BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) Stock Code: 200725 Stock Name: BOE B Announcement No. 2018-052 BOE TECHNOLOGY GROUP CO., LTD.
THIRD QUARTER REPORT 2018 (SUMMARY)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
All theCompany’s directors have attended the Board meeting for the review of this Report and its summary.
Mr. Wang Dongsheng, theCompany’s legal representative, Mr. Chen Yanshun, president of theCompany’s Execution Committee (Chief Executive Officer), Ms. Sun Yun, theCompany’s Chief Financial Officer, and Ms. Yang Xiaoping, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
|Item|30 September 2018|31 December 2017|Change (%)|
|Total assets (RMB)|289,680,059,305.00|256,108,741,849.00|13.11%|
|Equity attributable to the listed|85,818,805,445.00|84,809,816,377.00|1.19%|

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
||||||
|-|-|-|-|-|
|company’s shareholders (RMB)|||||
|Item|Q3 2018|YoY change (%)|Q1-Q3 2018|YoY change (%)|
|Operating revenue (RMB)|25,990,508,323.00|4.79%|69,464,413,289.00|0.08%|
|Net profit attributable to the listed|403,860,235.00||3,379,066,735.00||
|||-81.42%||-47.82%|
|company’s shareholders (RMB)|||||
|Net profit attributable to the listed|||||
|company’s shareholders before|119,979,875.00|-93.68%|1,098,848,634.00|-81.43%|
|exceptional items (RMB)|||||
|Net cash generated from/used in|||18,297,602,412.00||
||--|--||-1.05%|
|operating activities (RMB)|||||
|Basic earnings per share (RMB/share)|0.012|-80.65%|0.097|-47.57%|
|Diluted earnings per share (RMB/share)|0.012|-80.65%|0.097|-47.57%|
|Weighted average return on equity (%)|0.47%|-82.33%|3.92%|-50.75%|

 Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1-Q3 2018|Note|
|Gain or loss on disposal of non-current assets (inclusive of impairment allowance|||
||-17,906,941.00|N/A|
|write-offs)|||
|Tax rebates, reductions and exemptions given with ultra vires approval or in lack of|||
||0.00|N/A|
|official approval documents|||
|Government subsidies charged to current profit or loss (exclusive of government subsidies|||
|given in the Company’s ordinary course of business at fixed quotas or amounts as per|2,431,679,361.00|N/A|
|government’s uniform standards)|||
|Capital occupation charges on non-financial enterprises that are charged to current profit or|||
||0.00|N/A|
|loss|||
|Gain equal to the amount by which investment costs for the Company to obtain|||
|subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair|9,317,244.00|N/A|
|value of identifiable net asset value of investees when making investments|||
|Gain or loss on non-monetary asset swaps|0.00|N/A|
|Gain or loss on investments or assets entrusted to other entities for management|0.00|N/A|
|Allowance for asset impairments due to acts of God such as natural disasters|0.00|N/A|
|Gain or loss on debt restructuring|0.00|N/A|
|Restructuring costs in staff arrangement, integration, etc.|0.00|N/A|
|Gain or loss on over-fair value amount as a result of transactions with distinctly unfair|||
||0.00|N/A|
|prices|||
|Current profit or loss on subsidiaries obtained in business combinations involving|0.00|N/A|

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
||||
|-|-|-|
|enterprises under common control from period-beginning to combination dates, net|||
|Gain or loss on contingencies that do not arise in the Company’s ordinary course of|||
||0.00|N/A|
|business|||
|Gain or loss on fair-value changes in trading financial assets and liabilities & investment|||
|income from disposal of trading financial assets and liabilities and available-for-sale|||
||273,977,796.00|N/A|
|financial assets (exclusive of effective portion of hedges that arise in the Company’s|||
|ordinary course of business)|||
|Reversed portion of impairment allowance for accounts receivable which are tested|||
||153,235.00|N/A|
|individually for impairment|||
|Gain or loss on loan entrustments|0.00|N/A|
|Gain or loss on fair-value changes in investment property of which subsequent|||
||0.00|N/A|
|measurement is carried out using fair value method|||
|Effects of all adjustments required by taxation, accounting and other applicable laws and|||
||0.00|N/A|
|regulations on current profit or loss|||
|Income from charges on entrusted management|0.00|N/A|
|Non-operating income and expense other than above|48,197,584.00|N/A|
|Other gains and losses that meet definition of exceptional gain/loss|0.00|N/A|
|Less: Income tax effects|313,681,228.00|N/A|
|Non-controlling interests effects (net of tax)|151,518,950.00|N/A|
|Total|2,280,218,101.00|--|

 Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Number of ordinary shareholders||1,423,472 (including 1,384,020 A-shareholders and 39,452 B-shareholders)|||||
|Top 10 shareholders|||||||
||Nature of|Shareholding|Number of|Restricted|Shares in pledge or frozen||
|Name of shareholder|||||||
||shareholder|percentage|shares|shares|Status|Shares|
|Beijing State-owned CapitalOperation and ManagementCenter|State-ownedlegal person|11.68%|4,063,333,333|0|||
||||||N/A|0|
|Chongqing EzcapitalOpto-electronics IndustryInvestment Co., Ltd.|State-ownedlegal person|7.62%|2,653,000,041|0|||
||||||N/A|0|
|Hefei Jianxiang InvestmentCo., Ltd.|State-ownedlegal person|7.21%|2,510,142,953|0|||
||||||N/A|0|
|Beijing Yizhuang InvestmentHoldings Co., Ltd|State-ownedlegal person|3.57%|1,241,423,641|0|||
||||||N/A|0|
|Beijing BOE Investment &Development Co., Ltd.|State-ownedlegal person|2.36%|822,092,180|0|||
||||||N/A|0|
|Hong Kong SecuritiesClearing Company Ltd.|Foreignlegal person|1.42%|493,694,620|0|||
||||||N/A|0|
|National Social Security FundPortfolio 108|Other|1.07%|371,014,227|0|||
||||||N/A|0|
|Beijing Electronics HoldingsCo., Ltd.|State-ownedlegal person|0.79%|273,735,583|0|||
||||||N/A|0|
|Central Huijin AssetsManagement Co., Ltd|State-ownedlegal person|0.71%|248,305,300|0|||
||||||N/A|0|
|China Securities FinanceCorporation Limited|Other|0.38%|132,480,249|0|||
||||||N/A|0|
|Top 10 unrestricted shareholders|||||||
||||||Shares by type||
|Name of shareholder||Unrestricted shares|||||
||||||Type|Shares|
|Beijing State-owned Capital Operation andManagement Center||4,063,333,333|||RMB-denominated||
|||||||4,063,333,333|
||||||ordinary stock||
|Chongqing Ezcapital Opto-electronics||2,653,000,041|||RMB-denominated|2,653,000,041|

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
|||||
|-|-|-|-|
|Industry Investment Co., Ltd.||ordinary stock||
|Hefei Jianxiang Investment Co., Ltd.|2,510,142,953|RMB-denominated||
||||2,510,142,953|
|||ordinary stock||
|Beijing Yizhuang Investment Holdings Co.,Ltd|1,241,423,641|RMB-denominated||
||||1,241,423,641|
|||ordinary stock||
|Beijing BOE Investment & DevelopmentCo., Ltd.|822,092,180|RMB-denominated||
||||822,092,180|
|||ordinary stock||
|Hong Kong Securities Clearing CompanyLtd.|493,694,620|RMB-denominated||
||||493,694,620|
|||ordinary stock||
|National Social Security Fund Portfolio108|371,014,227|RMB-denominated||
||||371,014,227|
|||ordinary stock||
|Beijing Electronics Holdings Co., Ltd.|273,735,583|RMB-denominated||
||||273,735,583|
|||ordinary stock||
|Central Huijin Assets Management Co., Ltd|248,305,300|RMB-denominated||
||||248,305,300|
|||ordinary stock||
|China Securities Finance CorporationLimited|132,480,249|RMB-denominated||
||||132,480,249|
|||ordinary stock||
||1. Beijing State-owned Capital Operation and Management Center held 100% equities|||
||of Beijing Electronics Holdings Co., Ltd.|||
||2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE|||
||Investment & Development Co., Ltd. and was its controlling shareholder.|||
||3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd.|||
||and Chongqing Capital Photoelectricity Investment Co., Ltd., by entering into|||
||Implementation Protocol of Voting Right respectively, agreed to maintain all of the|||
||shares held by them respectively unanimous with Beijing BOE Investment &|||
|Related or acting-in-concert parties among|Development Co., Ltd. when executing the voting rights of the shareholders.|||
|shareholders above|4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital|||
||Operation and Management Center handed over 70% of the shares directly held by it|||
||to Beijing Electronics Holdings Co., Ltd. for management through Stock Management|||
||Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental|||
||shareholders’ rights except for disposing right and usufruct of the shares, of which the|||
||rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co.,|||
||Ltd. through the agreement according to Implementation Protocol of Voting Right.|||
||5. Except for the above relationships, the Company does not know any other connected|||
||party or acting-in-concert party among the top 10 shareholders.|||
|Top 10 ordinary shareholders involved in||||
||Naught|||
|securities margin trading||||

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
||30 September 2018|31 December 2017 (or|Change||
|Item||||Explanation of why|
||(or Q1~Q3 2018)|Q1~Q3 2017)|(%)||
|||||Mass production on new production lines and|
|Inventories|12,178,965,256.00|8,957,719,381.00|36%||
|||||additions to the consolidation scope|
|Long-term equity||||Shift of associate to subsidiary during the|
||4,036,661,192.00|6,928,854,415.00|-42%||
|investments||||current period|
|Construction in||||Rise in investments in new constructions in the|
||67,442,708,371.00|50,761,250,426.00|33%||
|progress||||current period|
|||||Rise in material purchases as a result of the|
|Notes and accounts|||||
||22,096,470,048.00|16,749,587,533.00|32%|production and sales ramp-up in the current|
|payable|||||
|||||period|
|Current portion of|||||
||6,068,813,097.00|9,109,708,511.00|-33%|Repayment of bank loans in the current period|
|non-current liabilities|||||
|Finance costs|2,242,661,339.00|1,413,361,041.00|59%|Greater exchange loss and interest expenditure|
|||||Decline in inventory valuation allowances,|
|Asset impairment loss|783,454,658.00|1,757,042,642.00|-55%|which were recorded at the lower of the cost|
|||||and the net realizable value|
|||||Rise in government subsidies in the current|
|Other investment|2,261,274,910.00|458,317,281.00|393%||
|||||period|
|||||Higher gains on wealth management products|
|Investment income|258,565,775.00|61,147,940.00|323%||
|||||during the current period|
|Net cash generated|||||
|||||Rise in bank loan repayments in the current|
|from/used in financing|11,681,695,994.00|27,057,943,017.00|-57%||
|||||period|
|activities|||||

II Progress, Influence and Solutions Associated with Significant Events
√ Applicable□ Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court
against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv Mobile”
BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) hereinafter) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co., Ltd. and JiaYueting, with the total amount of claims being aboutUS$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance and Civil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdiction objection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's Court for verdict on jurisdiction objection. On 29 June 2018, the Supreme People's Court issued the final verdict to dismiss LetvMobile’s appeal and sustain the original ruling. For receivables corresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulations in accounting standard accordingly; therefore, it has uncertain influences on the Company.
||||
|-|-|-|
|||index to disclosure website for|
|Overview of significant events|Disclosure date||
|||interim report|
|Announcement on Connected Transaction regarding Participation inBeijing Electronic Control Industrial Investment Co., Ltd.|||
||31 July 2018|www.cninfo.com.cn|

III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as explanation of why:□ Applicable√ Not applicable
BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
V Securities Investments
√ Applicable□ Not applicable
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Gain/Lo||||||||
|||||||ss on||||||||
|||||||||Purcha|||||Fundin|
|||||||fair-valu|Accumulated|||||||
||Security|Security|Initial|Measure||||sed in|Sold in|Gain/loss in||Accountin||
|Security type||||ment|Beginning|e|fair-value|Report|Reporting|Reporting|Ending carrying||g|
||code|name|investment cost||carrying amount|changes|changes charged||||amount|g title||
|||||method||in|to equity|ing|Period|Period|||source|
|||||||||Period||||||
|||||||Reportin||||||||
|||||||g Period||||||||
|||||||||||||Available-f||
|Domestically/||||Fair||||||||||
|||TPV||||||||||or-sale|Self-fu|
|Overseas|HK00903||134,658,158.00|value|21,584,703.00|0.00|-13,251,799.00|0.00|0.00|196,070.00|14,791,508.00|||
|||Technology||||||||||financial|nded|
|listed stock||||method||||||||||
|||||||||||||assets||
|||||||||||||Available-f||
|Domestically/||||Fair||||||||||
|||Electronic||||||||||or-sale|Self-fu|
|Overseas|SH600658||90,160,428.00|value|108,996,372.00|0.00|23,298,083.00|0.00|0.00|1,875,523.00|69,973,707.00|||
|||Zone||||||||||financial|nded|
|listed stock||||method||||||||||
|||||||||||||assets||
|||||||||||||Available-f||
|Domestically/||||Fair||||||||||
|||Bank of||||||||||or-sale|Self-fu|
|Overseas|HK01963||120,084,375.00|value|130,968,760.00|0.00|-15,895,655.00|0.00|0.00|3,033,233.00|104,188,720.00|||
|||Chongqing||||||||||financial|nded|
|listed stock||||method||||||||||
|||||||||||||assets||
|||BlackRock||||||||||||
|||||||||||||Available-f||
|||Global||Fair||||||||||
|||||||||||||or-sale|Self-fu|
|Funds|BLK|Allocation|0.00|value|6,347,799.00|0.00|2,081,841.00|0.00|6,179,429.00|2,570,403.00|0.00|||
|||||||||||||financial|nded|
|||Fund (USD)||method||||||||||
|||||||||||||assets||
|||A2||||||||||||
|Domestically/||China||Fair||||||||Available-f|Self-fu|
||HK06066||70,041,364.00||65,856,319.00|0.00|-24,453,603.00|0.00|0.00|0.00|45,587,761.00|||
|Overseas||Securities||value||||||||or-sale|nded|

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|listed stock||||method||||||||financial||
|||||||||||||assets||
|||||||||||||Available-f||
|Domestically/||New century||Fair||||||||||
|||||||||||||or-sale|Self-fu|
|Overseas|HK01518|medical|140,895,855.00|value|178,837,871.00|0.00|605,921.00|0.00|662,426.00|1,127,547.00|141,501,776.00|||
|||||||||||||financial|nded|
|listed stock||treatment||method||||||||||
|||||||||||||assets||
|||||||||||||Available-f||
|Domestically/||Z-Obee||Fair||||||||||
|||||||||||||or-sale|Self-fu|
|Overseas|HK00948|Holdings|0.00|value|246,566.00|0.00|305,200.00|0.00|290,658.00|299,797.00|0.00|||
|||||||||||||financial|nded|
|listed stock||Ltd.||method||||||||||
|||||||||||||assets||
|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|||555,840,180.00|--|512,838,390.00|0.00|-27,310,012.00|0.00|7,132,513.00|9,102,573.00|376,043,472.00|--|--|
|Disclosure date of announcement on||||||||||||||
|Board’s consent for securities|||N/A|||||||||||
|investments||||||||||||||
|Disclosure date of announcement on||||||||||||||
|general meeting’s consent for securities|||N/A|||||||||||
|investments||||||||||||||

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) VI Wealth Management Entrustment
√ Applicable□ Not applicable
Unit:RMB’0,000 (in RMB ten thousand yuan)
||||||
|-|-|-|-|-|
||||Outstanding amount||
|Type of wealth management|Funding source|Principal||Overdue amount|
||||before maturity||
|Wealth management product|||||
||Self-funded|1,257,000|583,200|0|
|purchased from bank|||||
|Total||1,257,000|583,200|0|

 High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no protection of the principal:
□ Applicable√ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable√ Not applicable
VII Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
|3 July 2018|By one-on-one meeting|Institution||
|4 July 2018|By one-on-one meeting|Institution||
|5 July 2018|By one-on-one meeting|Institution||
||||Performance of the Company for the first|
|12 July 2018|By one-on-one meeting|Institution||
||||half of the year and industrial situation;|
|17 July 2018|By one-on-one meeting|Institution||
||||Main operating information of the|
|18 July 2018|By one-on-one meeting|Institution|Company;|
||||Technology and product innovation;|
|26 July 2018|By one-on-one meeting|Institution||
||||Future strategic layout.|
|29 August 2018|By one-on-one meeting|Institution||
|13 September 2018|By one-on-one meeting|Institution||
|20 September 2018|By one-on-one meeting|Institution||

BOE Technology Group Co., Ltd. Third Quarter Report 2018 (Summary) IX Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Occupation of theCompany’s Capital by Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Chairman of the Board(signature)：
Wang Dongsheng Date of theBoard’s approval of this Report: 26 October 2018