s identifiable net assets over
investment costs of subsidiaries acquired 105,228,293 163,082 Investment income from disposal of trading
financial assets, available-for-sale
financial assets and matured wealth
management products 149,197,609 173,197,708 Reversal of provisions for impairment test for
receivables on an individual basis 24,547,083 4,535,849 Other non-operating income and expenses 40,206,943 22,787,015 Less: Tax effect 305,399,453 185,320,551 Total 1,881,557,726 1,052,114,506 Including: Extraordinary gains affecting net
profit of equity shareholders of
the Company 1,870,036,796 1,022,455,655 Extraordinary gains affecting the
net profit of non-controlling
interest 11,520,930 29,658,851 Notes: Extraordinary gain and loss item listed above are presented in the amount before taxation.
XVI. Return on net assets and earnings per share
In accordance with the “Regulation on the Preparation of Information Disclosures by Companies Issuing Securities No. 9 - Calculation and Disclosure of the Return on Net Assets and Earnings per Share” (2010 revised) issued by the CSRC, theGroup’s return on net assets and earnings per share are calculated as follows:
Weighted average
return on net Basic earnings per Diluted earnings Profit for the reporting period assets(%) share per share Net profit attributable to theCompany’s
ordinary equity shareholders 2.40% 0.054 0.054
BOE Technology Group Company Limited Financial statements for the year ended 31 December 2016 Net profit excluding extraordinary gains
and losses attributable to the
Company’s ordinary equity
shareholders 0.02% 0.000 0.000