SEMI-ANNUAL REPORT 2017
August 2017
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 senior management of BOE Technology Group Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any 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 the directors attended the board meeting for the review of this Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
Any plans for the future, development strategies 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 investment risk. For details, see “X Risks Facing the Company and Countermeasures” in Section IV herein.
This Report has been prepared in compliance with the Chinese Accounting Standards for Business Enterprises and other applicable regulations and rules.
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.
Table of Contents
Section I Important Statements, Contents and Definitions ........................................................... 2 Section II Corporate Profile and Key Operating Results............................................................... 5 Section III Business Profile ............................................................................................................... 9 Section IV Performance Discussion and Analysis ......................................................................... 12 Section V Significant Events ........................................................................................................... 23 Section VI Share Changes andShareholders’ Profile ................................................................... 35 Section VII Preference Shares ........................................................................................................ 41 Section VIII Directors, Supervisors and Executive Officers ........................................................ 42 Section IX Corporate Bonds ........................................................................................................... 45 Section X Financial Report ............................................................................................................. 49 Section XI Documents Available for Reference ........................................................................... 167
Definitions
|||
|-|-|
|Term|Definition|
|BOE, the Company, Company, the Group, Group|BOE Technology Group Co., Ltd.|
|Cninfo website|http://www.cninfo.com.cn/|
|CSRC|The China Securities Regulatory Commission|
|OASIS Hospital|The OASIS International Hospital|
|SID|The Society for Information Display|
|DBG|The display and sensor 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- LCD|Thin film transistor- 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|
|IFI|IFI CLAIMS Patent Services|
|TDDI|Touch and Display Driver Integration|

Section II Corporate Profile and Key Operating 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. (if any)|京东方|||
|Company name in English (if any)|BOE TECHNOLOGY GROUP CO., LTD.|||
|Abbr. (if any)|BOE|||
|Legal representative|Wang Dongsheng|||

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 Other Information
1. Ways to Contact the Company
Indicate by tick mark whether any changes occur to the registered address, office address and their postal codes, website address and email address of the Company during the Reporting Period.
□ Applicable√ Not applicable
No changes occurred to the said information during the Reporting Period, which can be found in the 2016 Annual Report.
2. Information Disclosure Media and Place where this Report is Kept
Indicate by tick mark whether any changes occurred to the information disclosure media and the place where this Report was kept
during the Reporting Period.
□ Applicable√ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing this Report and the location where this Report was placed did not change during the Reporting Period. The said information can be found in the 2016 Annual Report.
IV Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes√ No
|||||
|-|-|-|-|
|Item|Reporting Period|Same period of last year|+/- (%)|
|Operating revenue (RMB Yuan)|44,605,027,995.00|26,448,310,717.00|68.65%|
|Net profit attributable to shareholders of the Company (RMB|4,302,605,600.00|-516,472,418.00||
||||-|
|Yuan)||||
|Net profit attributable to shareholders of the Company before||||
||4,017,844,109.00|-2,309,697,388.00|-|
|exceptional gains and losses (RMB Yuan)||||
|Net cash from operating activities (RMB Yuan)|10,638,591,266.00|2,734,086,955.00|289.11%|
|Basic earnings per share (RMB Yuan /share)|0.123|-0.015|-|
|Diluted earnings per share (RMB Yuan /share)|0.123|-0.015|-|
|Weighted average return on equity (%)|4.48%|-0.67%|-|
||End of Reporting Period|End of last year|+/- (%)|
|Total assets (RMB Yuan)|225,472,484,104.00|205,135,011,042.00|9.91%|
|Net assets attributable to shareholders of the Company (RMB|81,811,299,775.00|78,699,988,493.00||
||||3.95%|
|Yuan)||||

V Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and International Accounting Standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
2. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and Foreign Accounting Standards
□ Applicable√ Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains/Losses
√ Applicable□ Not applicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Note|
|Gains/losses on disposal of non-current assets (including offset asset impairment|-19,257,923.00|N/A|
|provisions)|||
|Tax rebates, reductions and exemptions due to approval beyond authority or lack of official|0.00|N/A|
|approval documents|||
|Governmental subsidies charged to gains/losses for Reporting Period (except for|306,365,699.00|N/A|
|government grants closely related to the Company’s normal business operations and|||
|constantly given at fixed quotas or amounts as per government’s uniform standards)|||
|Capital occupation charges on non-financial enterprises that are charged to gains/losses for|0.00|N/A|
|Reporting Period|||
|Profit due to situation where investment costs for the Company to obtain subsidiaries,|0.00|N/A|
|associates and joint ventures are lower than enjoyable fair value of identifiable net assets|||
|of investees when making investments|||
|Gains/losses on non-monetary asset swap|0.00|N/A|
|Gains/losses on investment or asset management entrustments to third parties|0.00|N/A|
|Asset impairment provisions due to acts of God such as natural disasters|0.00|N/A|
|Gains/losses on debt restructuring|0.00|N/A|
|Restructuring costs in staff arrangement, integration, etc.|0.00|N/A|
|Gains/losses on over-fair value amount as a result of transactions with distinctly unfair|0.00|N/A|
|prices|||
|Net Reporting Period gains/losses on subsidiaries acquired through business mergers under|0.00|N/A|
|same control from period-beginning to merger dates|||
|Gains/losses on contingencies irrelevant to the Company’s routine business activities|0.00|N/A|
|Gains/losses on fair value changes of financial assets and liabilities held for trading &|20,704,483.00|N/A|
|investment income from disposal of financial assets and liabilities held for trading as well|||
|as financial assets available for sale, except for effective hedges related to normal business|||
|operations of the Company|||
|Impairment provision reversal for accounts receivable on which impairment test is carried|575,305.00|N/A|
|out separately|||
|Gains/losses on entrusted loans|0.00|N/A|
|Gains/losses on fair value changes in investing properties of which subsequent|0.00|N/A|
|measurement is carried out adopting fair value method|||
|Effect on Reporting Period gains/losses when a one-off adjustment is made to Reporting|0.00|N/A|
|Period gains/losses according to requirements of taxation, accounting and other relevant|||
|laws and regulations|||

||||
|-|-|-|
|Custody fee income when entrusted with operations|0.00|N/A|
|Non-operating income and expense other than above|18,275,029.00|N/A|
|Other gains/losses that meet definition of exceptional gains/losses|0.00|N/A|
|Less: Income tax effects|36,540,381.00|N/A|
|Minority interests effects (after tax)|5,360,721.00|N/A|
|Total|284,761,491.00|--|

 Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent gain/loss:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Section III Business Profile
I Main Business Scope for Reporting Period
BOE Technology Group Co., Ltd. (BOE) was established in April 1993. Its core business covers display and sensor devices, smart systems and healthcare services.
1. Display and Sensor Business Group (DBG)
As a leader in innovation and development of semi-conductor display and sensor devices, 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, micro display, sensor devices, 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. It also provides sensor devices for physical and chemical testing, genetic testing and security, as well as sensor devices with molecular antenna, etc.
2. Smart Business Group (SBG)
Following the main line of “the Internet of Things and artificial intelligence”, the Company is building four business sub-divisions, namely smart manufacturing, smart retail systems, smart vehicle-mounted systems, and smart energy systems. At present, it mainly provides, for its global partners, the most competitive ODM, OEM and customized smart manufacturing services of complete machines, backlight units, etc., as well as specialized Internet of Things solutions for TV, display devices, VR/AR, HD, free form and curved vehicle-mounted display devices, retail systems for art galleries, supermarkets and financial products, photovoltaic power stations, energy management contracting (EMC), plant factories, electrical/carbon asset transactions, etc.
3. Healthcare Business Group (HBG)
With “information medicine and big data” as the basic features, the Company is building a healthcare system covering five sub-divisions, namely mobile healthcare, digital hospitals, regenerative medicine, life insurance and healthcare centers.
II Significant Changes in Main Assets
1. Significant Changes in Main Assets
|||
|-|-|
|Main assets|Reason for significant change in Reporting Period|
|Construction in progress|New construction and equipment procurement increased in Reporting Period|

2. Main Assets Overseas
□ Applicable√ Not applicable
III Core Competitiveness Analysis
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 the first half of 2017, BOE firmly promoted and implemented DSH business strategy, made efforts to strengthen and expand
display and sensor device business, rapidly formed layout of smart system business and health service business, consolidated its businesses and improved global competitiveness.
As for the display and sensor business group (DBG): The Company started to organize production lines for AMOLED and large-size TFT-LCD on an early date. The Chengdu 6th generation flexible AMOLED production line has begun to produce its first product. And the Hefei 10.5th generation TFT-LCD production line has seen equipment move in ahead of schedule. The aforesaid projects offered the security both in capacity and technology for strengthening and expanding the display and sensor device business, as well as for making transformation and upgrade of the Company.
As for the smart business group (SBG): The Company continued to build four business sub-divisions, namely smart manufacturing, smart retail systems, smart vehicle-mounted systems, and smart energy systems. In 2017, the Company invested to upgrade the Hefei whole-machine smart manufacturing line, and launched a program to acquire over50.01% equity interests of SES-imagotag SA, a French-listed company, to materialize the “hardware products+ software platforms+ scenario application” integration.
As for the healthcare business group (HBG): The Company continued to build five business sub-divisions, namely mobile healthcare, digital hospitals, regenerative medicine, life insurance and healthcare centers. The BOE (Chengdu) Digital Medical Center Project Investment& Cooperation Agreement and theBOE—Beihang University“China’s Medical Silicon Valley” Project Cooperation Framework Agreement have been signed. Through these strategic cooperation plans, BOE is trying to make innovations in the healthcare sector and promote development inChina’s important emerging industries such as the Internet of Things and healthcare. 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 the display and sensor business group (DBG): according to IHS Markit (Information Handling Services, Inc.& Markit Ltd.) data, as of the end of this June,BOE’s LCD display screens for smart phones, for tablets and for lap tops boast the largest shares in their respective markets worldwide. As for the smart business group (SBG): BOE has successfully established relationships with globally famous customers, with the whole-machine shipment approaching 7 million units, as well as remarkable increases inBOE’s shares in the markets of smart display systems for TV and MNT, in the first half of this year;BOE’s smart vehicle-mounted display systems are successfully installed into itscustomers’ vehicles; and VR/AR projects are well underway.
3. Reinforce independent innovation and further promote innovation ability
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint value creation”, continued to strengthen construction of patent attack and defense system, 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. The first half of 2017 sees the increasing number ofBOE’s new patent applications. In this period, BOE applied for 4,363 new patents (year-on-year growth rate:5%), of which the year-on-year growth rate of flexible OLED, artificial intelligence and big data is22%. In addition, 2,262 licensing patents (year-on-year growth rate:34%) were gained. BOE has listed among TOP 50 enterprises in terms of the number of 2016 USA licensing patents issued by IFI in January and among TOP 10 enterprises in terms of the number of 2016 international patent applications issued by World Intellectual Property Organization (WIPO) in February. Meanwhile, promoting technology and product innovation, BOE has been the first enterprise to launch 1.5-inch FIC (Full In Cell) OLED, 2.1-inch VR (pixel density: 2300PPI), 5-inch ink-jet printer AMQLED, 5.2-inch eye-caring display screen, 5.5-inch QHD eye tracking 3D and other products with world-leading technologies in the world and win “Best In Show” Award. Furthermore, BOE has launched 5.5-inch QHD and 5.9-inch FHD (Full High Definition) flexible OLED products in new production line of Chengdu, launched 27-inch/65-inch 8K UHR products, increased the sales volume of smart phone TDDI, launched 10.1-inch WU TDDI of TPC (Tablet Personal Computer) and 13.3-inch FHD MLOC (Multi-layer On
Cell) Active Pen, and increased the sales volume of high-resolution products.
4. Push forward transformation and upgrading and further promoted brand image
With the promotion of transformation and upgrading, BOE has further improved its products and service quality, motivated the innovation vigor of the organization, enhanced the publicity and marketing promotion, and improved brand image. BOE has accelerated to expand the market channels in the world: run subsidiaries in Russia, Brazil and the Middle East; further strengthened marketing network layout in China: set Chengdu sub-headquarters in Southwest China and 14 subsidiaries in Qingdao, Tianjin, Shenyang, Shijiazhuang, Taiyuan, Hangzhou, Nanjing, Hefei,Xi’an, Chongqing, Guangzhou, Wuhan, Changsha and Xiamen; promoted the sales capacity and channel establishment of iGallery painted screen, MTX and other innovation-based transformational products and supported their transformation to integrated software and hardware and service marketing; optimized the all-rounded and multi-layered on-line distribution platform led by official website, official Weibo and APP; innovated the contents and distribution modes of official Weibo; participated in SID, Professional Commercial Display Exhibition (Japan) and other famous international exhibitions; gained a number of awards and further promoted the brand image.
Section IV Performance Discussion and Analysis
I Summary
In order to seize opportunities arising from the shift from the post-Internet era to the Fourth Industrial Revolution across the world, embrace new technologies and make a new leap to a globally-advanced company in the sector of the Internet of Things, the Company has further positioned itself as an “Internet of Things company that offers smart interface products and professional services for information interaction andmankind’s health”.
The first half of 2017 saw a slow recovery in the global economy and a pickup inChina’s economy. With balanced supply and demand, the display market was stable. Under such circumstances, the Company continued to unwaveringly follow the DSH (Display, Smart systems and Healthcare services) strategy, and work on new business responsively, with the purpose of solidifying and increasing its global competitiveness. As a result, the Reporting Period has seen a larger market share, more distribution channels and a stronger branding ability of the Company. In addition, the Company has furthered its lean management, which has produced better energy consumption and earnings results. Meanwhile, its major construction projects went on smoothly and all its substantial plans are well underway. For the Reporting Period, the Company achieved, on a consolidated basis, operating revenues of RMB 44.6 billion Yuan, up69% compared to the same period of last year; and net profit of RMB 4.3 billion Yuan, representing a significant year-on-year growth. Details about theCompany’s business divisions in the Reporting Period are given as follows:
(1) Display and Sensor Business Group (DBG)
The overall market share of semiconductor display products increased stably. The market share of main products in subdivided markets was in the leading position in the industry. The market share of LCD display screen of smart phones, display of tablets, and display of laptops kept ranking as the world number 1. Products representing the globally frontier technologies, which included 1.5-inch FIC OLED, 2.1-inch VR with high pixel density of 2300PPI, 5-inch ink-jet printing AMQLED, 5.2-inch eye-protective display, 5.5-inch QHD human-eye-tracking 3D, were firstly launched in the world and won the SID “Best in Show” Award. Multiple Flexible OLED products were successfully lightened in new production line. 8K ultrahigh resolution series, TDDI products, MLOC active pen were successfully put into market. The potential dig-out of capacity was deepened through continuous reinforcement of lean management and optimization of bottle-neck techniques. Capacity of the Beijing, Hefei, Chongqing 8.5th Generation Line set a new record. Yield rate of key projects distinctly rose up. The result of optimization of product structure was remarkable. TheCompany’s competitive power made continuous enhancement. Projects in key production lines in Chengdu, Hefei, Fuzhou, Mianyang, etc. were smoothly boosted, of which some production lines realized lightening or mass production in advance. Innovation and transform were accelerated for the sensor business. The photoelectric sensor was developed. Projects of physical and chemical testing, molecular antenna, and security were stably advanced. Samples for glass-based fingerprint identification were made out. Cooperation intention with the 1st class clients in domestic and overseas market was agreed for gene sequencing.
(2) Smart Business Group (SBG)
The globally well-known branded clients were successfully developed. The shipment of whole machines with smart-manufacturing service continuously increased. The project construction for smart factories was stably carried forward. Integrated planning for the 1st -phase smart logistics of Hefei smart factory was accomplished, which substantially saved human labors and realized smooth mass production. Structure capping of main plant of Chongqing smart factory was finished 43 days in advance. Smart vehicle-connection business was being constantly and deeply integrated. The Chengdu vehicle-mounted base smoothly wonclient’s authentication. In terms of smart retail, the Company stared the acquisition of the French SES company, worked out retail solutions for shops and supermarkets, preliminarily formed production lines of iGallery painted-screen art retail business, the system of RFID Internet-of-Things for physical retail stores, and the system of financial retail Internet-of-Things. The reservation of electricity
generation by smart power was sustainably improved.
(3) Healthcare Business Group (HBG)
In terms of health service business, business structure of synergetic development of mobile health, digital hospital, regenerative medicine, and health park was formed. As for mobile health, the noninvasive multiparameter detector (MTX) and mobile health management platform (APP) were promoted. The noninvasive combined glucometer (COG) was recognized by CFDA (China Food and Drug Administration) authentication. Business performance of the OASIS Hospital kept a year-on-year growth. The construction of Hefei Digital Hospital was steadily advanced. Projects in Beijing, Chengdu, and etc. were being positively planned. As for regenerative medicine, the construction of research institute for trinity regenerative medicine was started up, and domestically initiative cell sheets, such as myocardium and cornea were brought out. License application for the insurance company was steadily advanced. Capacity of the health park was constantly strengthened. On the basis of stable operation of the existing park, the Company developed TS project and promoted its actual operation.
II Analysis of Main Business
See “I Summary” above.
Year-on-year changes of key consolidated financial data:
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Same period of last|||
|Item|Reporting Period||+/-%|Main reason for change|
|||year|||
||44,605,027,995.00|26,448,310,717.00||Larger size of the Company and|
|Operating revenues|||68.65%||
|||||changes in industry prospects|
|Operating costs|32,235,266,589.00|23,987,091,158.00|34.39%|Operating activities increased|
|Selling expense|1,228,560,863.00|696,216,454.00|76.46%|Operating activities increased|
||3,052,661,575.00|2,311,090,435.00||New projects were put into operation|
|Administrative expense|||32.09%||
|||||and R&D was strengthened|
|financial expense|1,099,113,182.00|1,234,879,010.00|-10.99%|-|
|Income taxes|940,261,615.00|56,258,311.00|1,571.33%|Earnings increased significantly|
|R&D input|3,169,248,290.00|1,944,443,159.00|62.99%|R&D was strengthened|
|Net cash from operating|10,638,591,266.00|2,734,086,955.00|||
||||289.11%|Increased earnings of the Company|
|activities|||||
||-31,989,473,181.00|-12,633,262,404.00||Increased payments for engineering|
|Net cash from investing|||||
||||153.22%|and equipment purchase for ongoing|
|activities|||||
|||||projects|
|Net cash from financial|15,249,414,489.00|13,870,080,988.00|||
||||9.94%|-|
|activities|||||
||-6,556,493,365.00|3,853,303,396.00||Increased payments for engineering|
|Net increase in cash and|||||
||||-|and equipment purchase for ongoing|
|cash equivalents|||||
|||||projects|

Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Breakdown of main business:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Operating||Gross profit|
||||Gross profit||Operating cost:||
|Item|Operating revenue|Operating cost||revenue: YoY||margin: YoY|
||||margin||YoY +/-%||
|||||+/-%||+/-%|
|By business segment|||||||
|DBG|40,261,582,742.00|28,802,055,244.00|28.46%|72.93%|34.53%|20.42%|
|SBG|8,271,879,666.00|7,609,162,350.00|8.01%|55.58%|56.40%|-0.48%|
|HBG|489,914,987.00|246,278,933.00|49.73%|16.14%|4.35%|5.68%|
|Others|442,168,181.00|8,488,146.00|98.08%|11.17%|227.52%|-1.27%|
|Offset|-4,860,517,581.00|-4,430,718,084.00|8.84%|63.66%|75.40%|-6.10%|
|By product|||||||
|DBG|40,261,582,742.00|28,802,055,244.00|28.46%|72.93%|34.53%|20.42%|
|SBG|8,271,879,666.00|7,609,162,350.00|8.01%|55.58%|56.40%|-0.48%|
|HBG|489,914,987.00|246,278,933.00|49.73%|16.14%|4.35%|5.68%|
|Others|442,168,181.00|8,488,146.00|98.08%|11.17%|227.52%|-1.27%|
|Offset|-4,860,517,581.00|-4,430,718,084.00|8.84%|63.66%|75.40%|-6.10%|
|By geographic segment|||||||
|China|21,530,313,687.00|16,557,000,170.00|23.10%|49.60%|28.96%|12.31%|
|Other Asian|||||||
|countries and|20,890,540,227.00|13,921,857,265.00|33.36%|101.07%|44.99%|25.78%|
|regions|||||||
|Europe|1,035,237,551.00|830,230,698.00|19.80%|47.78%|25.90%|13.93%|
|America|1,112,938,978.00|897,136,045.00|19.39%|23.80%|8.83%|11.08%|
|Other countries|||||||
||35,997,552.00|29,042,411.00|19.32%|-46.77%|-53.53%|11.74%|
|and regions|||||||

III Non-Core Business Analysis
□ Applicable√ Not applicable
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||End of Reporting Period||End of same period of last year||||
||||||Change in||
|Item||As a percentage of||As a percentage of||Main reason for significant change|
||Amount||Amount||percentage (%)||
|||total assets (%)||total assets (%)|||
|Monetary funds|50,760,400,727.00|22.51%|44,519,079,579.00|26.15%|-3.64%|N/A|
|Accounts receivable|16,863,534,739.00|7.48%|10,729,817,649.00|6.30%|1.18%|N/A|
|Inventories|9,759,164,036.00|4.33%|7,200,449,513.00|4.23%|0.10%|N/A|
|Investment|1,271,764,715.00|0.56%|1,210,463,063.00|0.71%|-0.15%|N/A|
|Long-term equity investment|1,981,030,454.00|0.88%|1,700,914,108.00|1.00%|-0.12%|N/A|
|Fixed assets|78,898,829,994.00|34.99%|63,258,787,740.00|37.15%|-2.16%|N/A|
|Construction in progress|44,127,069,216.00|19.57%|20,213,753,534.00|11.87%|7.70%|Construction of new projects went on|
|Short-term borrowings|6,088,832,994.00|2.70%|1,675,552,145.00|0.98%|1.72%|N/A|
|Long-term borrowings|53,462,402,931.00|23.71%|41,917,658,001.00|24.62%|-0.91%|N/A|
|||||||Lower non-current liabilities due within 1|
|Non-current liabilities due|||||||
||9,749,188,493.00|4.32%|2,556,088,170.00|1.50%|2.82%|year as of end of same period of last year due|
|within 1 year|||||||
|||||||to prepayment of bank loan in prior year|
|Accounts payable|15,215,611,240.00|6.75%|11,123,142,770.00|6.53%|0.22%|N/A|
|||||||Increased payables for equipment and|
|Other payables|15,003,435,170.00|6.65%|8,230,251,535.00|4.83%|1.82%||
|||||||engineering for projects under construction|

2. Assets and Liabilities Measured at Fair Value
√ Applicable□ Not applicable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Gains/losses on fair|Cumulative fair value|||||
|||||Impairment provided|Purchased in|Sold in Reporting||
|Item|Opening balance|value changes in|changes charged to||||Closing balance|
|||||in Reporting Period|Reporting Period|Period||
|||Reporting Period|equity|||||
|Financial assets||||||||
|1. Financial assets at fair value||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|through gains/losses (exclusive of||||||||
|derivative financial assets)||||||||
|2. Derivative financial assets|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3. Available-for-sale financial assets|394,236,151.00|0.00|109,924,502.00|0.00|142,474,623.00|0.00|533,895,645.00|
|Subtotal of financial assets|394,236,151.00|0.00|109,924,502.00|0.00|142,474,623.00|0.00|533,895,645.00|
|Investment property|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Productive living assets|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Others|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Total of above|394,236,151.00|0.00|109,924,502.00|0.00|142,474,623.00|0.00|533,895,645.00|
|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 the Reporting Period:
□ Yes√ No
3. Restricted Asset Rights as of End of the Reporting Period
||||
|-|-|-|
|Item|Closing book value|Reason for restriction|
|Monetary funds|7,962,083,704.00|Guarantee and security deposits|
|||Discounted and transferred with right of recourse, endorsed and|
|Notes receivable|540,548,942.00||
|||transferred with right of recourse, as pledge for opening notes payable|
|Fixed assets|50,748,500,303.00|Mortgage|
|Intangible assets|897,094,942.00|Mortgage|
|Investment property|210,681,631.00|Mortgage|
|Construction in progress|5,366,306,707.00|Mortgage|
|Total|65,725,216,229.00|--|

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)|+/-%|
|787,439,623.00|467,187,000.00|68.55%|

 2. Significant Equity Investments Made in the Reporting Period
□ Applicable√ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable√ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Profit/loss on|||||||Source of|
||||||||Cumulative fair|||||||
|Variety of|Code of|Name of|Initial|Accounting||fair value||Purchased in|Sold in this|Profit/loss in||Accounting||
|||||measurement|Opening book|changes in this|value changes|this Reporting|Reporting|this Reporting|Closing book||investment|
|securities|securities|securities|investment cost||value||charged to||||value|title||
|||||model||Reporting|equity|Period|Period|Period|||funds|
|||||||Period||||||||
|||||||||||||Available-fo||
|Domestic/over||TPV||Fair value||||||||r-sale||
||HK00903||134,658,158.00||28,763,373.00|0.00|8,322,132.00|0.00|0.00|930,175.00|36,365,439.00||Subscription|
|seas stock||Technology||method||||||||financial||
|||||||||||||asset||
|||||||||||||Available-fo||
|Domestic/over||Electronic||Fair value||||||||r-sale||
||SH600658||90,160,428.00||129,715,503.00|0.00|81,468,760.00|0.00|0.00|0.00|128,144,384.00||Share swap|
|seas stock||Zone||method||||||||financial||
|||||||||||||asset||
|||||||||||||Available-fo||
|Domestic/over||Bank of||Fair value||||||||r-sale||
||HK01963||120,084,375.00||148,067,614.00|0.00|16,348,465.00|0.00|0.00|7,331,745.00|136,432,840.00||Subscription|
|seas stock||Chongqing||method||||||||financial||
|||||||||||||asset||
|||||||||||||Available-fo||
|Domestic/over||China||Fair value||||||||r-sale||
||HK06066||70,041,364.00||69,367,469.00|0.00|-1,558,551.00|0.00|0.00|2,049,750.00|68,482,813.00||Subscription|
|seas stock||Securities||method||||||||financial||
|||||||||||||asset||
|||New century||||||||||Available-fo||
|Domestic/over||||Fair value||||||||||
||HK01518|medical|142,474,623.00||0.00|0.00|1,523,876.00|142,474,623.00|0.00|0.00|143,998,499.00|r-sale|Subscription|
|seas stock||||method||||||||||
|||treatment||||||||||financial||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||asset||
|||Black Rock||||||||||||
|||GF World||||||||||Available-fo||
|||Health||Fair value||||||||r-sale||
|Funds|Naught||4,004,297.00||5,974,163.00|0.00|2,214,183.00|0.00|0.00|0.00|6,218,480.00||Subscription|
|||Science||method||||||||financial||
|||Fund A2||||||||||asset||
|||USD||||||||||||
|Other securities investments held at the||||||||||||||
||||0.00|--|0.00||0.00|0.00|0.00|0.00|0.00|--|--|
|period-end||||||||||||||
|Total|||561,423,245.00|--|381,888,122.00|0.00|108,318,865.00|142,474,623.00|0.00|10,311,670.00|519,642,455.00|--|--|
|Disclosure date of the announcement||||||||||||||
|about the board’s consent for the|||Naught|||||||||||
|securities investment||||||||||||||
|Disclosure date of the announcement||||||||||||||
|about the general meeting’s consent for|||Naught|||||||||||
|the securities investment (if any)||||||||||||||

(2) Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable√ Not applicable
No such cases in the 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|||||||||
|Company name||Main business scope|Industry|Registered capital|Total assets|Net assets|Operating revenues|Operating profit|Net profit|
||with the|||||||||
||Company|||||||||
|Hefei BOE||Investment, construction, R&D, production||||||||
|Optoelectronics||and sales of the relevant products of thin|Semiconductor|||||||
||Subsidiary|||9,000,000,000.00|17,060,160,937.00|9,690,898,546.00|8,216,589,999.00|682,949,366.00|585,486,281.00|
|Technology Co.,||film transistor LCD and its auxiliary|display|||||||
|Ltd.||products||||||||
|Beijing BOE||||||||||
|Display|||Semiconductor|||||||
||Subsidiary|Development and production of TFT-LCD||17,882,913,500.00|28,356,299,152.00|21,111,137,252.00|10,689,291,263.00|1,302,468,628.00|1,188,816,896.00|
|Technology Co.,|||display|||||||
|Ltd.||||||||||
|Hefei Xinsheng||Investment, construction, R&D, production||||||||
|Optoelectronics||and sales of the relevant products of thin|Semiconductor|||||||
||Subsidiary|||19,500,000,000.00|33,628,363,223.00|22,107,385,325.00|6,946,716,077.00|1,245,978,335.00|1,111,762,969.00|
|Technology Co.,||film transistor LCD and its auxiliary|display|||||||
|Ltd.||products||||||||
|Chongqing BOE||Investment, construction, R&D, production||||||||
|Optoelectronics||and sales of the relevant products of thin|Semiconductor|||||||
||Subsidiary|||19,226,000,000.00|38,522,003,462.00|22,103,695,144.00|9,457,315,749.00|2,391,041,522.00|2,043,698,978.00|
|Technology Co.,||film transistor LCD and its auxiliary|display|||||||
|Ltd.||products||||||||

Subsidiaries obtained or disposed in this Reporting Period
√ Applicable□ Not applicable
||||
|-|-|-|
||How the subsidiary was obtained or disposed||
|Subsidiary||Effect on overall production and operation results|
||in this Reporting Period||
|||Subsidiary incorporated to build the 6th generation AMOLED (flexible) production line|
|Mianyang BOE Optoelectronics Technology Co., Ltd.|Invest to establish||
|||Expected to produce positive effects on the Company|
|||Subsidiary incorporated for healthcare business|
|BOE Regenerative Medicine Technology Co., Ltd.|Invest to establish||
|||Expected to produce positive effects on the Company|
|||Subsidiary incorporated for healthcare business|
|Beijing BOE Health Technology Co., Ltd.|Invest to establish||
|||Expected to produce positive effects on the Company|
|BOE Brazil Consulting Service Co., Ltd|Invest to establish|Subsidiary incorporated for overseas marketing|
|||Subsidiary acquired for smart energy system business|
|Hebei Huanda Trade Co., Ltd*|Asset acquisition||
|||Expected to produce positive effects on the Company|
|||Subsidiary acquired for smart energy system business|
|Pinghu Juhui New Energy Co., Ltd*|Asset acquisition||
|||Expected to produce positive effects on the Company|
|||Subsidiary acquired for smart energy system business|
|Shaoxing Juhui New Energy Co., Ltd*|Asset acquisition||
|||Expected to produce positive effects on the Company|
|||Subsidiary acquired for smart energy system business|
|Zhuji Dinghui New Energy Co., Ltd*|Asset acquisition||
|||Expected to produce positive effects on the Company|
|||Subsidiary incorporated for smart retail system business|
|Beijing BOE Yiyun Technology Co., Ltd.|Invest to establish||
|||Expected to produce positive effects on the Company|

*：A company newly consolidated by the Company to strengthen the smart energy system business. For details, see the Announcement on Increase of Investment in BOE Energy Technology Co., Ltd. disclosed on July 27, 2016.
VIII Structured Bodies Controlled by the Company
□ Applicable√ Not applicable
IX Performance Forecast for January-September 2017
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of the next reporting period, as well as the reasons:
□ Applicable√ Not applicable
X Risks Facing the Company and Countermeasures
1. Risks of macroeconomic fluctuation
The second half of 2017 will see more complicated macro economy and market environment. The global economic growth is expected to be rebounded, which is hard to break away from long-term stagnation due to the uncertain politics, increasing trade protectionism and incremental instability factor of financial foreign exchange market. Increasing price of raw materials brought by the structural transformation ofChina’s economy pushes the main traditional products to a new round of fierce price competition in product market.
Adhering to the philosophy of driving transformation and upgrading by innovation, BOE will grasp the market opportunities brought by fast-developing Internet of Things, continuously improve the operation efficiency of production line, optimize the product structure, speed up the improvement of AMOLED competitiveness in the world, promote the sensing industry development, lay a solid foundation for the software and hardware-integrated technology, accelerate the establishment of core competence of information-based medical treatment, boost the implementation of“Internet+ strategy”, promote the business transformation and upgrading and enhance the overall profitability.
2. Management risks of transformation and upgrading
BOE has established the normative management system and well managed the operation. However, the developing DSH business strategy increases the productivity scale, expands the business field, enhances the management range and difficulty of operating decision, operating management and risk control, and sets higher requirements onBOE’s operation and management level.
BOE will promote the overall capacity reform and reconstruction of organizations that face the era of Internet of Things, further strengthen the strategy control and implementation capacity, improve the standardization control platform and informatization management system, establish the awareness, capacity and operating system of positive strategy control and professional service, cultivate, develop and introduce the top operation and management talents in time and make them play an effective role, and meet the operation management requirements of business upgrading.
To deal with the risks above, the Company will strictly follow applicable laws and regulations in its activities, disclose important information in a timely, accurate and complete manner, and improve communication with investors. In addition, the Company will take effective measures to minimize risks and create more value for its shareholders, especially minority shareholders.
Section V Significant Events
I Annual and Special Meetings of Shareholders Convened during the Reporting Period 1. Meetings of Shareholders Convened during the Reporting Period
|||||||
|-|-|-|-|-|-|
|||Investor|||Index to disclosedinformation|
|Meeting|Type||Convened date|Disclosure date||
|||participation ratio||||
|2016 Annual Meeting|Annual Meeting of|||||
|||35.65%|06/09/2017|06/10/2017|www.cninfo.com.cn|
|of Shareholders|Shareholders|||||

2. Special Meetings of Shareholders Convened at Request of Preference Shareholders with Resumed Voting Rights
□ Applicable√ Not applicable
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for the Reporting Period
□ Applicable√ Not applicable
For the Reporting Period, the Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
III Commitments of theCompany’s Actual Controller, Shareholders, Related Parties and Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting Period or still Ongoing at Period-End
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of||Date of|Period of||
|||||||Fulfillme|
|Commitment|Commitment maker|commitme|Contents|commitme|commitme||
|||||||nt|
|||nt||nt making|nt||
|Commitments made in share|||||||
||Naught||||||
|reform|||||||
|Commitments made in|||||||
|acquisition documents or|||||||
||Naught||||||
|shareholding alteration|||||||
|documents|||||||
|Commitments made in time of|||||||
||Naught||||||
|asset restructuring|||||||

||||||||
|-|-|-|-|-|-|-|
||Beijing State-owned||||||
||||Committed that the||||
||Capital Operation and||||||
||||shares acquired from||||
||Management Center,|Restricted|||||
||||purchasing would not be||||
|Commitments made in time of|Hefei Jianxiang|shares||04/08/201|||
||||transferred from the first||36 months|Fulfilled|
|IPO or refinancing|Investment Co., Ltd.,|commitme||4|||
||||date of issuing the newly||||
||Chongqing Capital|nts|||||
||||increased shares of the||||
||Optoelectronics||||||
||||issuer within 36 months||||
||Investment Co., Ltd.||||||
|Equity incentive commitments|Naught||||||
|Other commitments made to|||||||
||Naught||||||
|minority shareholders|||||||
|Fulfilled on time|Yes||||||
|Specific reasons for failing to|||||||
|fulfill commitments on time and|Naught||||||
|plans for next step|||||||

IV Engagement and Disengagement of CPAs Firm
Has the semi-annual financial report been audited?
□Yes√ No
This Semi-Annual Report is unaudited.
V Explanations Given by Board of Directors and Supervisory Board Regarding “ModifiedAuditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable√ Not applicable
VI Explanations Given by Board of Directors Regarding “ModifiedAuditor’s Report” Issued for Last Year
□ Applicable√ Not applicable
VII Bankruptcy and Restructuring
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Other legal matters:
√ Applicable□ Not applicable
|||||||||
|-|-|-|-|-|-|-|-|
||Lawsuit|||Trial results and|Situation of|||
|Basic situation of||Whether form|Process of|||||
||amount|||influences of|execution of|Disclosure|Disclosure|
|lawsuit||into estimated|lawsuit|||||
||(RMB ‘0,000|||lawsuit|judgment of lawsuit|date|index|
|(arbitration)||liabilities|(arbitration)|||||
||Yuan)|||(arbitration)|(arbitration)|||
|Legal matters||||||||
|(including former||||||||
|years carry-over)|4,282.1|No|Naught|Naught|Naught|Naught|Naught|
|in the first half of||||||||
|year 2017||||||||

IX Punishments and Rectifications
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual Controller
□ Applicable√ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for Employees
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XII Significant Related Transactions
1. Related Transactions Relevant to Routine Operations
□ Applicable√ Not applicable
Not applicable because the routine related parties incurred in the Reporting Period did not reach5% of lastyear’s audited
consolidated net assets in value.
2. Related Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related Transactions
□Applicable√ Not applicable
No such cases in the Reporting Period.
XIII. Particulars about the Non-operating Occupation of Funds by the Controlling Shareholder and Other Related Parties of the Company
□ Applicable√ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the Reporting Period.
XIV. 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
The Company sold and leased back certain fixed assets in the Reporting Period, which did not affect its normal use of these fixed assets.
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.
2. Significant Guarantees
√ Applicable□ Not applicable
(1) Guarantees
Unit: RMBYuan’0,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantees provided by the company for external parties (excluding those for subsidiaries)|||||||||
||Disclosure date on|||||||Guarantee|
||relevant|Amount for|Actual occurrence date|Actual guarantee|||Executed|for a|
|Guaranteed party|||||Type of guarantee|Period of guarantee|||
||announcement of|guarantee|(date of agreement)|amount|||or not|related|
||guaranteed amount|||||||party or not|
|Naught|||||||||
|Total guarantee line for external parties approved||||Total actual guarantee amount for external|||||
|||0||||0|||
|during the Reporting Period (A1)||||parties during the Reporting Period (A2)|||||
|||||Total actual guarantee balance for external|||||
|Total approved guarantee line for external parties|||||||||
|||0||parties at the end of the Reporting Period||0|||
|at the end of the Reporting Period (A3)|||||||||
|||||(A4)|||||
|Guarantees between the Company and its subsidiaries|||||||||
|||||||||Guarantee|
||Disclosure date of||Actual occurrence date||||||
|||Line of||Actual guarantee||||for a|
|Guaranteed party|the guarantee line||(date of agreement||Type of guarantee|Term of guarantee|Due or not||
|||guarantee||amount||||related|
||announcement||signing)||||||
|||||||||party or not|
|Hefei BOE Photoelectric|||||Joint liability||||
||08/14/2014|747,220|03/12/2015|269,080||07/23/2010 - 07/23/2019|No|No|
|Technology Co., Ltd.|||||guarantee||||
|Beijing BOE Display|||||Joint liability||||
||08/14/2014|1,059,379|09/30/2014|136,064||01/27/2011 - 01/26/2020|No|No|
|Technology Co., Ltd.|||||guarantee||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Hefei Xin Sheng|||||||||
||||||Joint liability||||
|Photoelectric Technology|08/14/2014|1,253,264|01/15/2015|785,830||01/06/2014 - 01/06/2022|No|No|
||||||guarantee||||
|Co., Ltd.|||||||||
|Ordos Yuan Sheng|||||||||
||04/02/2013|475,171|05/22/2013|351,098|Pledge|06/17/2013 - 06/09/2021|No|No|
|Photoelectric Co., Ltd.|||||||||
|Ordos Yuan Sheng|||||Joint liability||||
||08/14/2014|475,171|09/30/2014|351,098||06/17/2013 - 06/09/2021|No|No|
|Photoelectric Co., Ltd.|||||guarantee||||
|Chongqing BOE|||||||||
||||||Joint liability||||
|Photoelectric Technology|08/14/2014|1,442,947|9/29/2014|1,048,062||11/05/2014 - 11/05/2022|No|No|
||||||guarantee||||
|Co., Ltd.|||||||||
|Chongqing BOE|||||||||
||||||Joint liability|Opening date of the letter of|||
|Photoelectric Technology|08/14/2014|300,000|05/25/2015|105,000|||No|No|
||||||guarantee|guarantee - 12/31/2020|||
|Co., Ltd.|||||||||
|Fuzhou BOE Photoelectric|||||Joint liability||||
||12/10/2015|1,354,880|12/29/2015|806,393||12/19/2016-12/19/2025|No|No|
|Technology Co., Ltd.|||||guarantee||||
|||||||6 years from the opening|||
|Fuzhou BOE Photoelectric|||||Joint liability||||
||12/10/2015|300,000|11/08/2016|108,000||date of the letter of|No|No|
|Technology Co., Ltd.|||||guarantee||||
|||||||guarantee|||
|Hefei BOE Display|||||Joint liability||||
||12/01/2016|1,666,502|12/26/2016|1,094,736||12/26/2016-12/26/2017|No|No|
|Technology Co., Ltd.|||||guarantee||||
|Ordos Yuan Sheng|||||Joint liability||||
||12/01/2016|550,000|03/17/2017|335,388||03/17/2017-03/17/2025|No|No|
|Photoelectric Co., Ltd.|||||guarantee||||
|Total guarantee line for subsidiaries approved||||Total actual guarantee amount for|||||
|||2,750,000||||729,552|||
|during the Reporting Period (B1)||||subsidiaries during the Reporting Period (B2)|||||
|||||Total actual guarantee balance for|||||
|Total approved guarantee line for subsidiaries at|||||||||
|||11,899,364||subsidiaries at the end of the Reporting||5,039,652|||
|the end of the Reporting Period (B3)|||||||||
|||||Period (B4)|||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Guarantees between subsidiaries||||||||||
||||||||||Guarantee|
||Disclosure date of|||Actual occurrence date||||||
||||Line of||Actual guarantee||||for a|
|Guaranteed party|the guarantee line|||(date of agreement||Type of guarantee|Term of guarantee|Due or not||
||||guarantee||amount||||related|
||announcement|||signing)||||||
||||||||||party or not|
|Ordos Yuan Sheng||||||||||
||04/02/2013||475,171|05/22/2013|351,098|Pledge|06/17/2013 - 06/09/2021|No|No|
|Photoelectric Co., Ltd.||||||||||
|Huanda Trading (Hebei)||||||Joint liability||||
||Naught||14,600|0 5/24/2017|14,590||06/15/2017-01/16/2029|No|No|
|Co., Ltd||||||guarantee||||
|Total guarantee line for subsidiaries approved|||||Total actual guarantee amount for|||||
||||14,600||||14,590|||
|during the Reporting Period (C1)|||||subsidiaries during the Reporting Period (C2)|||||
||||||Total actual guarantee balance for|||||
|Total approved guarantee line for subsidiaries at||||||||||
||||14,600||s ubsidiaries at the end of the Reporting||14,590|||
|the end of the Reporting Period (C3)||||||||||
||||||Period (C4)|||||
|Total guarantee amount (total of the above-mentioned three kinds of guarantees)||||||||||
|Total guarantee line approved during the|||||Total actual guarantee amount during the|||||
|||2,764,600|||||744,142|||
|Reporting 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 of|||||
|||11,913,964|||||5,054,242|||
|Reporting Period (A3+B3+C3)|||||the Reporting Period (A4+B4+C4)|||||
|Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company|||||61.78%|||||
|Of which:||||||||||
|Amount of guarantees provided for shareholders, the actual controller and their related||||||||||
||||||0|||||
|parties (D)||||||||||
|Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset||||||||||
||||||14,590|||||
|ratio over 70% (E)||||||||||
|Portion of the total guarantee amount in excess of 50% of net assets (F)|||||595,352|||||

|||
|-|-|
|Total amount of the three kinds of guarantees above (D+E+F)|595,352|
|Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any)|Naught|
|Provision of external guarantees in breach of the prescribed procedures (if any)|Naught|

1.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
2. Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset ratio over70% is guarantees betweensubsidiaries，relevant procedure has been performed according to Administration of External Guarantee of the company.
(2) Illegal Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable√ Not applicable
No such cases in the Reporting Period.
XV. Social Responsibilities
1. Targeted Measures Taken to Help People Lift Themselves Out of Poverty
The Companydidn’t carry out the work on targeted poverty alleviation, and subsequent targeted poverty alleviation plan in the Reporting Period.
2. Significant Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China
Yes
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Name of||||||||||||
|||||||Quantity||||Executed||Approved|||
||||Main||||||||Total|||Excessive|
||Name of Company or|||||of||Distribution Information of|Emission|Emission||Total|||
||||Pollutant and|Discharge Method|||||||Weight of|||Emission|
||subsidiary|||||Emission||Emission Outlet|Concentration|Standard of||Weight of|||
||||Distinctive||||||||Emission (t)|||Condition|
|||||||Outlet||||Pollutant||Emission (t)|||
||||Pollutant||||||||||||
|Beijing BOEOptoelectronicsTechnology Co.,Ltd.||||Standard emission|2||South gate of factory, northwestcorner of factory||||||||
||||COD||||||113.04mg/L|500mg/L|158.15t|702.68t|||
|||||after being treated by|||||||||||
||||Ammonia|sewage treatment||||||||||None|
||||||||||13.75mg/L|45 mg/L|19.18t|55.93t|||
||||nitrogen|system|||||||||||
||Chengdu BOE|||Standard emission|||||||||||
||||COD||||||235.41mg/L|500mg/L|127.12t|490.51t|||
||Optoelectronics|||after being treated by|||||||||||
||Technology Co.,|Ammonianitrogen||sewage treatment||1||North side of factory||||||None|
||||||||||15.46mg/L|45 mg/L|8.35t|25.249 t|||
||Ltd.|||system|||||||||||
||Hefei BOE|||Standard emission|||||||||||
||||COD||||||59.47mg/L|380mg/L|103.37t|1059 t||None|
||Optoelectronics|||after being treated by|||||||||||
||Technology Co.,||Ammonia|sewage treatment||1||Northwest corner of factory|||||None||
||||||||||3.38mg/L|30mg/L|5.87t|99.2 t|||
||Ltd.||nitrogen|system|||||||||||
|||||||||East gate of factory, Behind No.|||||||
||||COD|Standard emission|||||172.5mg/L|500mg/L|335.14t|1618.8 t||None|
|||||||||8 Building of factory|||||||
||Beijing BOE Display|||after being treated by|||||||||||
|||||||2|||||||||
||Technology Co., Ltd.|||sewage treatment|||||||||||
||||Ammonia|||||East gate of factory, Behind No.||||||None|
|||||system|||||7.01mg/L|45 mg/L|13.7t|134.4 t|||
||||nitrogen|||||8 Building of factory|||||||
|||||Standard emission|||||||||||
||Hefei Xinsheng||COD|||||Northeast gate of factory|50.33 mg/l|380mg/L|125.9t|1621.97 t||None|
|||||after being treated by|||||||||||
||Optoelectronics||Ammonia|sewage treatment||1|||||||None||
||Technology Co., Ltd.|||||||Northeast gate of factory|11.62mg/l|30mg/L|28.85 t|128.08 t|||
||||nitrogen|system|||||||||||
|||||Standard emission|||||||||||
||Erdos Yuansheng||COD|||||North side of factory|29.66mg/L|500mg/L|38.81 t|713.81 t||None|
|||||after being treated by|||||||||||
||Optoelectronics Co.,||Ammonia|sewage treatment||1|||||||None||
||Ltd.|||||||North side of factory|0.99mg/L|45mg/L|1.32 t|76.82 t|||
||||nitrogen|system|||||||||||
|||||Standard emission|||||||||||
||Chongqing BOE||COD|||||South side of factory|77.1mg/L|400mg/L|226.92 t|727.08t||None|
||Optoelectronics|||after being treated by|||||||||||
|||||||1|||||||||
||Technology Co.,||||||||||||||
||Ltd.||Ammonia|sewage treatment||||South side of factory|15.28mg/L|30mg/L|45.61 t|79.424 t||None|
||||nitrogen||||||||||||
|||||system|||||||||||

Construction of pollution prevention equipment and operation condition
BOE has been free of significant environmental problems during the reporting period. All subsidiaries have effectively controlled the operation in accordance with internal water pollution management standard, air pollution management standard, hazardous wastes management standard, energy management standard and other requirements, define the operation and maintenance principle and requirements, establish regular monitoring and supervision mechanism, and ensure the continuously stable operation of systems. 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 (GB8978-1996), Industrial Enterprise Environmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards, and all internal management benchmark are higher and more strict than national standards and local standards without any emission and discharge which exceed the standards.
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. 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. Meanwhile, the Company also set up special industrial waste water treatment system. 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 is discharged into municipal sewage treatment factory after pretreatment. 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 of waste water and exhaust gas satisfy the national and local relevant standards. 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. At the same time, Companies put forward the recycling of package material constantly, and carry forward the work of waste reduction continuously. 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.
The Company will continue to promote the environmental management, devote to forging green factory and improve environmental management level constantly.
XVI. Other Significant Events
√ Applicable□ Not applicable
1. On Jan.11, 2017, BOE passed Bill of Subscribing Shares of New Century Healthcare in Initial Public Offering in 9th meeting of 8th board of directors. BOE has subscribed 21,550,000 shares (total payment: HKD 160,206,386.05 (relevant service charge included)) of New Century Healthcare in Initial Public Offering (IPO) through wholly-owned subsidiary --- BOE Technology (Hong Kong) Co., Ltd. in Stock Exchange of Hong Kong Limited.
2. The public corporate bonds (Phase 1) of BOE Technology Group Co., Ltd. issued to qualified investors by BOE from Mar.21 to 22, 2017 reach one year on Mar.21, 2017. The interest shall be settled once a year within interest accrual period based on the regulations. On Mar.15, 2017, BOE disclosed “16BOE01” 2017 Announcement of Interest Settlement (No.: 2017-007), specifying that the
interest of 10 bonds is HKD 31.5 (tax included).
3. On Jul.15, 2016, BOE disclosed Plan on Repurchasing Part ofBOE’s Public Share, which was passed in 3th extraordinary general meeting in 2016. On Sep.20, 2016, BOE implemented the plan for the first time. The plan is expired on August 18, 2017 (expired date of repurchase period). BOE has repurchased 88,692,299 A-shares (max. price: RMB 2.92 Yuan /share, min. price: RMB 2.36 Yuan /share, total payment: HKD 226,525,285.07 (commission and other fixed charged included)), and 265,976,681 B-shares (max. price: HKD 3.45/share, min. price: HKD 2.12/share, total payment: HKD 799,996,931.17 (commission and other fixed charged included)). ,for more information,see Announcement on completion of repurchasing Part ofBOE’s Public Share (No.:2017-046). 4. On Dec.2, 2015, BOE disclosed Announcement on Investing Intelligent Manufacturing Production Line Project for Complete Machine (No.: 2015-079). BOE has invested RMB 1,190,000,000 Yuan to the project of wholly-owned subsidiaries, which is passed in 32th meeting of 7th board of directors. The project has put into production in Hefei. Under such case, BOE has invested RMB 1,000,000,000 Yuan to the Phase 2 project in Hefei based on the full research and argumentation, which is passed in 13th meeting of 8th board of directors. For more information, see Announcement on Investing Intelligent Manufacturing Production Line Project (Phase 2) for Complete Machine in Hefei (No.: 2017-034).
5. BOE Technology (HK) Limited, one of theCompany’s wholly-owned subsidiaries, filed a lawsuit before the Beijing HighPeople’s Court over a disputed sales contract against LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd., LeTV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Mr. Jia Yueting for approximately USD 41.84 million in total. The court has issued the Case Acceptance Notice and the Civil Ruling for property preservation respectively on July 6, 2017 and July 31, 2017. As for relevant receivables of this lawsuit, the Company has made relevant bad debt provision according to accounting standard.This case is now waiting for thecourt’s trial. Therefore, its effects on the Company are uncertain.
||||
|-|-|-|
|||index to disclosure website|
|Overview of significant events|Disclosure date||
|||for interim report|
|Announcement about the Strategic Cooperation with Beihang University|05/13/2017|www.cninfo.com.cn|
|Announcement about Acquisition of shares of SES-imagotag|06/17/2017|www.cninfo.com.cn|

 XVII. Significant Events of Subsidiaries
□ Applicable√ Not applicable
Section VI Share Changes andShareholders’ Profile
I. Share Changes
1. Share Changes
Unit: Share
||||||||
|-|-|-|-|-|-|-|
||Before the change||Increase/decrease (+, -)||After the change||
|Item|||||||
||Amount|Proportion|Other|Subtotal|Amount|Proportion|
|I. Restricted shares|9,922,266,108|28.23%|-9,920,476,190|-9,920,476,190|1,789,918|0.01%|
|1. Shares held by the state|0|0.00%|0|0|0|0.00%|
|2. Shares held by|||||||
||9,920,476,190|28.22%|-9,920,476,190|-9,920,476,190|0|0.00%|
|state-owned corporations|||||||
|3. Shares held by other|||||||
||1,789,918|0.01%|0|0|1,789,918|0.01%|
|domestic investors|||||||
|Among which: shares held|||||||
||0|0.00%|0|0|0|0.00%|
|by domestic corporations|||||||
|Shares held by domestic|||||||
||1,789,918|0.01%|0|0|1,789,918|0.01%|
|individuals|||||||
|4. Shares held by foreign|||||||
||0|0.00%|0|0|0|0.00%|
|investors|||||||
|Among which: Shares|||||||
|held by foreign|0|0.00%|0|0|0|0.00%|
|corporations|||||||
|Shares held by foreign|||||||
||0|0.00%|0|0|0|0.00%|
|individuals|||||||
|II. Non-restricted shares|25,230,801,635|71.77%|9,920,476,190|9,920,476,190|35,151,277,825|99.99%|
|1. RMB Yuan ordinary|||||||
||24,028,711,466|68.35%|9,920,476,190|9,920,476,190|33,949,187,656|96.58%|
|shares|||||||
|2. Domestically listed|||||||
||1,202,090,169|3.42%|0|0|1,202,090,169|3.42%|
|foreign shares|||||||
|3. Overseas listed foreign|||||||
||0|0.00%|0|0|0|0.00%|
|shares|||||||
|4. Other|0|0.00%|0|0|0|0.00%|
|III. Total shares|35,153,067,743|100.00%|0|0|35,153,067,743|100.00%|

Reasons for changes in shares
√ Applicable□ Not applicable
1. On April 10, 2017, the shareholders of the Company eased restrictions of part of non-public shares issuance in 2014, and the amount of released restricted shares is 9,920,476,190.
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
2. Changes in Restricted Shares
√ Applicable□ Not applicable
Unit: Share
||||||||
|-|-|-|-|-|-|-|
||Restricted|Restricted|Restricted|Restricted shares||Restricted|
||||||Restricted||
|Name of the shareholders|shares amount at|shares relieved|shares increased|amount at the||shares relieved|
||||||reasons||
||the period-begin|of the period|of the period|period-end||date|
|Beijing State-owned|||||||
|Capital Operation and|||||Non-public||
||4,063,333,333|4,063,333,333|0|0||04/10/2017|
|Management|||||issuance||
|Center|||||||
|Chongqing Ezcapital|||||||
||||||Non-public||
|Opto-electronics Industry|3,000,000,000|3,000,000,000|0|0||04/10/2017|
||||||issuance||
|Investment Co., Ltd.|||||||
|Hefei Jianxiang|||||Non-public||
||2,857,142,857|2,857,142,857|0|0||04/10/2017|
|Investment Co., Ltd.|||||issuance||
|Total|9,920,476,190|9,920,476,190|0|0|--|--|

 II. Issuance and Listing of Securities
□ Applicable√ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of common shareholders at the|||||||||
|||1,034,884 (including 995,012 A-shareholders and 39,872 B-shareholders)|||||||
|period-end|||||||||
|Shareholdings of common shareholders with a shareholding percentage over 5% or the top 10 common shareholders|||||||||
|||||Increase/decrease||Number of|Pledged or frozen shares||
||Nature of|Shareholding|Total common shares held||Number of restricted||||
|Name of shareholder||||during the Reporting||non-restricted|Status of|Number of|
||shareholder|percentage (%)|at the period-end||common shares held||||
|||||Period||common shares held|shares|shares|
|Beijing State-owned CapitalOperation and ManagementCenter|State-ownedCorporation|11.56%|4,063,333,333|0|0|4,063,333,333|||
||||||||N/A|0|
|Chongqing EzcapitalOpto-electronics IndustryInvestment Co., Ltd.|State-ownedCorporation|8.53%|3,000,000,000|0|0|3,000,000,000|||
||||||||N/A|0|
|Hefei Jianxiang InvestmentCo., Ltd.|State-ownedCorporation|8.13%|2,857,142,857|0|0|2,857,142,857|||
||||||||N/A|0|
|BeijingEconomic-TechnologicalInvestment & DevelopmentCorp.|State-ownedCorporation|3.53%|1,241,423,641|0|0|1,241,423,641|||
||||||||N/A|0|
|Beijing BOE Investment &Development Co., Ltd.|State-ownedCorporation|2.34%|822,092,180|0|0|822,092,180|||
||||||||N/A|0|
|Tianan Property InsuranceCo., Ltd- Baoying No.1|Other|2.09%|733,544,020|733,544,020|0|733,544,020|||
||||||||N/A|0|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|National Social Security FundPortfolio 108|Other|1.39%|490,038,723|210,038,928|0||490,038,723|||
|||||||||N/A|0|
|Hefei Rongke ProjectInvestment Co., Ltd.|State-ownedCorporation|0.92%|324,026,893|-350,999,910|0||324,026,893|||
|||||||||N/A|0|
|Beijing Electronics HoldingsCo., Ltd.|On behalf ofgovernment|0.78%|273,735,583|0|0||273,735,583|||
|||||||||N/A|0|
|Central Huijin AssetsManagement Co., Ltd|Other|0.71%|248,305,300|0|0||248,305,300|||
|||||||||N/A|0|
|Strategic investors or general corporations||||||||||
|becoming top-ten common shareholders due||Naught||||||||
|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 controlling||||||||
|||shareholder.||||||||
|||3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co.,||||||||
|||Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively||||||||
|||unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.||||||||
|Related or acting-in-concert parties among the||||||||||
|||4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the||||||||
|shareholders above||||||||||
|||shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics||||||||
|||Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting||||||||
|||right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting||||||||
|||Right.||||||||
|||5. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist associated||||||||
|||relationship or not, or they are persons acting in concert or not.||||||||
|Shareholdings of the top ten non-restricted common shareholders||||||||||
|||||||Type of shares||||
|Name of shareholder||Number of non-restricted common shares held at the period-end||||||||
|||||||Type||Number||
|Beijing State-owned Capital Operation and||4,063,333,333||||RMB ordinary shares||4,063,333,333||

|||||
|-|-|-|-|
|Management Center||||
|Chongqing Ezcapital Opto-electronicsIndustry Investment Co., Ltd.|3,000,000,000|||
|||RMB ordinary shares|3,000,000,000|
|Hefei Jianxiang Investment Co., Ltd.|2,857,142,857|RMB ordinary shares|2,857,142,857|
|Beijing Economic-Technological Investment& Development Corp.|1,241,423,641|||
|||RMB ordinary shares|1,241,423,641|
|Beijing BOE Investment & Development Co.,Ltd.|822,092,180|||
|||RMB ordinary shares|822,092,180|
|Tianan Property Insurance Co., Ltd- BaoyingNo.1|733,544,020|||
|||RMB ordinary shares|733,544,020|
|National Social Security Fund Portfolio 108|490,038,723|RMB ordinary shares|490,038,723|
|Hefei Rongke Project Investment Co., Ltd.|324,026,893|RMB ordinary shares|324,026,893|
|Beijing Electronics Holdings Co., Ltd.|273,735,583|RMB ordinary shares|273,735,583|
|Central Huijin Assets Management Co., Ltd|248,305,300|RMB ordinary shares|248,305,300|
||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.,|||
|Related or acting-in-concert parties among the|Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively|||
|top ten non-restrictedly tradable share holders|unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders.|||
|and between the top ten non-restrictedly|4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the|||
|tradable share holders and the top ten|shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics|||
|shareholders|Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting|||
||right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting|||
||Right.|||
||5. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist associated|||
||relationship or not, or they are persons acting in concert or not.|||

|||
|-|-|
|Top ten common shareholders conducting||
||Naught|
|securities margin trading (if any)||

Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable√ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable√ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
Section VII Preference Shares
□ Applicable√ Not applicable
No preference shares in the Reporting Period.
Section VIII Directors, Supervisors and Executive Officers
I Changes in Shareholdings of Directors, Supervisors and Executive Officers
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
||||Opening|Increase in the|Decrease in the|Closing|
|Name|Office title|Incumbent/former|s hareholding|Reporting|Reporting|shareholding|
||||(share)|Period (share)|Period (share)|(share)|
|Wang|||||||
||Chairman of the Board|Current|299,905|0|0|299,905|
|Dongsheng|||||||
|Xie|||||||
||Vice Chairman of the Board|Current|7,680|0|0|7,680|
|Xiaoming|||||||
|Chen|Vice Chairman of the Board, Chief||||||
|||Current|260,000|0|0|260,000|
|Yanshun|of Executive Committee(CEO)||||||
|Wang Jing|Director|Current|0|0|0|0|
|Zhang|||||||
||Director|Current|0|0|0|0|
|Jinsong|||||||
|Liu|Director, Vice Chief of Executive||||||
|||Current|250,000|0|0|250,000|
|Xiaodong|Committee, President and COO||||||
|Song Jie|Director|Current|0|0|0||
||Director, Executive Committee||||||
|Sun Yun|Member, Executive Vice President,|Current|155,981|0|0|155,981|
||CFO||||||
|Lv Tingjie|Independent Director|Current|0|0|0|0|
|Wang|||||||
||Independent Director|Current|0|0|0|0|
|Huacheng|||||||
|Hu Xiaolin|Independent Director|Current|0|0|0|0|
|Li Xuan|Independent Director|Current|0|0|0|0|
||Chief of Supervisory Board||||||
|Chen Ming||Current|0|0|0|0|
||(Convener)||||||
|Xu Tao|Supervisor|Current|0|0|0|0|
|Mu|Supervisor, Secretary of Board of||||||
|||Current|2,991|0|0|2,991|
|Chengyuan|Supervisors||||||
|Zhao Wei|Supervisor|Current|0|0|0|0|
|Shi Hong|Supervisor|Current|0|0|0|0|
|Zhuang|Supervisor|Current|0|0|0|0|

||||||||
|-|-|-|-|-|-|-|
|Haoyu|||||||
|Miao|||||||
||Employee Supervisor|Current|0|0|0|0|
|Chuanbin|||||||
|Xu Yangping|Employee Supervisor|Current|0|0|0|0|
|He Daopin|Employee Supervisor|Current|0|0|0|0|
||Executive Vice President, Secretary||||||
||General of Strategy Committee of||||||
|Dong|||||||
||the Board and Director of|Current|200,000|0|0|200,000|
|Youmei|||||||
||Technology and Products Strategy||||||
||Committee||||||
||Executive Committee Member,||||||
||Senior Vice President, Joint COO||||||
|YaoXiangjun||Current|100,000|0|0|100,000|
||and CEO of Intellectual System||||||
||Business Group||||||
||Executive Committee Member,||||||
|Yue Zhanqiu||Current|150,000|0|0|150,000|
||Senior Vice President, CIO||||||
|Feng|Executive Committee Member,||||||
|||Current|150,000|0|0|150,000|
|Liqiong|Senior Vice President, Chief Lawyer||||||
|Zhong|Executive Committee Member,||||||
|||Current|150,000|0|0|150,000|
|Huifeng|Senior Vice President, CHO||||||
||Executive Committee Member,||||||
|Xie|||||||
||Senior Vice President, Chief Risk|Current|110,000|0|0|110,000|
|Zhongdong|||||||
||Officer and Auditor General||||||
||Executive Committee Member,||||||
|Zhang|Senior Vice President, CEO of||||||
|||Current|150,000|0|0|150,000|
|Zhaohong|Display and Sensor Devices||||||
||Business Group||||||
||Executive Committee Member,||||||
|Feng Qiang|Senior Vice President, CEO of|Current|100,000|0|0|100,000|
||Health Service Business Group||||||
||Executive Committee Member,,||||||
|Yang Anle|Senior Vice President, Chief|Current|100,000|0|0|100,000|
||Investment Officer||||||
|Tong|Executive Committee Member,||||||
|||Current|0|0|0|0|
|Guanshan|Senior Vice President, CTO||||||
|Liu|Executive Committee Member, Vice||||||
|||Current|100,000|0|0|100,000|
|Hongfeng|President, Secretary of the Board||||||
||Executive Committee Member, Vice||||||
|Jing Linfeng|President, CSO and Executive|Current|100,000|0|0|100,000|
||Secretary of the Executive||||||

||||||||
|-|-|-|-|-|-|-|
||Committee||||||
|Total|--|--|2,386,557|0|0|2,386,557|

 II Changes in Directors, Supervisors and Executive Officers
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Office title|Type of change|Date|Reason|
|YaoXiangjun|Director|Left|04/07/2017|Work adjustment and position change|
|Sun Yun|Director|Elected|06/09/2017|Elected Director from senior executive|

Section IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this Report or were due but could not be redeemed in full?
Yes
I. Basic Information of the Company Bonds
|||||||||
|-|-|-|-|-|-|-|-|
||||||Bonds balance|||
||||||||Way of|
|Name|Abbr.|Code|Release date|Due date|(RMB’0,000|Interest rate||
||||||||redemption|
||||||Yuan)|||
|2016 Public offering of|||||||Paid for the|
|the corporation bonds for|||||||interests by|
|the qualified investors of|16BOE01|112358|03/21/2016|03/21/2021|1,000,000|3.15%|year and the|
|BOE Technology Group|||||||principals once|
|Co., Ltd. (Phase I)|||||||when expired.|
|Listed or transferred trading place of the||||||||
|||List on the SZSE.||||||
|Company bonds||||||||
|Appropriate arrangement of the investors||the qualified 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 Company||executed.||||||
|bonds (if applicable)||||||||

II. List of the Bond Trustee and the Rating Organization
|||||||||
|-|-|-|-|-|-|-|-|
|Bond trustee:||||||||
||||Rm. 2203,|||||
||||North Tower,|||||
||||||Zhu|||
||China||Shanghai|||||
||||||Mingqiang,|Contact||
|Name|Securities Co.,|Office address|Securities|Contact|||021-68801565|
||||||Han Yong,|number||
||Ltd.||Plaza, 528|||||
||||||Sheng Cheng|||
||||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||||||
|influences on the investors’ interests etc. if||||||
|there was alternation of the bond trustees||||||
|||Not applicable||||
|and the credit rating agencies engaged by||||||
|the Company during the Reporting Period||||||
|(if applicable)||||||

III. List of the Usage of the Raised Funds of the Company Bonds
|||
|-|-|
|List of the usage of the raised funds and|The Company executed the internal decision-making process strictly according to the|
|the execution process of the Company|applications committed by the prospectus as well as the review regulations of the|
|bonds|Board of Directors and Annual General Meeting of the Company.|
|Opening balance (RMB’0,000 Yuan)|2.66|
||The Company signed the Agreement on the 2016 Public Offering of the Corporation|
||Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE|
|Operating situation of the raised funds|Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co,|
|special account|Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing|
||Branch of China Merchants Bank Co., Ltd., which set up the raise funds account that|
||ensure the exclusive use of the special fund of the raise funds.|
|Whether the usage of the raised funds met||
|with the usage, using plan and other|Yes|
|agreements committed on the prospectus||

IV. Rating Situation of the Company Bonds Information
On June 24, 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 June 25, 2016, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn
On June 23, 2017, United Ratings issued the Tracking Rating Report of the 2017 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 June 24, 2017, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures of the Company Bonds
There was no guarantee of the corporate bonds of the Reporting Period.
The profits of the main business of the issuers ware the main resources of the debt service fund of the bonds of the Reporting Period.
The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every March 21 of each
year from Y2017 to Y2021 is the interest date of the last interest accrual year (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day); if the investors executed the put-back right, the interest date of the part of the put-back bonds is every March 21 of each year from Y2017 to Y2019 is the interest date of the last interest accrual year (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day). The principal of the current bonds should be paid at one time when expired. The payment date of the current bonds would be March 21, 2021 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day); if the investors executed the put-back right, the payment date of the part of the put-back bonds would be March 21, 2019 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day).
The repayment guarantee measures of the corporate bonds of the Reporting Period: to formulate the Meeting Regulations of the Bondholders and the repayment guarantee measures; to formulate and strictly carry out the funds management plans; to fully 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 repayment guarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
No such cases during the Reporting Period.
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention 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.
VIII. The Major Accounting Data and the Financial Indicators of the Company up the Period-end and the End of Last Year (or the Reporting Period and Same Period of Last Year)
|||||
|-|-|-|-|
|Item|Period-end|End of last year|Increase/decrease|
|Asset-liability ratio|56.79%|55.14%|1.65%|
|Current ratio|1.74|2.20|-0.46|
|Quick ratio|1.55|2.01|-0.46|
|Item|Reporting Period|Same period of last year|Increase/decrease|
|Times interest earned of EBITDA|8.43|5.34|3.09|
|Loan repayment rate|1.00|1.00|0.00%|
|Interest coverage|1.00|1.00|0.00%|

Main reason of the above accounting data and the financial indicators with the YoY change exceeded30%
√ Applicable□ Not applicable
The liquidity ratio decreased by 0.46 compared to the end of last year mainly because of the lower non-current liabilities due within 1
year as of the end of the same period of last year resulted from prepayment of bank loan in the prior year.
The quick ratio decreased by 0.46 compared to the end of last year mainly because of the lower non-current liabilities due within 1 year as of the end of the same period of last year resulted from prepayment of bank loan in the prior year.
EBITDA is 3.09 more than the same period of the last year due to the largely increasing total profit in the first half year.
IX. Overdue Unpaid Debts of the Company
□ Applicable√ Not applicable
No such cases during the Reporting Period.
X. 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.
XI. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans The operation and reputation of the Company was favorable 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 June 30, 2017, the total amount of the credit line of the major cooperative banks with the Company was of RMB 27.30 billion Yuan with the used credit line of RMB 6.30 billion Yuan and the unused amount of which was of RMB 21.00 billion Yuan. The principal and interest of bank loans have been paid back on time.No default in bank loans during the Reporting Period.
XII List of the Execution of the Agreements or the Commitments Related to the Company Bonds Raising Specification during the Reporting Period
During the Reporting Period., 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.
XIII. Significant Events Occurred during the Reporting Period
There were no occurred significant events listed in Article 45 of Corporate Bonds Issuance and Trading Management Methods during the Reporting Period.
XIV. Whether there was guarantor of the Company bonds
□ Yes√ No
Section X Financial Report
I.Auditor’s Report
Whether the semi-annual report has been audited?
□Yes√ No
The semi-annual report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB Yuan
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
June 30, 2017
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|Closing balance|Opening balance|
|Current assets:||||
|Monetary funds|VII. 1|50,760,400,727.00|58,152,817,223.00|
|Settlement reserve||0.00|0.00|
|Interbank lendings||0.00|0.00|
|Financial assets at fair value through profit/loss||0.00|0.00|
|Derivative financial assets||0.00|0.00|
|Notes receivable|VII. 2|1,263,302,564.00|1,369,836,650.00|
|Accounts receivable|VII. 3|16,863,534,739.00|16,191,791,617.00|
|Accounts paid in advance|VII. 4|1,041,632,450.00|708,511,473.00|
|Premiums receivable||0.00|0.00|
|Reinsurance premiums receivable||0.00|0.00|
|Receivable reinsurance contract reserve||0.00|0.00|
|Interest receivable|VII. 5|89,188,241.00|125,141,573.00|
|Dividends receivable|VII. 6|10,250,449.00|0.00|
|Other accounts receivable|VII. 7|955,540,522.00|903,069,416.00|
|Financial assets purchased under agreements to||||
|||0.00|0.00|
|resell||||
|Inventories|VII. 8|9,759,164,036.00|7,833,138,532.00|

|||||
|-|-|-|-|
|Assets held for sale||0.00|0.00|
|Non-current assets due within one year|VII. 9|28,941,602.00|66,321,715.00|
|Other current assets|VII. 10|9,773,604,550.00|5,691,200,226.00|
|Total current assets||90,545,559,880.00|91,041,828,425.00|
|Non-current assets:||||
|Loans and advances to customers||0.00|0.00|
|Available-for-sale financial assets|VII. 11|757,249,677.00|622,502,556.00|
|Held-to-maturity investments|VII. 12|0.00|0.00|
|Long-term accounts receivable||0.00|0.00|
|Long-term equity investments|VII. 13|1,981,030,454.00|1,356,111,395.00|
|Investment property|VII. 14|1,271,764,715.00|1,192,932,896.00|
|Fixed assets|VII. 15|78,898,829,994.00|69,947,586,967.00|
|Construction in progress|VII. 16|44,127,069,216.00|33,008,248,720.00|
|Engineering materials||0.00|0.00|
|Disposal of fixed assets||0.00|0.00|
|Productive living assets||0.00|0.00|
|Oil-gas assets||0.00|0.00|
|Intangible assets|VII. 17|3,046,125,155.00|3,136,873,387.00|
|R&D expenses||0.00|0.00|
|Goodwill|VII. 18|197,963,688.00|197,963,688.00|
|Long-term deferred expense|VII. 19|314,072,978.00|344,891,227.00|
|Deferred income tax assets|VII. 20|149,942,508.00|146,538,565.00|
|Other non-current assets|VII. 21|4,182,875,839.00|4,139,533,216.00|
|Total non-current assets||134,926,924,224.00|114,093,182,617.00|
|Total assets||225,472,484,104.00|205,135,011,042.00|
|Current liabilities:||||
|Short-term borrowings|VII. 22|6,088,832,994.00|4,916,965,507.00|
|Borrowings from the Central Bank||0.00|0.00|
|Money deposits accepted and inter-bank deposits||0.00|0.00|
|Interbank borrowings||0.00|0.00|
|Financial liabilities at fair value through profit/loss||0.00|0.00|
|Derivative financial liabilities||0.00|0.00|
|Notes payable|VII. 23|526,641,067.00|640,262,461.00|
|Accounts payable|VII. 24|15,215,611,240.00|13,835,615,665.00|

|||||
|-|-|-|-|
|Accounts received in advance|VII. 25|857,046,320.00|548,942,714.00|
|Financial assets sold for repurchase||0.00|0.00|
|Fees and commissions payable||0.00|0.00|
|Payroll payable|VII. 26|1,386,497,057.00|1,542,852,266.00|
|Taxes payable|VII. 27|698,302,308.00|656,351,894.00|
|Interest payable|VII. 28|551,546,168.00|676,358,748.00|
|Dividends payable|VII. 29|1,063,292,009.00|9,651,170.00|
|Other accounts payable|VII. 30|15,003,435,170.00|14,395,525,248.00|
|Reinsurance premiums payable||0.00|0.00|
|Insurance contract reserve||0.00|0.00|
|Payables for acting trading of securities||0.00|0.00|
|Payables for acting underwriting of securities||0.00|0.00|
|Liabilities held for sale||0.00|0.00|
|Non-current liabilities due within one year|VII. 31|9,749,188,493.00|3,684,236,935.00|
|Other current liabilities|VII. 32|936,175,310.00|532,983,474.00|
|Total current liabilities||52,076,568,136.00|41,439,746,082.00|
|Non-current liabilities:||||
|Long-term borrowings|VII. 33|53,462,402,931.00|49,885,166,211.00|
|Bonds payable|VII. 34|9,961,519,616.00|9,956,719,508.00|
|Of which: Preference shares||0.00|0.00|
|Perpetual bonds||0.00|0.00|
|Long-term accounts payable|VII. 35|2,191,493,751.00|1,261,446,565.00|
|Long-term payroll payable||0.00|0.00|
|Special payables||0.00|0.00|
|Provisions|VII. 36|16,457,010.00|16,457,010.00|
|Deferred income|VII. 37|2,432,273,493.00|2,494,122,929.00|
|Deferred income tax liabilities|VII. 20|468,876,003.00|448,625,054.00|
|Other non-current liabilities|VII. 38|7,392,781,797.00|7,616,672,523.00|
|Total non-current liabilities||75,925,804,601.00|71,679,209,800.00|
|Total liabilities||128,002,372,737.00|113,118,955,882.00|
|Owners’ equity:||||
|Share capital|VII. 39|35,153,067,743.00|35,153,067,743.00|
|Other equity instruments||0.00|0.00|
|Of which: Preference shares||0.00|0.00|

|||||
|-|-|-|-|
|Perpetual bonds||0.00|0.00|
|Capital reserve|VII. 40|39,229,235,434.00|39,031,357,529.00|
|Less: Treasury shares|VII. 41|666,312,967.00|314,350,824.00|
|Other comprehensive income|VII. 42|85,086,899.00|75,718,703.00|
|Special reserve||0.00|0.00|
|Surplus reserve|VII. 43|743,139,855.00|743,139,855.00|
|Provisions for general risks||0.00|0.00|
|Retained earnings|VII. 44|7,267,082,811.00|4,011,055,487.00|
|Equity attributable to owners of the Company||81,811,299,775.00|78,699,988,493.00|
|Minority interests||15,658,811,592.00|13,316,066,667.00|
|Total owners’ equity||97,470,111,367.00|92,016,055,160.00|
|Total liabilities and owners’ equity||225,472,484,104.00|205,135,011,042.00|

 Legal representative: Wang Dongsheng Person-in-charge of the accounting work: Sun Yun
Chief of the accounting division: Yang Xiaoping
2. Balance Sheet of the Company
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|Closing balance|Opening balance|
|Current assets:||||
|Monetary funds||4,491,765,703.00|7,649,349,412.00|
|Financial assets at fair value through profit/loss||0.00|0.00|
|Derivative financial assets||0.00|0.00|
|Notes receivable||1,525,989.00|200,197,354.00|
|Accounts receivable|XV. 1|45,956,827.00|45,853,859.00|
|Accounts paid in advance||3,578,829.00|7,462,061.00|
|Interest receivable||1,141,264.00|21,525,261.00|
|Dividends receivable||181,395,319.00|1,007,950,479.00|
|Other accounts receivable|XV. 2|1,167,306,167.00|1,629,176,234.00|
|Inventories||13,647,450.00|12,069,865.00|
|Assets held for sale||0.00|0.00|
|Non-current assets due within one year||3,489,880,000.00|0.00|
|Other current assets||31,727,901.00|25,504,074.00|
|Total current assets||9,427,925,449.00|10,599,088,599.00|

|||||
|-|-|-|-|
|Non-current assets:||||
|Available-for-sale financial assets||183,197,854.00|177,166,908.00|
|Held-to-maturity investments||0.00|0.00|
|Long-term accounts receivable||0.00|0.00|
|Long-term equity investments|XV. 3|114,050,700,295.00|99,918,451,449.00|
|Investment property||252,932,186.00|164,540,581.00|
|Fixed assets||846,868,417.00|862,860,227.00|
|Construction in progress||403,761,774.00|468,494,838.00|
|Engineering materials||0.00|0.00|
|Disposal of fixed assets||0.00|0.00|
|Productive living assets||0.00|0.00|
|Oil-gas assets||0.00|0.00|
|Intangible assets||581,452,824.00|624,007,700.00|
|R&D expenses||0.00|0.00|
|Goodwill||0.00|0.00|
|Long-term deferred expense||83,821,954.00|98,745,001.00|
|Deferred income tax assets||51,348,646.00|47,679,645.00|
|Other non-current assets||715,433,457.00|4,010,146,153.00|
|Total non-current assets||117,169,517,407.00|106,372,092,502.00|
|Total assets||126,597,442,856.00|116,971,181,101.00|
|Current liabilities:||||
|Short-term borrowings||0.00|0.00|
|Financial liabilities at fair value through profit/loss||0.00|0.00|
|Derivative financial liabilities||0.00|0.00|
|Notes payable||0.00|0.00|
|Accounts payable||27,792,790.00|34,015,337.00|
|Accounts received in advance||990,599,241.00|1,093,593,891.00|
|Payroll payable||88,725,961.00|169,917,103.00|
|Taxes payable||5,318,217.00|80,897,741.00|
|Interest payable||120,898,571.00|281,124,448.00|
|Dividends payable||1,053,029,447.00|6,451,170.00|
|Other accounts payable||8,288,526,830.00|10,791,929,737.00|
|Liabilities held for sale||0.00|0.00|
|Non-current liabilities due within one year||3,489,880,000.00|100,000,000.00|

||||
|-|-|-|
|Other current liabilities|0.00|0.00|
|Total current liabilities|14,064,771,057.00|12,557,929,427.00|
|Non-current liabilities:|||
|Long-term borrowings|22,033,000,000.00|18,922,400,000.00|
|Bonds payable|9,961,519,616.00|9,956,719,508.00|
|Of which: Preference shares|0.00|0.00|
|Perpetual bonds|0.00|0.00|
|Long-term payables|0.00|0.00|
|Long-term payroll payable|0.00|0.00|
|Special payables|0.00|0.00|
|Provisions|0.00|0.00|
|Deferred income|147,030,911.00|148,987,694.00|
|Deferred income tax liabilities|0.00|0.00|
|Other non-current liabilities|6,009,716,667.00|0.00|
|Total non-current liabilities|38,151,267,194.00|29,028,107,202.00|
|Total liabilities|52,216,038,251.00|41,586,036,629.00|
|Owners’ equity:|||
|Share capital|35,153,067,743.00|35,153,067,743.00|
|Other equity instruments|0.00|0.00|
|Of which: Preference shares|0.00|0.00|
|Perpetual bonds|0.00|0.00|
|Capital reserve|38,157,600,408.00|38,157,600,408.00|
|Less: Treasury shares|666,312,967.00|314,350,824.00|
|Other comprehensive income|158,354,407.00|152,323,461.00|
|Special reserve|0.00|0.00|
|Surplus reserve|743,139,855.00|743,139,855.00|
|Retained earnings|835,555,159.00|1,493,363,829.00|
|Total owners’ equity|74,381,404,605.00|75,385,144,472.00|
|Total liabilities and owners’ equity|126,597,442,856.00|116,971,181,101.00|

3. Consolidated Income Statement
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|January-June 2017|January-June 2016|
|1. Operating revenues||44,605,027,995.00|26,448,310,717.00|
|Including: Sales income|VII. 45|44,605,027,995.00|26,448,310,717.00|
|Interest income||0.00|0.00|
|Premium income||0.00|0.00|
|Fee and commission income||0.00|0.00|
|2. Operating costs||39,394,749,331.00|28,837,030,184.00|
|Including: Cost of sales|VII. 45|32,235,266,589.00|23,987,091,158.00|
|Interest expenses||0.00|0.00|
|Fee and commission expenses||0.00|0.00|
|Surrenders||0.00|0.00|
|Net claims paid||0.00|0.00|
|Net amount provided as insurance contract||||
|||0.00|0.00|
|reserve||||
|Expenditure on policy dividends||0.00|0.00|
|Reinsurance premium||0.00|0.00|
|Taxes and surtaxes|VII. 46|355,700,992.00|92,930,181.00|
|Selling expenses|VII. 47|1,228,560,863.00|696,216,454.00|
|Administrative expenses|VII. 48|3,052,661,575.00|2,311,090,435.00|
|Finance costs|VII. 49|1,099,113,182.00|1,234,879,010.00|
|Asset impairment loss|VII. 50|1,423,446,130.00|514,822,946.00|
|Add: Profit on fair value changes (“-” means loss)|VII. 51|0.00|4,623,937.00|
|Investment income (“-” means loss)|VII. 52|19,162,151.00|64,994,322.00|
|Including: Share of profit/loss of associates and||||
|||-13,690,554.00|-11,180,961.00|
|joint ventures||||
|Exchange gains (“-” means loss)||0.00|0.00|
|Other gains|VII. 53|275,302,864.00|0.00|
|3. Operating profit (“-” means loss)||5,504,743,679.00|-2,319,101,208.00|
|Add: Non-operating income|VII. 54|54,506,578.00|1,793,732,882.00|
|Including: Profit on disposal of non-current||||
|||2,597,163.00|4,788,368.00|
|assets||||
|Less: Non-operating expense|VII. 55|24,426,637.00|5,876,931.00|
|Including: Loss on disposal of non-current||21,855,086.00|2,257,689.00|

|||||
|-|-|-|-|
|assets||||
|4. Total profit (“-” means loss)||5,534,823,620.00|-531,245,257.00|
|Less: Corporate income tax|VII. 56|940,261,615.00|56,258,311.00|
|5. Net profit (“-” means loss)||4,594,562,005.00|-587,503,568.00|
|Net profit attributable to owners of the Company||4,302,605,600.00|-516,472,418.00|
|Minority interests’ income||291,956,405.00|-71,031,150.00|
|6. Other comprehensive income net of tax|VII. 57|-14,001,966.00|-26,340,409.00|
|Other comprehensive income net of tax||||
|||9,368,196.00|-26,340,409.00|
|attributable to owners of the Company||||
|6.1 Other comprehensive income that will not||||
|||0.00|0.00|
|be reclassified into profit/loss||||
|6.1.1 Changes in net liabilities or assets with||||
|||0.00|0.00|
|a defined benefit plan upon re-measurement||||
|6.1.2 Share of other comprehensive income||||
|of investees that cannot be reclassified into profit/loss||0.00|0.00|
|under the equity method||||
|6.2 Other comprehensive income to be||||
|||9,368,196.00|-26,340,409.00|
|subsequently reclassified into profit/loss||||
|6.2.1 Share of other comprehensive income||||
|of investees that will be reclassified into profit/loss||0.00|-4,418,377.00|
|under the equity method||||
|6.2.2 Profit/loss on fair value changes of||||
|||-2,155,092.00|-44,147,531.00|
|available-for-sale financial assets||||
|6.2.3 Profit/loss on reclassifying||||
|held-to-maturity investments into available-for-sale||0.00|0.00|
|financial assets||||
|6.2.4 Effective profit/loss on cash flow||||
|||0.00|0.00|
|hedges||||
|6.2.5 Currency translation differences||11,523,288.00|22,225,499.00|
|6.2.6 Other||0.00|0.00|
|Other comprehensive income net of tax||||
|||-23,370,162.00|0.00|
|attributable to minority interests||||
|7. Total comprehensive income||4,580,560,039.00|-613,843,977.00|
|Attributable to owners of the Company||4,311,973,796.00|-542,812,827.00|
|Attributable to minority interests||268,586,243.00|-71,031,150.00|
|8. Earnings per share||||
|8.1 Basic earnings per share||0.123|-0.015|
|8.2 Diluted earnings per share||0.123|-0.015|

Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB 0.00 Yuan, with the corresponding amount for the last period being RMB 0.00 Yuan.
Legal representative: Wang Dongsheng Person-in-charge of the accounting work: Sun Yun
Chief of the accounting division: Yang Xiaoping
4. Income Statement of the Company
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|January-June 2017|January-June 2016|
|1. Operating revenues|XV. 4|705,463,015.00|693,427,051.00|
|Less: Operating costs|XV. 4|5,670,598.00|58,815,389.00|
|Taxes and surtaxes||18,569,385.00|2,344,938.00|
|Selling expenses||1,021,144.00|4,386,080.00|
|Administrative expenses||684,340,188.00|569,405,477.00|
|Finance costs||205,355,880.00|60,850,293.00|
|Asset impairment loss||0.00|0.00|
|Add: profit on fair value changes (“-” means loss)||0.00|0.00|
|Investment income (“-” means loss)|XV. 5|594,517,970.00|18,377,124.00|
|Including: Share of profit/loss of associates and||||
|||-13,690,554.00|-11,180,961.00|
|joint ventures||||
|Other gains||9,628,783.00|0.00|
|2. Operating profit (“-” means loss)||394,652,573.00|16,001,998.00|
|Add: Non-operating income||2,306,707.00|27,771,591.00|
|Including: Profit on disposal of non-current assets||0.00|83,799.00|
|Less: Non-operating expense||862,539.00|374,260.00|
|Including: Loss on disposal of non-current assets||182,599.00|8,690.00|
|3. Total profit (“-” means loss)||396,096,741.00|43,399,329.00|
|Less: Corporate income tax||7,327,135.00|3,399,274.00|
|4. Net profit (“-” means loss)||388,769,606.00|40,000,055.00|
|5. Other comprehensive income net of tax||6,030,946.00|-22,046,095.00|
|5.1 Other comprehensive income that will not be||||
|||0.00|0.00|
|reclassified into profit and loss||||
|5.1.1 Changes in net liabilities or assets with a||||
|||0.00|0.00|
|defined benefit plan upon re-measurement||||
|5.1.2 Share of other comprehensive income of||||
|investees that cannot be reclassified into profit/loss||0.00|0.00|
|under the equity method||||
|5.2 Other comprehensive income to be subsequently||||
|||6,030,946.00|-22,046,095.00|
|reclassified into profit/loss||||

||||
|-|-|-|
|5.2.1 Share of other comprehensive income of|||
|investees that will be reclassified into profit/loss under|0.00|0.00|
|the equity method|||
|5.2.2 Profit/loss on fair value changes of|||
||6,030,946.00|-22,046,095.00|
|available-for-sale financial assets|||
|5.2.3 Profit/loss on reclassifying held-to-maturity|||
||0.00|0.00|
|investments into available-for-sale financial assets|||
|5.2.4 Effective profit/loss on cash flow hedges|0.00|0.00|
|5.2.5 Currency translation differences|0.00|0.00|
|5.2.6 Other|0.00|0.00|
|6. Total comprehensive income|394,800,552.00|17,953,960.00|
|7. Earnings per share|||
|7.1 Basic earnings per share|0.011|0.001|
|7.2 Diluted earnings per share|0.011|0.001|

 5. Consolidated Cash Flow Statement
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|January-June 2017|January-June 2016|
|1. Cash flows associated with operating activities:||||
|Cash received from sale of commodities and||||
|||43,665,151,353.00|24,660,608,318.00|
|rendering of service||||
|Net increase in money deposits from customers and||||
|||0.00|0.00|
|interbank placements||||
|Net increase in loans from the Central Bank||0.00|0.00|
|Net increase in funds borrowed from other financial||||
|||0.00|0.00|
|institutions||||
|Cash received from premium of original insurance||||
|||0.00|0.00|
|contracts||||
|Net cash received from reinsurance business||0.00|0.00|
|Net increase in deposits of policy holders and||||
|||0.00|0.00|
|investment fund||||
|Net increase in disposal of financial assets at fair||||
|||0.00|0.00|
|value through profit/loss||||
|Interest, fees and commissions received||0.00|0.00|
|Net increase in interbank borrowings||0.00|0.00|
|Net increase in funds in repurchase business||0.00|0.00|
|Tax refunds received||3,662,030,436.00|1,773,162,511.00|
|Cash generated by other operating activities|VII. 58（1）|768,953,070.00|1,554,539,195.00|

|||||
|-|-|-|-|
|Subtotal of cash generated by operating activities||48,096,134,859.00|27,988,310,024.00|
|Cash paid for goods and services||28,313,641,143.00|18,580,530,133.00|
|Net increase in loans and advances to customers||0.00|0.00|
|Net increase in funds deposited in the Central Bank||||
|||0.00|0.00|
|and interbank placements||||
|Cash paid for claims of original insurance contracts||0.00|0.00|
|Interest, fees and commissions paid||0.00|0.00|
|Cash paid as policy dividends||0.00|0.00|
|Cash paid to and for employees||4,183,675,298.00|3,000,913,336.00|
|Taxes paid||2,139,357,844.00|793,428,583.00|
|Cash used in other operating activities|VII. 58（2）|2,820,869,308.00|2,879,351,017.00|
|Subtotal of cash used in operating activities||37,457,543,593.00|25,254,223,069.00|
|Net cash generated by operating activities||10,638,591,266.00|2,734,086,955.00|
|2. Cash flows associated with investing activities:||||
|Cash received from retraction of investments||8,594,039,173.00|15,988,345,399.00|
|Cash received as investment income||34,325,731.00|83,197,527.00|
|Net cash received from disposal of fixed assets,||||
|||58,574,338.00|81,891,572.00|
|intangible assets and other long-term assets||||
|Net cash received from disposal of subsidiaries or||||
|||0.00|0.00|
|other business units||||
|Cash generated by other investing activities|VII. 58（3）|1,651,837,600.00|882,751,810.00|
|Subtotal of cash generated by investing activities||10,338,776,842.00|17,036,186,308.00|
|Cash paid to acquire fixed assets, intangible assets||||
|||24,969,365,239.00|7,098,361,611.00|
|and other long-term assets||||
|Cash paid for investment||16,940,890,821.00|21,154,818,990.00|
|Net increase in pledged loans||0.00|0.00|
|Net cash paid to acquire subsidiaries and other||||
|||0.00|0.00|
|business units||||
|Cash used in other investing activities|VII. 58（4）|417,993,963.00|1,416,268,111.00|
|Subtotal of cash used in investing activities||42,328,250,023.00|29,669,448,712.00|
|Net cash generated by investing activities||-31,989,473,181.00|-12,633,262,404.00|
|3. Cash flows associated with financing activities:||||
|Cash received from capital contributions||6,105,150,000.00|3,008,499,427.00|
|Including: Cash received from minority shareholder||||
|||0.00|0.00|
|investments by subsidiaries||||
|Cash received as borrowings||17,478,499,523.00|9,321,691,631.00|
|Cash received from issuance of bonds||0.00|10,000,000,000.00|

|||||
|-|-|-|-|
|Cash generated by other financing activities|VII. 58（5）|98,452,479.00|379.00|
|Subtotal of cash generated by financing activities||23,682,102,002.00|22,330,191,437.00|
|Repayment of borrowings||5,752,923,590.00|7,177,513,007.00|
|Cash paid for interest expenses and distribution of||||
|||2,030,450,605.00|1,247,945,239.00|
|dividends or profit||||
|Including: dividends or profit paid by subsidiaries||||
|||0.00|0.00|
|to minority interests||||
|Cash used in other financing activities|VII. 58（6）|649,313,318.00|34,652,203.00|
|Sub-total of cash used in financing activities||8,432,687,513.00|8,460,110,449.00|
|Net cash generated by financing activities||15,249,414,489.00|13,870,080,988.00|
|4. Effect of foreign exchange rate changes on cash and||||
|||-455,025,939.00|-117,602,143.00|
|cash equivalents||||
|5. Net increase in cash and cash equivalents||-6,556,493,365.00|3,853,303,396.00|
|Add: Opening balance of cash and cash||||
|||49,354,810,388.00|36,182,738,217.00|
|equivalents||||
|6. Closing balance of cash and cash equivalents|VII. 59（3）|42,798,317,023.00|40,036,041,613.00|

 6. Cash Flow Statement of the Company
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Notes|January-June 2017|January-June 2016|
|1. Cash flows associated with operating activities:||||
|Cash received from sale of commodities and||||
|||710,405,975.00|319,644,675.00|
|rendering of service||||
|Tax refunds received||0.00|1,327,240.00|
|Cash generated by other operating activities||304,429,662.00|1,475,704,664.00|
|Subtotal of cash generated by operating activities||1,014,835,637.00|1,796,676,579.00|
|Cash paid for goods and services||198,978,019.00|158,972,319.00|
|Cash paid to and for employees||380,998,757.00|248,492,467.00|
|Taxes paid||175,285,708.00|62,726,325.00|
|Cash used in other operating activities||2,690,735,937.00|1,872,139,111.00|
|Subtotal of cash used in operating activities||3,445,998,421.00|2,342,330,222.00|
|Net cash generated by operating activities||-2,431,162,784.00|-545,653,643.00|
|2. Cash flows associated with investing activities:||||
|Cash received from retraction of investments||0.00|4,022,161,515.00|
|Cash received as investment income||1,434,763,684.00|29,558,084.00|
|Net cash received from disposal of fixed assets,||||
|||2,096.00|185,464.00|
|intangible assets and other long-term assets||||

||||
|-|-|-|
|Net cash received from disposal of subsidiaries or|||
||0.00|0.00|
|other business units|||
|Cash generated by other investing activities|1,122,010,303.00|10,654,523.00|
|Subtotal of cash generated by investing activities|2,556,776,083.00|4,062,559,586.00|
|Cash paid to acquire fixed assets, intangible assets|||
||98,591,704.00|490,766,406.00|
|and other long-term assets|||
|Cash paid for investment|14,153,939,400.00|16,374,019,482.00|
|Net cash paid to acquire subsidiaries and other|||
||0.00|0.00|
|business units|||
|Cash used in other investing activities|700,914,519.00|1,101,301,713.00|
|Subtotal of cash used in investing activities|14,953,445,623.00|17,966,087,601.00|
|Net cash generated by investing activities|-12,396,669,540.00|-13,903,528,015.00|
|3. Cash flows associated with financing activities:|||
|Cash received from capital contributions|0.00|0.00|
|Cash received as borrowings|12,533,000,000.00|6,940,000,000.00|
|Cash received from issuance of bonds|0.00|10,000,000,000.00|
|Cash generated by other financing activities|19.00|379.00|
|Subtotal of cash generated by financing activities|12,533,000,019.00|16,940,000,379.00|
|Repayment of borrowings|0.00|423,155,128.00|
|Cash paid for interest expenses and distribution of|||
||459,582,730.00|402,453,000.00|
|dividends or profit|||
|Cash used in other financing activities|351,381,074.00|1,324.00|
|Sub-total of cash used in financing activities|810,963,804.00|825,609,452.00|
|Net cash generated by financing activities|11,722,036,215.00|16,114,390,927.00|
|4. Effect of foreign exchange rate changes on cash and|||
||-4,955,113.00|10,403,270.00|
|cash equivalents|||
|5. Net increase in cash and cash equivalents|-3,110,751,222.00|1,675,612,539.00|
|Add: Opening balance of cash and cash equivalents|7,548,700,412.00|3,322,215,443.00|
|6. Closing balance of cash and cash equivalents|4,437,949,190.00|4,997,827,982.00|

7. Consolidated Statement of Changes inOwners’ Equity
January-June 2017
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||January-June 2017|||||||||||||
||Equity attributable to owners of the Company|||||||||||||
|Item||||||||||||||
|||Other equity instruments|||||Other|||General||||
|||||||Less: Treasury||Special||||Minority interests|Total owners’ equity|
||Share capital|Preference|Perpetual||Capital reserve||comprehensive||Surplus reserve|risk|Retained earnings|||
|||||Other||shares||reserve||||||
|||shares|bonds||||income|||reserve||||
|1. Balance at||||||||||||||
|the end of the|35,153,067,743.00|0.00|0.00|0.00|39,031,357,529.00|314,350,824.00|75,718,703.00|0.00|743,139,855.00|0.00|4,011,055,487.00|13,316,066,667.00|92,016,055,160.00|
|prior year||||||||||||||
|Add:||||||||||||||
|Changes in||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|accounting||||||||||||||
|policies||||||||||||||
|Correction of||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|errors in prior||||||||||||||
|periods||||||||||||||
|Business||||||||||||||
|mergers under||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|the same||||||||||||||
|control||||||||||||||
|Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|2. Balance at||||||||||||||
|the beginning|35,153,067,743.00|0.00|0.00|0.00|39,031,357,529.00|314,350,824.00|75,718,703.00|0.00|743,139,855.00|0.00|4,011,055,487.00|13,316,066,667.00|92,016,055,160.00|
|of the year||||||||||||||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3. Increase/||||||||||||||
|decrease in the||||||||||||||
|period (“-”|0.00|0.00|0.00|0.00|197,877,905.00|351,962,143.00|9,368,196.00|0.00|0.00|0.00|3,256,027,324.00|2,342,744,925.00|5,454,056,207.00|
|means||||||||||||||
|decrease)||||||||||||||
|3.1 Total||||||||||||||
|comprehensive|0.00|0.00|0.00|0.00|0.00|0.00|9,368,196.00|0.00|0.00|0.00|4,302,605,600.00|268,586,242.00|4,580,560,038.00|
|income||||||||||||||
|3.2 Capital||||||||||||||
|increased and||||||||||||||
||0.00|0.00|0.00|0.00|197,877,905.00|351,962,143.00|0.00|0.00|0.00|0.00|0.00|2,081,586,935.00|1,927,502,697.00|
|reduced by||||||||||||||
|owners||||||||||||||
|3.2.1||||||||||||||
|Ordinary||||||||||||||
|shares|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|6,105,150,240.00|6,105,150,240.00|
|increased by||||||||||||||
|shareholders||||||||||||||
|3.2.2||||||||||||||
|Capital||||||||||||||
|increased by||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|holders of||||||||||||||
|other equity||||||||||||||
|instruments||||||||||||||
|3.2.3||||||||||||||
|Amounts of||||||||||||||
|share-based||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|payments||||||||||||||
|charged to||||||||||||||
|owners’ equity||||||||||||||
|3.2.4|0.00|0.00|0.00|0.00|197,877,905.00|351,962,143.00|0.00|0.00|0.00|0.00|0.00|-4,023,563,305.00|-4,177,647,543.00|

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Other||||||||||||||
|3.3 Profit||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-1,046,578,276.00|-7,428,252.00|-1,054,006,528.00|
|distribution||||||||||||||
|3.3.1||||||||||||||
|Appropriation||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|to surplus||||||||||||||
|reserve||||||||||||||
|3.3.2||||||||||||||
|Appropriation||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|to general risk||||||||||||||
|provisions||||||||||||||
|3.3.3||||||||||||||
|Appropriation||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-1,046,578,276.00|-7,428,252.00|-1,054,006,528.00|
|to owners (or||||||||||||||
|shareholders)||||||||||||||
|3.3.4||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Other||||||||||||||
|3.4 Internal||||||||||||||
|carry-forward||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|of owners’||||||||||||||
|equity||||||||||||||
|3.4.1||||||||||||||
|New increase||||||||||||||
|of capital (or||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|share capital)||||||||||||||
|from capital||||||||||||||
|reserve||||||||||||||
|3.4.2||||||||||||||
|New increase|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|of capital (or||||||||||||||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|share capital)||||||||||||||
|from surplus||||||||||||||
|reserve||||||||||||||
|3.4.3||||||||||||||
|Surplus||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve for||||||||||||||
|making up loss||||||||||||||
|3.4.4||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Other||||||||||||||
|3.5 Special||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||||
|3.5.1||||||||||||||
|Withdrawn for|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|the period||||||||||||||
|3.5.2||||||||||||||
|Used in the|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|period||||||||||||||
|3.6 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|4. Closing|||||||||||||97,470,111,367.00|
||35,153,067,743.00|0.00|0.00|0.00|39,229,235,434.00|666,312,967.00|85,086,899.00|0.00|743,139,855.00|0.00|7,267,082,811.00|15,658,811,592.00||
|balance||||||||||||||

January-June 2016
Unit: RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||January-June 2016|||||||||||||
||Equity attributable to owners of the Company||||||||||||Total owners’equity|
|Item||||||||||||||
|||Other equity instruments|||||Other|||General||||
|||||||Less: Treasury||Special|||Retained|Minority interests||
||Share capital|Preference|Perpetual||Capital reserve||comprehensive||Surplus reserve|risk||||
|||||Other||shares||reserve|||earnings|||
|||shares|bonds||||income|||reserve||||
|1. Balance at the end of|35,153,067,743.00|0.00|0.00|0.00|39,018,900,467.00|0.00|90,153,009.00|0.00|592,242,059.00|0.00|2,630,912,286.00|865,554,255.0|0 78,350,829,819.00|

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|the prior year||||||||||||||
|Add: Changes in||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|accounting policies||||||||||||||
|Correction of errors||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|in prior periods||||||||||||||
|Business mergers||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|under the same control||||||||||||||
|Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|2. Balance at the||||||||||||||
||35,153,067,743.00|0.00|0.00|0.00|39,018,900,467.00|0.00|90,153,009.00|0.00|592,242,059.00|0.00|2,630,912,286.00|865,554,255.00|78,350,829,819.00|
|beginning of the year||||||||||||||
|3. Increase/ decrease in the||||||||||||||
|period (“-” means|0.00|0.00|0.00|0.00|12,457,062.00|314,350,824.00|-14,434,306.00|0.00|150,897,796.00|0.00|1,380,143,201.00|12,450,512,412.00|13,665,225,341.00|
|decrease)||||||||||||||
|3.1 Total||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|-14,434,306.00|0.00|0.00|0.00|1,882,571,674.00|209,092,587.00|2,077,229,955.00|
|comprehensive income||||||||||||||
|3.2 Capital increased||||||||||||||
||0.00|0.00|0.00|0.00|11,579,348.00|314,350,824.00|0.00|0.00|0.00|0.00|0.00|12,250,152,355.00|11,947,380,879.00|
|and reduced by owners||||||||||||||
|3.2.1 Ordinary shares||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|increased by shareholders||||||||||||||
|3.2.2 Capital||||||||||||||
|increased by holders of|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|other equity instruments||||||||||||||
|3.2.3 Amounts of||||||||||||||
|share-based payments|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|charged to owners’ equity||||||||||||||
|3.2.4 Other|0.00|0.00|0.00|0.00|11,579,348.00|314,350,824.00|0.00|0.00|0.00|0.00|0.00|12,250,152,355.00|11,947,380,879.00|
|3.3 Profit distribution|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|150,897,796.00|0.00|-502,428,473.00|-8,732,530.00|-360,263,207.00|
|3.3.1 Appropriation||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|150,897,796.00|0.00|-150,897,796.00|0.00|0.00|
|to surplus reserve||||||||||||||

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.3.2 Appropriation||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|to general risk provisions||||||||||||||
|3.3.3 Appropriation||||||||||||||
|to owners (or|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-351,530,677.00|-8,732,530.00|-360,263,207.00|
|shareholders)||||||||||||||
|3.3.4 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.4 Internal||||||||||||||
|carry-forward of owners’|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|equity||||||||||||||
|3.4.1 New increase of||||||||||||||
|capital (or share capital)|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|from capital reserve||||||||||||||
|3.4.2 New increase of||||||||||||||
|capital (or share capital)|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|from surplus reserve||||||||||||||
|3.4.3 Surplus reserve||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|for making up loss||||||||||||||
|3.4.4 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5 Special reserve|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5.1 Withdrawn for||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|the period||||||||||||||
|3.5.2 Used in the||||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|period||||||||||||||
|3.6 Other|0.00|0.00|0.00|0.00|877,714.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|877,714.00|
|4. Closing balance|35,153,067,743.00|0.00|0.00|0.00|39,031,357,529.00|314,350,824.00|75,718,703.00|0.00|743,139,855.00|0.00|4,011,055,487.00|13,316,066,667.00|92,016,055,160.00|

8. Statement of Changes inOwners’ Equity of the Company
January-June 2017
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||January-June 2017|||||||||||
|||Other equity instruments|||||Other|||||
|Item||||||||||||
|||||||Less: Treasury||Special||||
||Share capital|Preference|Perpetual||Capital reserve||comprehensive||Surplus reserve|Retained earnings|Total owners’ equity|
|||||Other||shares||reserve||||
|||shares|bonds||||income|||||
|1. Balance at the end of the prior||||||||||||
||35,153,067,743.00|0.00|0.00|0.00|38,157,600,408.00|314,350,824.00|152,323,461.00|0.00|743,139,855.00|1,493,363,829.00|75,385,144,472.00|
|year||||||||||||
|Add: Changes in accounting||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|policies||||||||||||
|Correction of errors in prior||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|periods||||||||||||
|Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|2. Balance at the beginning of the||||||||||||
||35,153,067,743.00|0.00|0.00|0.00|38,157,600,408.00|314,350,824.00|152,323,461.00|0.00|743,139,855.00|1,493,363,829.00|75,385,144,472.00|
|year||||||||||||
|3. Increase/ decrease in the period||||||||||||
||0.00|0.00|0.00|0.00|0.00|351,962,143.00|6,030,946.00|0.00|0.00|-657,808,670.00|-1,003,739,867.00|
|(“-” means decrease)||||||||||||
|3.1 Total comprehensive income|0.00|0.00|0.00|0.00|0.00|0.00|6,030,946.00|0.00|0.00|388,769,606.00|394,800,552.00|
|3.2 Capital increased and||||||||||||
||0.00|0.00|0.00|0.00|0.00|351,962,143.00|0.00|0.00|0.00|0.00|-351,962,143.00|
|reduced by owners||||||||||||
|3.2.1 Ordinary shares||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|increased by shareholders||||||||||||
|3.2.2 Capital increased by||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|holders of other equity instruments||||||||||||
|3.2.3 Amounts of share-based||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|payments charged to owners’ equity||||||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|3.2.4 Other|0.00|0.00|0.00|0.00|0.00|351,962,143.00|0.00|0.00|0.00|0.00|-351,962,143.00|
|3.3 Profit distribution|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-1,046,578,276.00|-1,046,578,276.00|
|3.3.1 Appropriation to surplus||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||
|3.3.2 Appropriation to owners||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-1,046,578,276.00|-1,046,578,276.00|
|(or shareholders)||||||||||||
|3.3.3 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.4 Internal carry-forward of||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|owners’ equity||||||||||||
|3.4.1 New increase of capital||||||||||||
|(or share capital) from capital|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||
|3.4.2 New increase of capital||||||||||||
|(or share capital) from surplus|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||
|3.4.3 Surplus reserve for||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|making up loss||||||||||||
|3.4.4 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5 Special reserve|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5.1 Withdrawn for the period|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5.2 Used in the period|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.6 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|4. Closing balance|35,153,067,743.00|0.00|0.00|0.00|38,157,600,408.00|666,312,967.00|158,354,407.00|0.00|743,139,855.00|835,555,159.00|74,381,404,605.00|

January-June 2016
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||January-June 2016|||||||||||
|||Other equity instruments|||||Other|||||
|Item||||||||||||
|||||||Less: Treasury||Special||||
||Share capital|Preference|Perpetual||Capital reserve||comprehensive||Surplus reserve|Retained earnings|Total owners’ equity|
|||||Other||shares||reserve||||
|||shares|bonds||||income|||||
|1. Balance at the end of the prior||||||||||||
||35,153,067,743.00|0.00|0.00|0.00|38,152,869,635.00|0.00|109,786,796.00|0.00|592,242,059.00|486,814,338.00|74,494,780,571.00|
|year||||||||||||
|Add: Changes in accounting||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|policies||||||||||||
|Correction of errors in prior||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|periods||||||||||||
|Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|2. Balance at the beginning of the||||||||||||
||35,153,067,743.00|0.00|0.00|0.00|38,152,869,635.00|0.00|109,786,796.00|0.00|592,242,059.00|486,814,338.00|74,494,780,571.00|
|year||||||||||||
|3. Increase/ decrease in the period||||||||||||
||0.00|0.00|0.00|0.00|4,730,773.00|314,350,824.00|42,536,665.00|0.00|150,897,796.00|1,006,549,491.00|890,363,901.00|
|(“-” means decrease)||||||||||||
|3.1 Total comprehensive income|0.00|0.00|0.00|0.00|0.00|0.00|42,536,665.00|0.00|0.00|1,508,977,964.00|1,551,514,629.00|
|3.2 Capital increased and reduced||||||||||||
||0.00|0.00|0.00|0.00|0.00|314,350,824.00|0.00|0.00|0.00|0.00|-314,350,824.00|
|by owners||||||||||||
|3.2.1 Ordinary shares||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|increased by shareholders||||||||||||
|3.2.2 Capital increased by||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|holders of other equity instruments||||||||||||
|3.2.3 Amounts of share-based||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|payments charged to owners’ equity||||||||||||
|3.2.4 Other|0.00|0.00|0.00|0.00|0.00|314,350,824.00|0.00|0.00|0.00|0.00|-314,350,824.00|
|3.3 Profit distribution|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|150,897,796.00|-502,428,473.00|-351,530,677.00|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|3.3.1 Appropriation to surplus||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|150,897,796.00|-150,897,796.00|0.00|
|reserve||||||||||||
|3.3.2 Appropriation to owners||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|-351,530,677.00|-351,530,677.00|
|(or shareholders)||||||||||||
|3.3.3 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.4 Internal carry-forward of||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|owners’ equity||||||||||||
|3.4.1 New increase of capital||||||||||||
|(or share capital) from capital|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||
|3.4.2 New increase of capital||||||||||||
|(or share capital) from surplus|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|reserve||||||||||||
|3.4.3 Surplus reserve for||||||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|making up loss||||||||||||
|3.4.4 Other|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5 Special reserve|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5.1 Withdrawn for the period|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.5.2 Used in the period|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|3.6 Other|0.00|0.00|0.00|0.00|4,730,773.00|0.00|0.00|0.00|0.00|0.00|4,730,773.00|
|4. Closing balance|35,153,067,743.00|0.00|0.00|0.00|38,157,600,408.00|314,350,824.00|152,323,461.00|0.00|743,139,855.00|1,493,363,829.00|75,385,144,472.00|

III. Company profile
BOE Technology Group Company Limited (the “Company”) is a company limited by shares established on April 9, 1993 at Beijing, with its head office located in Beijing. The parent of the Company is Beijing Electronics Holdings Co., Ltd. (“Electronics Holdings”).
The Company and the affiliated subsidiaries (hereinafter referred to as “the Group” for short) divided into three major business group: display and sensor device business, intelligent system products and heath service.
The details of the relevant information of the Company and its subsidiaries were on Notes XII. 2. During the Reporting Period, as for the situation of the newly increased and decreased subsidiaries, please refer to Notes VIII. 2.
IV. Basis for preparation of financial statements
1. Basis for the preparation
The financial statements have been prepared on the basis of going concern.
2. Continuing operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant accounting policies and estimates
Reminder of the specific accounting policies and estimates: Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprises issued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely the consolidated financial position and financial position as of June 30, 2017, the consolidated results of operations and results of operations and the consolidated cash flows and cash flows in the first half year of 2017 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information Disclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the China Securities Regulatory Commission in 2014.
2. Accounting period
The accounting year of the Group is from 1 January to 31 December.
3. Operating cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
4. Functional currency
TheCompany’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing the functional currency for the Company and its subsidiaries is thatit’s the pricing and settlement currency for the main business. The Company translates the foreign currency financial statement of subsidiaries when compiling the financial statement.
The currency where the overseas subsidiaries and their main economic circumstances of the operation involved is the functional currency. Renminbi is the bookkeeping base currency when preparing the financial statements for the Reporting Period.
5. Accounting treatments for a business combination involving entities under and those not under common control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If the balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss. The combination date is the date on which one combining enterprise effectively obtains control of the other combining enterprises.
(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. When the Group acts as the combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date of assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity securities issued by the acquirer. Any excess of the cost of a business combination over theacquirer’s interest in the fair value of theacquiree’s identifiable net assets is recognized as goodwill, while any excess of theacquirer’s interest in the fair value of theacquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability securities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss. The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the acquisition date, recognized theacquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchasees held before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchase date with the difference between the fair value and its book value be recorded in the current investment income. The other comprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the other owners under the measurement of the equity method that involved with the afterwards equity of the purchasees held before the purchase date should be transferred in the current investment income.
6. Preparation methods for consolidated financial statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and its
subsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right on the investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed by the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item ofshareholders’ equity in consolidated income statement and the net profits in the consolidated income statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy atowners’ equity at period-begin, its balance still offset minorityshareholders’ equity.
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 unrealized profit or loss arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities under common control, the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the consolidated balance sheet of thesubsidiary’s assets, liabilities and results of operations as if the combination had occurred at the date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financial statements are restated.
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under common control, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into the consolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date. (3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment income during the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair value at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing control right.
Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multiple transactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;
- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one othertransactions；
- A deal alone is not economical, it is economical with other trading together.
If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposed according to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing the control right.
If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control, the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial statements, which together transferred into the current profits and losses in the loss of control , when the Group losing control on its subsidiary.
(4) Changes of the equities of the minority shareholders
Where the Company acquires a minority interest from asubsidiary’s minority shareholders or disposes of a portion of an interest in a subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and the amount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If the credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are both restricted by the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant should not individually control the arrangement, while any of the participant that owns the jointly control could stop other participants or the participants group from individually control the arrangement.
Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where the participant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement where the participant party is only entitled to the net assets of the arrangement.
The participant party should confirm the following items related to the interests portion among the jointly operation and execute the accounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to theGroup’s stake in the joint operation; recognizes the income from sale of theGroup’s share in the output of the joint operation; recognizes the income from sale of the jointoperation’s outputs according to theGroup’s stake in it; and recognizes the expense solely incurred to the Group and the expense incurred to the joint operation according to theGroup’s stake in it.
8. Recognition standard for cash and cash equivalents
In theGroup’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign currency businesses and translation of foreign currency financial statements
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 at 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 recognized in profit or loss, except those arising from the principals and interests on foreign currency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rate at the date the fair value is determined; the exchange differences, ifit’s the difference arising from the non-monetary item of available-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; other differences shall be recognized in current profit or loss.
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. The equity items, excluding “Retained earning”, are translated to Renminbi at the spot exchange rates at the transaction dates. The income and expenses of foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the
transaction dates. The resulting exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation, the cumulative amount of the exchange differences recognized in equity which relates to that foreign operation is transferred to profit or loss in the period in which the disposal occurs.
10. Financial instruments
Financial instruments comprise monetary funds, bonds investment, equity investment other than long-term equity investment, receivables, payables, borrowings and share capital, etc.
(1) Recognition and measurement of the financial assets and financial liabilities
A financial asset or financial liability is recognized 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 liabilities are measured initially at fair value. For financial assets and liabilities at fair value through profit or loss, any directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities, any attributed 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 recognized 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 subsequently stated at amortized 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 stated at amortized cost using the effective interest method.– Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as available for sale and other financial assets which do not fall into any of the above categories.
As for the available-for-sale financial assets whose fair value cannot be reliably measured is measured at cost subsequent to initial recognition; except that, subsequent to initial recognition, other available-for-sale financial assets are measured at fair value and changes therein, except for impairment losses and foreign exchange gains and losses from monetary financial assets, which are recognized directly in profit or loss, are considered as other comprehensive income to be recognized directly in capital reserves. When an investment is derecognized, the cumulative gain or loss in equity is removed from equity and recognized in profit or loss. Dividend income from these equity instruments is recognized in profit or loss when the investee declares the dividends. Interest on available-for-sale financial assets calculated using the effective interest method is recognized in profit or loss.
– 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 the liabilities arising from financial guarantee contracts. Financial guarantees are contracts that require the issuer (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 recognized less accumulated amortization and the amount of a provision determined in accordance with the principles of contingent liabilities.
Except for the liabilities arising from financial guarantee contracts described above, subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
The financial assets and financial liabilities are respectively presented in the balance sheet without mutual offset. However, for those simultaneously meet with the following conditions, should be presented in the balance sheet by the net amount after mutual offset: -The Group owns the legal right of neutralizing the recognized amount and the right is executable at present:
-The Group plans to settle by the net amount or to realize the financial assets and to clear off the financial liabilities at the same time. (3) Derecognition of financial assets and financial liabilities
A financial asset is derecognized 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.
Where a transfer of a financial asset in its entirety meets the criteria of derecognition, the difference between the two amounts below is recognized in profit or loss:
– 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 recognized directly in equity. The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. (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.
Objective evidence of impairment includes but not is limited to the followings:
(a) A serious financial difficulty occurs to the issuer or debtor;
(b) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or the principal, etc.;
(c) The debtor will probably become bankrupt or carry out other financial reorganizations;
(d) The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of the issuer; (e) Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the issuer of instruments operates its business, which makes the investor of an equity instrument unable to take back its investment;
(f) Where the fair value of the equity instrument investment drops significantly or not contemporarily (which the fair value declined of50%) or not contemporarily (which the fair value constantly declined over than 9 months) etc.
For the methods of the impairment of the relevant accounts receivable, please refer to Notes V. 11. The methods of the impairment of other financial assets are as follows:
– Held-to-maturity investments
Held-to-maturity investments are assessed for impairment 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 (exclusive of future credit losses that have not been incurred) discounted at the original effective interest rate. All impairment losses are recognized in profit or loss.
If, after an impairment loss has been recognized on held-to-maturity investments, 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 recognized, the previously recognized impairment loss is reversed through profit or loss. The reversed carrying amount shall not be any more than the post-amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for the impairment.
– Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual and combination basis. When an available-for-sale financial asset is impaired, the cumulative loss arising from a decline in fair value that has been recognized directly in equity is removed from equity and recognized in profit or loss even though the financial asset has not been derecognized.
If, after an impairment loss has been recognized 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 recognized, the impairment loss is reversed through profit or loss. An impairment loss recognized for an investment in an equity instrument classified as available-for-sale is not reversed through profit or loss. However, for the investment on the equity instruments without any quoted price among the active market with the fair value could not be reliable measured, should not be reversed.
(5) Equity investments
After the consideration received from issuing the equity instruments by the Company deducted the transaction expenses, should be recorded in theshareholders’ equities. To repurchase the consideration and transaction expenses paid for the equity instruments and to decrease theshareholders’ equities.
When repurchasing the shares of the Company, those repurchased shares should be managed as the treasury stocks, and the whole expenses should be transferred as the treasury stocks cost and at the same time executes the future reference registration. The treasury stocks would not participate in the profits distribution and would be represented as the allowance items of theshareholders’ equities among the sheet balance.
When executing the written-off of the treasury stocks, should decrease the share capital according to the total amount of the face value of the stocks and for the part that the cost of the treasury stocks exceeds the total amount of the face value, should successively write down the capital surplus (capital stock premium), earned surplus and retained earnings; for the cost of the treasury stocks less than the total amount of the face value, the part that lower than the total amount of the face value should increase the capital surplus (capital stock premium).
When transferring the treasury stocks, for the part of the revenues of the transfer that higher than the cost of the treasury stocks, should increase the capital surplus (capital stock premium); for the part that lower than the cost of the treasury stocks, should successively write down the capital surplus (capital stock premium), earned surplus and retained earnings.
(6) Convertible instruments
– Convertible instruments
For the convertible instruments issued by the Group which could be converted as the equity shares and when converting, the shares number and the amount of the consideration are fixed, the Group consider which as the compound instruments that includes the components of liabilities and equities.
When executing the initial recognition, the Group splits the relevant liabilities and equities and firstly recognizes the fair value of the liabilities (including the fair value of the non-equity embedded derivative possibly included) then deducts the fair value of the liabilities component from the fair value of the compound instruments as the value of the equities component as well as record which in the equities component. The transaction expenses occurred from issuing the compound instruments, should amortize which according to each proportion of the total issuance price between the liabilities component and the equities component.
After the initial recognition, for the liabilities component without appointed to be measured by fair value and to be recorded in the current gains and losses with the changes, should be measured by the effective interest method according to the amortized cost. And the equities component would not be remeasured after the initial measurement.
When converting the convertible instruments, the Group transfers the liabilities component and the equities component to the relevant subjects. When the convertible instruments are redeemed, the price paid and the occurred transaction expenses should be distributed to the equities and liabilities component. The methods of the distribution price and the transaction expenses are unanimous with the distribution methods adopt when issuing the instruments. After the distribution of the price and transaction
expenses, for the differences between which and the book value of the equities component and between the book value of the liabilities component, the part related to the equities component should be recorded in the equity while the part related to the liabilities component should be recorded in the gains and losses.
– Other convertible instruments excluding the equities component
For the other convertible instruments excluding the equities component issued by the Group, when executing the initial recognition, the derivative instruments component of the convertible instruments should be measured by fair value while the remained part should be regarded as the initial recognized amount of the main debt instruments.
After the initial recognition, for the derivative instruments component, should be measured by fair value, and the gains or losses formed from the changes of the fair value should be recorded in the current gains and losses. As for the main debt instruments, should be measured by the effective interest rate according to the amortized cost.
When converting the convertible instruments, the Group transfers the main debt instruments and derivative instruments to the relevant subjects. When the convertible instruments are redeemed, the deference between the paid price and the book value of the main debt instruments as well as the derivative instruments should be recorded in the gains and losses.
Notes: Provide the classification, confirmation bases and measurement methods of financial tools, the confirmation bases and measurement methods of transfer of financial assets, the confirmation conditions of termination of financial liabilities, the fair value calculation methods of financial assets and financial liabilities, the test methods and accounting treatment methods of financial assets (receivables excluded).
11. Receivables
Receivables are assessed for impairment both on an individual basis and on a collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect of a receivable is calculated as the excess of its carrying amount over the present value of the estimated future cash flows (exclusive of future credit losses that have not been incurred) discounted at the original effective interest rate. All impairment losses are recognised in profit or loss. The Group recognised receivables individually greater than RMB 50,000,000 as significant and perform impairment test on an individual basis. Those receivables individually insignificant but with specific natures, i.e. legal issue or customer credit issue, are also reviewed and tested on an individual basis.
The assessment is made collectively where receivables share similar credit risk characteristics (including those not having been individually assessed as impaired), based on their historical loss experiences, and adjusted by the observable factors reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective evidence of a recovery in value of the financial asset which can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss. A reversal of an impairment loss 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.
12. Inventory
(1) Classification and cost of inventories
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 by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs. Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress and finished goods include direct labor costs and an appropriate allocation of production overheads.
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.
Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adopting one-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventories
On the balance sheet day, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and the estimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the production of inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net realizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities of inventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of inventories shall be based on general selling prices.
Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in the value of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories:
The Group maintains a perpetual inventory system.
13. Divided as assets held for sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through selling or other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction, the same below )which simultaneously meet with the following conditions as the assets held for sale.
– The assets could be immediately sold only according to the usual terms of selling this kind of assets under the current condition;– The Group had made resolutions on disposing the assets;
– The Group had signed the irrevocable assignment agreement with the transferees; and the transfer will be completed within 1 year. When the non-current assets be divided as assets held for sale, the Group measures the non-current assets held for sale, deferred income tax assets and the investment properties be follow-up measured by the fair value mode according to the lower one between the book value and the fair value after deducting the net amount of the disposal expenses, while the deference that the book value higher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of the assets. The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by the cost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held for sale that measured by equity method should cease the equity method measurement.
14. Long-term equity investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Investments in subsidiaries
– The initial investment cost of a long-term equity investment obtained through a business combination involving entities under common control is theCompany’s share of thesubsidiary’s equity at the combination date. The difference between the initial investment cost and the carrying amounts of the consideration given is adjusted to share premium in capital reserve. If the balance of the share premium is insufficient, any excess is adjusted to retained earnings. For the long-term equity investment of the subsidiaries formed from the enterprise merger under the same control that realized step by step of the multiple transaction not belong to package deal, the Company would adjust the capital stock premium among the capital surplus according to the difference between the initial
investment cost of the long-term equity investment recognized according to the above principles and the sum of the book value of the long-term equity investment before reaching the merger and the book value of the newly paid consideration which be further received on the merger date, and if the balance of the share premium is insufficient, any excess is adjusted to retained earnings.– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date, of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on the acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment obtained through a business combination involving entities not under common control by two or more transactions and by several steps, the initial investment cost is recognized as the aggregation of the carrying value ofacquirees’ equity investment before the acquisition date held by the Company and newly investment cost at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business combination
– An investment in a subsidiary acquired otherwise than through a business combination is initially recognized at initial investment cost 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, or at the value stipulated in the investment contract or agreement if an investment is contributed by shareholders.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment
(a) Investments in subsidiaries
In theCompany’s financial statements, investments in subsidiaries are accounted for using the cost method. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall be recognized as investment income, without dividing whetherit’s the net profit realized by the investee before the investment or after the investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid or consideration.
The investment of the subsidiaries is stated at cost less impairment losses in the balance sheet.
For the impairment test methods and the withdrawal methods of the impairment of the investment of the subsidiaries, please refer to the Notes V. 20.
In theGroup’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles. (b) Investment in jointly controlled enterprises and associates
The joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoy the rights of their own net assets.
An associate is an enterprise over which the Group has significant influence.
Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equity method, unless the investment is classified as held for sale.
The Group makes the following accounting treatments when using the equity method:
– Where the initial investment 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 recognized at the initial investment 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 recognized at theinvestor’s share of the fair value of theinvestee’s identifiable net assets, and the difference is charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of theinvestee’s net profits or losses after deducting the amortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoption of CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of the equity investment difference is amortized using the straight-line method over a period which is determined in accordance with previous accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the investment is reduced by that attributable to the Group. As for the other changes of theowners’ equities except for the net gains and losses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as
“changes of otherowners’ equities”), the Group included which in theshareholders’ equities according to the portion ought to be enjoyed or shared, and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of theinvestee’s net profits or losses, other comprehensive income and changes of otherowners’ equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on the fair values of theinvestee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from transactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of theGroup’s interest in the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates or jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment.
– The Group discontinues recognizing its share of net 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 associate or the jointly controlled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net profits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of those profits only after its share of the profits equals the share of losses not recognized.
For the impairment test methods and the withdrawal methods of the impairment provision of the investment on the joint ventures and the associated enterprises by the Group, please refer to Notes V. 20.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities of the arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-making through the unanimous consent of the parties sharing control.
The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:− No single venture is in a position to control the operating activities unilaterally;
− Operating decisions relating to theinvestee’s economic activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.
15. Investment real estates
Measurement of cost method
An investment property is a property held either to earn rental income or for capital appreciation or both. After deducting the estimated net salvage and accumulative impairment provision of the cost by the Group, the investment property is depreciated or amortized using the straight-line method over its estimated useful life, unless the investment property is classified as held for sale. The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
|||||
|-|-|-|-|
|Category|Useful life (years)|Residual value rate (%)|Annual depreciation rate (%)|
|Buildings|25-40 years|3%-10%|2.3%-3.9%|
|Land use rights|32-50 years|0%|2%-3.1%|

 If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash flows. 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. An asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors theGroup’s
operations and how management makes decisions about continuing or disposing of theGroup’s assets.
Anasset’s fair value less costs to sell is the amount determined by the price of a sale agreement in anarm’s length transaction, less the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reversed in a subsequent period.
16. Fixed assets
(1) Conditions for recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental to others or for operation and administrative purposes with useful lives over one 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 V. 17. Where parts of an item of fixed assets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciation rates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of an item of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group, and the carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit or loss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation methods
||||||
|-|-|-|-|-|
|Category of fixed assets|Method|Useful life|Expected net salvage value|Annual deprecation|
|Workshops and buildings|A verage method of useful life|10-50 years|3%-10%|1.8%-9.7%|
|Machinery equipments|Average method of useful life|2-20 years|0-10%|4.5%-50%|
|Other equipments|Average method of useful life|2-10years|0-10%|9%-50%|

(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to the lower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum lease payment should be regarded as the entry value of the long-term account payable with the difference be recognized as the unrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it is reasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assets shall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one of the lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest rate method within each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,
the Group will respectively list the difference from the long-term account payable related to the finance lease minuses the
unrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
17. Construction in progress
(1) Categories of construction in progress
Theenterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructed fixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and the necessary expenses happened before the assets reach the expected availablestate.。
(2) Standards and time of transferring construction in progress into fixed asset
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listed among the construction in progress and not withdraw the depreciation.
(3) Impairment test method and withdrawal method for impairment provision of construction in progress
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash flows. 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. An asset group is composed of assets directly relating to cash-generation. Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors theGroup’s operations and how management makes decisions about continuing or disposing of theGroup’s assets.
Anasset’s fair value less costs to sell is the amount determined by the price of a sale agreement in anarm’s length transaction, less the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
18. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized as part of the cost of the asset.
(2) Capitalization period of borrowing costs
The capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation of capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowing expenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach the expected available state had began, the borrowing expenses had began capitalization.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of the borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructed
and completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to different situation.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use or sale during the continuing construction of other parts, and if the acquisition and construction or production activities which are necessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization of the borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition of use or sale.
(3) Period for suspending capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
(4) Calculation method of capitalized amount of borrowing costs
− As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary investment.
− Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted average interest rate of the general borrowing.
− During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount of interest actually incurred to the relevant borrowings in the current period.
When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of the borrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount during the initial recognition of the borrowings.
During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currency specific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchange differences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specific borrowings, should be regarded as the financial expenses and included in the current gains and losses.
19. Intangible assets
(1) Pricing method, useful life and impairment test
(a) Pricing method of intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) and impairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized on the straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.
(b) Estimated useful life of intangible assets with limited useful life
As for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Group amortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classified as held for sale.
Item Estimated useful life Basis
Land use rights 40-50 years Period stipulated by the Land Use Right Certificate
Special technology 9-20 years Period agreed in the contract or estimated to bring economic benefits for the Company Computer software 3-10 years Period agreed in the contract or estimated to bring economic benefits for the Company Patent and others 5-10 years Period agreed in the contract or estimated to bring economic benefits for the Company (c) Judgment basis of intangible assets with uncertain useful life
An intangible asset is regarded as having an indefinite useful life and is not amortized 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 Groupdoesn’t have any intangible assets with indefinite useful lives.
(d) Withdrawal of impairment provision of intangible assets
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash flows. 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. An asset group is composed of assets directly relating to cash-generation. Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors theGroup’s operations and how management makes decisions about continuing or disposing of theGroup’s assets.
Anasset’s fair value less costs to sell is the amount determined by the price of a sale agreement in anarm’s length transaction, less the costs that are directly attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting policies of internal R& D expenses
(a) Criteria of dividing the research phase and development phase of internalR&D project
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, or products before the start of commercial production or use.
(b) Calculation of the expenditures of internalR&D project
Expenditures of internalR&D project of the Group divides into expenditures on the research phase and expenditures on the development phase.
Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase are capitalized 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 development. Capitalized development costs are stated at cost less impairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they are incurred.
20. Impairment of long-term assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets. Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. The Group will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise merger by the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill. The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash flows. 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. Fair value refers to the price received from selling an asset or paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Group evaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on the measurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use of the assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequate available data and supported by other information. The evaluation technology used mainly including the market method, equity method and cost method.
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. An asset group is composed of assets directly relating to cash-generation. Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors theGroup’s operations and how management makes decisions about continuing or disposing of theGroup’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
21. Amortization method of long-term deferred expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)
Cost of operating lease assets improvement 3-10 years
Cost of construction and use of public facilities 10-15 years
Others 3-10 years
22. Payroll
(1) Accounting treatment of short-term compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn worker wages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and birth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and records which in the current gains and losses or the relevant asset costs.
(2) Accounting treatment of the welfare after demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or after the labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-term compensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The defined contribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among the social security system set up and managed by the government institutions according to the requirements of the relevant Chinese regulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departments according to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance and the unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. The enterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employees voluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Company recognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Group not involved with any defined benefit plans.
(3) Accounting treatment of the demission welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice for compensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from the demission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
− When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or the reduction advice:
− The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then led all parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting treatment of the welfare of other long-term staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfare after demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits and long-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
23. Estimated liabilities
(1) Criteria of estimated liabilities
A provision is recognized 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.
(2) Measurement of estimated liabilities
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent when caring out the relevant current obligations. As for those with significant influences on the time value of money, the estimated liabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the best estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money related to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range is the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,
the best estimated number should be handled respectively according to the following situations:
− If the contingencies involve with a single item, should be recognized according to the most likely happened amount.
− If the contingencies involve with various items, should be recognized according to the calculation of various possible results and the relevant probabilities.
The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the book value according to the current best estimated number.
24. Revenue
Revenue is the gross inflow of economic benefit arising in the course of theGroup’s ordinary activities when the inflows result in increase inshareholder’s equity, other than increase relating to contributions from shareholders. Revenue is recognized in profit or loss when it is probable that the revenue and costs can be measured reliably and the economic benefits will flow to the Group, and the following respective conditions are met.
(1) Selling commodities
Revenue from sale of goods is recognized when all of the general conditions stated above and following conditions are satisfied:– The 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 considerations received or receivable under the sales contract or agreement.
The Group appointed different trading methods with buyers in the sales contract. The Company judges the main risks and time-point of remuneration transfer according to trading methods and recognizes the income correspondingly.
(2) Providing labor services
The Group confirms amount of rendering services according to received or receivable contract or treaty.
In balance sheet date, if the outcome of labor services can be reliably estimated, revenue from rendering services shall be confirmed by percentage-of-completion method, progress of rendering services shall be affirmed by measurement of finished works.
As for the outcome of labor services cannot be reliably estimated, if labor services expenses estimated can receive compensation, revenue from rendering services shall be confirmed by labor services costs and carried down by the same amount; if labor services expenses estimated cannot receive compensation, services costs shall be reckoned into current loss and gain and revenue from providing labor services shall not be confirmed.
(3) Construction contract revenue
On balance sheet date, if the results of the construction contract could be reliable evaluated, the contract income and the contract expenditure should be recognized according to the completion percentage method.
The Group recognized the progress of the contract completion according to the percentage of the accumulative actual happened contract cost among the expected total contract cost.
If the result of the construction contractcouldn’t be reliable evaluated, the Group should dispose according to the following situations respectively:
− If the contract cost could be returned, the contract income should be recognized according to the actual contract cost which could be returned, and the contract cost should be recognized as contract expenditure during the period when happened;
− If the contract cost could not be returned, should be recognized as contract expenditure at the time when happened, and not be recognized as contract income.
(4) Interest revenue
Interest revenue is recognized according to the calculation of the time of lending monetary capital and the effective interest rate. (5) Royalty revenue of the intangible assets
Royalty revenue of the intangible assets is recognized according to the charging time and methods agreed by the contracts or the protocol.
25. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government grants gained by the Company and for purchasing and construction or for forming the long-term assets through other methods are as the government grants related to the assets. Government subsidies related to assets should offset the book value of related assets or be recognized as deferred income. Government subsidies related to assets that were recognized as deferred income should be recorded into profits and losses by stages according to reasonable and systematic methods within useful lives. Government subsidies measured by nominal amount should be recorded into profits and losses directly.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The other government grants except for the assets-related grants that gained by the Group are as the government grants related to the revenues. Those government subsidies related to profits used for compensating the related future expenses or losses of the enterprise shall be recognized as deferred income and shall included in the current profits and losses or offset related costs during the period when the relevant cost expense or losses are recognized; or those subsidies used for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and losses or offset related costs.
(3) Handling methods of government subsidies including both those related to assets and those related to profits
Government subsidies including both those related to assets and those related to profits should be conducted accounting treatment separately from different parts; if it is hard to distinguish, it should be wholly classified as government subsidies related to profits. 26. Deferred income tax assets/deferred income tax liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference between the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can be carried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets shall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by the deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of the subsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income tax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future; and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences. (2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference between the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from the initial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating to the investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred income tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can control the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
27. Lease
(1) Accounting treatment of operating lease
(a) Operating lease charges
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.
(b) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment property (see Notes V. 16 (3), are depreciated in accordance with theGroup’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the accounting policy. Income derived from operating leases is recognized 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 capitalized and subsequently amortized 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.
(2) Accounting treatments of financial lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values and the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are recorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognized as unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to the amounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting policies described in Notes V. 16 (3) and Notes V. 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.
Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. The amortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arising from finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities due within one year, respectively in the balance sheet.
28. Other significant accounting policies and estimates
(1) 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, joint control, or significant influence 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 of the Group. Related parties of the Group and the Company include, but are not limited to:
(a) theCompany’s parent
(b) theCompany’s subsidiaries
(c) enterprises that are controlled by theCompany’s parent
(d) investors that have joint control or over exercise significant influence over the Group
(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals and the Group
(f) joint ventures of the Group, including subsidies of joint ventures
(g) associates of the Group, including subsidies of associates
(h) principal individual investors and close family members of such individuals
(i) key management personnel of the Group and close family members of such individuals
(j) key management personnel of theCompany’s parent
(k) close family members of key management personnel of theCompany’s parent; and
(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key management personnel of the Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises and individuals are considered as (but not restricted to) related parties based on the disclosure requirements of “Administrative Procedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold5% or more of theCompany’s shares
(n) individuals and close family members of such individuals who directly or indirectly hold5% or more of theCompany’s shares (o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within the next 12 months pursuant to a relevant agreement
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within the next 12 months pursuant to a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by an individual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive. (2) Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of theGroup’s internal organization, management requirements and internal reporting system. An operating segment is recognized when all of the following conditions have been satisfied:
– the component engages in business activities from which it may earn revenues and incur expenses;
– whose operating results are regularly reviewed by theGroup’s management to make decisions about resource to be allocated to the segment and assess its performance; and
– for which financial information regarding financial position, results of operations and cash flows is available.
Two or more operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics, and are similar in respect of the following conditions:
– The nature of products and services
– 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
When the Group drafts the report of an operating segment, transaction income from operating segments is measured at the basis of actual transaction price. Policies adopts in preparing the report of an operating segment shall in accordance with accounting policies adopted in the preparation of financial statements of the Group.
29. Changes in main accounting policies and estimates
The Ministry of Finance issued The Accounting Standards for Enterprises No. 16 - Governmental Subsidies on May 2017, which implemented from June 12, 2017. The Company revised financial statement according to it. Governmental subsidies related to routine activities of enterprises were recorded into other incomes or offset related costs in line with the essence of economic business. At the same time, item “other gains” is added above the item of “operating profits” in the income statement, and governmental subsidies recorded into other gains was reflected in this item. This changedidn’t have an influence on financial conditions, operating results, and cash flow of the Company. Except the above-mentioned items, other changes of accounting policies due to the implementation of new criteriadidn’t have an impact on items and amounts of financial statement, and there was also no need of
retroactive adjustment.
VI. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Category of taxes|Tax basis|Tax rate|
||Output VAT is calculated on product sales and taxable services||
||revenue, based on tax laws. The remaining balance of output VAT,||
|VAT||6%，11%，13% ，17%|
||after subtracting the deductible input VAT of the period, is VAT||
||payable.||
|City maintenance and|||
||Based on VAT payable and the VAT tax free for the Period|5%，7%|
|construction tax|||
|Enterprise income tax|Based on taxable revenue|15%-25%|
|Education surcharge and local|||
||Based on VAT payable and the VAT tax free for the Period|3%，2%|
|education surcharge|||

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
|||
|-|-|
|Name|Income tax rate|
|BOE Technology Group Co., Ltd.|15%|
||15%|
|Beijing BOE Optoelectronics Technology Co., Ltd.||
|Chengdu BOE Optoelectronics Technology Co., Ltd.|15%|
|Hefei BOE Optoelectronics Technology Co., Ltd.|15%|
|Beijing BOE Display Technology Co., Ltd.|15%|
|Hefei Xinsheng Optoelectronics Technology Co., Ltd.|15%|
|Erdos Yuansheng Optoelectronics Co., Ltd.|15%|
|Chongqing BOE Optoelectronics Technology Co., Ltd.|15%|
|BOE (Hebei) Mobile Display Technology Co., Ltd.|15%|
|BOE Optical Science and Technology Co., Ltd.|15%|
|Beijing BOE Tea Valley Electronic Co., Ltd.|15%|
|Xiamen BOE Electronic Co., Ltd.|15%|
|Hefei BOE Display Light Source Co., Ltd.|15%|
|Chongqing BOE Display Lighting Co., Ltd.|15%|
|Beijing BOE Dedicated Display Technology Co., Ltd.|15%|
|Beijing BOE Vacuum Electronics Co., Ltd.|15%|
|Beijing BOE Vacuum Technology Co., Ltd.|15%|
|Beijing BOE Semi-conductor Co., Ltd.|15%|
|Hefei BOE Semi-conductor Co., Ltd.|15%|

|||
|-|-|
|Beijing Asahi Electron Material Co., Ltd.|15%|
|Beijing BOE Energy Technology Co., Ltd.|15%|
|Beijing BOE Multimedia Technology Co., Ltd.|15%|

VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash on hand|237,047.00|707,796.00|
|Bank deposits|42,521,903,389.00|49,170,616,669.00|
|Other monetary funds|8,238,260,291.00|8,981,492,758.00|
|Total|50,760,400,727.00|58,152,817,223.00|
|Of which: the total amount deposited in|||
||2,415,297,182.00|858,689,619.00|
|overseas|||

Other notes
Of which: the total amount deposited in overseas was equivalent to RMB 2,415,297,182 Yuan (Y2016: RMB 858,689,619 Yuan). On June 30, 2017, the Company took USD 118,064,983 among the other monetary capital (Y2016: USD 17,428,071) as the pledge for acquiring the short-term borrowings, and took RMB 982,393,752 Yuan and USD11,000,000 (Y2016: RMB120,217,226 Yuan and USD11,000,000) as the pledge for acquiring the long-term borrowings. The rest of the other monetary capital equivalent to RMB 7,137,801,555 Yuan (Y2016: RMB 8,480,584,080 Yuan) was the margin deposit for security deposited in the commercial bank. 2. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank acceptance bill|1,260,902,564.00|1,358,736,650.00|
|Commercial acceptance bill|2,400,000.00|11,100,000.00|
|Total|1,263,302,564.00|1,369,836,650.00|

 (2) Notes receivable pledged by the Company at the period-end
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Bank acceptance bill|56,626,085.00|
|Commercial acceptance bill|0.00|

|||
|-|-|
|Total|56,626,085.00|

 (3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
Unit: RMB Yuan
||||
|-|-|-|
||Amount of recognition termination at the|Amount of not terminated recognition at|
|Item|||
||period-end|the period-end|
|Bank acceptance bill|0.00|483,922,857.00|
|Commercial acceptance bill|0.00|0.00|
|Total|0.00|483,922,857.00|

3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||||Withdrawal|Book value||||Withdrawal|Book value|
||Amount|Proportion|Amount|||Amount|Proportion|Amount|||
|||||proportion|||||proportion||
|Accounts receivable|||||||||||
|with significant single|||||||||||
|amount for which bad|0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|debt provision|||||||||||
|separately accrued|||||||||||
|Accounts receivable|||||||||||
|withdrawn bad debt|||||||||||
|provision according to|17,055,944,269.00|99.69%|205,354,502.00|1.20%|16,850,589,767.00|15,857,746,391.00|97.75%|0.00|0.00%|15,857,746,391.00|
|credit risks|||||||||||
|characteristics|||||||||||
|Accounts receivable|||||||||||
|with insignificant single|||||||||||
|amount for which bad|53,255,837.00|0.31%|40,310,865.00|75.69%|12,944,972.00|365,417,037.00|2.25%|31,371,811.00|8.59%|334,045,226.00|
|debt provision|||||||||||
|separately accrued|||||||||||
|Total|17,109,200,106.00|100.00%|245,665,367.00|1.44%|16,863,534,739.00|16,223,163,428.00|100.00%|31,371,811.00|0.19%|16,191,791,617.00|

Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable√ Not applicable
No such cases in the Reporting Period.
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable√ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
√Applicable□Not applicable
|||||
|-|-|-|-|
||Closing balance|||
|Name of the group||||
||Accounts receivable|bad debt provision|Withdrawal proportion|
|Credit risks portfolio|273,806,002.00|205,354,502.00|75.00%|
|Total|273,806,002.00|205,354,502.00|75.00%|

 In the groups, accounts receivable adopting other methods to accrue bad debt provision:
|||||||
|-|-|-|-|-|-|
|||||Closing balance||
||Withdrawal method of the|Basic for recognizing the|||Withdrawal|
|Name of the group|||Closing balance|of the bad debt||
||bad debt provision by group|group|||proportion|
|||||provision||
|Credit risks||Owns the similar credit||||
||Other method||16,782,138,267.00|0.00|0.00%|
|portfolio||risks characteristics||||

(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 215,284,889.00 Yuan; the amount of the collected or reversed part during the Reporting Period was of RMB 575,305.00 Yuan.
(3) The actual write-off accounts receivable
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Customer 1|416,028.00|

 (4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
The total amount of the accounts receivable of the top 5 of the Group at the year-end was of RMB 7,249,347,777.00 Yuan that covered42.37% of the total amount of the closing balance of the accounts receivable at the year-end, which no need to withdraw the bad debt provision after the assessment.
4. Prepayment
(1) List by aging analysis
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|||||
||Amount|Proportion|Amount|Proportion|
|Within 1 year|993,364,604.00|95.37%|706,523,558.00|99.72%|
|1 to 2 years|46,574,256.00|4.47%|1,191,189.00|0.17%|
|2 to 3 years|936,770.00|0.09%|418,929.00|0.06%|
|Over 3 years|756,820.00|0.07%|377,797.00|0.05%|
|Total|1,041,632,450.00|--|708,511,473.00|--|

There was no prepayment ages over 1 year with significant amount but failed settled in time of the Group.
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
The total amount of the prepayment of the top 5 of the Group at the year-end was of RMB 566,965,097.00 Yuan that covered54.43% of the total amount of the closing balance of the prepayment at the year-end.
5. Interest receivable
(1) Category of interest receivable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Fixed time deposit|87,911,912.00|123,027,401.00|
|Bond investment|1,276,329.00|2,114,172.00|
|Total|89,188,241.00|125,141,573.00|

 There was no overdue interest of the Group in the Reporting Period.
6. Dividend receivable
(1) Dividend receivable
Unit: RMB Yuan
||||
|-|-|-|
|Item (or investees)|Closing balance|Opening balance|
|TPV Technology Co., Ltd|930,175.00|0.00|
|China Securities Co., Ltd.|2,036,374.00|0.00|
|Bank of Chongqing Co., Ltd.|7,283,900.00|0.00|
|Total|10,250,449.00|0.00|

7. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||||Withdrawal|Book value||||Withdrawal|Book value|
||Amount|Proportion|Amount|||Amount|Proportion|Amount|||
|||||proportion|||||proportion||
|Other accounts receivable with significant|||||||||||
|single amount for which bad debt provision|0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|separately accrued|||||||||||
|Other accounts receivable withdrawn bad debt|||||||||||
|provision according to credit risks|955,540,522.00|99.93%|0.00|0.00%|955,540,522.00|903,069,416.00|99.93%|0.00|0.00%|903,069,416.00|
|characteristics|||||||||||
|Other accounts receivable with insignificant|||||||||||
|single amount for which bad debt provision|653,341.00|0.07%|653,341.00|100.00%|0.00|653,341.00|0.07%|653,341.00|100.00%|0.00|
|separately accrued|||||||||||
|Total|956,193,863.00|100.00%|653,341.00|0.07%|955,540,522.00|903,722,757.00|100.00%|653,341.00|0.07%|903,069,416.00|

 Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
|||||
|-|-|-|-|
|Name of the group|Closing balance|||
||Other accounts receivable|Bad debt provision|Withdrawal proportion|
|Credit risks portfolio|955,540,522.00|0.00|0.00%|
|Total|955,540,522.00|0.00|0.00%|

 There were no withdrawn, collected and reversed other accounts receivable made bad debt provision in the Reporting Period. There was no write-off other accounts receivable.
(2) Other accounts receivable classified by the nature of accounts
Unit: RMB Yuan
||||
|-|-|-|
|Nature|Closing book balance|Opening book balance|
|Cash deposit and cash pledge|298,986,380.00|289,801,526.00|
|Equity transfer fee of accounts receivable|200,000,000.00|200,000,000.00|
|VAT refunds|172,000,398.00|252,652,057.00|
|Other|285,207,085.00|161,269,174.00|
|Total|956,193,863.00|903,722,757.00|

 (3) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||total closing balance|Closing balance of|
|Name of units|Nature|Closing balance|Aging|||
|||||of the accounts|bad debt provision|
|||||receivable||
||Equity transfer fee of|||||
|Customer 1||200,000,000.00|Over 3 years|20.91%|0.00|
||accounts receivable|||||
||Cash deposit and|||||
|Customer 2||155,857,000.00|Within 1 year|16.30%|0.00|
||cash pledge|||||
|Customer 3|VAT refunds|132,142,138.00|Within 1 year|13.82%|0.00|
||Cash deposit and||1 to 2 years, 2 to 3|||
|Customer 4||47,500,000.00||4.97%|0.00|
||cash pledge||years, over 3 years|||
|Customer 5|VAT refunds|39,293,276.00|Within 1 year|4.11%|0.00|
|Total|--|574,792,414.00|--|60.11%|0.00|

8. Inventory
(1) Category of inventory
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Falling price|||Falling price||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Raw materials|4,214,864,010.00|290,628,680.00|3,924,235,330.00|3,378,887,483.00|170,279,800.00|3,208,607,683.00|
|Goods in|||||||
||984,571,354.00|126,136,041.00|858,435,313.00|1,110,541,775.00|154,157,198.00|956,384,577.00|
|process|||||||
|Inventory|||||||
||6,236,285,547.00|1,368,314,770.00|4,867,970,777.00|4,348,635,413.00|789,031,165.00|3,559,604,248.00|
|goods|||||||
|Turnover|||||||
||108,603,407.00|80,791.00|108,522,616.00|109,264,439.00|722,415.00|108,542,024.00|
|materials|||||||
|Total|11,544,324,318.00|1,785,160,282.00|9,759,164,036.00|8,947,329,110.00|1,114,190,578.00|7,833,138,532.00|

 (2) Falling price reserves of inventory
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Increased amount||Decreased amount|||
|Item|Opening balance|||Reverse or||Closing balance|
|||Withdrawal|Other||Other||
|||||write-off|||
|Raw materials|170,279,800.00|176,817,674.00|0.00|56,468,794.00|0.00|290,628,680.00|
|Goods in process|154,157,198.00|134,288,520.00|0.00|162,309,677.00|0.00|126,136,041.00|
|Inventory goods|789,031,165.00|1,268,169,877.00|0.00|688,886,272.00|0.00|1,368,314,770.00|
|Turnover|||||||
||722,415.00|116,078.00|0.00|757,702.00|0.00|80,791.00|
|materials|||||||
|Total|1,114,190,578.00|1,579,392,149.00|0.00|908,422,445.00|0.00|1,785,160,282.00|

 9. Non-current assets due within 1 year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term accounts receivable due within 1 year|28,941,602.00|66,321,715.00|
|Total|28,941,602.00|66,321,715.00|

10. Other current assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT retained|4,868,312,927.00|4,323,654,894.00|
|Input tax to be verified and deducted|1,033,290,595.00|1,264,145,639.00|
|Finance products|3,846,277,217.00|60,267,110.00|
|Other|25,723,811.00|43,132,583.00|
|Total|9,773,604,550.00|5,691,200,226.00|

 11. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserves|||reserves||
|Available-for-sale|||||||
||14,253,190.00|0.00|14,253,190.00|12,348,030.00|0.00|12,348,030.00|
|liabilities instruments:|||||||
|Available-for-sale equity|||||||
||893,276,142.00|150,279,655.00|742,996,487.00|760,434,181.00|150,279,655.00|610,154,526.00|
|instruments:|||||||
|Measured by fair|||||||
||669,742,110.00|150,099,655.00|519,642,455.00|531,987,776.00|150,099,655.00|381,888,121.00|
|value|||||||
|Measured by cost|223,534,032.00|180,000.00|223,354,032.00|228,446,405.00|180,000.00|228,266,405.00|
|Total|907,529,332.00|150,279,655.00|757,249,677.00|772,782,211.00|150,279,655.00|622,502,556.00|

 (2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB Yuan
|||||
|-|-|-|-|
||Available-for-sale equity|Available-for-saleliabilities instruments||
|Category of the available-for-sale financial assets|||Total|
||instruments|||
|Cost of the equity instruments/amortized cost of the||||
||561,423,245.00|12,647,553.00|574,070,798.00|
|liabilities instruments||||
|Fair value|519,642,455.00|14,253,190.00|533,895,645.00|
|Changes amount of the fair value accumulatively recorded||||
||108,318,865.00|-23,560.00|108,295,305.00|
|in other comprehensive income||||
|Withdrawn impairment amount|150,099,655.00|0.00|150,099,655.00|

(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Impairment provision||||Shareholding|
||||||||||proportion|
|Investee||||||||||
||Period-begin|Increase|Decrease|Period-end|Period-begin|Increase|Decrease|Period-end|among the|
||||||||||investees|
|Teralane Semiconductor Inc|11,868,000.00|0.00|0.00|11,868,000.00|0.00|0.00|0.00|0.00|7.29%|
|Zhejiang BOE Display||||||||||
||321,256.00|0.00|0.00|321,256.00|0.00|0.00|0.00|0.00|7.03%|
|Technology Co., Ltd.||||||||||
|Zhejiang Qiusheng||||||||||
|Optoelectronics Technology|248,776.00|0.00|0.00|248,776.00|0.00|0.00|0.00|0.00|5.09%|
|Co., Ltd.||||||||||
|Beijing Digital TV National||||||||||
|Engineering Laboratory Co.,|6,250,000.00|0.00|0.00|6,250,000.00|0.00|0.00|0.00|0.00|12.50%|
|Ltd.||||||||||
|Meta Company|34,684,948.00|0.00|812,999.00|33,871,949.00|0.00|0.00|0.00|0.00|5.66%|
|Danhua Capital,L.P.|26,013,750.00|0.00|609,750.00|25,404,000.00|0.00|0.00|0.00|0.00|5.48%|
|Danhua CapitalII,L.P|13,874,000.00|0.00|325,200.00|13,548,800.00|0.00|0.00|0.00|0.00|3.29%|
|Kateeva,Inc.|82,862,466.00|0.00|1,942,258.00|80,920,208.00|0.00|0.00|0.00|0.00|3.51%|
|DIPICT INC.|13,874,000.00|0.00|325,200.00|13,548,800.00|0.00|0.00|0.00|0.00|19.83%|
|MOOV INC.|27,862,839.00|0.00|653,092.00|27,209,747.00|0.00|0.00|0.00|0.00|6.48%|
|ZGLUE,INC.|10,405,488.00|0.00|243,899.00|10,161,589.00|0.00|0.00|0.00|0.00|6.00%|
|Other|180,882.00|25.00|0.00|180,907.00|180,000.00|0.00|0.00|180,000.00|-|
|Total|228,446,405.00|25.00|4,912,398.00|223,534,032.00|180,000.00|0.00|0.00|180,000.00|--|

(4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period Unit: RMB Yuan
|||||
|-|-|-|-|
||Available-for-sale equity|Available-for-sale||
|Category of the available-for-sale financial assets|||Total|
||instruments|liabilities instruments||
|Withdrawn impairment balance at the||||
||150,279,655.00|0.00|150,279,655.00|
|period-begin||||
|Withdrawn amount of the period|0.00|0.00|0.00|
|Of which: transferred from other comprehensive||||
||0.00|0.00|0.00|
|income||||
|Decreased in the period|0.00|0.00|0.00|
|Of which: recovered and reversed amount of the||||
||0.00|0.00|0.00|
|fair value after the period||||
|Withdrawn impairment balance at the period-end|150,279,655.00|0.00|150,279,655.00|

 12. Investment held-to-maturity
(1) List of investment held-to-maturity
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
|||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Convertible|||||||
|bonds for HYDIS|17,960,946.00|17,960,946.00|0.00|17,960,946.00|17,960,946.00|0.00|
|Technology|||||||
|Total|17,960,946.00|17,960,946.00|0.00|17,960,946.00|17,960,946.00|0.00|

13. Long-term equity investment
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
||||||||||||Closing|
|||||Gains and losses|Adjustment of||Cash bonus or|||||
|||||||||Withdrawal of|||balance of|
|Investees|Opening balance|Additional|Reduced|recognized under|other|Changes of|profits|||Closing balance||
|||||||||impairment|Other||impairment|
|||investment|investment|the equity|comprehensive|other equity|announced to|||||
|||||||||provision|||provision|
|||||method|income||issue|||||
|I. Joint ventures||||||||||||
|Naught||||||||||||
|II. Associated enterprises||||||||||||
|Beijing Nissin||||||||||||
|Electronics||||||||||||
|Precision|359,892.00|0.00|0.00|-359,892.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Component||||||||||||
|Co., Ltd.||||||||||||
|Beijing Nittan||||||||||||
|Electronics|40,628,603.00|0.00|0.00|1,683,861.00|0.00|0.00|0.00|0.00|0.00|42,312,464.00|0.00|
|Co., Ltd.||||||||||||
|Beijing||||||||||||
|Yingfei Hailin||||||||||||
|Venture||||||||||||
||456,681.00|0.00|0.00|-232,315.00|0.00|0.00|0.00|0.00|0.00|224,366.00|0.00|
|Capital||||||||||||
|Management||||||||||||
|Co., Ltd.||||||||||||
|Ordos BOE||||||||||||
||907,463,270.00|0.00|0.00|-4,959.00|0.00|0.00|0.00|0.00|0.00|907,458,311.00|537,136,972.00|
|Energy||||||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investment||||||||||||
|Co., Ltd.||||||||||||
|(BOE Energy||||||||||||
|Investment)||||||||||||
|Beijing Fly||||||||||||
|Hailin||||||||||||
||156,981,032.00|0.00|0.00|-413,210.00|0.00|0.00|0.00|0.00|0.00|156,567,822.00|0.00|
|Investment||||||||||||
|Center||||||||||||
|TPV Display||||||||||||
|Technology||||||||||||
||26,622,344.00|0.00|0.00|-2,292,247.00|0.00|0.00|0.00|0.00|0.00|24,330,097.00|0.00|
|(China) Co.,||||||||||||
|Ltd.||||||||||||
|Beijing||||||||||||
|Xindong||||||||||||
|Neng||||||||||||
||679,323,799.00|300,000,000.00|0.00|-8,238,903.00|0.00|0.00|0.00|0.00|0.00|971,084,896.00|0.00|
|Investment||||||||||||
|Fund (limited||||||||||||
|partnership)||||||||||||
|Beijing||||||||||||
|Xindong||||||||||||
|Neng||||||||||||
||2,906,218.00|0.00|0.00|905,446.00|0.00|0.00|0.00|0.00|0.00|3,811,664.00|0.00|
|Investment||||||||||||
|Management||||||||||||
|Co., Ltd.||||||||||||
|Shenzhen||||||||||||
|Yunyinggu||||||||||||
||50,345,936.00|0.00|0.00|-4,271,755.00|0.00|0.00|0.00|0.00|0.00|46,074,181.00|0.00|
|Technology||||||||||||
|Co., Ltd.||||||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Beijing||||||||||||
|Xiaolong||||||||||||
||24,448,577.00|0.00|0.00|-466,580.00|0.00|0.00|0.00|0.00|0.00|23,981,997.00|0.00|
|Technology||||||||||||
|Co., Ltd.||||||||||||
|New On||||||||||||
|Technology|3,712,015.00|0.00|0.00|0.00|0.00|-110,387.00|0.00|0.00|0.00|3,601,628.00|0.00|
|Co., Ltd.||||||||||||
|Cnoga||||||||||||
||0.00|344,965,000.00|0.00|0.00|0.00|-6,245,000.00|0.00|0.00|0.00|338,720,000.00|0.00|
|Medical Ltd.||||||||||||
|Subtotal|1,893,248,367.00|644,965,000.00|0.00|-13,690,554.00|0.00|-6,355,387.00|0.00|0.00|0.00|2,518,167,426.00|537,136,972.00|
|Total|1,893,248,367.00|644,965,000.00|0.00|-13,690,554.00|0.00|-6,355,387.00|0.00|0.00|0.00|2,518,167,426.00|537,136,972.00|

14. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable□ Not applicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||construction in||
|Item|Houses and buildings|Land use right||Total|
||||progress||
|I. Original book value|||||
|1. Opening balance|858,774,469.00|659,779,217.00|0.00|1,518,553,686.00|
|2. Increased amount of the period|92,517,320.00|0.00|0.00|92,517,320.00|
|(1) Outsourcing|0.00|0.00|0.00|0.00|
|(2) Transfer of inventory\fixed|||||
||92,517,320.00|0.00|0.00|92,517,320.00|
|assets\project under construction|||||
|(3) Increased from enterprise merger|0.00|0.00|0.00|0.00|
|3. Decreased amount of the period|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer|0.00|0.00|0.00|0.00|
|4. Closing balance|951,291,789.00|659,779,217.00|0.00|1,611,071,006.00|
|II. Accumulative depreciation and|||||
|accumulative amortization|||||
|1.Opening balance|226,768,752.00|98,852,038.00|0.00|325,620,790.00|
|2. Increased amount of the period|6,697,291.00|6,988,210.00|0.00|13,685,501.00|
|(1) Withdrawal or amortization|6,697,291.00|6,988,210.00|0.00|13,685,501.00|
|3. Decreased amount of the period|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer|0.00|0.00|0.00|0.00|
|4. Closing balance|233,466,043.00|105,840,248.00|0.00|339,306,291.00|
|III. Depreciation reserves|||||
|1.Opening balance|0.00|0.00|0.00|0.00|
|2. Increased amount of the period|0.00|0.00|0.00|0.00|
|(1) Withdrawal|0.00|0.00|0.00|0.00|
|3. Decreased amount of the period|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|
|(2) Other transfer|0.00|0.00|0.00|0.00|

||||||
|-|-|-|-|-|
|4. Closing balance|0.00|0.00|0.00|0.00|
|IV. Book value|||||
|1. Closing book value|717,825,746.00|553,938,969.00|0.00|1,271,764,715.00|
|2. Opening book value|632,005,717.00|560,927,179.00|0.00|1,192,932,896.00|

 15. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Workshops and||||
|Item||Equipments|Other|Total|
||buildings||||
|I. Original book value|||||
|1. Opening balance|22,485,925,560.00|86,402,866,264.00|1,399,699,850.00|110,288,491,674.00|
|2. Increased amount of the Period|4,260,330,890.00|10,046,644,783.00|164,943,138.00|14,471,918,811.00|
|(1) Purchase|7,062,804.00|387,715,982.00|48,078,585.00|442,857,371.00|
|(2) Transfer of project under|||||
||4,254,099,685.00|9,294,442,868.00|117,290,308.00|13,665,832,861.00|
|construction|||||
|(3)Enterprise combination increase|0.00|368,035,195.00|146,825.00|368,182,020.00|
|(4) difference of foreign currency|||||
||-831,599.00|-3,549,262.00|-572,580.00|-4,953,441.00|
|conversion|||||
|3. Decreased amount of the Period|699,698.00|170,543,747.00|42,705,117.00|213,948,562.00|
|(1) Disposal or Scrap|699,698.00|170,543,747.00|42,705,117.00|213,948,562.00|
|4. Closing balance|26,745,556,752.00|96,278,967,300.00|1,521,937,871.00|124,546,461,923.00|
|II. Accumulative depreciation|||||
|1. Opening balance|2,794,512,892.00|36,336,492,967.00|544,281,552.00|39,675,287,411.00|
|2. Increased amount of the Period|353,931,897.00|4,920,970,998.00|169,193,877.00|5,444,096,772.00|
|(1) Withdrawal|354,392,573.00|4,926,272,191.00|169,962,462.00|5,450,627,226.00|
|(2) difference of foreign currency|||||
||-460,676.00|-5,301,193.00|-768,585.00|-6,530,454.00|
|conversion|||||
|3. Decreased amount of the Period|2,073,585.00|91,456,617.00|35,033,083.00|128,563,285.00|
|(1) Disposal or Scrap|2,073,585.00|91,456,617.00|35,033,083.00|128,563,285.00|
|4. Closing balance|3,146,371,204.00|41,166,007,348.00|678,442,346.00|44,990,820,898.00|
|III. Depreciation reserves|||||
|1. Opening balance|1,100,015.00|663,773,942.00|743,339.00|665,617,296.00|
|2. Increased amount of the Period|0.00|0.00|0.00|0.00|

||||||
|-|-|-|-|-|
|(1) Withdrawal|0.00|0.00|0.00|0.00|
|3. Decreased amount of the Period|0.00|8,753,425.00|52,840.00|8,806,265.00|
|(1) Disposal or Scrap|0.00|8,753,425.00|52,840.00|8,806,265.00|
|4. Closing balance|1,100,015.00|655,020,517.00|690,499.00|656,811,031.00|
|IV. Book value|||||
|1. Closing book value|23,598,085,533.00|54,457,939,435.00|842,805,026.00|78,898,829,994.00|
|2. Opening book value|19,690,312,653.00|49,402,599,355.00|854,674,959.00|69,947,586,967.00|

 (2) Fixed assets leased in from financing lease
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Accumulativedepreciation|||
|Item|Original book value||Impairment provision|Book value|
|Workshops and buildings|11,291,665.00|3,976,472.00|0.00|7,315,193.00|

 16. Construction in Progress
(1) List of Construction in Progress
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|The 8.5th Generation|||||||
|TFT-LCD Project of Hefei|||||||
||3,729,515,818.00|0.00|3,729,515,818.00|3,775,171,446.00|0.00|3,775,171,446.00|
|Xinsheng and the touch|||||||
|screen project|||||||
|AM-OLED Project of|||||||
|Yuansheng|7,046,838,909.00|0.00|7,046,838,909.00|6,977,796,088.00|0.00|6,977,796,088.00|
|Optoelectronics|||||||
|The 8.5th Generation|||||||
|New Type Semiconductor|||||||
||6,629,936,627.00|0.00|6,629,936,627.00|8,408,445,327.00|0.00|8,408,445,327.00|
|Display Device Project of|||||||
|Fuzhou|||||||
|The 6th Generation|||||||
|LTPS/AMOLED|||||||
||12,831,739,192.00|0.00|12,831,739,192.00|6,623,826,176.00|0.00|6,623,826,176.00|
|Production Line Project of|||||||
|Chengdu|||||||
|The 10.5th Generation|||||||
||10,050,744,422.00|0.00|10,050,744,422.00|3,720,534,213.00|0.00|3,720,534,213.00|
|TFT-LCD Project of Hefei|||||||

||||||||
|-|-|-|-|-|-|-|
|BOE Display|||||||
|Others|3,839,605,704.00|1,311,456.00|3,838,294,248.00|3,503,786,926.00|1,311,456.00|3,502,475,470.00|
|Total|44,128,380,672.00|1,311,456.00|44,127,069,216.00|33,009,560,176.00|1,311,456.00|33,008,248,720.00|

(2) Changes of Significant Construction in Progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|||Of which: the|Capitalizati||
|||||Amount that|Other||||Accumulative|||Capit|
||||||||estimated of|||amount of the|on rate of||
|||||transferred to|decreased|||Project|amount of|||al|
|Name o f item|Estimated number|Opening balance|Increased amount|||Closing balance|the project|||capitalized|the||
|||||fixed assets of the|amount of|||progress|capitalized|||resour|
||||||||accumulative|||interests of the|interests of||
|||||period|the period||||interests|||ces|
||||||||input|||period|the period||
|The 8.5th Generation|||||||||||||
|TFT-LCD Project of Hefei||||||||||||Self-r|
||30,987,000,000.00|3,775,171,446.00|153,716,996.00|199,372,624.00|0.00|3,729,515,818.00|81.46%|81.46%|0.00|-3,831,721.00|0.00%||
|Xinsheng and the touch||||||||||||aised|
|screen project|||||||||||||
|AM-OLED Project of|||||||||||||
|||||||||||||Self-r|
|Yuansheng|20,020,000,000.00|6,977,796,088.00|69,042,821.00|0.00|0.00|7,046,838,909.00|84.54%|84.54%|130,261,795.00|68,681,250.00|4.68%||
|||||||||||||aised|
|Optoelectronics|||||||||||||
|The 8.5th Generation|||||||||||||
|New Type Semiconductor||||||||||||Self-r|
||26,985,000,000.00|8,408,445,327.00|10,504,234,966.00|12,282,743,666.00|0.00|6,629,936,627.00|71.47%|71.47%|97,867,361.00|109,229,940.00|4.44%||
|Display Device Project of||||||||||||aised|
|Fuzhou|||||||||||||
|The 6th Generation|||||||||||||
|LTPS/AMOLED||||||||||||Self-r|
||44,800,000,000.00|6,623,826,176.00|6,311,890,258.00|103,977,242.00|0.00|12,831,739,192.00|28.89%|28.89%|51,056,632.00|51,056,632.00|5.07%||
|Production Line Project of||||||||||||aised|
|Chengdu|||||||||||||
|The 10.5th Generation|||||||||||||
|||||||||||||Self-r|
|TFT-LCD Project of Hefei|42,937,000,000.00|3,720,534,213.00|6,334,494,221.00|4,160,937.00|123,075.00|10,050,744,422.00|23.42%|23.42%|39,767,850.00|36,407,217.00|3.87%||
|||||||||||||aised|
|BOE Display|||||||||||||

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Self-r|
|Others|4,000,000,000.0|0 3,503,786,926.00|1,525,662,136.00|1,184,597,230.00|5,246,127.00|3,839,605,704.00|0.00%|0.00%|0.00|0.00|0.00%||
|||||||||||||aised|
|Total|169,729,000,000.0|0 33,009,560,176.00|24,899,041,398.00|13,774,851,699.00|5,369,202.00|44,128,380,672.00|--|--|318,953,638.00|261,543,318.00|0.00%|--|

 17. Intangible Assets
(1) List of Intangible Assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Patent right and proprietary||||
|Item|Land use right||Computer software|Others|Total|
|||technology||||
|I. Original book value||||||
|1. Opening balance|1,766,107,603.00|1,770,732,948.00|695,490,721.00|324,964,999.00|4,557,296,271.00|
|2. Increased amount of the Period|587,724.00|22,226,274.00|32,581,277.00|0.00|55,395,275.00|
|(1) Purchase|172,500.00|0.00|28,655,177.00|0.00|28,827,677.00|
|(2) Internal R&D|0.00|0.00|0.00|0.00|0.00|
|(3) Enterprise combination increase|0.00|0.00|0.00|0.00|0.00|
|(4) Transfer of construction in progress|415,224.00|22,226,274.00|3,926,100.00|0.00|26,567,598.00|
|3. Decreased amount of the Period|0.00|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|0.00|
|4. Closing balance|1,766,695,327.00|1,792,959,222.00|728,071,998.00|324,964,999.00|4,612,691,546.00|
|II. Accumulated amortization||||||
|1. Opening balance|138,014,289.00|864,354,618.00|373,253,291.00|44,329,233.00|1,419,951,431.00|
|2. Increased amount of the Period|17,756,064.00|83,489,092.00|35,064,966.00|9,833,385.00|146,143,507.00|
|(1) Withdrawal|17,756,064.00|83,489,092.00|35,064,966.00|9,833,385.00|146,143,507.00|

|||||||
|-|-|-|-|-|-|
|3. Decreased amount of the Period|0.00|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|0.00|
|4. Closing balance|155,770,353.00|947,843,710.00|408,318,257.00|54,162,618.00|1,566,094,938.00|
|III. Depreciation reserves||||||
|1. Opening balance|0.00|0.00|471,453.00|0.00|471,453.00|
|2. Increased amount of the Period|0.00|0.00|0.00|0.00|0.00|
|(1) Withdrawal|0.00|0.00|0.00|0.00|0.00|
|3. Decreased amount of the Period|0.00|0.00|0.00|0.00|0.00|
|(1) Disposal|0.00|0.00|0.00|0.00|0.00|
|4. Closing balance|0.00|0.00|471,453.00|0.00|471,453.00|
|IV. Book value||||||
|1. Closing book value|1,610,924,974.00|845,115,512.00|319,282,288.00|270,802,381.00|3,046,125,155.00|
|2. Opening book value|1,628,093,314.00|906,378,330.00|321,765,977.00|280,635,766.00|3,136,873,387.00|

 The proportion of the intangible assets formed from the internalR&D through the Company amount the balance of the intangible assets at the period-end was0.00%.
18. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB Yuan
||||
|-|-|-|
|Name of the invested units or events|||
||Opening balance|Closing balance|
|generating goodwill|||
|Beijing Yinghe Century Co., Ltd.|42,940,434.00|42,940,434.00|
|Gaochuang (Suzhou) Electronics Co., Ltd.|8,562,464.00|8,562,464.00|
|Beijing BOE Optoelectronics Technology|||
||4,423,876.00|4,423,876.00|
|Co., Ltd.|||
|BOE Healthcare Co., Ltd.|146,460,790.00|146,460,790.00|
|Total|202,387,564.00|202,387,564.00|

 (2) Impairment Provision of Goodwill
Unit: RMB Yuan
||||
|-|-|-|
|Name of the invested units or events|||
||Opening balance|Closing balance|
|generating goodwill|||
|Beijing BOE Optoelectronics Technology|||
||4,423,876.00|4,423,876.00|
|Co., Ltd.|||
|Total|4,423,876.00|4,423,876.00|

 Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: See V.20.
19. Long-term Unamortized Expenses
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening||Amortizationamount|||
|Item||Increased amount||Decrease|Closing balance|
||balance|||||
|Cost of operating lease||||||
||8,554,720.00|1,920,600.00|1,022,576.00|0.00|9,452,744.00|
|assets improvement||||||
|Cost of construction and||||||
||128,813,237.00|0.00|7,685,112.00|0.00|121,128,125.00|
|use of public facilities||||||
|Others|207,523,270.00|11,248,964.00|35,280,125.00|0.00|183,492,109.00|
|Total|344,891,227.00|13,169,564.00|43,987,813.00|0.00|314,072,978.00|

20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets impairment|||||
||162,969,986.00|38,243,618.00|150,713,954.00|36,340,807.00|
|provision|||||
|Unrealized internal sales|||||
||0.00|0.00|0.00|0.00|
|gain and loss|||||
|Deductible losses|60,812,430.00|15,203,107.00|61,989,130.00|15,497,284.00|
|Differences of|||||
|depreciation and|68,006,912.00|10,201,038.00|19,830,095.00|2,974,516.00|
|amortization|||||
|Evaluation increment of|||||
|subsidiary with|||||
||150,441,603.00|37,610,401.00|153,218,516.00|38,304,629.00|
|immovable property|||||
|investment|||||
|Advance from customers|123,484,850.00|18,522,728.00|349,621,212.00|52,443,182.00|
|Others|249,147,290.00|40,868,140.00|65,184,744.00|13,273,757.00|
|Total|814,863,071.00|160,649,032.00|800,557,651.00|158,834,175.00|

 (2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Taxable temporary|Deferred income tax|Taxable temporary|Deferred income tax|
||differences|liabilities|differences|liabilities|
|Asset evaluation|||||
|increment of business|||||
||1,123,026,559.00|277,450,548.00|1,129,240,231.00|282,310,058.00|
|combination not under|||||
|the same control|||||
|Change in fair value of|||||
|available-for-sale|28,168,564.00|4,647,813.00|27,983,239.00|4,617,234.00|
|financial assets|||||
|Depreciation of fixed|||||
||864,023,931.00|132,092,410.00|699,513,159.00|107,479,271.00|
|assets|||||

||||||
|-|-|-|-|-|
|Changes in fair value of|||||
||3,205,112.00|555,778.00|356,147.00|89,037.00|
|financial products|||||
|Long-term equity|||||
||360,863,027.00|54,129,454.00|360,863,027.00|54,129,454.00|
|investment|||||
|Bond interest|71,376,827.00|10,706,524.00|71,221,140.00|10,683,171.00|
|Others|0.00|0.00|10,749,594.00|1,612,439.00|
|Total|2,450,664,020.00|479,582,527.00|2,299,926,537.00|460,920,664.00|

 (3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Mutual set-off amount of|Amount of deferred||Amount of deferred|
||||Mutual set-off amount of||
||deferred income tax|income tax assets or||income tax assets or|
|Item|||deferred income tax||
||assets and liabilities at|liabilities after off-set at||liabilities after off-set at|
||||assets and liabilities||
||the period-end|the period-end||the period-begin|
|Deferred income tax||149,942,508.00||146,538,565.00|
||10,706,524.00||12,295,610.00||
|assets|||||
|Deferred income tax||468,876,003.00||448,625,054.00|
||10,706,524.00||12,295,610.00||
|liabilities|||||

(4) List of unrecognized deferred income tax assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible temporary difference|5,176,885,370.00|4,878,250,340.00|
|Deductible losses|2,345,727,319.00|1,797,146,855.00|
|Total|7,522,612,689.00|6,675,397,195.00|

（5）Deductible losses of unrecognized deferred income tax assets will due the following years
|||||
|-|-|-|-|
|Years|Closing amount|Opening amount|Notes|
|Y 2017|0.00|284,484,489.00|Naught|
|Y 2018|122,337,278.00|158,349,778.00|Naught|
|Y 2019|182,914,138.00|278,873,005.00|Naught|
|Y 2020|627,363,358.00|826,746,986.00|Naught|
|Y 2021|362,718,074.00|248,692,597.00|Naught|
|Y 2022|1,050,394,471.00|0.00|Naught|
|Total|2,345,727,319.00|1,797,146,855.00|--|

21. Other Non-current Assets
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Prepayment for construction|1,192,928,184.00|1,056,333,969.00|
|Prepayment for procurement of fixed|||
||2,592,932,464.00|2,447,632,012.00|
|assets|||
|Excess VAT paid|204,866,545.00|199,580,943.00|
|The VAT collection of imported equipment|0.00|354,553,214.00|
|Others|192,148,646.00|81,433,078.00|
|Total|4,182,875,839.00|4,139,533,216.00|

 22. Short-term Loans
(1) Category of Short-term Loans
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loan|479,707,040.00|510,407,952.00|
|Guaranteed loan|4,064,640,000.00|2,913,540,000.00|
|Credit loan|1,544,485,954.00|1,493,017,555.00|
|Total|6,088,832,994.00|4,916,965,507.00|

 There was no overdue loan for the Company at the period-end.
23. Notes Payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Trade acceptance|418,356,746.00|524,560,235.00|
|Bank acceptance bill|108,284,321.00|115,702,226.00|
|Total|526,641,067.00|640,262,461.00|

 There was no overdue notes payable for the Company at the period-end.
24. Accounts Payable
(1) List of Accounts Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Account payable of related party|11,081,219.00|5,937,474.00|
|Account payable of third party|15,204,530,021.00|13,829,678,191.00|
|Total|15,215,611,240.00|13,835,615,665.00|

 There was no significant accounts payable aging over one year for the Company at the period-end.
25. Advance from Customers
(1) List of Advance from Customers
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Advance from customers of related party|52,761.00|0.00|
|Advance from customers of third party|856,993,559.00|548,942,714.00|
|Total|857,046,320.00|548,942,714.00|

 There was no significant advance from customers aging over one year for the Company at the period-end.
26. Payroll Payable
(1) List of Payroll Payable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|I. Short-term salary|1,497,068,752.00|4,276,871,774.00|4,434,396,455.00|1,339,544,071.00|
|II. Post-employment||321,134,994.00|319,905,448.00|31,976,100.00|
|benefit-defined|30,746,554.00||||
|contribution plans|||||
|III. Termination benefits|15,036,960.00|567,843.00|627,917.00|14,976,886.00|
|IV. Other benefits due|||||
||0.00|0.00|0.00|0.00|
|within one year|||||
|Total|1,542,852,266.00|4,598,574,611.00|4,754,929,820.00|1,386,497,057.00|

(2) List of Short-term Salary
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Salary, bonus,||3,532,391,747.00|3,655,613,870.00||
||1,178,080,434.00|||1,054,858,311.00|
|allowance, subsidy|||||
|2. Employee welfare|0.00|319,919,833.00|319,919,833.00|0.00|
|3. Social insurance|66,779,153.00|131,721,222.00|164,838,033.00|33,662,342.00|
|Of which: 1. Medical||107,058,055.00|139,732,108.00||
||63,337,669.00|||30,663,616.00|
|insurance premiums|||||
|Work-related injury|||||
||1,631,421.00|12,984,099.00|12,887,917.00|1,727,603.00|
|insurance|||||
|Maternity insurance|1,810,063.00|11,679,068.00|12,218,008.00|1,271,123.00|
|4. Housing fund|20,607,756.00|159,560,632.00|179,981,104.00|187,284.00|
|5. Labor union budget|||||
|and employee education|214,936,641.00|84,520,381.00|69,594,680.00|229,862,342.00|
|budget|||||
|6. Employee bonus and|||||
||7,282,591.00|0.00|0.00|7,282,591.00|
|welfare fund|||||
|7. Other|9,382,177.00|48,757,959.00|44,448,935.00|13,691,201.00|
|Total|1,497,068,752.00|4,276,871,774.00|4,434,396,455.00|1,339,544,071.00|

 (3) List of Drawing Scheme
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Basic pension benefits|24,629,016.00|303,159,679.00|298,501,512.00|29,287,183.00|
|2.Unemployment||12,958,963.00|13,265,462.00|912,663.00|
||1,219,162.00||||
|insurance|||||
|3. Annuity|4,898,376.00|5,016,352.00|8,138,474.00|1,776,254.00|
|Total|30,746,554.00|321,134,994.00|319,905,448.00|31,976,100.00|

27. Taxes Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|10,652,813.00|6,826,361.00|
|Corporate income tax|453,659,547.00|342,021,556.00|
|Personal income tax|24,658,365.00|28,431,907.00|
|Urban maintenance and construction tax|90,292,723.00|114,056,922.00|
|Education surcharge and local education|||
||65,204,040.00|81,471,180.00|
|surcharge|||
|Others|53,834,820.00|83,543,968.00|
|Total|698,302,308.00|656,351,894.00|

 28. Interest Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loan interest of installment|||
|payment of interest and repay the due|422,492,569.00|421,434,181.00|
|capital|||
|Enterprise bond interest|88,027,397.00|246,821,918.00|
|Interest paid for short-term loans|41,026,202.00|8,102,649.00|
|Total|551,546,168.00|676,358,748.00|

 There was no overdue interest for the Company at the period-end.
29. Dividends Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Common stock dividends|1,063,292,009.00|9,651,170.00|
|Total|1,063,292,009.00|9,651,170.00|

 There was no significant dividends payable unpaid for over one year for the Company at the period-end.
30. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of the Account
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

||||
|-|-|-|
|Engineering and equipment|12,664,356,238.00|11,986,641,278.00|
|The VAT collection of imported equipment|722,274,338.00|1,019,532,634.00|
|Margin|374,435,224.00|295,916,263.00|
|Pre-withdrawal water and electricity &|||
||453,599,092.00|363,061,275.00|
|logistics freight|||
|External agency fee|18,747,749.00|39,629,069.00|
|Others|770,022,529.00|690,744,729.00|
|Total|15,003,435,170.00|14,395,525,248.00|

 There was no significant other accounts payable aging over one year for the Company at the end of period-end.
31. Non-current Liabilities Due within 1 Year
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loans due within 1 year|8,020,891,786.00|3,576,759,308.00|
|Bonds payable due within 1 year|0.00|0.00|
|Long-term accounts payable due within 1|||
||1,728,296,707.00|107,477,627.00|
|year|||
|Total|9,749,188,493.00|3,684,236,935.00|

 32. Other Current Liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Quality assurance deposit|919,819,167.00|527,878,792.00|
|Others|16,356,143.00|5,104,682.00|
|Total|936,175,310.00|532,983,474.00|

 33. Long-term Loan
(1) Category of Long-term Loan
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Pledge loan|12,420,000.00|14,865,000.00|
|Mortgage loan|30,625,566,783.00|30,071,780,327.00|
|Credit loan|22,824,416,148.00|19,798,520,884.00|
|Total|53,462,402,931.00|49,885,166,211.00|

34. Bonds Payable
(1) Bonds Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|In 2016, BOE Technology Group Co., Ltd. public|||
||9,961,519,616.00|9,956,719,508.00|
|issued Corporate bond to the qualify investors (Phase I)|||
|Total|9,961,519,616.00|9,956,719,508.00|

 (2) Increase/Decrease of Bonds Payable (Excluding the Other Financial Instruments Classified as the Preference Shares, Perpetual Capital Securities of the Financial Liabilities)
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||5 years||||||||
|In 2016,|||||||||||
||||(Attached||||||||
|BOE|||||||||||
||||end of 3||||||||
|Technolo|||||||||||
||||years, the||||||||
|gy Group|||||||||||
||||issuer||||||||
|Co., Ltd.|||||||||||
||||increase||||||||
|public|||||||||||
||||coupon|10,000,00|9,956,719|||4,800,108||9,961,519|
|issued|100.00|3/21/2016||||0.00|0.00||0.00||
||||rate|0,000.00|,508.00|||.00||,616.00|
|Corporate|||||||||||
||||option||||||||
|bond to|||||||||||
||||and||||||||
|the|||||||||||
||||investors||||||||
|qualify|||||||||||
||||selling||||||||
|investors|||||||||||
||||back||||||||
|(Phase I)|||||||||||
||||options||||||||
|||||10,000,00|9,956,719|||4,800,109||9,961,519|
|Total|--|--|--|||0.00|0.00||0.00||
|||||0,000.00|,508.00|||.00||,616.00|

 35. Long-term Payable
(1) Long-term Payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Financing lease|2,191,493,751.00|1,261,446,565.00|

36. Accrued Liabilities
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Reasons|
|External guaranty|0.00|0.00|Naught|
|Pending litigation|0.00|0.00|Naught|
|Product quality||||
||0.00|0.00|Naught|
|assurance||||
|Restructuring||||
||0.00|0.00|Naught|
|obligations||||
||||In 2009, the Group ceased producing several products and stopped|
|Loss contract to|||fulfilling the purchase contract related to production. Due to the|
||16,457,010.00|16,457,010.00||
|be executed|||indemnity incurred accordingly, the Group withdrew the relevant|
||||estimated liabilities according to reasonable estimation of losses.|
|Others|0.00|0.00|Naught|
|Total|16,457,010.00|16,457,010.00|--|

37. Deferred Revenue
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Reason|
|Government|||||Government|
||2,494,122,929.0|0 164,040,012.00|225,889,448.00|2,432,273,493.00||
|subsidies|||||subsidies|
|Total|2,494,122,929.0|0 164,040,012.00|225,889,448.00|2,432,273,493.00|--|

Item involving government subsidies:
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Amount||||
||||recorded into|Amount recorded||Related to|
|||Amount of|||||
|Item|Opening balance||non-operating|into other income|Closing balance|assets/relate|
|||newly subsidy|||||
||||income in|in Report Period||d income|
||||Report Period||||
|The 8.5th Generation of||||||Related to|
||628,751,552.00|0.00|0.00|85,857,717.00|542,893,835.00||
|TFT-LCD Project||||||assets|
|The 6th Generation of||||||Related to|
||82,825,596.00|0.00|0.00|34,697,051.00|48,128,545.00||
|TFT-LCD Project||||||assets|
|The 10.5th Generation of||||||Related to|
||369,744,100.00|0.00|0.00|0.00|369,744,100.00||
|TFT-LCD Project||||||assets|
|Government subsidy for|||||||
|||||||Related to|
|other scientific research|1,258,696,780.00|5,126,170.00|0.00|104,298,138.00|1,159,524,812.00||
|||||||assets|
|projects|||||||
|Government subsidy for||||||Related to|
||154,104,901.00|158,913,842.00|0.00|1,036,542.00|311,982,201.00||
|other scientific research||||||income|

||||||||
|-|-|-|-|-|-|-|
|projects|||||||
|Total|2,494,122,929.00|164,040,012.00|0.00|225,889,448.00|2,432,273,493.00|--|

 38. Other Non-current Liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Convertible creditor's right|3,944,502,816.00|3,823,719,309.00|
|Equity investment with redemption items|3,358,800,000.00|3,336,400,000.00|
|The VAT collection of imported equipment|0.00|354,553,214.00|
|Others|89,478,981.00|102,000,000.00|
|Total|7,392,781,797.00|7,616,672,523.00|

 39. Share Capital
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/decrease (+/-)||||||
|||||Capitalized||||
|Item|Opening balance|New shares|||||Closing balance|
||||Bonus shares|Capital|Others|Subtotal||
|||issued||||||
|||||reserves||||
|The sum of|35,153,067,743.00||||||35,153,067,743.00|
|||0.00|0.00|0.00|0.00|0.00||
|shares||||||||

40. Capital Surplus
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium|38,115,575,868.00|0.00|0.00|38,115,575,868.00|
|Other capital reserves|915,781,661.00|201,412,100.00|3,534,195.00|1,113,659,566.00|
|Total|39,031,357,529.00|201,412,100.00|3,534,195.00|39,229,235,434.00|

 41. Treasury Stock
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Repurchase of stock by|||||
||314,350,824.00|351,962,143.00|0.00|666,312,967.00|
|shareholders|||||
|Total|314,350,824.00|351,962,143.00|0.00|666,312,967.00|

42. Other Comprehensive Income
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Reporting period||||||
||||Less: recorded in other|||||
|||Amount before|||Attributable to|Attributable to||
||||comprehensive income in|Less: Income||||
|Item|Opening balance||||||Closing balance|
|||income tax in current|prior period and||owners of the|minority shareholders||
|||||tax expense||||
|||period|transferred to profit or loss||Company after tax|after tax||
||||in current period|||||
|I. Other comprehensive income cannot|||||0.00|||
|be reclassified into profits and losses in|0.00|0.00|0.00|0.00||0.00|0.00|
|future||||||||
|Of which: changes in net assets and|||||0.00|||
|liabilities of recalculated defined benefit|0.00|0.00|0.00|0.00||0.00|0.00|
|plans||||||||
|Share of other comprehensive income of|||||0.00|||
|investees measured by the equity||||||||
||0.00|0.00|0.00|0.00||0.00|0.00|
|method not reclassifiable to profit or||||||||
|loss||||||||
|II. Other comprehensive reclassified|||||9,368,196.00|||
||75,718,703.00|-6,286,675.00|7,172,603.00|542,688.00||-23,370,162.00|85,086,899.00|
|into profits or losses||||||||
|Of which: other comprehensive income|||||0.00|||
|as per equity method recognized into|68,563,516.00|0.00|0.00|0.00||0.00|68,563,516.00|
|profit and loss in future||||||||
|Profits or losses of change in fair value|||||-2,155,092.00|||
||107,485,863.00|5,222,341.00|7,172,603.00|542,688.00||-337,858.00|105,330,771.00|
|of available-for-sale financial assets||||||||
|Of which: other comprehensive income|0.00|0.00|0.00|0.00|0.00|0.00|0.00|

|||||||||
|-|-|-|-|-|-|-|-|
|as per equity method recognized into||||||||
|profit and loss in future||||||||
|Effective hedging gains and losses on|||||0.00|||
||0.00|0.00|0.00|0.00||0.00|0.00|
|cash flows||||||||
|Converted difference of the foreign|||||11,523,288.00|||
||-100,330,676.00|-11,509,016.00|0.00|0.00||-23,032,304.00|-88,807,388.00|
|currency financial statement||||||||
|Total|75,718,703.00|-6,286,675.00|7,172,603.00|542,688.00|9,368,196.00|-23,370,162.00|85,086,899.00|

 43. Surplus Reserves
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus reserves|453,468,546.00|0.00|0.00|453,468,546.00|
|Discretionary surplus reserves|289,671,309.00|0.00|0.00|289,671,309.00|
|Reserve fund|0.00|0.00|0.00|0.00|
|Enterprise expansion fund|0.00|0.00|0.00|0.00|
|Others|0.00|0.00|0.00|0.00|
|Total|743,139,855.00|0.00|0.00|743,139,855.00|

44. Retained Earnings
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Opening balance of retained profits before|||
||4,011,055,487.00|2,630,912,286.00|
|adjustments|||
|Total opening balance of retained profits before|||
||0.00|0.00|
|adjustments (Increase+，decrease-)|||
|Opening balance of retained profits after|4,011,055,487.00||
|||2,630,912,286.00|
|adjustments|||
|Add: Net profit attributable to owners of the|||
||4,302,605,600.00|-516,472,418.00|
|Company|||
|Less: Withdrawal of statutory surplus reserves|0.00|0.00|
|Withdrawal of discretional surplus reserves|0.00|0.00|
|Withdrawal of generic risk reserve|0.00|0.00|
|Dividend of common stock payable|1,046,578,276.00|351,530,677.00|
|Dividend of common stock transfer into share|||
||0.00|0.00|
|capital|||
|Closing retained profits|7,267,082,811.00|1,762,909,191.00|

 45. Revenues and Operating Costs
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting Period||Same period of last year||
|Item|||||
||Sales revenue|Cost of sales|Sales revenue|Cost of sales|
|Main operations|43,423,735,624.0|0 31,382,589,960.00|24,881,976,506.00|22,771,274,960.00|
|Other operations|1,181,292,371.0|0 852,676,629.00|1,566,334,211.00|1,215,816,198.00|
|Total|44,605,027,995.0|0 32,235,266,589.00|26,448,310,717.00|23,987,091,158.00|

 46. Business Tax and Surcharges
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Urban maintenance and construction tax|101,059,387.00|45,553,431.00|
|Education Surcharge|73,037,501.00|33,002,047.00|
|Property tax|110,136,739.00|0.00|
|Land use tax|20,626,843.00|0.00|

||||
|-|-|-|
|Vehicles and vessels use tax|68,666.00|0.00|
|Stamp duty|38,902,335.00|0.00|
|Others|11,869,521.00|14,374,703.00|
|Total|355,700,992.00|92,930,181.00|

 47. Sale Expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Labor cost|224,486,520.00|143,741,326.00|
|Logistic transport fees|173,832,751.00|126,171,928.00|
|Product quality assurance|591,844,446.00|216,781,885.00|
|Others|238,397,146.00|209,521,315.00|
|Total|1,228,560,863.00|696,216,454.00|

 48. Administration Expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Labor cost|939,585,805.00|560,645,612.00|
|Depreciation and amortization|217,075,708.00|210,067,005.00|
|R&D expenses|951,137,953.00|738,474,486.00|
|Maintenance cost|412,714,741.00|299,838,449.00|
|Others|532,147,368.00|502,064,883.00|
|Total|3,052,661,575.00|2,311,090,435.00|

 49. Financial Expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Interest expenses|1,231,529,637.00|822,841,814.00|
|Interest income|-376,820,432.00|-248,305,319.00|
|Net amount of exchange loss (gains:|||
||180,783,689.00|645,198,892.00|
|negative)|||
|Others|63,620,288.00|15,143,623.00|
|Total|1,099,113,182.00|1,234,879,010.00|

50. Asset Impairment Loss
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|I. Bad debt loss|214,709,584.00|-16,280,180.00|
|II. Inventory falling price loss|1,208,736,546.00|531,103,126.00|
|Total|1,423,446,130.00|514,822,946.00|

 51. Gains and Losses from Changes in Fair Value
Unit: RMB Yuan
||||
|-|-|-|
|Sources of changes in fair value gains|Reporting period|Same period of last year|
|Financial assets measured by fair value and|||
|the changes be included in the current|0.00|4,623,937.00|
|profits and losses|||
|Of which, gains on the changes in the|||
|fair value of derivative financial|0.00|0.00|
|instruments|||
|Financial liabilities measured by fair value|||
|and the changes included in the current|0.00|0.00|
|gains and losses|||
|Investment property adopted fair value|||
||0.00|0.00|
|measurement mode|||
|Total|0.00|4,623,937.00|

 52. Investment Income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Long-term equity investment income|||
||-13,690,555.00|-11,180,961.00|
|accounted by equity method|||
|Investment income arising from disposal of|||
||0.00|0.00|
|long-term equity investments|||
|Investment income received from financial|||
|assets measured by fair value and the changes|||
||0.00|0.00|
|be included in the current profits and losses|||
|during holding period|||
|Investment income received from disposal of|||
|financial assets measured by fair value and the|0.00|-13,042,225.00|
|changes be included in the current profits and|||

||||
|-|-|-|
|losses during holding period|||
|Investment income of held to maturity|||
||0.00|0.00|
|investment during holding period|||
|Investment income received from holding of|||
||12,148,223.00|9,498,220.00|
|available-for-sale financial assets|||
|Investment income received from disposal of|||
||0.00|0.00|
|available-for-sale financial assets|||
|After losing control, gain from the remaining|||
||0.00|0.00|
|stock remeasured at fair value|||
|Investment income from wealth management|||
||20,704,483.00|79,719,288.00|
|products on maturity|||
|Total|19,162,151.00|64,994,322.00|

 53. Other Income
Unit: RMB Yuan
||||
|-|-|-|
|Sources of other income|Reporting period|Same period of last year|
|Government subsidy related to daily|||
||275,302,864.00|0.00|
|activities of enterprises|||

54. Non-operating Gains
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting Period|Same period of last year||
||||non-recurring gains and losses|
|Total gains from disposal of|2,597,163.00|4,788,368.00||
||||2,597,163.00|
|non-current assets||||
|Including: Gains from disposal||||
||2,597,163.00|1,135,331.00|2,597,163.00|
|of fixed assets||||
|Gains from disposal of||||
||0.00|3,653,037.00|0.00|
|intangible assets||||
|Debt restructuring|0.00|0.00|0.00|
|income from non-monetary||||
||0.00|0.00|0.00|
|assets exchange||||
|Accepting donations|0.00|0.00|0.00|
|Government subsidies|31,062,835.00|1,660,030,393.00|31,062,835.00|
|Others|20,846,580.00|128,914,121.00|20,846,580.00|
|Total|54,506,578.00|1,793,732,882.00|54,506,578.00|

Government subsidies recorded into current profits and losses
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether subsidies|||||
||||||Special|||Related to|
|||Distribution||influence the||Reporting|Same period of||
|Item|Distribution entity||Nature||subsidy|||assets/related|
|||reason||current profits and||Period|last year||
||||||or not|||income|
|||||losses or not|||||
||||Due to engaged in special industry that the state||||||
|Project loan|Commerce|||||||Related to|
|||Subsidy|encouraged and supported, gained subsidy (obtaining in|Yes|No|0.00|28,414,203.00||
|discount|Commission etc.|||||||assets|
||||line with the law and the regulations of national policy)||||||
||Administration||Subsidy gained due to confirming with local||||||
|Project loan||||||||Related to|
||Committee of the|Subsidy|government attracting investment and local supportive|Yes|No|0.00|601,136,000.00||
|discount||||||||income|
||Development Zone etc.||policy etc.||||||
|Government|||||||||
||Municipal People’s||Due to engaged in special industry that the state||||||
|subsidy for other||||||||Related to|
||Government, NDRC,|Subsidy|encouraged and supported, gained subsidy (obtaining in|Yes|No|0.00|186,900,867.00||
|scientific||||||||assets|
||Finance Bureau etc.||line with the law and the regulations of national policy)||||||
|research projects|||||||||
|Government|||||||||
||Municipal People’s||Due to engaged in special industry that the state||||||
|subsidy for other||||||||Related to|
||Government, NDRC,|Subsidy|encouraged and supported, gained subsidy (obtaining in|Yes|No|31,062,835.00|843,579,323.00||
|scientific||||||||income|
||Finance Bureau etc.||line with the law and the regulations of national policy)||||||
|research projects|||||||||
|Total|--|--|--|--|--|31,062,835.00|1,660,030,393.00|--|

55. Non-operating Expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Recorded in the amount of the|
|Item|Reporting Period|Same period of last year||
||||non-recurring gains and losses|
|Loss on disposal of non-current|21,855,086.00|2,257,689.00||
||||21,855,086.00|
|assets||||
|Including: Loss on disposal of||||
||21,383,716.00|2,257,689.00|21,383,716.00|
|fixed assets||||
|Losses from disposal of||||
||0.00|0.00|0.00|
|intangible assets||||
|Loss on debt reconstruction|0.00|0.00|0.00|
|Non-monetary asset exchange||||
||0.00|0.00|0.00|
|losses||||
|Donation|1,184,940.00|0.00|1,184,940.00|
|Others|1,386,611.00|3,619,242.00|1,386,611.00|
|Total|24,426,637.00|5,876,931.00|24,426,637.00|

 56. Income Tax Expense
(1) Lists of Income Tax Expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Current income tax expense|923,414,609.00|25,699,596.00|
|Deferred income tax expense|16,847,006.00|30,558,715.00|
|Total|940,261,615.00|56,258,311.00|

 (2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB Yuan
|||
|-|-|
|Item|Reporting Period|
|Total profits|5,534,823,620.00|
|Current income tax expense accounted by tax and relevant||
||830,223,543.00|
|regulations||
|Influence of different tax rate suitable to subsidiary|-34,851,494.00|
|Influence of income tax before adjustment|0.00|
|Influence of non taxable income|-2,874,323.00|

|||
|-|-|
|Influence of not deductable costs, expenses and losses|10,105,855.00|
|Influence of deductable losses of deferred income tax assets||
||32,420,254.00|
|derecognized used in previous period||
|Influence of deductible temporary difference or deductible losses||
||157,559,171.00|
|of deferred income tax assets derecognized in Reporting Period.||
|Making up the annual losses of previous years|-52,321,391.00|
|Income tax expense|940,261,615.00|

 57. Other Comprehensive Income
Refer to Note 42.
58. Information of Cash Flow Statement
(1) Other Cash Received Relevant to Operating Activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Interest income|248,295,788.00|161,872,743.00|
|Government subsidies related to income|243,760,365.00|1,288,275,799.00|
|Receiving cash from recycling waste and|||
||80,220,554.00|0.00|
|waste water|||
|Tender bond / performance bond received|38,191,239.00|35,509,926.00|
|Receiving a refund for the deposit|20,121,331.00|0.00|
|Exchange earning from carry-forward,|||
||187,772.00|521,087.00|
|repurchase|||
|Others|138,176,021.00|68,359,640.00|
|Total|768,953,070.00|1,554,539,195.00|

 (2) Other Cash Paid Relevant to Operating Activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Daily spending paid|2,496,459,880.00|2,203,273,931.00|
|Restrictive deposit in financial institutions|||
||200,676,652.00|219,615,038.00|
|increased|||
|Cash deposit|74,682,666.00|54,387,310.00|
|Bank service charges|24,698,890.00|10,978,187.00|

||||
|-|-|-|
|Others|24,351,220.00|391,096,551.00|
|Total|2,820,869,308.00|2,879,351,017.00|

 (3) Other Cash Received Relevant to Investment Activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Restrictive deposit in financial institutions|1,419,977,569.00||
|||0.00|
|recovered|||
|Interest income|111,642,364.00|137,545,845.00|
|Cash inflow from combination of|51,553,545.00||
|||657,102,662.00|
|subsidiary|||
|Tender shall / guarantee money for a bid|33,986,781.00|83,723,914.00|
|Government subsidies related to assets|24,491,476.00|2,000,000.00|
|Others|10,185,865.00|2,379,389.00|
|Total|1,651,837,600.00|882,751,810.00|

 (4) Other Cash Paid Relevant to Investment Activity
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Refund on bid/performance bond / safety|399,110,178.00||
|||27,752,918.00|
|construction bond|||
|Restrictive deposit in financial institutions|0.00||
|||1,278,387,586.00|
|increased|||
|Others|18,883,785.00|110,127,607.00|
|Total|417,993,963.00|1,416,268,111.00|

 (5) Other Cash Received Relevant to Financing Activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Bill discounting|98,452,460.00|0.00|
|Scrappy interest of dividends|19.00|379.00|
|Total|98,452,479.00|379.00|

(6) Other Cash Paid Relevant to Financing Activities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Payment for repurchase of stock|351,381,074.00|0.00|
|Restrictive deposit in financial institutions|||
||157,510,760.00|0.00|
|increased|||
|Paid guarantees|120,000,000.00|0.00|
|Bank service charges|20,421,484.00|34,652,203.00|
|Total|649,313,318.00|34,652,203.00|

 59. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Reporting Period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated from operating|||
||--|--|
|activities|||
|Net profit|4,594,562,005.00|-587,503,568.00|
|Add: Provision for impairment of assets|1,423,446,130.00|514,822,946.00|
|Depreciation of fixed assets, of oil-gas assets, of productive biological|5,464,374,990.00||
|||4,809,870,880.00|
|assets|||
|Amortization of intangible assets|143,041,546.00|122,450,569.00|
|Long-term unamortized expenses|42,667,113.00|30,360,640.00|
|Losses on disposal of fixed assets, intangible assets and other long-term|||
||-9,952,741.00|-3,840,860.00|
|assets (gains: negative)|||
|Loss on retirement of fixed assets (gains: negative)|-294,151.00|-684,336.00|
|Losses from variation of fair value (gains: negative)|0.00|-4,623,937.00|
|Financial cost (gains: negative)|1,472,353,270.00|1,234,879,010.00|
|Investment loss (gains: negative)|-19,162,151.00|-64,994,322.00|
|Decrease in deferred income tax assets (gains: negative)|-3,403,943.00|16,083,984.00|
|Increase in deferred income tax liabilities|||
||20,250,949.00|14,474,731.00|
|(“-” means decrease)|||
|Decrease in inventory (gains: negative)|-2,985,235,404.00|-1,003,386,330.00|
|Decrease in accounts receivable from operating activities (gains: negative)|-4,224,525,906.00|-4,079,163,191.00|
|Increase in payables from operating activities (decrease: negative)|4,919,933,010.00|2,117,729,336.00|

||||
|-|-|-|
|Others|-199,463,451.00|-382,388,597.00|
|Net cash flows generated from operating activities|10,638,591,266.00|2,734,086,955.00|
|2. Significant investing and financing activities without involvement of|||
||--|--|
|cash receipts and payments|||
|Conversion of debt into capital|0.00|0.00|
|Company bonus convertible due within one year|0.00|0.00|
|Fix assets under financing lease|0.00|0.00|
|3. Net increase in cash and cash equivalents:|--|--|
|Closing balance of cash|42,798,317,023.00|40,036,041,613.00|
|Less: Opening balance of cash|49,354,810,388.00|36,182,738,217.00|
|Add: Closing balance of cash equivalents|0.00|0.00|
|Less: Opening balance of cash equivalents|0.00|0.00|
|Net increase in cash and cash equivalents|-6,556,493,365|3,853,303,396.00|

 There was no net cash paid/received from the acquisition/disposal of subsidiaries for the Company during the Reporting Period.（2）Net Cash paid of obtaining the subsidiary
|||
|-|-|
|Item|Amount|
|Cash or cash equivalent paid for enterprise combination|78,393,738.00|
|Of which:|--|
|Less: cash and cash equivalents held by subsidiary on purchase date|129,947,283.00|
|Of which:|--|
|Add: cash or cash equivalent paid for enterprise combination in||
||0.00|
|previous period||
|Of which:|--|
|Net Cash paid of obtaining the subsidiary|-51,553,545.00|

 (3) Cash and Cash Equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|42,798,317,023.00|49,354,810,388.00|
|Including: Cash on hand|237,047.00|707,796.00|
|Bank deposit on demand|42,521,903,389.00|49,170,616,669.00|
|Other monetary funds on demand|276,176,587.00|183,485,923.00|
|Payable of due from central bank|0.00|0.00|

||||
|-|-|-|
|Deposits in other banks|0.00|0.00|
|Call loans to banks|0.00|0.00|
|II. Cash and cash equivalents|0.00|0.00|
|Of which: Bond investment due within three|||
||0.00|0.00|
|months|||
|III. Closing balance of cash and cash|42,798,317,023.00|49,354,810,388.00|
|equivalents|||
|Including: the restricted cash and cash|||
|equivalents of the Company and the|0.00|0.00|
|subsidiaries of the Group used|||

60. Assets with Restricted Ownership and Right to Use
Refer to Section IV. 3.
61. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB Yuan
|||||
|-|-|-|-|
||Closing foreign currency||Closing convert to RMB Yuan|
|Item||Exchange rate||
||balance||balance|
|Monetary capital|--|--|21,556,733,062.00|
|Including: USD|2,944,777,015.00|6.7744|19,949,097,408.00|
|EUR|370,592.00|7.7496|2,871,943.00|
|HKD|476,110,628.00|0.8679|413,225,936.00|
|JPY|19,359,012,220.00|0.0605|1,170,929,854.00|
|GBP|397.00|8.8144|3,502.00|
|MYR|3,804.00|1.5779|6,002.00|
|TWD|42,736,876.00|0.2224|9,505,752.00|
|KRW|1,052,006,352.00|0.0059|6,234,190.00|
|SGD|504,844.00|4.9135|2,480,549.00|
|SF|710.00|7.0888|5,033.00|
|Cruzeiro|652,656.00|2.0502|1,338,081.00|
|INR|9,877,019.00|0.1048|1,369,503.00|
|Accounts receivable|--|--|8,145,892,601.00|
|Including: USD|1,164,275,604.00|6.7744|7,887,282,373.00|
|EUR|659,878.00|7.7496|5,113,791.00|

|||||
|-|-|-|-|
|JPY|2,039,858,170.00|0.0605|123,411,419.00|
|GBP|4,403,832.00|8.8144|38,817,137.00|
|Long-term loan|--|--|25,937,129,826.00|
|Including: USD|3,828,697,719.00|6.7744|25,937,129,826.00|
|EUR|0.00|0.00|0.00|
|HKD|0.00|0.00|0.00|

 (2) Note to Oversea Entities Including: for Significant Oversea Entities, Shall Disclose Main Operating Place, Recording Currency and Selection Basis, if there Are Changes into Recording Currency, Shall Also Disclose the Reason.
□ Applicable√ Not applicable
VIII. Change of Consolidation Scope
In the Reporting Period, BOE has incorporated five new subsidiaries: Mianyang BOE Optoelectronics Co., Ltd., Beijing BOE Yiyun Technology Co., Ltd., BOE Brazil Consulting Service Co., Ltd., BOE Regenerative Medical Technologies Co. Ltd. and Beijing BOE Health Technology Co., Ltd. BOE holds62.5%,51%,100%,100% and100% of their shares respectively.
In the Reporting Period, to strengthen the smart energy system business, BOE has taken over Huanda Trading (Hebei) Co., Ltd., Juhui New Energy (Pinghu) Co., Ltd., Juhui New Energy (Shaoxing) Co., Ltd. and Dinghui New Energy (Zhuji) Co., Ltd. BOE holds100% of their shares.
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) The Structure of the Enterprise Group
|||||||
|-|-|-|-|-|-|
||Main operating||Holding percentage (%)|||
||place/|||||
|Name||Nature of business|||Way of gaining|
||Registration||Directly|Indirectly||
||place|||||
|Beijing BOE||||||
|Optoelectronics||Research, development, design and||||
||Beijing, China||82.49%|17.51%|Investment|
|Technology Co.,||manufacture of TFT-LCD||||
|Ltd.||||||
|Chengdu BOE|||||Business|
|Optoelectronics|Chengdu,||||combination not|
|||R&D, production and sales of TFT-LCD|100.00%|0.00%||
|Technology Co.,|China||||under the same|
|Ltd.|||||control|
|Hefei BOE|||||Business|
||Hefei, China|R&D, production and sales of TFT-LCD|100.00%|0.00%||
|Optoelectronics|||||combination not|

|||||||
|-|-|-|-|-|-|
|Technology Co.,|||||under the same|
|Ltd.|||||control|
|Beijing BOE||||||
|||Development of TFT-LCD, manufacture and||||
|Display Technology|Beijing, China||97.17%|2.83%|Investment|
|||sale of LCD||||
|Co., Ltd.||||||
|Hefei Xinsheng|||||Business|
|||Investment, construction, R&D, production||||
|Optoelectronics|||||combination not|
||Hefei, China|and sales of the relevant products of thin film|84.59%|0.03%||
|Technology Co.,|||||under the same|
|||transistor LCD and its auxiliary products||||
|Ltd.|||||control|
|Ordos Yuansheng||||||
|||Manufacture and sales of AM-OLED products||||
|Optoelectronics Co.,|Ordos, China||100.00%|0.00%|Investment|
|||and auxiliary products||||
|Ltd.||||||
|Chongqing BOE|||||Business|
|||Investment, construction, R&D, production||||
|Optoelectronics|Chongqing,||||combination not|
|||and sales of the relevant products of thin film|100.00%|0.00%||
|Technology Co.,|China||||under the same|
|||transistor LCD and its auxiliary products||||
|Ltd.|||||control|
|Fuzhou BOE|||||Business|
|||Investment, construction, R&D, production||||
|Optoelectronic|||||combination not|
||Fuzhou, China|and sales of the relevant products of thin film|68.52%|0.00%||
|Technology Co.,|||||under the same|
|||transistor LCD and its auxiliary products||||
|Ltd.|||||control|
|Beijing BOE Video||Manufacture of LCD TV, LCD; technology||||
|Technology Co.,|Beijing, China|development of terminal products and systems|100.00%|0.00%|Investment|
|Ltd.||such as TFT-LCD display and TV||||
|Beijing BOE||||||
|||Manufacture and sale of vacuum electronic||||
|Vacuum Electronics|Beijing, China||55.00%|0.00%|Investment|
|||products||||
|Co., Ltd.||||||
|Beijing BOE||||||
|Vacuum Technology|Beijing, China|Manufacture and sale of electronic tubes|100.00%|0.00%|Investment|
|Co., Ltd.||||||
|Beijing BOE||||||
|Special Display||Development of display products and sale of||||
||Beijing, China||100.00%|0.00%|Investment|
|Technology Co.,||electronic products||||
|Ltd.||||||
|||Development and research of real estate,||||
|Beijing Yinghe||||||
||Beijing, China|motor vehicles public parking service; market|100.00%|0.00%|Investment|
|Century Co., Ltd.||||||
|||research||||
|BOE||||||
|Optoelectronics||Development and manufacture of backlight||||
||Suzhou, China||94.77%|0.00%|Investment|
|Technology Co.,||and related parts and components for LCD||||
|Ltd.||||||
|BOE Hyundai LCD|Beijing, China|Development, manufacture and sale of liquid|75.00%|0.00%|Investment|

|||||||
|-|-|-|-|-|-|
|(Beijing) Display||display for mobile termination||||
|Technology Co.,||||||
|Ltd.||||||
|BOE (Hebei)||||||
||Langfang,|Manufacture and sale of mobile flat screen||||
|Mobile Technology|||100.00%|0.00%|Investment|
||China|display technical products and related services||||
|Co., Ltd.||||||
|Beijing BOE||||||
|||Sale of computer software and hardware, the||||
|Multimedia||||||
||Beijing, China|numeral regards the audio frequency|100.00%|0.00%|Investment|
|Technology Co.||||||
|||technology||||
|Ltd.||||||
|Beijing BOE Energy||||||
|||Solar cell, photovoltaic system, wind power||||
|Technology Co.,|Beijing, China||100.00%|0.00%|Investment|
|||system and solar thermal system||||
|Ltd.||||||
|Beijing BOE Smart||Technology promotion, property management,||||
||Beijing, China||100.00%|0.00%|Investment|
|Commerce Co., Ltd.||and sales of electronic products||||
|Beijing||||||
|Zhongxiangying||Technology promotion, property management,||||
||Beijing, China||100.00%|0.00%|Investment|
|Technology Co.,||and sales of electronic products||||
|Ltd.||||||
|Erdos Haosheng||||||
|Energy Investment|Ordos, China|Energy investment|20.00%|80.00%|Investment|
|Co., Ltd.||||||
|Beijing BOE||Processing, manufacturing and sales of||||
|Semi-conductor Co.,|Beijing, China|precision electronic components, and|80.77%|0.00%|Investment|
|Ltd.||semi-conductor devices||||
||Hong Kong,|||||
|BOE||Design, manufacturing and sales of||||
||China / Virgin|||||
|Optoelectronics||electronic-information industry related|100.00%|0.00%|Investment|
||Islands,|||||
|Holding Co., Ltd||products, investment and financing businesses||||
||British|||||
||||||Business|
|Beijing Asahi||||||
|||Sales of TV bracket glass rod and CTV|||combination not|
|Electronic Materials|Beijing, China||100.00%|0.00%||
|||low-melting-point solder glass|||under the same|
|Co., Ltd.||||||
||||||control|
||||||Business|
|BOE Healthcare||Investment management and project|||combination not|
||Beijing, China||100.00%|0.00%||
|Co., Ltd.||investment|||under the same|
||||||control|
||||||Business|
|Beijing•Matsushita||Color TV set, Display tube and materials of|||combination not|
||Beijing, China||88.80%|0.00%||
|Color CRT Co., Ltd.||color RPTV projection tube|||under the same|
||||||control|

|||||||
|-|-|-|-|-|-|
||||||Business|
|Hefei BOE Display||||||
|||Investment, R & D and production of products|||combination not|
|Technology Co.,|Hefei, China||6.70%|0.00%||
|||related to TFT-LCD and the supporting facility|||under the same|
|Ltd.||||||
||||||control|
|Beijing BOE||||||
|Technology||Development, transfer, consulting and service||||
||Beijing, China||100.00%|0.00%|Investment|
|Development Co.,||of technology||||
|Ltd.||||||
|BOE Intelligent||Development, transfer, consulting, service and||||
||Beijing, China||100.00%|0.00%|Investment|
|technology Co., Ltd.||promotion of technology||||
|Hefei BOE Zhuoyin||Investment, construction, R&D, production||||
|Technology Co.,|Hefei, China|and sales of products related to OLED display|60.06%|0.00%|Investment|
|Ltd.||device and auxiliary products||||
|||Development, construction, property||||
|||management and supporting service of||||
|||industrial plants and supporting facilities;||||
|Beijing BOE Real||||||
||Beijing, China|information consulting of real estate; lease of|70.00%|0.00%|Investment|
|Estate Co., Ltd.||||||
|||commercial facilities, commercial attendants||||
|||and the supporting service facilities; motor||||
|||vehicles public parking service||||
|BOE (Korea) Co.,||Trade related to electronic information||||
||Korea||100.00%|0.00%|Investment|
|Ltd.||industry||||
|Mianyang BOE||||||
|||Production of display panel for high-end smart||||
|Optoelectronic|Mianyang,|||||
|||phones, folding laptops etc. and R&D,|62.50%|0.00%|Investment|
|Technology Co.,|China|||||
|||production and sales of modules||||
|Ltd.||||||
|||R&D, production, sales, technical consulting||||
|||and maintenance of computer||||
|Beijing BOE Yiyun||||||
|||software/hardware and the auxiliary||||
|Technology Co.,|Beijing, China||51.00%|0.00%|Investment|
|||equipment, electronics, hardware, camera||||
|Ltd.||||||
|||equipment, household appliances, arts&Crafts||||
|||etc.||||
|||Sales of communication equipment,||||
|||software&hardware of electronic computers,||||
|||peripheral devices, electronics, maintenance||||
|Beijing BOE||of equipment; development, transfer,||||
||Beijing, China||100.00%|0.00%|Investment|
|Marketing Co., Ltd.||consulting and service of technologies;||||
|||imports&exports of goods, agency,||||
|||technologies; manufacturing consignment of||||
|||electronics and LCD devices||||

The Company holds6.70%of shares of Hefei Display. Through the agreement on acting in concert signed by the Company with
Hefei Construction Investment and Holding Co., Ltd. and Hefei Xinping Industrial Investment Fund (limited partnership), the
Company acquired the control rights over Hefei Display.
2. The Transaction of the Company with ItsOwner’s Equity Share Changed but Still Controlling the Subsidiary
(1) Explanations on Changes ofOwner’s Equity in the Subsidiary
In February 2017, BOE has increased the capital of BOE Optoelectronics Co. Ltd. by RMB 89,000,000 Yuan. BOE has held93.88% and94.77% of its shares before and after the capital increase respectively.
Hefei BOE Zhuoyin Technology Co., Ltd. has received the additional capital of RMB 250,000 Yuan and RMB 150,000,000 Yuan from Hefei Industry Investment Group in January 2017 and May 2017 respectively, and of RMB Yuan100,000,000 from XZQ Industry Investment Co., Ltd. in June 2017. BOE has held100% and60.06% of its shares before and after the capital increase respectively.
Hefei BOE Display Light Co., Ltd. has received our additional capital of RMB 155,000,000 Yuan and RMB 182,000,000 Yuan in February 2017 and June 2017 respectively, and the additional capital of RMB 1,700,000,000 Yuan, RMB 2,000,000,000 Yuan and RMB 2,000,000,000 Yuan from Hefei Xinping Industry Investment Fund (Limited Partnership) in February 2017, May 2017 and June 2017 respectively. BOE has held7.46% and6.70% of its shares before and after the capital increase respectively.
In June 2017, BOE has purchased minority stock of Chongqing BOE Optoelectronics Technology Co., Ltd. BOE has held81.80% and100% of its shares before and after the capital increase respectively.
(2) The Effects of Transactions on Minority Equity andOwner’s Equity Attributable to the Parent Company
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Chongqing BOE||
||BOE Optical Science and|Hefei BOE Display||Hefei BOE Zhuoyin|
|Item|||Optoelectronics||
||Technology Co., Ltd.|Technology Co., Ltd.||Technology Co., Ltd.|
||||Technology Co., Ltd.||
|Purchase cost/disposal|||||
||89,000,000.00|337,000,000.00|3,825,685,400.00|150,000,000.00|
|consideration|||||
|--Cash|89,000,000.00|337,000,000.00|3,825,685,400.00|150,000,000.00|
|-Fair value of non-cash assets|0.00|0.00|0.00|0.00|
|Total of purchase cost /disposal|||||
||89,000,000.00|337,000,000.00|3,825,685,400.00|150,000,000.00|
|consideration|||||
|Less: subsidiary net assets|||||
|proportion calculated by share|89,939,325.00|336,850,827.00|4,023,870,436.00|149,967,474.00|
|proportion obtained/disposal|||||
|Difference|-939,325.00|149,173.00|-198,185,036.00|32,526.00|
|Of which: Adjustment of capital|||||
||-939,325.00|149,173.00|-198,185,036.00|32,526.00|
|reserves|||||
|Surplus reserves adjustments|0.00|0.00|0.00|0.00|
|Retained profits adjustments|0.00|0.00|0.00|0.00|

3. Equity in Associated Enterprises
Unit: RMB Yuan
||||
|-|-|-|
||Closing balance/ Reporting||
|Item||Opening balance /last period|
||Period||
|Total investment book value|1,981,030,454.00|1,356,111,395.00|
|The total of following items according to the shareholding proportions|--|--|
|--Net profits|-13,690,554.00|-15,121,347.00|
|--Other comprehensive income|-6,355,387.00|46,783,399.00|
|--Total comprehensive income|-20,045,941.00|31,662,052.00|

 Excess Loss Incurred in Associated Enterprises
Unit: RMB Yuan
|||||
|-|-|-|-|
||The cumulative recognized|The derecognized losses or the|The noncumulative|
|Name|losses in previous|share of net profit in Reporting|unrecognized losses in|
||accumulatively derecognized|Period|Reporting Period|
|Beijing Nissin Electronic||||
||0.00|543,140.00|543,140.00|
|Precision Components Co., Ltd.||||

X. The Risk Related Financial Instruments
Risks related to financial instruments in daily activities for the Group include:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
- Other price risks
The risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methods of measuring risks and changes in this year will be discussed below.
Risk management objective of the Company is to balance the risks and profits, minimize the negative effects to business performance and maximize the profits for stockholders and other equity investors. On the basis of risk management objectives, basic strategies of risk management are to determine and analyze all possible risks, establish appropriate risk baseline, control and manage risks and monitor all risks timely and reliably within defined scope. The Group will regularly review the risk management policies and internal control system to adapt to the market and changes of operating activities. The Internal Audit Department will regularly review or randomly inspect whether implementation of internal control system satisfies risk management policies.
(1) Credit Risk
Credit risk is the possibility of financial loss to one party of financial instruments from unfulfillment of obligations of the other party. Credit risk of the Group mainly comes from accounts receivable. The management of this group will monitor the credit risk
exposure.
Except that the monetary capital (other than cash) is deposited in financing institution with good credit, the management does not
believe that other important credit risks exist or losses are not expected to be made to the group due to the otherparty’s breach.
For the accounts receivable, the board of directors has formulated the credit policies according to actual conditions to determine the credit sale limit and credit term by credit assessment. Credit assessment is performed according to customers’ financial situation, external ratings and transaction history. Relevant accounts receivable will expire within 15-120 days after billing date. Debtor of accounts receivable overdue will be required to pay off the outstanding balance to obtain the credit line.
In order to monitor the credit risk, this group will analyze the customer data by aging, maturity date and other factors.
Credit risk of this group is affected by the customer characteristics, but not the industry, country or region. Therefore, concentration of important credit risk is relied on the important accounts receivable of individual customers. On balance sheet date, accounts receivable of the Group and top 5 customers account for42% and1% respectively of all receivables(40% and1% in 2016). Furthermore, accounts receivable without expiry or decrease in value are most related to customers without arrears recently. The largest credit risk exposure of this group is the book amount of each financial asset on the balance sheet. Until June 30, 2017, the group did not provide any guaranty that may cause credit risk.
(2) Liquidity Risk
Liquidity risk refers to that with capital shortage when the Company is fulfilling obligations of cash payment or payment by other financial assets methods. The Company and its subsidiaries are responsible for its own cash management, including short-term investment of cash surplus and loan financing to satisfy prospective cash needs (if the borrowing exceeds preauthorized upper limit, it shall be approved by the board of directors). It is thegroup’s policy to regularly monitor short-term and long-term circulating capital needs and confirm whether it satisfies loan agreement in order to keep sufficient cash reserve and negotiable securities available for realization and obtain sufficient reserve fund as promised by financing institution to satisfy the demands of short-term and long-term circulating capital.
(3) Interest Rate Risk
Interest bearing financial instruments of fixed interest rate and floating interest rate will impose interest rate risks of fair value and cash flow on the Group. Proportion of fixed interest rate and floating interest rate instruments is decided by marketing environment. The Group will regularly review and maintain the combination of fixed and floating interest rate instruments. The Group will not hedge interest rate risk by derivative financial instruments.
Until June 30, 2017, under the circumstance without changes of othervariables，it is supposed that the rising/ falling interest rate at 100 base points will result in reduction/ increase of RMB 210.8 million Yuan (RMB 81.37 million Yuan in 2016) for net profits andstockholders’ equity.
Until balance sheet date, the group has not held any financial instruments that may impose fair value interest rate risk on the Group. For the floating interest rate but not derivative instruments held by the Group and imposing the Group with interest rate risk of cash flow on balance sheet date, the net profits andowners’ equity in the above sensitivity analysis will affect the annual interest expenses or income due to above variation of interest rate.
(4) Foreign Exchange Risk
For the monetary capital, accounts receivable and payable, short-term borrowing and other foreign currency assets and liabilities not valued by bookkeeping base currency, if short-term unbalance occurs, the Group will buy or sell the foreign currencies at market exchange rate to maintain net risk exposure at an acceptable level.
Until June 30, 2017, the foreign assets liabilities item with significant risk exposure settled by USD, the total net assets exposure of USD item risk exposure was USD 401,958,932 (net liabilities exposure USD 181,256,436 in 2016) discounted into RMB Yuan was RMB Yuan2,723,030,588 (RMB 1,257,375,894 Yuan in 2016) at spot rate on balance sheet date. Under the circumstance without changes of other variables,5% fluctuation in exchange rate of RMB Yuan against U.S. dollar will result in reduction / increase of RMB 129,190,526 Yuan (RMB 99,443,997 Yuan in 2016) forstockholders’ equity and net profits.
Above sensitivity analysis is performed based on changes of exchange rate on balance sheet date and re-measurement of financial instruments of foreign exchange risk according to changed exchange rate held by the Group on balance sheet date. Above analysis excludes differences of the foreign currency conversion. Analysis of the last year is based on similar assumption and methods. (5) Other Price Risks
Other price risks include equity price risk, commodity price risk, etc.
XI. The Disclosure of the Fair Value
1. Closing Fair Value of Assets and Liabilities Calculated by Fair Value
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Fair value at the end of the reporting period||||
|Item|||||
|||||Total|
||First level|Second level|Third level||
||Fair value measurement|Fair value measurement|Fair value measurement||
|I. Consistent fair value|||||
||--|--|--|--|
|measurement|||||
|(I) Financial assets calculated by|||||
|fair value and changes record into|0.00|0.00|0.00|0.00|
|current profits or losses|||||
|1. Trading financial assets|0.00|0.00|0.00|0.00|
|(1) Debt instruments investment|0.00|0.00|0.00|0.00|
|(2) Equity tool investment|0.00|0.00|0.00|0.00|
|(3) Derivative financial assets|0.00|0.00|0.00|0.00|
|2. Financial assets assigned|||||
|measured by fair value and the|||||
||0.00|0.00|0.00|0.00|
|changes be included in the|||||
|current gains and losses|||||
|(1) Debt instruments investment|0.00|0.00|0.00|0.00|
|(2) Equity tool investment|0.00|0.00|0.00|0.00|
|(II) Available-for-sale financial|||||
||523,792,045.00|0.00|3,856,380,817.00|4,380,172,862.00|
|assets|||||
|(1) Debt instruments investment|4,149,590.00|0.00|10,103,600.00|14,253,190.00|
|(2) Equity tool investment|519,642,455.00|0.00|0.00|519,642,455.00|
|(3) Other|0.00|0.00|3,846,277,217.00|3,846,277,217.00|
|(III)Investment property|0.00|0.00|0.00|0.00|
|1. Lease the land use right|0.00|0.00|0.00|0.00|
|2. Rental buildings|0.00|0.00|0.00|0.00|
|3. Land use right held and|||||
|prepared to transfer after|0.00|0.00|0.00|0.00|
|appreciation|||||
|(IV)Biological assets|0.00|0.00|0.00|0.00|
|1.Consumable biological assets|0.00|0.00|0.00|0.00|

||||||
|-|-|-|-|-|
|2. Productive biological assets|0.00|0.00|0.00|0.00|
|Total assets of consistent fair|||||
||523,792,045.00|0.00|3,856,380,817.00|4,380,172,862.00|
|value measurement|||||
|(V)Transaction financial|||||
||0.00|0.00|0.00|0.00|
|liabilities|||||
|Of which: tradable bond issued|0.00|0.00|0.00|0.00|
|Derivative financial|||||
||0.00|0.00|0.00|0.00|
|liabilities|||||
|Others|0.00|0.00|0.00|0.00|
|(VI) Refer as financial liabilities|||||
|measured by fair value and the|||||
||0.00|0.00|0.00|0.00|
|changes included in the current|||||
|gains and losses|||||
|Total liabilities of consistent|||||
||0.00|0.00|0.00|0.00|
|fair value measurement|||||
|II. Inconsistent fair value|||||
||--|--|--|--|
|measurement|||||
|(I) Assets held for sale|0.00|0.00|0.00|0.00|
|Total assets inconsistently|||||
||0.00|0.00|0.00|0.00|
|measured at fair value|||||
|Total liabilities inconsistent|||||
||0.00|0.00|0.00|0.00|
|measured at fair value|||||

2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level 1
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted, the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted, the Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities
XII. Related Party and Related Transaction
1. Information Related to Parent Company of the Company
|||||||
|-|-|-|-|-|-|
||||||Proportion of voting|
|||||Proportion of share||
||||||rights owned by|
|Name of parent||||held by parent||
||Registration place|Nature of business|Registered capital||parent company|
|company||||company against the||
||||||against the Company|
|||||Company (%)||
||||||(%)|
|||Operation and||||
||No.12 Jiuxian|||||
|||management of|RMB 1,307,370,000|||
|Electronics Holding|Bridge, Zhaoyang|||0.78%|11.21%|
|||state-owned assets|Yuan|||
||District, Beijing|||||
|||within authorization||||

The actual controller of the Company is Beijing Electronics Holding Co., Ltd.
2. Subsidiaries of the Company
Refer to Note IX. 1.
3. Information on the Associated Enterprises of the Company
For information of the major associated enterprises of the Company, please refer to Note IX. 3.
List of other joint ventures and associated enterprises that made related-party transactions with the Company generating balance during or before the report period:
|||
|-|-|
|Name of associated enterprise|Relationship with the Company|
|Beijing Nissin Electronics Precision Component Co., Ltd.|Beijing Xindongneng Investment Management Co.|
|Shenzhen Yunyinggu Technology Co., Ltd.|Beijing Xindongneng Investment Management Co.|
|Beijing Nittan Electronic Co., Ltd.|Beijing Xindongneng Investment Management Co.|
|TPV Display Technology (China) Limited|Beijing Xindongneng Investment Management Co.|
|Beijing Xindongneng Investment Management Co., Ltd.|Beijing Xindongneng Investment Management Co.|
|Cnoga Medical Ltd.|Beijing Xindongneng Investment Management Co.|

4. Information on Other Related Parties of the Company
|||
|-|-|
|Name|Relationship|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Jile Electronics Group Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Sevenstar Huasheng Electronics & Machinery Co., Ltd.||
||holding company|
|Beijing Sevenstar Front Electronics Co., Ltd.|Enterprises that are controlled by the Company’s ultimate|

|||
|-|-|
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Sevenstar Hongtai Electronic Equipment Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Sevenstar Front Electronics Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Zhengdong Electronic Power Group Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Yandong Microelectronic Co., Ltd.,||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Orient Electronics Material Corp.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Dongdian Industrial Development Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing PCB Square Corporation||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Sevenstar Integrated Circuit Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing North Microelectronics Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Zhaowei Technology Development Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Sevenstar Huadian Technology Group Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Electronic City Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing BBEF Science & Technology Co., Ltd.||
||holding company|
|Beijing Northern Microelectronics Foundation Equipment|Enterprises that are controlled by the Company’s ultimate|
|Technology Research Center|holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Beijing Zhaowei Electronic Group Co., Ltd.||
||holding company|
||Enterprises that are controlled by the Company’s ultimate|
|Xin Xiang Microelectronic (Hong Kong) Co., Ltd.||
||holding company|
||The associated natural person of the Company serves as its|
|BAIC BJEV||
||director.|

5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||The approval trade|Whether exceed trade|Same period of last|
|Related-party|Content|Reporting Period||||
||||credit|credit or not|year|
|Beijing Electronics|||||77,008,531.00|
|Holding Co., Ltd|Purchase of goods|158,505,273.00|800,000,000.00|No||
|and its subsidiaries||||||
|Beijing Electronics|||||1,911,217.00|
||Accepting labor|||||
|Holding Co., Ltd||1,640,754.00|9,000,000.00|No||
||services|||||
|and its subsidiaries||||||
|Other related party|Purchase of goods|5,847,243.00|351,000,000.00|No|2,219,693.00|
||Accepting labor||||0.00|
|Other related party||0.00|30,000,000.00|No||
||services|||||

Information of sales of goods and provision of labor service
Unit: RMB Yuan
|||||
|-|-|-|-|
|Related-party|Content|Reporting Period|Same period of last year|
|Beijing Electronics Holding|||57,904.00|
||Sale of goods|1,718,201.00||
|Co., Ltd and its subsidiaries||||
|Beijing Electronics Holding|||28,963.00|
||Render service|48,192.00||
|Co., Ltd and its subsidiaries||||
|Other related party|Sale of goods|44,248,480.00|118,013,542.00|
|Other related party|Render service|223,757.00|23,857.00|

 (2) Information of Related Lease
The Company serves as the lessor:
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Rental income confirmed in the|Rental income confirmed in the|
|Name of leasee|Type of leased assets|||
|||Report period|same period of last year|
|Beijing Electronics Holding||||
||Investment property|639,813.00|339,332.00|
|Co., Ltd and its subsidiaries||||
|Other related party|Investment property|1,767,383.00|1,415,621.00|

 The Company serves as the leasee:
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name of lessor|Type of leased assets|Rental expense confirmed in the|Rental expense confirmed in the|

|||||
|-|-|-|-|
|||report period|same period of last year|
|Beijing Electronics Holding||||
||Fixed assets|18,239.00|19,367.00|
|Co., Ltd and its subsidiaries||||

(3) Rewards for the Key Management Personnel
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting period|Same period of last year|
|Rewards for the key management|||
||28,603,916.00|18,968,374.00|
|personnel|||

6. Receivables and Payables of Related Parties
(1) Receivables
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Name o f item|Related-party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|
||Beijing Electronics Holding|||||
|Accounts receivable||679,310.00|0.00|698,445.00|0.00|
||Co., Ltd and its subsidiaries|||||
|Accounts receivable|Other related party|13,149,901.00|0.00|31,391,346.00|0.00|
|Payment in advance|Other related party|257,252.00|0.00|0.00|0.00|
|Other accounts|Beijing Electronics Holding|||||
|||7,540.00|0.00|6,440.00|0.00|
|receivable|Co., Ltd and its subsidiaries|||||

(2) Payables
Unit: RMB Yuan
|||||
|-|-|-|-|
|||Closing book||
|Name o f item|Related-party||Opening book balance|
|||balance||
|Accounts payable|Beijing Electronics Holding Co., Ltd and its subsidiaries|11,089,577.00|5,878,972.00|
|Accounts payable|Other related party|58,502.00|58,502.00|
|Other accounts payable|Beijing Electronics Holding Co., Ltd and its subsidiaries|93,388,422.00|113,707,663.00|
|Other accounts payable|Other related party|81,479.00|15,000.00|
|Advance from customers|Other related party|52,761.00|0.00|

XIII. Commitments and Contingencies
1. Significant Commitments
Significant commitments at balance sheet date
(1) Capital Commitments
||||
|-|-|-|
|The Group|06/30/2017|12/31/2016|
|Investment contracts entered into but not performed or performed partially|33,254,796,386.00|36,715,593,193.00|
|Investment contracts authorized but not entered into|49,001,990,595.00|67,984,162,416.00|
|Total|82,256,786,981.00|104,699,755,609.00|

||||
|-|-|-|
|The Group|06/30/2017|12/31/2016|
|Investment contracts entered into but not performed or performed partially|24,428,128,741.00|28,310,042,427.00|
|Investment contracts authorized but not entered into|0.00|0.00|
|Total|24,428,128,741.00|28,310,042,427.00|

 (2) Operating Commitments
||||
|-|-|-|
|The Group|06/30/2017|12/31/2016|
|Within 1 year (including 1 year)|32,396,040.00|21,220,578.00|
|Over 1 year and within 2 years (including 2 year)|25,712,007.00|17,634,577.00|
|Over 2 year and within 3 years (including 3 year)|21,167,479.00|13,715,188.00|
|Over 3 years|132,818,855.00|16,038,238.00|
|Total|212,094,381.00|68,608,581.00|

 2. Contingencies
There was no significant contingency for the Company to disclose.
XIV. Other Significant Events
1. Annuity Plan
Since 2014, the Group established pension plan in line with the related policies of private pension system and replies of related department; withdraw enterprise pension in line with the total amount ofemployees’ voluntary participation in pension plan. 2. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting Considerations
The Group principal decision-makers review the operation performance and distribute resources in accordance to the business segments below.
(a) Display and Sensor Business Group - This business mainly involves theR&D, production and distribution on the panel and module for TFT-LCD and AM-OLED.
(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 Health Cloud, Health& Medical product, and Park Solution. Health Cloud is an information management system based on cloud computing and cloud server; Health& Medical product and service mainly includes wearable and testing equipments; 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. Because the business segments manufacture and distribute different products, apply to different manufacturing processes and specify 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.
(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, amortization, 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. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.
(2) The Financial Information of Reportable Segment
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Display and Sensor|Smart system|||||
|Item|||Health services|Others|Offset in segment|Total|
||business|business|||||
|Operation|||||||
||40,261,582,742.00|8,271,879,666.00|489,914,987.00|442,168,181.00|-4,860,517,581.00|44,605,027,995.00|
|revenue|||||||
|Operation cost|28,802,055,244.00|7,609,162,350.00|246,278,933.00|8,488,146.00|-4,430,718,084.00|32,235,266,589.00|

XV. Notes of Main Items in the Financial Statements of the Company
1. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||||Withdrawal|Book value||||Withdrawal|Book value|
||Amount|Proportion|Amount|||Amount|Proportion|Amount|||
|||||proportion|||||proportion||
|Accounts receivable with significant|||||||||||
|single amount for which bad debt|0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|provision separately accrued|||||||||||
|Accounts receivable withdrawal of|||||||||||
|bad debt provision of by credit risks|31,450,726.00|64.39%|0.00|0.00%|31,450,726.00|30,874,530.00|63.34%|0.00|0.00%|30,874,530.00|
|characteristics:|||||||||||
|Accounts receivable with insignificant|||||||||||
|single amount for which bad debt|17,395,967.00|35.61%|2,889,866.00|16.61%|14,506,101.00|17,869,195.00|36.66%|2,889,866.00|16.17%|14,979,329.00|
|provision separately accrued|||||||||||
|Total|48,846,693.00|100.00%|2,889,866.00|5.92%|45,956,827.00|48,743,725.00|100.00%|2,889,866.00|5.93%|45,853,859.00|

 Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
□ Applicable√ Not applicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
|||||||
|-|-|-|-|-|-|
||Withdraw methods for bad debt provision by|||Closing balance of bad|Withdrawal|
|Name of the group||Basis|Closing balance|||
||group|||debt provision|proportion|
||Mehtod of which is lower between future|||||
|Credit risk group||With similar credit risks characteristics|31,450,727.00|00.00|0.00%|
||recoverable amount and book value|||||

There was no bad debt provision withdrawn, collected or reversed for the Company during the reporting Period as well as write-off accounts receivable. .
(2) Accounts Receivable of the Top 5 of the Closing Balance Collected According to the Arrears Party
The total amount of top five of account receivable of closing balance collected by arrears party was RMB 44,323,275.00 Yuan,90.74% of total closing balance of account receivable, the relevant closing balance of bad debt provision withdrawn was RMB 473,228.00 Yuan.
2. Other Accounts Receivable
(1) Other Accounts Receivable Classified by Category
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||||||||
|||||Withdrawal|Book value||||Withdrawal|Book value|
||Amount|Proportion|Amount|||Amount|Proportion|Amount|||
|||||proportion|||||proportion||
|Other accounts receivable|||||||||||
|with significant single amount|||||||||||
||0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|for which bad debt provision|||||||||||
|separately accrued|||||||||||
|Other accounts receivable|||||||||||
||1,167,306,167.00|100.00%|0.00|0.00%|1,167,306,167.00|1,629,176,234.00|100.00%|0.00|0.00%|1,629,176,234.00|
|withdrawn bad debt provision|||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|according to credit risks|||||||||||
|characteristics|||||||||||
|Other accounts receivable|||||||||||
|with insignificant single|||||||||||
||0.00|0.00%|0.00|0.00%|0.00|0.00|0.00%|0.00|0.00%|0.00|
|amount for which bad debt|||||||||||
|provision separately accrued|||||||||||
|Total|1,167,306,167.00|100.00%|0.00|0.00%|1,167,306,167.00|1,629,176,234.00|100.00%|0.00|0.00%|1,629,176,234.00|

 Other receivable with single significant amount and withdrawal bad debt provision separately at end ofperiod：
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|||Basis of determining||Closing balance of bad|
|Name of the group|Withdrawl method||Closing balance||
|||group||debt provision|
||Mehtods of which is lower between||||
|||With similar credit risks|||
|Credit risk group|future recoverable amount and book||1,167,306,167.00|0.00|
|||characteristics|||
||value||||

There was no bad debt provision withdrawn, collected and reversed for the Company as well as write-off other accounts receivable during the Reporting Period.
(2) Other Accounts Receivable Classified by Account Nature
Unit: RMB Yuan
||||
|-|-|-|
|Nature of accounts|Closing book balance|Opening book balance|
|Intercourse funds|862,328,766.00|1,248,425,532.00|
|Rent receivable|196,737,690.00|209,636,819.00|
|Others|108,239,711.00|171,113,883.00|
|Total|1,167,306,167.00|1,629,176,234.00|

 (5) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||||Closing balance of|
|Name of the entity|Nature|Closing balance|Aging|Proportion%||
||||||bad debt provision|
|Customer 1|Intercourse funds|506,160,000.00|Within 1 year|43.37%|0.00|
|Customer 2|Intercourse funds|189,702,568.00|Over 3 years|16.25%|0.00|
|Customer 3|Intercourse funds|112,792,007.00|Within 1 year|9.66%|0.00|
||||Within 1 year, 1 to 2|||
|Customer 4|Intercourse funds|86,771,218.00||7.43%|0.00|
||||years and 2 to 3 years|||
||||Within 1 year and 2 to|||
|Customer 5|Intercourse funds|51,668,416.00||4.43%|0.00|
||||3 years|||
|Total|--|947,094,209.00|--|81.14%|0.00|

3. Long-term Equity Investment
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|||||||
||Book balance|Impairment provision|Book value|Book balance|Impairment provision|Book value|
|Investment to the subsidiary|112,832,854,497.00|60,000,000.00|112,772,854,497.00|98,986,915,097.00|60,000,000.00|98,926,915,097.00|
|Investment to joint ventures and|||||||
||1,277,845,798.00|0.00|1,277,845,798.00|991,536,352.00|0.00|991,536,352.00|
|associated enterprises|||||||
|Total|114,110,700,295.00|60,000,000.00|114,050,700,295.00|99,978,451,449.00|60,000,000.00|99,918,451,449.00|

 (1) Investment to the subsidiary
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Withdrawn impairment||
|||||||Closing balance of|
|Investee|Opening balance|Increase|Decrease|Closing balance|provision in the||
|||||||impairment provision|
||||||Reporting Period||
|Beijing BOE Semi-conductor Co.,|||||||
||9,450,000.00|0.00|0.00|9,450,000.00|0.00|0.00|
|Ltd.|||||||
|Beijing Yinghe Century Co., Ltd.|333,037,433.00|0.00|0.00|333,037,433.00|0.00|0.00|
|Beijing BOE Land Co., Ltd.|7,731,474.00|0.00|0.00|7,731,474.00|0.00|0.00|
|BOE (Hebei) Mobile Technology Co.,|||||||
||1,053,651,020.00|0.00|0.00|1,053,651,020.00|0.00|0.00|
|Ltd.|||||||
|BOE Hyundai LCD (Beijing) Display|||||||
||31,038,525.00|0.00|0.00|31,038,525.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Beijing BOE Vacuum Electronics Co.,|||||||
||19,250,000.00|0.00|0.00|19,250,000.00|0.00|0.00|
|Ltd.|||||||

||||||||
|-|-|-|-|-|-|-|
|Beijing BOE Vacuum Technology|||||||
||32,000,000.00|0.00|0.00|32,000,000.00|0.00|0.00|
|Co., Ltd.|||||||
|Beijing BOE Optoelectronics|||||||
||4,172,288,084.00|0.00|0.00|4,172,288,084.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Beijing BOE Special Display|||||||
||100,000,000.00|0.00|0.00|100,000,000.00|0.00|60,000,000.00|
|Technology Co., Ltd.|||||||
|BOE Optoelectronics Technology Co.,|||||||
||519,961,914.00|89,000,000.00|0.00|608,961,914.00|0.00|0.00|
|Ltd.|||||||
|BOE Marketing Co., Ltd.|500,000.00|0.00|0.00|500,000.00|0.00|0.00|
|Chengdu BOE Optoelectronics|||||||
||11,333,149,991.00|1,200,000,000.00|0.00|12,533,149,991.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Beijing Asahi Electronic Material Co.,|||||||
||30,888,470.00|0.00|0.00|30,888,470.00|0.00|0.00|
|Ltd.|||||||
|BOE (Korea) Co., Ltd.|788,450.00|0.00|0.00|788,450.00|0.00|0.00|
|Beijing BOE Optoelectronics Holding|||||||
||297,935,467.00|836,154,000.00|0.00|1,134,089,467.00|0.00|0.00|
|Co., Ltd.|||||||
|Mianyang BOE Optoelectronics|||||||
||0.00|500,000,000.00|0.00|500,000,000.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Beijing Yiyun Technology Co., Ltd.|0.00|5,100,000.00|0.00|5,100,000.00|0.00|0.00|
|Beijing BOE Display Technology Co.,|||||||
||17,418,713,599.00|0.00|0.00|17,418,713,599.00|0.00|0.00|
|Ltd.|||||||
|Beijing BOE Energy Technology Co.,|||||||
||250,000,000.00|300,000,000.00|0.00|550,000,000.00|0.00|0.00|
|Ltd.|||||||
|Beijing BOE Multimedia Technology|||||||
||400,000,000.00|0.00|0.00|400,000,000.00|0.00|0.00|
|Co. Ltd.|||||||
|Hefei BOE Optoelectronics|9,000,000,000.00|0.00|0.00|9,000,000,000.00|0.00|0.00|

||||||||
|-|-|-|-|-|-|-|
|Technology Co., Ltd.|||||||
|Beijing•Matsushita Color CRT Co.,|||||||
||0.00|0.00|0.00|0.00|0.00|0.00|
|Ltd.|||||||
|Beijing BOE Video Technology Co.,|||||||
||1,120,000,000.00|850,000,000.00|0.00|1,970,000,000.00|0.00|0.00|
|Ltd.|||||||
|Beijing BOE Smart Commerce Co.,|||||||
||10,000,000.00|0.00|0.00|10,000,000.00|0.00|0.00|
|Ltd.|||||||
|Beijing Zhongxiangying Technology|||||||
||10,000,000.00|0.00|0.00|10,000,000.00|0.00|0.00|
|Co., Ltd.|||||||
|Ordos Yuansheng Optoelectronics|||||||
||11,804,000,000.00|0.00|0.00|11,804,000,000.00|0.00|0.00|
|Co., Ltd.|||||||
|Erdos Haosheng Energy Investment|||||||
||2,000,000.00|0.00|0.00|2,000,000.00|0.00|0.00|
|Co., Ltd.|||||||
|Hefei Xinsheng Optoelectronics|||||||
||16,575,150,000.00|0.00|0.00|16,575,150,000.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Chongqing BOE Optoelectronics|||||||
||15,739,669,199.00|3,825,685,400.00|0.00|19,565,354,599.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|Hefei BOE Display Technology Co.,|||||||
||667,765,323.00|337,000,000.00|0.00|1,004,765,323.00|0.00|0.00|
|Ltd.|||||||
|Fuzhou BOE Optoelectronic|||||||
||7,183,042,079.00|5,483,000,000.00|0.00|12,666,042,079.00|0.00|0.00|
|Technology Co., Ltd.|||||||
|BOE Healthcare Co., Ltd.|813,154,069.00|270,000,000.00|0.00|1,083,154,069.00|0.00|0.00|
|Intelligent Technology|50,000,000.00|0.00|0.00|50,000,000.00|0.00|0.00|
|Hefei BOE Zhuoyin Technology Co.,|||||||
||750,000.00|150,000,000.00|0.00|150,750,000.00|0.00|0.00|
|Ltd.|||||||
|Beijing BOE Technology|1,000,000.00|0.00|0.00|1,000,000.00|0.00|0.00|

||||||||
|-|-|-|-|-|-|-|
|Development Co., Ltd.|||||||
|Total|98,986,915,097.00|13,845,939,400.00|0.00|112,832,854,497.00|0.00|60,000,000.00|

 (2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Increase/decrease||||||||||
|||||Profit and loss on|||Cash,||||Closing|
||||||Adjustment of|||||||
||Opening|||investments||Changes|dividends||||balance for|
|The investor||Additional|Reduced||other|||Impairment||Closing balance||
||balance|||confirmed||in other|and profits||Others||impairment|
|||investments|investments||comprehensive|||provisions||||
|||||according to||equity|declared to||||provisions|
||||||income|||||||
|||||equity law|||issue|||||
|I. Joint ventures||||||||||||
|Naught||||||||||||
|II. Associated enterprises||||||||||||
|Beijing Nissin||||||||||||
|Electronics Precision||||||||||||
||359,892.00|0.00|0.00|-359,892.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Component Co., Ltd.||||||||||||
|(Nissin Electronics )||||||||||||
|Beijing Nittan||||||||||||
|Electronic Co., Ltd.|40,628,603.00|0.00|0.00|1,683,861.00|0.00|0.00|0.00|0.00|0.00|42,312,464.00|0.00|
|(Nittan Electronics)||||||||||||
|Beijing Yingfei||||||||||||
|Hailin Venture Capital||||||||||||
||456,681.00|0.00|0.00|-232,315.00|0.00|0.00|0.00|0.00|0.00|224,366.00|0.00|
|Management Co., Ltd.||||||||||||
|(Yingfei Hailin)||||||||||||
|Ordos BOE Energy|9,463,270.00|0.00|0.00|-4,959.00|0.00|0.00|0.00|0.00|0.00|9,458,311.00|0.00|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investment Co., Ltd.||||||||||||
|(BOE Energy||||||||||||
|Investment)||||||||||||
|Beijing Fly Hailin||||||||||||
||156,981,032.00|0.00|0.00|-413,210.00|0.00|0.00|0.00|0.00|0.00|156,567,822.00|0.00|
|Investment Center||||||||||||
|TPV Display||||||||||||
|Technology (China)|26,622,344.00|0.00|0.00|-2,292,247.00|0.00|0.00|0.00|0.00|0.00|24,330,097.00|0.00|
|Limited||||||||||||
|Beijing Xindongneng||||||||||||
|Investment Fund|679,323,799.00|300,000,000.00|0.00|-8,238,903.00|0.00|0.00|0.00|0.00|0.00|971,084,896.00|0.00|
|(LLP)||||||||||||
|Beijing Xindongneng||||||||||||
|Investment|2,906,218.00|0.00|0.00|905,446.00|0.00|0.00|0.00|0.00|0.00|3,811,664.00|0.00|
|Management Co., Ltd.||||||||||||
|Shenzhen Yunyinggu||||||||||||
||50,345,936.00|0.00|0.00|-4,271,755.00|0.00|0.00|0.00|0.00|0.00|46,074,181.00|0.00|
|Technology Co., Ltd.||||||||||||
|Beijing XLOONG||||||||||||
||24,448,577.00|0.00|0.00|-466,580.00|0.00|0.00|0.00|0.00|0.00|23,981,997.00|0.00|
|Technology Co., Ltd.||||||||||||
|Subtotal|991,536,352.00|300,000,000.00|0.00|-13,690,554.00|0.00|0.00|0.00|0.00|0.00|1,277,845,798.00|0.00|
|Total|991,536,352.00|300,000,000.00|0.00|-13,690,554.00|0.00|0.00|0.00|0.00|0.00|1,277,845,798.00|0.00|

 4. Revenues and Operating Costs
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Reporting Period||Same period of last year||
|Item|||||
||Sales revenue|Cost of sales|Sales revenue|Cost of sales|
|Main operations|0.00|0.00|0.00|0.00|

||||||
|-|-|-|-|-|
|Other operations|705,463,015.00|5,670,598.00|693,427,051.00|58,815,389.00|
|Total|705,463,015.00|5,670,598.00|693,427,051.00|58,815,389.00|

 5. Investment Income
Unit: RMB Yuan
||||
|-|-|-|
|Item|Reporting Period|Same period of last year|
|Long-term equity investment income accounted by cost method|607,278,350.00|20,375,903.00|
|Long-term equity investment income accounted by equity method|-13,690,555.00|-11,180,961.00|
|Investment income arising from disposal of long-term equity investments|0.00|0.00|
|Investment income received from financial assets measured by fair value and the changes be included in the|||
||0.00|0.00|
|current profits and losses during holding period|||
|Investment income received from disposal of financial assets measured by fair value and the changes be|||
||0.00|0.00|
|included in the current profits and losses during holding period|||
|Investment income of held to maturity investment during holding period|0.00|0.00|
|Investment income received from holding of available-for-sale financial assets|930,175.00|2,846,740.00|
|Investment income received from disposal of available-for-sale financial assets|0.00|0.00|
|After losing control, gain from the remaining stock premeasured at fair value|0.00|0.00|
|Investment income from wealth management products on maturity|0.00|6,335,442.00|
|Total|594,517,970.00|18,377,124.00|

XVI. Supplementary Materials
1. Items and Amounts of Extraordinary Gains and Losses
√ Applicable□ Not applicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Explanation|
|Gains/losses on the disposal of non-current assets|-19,257,923.00|Naught|
|Tax return and relief approved ultra vires or without any official approval documents|0.00|Naught|
|Tax rebates, reductions or exemptions due to approval beyond authority or the lack of|||
||306,365,699.00|Naught|
|official approval documents|||
|Capital occupation charges on non-financial enterprises that are recorded into current|||
||0.00|Naught|
|gains and losses|||
|Gains due to that the investment costs for the Company to obtain subsidiaries,|||
|associates and joint ventures are lower than the enjoyable fair value of the identifiable|0.00|Naught|
|net assets of the investees when making the investments|||
|Gain/loss on non-monetary asset swap|0.00|Naught|
|Gain/loss on entrusting others with investments or asset management|0.00|Naught|
|Asset impairment provisions due to acts of God such as natural disasters|0.00|Naught|
|Gains and losses from debt restructuring|0.00|Naught|
|Expenses on business reorganization, such as expenses on staff arrangements,|||
||0.00|Naught|
|integration, etc.|||
|Gain/loss on the part over the fair value due to transactions with distinctly unfair prices|0.00|Naught|
|Current net gains and losses of subsidiaries acquired in business combination under the|||
||0.00|Naught|
|same control from period-begin to combination date|||
|Profit and loss from contingencies irrelative to the normal business operations of|||
||0.00|Naught|
|company|||
|Gain/loss from change of fair value of transactional assets and liabilities, and|||
|investment gains from disposal of transactional financial assets and liabilities and|||
||20,704,483.00|Naught|
|available-for-sale financial assets, other than valid hedging related to the Company’s|||
|common businesses|||
|Depreciation reserves returns of receivables with separate depreciation test|575,305.00|Naught|
|Gain/loss on entrustment loans|0.00|Naught|
|Gain/loss on change of the fair value of investing real estate of which the subsequent|||
||0.00|Naught|
|measurement is carried out adopting the fair value method|||
|Effect on current gains/losses when a one-off adjustment is made to current|||
|gains/losses according to requirements of taxation, accounting and other relevant laws|0.00|Naught|
|and regulations|||

||||
|-|-|-|
|Custody fee income when entrusted with operation|0.00|Naught|
|Other non-operating income and expenses other than the above|18,275,029.00|Naught|
|Project confirmed with the definition of non-recurring gains and losses and losses|0.00|Naught|
|Less: Income tax effects|36,540,381.00|Naught|
|Minority interests effects|5,360,721.00|Naught|
|Total|284,761,491.00|--|

 Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.□ Applicable√ Not applicable
2. Return on Net Equity and Earnings Per Share
|||||
|-|-|-|-|
|||EPS（ Yuan/share）||
|Profit as of Reporting Period|Weighted average ROE (%)|||
|||EPS-basic|EPS-diluted|
|Net profit attributable to common shareholders of the||0.123|0.123|
||4.48%|||
|Company||||
|Net profit attributable to common shareholders of the||||
||4.19%|0.115|0.115|
|Company after deduction of non-recurring profit and loss||||

3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International and Chinese Accounting Standards
□ Applicable√ Not applicable
(2) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Overseas and Chinese Accounting Standards
□ Applicable√ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas Accounting Standards, for Audit Data Adjusting Differences Had Been Foreign Audited, Should Indicate the Name of the Foreign Institutions
Naught
Section XI Documents Available for Reference
(I) Financial statements signed and sealed by the head of the Company, the President of the Executive Committee (CEO), the accounting head for this Report and the head of the accounting department (head of accounting); and
(II) Originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting Period.
All the above mentioned documents are available at the BoardSecretary’s Office of the Company.
BoardChairman’s signature: Mr. Wang Dongsheng
Date of theBoard’s approval of thisReport’s submission: August 28, 2017