ANNUAL REPORT 2016
April 2017
BOE Technology Group Co., Ltd. Annual Report 2016
Section I Important Statements, Contents and Definitions
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”), as
well as the directors, supervisors and executive officers of BOE Technology Group Co., Ltd.
(the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents
of this Report, and shall be jointly and severally liable for any false representation, misleading
statements or material omissions in this Report.
Mr. Wang Dongsheng, head of the Company, Mr. Chen Yanshun, president of the Execution
Committee (chief executive officer) of the Company, Ms. Sun Yun, accounting head for this
Report, and Ms. Yang Xiaoping, head of the accounting department (head of accounting),
hereby guarantee that the Financial Report carried in this Report is factual, accurate and
complete.
All directors attended the board meeting for the review of this Report.
Any plans for the future and other forward-looking statements mentioned in this Report shall
NOT be considered as virtual promises of the Company to investors. Therefore, investors are
kindly reminded to pay attention to possible investment risks.
The Board has considered and approved the following proposal for profit distribution: a cash
dividend of RMB 0.30 Yuan (tax inclusive) per 10 shares will be distributed to all shareholders
of the Company. No bonus shares will be granted, nor will any capital reserve be converted
into share capital.
This Report has been prepared in compliance with the Chinese “Accounting Standards for
Business Enterprises” and other relevant regulations. KPMG Huazhen LLP has issued a
standard auditor’s report with unqualified opinion for the Company.
This Annual Report and its abstract have been prepared in both Chinese and English. Should
there be any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
BOE Technology Group Co., Ltd. Annual Report 2016
Table of Contents
Section I Important Statements, Contents and Definitions ............................................................ 2
Section II Corporate Profile and Key Financial Results ................................................................ 5
Section III Business Profile ............................................................................................................. 10
Section IV Performance Discussion and Analysis ......................................................................... 13
Section V Significant Events ........................................................................................................... 37
Section VI Share Changes and Information about Shareholders ............................................... 67
Section VII Preference Shares ........................................................................................................ 78
Section VIII Directors, Supervisors, Senior Executive Officers and Staff.................................. 79
Section IX Corporate Governance ................................................................................................. 96
Section X Corporate Bonds ........................................................................................................... 106
Section XI Financial Report ....................................................................................................... 111
Section XII Documents Available for Reference ......................................................................... 114
BOE Technology Group Co., Ltd. Annual Report 2016
Definitions
Term Definition
BOE, the Company, Company, the Group, Group BOE Technology Group Co., Ltd.
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2014)
SZSE, the Stock Exchange The Shenzhen Stock Exchange
CSRC China Securities Regulation Commission
CSRC Beijing China Securities Regulation Commission Beijing Bureau
The Articles of Association The Articles of Association of BOE Technology Group Co., Ltd.
The Company Law The Company Law of the People’s Republic of China
The Securities Law The Securities Law of the People’s Republic of China
The cninfo website http://www.cninfo.com.cn/
OASIS Hospital OASIS International Hospital
SID The Society for Information Display
DBG The display business group of the Company
SBG The smart business group of the Company
HBG The health business group of the Company
United Ratings United Credit Ratings Co., Ltd.
TFT Thin Film Transistor
LCD Liquid Crystal Display
LTPS Low Temperature Poly-silicon
AMOLED Active-matrix organic light emitting diode
OLED Organic Light-Emitting Diode
VR/AR Virtual reality/ Augmented Reality
KPMG KPMG Huazhen LLP
BOE Technology Group Co., Ltd. Annual Report 2016
Section II Corporate Profile and Key Financial Results
I Corporate information
Stock name BOE A, BOE B Stock code 000725, 200725
Changed stock name (if any) N/A
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. 京东方
Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD.
Abbr. (if any) BOE
Legal representative Wang Dongsheng
Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China
Zip code
Office address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China
Zip code
Company website http://www.boe.com
Email web.master@boe.com.cn
II Contact information
Item Board Secretary Securities Representative
Name Liu Hongfeng Cui Zhiyong
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Address Economic-Technological Development Area, Economic-Technological Development Area,
P.R.China P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
E-mail liuhongfeng@boe.com.cn cuizhiyong@boe.com.cn
III Information disclosure and place where this Report is kept
Newspapers designated by the Company for China Securities Journal, Shanghai Securities News, Securities Times, Ta
information disclosure Kung Pao (HK)
Website designated by the China Securities
http://www.cninfo.com.cn/
Regulatory Commission (CSRC) for the publication
BOE Technology Group Co., Ltd. Annual Report 2016
of this Report
Place where this Report is kept Board Secretary’s Office
IV Company registration and alteration
Credibility code No changes
Changes in main business activities of the Company
No changes
after going public (if any)
Changes of controlling shareholder (if any) No changes
V Other information
The CPAs firm hired by the Company
Name KPMG Huazhen LLP
Office address 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Beijing, P.R.China
Accountants writing signatures Su Xing, Wang Ting
Sponsor engaged by the Company to continuously perform its supervisory function during this Reporting Period
√ Applicable □ Not applicable
Sponsor
Name Office address Supervisory period
representative
04/05/2014~12/31/2015 (Up to December 31,
2015, the funds raised by the Company through
Room 2203, North Tower, a private A-share offering had not yet been
China Securities Shanghai Stock Exchange Zhu Mingqiang, used up. Therefore, China Securities Co., Ltd.
Co., Ltd. Building, 528 Pudong South Zhao Jun would continue to perform its supervisory
Road, Shanghai, P.R.China function on the Company. As of December 31,
2016, the said funds had been used up and the
sponsor thus ceased its supervision.)
Financial advisor engaged by the Company to continuously perform its supervisory function during this Reporting Period
□ Applicable √ Not applicable
VI Key financial results
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its accounting data due to
changes of accounting policies or correction of accounting errors.
□ Yes √ No
Item 2016 2015 +/-%
Operating revenues (RMB Yuan) 68,895,658,963 48,623,732,312.00 41.69% 36,816,316,676.00
Net profit attributable to 1,882,571,674 1,636,270,488.00 15.05% 2,562,128,829.00
BOE Technology Group Co., Ltd. Annual Report 2016
shareholders of the Company
(RMB Yuan)
Net profit attributable to
shareholders of the Company
12,534,878.00 613,814,833.00 -97.96% 1,827,866,642.00
before exceptional profit and loss
(RMB Yuan)
Net cash flows from operating
10,073,287,120.00 10,493,385,445.00 -4.00% 8,095,825,923.00
activities (RMB Yuan)
Basic earnings per share (RMB
0.054 0.046 17.39% 0.087
Yuan /share)
Diluted earnings per share (RMB
0.054 0.046 17.39% 0.087
Yuan /share)
Weighted average return on equity
2.40% 2.13% 0.27% 4.29%
(%)
Item December 31, 2016 December 31, 2015 +/-% December 31, 2014
Total assets (RMB Yuan) 205,135,011,042 152,592,894,442.00 34.43% 136,240,283,477.00
Net assets attributable to
shareholders of the Company 78,699,988,493 77,485,275,564.00 1.57% 76,155,071,579.00
(RMB Yuan)
VII Differences in accounting data under domestic and foreign accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese
and international accounting standards
□ Applicable √ Not applicable
No such differences for this Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under Chinese
and foreign accounting standards
□ Applicable √ Not applicable
No such differences for this Reporting Period.
VIII Key financial results by quarter
Unit: RMB Yuan
Item 1Q 2Q 3Q 4Q
Operating revenues 12,297,738,830.00 14,150,571,887.00 19,393,595,018.00 23,053,753,228.00
Net profit attributable to
108,325,454.00 -624,797,872.00 657,140,380.00 1,741,903,712.00
shareholders of the Company
BOE Technology Group Co., Ltd. Annual Report 2016
Net profit attributable to
shareholders of the Company -1,356,749,356.00 -952,948,032.00 509,396,071.00 1,812,836,195.00
before exceptional profit and loss
Net cash flows from operating
2,767,654,463.00 -33,567,508.00 3,814,061,583.00 3,525,138,582.00
activities
Indicate by tick mark whether there are any material differences between the financial indicators above or their summations and those
which have been disclosed in quarterly or semi-annual reports
□ Yes √ No
IX Exceptional profit/loss
√ Applicable □ Not applicable
Unit: RMB Yuan
Item 2016 2015 2014 Note
Profit/loss on disposal of non-current assets
-46,754,352.00 -8,350,324.00 -15,575,867.00 N/A
(including offset asset impairment provisions)
Tax rebates, reductions and exemptions due to
approval beyond authority or the lack of official 0.00 0.00 0.00 N/A
approval documents
Government subsidies charged to the profit/loss
for this Reporting Period (except for the
government grants closely related to the business
1,914,531,603.00 1,045,101,727.00 830,471,170.00 N/A
of the Company and given at a fixed quota or
amount in accordance with the State’s uniform
standards)
Capital occupation charges on non-financial
enterprises that are charged to the profit/loss for 0.00 0.00 0.00 N/A
this Reporting Period
Profit due to the situation where investment costs
for the Company to obtain subsidiaries, associates
and joint ventures are lower than the enjoyable 105,228,293.00 163,082.00 10,168,409.00 N/A
fair value of identifiable net assets of investees
when making investments
Profit/loss on non-monetary asset swap 0.00 0.00 0.00 N/A
Profit/loss on entrusting others with investments
0.00 0.00 0.00 N/A
or asset management
Asset impairment provisions due to acts of God
0.00 0.00 0.00 N/A
such as natural disasters
Profit/loss on debt restructuring 0.00 0.00 0.00 N/A
Restructuring costs in staff arrangement,
0.00 0.00 0.00 N/A
integration, etc.
BOE Technology Group Co., Ltd. Annual Report 2016
Profit/loss on the part over the fair value due to
0.00 0.00 0.00 N/A
transactions with distinctly unfair prices
Net Reporting Period profit/loss on subsidiaries
acquired through business mergers under the
0.00 0.00 0.00 N/A
same control from the period-beginning to merger
dates
Profit/loss on contingencies irrelevant to the
0.00 0.00 0.00 N/A
Company’s routine business activities
Profit/loss on fair value changes of transactional
financial assets and liabilities & investment
income from disposal of transactional financial
149,197,609.00 173,197,708.00 6,113,418.00 N/A
assets and liabilities as well as financial assets
available for sale, except for effective hedges
related to routine operations of the Company
Impairment provision reversal for accounts
receivable on which the impairment test is carried 24,547,083.00 4,535,849.00 5,583,021.00 N/A
out separately
Profit/loss on entrusted loans 0.00 0.00 0.00 N/A
Profit/loss on fair value changes in investing
properties of which the subsequent measurement 0.00 0.00 0.00 N/A
is carried out adopting the fair value method
Effect on Reporting Period profit/loss when a
one-off adjustment is made to Reporting Period
profit/loss according to requirements of taxation, 0.00 0.00 0.00 N/A
accounting and other relevant laws and
regulations
Custody fee income when entrusted with
0.00 0.00 0.00 N/A
operations
Non-operating income and expense other than the
40,206,943.00 22,787,015.00 43,217,737.00 N/A
above
Other profit/loss that meet the definition of
0.00 0.00 -4,190,740.00 N/A
exceptional profit/loss
Less: Corporate income tax 305,399,453.00 185,320,551.00 119,985,837.00 N/A
Minority interests (after tax) 11,520,930.00 29,658,851.00 21,539,124.00 N/A
Total 1,870,036,796.00 1,022,455,655.00 734,262,187.00 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss,
or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in this Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2016
Section III Business Profile
I Main business scope for this Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
BOE Technology Group Co., Ltd. (BOE) was established in April 1993. Its core business includes display devices, intelligent
systems and health services.
1. Display business group
As a leader in semi-conductor display innovation and development, the Company is trying to strengthen the core technology through
transformation in technology, product design and application so as to create more value. It is committed to the development,
production and marketing of TFT-LCD, AMOLED, virtual display, etc. Currently, it mainly provides display screens and thin film
transistors for mobile phones, tablet PCs, laptops, displayers, TVs, vehicles, wearable devices, industrial control, medical care, as
well as tiled and transparent display screens.
2. Smart business group
Following the main line of “the Internet of Things and artificial intelligence”, the Company is building four business sub-divisions,
namely intelligent manufacturing, intelligent display systems, intelligent vehicle display systems, and intelligent energy systems. At
present, it mainly provides, for its global partners, the most competitive ODM, OEM and customized intelligent manufacturing
services of complete machines, backlight units, etc., as well as specialized Internet of Things solutions for intelligent display and
banking, vehicle-mounted units, intelligent energy systems, etc.
3. Health business group
With “information medicine and big data” as the basic features, the Company is building a health service system covering mobile
health services, O2O medical services, regenerative medicine, medicine integration, health service centers and health insurance.
II Significant changes in main assets
1. Significant changes in main assets
Main assets Reason for any significant change
Equity assets No changes
Fixed assets No changes
Intangible assets No changes
Construction in progress New construction and equipment procurement increased in this Reporting Period
2. Main assets overseas
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
III Core competitiveness analysis
Is the Company subject to any disclosure requirements for special industries?
No.
1. The Company firmly promoted and implemented DSH business strategy, rapidly formed the layout of new business area,
consolidated businesses and improved global competitiveness
In 2016, the BOE firmly promoted and implemented DSH business strategy, made efforts to strengthen and expand display device
business, rapidly formed layout of smart system business and health service business, consolidated its businesses and improved
global competitiveness. As for display device business: The Company rapidly formed layout of AMOLED. The construction of the
large-size TFT-LCD Production Line, the Chengdu 6th Generation Flexible AMOLED Production Line, as well as the Fuzhou 8.5th
Generation TFT-LCD Production Line were stably promoted, and capped in advance. The Hefei 10.5th TFT-LCD Product Line
project construction was rapidly promoted. The aforesaid projects offered the security both in capacity and technology for
strengthening and expanding display device business, as well as for making transformation and upgrade of the Company. As for
smart system business: the Company founded four business systems separately in smart manufacturing, smart panel connection,
smart vehicle connection, and smart energy. In 2016, the acquirement of VARITRONIX made the foundation for developing smart
vehicle connection business for smart system business. And the launch of iGallery (a digital art gallery) expanded the market for
smart panel connection business. As for health service business, the Company founded six business systems separately in mobile
health, O2O health service, regenerative medical science, integrated medicine, health park, and health insurance. The Oasis
International Hospital won the JCI (Joint Commission on Accreditation of Healthcare Organizations) authentication. The architecture
design and medical planning of Hefei BOE Hospital project were finished, and the system establishment and talents introduction
were being promoted as scheduled.
2. The Company stuck to client orientation, and deeply ploughed and subdivided the market
With the policy of “Deep cooperation, Collaborative development, and Value co-creation”, BOE has become the world top supplier
in semiconductor and display field. BOE has kept long-term and sustainable cooperation with well-known domestic and overseas
clients, including Samsung, LG, Hisense, Konka, Lenovo, Dell, and HP, ranking as the 1st supplier for plenty of international 1st
class brands. While intensifying on enlarging and maintaining strategic clients, the Company deeply ploughed and subdivided the
markets, and realized stable increase in market share in subdivided markets. As for display service: according toIHS Markit
(Information Handling Services, Inc. & Markit Ltd.) data, the market share of LCD display screen of smart phones and tablets kept
ranking as the world number 1, the market share of display screen of laptops leaped to the 4th place in the world in the fourth quarter,
the market share of display screen of displayers ranked in the 2nd place in the world, and the market share of TV display ranked in the
3rd place in the world. As for smart system business: The shipment of complete machines was nearly 13 million units. The market
share of TV and MNT was remarkably improved. Clients were introduced to the shipment of vehicle-mounted display system.
Product projects including VR/AR have been positively pushing forward.
3. The Company reinforced independent innovation, and further promoted its ability to innovate
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint value
creation”, continued to strengthen construction of patent attack and defense system, positively took part in domestic and international
industrial standard formation, constantly intensified self-innovation capability, kept foresight and primacy of technologies and
products, and thoroughly improved global competitiveness. In 2016, the Company applied 7570 patents, of which the authorized
patents amounted to over 3000. As at 31 Dec. 2016, BOE’s patents in commission accumulated to an amount of over 50,000. The IFI
(a USA service institution for commercial patents data) announced the top 50 companies list in the field of authorized patens in the
USA, where only 2 companies in mainland China ranked in. The BOE ranked as the 40th one as the only one with over 200%
increase in authorized patents. At the same time, breakthroughs in productization and mass production were made in new
technologies such as TDDI (integrated technology in touch control and display driver), SLOC (single-layer multipoint
BOE Technology Group Co., Ltd. Annual Report 2016
outer-embedded technology), and LTPS AMOLED. The Company launched a series of globally leading innovated products, of
which the 2.8-inch LTPS display screen with pixel density reaching up to 1600 PPI, the 7–inch FHD LTPS heteromorphism display,
the 82-inch 10K hook face product with the highest hook face resolution rate in the world, and Alta Max, won high praises in global
industry in SID, and innovated product including iGallery won the attention and recognition by the industry and from consumers. In
the Global Innovation Report issued by Thomson Reuters, the BOE ranked in the 2nd place in the world in respect of Innovation
Power of Semiconductor Companies.
4. The Company pushed forward transformation and upgrade, and further promoted its brand image
With the promotion of transformation and upgrade, the Company’s products and service quality was further improved, the innovation
vigor of the organization was further motivated, the publicity and marketing promotion was further enhanced, and the Company’s
brand image was further improved. In 2016, the CCTV news broadcasting of the innovative brand image of the Company for many
times, together with the organization and implementation of significant brand activities in China and overseas, for example, the
participation in SID in the USA, the holding of global suppliers’ meeting and global innovation partners’ meeting, sharply improved
the brand recognition and reputation of the Company. Based on the evaluation of market institutions, the BOE brand value was
improved in a multiplied way, customer satisfaction and brand reputation were continuously improved, as well as the selection into
the Top 10 Leading Brands in Consumer Electronics in China in ten consecutive years, showed the high recognition and broad
attention for the BOE brand image in global market.
BOE Technology Group Co., Ltd. Annual Report 2016
Section IV Performance Discussion and Analysis
I Overview
2016 marked the first year for China’s 13th Five-Year Plan for Economic and Social Development. In the year, in light of the faster
integration among industries under the “+ Internet” policy, the Company tried to build an “Open and Connected Ecoresystem” and
positioned itself as a “supplier of Internet of Things technology, products and services” centering on four core technologies, namely
“display, sensor technology, artificial intelligence and big data”.
2015 and the first half of 2016 witnessed a considerable decline in market demand, fierce competition, as well as the reform towards
large-sized, HD display products and those carrying new technology, new techniques and new materials. In face of a complex and
changeable market, all employees of the Company united as one man and worked hard to try to seize opportunites. As a result, its
operating revenues reaches RMB 68.89 billion Yuan, with year-on-year growth of 41.69%,with a steady growth in its profit. While
strengthening new display and sensor technology such as TFT-LCD and AMOLED, the Company also improved its capability
regarding intelligent manufacturing, intelligent energy systems, intelligent vehicle display systems and intelligent display systems.
Meanwhile, it made cross-field innovations by combining semi-conductor display, artifitial intellience and sensor technology with
medical and life technology. Details about the situations of the Company’s business divisions are given as follows:
(I) Display business group (DBG)
The ratio of touch-control modules for semiconductor display products, as well as products with high resolution and new applications
was improved, which effectively hedged the impact from price drop to revenue. The Company seized market opportunities, swept
marketing and sales, raised market share, and kept the market share of main products in subdivided markets in the leading position in
the industry. The market share of LCD display screen of smart phones and tablets kept ranking as the world number 1, the market
share of display screen of laptops leaped to the 4th place in the world in the fourth quarter, the market share of display screen of
displayers ranked in the 2nd place in the world, and the market share of TV display ranked in the 3rd place in the world. The VR/AR
(visual reality/augmented reality) products realized mass production, and clients were introduced. Projects of X-ray, gene sequencing,
and smart antenna forged ahead steadily. The Company continued to deeply dig technique capability, optimize bottleneck crafts, and
arrange lean production scheduling, so as to set a new record for yield rate and capacity. Projects of smart manufacturing and
manufacturing engineers were executed as planned, and the personal structure was further optimized. The domestication ratio in
materials, equipment, as well as reserve products and parts was continuously improved. The localization supporting plan for suppliers
of new production lines was carried forward as scheduled. The Company further perfected quality management and control
mechanism, reached the cost control target for poor quality, and won A-class appraisal from clients. The Company established green
product analysis center, and became the first semiconductor manufacturer in China to build the GP lab.
(II) Smart business group (SBG)
As for smart manufacturing: The shipment of TV/MNT complete machines marked record high. The shipment of mobile backlight
modules made breakthrough. Cooperation with strategic clients was further firmed. The Hefei smart manufacturing factory was
established and put into use. The construction of Chongqing smart manufacturing factory was started. As for smart energy: The
photovoltaic project made new progress, the semiconductor lighting business kept being improved, and the plant factory explored
new business patterns. As for smart vehicle connection: the Company purchased HK VARITRONIX, a vehicle connection business
platform, and positively promoted the business integration with VARITRONIX. As for smart panel connection: The Company
launched iGallery (a digital art gallery) products and pleased the market. The Company conducted cooperation project of smart banks
and won clients’ recognition. The Company established the platform and center for artificial intelligence and big data, promoted the
transformation of innovation technology, and supported the development of four major divisions.
BOE Technology Group Co., Ltd. Annual Report 2016
(III) Health business group (HBG)
In 2016, supported by the platform of service from robot doctors, the Company founded six business systems in mobile health,
regenerative medical science, integrated medicine, O2O healthy service, health park, and health insurance. The Oasis International
Hospital won the JCI authentication and achieved over 40% year-on-year increase in revenue and the quantity of new clients. The
construction of Hefei BOE hospital was started. The resource expansion in Beijing-Tianjin-Hebei and southwest region was
propelled step by step. The pattern design and planning for online health service platform were finished, and the preliminary
operation was started. As for mobile health business, the Company integrated mobile health with robot doctors, and promoted new
product development. As for the business of regenerative medical science, the Company accomplished the planning of development
path and platform, and started the establishment of research center of regenerative medical science. The transformation of health park
made breakthrough, and new profit growth factor for business revenue was dug out. As for health insurance business, the Company
perfected operation mechanism and business development planning, and accelerated the reviewing process of operation qualification.
II Analysis of main business
1. Overview
See “I Overview” in “Performance Discussion and Analysis”.
2. Revenues and costs
(1) Breakdown of operating revenues
Unit: RMB Yuan
2016
As a percentage of As a percentage of
Item +/-%
Revenue total operating Revenue total operating
revenues (%) revenues (%)
Total operating
68,895,658,963.00 100% 48,623,732,312.00 100% 41.69%
revenues
By business segment
Display device 61,207,032,381.00 88.84% 43,501,436,202.00 89.47% 40.70%
Intelligent system 12,503,057,007.00 18.15% 8,781,046,730.00 18.06% 42.39%
Health service 907,225,055.00 1.32% 826,323,560.00 1.70% 9.79%
Other 1,835,270,634.00 2.66% 1,196,198,355.00 2.46% 53.43%
Offset -7,556,926,114.00 -10.97% -5,681,272,535.00 -11.69% 33.01%
By product
Display devices 61,207,032,381.00 88.84% 43,501,436,202.00 89.47% 40.70%
Intelligent systems 12,503,057,007.00 18.15% 8,781,046,730.00 18.06% 42.39%
Health services 907,225,055.00 1.32% 826,323,560.00 1.70% 9.79%
Others 1,835,270,634.00 2.66% 1,196,198,355.00 2.46% 53.43%
BOE Technology Group Co., Ltd. Annual Report 2016
Offset -7,556,926,114.00 -10.97% -5,681,272,535.00 -11.69% 33.01%
By geographical segment
China 36,758,279,462.00 53.35% 21,057,873,677.00 43.31% 74.56%
Other regions in Asia 28,659,907,880.00 41.60% 21,339,034,068.00 43.89% 34.31%
Europe 1,576,844,846.00 2.29% 2,677,131,554.00 5.51% -41.10%
America 1,783,928,923.00 2.59% 3,430,415,741.00 7.06% -48.00%
Other regions 116,697,852.00 0.17% 119,277,272.00 0.23% -2.16%
(2) Business segments, products or geographical segments contributing over 10% of the operating revenues
or profit
√ Applicable □ Not applicable
Is the Company subject to any disclosure requirements for special industries?
No.
Unit: RMB Yuan
Operating Operating Gross profit
Gross profit
Item Operating revenue Operating cost revenue: YoY cost: YoY margin: YoY
margin
+/-% +/-% +/-%
By business segment
Display device 61,207,032,381.00 50,827,910,258.000 16.96% 40.70% 46.16% -3.10%
Intelligent system 12,503,057,007.00 11,436,764,569.00 8.53% 42.39% 42.60% -0.14%
By product
Display devices 61,207,032,381.00 50,827,910,258.00 16.96% 40.70% 46.16% -3.10%
Intelligent systems 12,503,057,007.00 11,436,764,569.00 8.53% 42.39% 42.60% -0.14%
By geographical segment
China 36,758,279,462.00 32,674,830,264.00 11.11% 74.56% 120.12% -18.40%
Other regions in
28,659,907,880.00 21,072,655,784.00 26.47% 34.31% 18.00% 10.16%
Asia
Main business data of the prior year restated according to the changed statistical caliber for this Reporting Period
□ Applicable √ Not applicable
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
Business segment Item Unit 2016 2015 +/-%
Sales volume 0,000 units 59,001 52,573 12.23%
TFT-LCD
Output volume 0,000 units 60,127 53,810 11.74%
BOE Technology Group Co., Ltd. Annual Report 2016
Inventory 0,000 units 2,530 3,960 -36.11%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
In 2016, the sales volume of small-sized products increased, bringing down the number of the stock.
(4) Execution progress of major signed sales contracts in this Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of operating costs
By business segment
Unit: RMB Yuan
2016
As a percentage of As a percentage of
Business segment Costs +/-%
Cost amount total operating Cost amount total operating costs
costs (%) (%)
Materials, labor
Display device costs, 50,827,910,258.00 89.82% 34,776,700,215.00 89.73% 46.16%
depreciation, etc.
Materials, labor
Intelligent system costs, 11,436,764,569.00 20.21% 8,020,038,488.00 20.69% 42.60%
depreciation, etc.
Materials, labor
Health service costs, 404,222,596.00 0.71% 411,163,905.00 1.06% -1.69%
depreciation, etc.
Materials, labor
Other costs, 19,378,863.00 0.03% 6,372,839.00 0.02% 204.09%
depreciation, etc.
Materials, labor
Offset costs, -6,102,580,195.00 -10.77% -4,459,184,781.00 -11.50% 36.85%
depreciation, etc.
Notes:
N/A
(6) Changes in the scope of the consolidated financial statements for this Reporting Period
√ Yes □ No
Five new subsidiaries were included in the consolidation scope of this Reporting Period due to ownership changes. And the relevant
data exclusive of the five new subsidiaries are as follows:
Item Operating revenue Operating cost Gross profit Operating revenue: Operating cost: Gross profit
BOE Technology Group Co., Ltd. Annual Report 2016
margin YoY +/-% YoY +/-% margin: YoY
+/-%
By business segment
Display device 61,207,024,362.00 50,827,910,258.00 16.96% 40.72% 46.16% -3.09%
Intelligent system 11,201,629,071.00 10,403,551,258.00 7.12% 27.57% 29.72% -1.55%
Health service 904,534,276.00 402,140,219.00 55.54% 9.46% -2.19% 5.30%
Other 1,672,096,930.00 19,378,863.00 98.84% 39.78% 162.65% -0.54%
Offset -7,395,196,484.00 -6,583,178,143.00 10.98% 30.17% 47.44% -10.43%
By product
Display devices 61,207,024,362.00 50,827,910,258.00 16.96% 40.72% 46.16% -3.09%
Intelligent
11,201,629,071.00 10,403,551,258.00 7.12% 27.57% 29.72% -1.55%
systems
Health services 904,534,276.00 402,140,219.00 55.54% 9.46% -2.19% 5.30%
Others 1,672,096,930.00 19,378,863.00 98.84% 39.78% 162.65% -0.54%
Offset -7,395,196,484.00 -6,583,178,143.00 10.98% 30.17% 47.44% -10.43%
By geographical segment
China 36,480,855,574.00 31,975,617,652.00 12.35% 73.24% 115.48% -17.18%
Other regions in
28,328,807,163.00 20,828,026,521.00 26.48% 32.76% 16.63% 10.17%
Asia
Europe 1,066,272,192.00 991,357,734.00 7.03% -60.09% -61.97% 4.39%
America 1,650,781,793.00 1,226,386,241.00 25.71% -51.88% -63.18% 22.80%
Other regions 63,371,433.00 48,414,307.00 23.60% -46.87% -58.40% 21.16%
(7) Major changes in the business, products or services in this Reporting Period
□ Applicable √ Not applicable
(8) Main customers and suppliers
Main customers
Total sales to top five customers (RMB Yuan) 26,037,132,038.00
Total sales to top five customers as a percentage of the
37.79%
total sales for this Reporting Period (%)
Total sales to related parties among top five customers as
0.00%
a percentage of the total sales for this Reporting Period
BOE Technology Group Co., Ltd. Annual Report 2016
(%)
Information about top five customers
As a percentage of the total sales for this
No. Customer Sales amount (RMB)
Reporting Period (%)
1 Customer A 12,128,602,338.00 17.60%
2 Customer B 4,330,041,610.00 6.28%
3 Customer C 3,818,324,990.00 5.54%
4 Customer D 2,921,763,901.00 4.24%
5 Customer E 2,838,399,199.00 4.12%
Total -- 26,037,132,038.00 37.79%
Other information about the main customers
□ Applicable √ Not applicable
Main suppliers
Total purchases from top five suppliers (RMB Yuan) 9,869,787,655.00
Total purchases from top five suppliers as a percentage of the total
17.44%
purchases for this Reporting Period (%)
Total purchases from related parties among top five suppliers as a
0.00%
percentage of the total purchases for this Reporting Period (%)
Information about top five suppliers
As a percentage of the total purchases for
No. Supplier Purchase amount (RMB)
this Reporting Period (%)
1 Supplier A 5,183,295,066.00 9.16%
2 Supplier B 1,886,899,606.00 3.33%
3 Supplier C 1,082,069,720.00 1.91%
4 Supplier D 866,010,035.00 1.53%
5 Supplier E 851,513,228.00 1.50%
Total -- 9,869,787,655.00 17.44%
Other information about the main suppliers
□ Applicable √ Not applicable
3. Expense
Unit: RMB Yuan
Item 2016 2015 +/-% Reason for any significant change
Increased accordingly as the operating
Selling expenses 1,984,361,921.00 1,290,038,686.00 53.82%
revenues increased
BOE Technology Group Co., Ltd. Annual Report 2016
Administrative expenses 5,618,443,652.00 4,675,778,199.00 20.16% N/A
Increase in borrowings, corporate bonds and
Finance costs 2,299,116,897.00 1,496,013,180.00 53.68% expensed interest cost due to the fact that some
new construction became fixed assets
4. R&D input
√ Applicable □ Not applicable
N/A
Details about R&D input:
Item 2016 2015 +/-%
Number of R&D personnel 3,248 2,603 24.78%
R&D personnel as a percentage in the total
6.61% 6.08% 0.53%
employees
R&D input (RMB Yuan) 4,139,435,892.00 3,318,561,843.00 24.74%
R&D input as a percentage in operating revenues 6.01% 6.82% -0.81%
Capitalized R&D input (RMB Yuan) 919,711,205.00 786,493,174.00 16.94%
Capitalized R&D input as a percentage in the total
22.22% 23.70% -1.48%
R&D input
Reasons for any significant YoY change in the percentage of the R&D input in the operating revenues
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of the capitalized R&D input and rationale
□ Applicable √ Not applicable
5. Cash flows
Unit: RMB Yuan
Item 2016 2015 +/-%
Subtotal of cash inflows from
73,610,884,095.00 54,646,309,541.00 34.70%
operating activities
Subtotal of cash outflows due to
63,537,596,975.00 44,152,924,096.00 43.90%
operating activities
Net cash flows from operating
10,073,287,120.00 10,493,385,445.00 -4.00%
activities
Subtotal of cash inflows from
34,686,752,663.00 13,757,314,612.00 152.13%
investing activities
Subtotal of cash outflows due to 59,181,683,823.00 33,351,718,502.00 77.45%
BOE Technology Group Co., Ltd. Annual Report 2016
investing activities
Net cash flows from investing
-24,494,931,160.00 -19,594,403,890.00 -25.01%
activities
Subtotal of cash inflows from
44,117,048,127.00 21,241,472,453.00 107.69%
financing activities
Subtotal of cash outflows due to
17,975,955,326.00 13,112,545,053.00 37.09%
financing activities
Net cash flows from financing
26,141,092,801.00 8,128,927,400.00 221.58%
activities
Net increase in cash and cash
13,172,072,171.00 -321,968,943.00 4191.10%
equivalents
Explanation of why the data above varied significantly
√ Applicable □ Not applicable
Mainly due to the issue of RMB10 billion bonds and the increased borrowings, the net cash flows from financing activities increased
221% from last year.
Reason for any big difference between the net operating cash flow and the net profit for this Reporting Period
√ Applicable □ Not applicable
The Company was engaged in manufacture and the relevant depreciation & amortization was great, resulting in a big difference
between the operating cash flows and the net profits in the year.
III Analysis of non-core business
√ Applicable □ Not applicable
Unit: RMB Yuan
As a percentage of
Item Amount Source/reason Recurring or not
total profit (%)
Investment income 151,006,609.00 6.01% Gains on financial products No
Profit/Loss on fair
0.00 0.00% N/A No
value changes
Amount provided for inventory falling price
Asset impairment 1,594,488,553.00 63.46% No
impairment according to market conditions
Non-operating Governmental subsidies received in the
2,085,966,318.00 83.03% No
revenue Reporting Period
Non-operating
78,861,768.00 3.14% Loss on disposal of fixed assets No
expense
BOE Technology Group Co., Ltd. Annual Report 2016
IV Analysis of assets and liabilities
1. Significant changes in the asset composition
Unit: RMB Yuan
December 31, 2016 December 31, 2015
Change in percentage
Item As a percentage of As a percentage Reason for any significant change
Amount Amount (%)
total assets (%) of total assets (%)
Arrival of specialized funds and cash
Monetary funds 58,152,817,223.00 28.35% 38,866,861,836.00 25.47% 2.88%
inflows from operating activities
Increased accordingly as the operating
Accounts receivable 16,191,791,617.00 7.89% 8,192,514,361.00 5.37% 2.52%
revenues increased
Inventories 7,833,138,532.00 3.82% 6,609,406,228.00 4.33% -0.51% No significant changes
Investment property 1,192,932,896.00 0.58% 1,227,099,427.00 0.80% -0.22% No significant changes
Long-term equity
1,356,111,395.00 0.66% 1,260,302,959.00 0.83% -0.17% No significant changes
investments
Fixed assets 69,947,586,967.00 34.10% 63,565,099,405.00 41.66% -7.56% No significant changes
New construction and equipment
Construction in progress 33,008,248,720.00 16.09% 18,645,461,692.00 12.22% 3.87%
procurement increased
Short-term borrowings 4,916,965,507.00 2.40% 5,091,974,830.00 3.34% -0.94% No significant changes
Long-term borrowings 49,885,166,211.00 24.32% 36,341,198,145.00 23.82% 0.50% New borrowings for new construction
Decrease in wealth management products
Other current assets 5,691,200,226.00 2.77% 8,712,017,517.00 5.71% -2.94%
upon maturity
Increase in prepayments for engineering
Other non-current assets 4,139,533,216.00 2.02% 347,851,674.00 0.23% 1.79%
equipment
Accounts payable 13,835,615,665.00 6.74% 9,849,935,031.00 6.46% 0.28% Material procurement increased
BOE Technology Group Co., Ltd. Annual Report 2016
accordingly as the production and sales
volumes increased
The payables for engineering equipment
Other accounts payable 14,395,525,248.00 7.02% 8,864,929,878.00 5.81% 1.21%
increased as construction proceeded
Non-current liabilities Long-term borrowings became due within
3,684,236,935.00 1.80% 2,283,535,113.00 1.50% 0.30%
due within one year one year
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB Yuan
Profit/loss on fair value Cumulative fair value
Impairment provided in Purchased in this Sold in this Reporting
Item Opening balance changes in this changes charged to Closing balance
this Reporting Period Reporting Period Period
Reporting Period equity
Financial assets
1. Financial assets at
fair value through
profit/loss (excluding 0.00 0.00 0.00 0.00 0.00 0.00 0.00
derivative financial
assets)
2. Derivative financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
3. Available-for-sale
305,520,857.00 0.00 112,739,631.00 0.00 86,693,214.00 0.00 394,236,151.00
financial assets
Subtotal of financial
305,520,857.00 0.00 112,739,631.00 0.00 86,693,214.00 0.00 394,236,151.00
assets
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
BOE Technology Group Co., Ltd. Annual Report 2016
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 305,520,857.00 0.00 112,739,631.00 0.00 86,693,214.00 0.00 394,236,151.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Significant changes in the measurement attributes of the main assets in this Reporting Period
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
Item Closing book value Reason for restriction
Monetary funds 8,798,006,835.00 As pledge for guarantee and as security deposits
Notes receivable 554,066,161.00 Endorsed and transferred with right of recourse, as pledge for opening notes payable
Inventories 0.00 N/A
Fixed assets 59,103,357,241.00 As mortgage for guarantee
Intangible assets 962,788,931.00 As mortgage for guarantee
Investment property 194,397,438.00 As mortgage for guarantee
Construction in progress 2,578,810,470.00 As mortgage for guarantee
Total 72,191,427,076.00 --
BOE Technology Group Co., Ltd. Annual Report 2016
V Investments made
1. Total investments made
√ Applicable □ Not applicable
Investments made in this Reporting Period (RMB Yuan) Investments made in the prior year (RMB Yuan) +/-%
501,072,666.00 684,136,502.00 -26.76%
2. Significant equity investments made in this Reporting Period
□ Applicable √ Not applicable
3. Significant non-equity investments ongoing in this Reporting Period
□ Applicable √ Not applicable
4. Financial investments
(1) Securities investments
√ Applicable □ Not applicable
Unit: RMB Yuan
Profit/loss
on fair Cumulative
Sold in Profit/loss in Source of
Variety of Code of Name of Initial Accounting value fair value Purchased in
Opening book this this Closing book
measurement changes changes this Reporting Accounting title investment
securities securities securities investment cost value Reporting Reporting value
model in this charged to Period
Period Period funds
Reporting equity
Period
Domestic/overseas TPV Fair value Available-for-sale Own
HK00903 134,658,158.00 20,817,148.00 0.00 720,066.00 0.00 0.00 205,296.00 28,763,373.00
stock Technology method financial asset funds
BOE Technology Group Co., Ltd. Annual Report 2016
Domestic/overseas Electronic Fair value Available-for-sale Own
SH600658 90,160,428.00 137,178,316.00 0.00 83,039,879.00 0.00 0.00 2,641,444.00 129,715,503.00
stock Zone method financial asset funds
Domestic/overseas Bank of Fair value Available-for-sale Own
HK01963 120,084,375.00 147,525,393.00 0.00 27,983,239.00 0.00 0.00 6,651,480.00 148,067,614.00
stock Chongqing method financial asset funds
BlackRock
Global
Domestic/overseas Fair value Available-for-sale Own
BLK Allocation 4,004,297.00 0.00 0.00 1,969,866.00 4,004,297.00 0.00 0.00 5,974,163.00
stock method financial asset funds
Fund A2
USD
Domestic/overseas China Fair value Available-for-sale Own
HK06066 70,041,364.00 0.00 0.00 -673,895.00 70,041,364.00 0.00 0.00 69,367,469.00
stock Securities method financial asset funds
Other securities investments held at the
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
Total 418,948,622.00 -- 418,948,622.00 0.00 113,039,155.00 74,045,661 0.00 9,498,220.00 381,888,122.00 -- --
Disclosure date of the announcement
about the board’s consent for the securities N/A
investment
Disclosure date of the announcement
about the general meeting’s consent for the N/A
securities investment (if any)
(2) Investment in derivative financial instruments
□ Applicable √ Not applicable
No such cases in this Reporting Period
BOE Technology Group Co., Ltd. Annual Report 2016
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overview of the use of raised funds
√ Applicable □ Not applicable
RMB’0,000 Yuan
Accumulative
Raised funds raised funds
Accumulative Intended use of Raised funds
Raised funds Raised funds with changed with changed
Total raised raised funds Unused raised unused raised being idle for
Year of raising Way of raising used in this accumulatively use in the use as a
amount with changed funds funds and place more than two
Reporting Period used Reporting percentage of
use where it is kept years
Period total raised
funds
2014 Private offering 4,488,471 679,593 4,488,471 68,474 418,474 9.32% 0 --
Corporate
2016 995,000 995,000 995,000 0 0 0.00% 0 --
bonds
Total -- 5,483,471 1,674,593 5,483,471 68,474 418,474 9.32% 0 --
Overview of the use of raised funds
The total raised funds stood at RMB45,712,999,989.30. After deducting the various issuance expense of RMB828,294,936.66, the net raised funds via asset and cash subscription stood at
RMB44,884,705,052.64, of which including the assets subscription of RMB8,532,999,999.30 (Beijing State-owned Capital Operation and Management Center subscribed by 48.92% equities of
Beijing BOE Display Technology Co., Ltd.) and RMB5,999,999,999.70 of the relevant creditor's rights subscription with the issuance and raising funds investment projects of the Company that
held by Hefei Jianxiang Investment Co., Ltd.. During the Reporting Period, the raised funds gradually invested in each project according to the expected plans. On December 21, 2016, it was
approved at the 8th meeting of the 8th Board to permanently supplement the working capital with the surplus funds in the special account for raised funds as of December 19, 2016, which had
been raised through a private offering in 2014.
The net amount of the raised funds of the 16BOE01 bonds was of RMB99.50 hundred million Yuan, and up to the period-end, the raised funds has been used up, all of which used in
supplementing the working funds which met with the agreement of the bond prospectus.
BOE Technology Group Co., Ltd. Annual Report 2016
(2) Projects with promised raised funds investment
√ Applicable □ Not applicable
Unit: RMB’0,000 Yuan
Project Investment Date when
Profit
changed or progress the project Expected Significant
Projects with promised raised Accumulative generated in
not Promised raised Changed Investment in the as of the reaches the profit change in
funds investment and investment investment as of the
(including funds investment investment (1) Reporting Period period-end expected reached or project
of over-raised capital the period-end (2) Reporting
partially (3)＝ usable not feasibility
Period
changed) (2)/(1) condition
Projects with promised raised funds investment
1. Hefei 8.5G Line Project No 700,000 699,500 78,072 699,500 100.00% 10/31/2014 2,638,509 -- None
2. Touch Screen Production Line
No 250,000 250,000 0 250,000 100.00% 05/31/2017 -- -- None
Project
3. Erdos 5.5G Line Project No 400,000 400,000 117,130 400,000 100.00% 06/30/2017 227,869 -- None
4. Chongqing 8.5G Line Project Yes 1,520,000 1,144,608 226,884 1,144,608 100.00% 12/31/2015 1,321,509 Yes None
5. Supplementing the working
No 165,171 233,645 68,474 233,645 100.00% -- -- -- --
capital
6. Subscription to equity interests
No 853,300 853,300 0 853,300 100.00% -- -- -- --
in BOE Display
7. Subscription to creditor’s
No 600,000 600,000 0 600,000 100.00% -- -- -- --
rights on Hefei Jianxiang
8. 2016 Supplement circulating
No 995,000 995,000 995,000 995,000 100.00% -- -- -- --
funds of the Company’s bonds
Subtotal of projects with
-- 5,483,471 5,176,053 1,485,560 5,176,053 -- -- 4,168,765 -- --
promised raised funds investment
BOE Technology Group Co., Ltd. Annual Report 2016
Investment of over-raised capital
N/A
Subtotal of investment of
-- -- -- 0 -- --
over-raised capital
Total -- 5,483,471 5,176,053 1,485,560 5,176,053 -- -- 4,168,765 -- --
Reason for failing to reach
expected progress or profit
No such cases in the Reporting Period
(explain one project by one
project)
Explanation on significant
N/A
changes in feasibility of projects
Amount, use and use progress of
N/A
over-raised funds
Change of the place where any
raised funds investment project N/A
will be carried out
Change of the way how any
raised funds investment project N/A
will be carried out
Advanced investment and
exchange of any raised funds N/A
investment project
Idle raised funds used for
temporarily supplementing N/A
working capital
BOE Technology Group Co., Ltd. Annual Report 2016
During the construction of capital raising investment project, the Company and Project Company start from realities of situation; implement budget
management strictly; use raised capital cautiously with the principle of reasonability, effectiveness and economy; strictly control purchase and construction
procedure; control cost effectively; decrease implementation costs of project, so as to save maximum project capital. Also, interest income is generated when
Surplus raised funds in project
the raised capital is deposited. The Company held the 8th Meeting of the 8th Board of Directors on 21 Dec. 2016. The meeting deliberated and passed the
implementation and reasons
issue that non-development release savings of raised capital in 2014 replenished circulating capital permanently, also the meeting agreed to use the savings of
raised capital, around RMB 1.38 billion (including interest income) and in the special account of raised capital of the Company till 19 Dec. 2016, as permanent
replenishing circulating capital.
Intended use of unused raised
N/A
funds and place where it is kept
Problems or other issues found in
the use and disclosure of raised N/A
funds
(3) Changes in raised funds investment projects
√ Applicable □ Not applicable
Unit: RMB’0,000 Yuan
Total raised funds Investment Date when the Significant change
Actual investment Actual cumulative Profit generated in
Originally to be invested in progress as of the project reaches Expected profit in feasibility of
Changed project in the Reporting investment as of the Reporting
promised project the changed period-end (3)＝ the expected reached or not the changed
Period the period-end (2) Period
project (1) (2)/(1) usable condition project
Chongqing 8.5G
Chongqing 8.5G
30K production 307,418 189,033 307,418 100.00% 04/01/2016 -- Yes None
Line Project
expansion project
Supplementing
Supplementing
the working
the working 233,645 68,474 233,645 100.00% -- -- -- None
capital Hefei 8.5G
capital
Line Project
BOE Technology Group Co., Ltd. Annual Report 2016
Chongqing 8.5G
and 30K
production
Hefei 8.5G Line Hefei 8.5G Line Yes None
699,500 78,072 699,500 100.00% 10/31/2014 2,638,514
Project Project
Chongqing 8.5G Chongqing 8.5G Yes None
1,144,608 226,884 1,144,608 100.00% 12/31/2015 1,302,382
Line Project Line Project
Total -- 2,385,171 562,463 2,385,171 -- -- 3,940,896 -- --
1. Chongqing 8.5G Line Project: Considering the narrowing profit margin for touch screen due to increasingly fierce competition, our
analysis of market trends and the actual situation of the project, the use of some raised funds has been adjusted according to the
Proposal for Adjusting Use of Some Raised Funds to Invest in Chongqing 8.5G Line 30K Production Expansion Project which was
reviewed and approved at the 23rd Meeting of the Seventh Board of Directors dated 19 April 2015 and later at the 2014 Annual General
Meeting dated 20 May 2015. The adjustment details have been disclosed in the Announcement No. 2015-022 of BOE Technology
Reasons for change, decision-making procedure and Group Co., Ltd. on Adjusting Use of Some Raised Funds to Invest in Chongqing 8.5G Line 30K Production Expansion Project dated
relevant information disclosure (explain one project by 20 April 2015.
one project) 2. Supplementing the working capital : When the raised funds investment projects were being carried out, the Company and the project
companies managed to save some funds based on the reality of the projects. In addition, interest accrued when the raised funds was
kept in a bank account. As such, on December 21, 2016, it was approved at the 8th meeting of the 8th Board to permanently supplement
the working capital with the surplus funds in the special account for raised funds as of December 19, 2016, which had been raised
through a private offering in 2014. The said matter has been disclosed in the Announcement No. 2016-093 of BOE Technology Group
Co., Ltd. on Permanently Supplementing Working Capital with Surplus Raised Funds dated December 23, 2016.
Reason for failing to reach expected progress or profit
N/A
(explain one project by one project)
Explanation on significant changes in feasibility of
No significant changes
changed project
Note：The profit reached in this reporting perioed of Chongqing 8.5G and 30K production were calculated tighter..
BOE Technology Group Co., Ltd. Annual Report 2016
VI Sale of major assets and equity interests
1. Sale of major assets
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Sale of major equity interests
□ Applicable √ Not applicable
VII Main controlled and joint stock companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB Yuan
Relationship
Main business scope Operating
Company name with the Registered capital Total assets Net assets Operating profit Net profit
revenues
Company
Beijing BOE
Display Development and production
Subsidiary 17,882,913,500.00 28,911,968,701.00 19,921,321,452.00 15,874,528,030.00 170,186,471.00 421,670,504.00
Technology of TFT-LCD
Co., Ltd.
Investment, construction,
Hefei Xinsheng
R&D, production and sales of
Optoelectronics
Subsidiary the relevant products of thin 19,500,000,000.00 35,527,569,494.00 20,993,546,027.00 11,685,780,086.00 -302,116,871.00 452,959,474.00
Technology
film transistor LCD and its
Co., Ltd.
auxiliary products
BOE Technology Group Co., Ltd. Annual Report 2016
Chongqing Investment, construction,
BOE R&D, production and sales of
Optoelectronics Subsidiary the relevant products of thin 19,226,000,000.00 36,718,702,593.00 20,035,249,763.00 11,880,542,795.00 720,657,942.00 787,537,938.00
Technology film transistor LCD and its
Co., Ltd. auxiliary products
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
Subsidiary How the subsidiary was obtained or disposed in this Reporting Period Effect on overall production and operation results
Beijing BOE Changhong Network Technology Co., Ltd. Transferred No significant effects
Beijing BOE Digital Technology Co., Ltd. Liquidated No significant effects
BOE Taiwan Inc. Liquidated No significant effects
Varitronix International Limited Business combination not under the same control No significant effects
Beijing BOE Property Development Co., Ltd. Business combination not under the same control No significant effects
Hefei BOE Display Technology Co., Ltd. Business combination not under the same control No significant effects
Hefei BOE Video Technology Co., Ltd. Incorporated through investment No significant effects
Chongqing BOE Intelligent Electronic System Co., Ltd. Incorporated through investment No significant effects
Huaining Orient Duxiu New Energy Co., Ltd. Incorporated through investment No significant effects
BOE Taiwan Inc. Incorporated through investment No significant effects
BOE India Private Limited Incorporated through investment No significant effects
Beijing BOE Technology Development Co., Ltd. Incorporated through investment No significant effects
BOE Intelligent Technology Co., Ltd. Incorporated through investment No significant effects
Hefei BOE Zhuoyin Technology Co., Ltd. Incorporated through investment No significant effects
Information about the main controlled and joint stock companies
N/A
BOE Technology Group Co., Ltd. Annual Report 2016
VIII Structured bodies controlled by the Company
□ Applicable √ Not applicable
IX Outlook for the future development of the Company
(I) Analysis of future environment for development
The 4th industrial revolution with the representative of internet of things, artificial intelligence, big data, life science and technology
etc is coming roughly. With the rapid application and development of related technologies, human society is stepping into a new era
which all things are perceived and all things are linked with each other intelligently. You can find display anywhere. New display
technology including AMOLED develops rapidly and quickly increases its market share. With the deep integration of life
technologies and IT, there is an opportunity for breakthroughs in human health and longevity.
(II) Future development of the Company
BOE has made a 25year development strategy at the beginning of entering the field of semi-conduct display industry. In the face of
opportunities and challenges, BOE will further promote the integration of hardware and software, integration of application and
transformation towards service orientation. The company will completely establish revolutionary innovative organization and
mechanism as well as vitality to accelerate its transformation towards new display technological products and intelligent products,
foster the ability to integrate life technology and IT and then promote the Company’s innovation-oriented transformation and rapid
but stable development of DSH through sticking to innovation and implementation of Internet Plus Strategy.
1. Display business group (DBG)
The Company should improve its core competitiveness in business group of new display and sensor through finding the potential
demand of customers and optimizing customer experience taking customers as the centre. The Company need develop new products
jointly to provide the best human-computer interactive products and service for application field such as smart phone, tablet PC,
laptop, TV, industry control, healthcare, VR/AR etc.
TFT-LCD: Strengthening technical innovation, improving its ability to increase value in production line and flexibly respond to
productivity fluctuation so as to meet customers’ needs maximally; raising the standardization of production line, optimizing the
technological risks assessment mechanism of new products to ensure maximization of efficiency of production line; further
promoting touch modularization, increasing the market share of five traditional applications--smart phone, table PC, laptop, TV, and
display--at the time of speeding up the increasing of market share of new applications such as car carrying, industry control, health
care, and display for commercial use etc.; promoting the increasing of production of Fuqing G8.5 production line and the building of
G10.5 production line in Hefei.
AMOLED: Strengthening the ability of technological accumulation in AMOLED, enhancing the core capability, improving the
technological reserve of key products and speeding up mass production of new technology; improving the supply chain of future
display technology, finding potential customers and building a supply chain system with technological strength and cost
competitiveness. Accelerating the project of the building of Chengdu AMOLED to achieve mass production as soon as possible.
Sensor: Improving the ability and core technology in sensor and application products, speeding up the technological development of
sensor and developing of new customers, and contributing to the breakthrough of sensor market.
VR/AR: promoting the project construction of Kunming micro-display quickly, speeding up productization of technology so as to
seize the market.
2. Smart business group (SBG)
The Company constantly improves the core capacity-building of smart manufacturing service, smart retail, smart vehicle connection,
and smart energy, and cooperates with household appliances, commercial equipment, culture and art, health care and other industry
to expand new application, develop new market, set up new ecology, and create new value.
Smart manufacturing service: digging the potential demand of strategic customers deeply, developing the new brand customers, and
BOE Technology Group Co., Ltd. Annual Report 2016
carrying out the first supplier plan with lean management; achieving the annual sales breakthrough of medium and large size
products, and constantly improving the market share of mobile products; promoting the construction of Hefei smart manufacturing
factory, Chongqing smart manufacturing factory, and etc, completing the analysis of investment and operation to improve
profitability.
Smart retail: accelerating the progress of self-service system, retail system, and the platform of art trading, etc, improving the core
capacity of niche business of service system of internet of things, rapidly obtaining the revenues and profit, and improving the global
competitiveness.
Smart energy: strengthening the core capacity, developing the new market, and setting up healthy and sustainable development
model.
Smart vehicle connection: promoting the sales of TFT car products, and getting the substantive achievements of vehicle electronic
system products; promoting the construction of car module production to produce line and sell soon.
3. Health business group (HBG)
Combining the electronic information technology, such as semiconductor display, artificial intelligence, and sensor technology with
medicine and life science and technology innovatively, setting up health care service system that is human-centered to improve
people healthy lifespan and life quality, and strive to be the global model of the field of health care service.
Mobile health: accelerating the customers development and market expansion of multi-signs tester, digging customers and market
and developing the products, like glucose meter and occupying the market quickly to improve the profitability.
Regenerative medical science: attracting the industry leading talents, accumulating the core capacity of regenerative medical science;
promoting positively the construction of projects, like cell engineering lab, cell preparation center, and clinical transformation center.
O2O healthy service: setting up and perfecting the discipline of ecological system where medical, teaching, and research are put into
one, consolidating the core capacity of medical business; accelerating the construction and operating preparation of Hefei BOE
hospital project; pushing forward the confirmation of Chengdu project layout.
Health park: innovating the business model, constantly optimizing TS project, and improving the service ability of overall solution.
X Visits paid to the Company for purposes of research, communication, interview, etc.
BOE Technology Group Co., Ltd. Annual Report 2016
1. In this Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor Index to main inquiry information
01/07/2016 By phone Institution
01/12/2016 One-on-one meeting Institution
01/15/2016 One-on-one meeting Institution
01/25/2016 One-on-one meeting Institution Main discussions: 1. The status quo and
future outlook of the Company; 2. The
02/18/2016 One-on-one meeting Institution
status quo and development trends of the
02/19/2016 By phone Institution
industry; and 3. The production lines of
02/24/2016 By phone Institution the Company.
03/07/2016 One-on-one meeting Institution
03/17/2016 By phone Institution
04/21/2016 One-on-one meeting Institution
05/06/2016 By phone Institution
05/10/2016 One-on-one meeting Institution
05/11/2016 By phone Institution
05/12/2016 One-on-one meeting Institution
05/23/2016 One-on-one meeting Institution
05/27/2016 By phone Institution
05/27/2016 One-on-one meeting Institution
06/06/2016 One-on-one meeting Institution Main discussions: 1. The operating
06/08/2016 By phone Institution results of the first quarter in the year and
the future outlook of the Company; 2.
06/13/2016 One-on-one meeting Institution
The status quo and development trends
06/16/2016 One-on-one meeting Institution of the industry; and 3. The production
06/24/2016 One-on-one meeting Institution lines of the Company.
06/28/2016 By phone Institution
07/01/2016 One-on-one meeting Institution
07/01/2016 By phone Institution
07/05/2016 One-on-one meeting Institution
07/14/2016 One-on-one meeting Institution
07/15/2016 One-on-one meeting Institution
07/21/2016 One-on-one meeting Institution
09/01/2016 One-on-one meeting Institution Main discussions: 1. The semi-annual
09/02/2016 One-on-one meeting Institution operating results and the future outlook
BOE Technology Group Co., Ltd. Annual Report 2016
09/02/2016 By phone Institution of the Company; 2. The status quo and
development trends of the industry; and
09/07/2016 One-on-one meeting Institution
3. The production lines of the Company.
09/21/2016 By phone Institution
09/21/2016 One-on-one meeting Institution
09/23/2016 One-on-one meeting Institution
10/14/2016 By phone Institution
10/26/2016 By phone Institution
10/27/2016 One-on-one meeting Institution
10/31/2016 One-on-one meeting Institution
11/03/2016 By phone Institution
11/04/2016 One-on-one meeting Institution
11/04/2016 One-on-one meeting Institution Main discussions: 1. The operating
11/10/2016 One-on-one meeting Institution results of the third quarter in the year and
the future outlook of the Company; 2.
11/11/2016 One-on-one meeting Institution
The status quo and development trends
11/11/2016 By phone Institution of the industry; and 3. The production
11/11/2016 By phone Institution lines of the Company.
11/16/2016 One-on-one meeting Institution
12/22/2016 One-on-one meeting Institution
12/26/2016 By phone Institution
Times of visit
Number of visiting institutions
Number of visiting individuals
Number of other visitors
Significant undisclosed information disclosed,
None
revealed or leaked
BOE Technology Group Co., Ltd. Annual Report 2016
Section V Significant Events
I Profit distribution and converting capital reserve into share capital for common
shareholders
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, for common shareholders in this
Reporting Period
□ Applicable √ Not applicable
Plans/proposals for profit distribution and converting capital reserve into share capital for common shareholders for the past three
years (including this Reporting Period):
The Preplan for 2014 Annual Profit Allocation was reviewed and approved at the 2014 Annual Board of Directors. According to the
Company’s Scheme of Returns for Shareholders for the Coming Three Years (2014-2016), the Company shall, except in special
circumstances, first adopt cash in dividend distribution provided that the Company makes a profit and the accumulative retained
profits are positive for a year. The profits distributed in cash, stock or the combination of cash and stock for a year shall not be less
than 30% of the distributable profits made in the year. And special circumstances refer to: (I) that the Company is to have a
significant external investment plan or a significant cash expenditure in the coming 12 months reaching or exceeding 10% of the
Company’s lately audited net assets; and (II) other circumstances recognized by the general meeting of shareholders. Since the
undistributed profits of the Company (without subsidiaries) for 2014 are RMB41,186,231 Yuan and the basic undistributed profits per
share are RMB0.001167 Yuan, which is a small amount, the Board proposes not to distribute profits or transfer capital reserves into
share capital for 2014. And the retained profits will be used for distribution for subsequent years or semi-years as well as in the
routine operation of the Company.
For the first half of 2015, based on the total shares of 35,153,067,743 (after deducting the bought-back B-shares), the Company
distributed a cash dividend of RMB0.10 Yuan (tax inclusive) per 10 shares to all shareholders, representing a total distribution of
RMB351,530,677.43 Yuan, accounting for 75.63% of its undistributed profit. No bonus shares were granted. Nor was any capital
reserves converted into share capital.
The 2015 Annual Profit Distribution Proposal was considered and approved at the 2015 annual meeting of the Board. With the
undistributed profit for 2015 at RMB486,814,338 Yuan and the basic undistributed profit per share at RMB0.013848 Yuan, the
Company planned to distribute a dividend of RMB0.1 Yuan per 10 shares for 2015. For 2015, based on the total shares of
35,153,067,743.00, the Company distributed, with the undistributed profit, a cash dividend of RMB0.10 Yuan (tax inclusive) per 10
shares to all its shareholders, with the total distributed amount reaching RMB351,530,677.43 Yuan, representing 72.21% of the total
undistributed profit. And no bonus shares were granted, nor was any capital reserve converted into share capital.
For 2016, based on the total shares of 34,953,874,916 (excluding the A and B shares bought back) （The total share base for the
Company’s profit distribution proposal may change. Since the Company is carrying out a plan to buy back some public shares, the
total share base for this profit distribution plan shall be subject to the figure in the register of shareholders on the relevant book
closure date.）, the Company intended to distribute, with the undistributed profit, a cash dividend of RMB0.30 Yuan (tax inclusive)
per 10 shares to all its shareholders, with the total amount to be distributed reaching RMB1,048,616,247.48 Yuan, representing
70.22% of the total undistributed profit. And no bonus shares would be granted, nor would any capital reserve be converted into
share capital.
BOE Technology Group Co., Ltd. Annual Report 2016
Cash dividend distribution of the Company to common shareholders over the past three years (including this Reporting Period)
Unit: RMB Yuan
Net profit Proportion in net
attributable to profit attributable to
common common
Cash dividends shareholders of the shareholders of the Ratio of cash
Cash dividends in
Year dividends in other
(tax included) Company in the Company in the other forms
forms
consolidated consolidated
statements for the statements for the
year year (%)
2016 1,048,616,247.48 1,882,571,674.00 55.70% 0.00 0.00%
2015 703,061,354.86 1,636,270,488.00 42.97% 0.00 0.00%
2014 0.00 2,562,128,829.00 0.00% 0.00 0.00%
Indicate by tick mark whether the Company made profit in this Reporting Period and the profit distributable to common shareholders
of the Company was positive, but it did not put forward a proposal for cash dividend distribution to its common shareholders.
□ Applicable √ Not applicable
II Proposal for profit distribution and converting capital reserve into share capital for this
Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share)
Dividend for every 10 shares (RMB Yuan) (tax
0.30
inclusive)
Additional shares to be converted from capital
reserve for every 10 shares (share)
Total shares as the basis for the profit distribution 34,953,874,916
proposal (share)
Total cash dividends (RMB Yuan) (tax included) 1,048,616,247.48
Distributable profit (RMB Yuan) 1,493,363,829.00
Percentage of cash dividends in the total profit to 100.00%
be distributed (%)
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash
dividends shall be 20% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
For 2016, based on the total shares excluding the A and B shares bought back, the Company intended to distribute a cash dividend
of RMB0.30 Yuan (tax inclusive) per 10 shares to all its shareholders. And no bonus shares would be granted, nor would any
BOE Technology Group Co., Ltd. Annual Report 2016
capital reserve be converted into share capital. The said proposal is in compliance with the Company’s Articles of Association and
relevant approval procedure, and the independent directors have expressed their independent opinion on the proposal, which fully
protects the legal rights and interests of the minority investors.
Note: The total share base for the Company’s profit distribution proposal may change. Since the Company is carrying out a plan to
buy back some public shares, the total share base for this profit distribution plan shall be subject to the figure in the register of
shareholders on the relevant book closure date.
BOE Technology Group Co., Ltd. Annual Report 2016
III Fulfillment of commitments
1. Commitments of the Company’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers,
fulfilled in this Reporting Period or ongoing at the period-end
√ Applicable □ Not applicable
Date of Period of
Type of Fulfillm
Commitment Commitment maker Contents commitment commitme
commitment ent
making nt
Commitments made in share
reform
Commitments made in acquisition
documents or shareholding
alteration documents
Commitments made in time of
asset restructuring
Beijing State-owned Capital Operation Committed that the shares acquired from
Restricted
and Management Center, Hefei Jianxiang purchasing would not be transferred from the
shares 04/08/2014 36 months Ongoing
Investment Co., Ltd., Chongqing Capital first date of issuing the newly increased shares
Commitments made in time of IPO commitments
Optoelectronics Investment Co., Ltd. of the issuer within 36 months
or refinancing
Restricted Voluntarily committed to lock up for 24 months
Hefei Rongke Project Investment Co.,
shares of the whole held Company’s shares since 01/09/2014 24 months Fulfilled
Ltd.
commitments January 9, 2014
Commitments concerning stock
ownership incentive
Other commitments made to Other Committed not to decrease the shareholding
Beijing Electronics Holdings Co., Ltd. 07/31/2015 6 months Fulfilled
minority interests commitments during the shareholding increase execution and
BOE Technology Group Co., Ltd. Annual Report 2016
within 6 months after the completion of the
shareholding increase of 231,700 tradable
shares of the RMB ordinary shares which
increased the shareholding through the
directional asset plan.
Committed not to decrease the shareholding
during the shareholding increase execution and
within 6 months after the completion of the
Beijing BOE Investment & Development Other
shareholding increase of 6,311,100 tradable 08/24/2015 6 months Fulfilled
Co., Ltd. commitments
shares of the RMB ordinary shares which
increased the shareholding through the
directional asset plan.
Committed not to decrease the shareholding of
All Directors, Supervisors and Senior Other
the Company’s shares within the future 6 07/11/2015 6 months Fulfilled
Executives commitments
months since July 11, 2015.
Beijing Electronics Holdings Co., Ltd.,
Committed not to decrease the shareholding of
Beijing BOE Investment & Development Other
the Company’s shares within the future 6 01/28/2016 6 months Fulfilled
Co., Ltd. and Hefei Rongke Project commitments
months since January 28, 2016.
Investment Co., Ltd.
Committed not to decrease the shareholding of
Beijing BDA Technological Investment Other
the Company’s shares within the future 6 02/14/2016 6 months Fulfilled
Development Co., Ltd. commitments
months since February 14, 2016.
Fulfilled on time or not Yes
Specific reasons for failing to
fulfill commitments on time and N/A
plans for next step
BOE Technology Group Co., Ltd. Annual Report 2016
2. Where there had been an earnings forecast for an asset or project and this Reporting Period was still
within the forecast period, explain why the forecast has been reached for this Reporting Period.
□Applicable √ Not applicable
IV Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
No such cases in this Reporting Period.
V Explanations given by the Board of Directors, the Supervisory Board and the independent
directors (if any) regarding the “modified auditor’s report” issued by the CPAs firm for this
Reporting Period
□ Applicable √ Not applicable
VI YoY changes in accounting policies, estimations and methods
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VII Retroactive restatement due to correction of material accounting errors in this Reporting
Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VIII YoY changes in the scope of the consolidated financial statements
√ Applicable □ Not applicable
In November 2016, the Company included Hefei BOE Display Technology Co., Ltd. in its consolidation scope because it had
realized actual control on Hefei BOE Display by signing an acting-in-concert agreement with the other shareholders of Hefei BOE
Display.
In April 2016, the Company included Varitronix International Limited in its consolidation scope because it had acquired a 54.70%
stake of Varitronix International Limited.
In July 2016, the Company included Beijing BOE Property Development Co., Ltd. in its consolidation scope because it had acquired
the 100% stake of Varitronix International Limited.
In August 2016, the Company excluded Beijing BOE Changhong Network Technology Co., Ltd. from its consolidation scope
because it had sold its 51% stake in Beijing BOE Changhong.
BOE Technology Group Co., Ltd. Annual Report 2016
In August 2016, the Company excluded controlled subsidiary Beijing BOE Video Technology Co., Ltd. from its consolidation scope
because liquidation had been carried out on Beijing BOE Video.
In September 2016, the Company excluded Taiwan-based subsidiary Hometek Electronics Co., Ltd. from its consolidation scope
because liquidation had been carried out on Hometek Electronics.
The Company incorporated eight new subsidiaries in the Current Year, namely, Hefei BOE Video Technology Co., Ltd., Chongqing
BOE Intelligent Electronic System Co., Ltd., Huaining Orient Duxiu New Energy Co., Ltd., BOE Taiwan Inc., BOE India Private
Limited, Beijing BOE Technology Development Co., Ltd., BOE Intelligent Technology Co., Ltd. and Hefei BOE Zhuoyin
Technology Co., Ltd.
IX Engagement and disengagement of CPAs firm
Current CPAs firm
Name of the domestic CPAs firm KPMG Huazhen LLP
The Company’s payment for the domestic CPAs firm (RMB’0,000 Yuan)
Consecutive years of the audit service provided by the domestic CPAs firm 12 years
Names of the certified public accountants from the domestic CPAs firm Su Xing, Wang Ting
Name of the foreign CPAs firm (if any) N/A
Consecutive years of the audit service provided by the foreign CPAs firm (if
N/A
any)
Names of the certified public accountants from the foreign CPAs firm (if any) N/A
Indicate by tick mark whether the CPAs firm was changed during this Reporting Period.
□ Yes √ No
CPAs firm, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
The Company hired KPMG Huazhen LLP as the internal control auditor for the Current Year at the cost of RMB2.25 million Yuan.
X Possibility of listing suspension or termination after disclosure of this Report
□ Applicable √ Not applicable
XI Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XII Significant lawsuits and arbitrations
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
No such cases in this Reporting Period.
XIII Punishments and rectifications
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XIV Credit conditions of the Company as well as its controlling shareholder and actual
controller
□ Applicable √ Not applicable
XV Implementation of any equity incentive plan, employee stock ownership plan or other
incentive measures for employees
□ Applicable √ Not applicable
No such cases in this Reporting Period.
XVI Significant related-party transactions
1. Related-party transactions relevant to routine operation
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Related-party transactions regarding purchase or sales of assets or equity interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-party transitions regarding joint investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other significant related-party transactions
√ Applicable □ Not applicable
No
BOE Technology Group Co., Ltd. Annual Report 2016
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on the Prediction of 2016 Annual Routine Related
04/26/2016 www.cninfo.com.cn
Transaction of BOE Technology Group Co., Ltd.
Announcement on the Adjustment of Investment Amounts for the
10.5 Generation Film Transistor LCD Devices Production Line 07/28/2016 www.cninfo.com.cn
Project of BOE Technology Group Co., Ltd.
Announcement on the Adjustment of Registered Capital of Hefei
BOE Display Technology Co., Ltd and the Signing of Investor’s 12/01/2016 www.cninfo.com.cn
Concerted Action Agreement of BOE Technology Group Co., Ltd.
Announcement on the Offer of Guarantee and Related Transaction for
Hefei BOE Display Technology Co., Ltd of BOE Technology Group 12/01/2016 www.cninfo.com.cn
Co., Ltd.
XVII Significant contracts and execution
1. Entrustment, contracting and leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
√ Applicable □ Not applicable
Explanation to leasing
1. The fixed assets rent financed by leasing in our group is our youth apartment used for staff dormitory.
2. The group sold and leased back part of the machinery equipment and construction in progress. The sale of assets and lease
transactions are related to each other, and there is almost no doubt that the group will repurchase them after expiry of the lease.
The project whose profit and loss brought for the company can reach above 10% of the total profit during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2016
2. Significant guarantees
√ Applicable □ Not applicable
(1) Guarantees provided by the Company
Unit:RMB’0,000 Yuan
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Disclosure date of Actual occurrence Actual Guarantee
Line of
Guaranteed party the guarantee line date (date of guarantee Type of guarantee Term of guarantee Due or not for a related
guarantee
announcement agreement signing) amount party or not
无
Guarantees between the Company and its subsidiaries
Disclosure date of Actual occurrence Actual Guarantee
Line of
Guaranteed party the guarantee line date (date of guarantee Type of guarantee Term of guarantee Due or not for a related
guarantee
announcement agreement signing) amount party or not
Hefei BOE Photoelectric 08/14/2014 757,554 03/12/2015 332,818 Joint liability 07/23/2010 - No No
Technology Co., Ltd. guarantee 07/23/2019
Beijing BOE Display 08/14/2014 1,072,387 09/30/2014 139,053 Joint liability 01/27/2011 - No No
Technology Co., Ltd. guarantee 01/26/2020
Hefei Xin Sheng Photoelectric 08/14/2014 1,283,345 01/15/2015 1,082,172 Joint liability 01/06/2014 - No No
Technology Co., Ltd. guarantee 01/06/2022
Ordos Yuan Sheng 04/02/2013 482,976 05/22/2013 407,844 Pledge 06/17/2013 - No No
Photoelectric Co., Ltd. 06/09/2021
Ordos Yuan Sheng 08/14/2014 482,976 09/30/2014 407,844 Joint liability 06/17/2013 - No No
Photoelectric Co., Ltd. guarantee 06/09/2021
BOE Technology Group Co., Ltd. Annual Report 2016
Chongqing BOE Photoelectric 08/14/2014 1,477,581 9/29/2014 1,064,802 Joint liability 11/05/2014 - No No
Technology Co., Ltd. guarantee 11/05/2022
Chongqing BOE Photoelectric 08/14/2014 300,000 05/25/2015 135,000 Joint liability Opening date of the No No
Technology Co., Ltd. guarantee letter of guarantee -
12/31/2020
Hefei BOE Display 12/17/2016 1,706,502 12/26/2016 291,354 Joint liability 12/26/2016 - No No
Technology Co., Ltd. guarantee 12/26/2017
Fuzhou BOE Photoelectric 12/10/2015 1,387,400 11/08/2016 857,057 Joint liability 12/19/2016 - No No
Technology Co., Ltd. guarantee 12/19/2024
Total guarantee line for subsidiaries approved during Total actual guarantee amount for
the Reporting Period (B1) 1,706,502 subsidiaries during the Reporting 327,567
Period (B2)
Total approved guarantee line for subsidiaries at the Total actual guarantee balance for
end of the Reporting Period (B3) 8,467,745 subsidiaries at the end of the 4,310,100
Reporting Period (B4)
Guarantees between subsidiaries
Disclosure date
Actual occurrence date Guarantee for
of the guarantee Actual guarantee
Guaranteed party Line of guarantee (date of agreement Type of guarantee Term of guarantee Due or not a related party
line amount
signing) or not
announcement
Ordos Yuan Sheng Photoelectric Pledge 06/17/2013 -
04/02/2013 482,976 05/22/2013 407,844 No No
Co., Ltd. 06/09/2021
Total actual guarantee amount for
Total guarantee line for subsidiaries approved
0 subsidiaries during the Reporting Period
during the Reporting Period (C1)
(C2)
Total approved guarantee line for subsidiaries at the Total actual guarantee balance for
0
end of the Reporting Period (C3) subsidiaries at the end of the Reporting
BOE Technology Group Co., Ltd. Annual Report 2016
Period (C4)
Total guarantee amount (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved during the Reporting Total actual guarantee amount during the
1,706,502 327,567
Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total approved guarantee line at the end of the Total actual guarantee balance at the end
8,467,745 4,310,100
Reporting Period (A3+B3+C3) of the Reporting Period (A4+B4+C4)
Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company 54.77%
Of which:
Amount of guarantees provided for shareholders, the actual controller and their related parties
(D)
Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset
ratio over 70% (E)
Portion of the total guarantee amount in excess of 50% of net assets (F) 205,428
Total amount of the three kinds of guarantees above (D+E+F) 205,428
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Note：The Company provided a joint-liability guarantee for a syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. In the meantime, the Company, Hefei BOE Optoelectronics
Technology Co., Ltd. and Beijing BOE Display Technology Co., Ltd. provided guarantees for the said syndicated loan for Erdos Yuansheng Optoelectronics Co., Ltd. with their stakes in Erdos
Haosheng Energy Investment Co., Ltd. as the pledges, so C1, C2, C3 and C4 are 0.
Explanation on guarantee that adopts complex method
N/A
(2) Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
No such cases in the Reporting Period.
3. Entrusted cash management
(1) Entrusted asset management
√ Applicable □ Not applicable
Unit:RMB’0,000 Yuan
Actual Actual Actually
Amount
principal profit and received/paid
Whether it is provided
Value of amount loss profit/loss
a Commencement Termination Method of for Projected
Name of trustee Product type entrusted recovered amount for amount for
related-party date date remuneration impairment income
assets for the the the
transaction (if
Reporting Reporting Reporting
applicable)
Period Period Period
Industrial and Bank wealth 48,000 09/30/2015 01/27/2016 48,000 0 631 137 631
Pledged
Commercial No management
principal
Bank of China product
Industrial and Bank wealth 20,000 12/01/2015 03/29/2016 20,000 0 243 178 243
Pledged
Commercial No management
principal
Bank of China product
Industrial and Bank wealth 25,000 12/11/2015 04/08/2016 25,000 0 304 248 304
Pledged
Commercial No management
principal
Bank of China product
Industrial and Bank wealth 10,000 02/05/2016 04/07/2016 10,000 0 61 61 61
Pledged
Commercial No management
principal
Bank of China product
Industrial and No Bank wealth 10,000 02/03/2016 05/10/2016 Pledged 10,000 0 97 97 97
BOE Technology Group Co., Ltd. Annual Report 2016
Commercial management principal
Bank of China product
China Bank wealth 12,800 05/27/2016 08/27/2016 12,800 0 98 98 98
Pledged
Everbright Bank No management
principal
product
China Bank wealth 10,000 07/29/2016 10/29/2016 10,000 0 75 75 75
Pledged
Everbright Bank No management
principal
product
China Bank wealth 13,000 08/29/2016 11/29/2016 13,000 0 98 98 98
Pledged
Everbright Bank No management
principal
product
China Bank wealth 12,300 08/26/2016 11/26/2016 12,300 0 92 92 92
Pledged
Everbright Bank No management
principal
product
China Bank wealth 20,000 03/04/2016 04/05/2016 20,000 0 47 47 47
Pledged
Development No management
principal
Bank product
China Bank wealth 10,000 05/30/2016 06/30/2016 10,000 0 23 23 23
Pledged
Development No management
principal
Bank product
China Bank wealth 20,000 07/08/2016 08/08/2016 20,000 0 44 44 44
Pledged
Development No management
principal
Bank product
China Bank wealth 20,000 06/28/2016 09/28/2016 20,000 0 146 146 146
Pledged
Development No management
principal
Bank product
China Bank wealth 100,000 08/16/2016 09/15/2016 100,000 0 218 218 218
No Pledged
Development management
BOE Technology Group Co., Ltd. Annual Report 2016
Bank product principal
China Bank wealth 18,800 06/03/2016 09/01/2016 18,800 0 134 134 134
Pledged
Development No management
principal
Bank product
China Bank wealth 35,000 07/21/2016 10/24/2016 35,000 0 264 264 264
Pledged
Development No management
principal
Bank product
China Bank wealth 20,000 09/02/2016 10/08/2016 20,000 0 52 52 52
Pledged
Development No management
principal
Bank product
China Bank wealth 100,000 09/19/2016 10/24/2016 100,000 0 254 254 254
Pledged
Development No management
principal
Bank product
China Bank wealth 25,000 08/16/2016 11/16/2016 25,000 0 183 183 183
Pledged
Development No management
principal
Bank product
China Bank wealth 40,000 08/31/2016 11/29/2016 40,000 0 286 286 286
Pledged
Development No management
principal
Bank product
China Bank wealth 50,000 08/09/2016 11/07/2016 50,000 0 358 358 358
Pledged
Development No management
principal
Bank product
Bank wealth 6,000 11/09/2016 05/05/2017 0 0 90 64 0
Pledged
Huishang Bank No management
principal
product
Bank wealth 15,000 09/24/2015 01/20/2016 Pledged 15,000 0 213 34 213
Huishang Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 20,000 09/11/2015 01/06/2016 20,000 0 269 12 269
Pledged
Huishang Bank No management
principal
product
Bank wealth 15,000 11/13/2015 03/09/2016 15,000 0 192 112 192
Pledged
Huishang Bank No management
principal
product
Bank wealth 30,000 01/15/2016 05/05/2016 30,000 0 319 319 319
Pledged
Huishang Bank No management
principal
product
Bank wealth 30,000 05/25/2016 08/25/2016 30,000 0 253 253 253
Pledged
Huishang Bank No management
principal
product
China Bank wealth 100,000 05/27/2016 07/07/2016 100,000 0 315 315 315
Pledged
Construction No management
principal
Bank product
Bank of Bank wealth 20,000 11/15/2016 12/20/2016 20,000 0 59 59 59
Pledged
Communications No management
principal
product
Minsheng Bank Bank wealth 55,000 05/24/2016 07/26/2016 55,000 0 313 313 313
Pledged
No management
principal
product
Minsheng Bank Bank wealth 185,000 05/26/2016 08/25/2016 185,000 0 1,545 1,545 1545
Pledged
No management
principal
product
The Agricultural Bank wealth 5,000 08/31/2016 11/29/2016 Pledged 5,000 0 35 35 35
No
Bank of China management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
The Agricultural Bank wealth 15,000 10/19/2016 12/20/2016 15,000 0 69 69 69
Pledged
Bank of China No management
principal
product
Bank wealth 20,000 04/01/2016 04/29/2016 20,000 0 52 52 52
Pledged
Ping An Bank No management
principal
product
Bank wealth 98,400 04/01/2016 04/29/2016 98,400 0 257 257 257
Pledged
Ping An Bank No management
principal
product
Bank wealth 20,000 03/11/2016 05/18/2016 20,000 0 116 116 116
Pledged
Ping An Bank No management
principal
product
Bank wealth 20,000 05/04/2016 05/18/2016 20,000 0 21 21 21
Pledged
Ping An Bank No management
principal
product
Bank wealth 10,000 04/08/2016 05/17/2016 10,000 0 35 35 35
Pledged
Ping An Bank No management
principal
product
Bank wealth 128,400 05/06/2016 05/20/2016 128,400 0 138 138 138
Pledged
Ping An Bank No management
principal
product
Bank wealth 10,000 05/26/2016 06/02/2016 10,000 0 5 5 5
Pledged
Ping An Bank No management
principal
product
Bank wealth 128,400 05/25/2016 06/08/2016 Pledged 128,400 0 135 135 135
Ping An Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 40,000 05/24/2016 06/23/2016 40,000 0 104 104 104
Pledged
Ping An Bank No management
principal
product
Bank wealth 40,000 05/27/2016 06/24/2016 40,000 0 81 81 81
Pledged
Ping An Bank No management
principal
product
Bank wealth 40,000 06/30/2016 07/28/2016 40,000 0 101 101 101
Pledged
Ping An Bank No management
principal
product
Bank wealth 20,000 06/24/2016 07/22/2016 20,000 0 49 49 49
Pledged
Ping An Bank No management
principal
product
Bank wealth 5,000 07/15/2016 08/12/2016 5,000 0 11 11 11
Pledged
Ping An Bank No management
principal
product
Bank wealth 20,000 05/27/2016 08/26/2016 20,000 0 162 162 162
Pledged
Ping An Bank No management
principal
product
Bank wealth 128,400 06/15/2016 09/13/2016 128,400 0 1,061 1,061 1061
Pledged
Ping An Bank No management
principal
product
Bank wealth 10,000 10/09/2015 01/07/2016 10,000 0 108 7 108
Pledged
SPD Bank No management
principal
product
Bank wealth 30,400 10/22/2015 01/20/2016 Pledged 30,400 0 322 68 322
SPD Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 10,000 11/13/2015 01/20/2016 10,000 0 97 27 97
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 11/26/2015 02/24/2016 30,000 0 318 191 318
Pledged
SPD Bank No management
principal
product
Bank wealth 16,600 11/13/2015 02/11/2016 16,600 0 176 80 176
Pledged
SPD Bank No management
principal
product
Bank wealth 20,000 11/30/2015 02/29/2016 20,000 0 214 139 214
Pledged
SPD Bank No management
principal
product
Bank wealth 25,000 12/14/2015 03/14/2016 25,000 0 268 215 268
Pledged
SPD Bank No management
principal
product
Bank wealth 35,000 12/21/2015 03/20/2016 35,000 0 371 326 371
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 12/23/2015 03/22/2016 30,000 0 333 300 333
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 02/26/2016 04/26/2016 30,000 0 207 207 207
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 03/24/2016 04/25/2016 Pledged 30,000 0 108 108 108
SPD Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 10,000 01/11/2016 04/11/2016 10,000 0 112 112 112
Pledged
SPD Bank No management
principal
product
Bank wealth 15,000 03/11/2016 04/11/2016 15,000 0 55 55 55
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 03/25/2016 04/24/2016 30,000 0 101 101 101
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 03/25/2016 04/24/2016 30,000 0 101 101 101
Pledged
SPD Bank No management
principal
product
Bank wealth 20,000 01/28/2016 04/27/2016 20,000 0 212 212 212
Pledged
SPD Bank No management
principal
product
Bank wealth 26,600 02/25/2016 04/25/2016 26,600 0 184 184 184
Pledged
SPD Bank No management
principal
product
Bank wealth 10,000 03/11/2016 04/11/2016 10,000 0 25 25 25
Pledged
SPD Bank No management
principal
product
Bank wealth 20,000 03/11/2016 05/10/2016 20,000 0 138 138 138
Pledged
SPD Bank No management
principal
product
Bank wealth 106,600 04/29/2016 05/18/2016 Pledged 106,600 0 172 172 172
SPD Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 20,000 05/12/2016 05/19/2016 20,000 0 14 14 14
Pledged
SPD Bank No management
principal
product
Bank wealth 25,000 04/14/2016 05/14/2016 25,000 0 84 84 84
Pledged
SPD Bank No management
principal
product
Bank wealth 25,000 04/14/2016 05/16/2016 25,000 0 90 90 90
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 05/04/2016 05/18/2016 30,000 0 36 36 36
Pledged
SPD Bank No management
principal
product
Bank wealth 25,000 03/17/2016 05/16/2016 25,000 0 173 173 173
Pledged
SPD Bank No management
principal
product
Bank wealth 10,000 04/14/2016 05/16/2016 10,000 0 36 36 36
Pledged
SPD Bank No management
principal
product
Bank wealth 30,000 05/05/2016 05/18/2016 30,000 0 33 33 33
Pledged
SPD Bank No management
principal
product
Bank wealth 10,000 05/30/2016 06/29/2016 10,000 0 22 22 22
Pledged
SPD Bank No management
principal
product
Bank wealth 60,000 05/27/2016 06/27/2016 Pledged 60,000 0 189 189 189
SPD Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 40,000 05/27/2016 06/27/2016 40,000 0 126 126 126
Pledged
SPD Bank No management
principal
product
Bank wealth 70,000 05/25/2016 07/24/2016 70,000 0 426 426 426
Pledged
SPD Bank No management
principal
product
Bank wealth 80,000 05/25/2016 07/24/2016 80,000 0 487 487 487
Pledged
SPD Bank No management
principal
product
Bank wealth 10,000 07/08/2016 08/07/2016 10,000 0 31 31 31
Pledged
SPD Bank No management
principal
product
Bank wealth 55,000 07/29/2016 08/29/2016 55,000 0 173 173 173
Pledged
SPD Bank No management
principal
product
Bank wealth 80,000 05/25/2016 08/23/2016 80,000 0 730 730 730
Pledged
SPD Bank No management
principal
product
Bank wealth 15,000 08/11/2016 09/12/2016 15,000 0 47 47 47
Pledged
SPD Bank No management
principal
product
Bank wealth 10,000 07/06/2016 10/08/2016 10,000 0 77 77 77
Pledged
SPD Bank No management
principal
product
Bank wealth 20,000 08/17/2016 09/14/2016 Pledged 20,000 0 46 46 46
SPD Bank No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank wealth 40,000 09/01/2016 10/08/2016 40,000 0 144 144 144
Pledged
SPD Bank No management
principal
product
Bank wealth 100,000 09/02/2016 10/08/2016 100,000 0 335 335 335
Pledged
SPD Bank No management
principal
product
Industrial Bank Bank wealth 10,000 12/28/2015 01/28/2016 10,000 0 32 28 32
Pledged
No management
principal
product
Industrial Bank Bank wealth 10,000 01/28/2016 05/20/2016 10,000 0 150 150 150
Pledged
No management
principal
product
Industrial Bank Bank wealth 10,000 05/30/2016 07/30/2016 10,000 0 47 47 47
Pledged
No management
principal
product
The Agricultural Bank wealth 10,000 06/30/2016 09/28/2016 10,000 0 76 76 76
Pledged
Bank of China No management
principal
product
Bank of China Bank wealth 10,000 08/23/2016 09/20/2016 10,000 0 19 19 19
Pledged
No management
principal
product
Bank of China Bank wealth 15,000 07/13/2016 10/13/2016 15,000 0 113 113 113
Pledged
No management
principal
product
Bank of China Bank wealth 15,000 07/13/2016 11/10/2016 Pledged 15,000 0 148 148 148
No
management principal
BOE Technology Group Co., Ltd. Annual Report 2016
product
Bank of China Bank wealth 5,000 12/01/2016 12/30/2016 5,000 0 10 10 10
Pledged
No management
principal
product
Bank of China Bank wealth 15,000 11/14/2016 12/30/2016 15,000 0 49 49 49
Pledged
No management
principal
product
China Citic Bank wealth 10,000 05/26/2016 06/23/2016 10,000 0 20 20 20
Pledged
Bank No management
principal
product
China Citic Bank wealth 8,000 08/26/2016 11/25/2016 8,000 0 58 58 58
Pledged
Bank No management
principal
product
Total 3,252,700 -- -- -- 3,246,700 0 17,351 15,336 --
Source of entrusted assets All from the Company's own funds
Cumulative amount of principal and revenue
overdue
Litigation involved (if applicable) Not applicable
Disclosure date of the announcement about the 04/26/2016
board’s consent for the asset management
entrustment (if any)
Disclosure date of the announcement about the 05/21/2016
general meeting’s consent for the asset
management entrustment (if any)
Any plan for asset management entrustment in Yes
the future
Note：The amount of entrusted assets approved by Company shareholders' meeting is 10 billion Yuan,which can be recycled.
BOE Technology Group Co., Ltd. Annual Report 2016
(2) Entrusted loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other significant contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVIII. Social reponsibilities
1. Implementation of social responsibility of targeted measures in poverty alleviation
□ Applicable √ Not applicable
2. Condition of implementing other social responsibility
Earning from society, giving back to society and existing with society harmoniously are the faith which BOE always persists. For
many years, BOE undertakes social responsibilities, integrates into local area and devotes into social public welfare actively.
BOE establishes volunteer service system which covers each entity. BOE volunteers become the link between BOE and community,
they practice what they advocate and pass on love and faith. The footprint of volunteer service has reached throughout the country. In
2016, BOE donated RMB 1 million Yuan to China Volunteer Service Foundation for supporting the development of social public
welfare and volunteer service business.
In 2016, BOE launched several public welfare programs of education such as “lighting the growth road”, “rain and dew plan” and
“dream space” etc. They are used to supporting poverty students and improve investment of educational resources in poverty area.
The investment throughout the year is RMB 186,291 Yuan.Plus,BOE has signed long-term cooperation agreement with Yan’an
Human resources and social security bureau,and promise that in the future 3 years,they would offer more than 400 employment
positions to employees who are compatible with job requirements.In 2016,BOE has successfully arranged 48 employess relevant jobs
in company.
Details can be seen in 2016 Social Responsibility Report of BOE Technology Group Co., Ltd. which was disclosed on 25 Apr. 2017.
BOE Technology Group Co., Ltd. Annual Report 2016
If listed company and its subsidiaries belong to the key pollution discharge units which are published by environmental protection department
Yes
Executed Approved
Name of Name of Main Quantity of Distribution Total Weight Excessive
Emission Emission Total Weight
Company or Pollutant and Discharge Method Emission Information of of Emission Emission
Concentration Standard of of Emission
subsidiary Distinctive Pollutant Outlet Emission Outlet (t) Condition
Pollutant (t)
COD Standard emission 171.17mg/L 500mg/L 54.33 tons 702.68 tons
Beijing BOE
after being treated South gate of
Optoelectronics
by 2 factory, northwest None
Technology Co., Ammonia nitrogen 22.29 mg/L 45 mg/L 0.3 tons 55.93 tons
sewage treatment corner of factory
Ltd.
system
COD Standard emission 141mg/L 500mg/L 164.18 tons 490.51 tons
Chengdu BOE
after being treated
Optoelectronics North side of
by 1 None
Technology Co., Ammonia nitrogen factory 21.2mg/L 45 mg/L 24.68 tons 25.249 tons
sewage treatment
Ltd.
system
COD Standard emission 39.41mg/L 380mg/L 155.92 tons 1059 tons None
Heifei BOE
after being treated
Optoelectronics Northwest corner
by
Technology Co., Ammonia nitrogen of factory 1.97mg/L 30mg/L 7.95 tons 99.2 tons None
sewage treatment
Ltd.
system
Standard emission East gate of
Beijing BOE COD 135 mg/L
after being treated factory
Display
by 2 Behind No. 8 500mg/L 1291.042 tons 1618.8 tons None
Technology Co.,
COD sewage treatment Building of 97 mg/L
Ltd.
system factory
BOE Technology Group Co., Ltd. Annual Report 2016
East gate of
Ammonia nitrogen 9.91mg/L
factory
Behind No. 8 45 mg/L 59.56 tons 134.4 tons None
Ammonia nitrogen Building of 2.59mg/L
factory
Standard emission Northeast gate of
Hefei Xinsheng COD 57.56 mg/l 380mg/L 284.86 tons 1621.97 tons None
after being treated factory
Optoelectronics
by
Technology Co., Northeast gate of
Ammonia nitrogen sewage treatment 12.31 mg/l 30mg/L 62.9 tons 128.08 tons None
Ltd. factory
system
Standard emission North side of
COD 30.5mg/L 500mg/L 58.5 tons 713.81 tons None
Erdos Yuansheng after being treated factory
Optoelectronics by
North side of
Co., Ltd. Ammonia nitrogen sewage treatment 0.83mg/L 45mg/L 1.5 tons 76.82 tons None
factory
system
Standard emission South side of
Chongqing BOE COD 70.32mg/L 400mg/L 418.13 tons 727.08 tons None
after being treated factory
Optoelectronics
by
Technology Co., South side of
Ammonia nitrogen sewage treatment 7.56mg/L 30mg/L 42.98 tons 79.424 tons None
Ltd. factory
system
BOE Technology Group Co., Ltd. Annual Report 2016
Construction of pollution prevention equipment and operation condition
During report period, the Company does not have important environmental problem and builds strict environmental management
system. Based on DSH three business groups, the Company improves environmental management structure constantly, specifies
responsibility of environmental management at each level and prevents the unfavorable influence of enterprise operation on
environment maximally. The Company has internal organizational structure to supervise overall environmental performance of the
Company, formulate environmental management regulations and targets, carry out regular supervision for the environmental
management condition of subordinate enterprises and promote the implementation of environmental management work.
Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial waste
water and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately
according to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is
collected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,
industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household
waste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is
discharged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and the
concentration and total amount of drainage satisfy the requirements of national and local relevant standards.
In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas during
production process, including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas
etc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission concentration
and total amount satisfy the national and local relevant standards.
“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),
renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance with
requirements of national relevant environmental regulations and the registration, assessment, permission and restriction system of
chemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which are
generated by each subordinate enterprise can be divided into general industrial solid waste, hazardous waste materials and household
waste materials, and they all handed over to qualified recycler for regular treatment.
The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for
processing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemical
and other materials maximally and reducing the discharge of waste water and waste materials. According to the principle of using
water by separating, the RO concentrated water with higher salt content (deionized water which is got by osmose process) which is
generated during preparing original pure water can be used in pure water preparing system after treatment, the remain RO
concentrated water is flowed into recycled water system as exhaust gas purifying, cycling and cooling water, replenishing water of
sewage treatment system and household flushing water for toilet, watering water for road, water for greening. The drainage water
which is generated during ultrapure water preparing process is used for humidification of air conditioning system.
At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollution
management standard, hazardous waste materials management standard, energy management standard etc. The methods specify the
operation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervising
mechanism, in order to ensure the continuous stable operation of each system.
BOE Technology Group Co., Ltd. Annual Report 2016
In recent years, the environmental emission index of the Company is up to national standards such as Sewage Comprehensive
Discharge Standard (GB8979-1996), Air Pollutant Comprehensive Emission Standard (GB89879-1996), Industrial Enterprise
Environmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards without any emission
and discharge which exceed the standards. The Company will continue to promote the environmental management, devote to forging
green factory and improve environmental management level constantly.
If social responsibility report is published
√ Yes □ No
Corporate Social Responsibility Report
Nature of If information If information If information Standard disclosed in report
Corporate about environment about society about corporate
National standard Foreign
is included is included governance is
standard
included
Others Yes Yes Yes 1. Guide for Compiling China GRI
Corporate Social Responsibility
Report
2. Guide for Standard Operation
of Listed Company in Main
Board of Shenzhen Stock
Exchange
Explanation of specific situation
1. If the Company passes certification of environmental
Yes
management system (ISO14001)
2. Annual environmental investment and expenditure amount
42,097
of the Company (RMB’0,000)
In recent years, the environmental emission index of BOE Group is
successively up to national standards such as Sewage
Comprehensive Discharge Standard (GB8979-1996), Air Pollutant
Comprehensive Emission Standard (GB89879-1996), Industrial
3. Emission reduction performance of “waste gas, waste
Enterprise Environmental Noise Emission Standard within Factory
water, waste residue” of the Company
Boundary (GB12348-2008), The People’s Republic of China
Prevention and Treatment Law of Environmental Pollution of Solid
Waste etc and local standards without any emission and discharge
which exceed the standards.
4. The investment of the Company in improving personal
knowledge and skill of employee for improving career 2,806
development ability of employee (RMB’0,000)
5. The amount of social public welfare donation (fund, goods
118.63
and materials, free professional service) of the Company
BOE Technology Group Co., Ltd. Annual Report 2016
XIX Other significant events
√ Applicable □ Not applicable
1. According to the Notice About Subscription of Additional Shares of Varitronix International Limited(Notice No.: 2016-011)
released on February 4, 2016 by the company, the Company signed the Subscription Agreement Between Varitronix International
Limited and BOE Technology Group Co., Ltd on February 3, 2016 with Varitronix International Limited that the Company funded
from the Company's own funds and subscribed over 50% shares of Varitronix International Limited by the way of subscribing
additional shares to integrate its superior resources and accelertaely implement the global strategy of the vehicle display business of
the company. The company had completed the delivery of stock options for Varitronix International Limited on April 28, 2016 in
accordance with the Notice About Settlement for Subscription of Additional Shares of Varitronix International Limited (Notice No.:
2016-043) released on April 29, 2016. After the delivery, the Company held 400 million shares of Varitronix International Limited
which accounts for 54.70% of total shares and became its controlling shareholder. For the details, please see the related
announcement.
2. According to the Notice About the Coupon Rate of Company Securities (the First) Issued publicly for Qualified Investors in
2016(Notice No.: 2016-024) released on March 21, 2016 by the company, the Company issued publicly Securities(the First)
(“16BOE01” for short, stock code“112358”) 10,000 million for Qualified Investors in 2016, and the final coupon rate of the
securities was 3.15%.
3. On 21 May, 2016, the Company disclosed Announcement on Resolution of 2015 Shareholders Meeting (Announcement No. :
2016-045), Announcement on Resolution of the 1st Meeting of the 8th Board of Directors (Announcement No. : 2016-047) and
Announcement on Resolution of the 1st Meeting of the 8th Board of Supervisors (Announcement No. : 2016-048). The meeting
passed the relevant proposal for general election and finished general election. Specific information can be seen in relevant
announcements in detail.
4. The Company disclosed Plan about Repurchasing Part of Social Public Shares of the Company on 15 Jul. 2016, the 3rd temporary
shareholders meeting in 2016 has deliberated and approved the plan. The Company implemented the proposal about repurchasing
part of social public shares for the first time in 20 September. Up to 31 Dec. 2016, the Company repurchased 88,692,299 shares of
A-share and 43,848,526 shares of B-share accumulatively. Specific information can be seen in Announcement on Progress of
Repurchasing Part of Social Public Shares (Announcement No. : 2017-001) in detail which was disclosed on 4 Jan. 2017 by the
Company.
5. On 31 Oct. 2016, the Company disclosed Announcement on Signing Investment Framework Agreement (Announcement No.:
2016-075), the Company signed Investment Framework Agreement on the 6th AMOLED (Soft) Production Line Project in
Mianyang with Mianyang Municipal People’s Government. It is planned to invest RMB 46.5 billion Yuan in building a 6th
AMOLED (soft) production line in Mianyang, Sichuan. The main product positioning is AMOLED soft display product, and the
production line is used for producing high-end phone display and newly-developing mobile display product. The 4rd temporary
shareholders meeting in 2016 has deliberated and approved the issue. Specific information can be seen in Announcement on
Investing in Construction of the 6th AMOLED (Soft) Production Line Project (Announcement No.: 2016-084) in detail.
6. In order to fairly present the value of various assets, as per the Accounting Standards for Business Enterprises of the Ministry of
Finance, as well as the Company’s accounting policies and estimates, the Company carried out an impairment test on its assets with
any sign of impairment at the end of 2016. Upon the test, the Company’s asset impairment provisions as of the end of 2016 stood at
RMB2,497.2778 million Yuan, up by RMB251.8448 million Yuan from the opening amount.
XX Significant events of subsidiaries
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
Section VI Share Changes and Information about Shareholders
I. Changes in shares
1. Change in shares
Unit: Share
Before the change Increase/decrease (+, -) After the change
Capitalization
Item Newly issue
Amount Proportion Bonus shares of public Other Subtotal Amount Proportion
share reserves
I. Restricted shares 10,597,612,766 30.15% 0 0 0 -675,346,658 -675,346,658 9,922,266,108 28.23%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned corporations 10,595,502,993 30.14% 0 0 0 -675,026,803 -675,026,803 9,920,476,190 28.22%
3. Shares held by other domestic investors 2,109,773 0.01% 0 0 0 -319,855 -319,855 1,789,918 0.01%
Among which: shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by domestic individuals 2,109,773 0.01% 0 0 0 -319,855 -319,855 1,789,918 0.01%
4. Shares held by foreign investors 0 0.00% 0 0 0 0 0 0 0.00%
Among which: Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by foreign individuals 0 0.00% 0 0 0 0 0 0 0.00%
II. Non-restricted shares 24,555,454,977 69.85% 0 0 0 675,346,658 675,346,658 25,230,801,635 71.77%
1. RMB ordinary shares 23,353,364,808 66.43% 0 0 0 675,346,658 675,346,658 24,028,711,466 68.35%
BOE Technology Group Co., Ltd. Annual Report 2016
2. Domestically listed foreign shares 1,202,090,169 3.42% 0 0 0 0 0 1,202,090,169 3.42%
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 35,153,067,743 100.00% 0 0 0 0 0 35,153,067,743 100.00%
Reasons for changes in shares
√ Applicable □ Not applicable
1. On 11 Jan. 2016, the shareholders of the Company eased restrictions on restricted shares, the amount of released restricted shares is 675,026,803.
2. On 22 Oct. 2015, senior managers changed and all shares they held are transferred into restricted shares. Up to the end of report period, the restricted period of this part of shares expired, this
part of shares transferred into unrestricted shares, 517,405 shares in total. On 20 May, 2015, the term of office for board of directors and board of supervisors of the Company was changed,
directors, supervisors and senior managers changed, 75% of the shares which the new directors, supervisors and senior managers held were transferred into restricted shares; all shares which the
outgoing directors, supervisors and senior managers held were transferred into restricted shares, increasing 384,150 restricted shares in total. The total amount of decreased restricted shares was
133,255.
3. On 20 May, 2016, the term of Senior Vice President of the Company Li Xuezheng expired and he left his post; on 20 Nov. 2016, the restricted shares dropped by 186,600 shares.
Approval of share changes
□ Applicable √ Not applicable
Particulars about transferring ownership of shares
□ Applicable √ Not applicable
Influence of changes in shares on financial indicators of the recent year or the recent term including basic EPS, diluted EPS, net asset value per share belonging to common stock holders of the
Company, etc.
□ Applicable √ Not applicable
Other contents that the Company thinks it is necessary to disclose or that securities regulatory institutions demand to disclose
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
2. Change of the restricted shares
√ Applicable □ Not applicable
Unit: share
Restricted shares Restricted Restricted Restricted shares Restricted
Name of the Restricted
amount at the shares relieved shares increased amount at the shares
shareholders reasons
period-begin of the period of the period period-end relieved date
Beijing 4,063,333,333 0 0 4,063,333,333 04/10/2017
State-owned
Capital Non-public
Operation and issuance
Management
Center
Chongqing 3,000,000,000 0 0 3,000,000,000 04/10/2017
Ezcapital
Opto-electron Non-public
ics Industry issuance
Investment
Co., Ltd.
Hefei 2,857,142,857 0 0 2,857,142,857 04/10/2017
Jianxiang Non-public
Investment issuance
Co., Ltd.
Hefei Rongke 675,026,803 675,026,803 0 0 Voluntarily 01/11/2016
Project committed to
Investment add the selling
Co., Ltd. restriction
Senior 2,109,773 704,005 384,150 1,789,918 Change in 11/20/2016
Executives Senior
shareholdings Executives
Total 10,597,612,766 675,346,658 384,150 9,922,266,108 -- --
II. Issuance and listing of securities
1. Securities issuance in Reporting Period (excluding preferred stock)
√ Applicable □ Not applicable
Name of the
Approved listing
shares and their Issuance price Expiration date of the
Issuance date Issuance number Listing date trading number
derivative (or interest rate) trading
approved
securities
BOE Technology Group Co., Ltd. Annual Report 2016
shares class
No
Convertible bonds, and Convertible bonds, bonds class in separation deal
BOE Technology
Group Co., Ltd
publicly issued
Company
03/21/2016 3.15% 100,000,000 04/26/2016 100,000,000 03/21/2021
securities(the
First) for
Qualified
Investors in 2016
Other derivative securities
No
Explanation of securities issuance (preferred shares are not included)
The bonds issued by the Company are used for supplementing working capital of the Company, optimizing financing structure and
improving the capital condition of the Company. The Company is developed into integrated services architecture of display device,
intelligent product and service, health service from single display device business eventually to achieve the integration of software
and hardware, application integration and service transition. The Company will integrate to establish the intelligent product and
service business group with the main direction of “internet of things and artificial intelligence” and the health service business group
which is characterized by “information medicine and big data” on the basis of constantly strengthening the core ability of display
business group. Through the financing arrangement, the requirement of operating capital of the Company can be satisfied to a certain
extent, which helps the development and expansion of the corporate business and strengthens the market development and risk
resistance ability.
2. Changes of the Company’s share number and structure, as well as the corresponding changes in its
asset-liability structure
√ Applicable □ Not applicable
During the Reporting Period, the Company publicly issued 10,000million securities for Qualified Investors. At the end of Reporting
Period, the total assets increased from RMB 152,592,894,442 Yuan to RMB205,135,011,042 Yuan. The asset-liability ratio increased
from 48.65% to 55.14%.
3. List of the existing internal workers’ shares
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
III. Shareholders and actual controller
Total number of shareholders and their shareholding situation
Unit: share
Total number of common 1,185,732（including 1,140,580 A-share holders Total number of common shareholders at the prior 1,056,889 (including 1,014,828 A-share holders
shareholders at the period-end and 45,152 B-share holders） month-end before the disclosure of this Report and 42,061 B-share holders）
Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders
Shareholding Increase/decrease Number of Pledged or frozen shares
Nature of Total shares held at Number of restricted
Name of shareholder percentage during the non-restricted Status of Number of
shareholder the period-end shares held
(%) Reporting Period shares held shares shares
Beijing State-owned Capital 11.56% 4,063,333,333 0 4,063,333,333
State-owned
Operation and Management
Corporation
Center
Chongqing Ezcapital 8.53% 3,000,000,000 0 3,000,000,000 0 Pledged 955,000,000
State-owned
Opto-electronics Industry
Corporation
Investment Co., Ltd.
Hefei Jianxiang Investment Co., State-owned 8.13% 2,857,142,857 0 2,857,142,857
Ltd. Corporation
Hua An Fund-ICBC-Zhongrong Other 4.45% 1,564,126,904 0 0 1,564,126,904
International
Trust-Zhongrong-Assembled
Funds Trust Plan of Rongjing
No. 1
Beijing State-owned 3.53% 1,241,423,641 564,000,000 0 1,241,423,641
Economic-Technological Corporation
Investment & Development
BOE Technology Group Co., Ltd. Annual Report 2016
Corp.
China Securities Finance Corp. Other 2.49% 876,936,082 -174,142,849 0 876,936,082
Beijing BOE Investment & State-owned 2.34% 822,092,180 0 0 822,092,180
Development Co., Ltd. Corporation
Hefei Rongke Project State-owned 1.92% 675,026,803 0 0 675,026,803
Investment Co., Ltd. Corporation
National Social Security Fund Other 0.80% 279,999,795 279,999,795 0 279,999,795
Portfolio 108
Beijing Electronics Holdings On behalf 0.78% 273,735,583 0 0 273,735,583
Co., Ltd. of the
government
Strategic investors or general corporations
becoming top-ten shareholders due to placing N/A
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
shareholders above
the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing
Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest
30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation
Protocol of Voting Right.
5. Except for 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 shareholders
BOE Technology Group Co., Ltd. Annual Report 2016
Type of shares
Name of shareholder Number of non-restricted shares held at the period-end
Type Number
Hua An Fund-ICBC-Zhongrong International 1,564,126,904 1,564,126,904
Trust-Zhongrong-Assembled Funds Trust Plan of Rongjing RMB ordinary shares
No. 1
Beijing Economic-Technological Investment & 1,241,423,641 1,241,423,641
RMB ordinary shares
Development Corp.
China Securities Finance Corp. 876,936,082 RMB ordinary shares 876,936,082
Beijing BOE Investment & Development Co., Ltd. 822,092,180 RMB ordinary shares 822,092,180
Hefei Rongke Project Investment Co., Ltd. 675,026,803 RMB ordinary shares 675,026,803
National Social Security Fund Portfolio 108 279,999,795 RMB ordinary shares 279,999,795
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary shares 273,735,583
Central Huijin Asset Management Co., Ltd. 248,305,300 RMB ordinary shares 248,305,300
Founder BEA Trust Co., Ltd- Founder BEAHengsheng 210,289,500 210,289,500
RMB ordinary shares
No.30 Securities Investment Single Fund Trust
Founder BEA Trust Co., Ltd - Founder BEAHengsheng 207,960,100 207,960,100
RMB ordinary shares
No.36 Single Fund Trust
1. Beijing State-owned Capital Operation and ManagementCenter held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its
controlling shareholder.
Related or acting-in-concert parties among the top ten 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity
non-restrictedly tradable share holders and between the top Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares
ten non-restrictedly tradable share holders and the top ten held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of
shareholders the shareholders.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed
over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management
Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and
BOE Technology Group Co., Ltd. Annual Report 2016
usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd.
through the agreement according to Implementation Protocol of Voting Right.
5. The investment counselor of both Fangzheng East Asia EntrustmentCo., Ltd- Fangzheng East Asia Hengsheng No.30 Securities
Investment with Single Fund Entrustment and Fangzheng East Asia EntrustmentCo., Ltd- Fangzheng East AsiaHengsheng No.36
Single Fund Entrustmen belong to Zhengjin Capital Management.
6. Except for relationship among the above shareholders, the Company is not aware of whether the other top ten shareholders exist
associated relationship or not, or they are persons acting in concert or not.
Top ten common shareholders conducting securities N/A
margin trading (if any) (see Note 4)
Did any top 10 common shareholder or any top 10 common shareholder with non-restricted share of the Company carry out an agreed buy-back in the Reporting Period?
□ Yes √ No
No top 10 common shareholder or any top 10 common shareholder with non-restricted share of the Company carried out any agreed buy-back in the Reporting Period.
2. Particulars about the controlling shareholder
Nature of the controlling shareholders: local state-controlled
Type of the controlling shareholders: corporation
Legal representative / Unified social credit
Name of controlling shareholder Date of establishment Main business scope
company principal code
Operation and management of state-owned assets within authorization;
communications equipments, audio & visual products for broadcasting and
television; computer and its supporting equipments and the applied products;
electronic raw material and components; home electric appliances and
Beijing Electronics Holdings Co., Ltd. Wang Yan 04/08/1997 91110000633647998H
electronic products; electronic surveying instruments and meters; mechanical
and electric equipments; electronic transportation products and investment in
business fields other than electronics and its management; development of
real estate, lease and sales of commodity apartments; property management.
Situation of the equities of the other Beijing Electronic Shareholding Co., Ltd. held 363,429,503shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the
BOE Technology Group Co., Ltd. Annual Report 2016
domestic and overseas listed companies total shares amount of Electronic City; it held 42,287,460 shares of A share of North Huachuang (originally “Seven Star Electronics”)(Stock Code:
for the share controlling and share 002371), which accounted for 9.23% of the total shares of North Huachuang. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A
participating of the controlling share of North Huachuang through holding the subsidiary Beijing Seven Star Huadian Technology GroupCo., Ltd, which covered 38.90% of the total
shareholders during the Reporting shares amount of North Huachuang.
Period
Change of the controlling shareholder during the Reporting Period
□ Applicable √ Not applicable
There was no change of the controlling shareholder during the Reporting Period.
3. Information about the actual controller
Nature of the actual controller: Local management organization for state-owned assets
Type of the actual controller: Corporation
Legal representative / Unified social credit
Name of actual controller Date of establishment Business scope
company principal code
Operation and management of state-owned assets within authorization;
communications equipments, audio & visual products for broadcasting and
television; computer and its supporting equipments and the applied products;
electronic raw material and components; home electric appliances and
Beijing Electronics Holdings Co., Ltd. Wang Yan 04/08/1997 91110000633647998H
electronic products; electronic surveying instruments and meters; mechanical
and electric equipments; electronic transportation products and investment in
business fields other than electronics and its management; development of
real estate, lease and sales of commodity apartments; property management.
Beijing Electronic Shareholding Co., Ltd. held 363,429,503 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the
Situation of the equities of the other
total shares amount of Electronic City; it held 42,287,460 shares of A share of North Huachuang (originally “Seven Star Electronics”)(Stock Code:
domestic and overseas listed
002371), which accounted for 9.23% of the total shares of North Huachuang. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A
companies of actual controller during
share of North Huachuang through holding the subsidiary Beijing Seven Star Huadian Technology GroupCo., Ltd, which covered 38.90% of the total
the Reporting Period
shares amount of North Huachuang.
BOE Technology Group Co., Ltd. Annual Report 2016
Change of the actual controller during the Reporting Period
□ Applicable √ Not applicable
There was no change of the actual controller during the Reporting Period.
Ownership and control relations between the actual controller and the Company
Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, Zhao
State-owned Assets Supervision & Administration Caiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying
Commission of Beijing People’s Government 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%, Wang Yanjun
3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang
100%
1.667%, Sun Jiping 1.667%, Zhang Peng 1.667%, Wang Ai’zhen 1.667%,
Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667%, Zhong
Beijing State-owned Capital Management
Huifeng 1.667%
Administrative Center
100% 100%
Beijing Electronics Holdings Co., Ltd. Beijing Intelligent Kechuang Technology Development Co., Ltd.
66.25% 33.75%
Beijing BOE Investment & Development Co., Ltd.
11.56% 0.78% 2.34%
%
BOE Technology Group Co., Ltd.
Notes: 1: The Company regards Beijing Intelligent Kechuang Technology Development Co., Ltd. as a platform to implement equity
incentive for the whole core technology manager, the aforesaid 20 subscribers are nominal shareholders, each investment proportion
is not actual equity proportion, the equities of Beijing Intelligent Kechuang Technology Development Co., Ltd. are held in common
by all implemented objectives of simulate plan of equity incentive mechanism.
2: When the Company completed private offering of shares in 2014, Beijing State-owned Capital Operation and Management Center
transferred the 70% shares directly held to Beijing Electronic Shareholding Co., Ltd. for managing through Shares Management
Protocol, and Beijing Electronic Shareholding Co., Ltd. acquired the shareholders rights except for the disposition rights and equity
rights attached to the equities; Beijing State-owned Capital Operation and Management Center maintained its voting rights of the rest
30% equity directly held by itself in accordance with Beijing Electronic Shareholding Co., Ltd. through the agreement of the Voting
Rights Exercising Agreement.
The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
4. Other corporate shareholders with a shareholding percentage above 10%
√ Applicable □ Not applicable
Legal representative / Date of
Name of corporate shareholder Registered capital Business scope
company principal establishment
Investment and investment
management; assets
Beijing State-owned Capital
RMB 35,000,000,000 management; organize the
Management Administrative Lin Fusheng 12/30/2008
Yuan reorganization as well as the
Center
merger and acquisition of
the enterprise assets.
5. Limits on the Company’s shares held by its controlling shareholder, actual controller, reorganizer and
other commitment subjects
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
There was no preferred stock during Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2016
Section VIII Directors, Supervisors, Senior Executive Officers and Staff
I Changes in shareholdings of directors, supervisors and senior management
Increase in Decrease in
Other
Opening the the Closing
Incumbent Starting date Ending date increase/d
Name Office title Gender Age shareholdin Reporting Reporting shareholdin
/former of tenure of tenure ecrease
g (share) Period Period g (share)
(share)
(share) (share)
Wang Chairman of the Board 59 05/20/2016 05/19/2019 299,905 0 0 0 299,905
Current Male
Dongsheng
Vice Chairman of the 57 05/20/2016 05/19/2019 7,680 0 0 0 7,680
Xie Xiaoming Current Male
Board
Vice Chairman of the 50 05/20/2016 05/19/2019 260,000 0 0 0 260,000
Chen Yanshun Board, Chief of Executive Current Male
Committee(CEO)
Wang Jing Director Current Female 45 05/20/2016 05/19/2019 0 0 0 0
Zhang Jinsong Director Current Male 44 05/20/2016 05/19/2019 0 0 0 0
Director, Executive Vice 52 05/20/2016 05/19/2019 250,000 0 0 0 250,000
Liu Xiaodong President, President and Current Male
COO
Song Jie Director Current Male 49 05/20/2016 05/19/2019 0 0 0 0
YaoXiangjun Director, Executive 39 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Committee Member,
Senior Vice President,
Current Male
Joint COO and CEO of
Intellectual System
Business Group
BOE Technology Group Co., Ltd. Annual Report 2016
Lv Tingjie Independent Director Current Male 61 05/20/2016 05/19/2019 0 0 0 0
Wang Independent Director 53 05/20/2016 05/19/2019 0 0 0 0
Current Male
Huacheng
Hu Xiaolin Independent Director Current Male 38 05/20/2016 05/19/2019 0 0 0 0
Li Xuan Independent Director Current Male 48 08/19/2016 05/19/2019 0 0 0 0
Chief of Supervisory 59 05/20/2016 05/19/2019 0 0 0 0
Chen Ming Current Male
Board（Convener）
Xu Tao Supervisor Current Male 53 05/20/2016 05/19/2019 0 0 0 0
Mu Chengyuan Supervisor Current Male 49 05/20/2016 05/19/2019 2,991 0 0 0 2,991
Zhao Wei Supervisor Current Male 48 05/20/2016 05/19/2019 0 0 0 0
Shi Hong Supervisor Current Female 32 05/20/2016 05/19/2019 0 0 0 0
Zhuang Haoyu Supervisor Current Male 32 05/20/2016 05/19/2019 0 0 0 0
Employee Supervisor, 43 05/20/2016 05/19/2019 0 0 0 0
Miao Chuanbin Current Male
CCO
Xu Yangping Employee Supervisor Current Male 42 05/20/2016 05/19/2019 0 0 0 0
He Daopin Employee Supervisor Current Male 47 05/20/2016 05/19/2019 0 0 0 0
Dong Youmei Executive Vice President, 53 05/20/2016 05/19/2019 200,000 0 0 0 200,000
Secretary General of
Strategy Committee of the
Current Female
Board and Director of
Technology and Products
Strategy Committee
Sun Yun Executive Committee 47 05/20/2016 05/19/2019 155,981 0 0 0 155,981
Member, Executive Vice Current Female
President, CFO
Yue Zhanqiu Executive Committee Current Male 49 05/20/2016 05/19/2019 150,000 0 0 0 150,000
BOE Technology Group Co., Ltd. Annual Report 2016
Member, Senior Vice
President, CIO
Senior Vice President, 44 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Feng Liqiong Current Female
Chief Lawyer
Executive Committee 46 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Zhong Huifeng Member, Senior Vice Current Male
President, CHO
Executive Committee 46 05/20/2016 05/19/2019 110,000 0 0 0 110,000
Member, Senior Vice
Xie Zhongdong President, Chief Risk Current Male
Officer and Auditor
General
Zhang Executive Committee 46 05/20/2016 05/19/2019 150,000 0 0 0 150,000
Zhaohong Member, Senior Vice
President, CEO of Current Male
Display Devices Business
Group
Feng Qiang Executive Committee 40 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Member, Senior Vice
Current Male
President, CEO of Health
Service Business Group
Yang Anle Senior Vice President, 46 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Current Male
Chief Investment Officer
Tong Guanshan Senior Vice President, 48 05/20/2016 05/19/2019 0 0 0 0
Current Male
CTO
Liu Hongfeng Vice President, Secretary 38 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Current Male
of the Board
BOE Technology Group Co., Ltd. Annual Report 2016
Jing Linfeng Vice President, CSO and 38 05/20/2016 05/19/2019 100,000 0 0 0 100,000
Executive Secretary of the Current Male
Executive Committee
Ji Guoping Independent Director Former Male 69 07/10/2013 05/20/2016 0 0 0 0
Yu Ning Independent Director Former Male 61 07/10/2013 06/01/2016 0 0 0 0
Zhou Yanwen Employee Supervisor Former Male 49 07/10/2013 05/20/2016 0 0 0 0
Li Xuezheng Senior Vice President Former Male 47 07/10/2013 05/20/2016 186,600 0 186,600 0
Total -- -- -- -- -- -- 2,573,157 0 186,600 0 2,386,557
II Changes in directors, supervisors and senior management
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
YaoXiangjun Director, Executive Committee Member, Senior Vice President,
Appointed 05/20/2016 Elected
Joint COO and CEO of Intellectual System Business Group
Hu Xiaolin Independent Director Appointed 05/20/2016 Elected
Li Xuan Independent Director Appointed 08/19/2016 Elected
He Daopin Employee Supervisor Appointed 05/20/2016 Elected
Dong Youmei Executive Vice President, Secretary General of Strategy Appointed
Committee of the Board and Director of Technology and 05/20/2016 Employment
Products Strategy Committee
Zhang Zhaohong Executive Committee Member, Senior Vice President, CEO of Appointed
05/20/2016 Employment
Display Devices Business Group
Feng Qiang Executive Committee Member, Senior Vice President, CEO of Appointed Employment
05/20/2016
Health Service Business Group
Yang Anle Senior Vice President, Chief Investment Officer Appointed 05/20/2016 Employment
BOE Technology Group Co., Ltd. Annual Report 2016
Tong Guanshan Senior Vice President, CTO Appointed 05/20/2016 Employment
Liu Hongfeng Vice President, Secretary of the Board Appointed 05/20/2016 Employment
Jing Linfeng Vice President, CSO and Executive Secretary of the Executive Appointed Employment
05/20/2016
Committee
Ji Guoping Independent Director Left as the service term
05/20/2016 Left as the service term expired
expired
Yu Ning Independent Director Left the post 06/01/2016 Pass away
Zhou Yanwen Employee Supervisor Left as the service term
05/20/2016 Left as the service term expired
expired
Li Xuezheng Senior Vice President Left as the service term
05/20/2016 Left as the service term expired
expired
BOE Technology Group Co., Ltd. Annual Report 2016
III Brief biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent directors,
supervisors and senior management
Mr. Wang Dongsheng, Master of Engineering, financial experts and system engineering experts, founder of BOE, ever took the posts
of Chairman of 1st and 2nd Board of Directors as well as president, and Chairman of the 3rd Board of Directors of the Company, as
well as Chairman of Execution Committee, CEO, the Chairman of the 4th Board of Directors of the Company and Chairman of
Execution Committee, the Chairman of the 5th Board of Directors of the Company and Chief of Execution Committee and Chairman
of the 6th Board of Directors, Chief of Execution Committee of the Company, and the Chairman of the 7th Board of Directors, Chief
of Execution Committee of the Company.
Now he takes the posts of Chairman of the 8th Board of Directors, meanwhile, Vice President of China Electronic Chamber of
Commerce, President of Beijing Electronic Chamber of Commerce, Vice President of China Optics and Optoelectronics
Manufactures Association and Chairman of China Optics and Optoelectronics Manufactures Association LCB, etc.
Mr. Wang Dongsheng leaded to found BOE in 1993, and made BOE bacame a leading enterprise in the field of global display. He
first put forward the concept of semiconductor display industry in the global industry, also in 2010, he put forward life principle of
display industry which was known as” Mr. Wang Principle”.
Mr. Wang Dongsheng once was awarded \"China Top Ten Mergers and Acquisitions Personage”, “Chinese Top Ten Smartfortune
Personage”, “China's information industry leader”,” The most influential leader of listed companies” , “The National May 1 Labor
Medal”and other honorary titles.
Mr. Xie Xiaoming, MBA, He had ever taken the posts of Director of 821 Workshop of Beijing Tube Factory, Plant Manager of First
Branch Factory of Beijing Tube Factory, Deputy GM of Beijing Orient Electronics Group Co., Ltd, General Manager and Director of
Beijing Yandong Microelectronics Co., Ltd, Director of Beijing Dongguang Micro Electronics Co., Ltd, Party Secretary of Beijing
Semiconductor Devices Fifth Factory, and Vice Chairman of the 7th Board of Directors.
Now he takes the posts of Vice Chairman of the 8th Board of Director of the Company, Vice President of Beijing Electronics Holding
Co., Ltd, Chairman of Beijing Yandong Microelectronics Co., Ltd, Chairman of Beijing Dongguang Micro Electronic Co., Director
of Beijing Seven Star Huachuang Electronics Holding Co., Ltd., and Director of Beijing Electronic Control Ai Sikai Technology Co.,
Ltd.
Mr. Chen Yanshun, Master of Economics, senior accountant, has ever taken the posts of lecturer of Chongqing Industry & Commerce
University. He had served in the Company from the year of 1993, has taken the posts of Secretary of the Board of the 1 st Board of
Directors of the Company, Secretary of the 2nd Board of Directors and Vice President, Executive Director of the 3rd Board of
Directors and Senior Vice President, Executive Director of the 4th, 5th and the 6th Board of Directors and President, and Vice Chairman
of the 7th Board of Directors and President, and Chairman of the Board of Beijing BOE Vision-electronic Technology Co., Ltd,
Beijing BOE Optoelectronics Technology Co., Ltd, Hefei BOE Optoelectronics Technology Co., Ltd, and Ordos Yuansheng
Optoelectronics Co., Ltd.
Now he takes the posts of Vice Chairman of the 8th Board of Directors of the Company and Chief of Executive Committee(CEO),
Chairman of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Chairman of Chongqing BOE Chairman of Optoelectronics
Technology Co., Ltd, Beijing Intelligent Kechuang Technology Development Co., Ltd., Chairman of the Board BeijingMatsushita
Color CRT Co., Ltd, and Chairman and Director of the Board of BOE Technology (Hong Kong) Co., Ltd., and Director of Mingde
Investment Co., Ltd.
Mrs. Wang Jing, Bachelor of Finance, LLM, MBA and Senior Economist. She once worked as Clerk of Securities Department in
BOE Technology Group Co., Ltd. Annual Report 2016
Beijing Lightbus Co., Ltd., Cadre of General Office of the Economic System Reform Committee of Beijing, assistants to the
Directors and Deputy Directors Financing Department of Beijing Enterprises Holdings Ltd. (HK Head office), Entrepreneurship
Manager of Beijing Enterprises Holdings Investment Management Ltd., Deputy GM of Beijing BHL Investment Management Center
of Beijing Holdings, Manager of Business Operating & Management Department of Beijing Holdings, General Manager Assistant of
Beijing Holdings, Chairman and GM of Inland Port International Logistics Co., Ltd., GM of Investment Management Department
and Investment Management Department I of Beijing State-owned Capital Operation Management Center, and Director of the 7th
Board of Directors of the Company.
Now she worked as Director of the 8th Board of Directors of the Company, Deputy GM of Beijing State-owned Capital Operation
Management Center, Director of Huarun Pharmaceutical Group Co., Ltd, Director of Beijing Automobile Co., Director of Beijing
New energy Automobile Co., Ltd, and Director of Zhongxin Construction Securities Co., Ltd.
Mr. Zhang Jinsong, Master Degree, Senior Accountant. He ever took posts of Chief of Finance Department of Beijing Jianzhong
Anchinery Factory, CFO of Beijing Boda Integrated Circuit Co., Ltd. and Deputy CFO of the Company and Supervisor of the 6 th
Supervisory Committee and Chairman( convener) of the 7th Supervisory Committee, and Director of the 7th Board of Directors.
Now he acts as Director of the 8th Board of Directors of the Company, Vice President of Beijing Electronics Holdings Corp.,
Chairman of Beijing Sevenstar Huachuang Electronics Co., Ltd, and Chairman of Beijing Peony Electronic Group Co., Ltd, and
Director of Beijing BOE Investment & Development Co., Ltd, Director of Beijing Beiguang Science & Technology Co., Ltd.,
Director of Beijing Electronic Control Ai Sikai Technology Co., Ltd, and Director of Beijing Yandong Microelectronics Co., Ltd..
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,
Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.,
Ltd., Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE
Vision-electronic Technology Co., Ltd. and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., President of Beijing BOE
Multimedia Science and Technology Co., Ltd. and Beijing BOE Technology Wisdom Commerce Co., Ltd, Director of the 7th Board
of Directors, Executive Vice President and COO of the Company
Now he takes the posts of Director of the 8th Board of Director, Executive Vice President, President and COO of the Company,
Deputy Chairman of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of Hefei Xinsheng Optoelectronics Technology
Co., Ltd, and TPV Display Technology (China) Co., Ltd.
Mr. Song Jie, Senior Economist, MBA of Peking University, Countries travelled visiting scholar of University of Sydney from Feb,
2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation, Officer of
Project examination and approval of Beijing Economic and Technological Development Zone Management Committee, Officer of
Foreign Investment Service Center, the Director of Yi Da Tong Paging Center, Deputy General Manager of Chinese Human Genome
Research Center, Beijing (SinoGenoMax Co., Ltd.), Project Manager of East Zone Sewage project of Beijing
Economic-Technological Investment & Development Corp, Director of the 7th Board of Directors of the Company.
Now he is the Director of the 8th Board of Directors of the Company, Manager of Department of investment and financing of Beijing
Economic -Technological Investment & Development Corp.
Mr. Yao Xiangjun, MBA, Chinese CPA. He once worked as Chief Inspector of Financing Department of the Company,
Director of Business Planning Center, Chief Strategic Officer of the Company, Financial Controller of Hefei BOE
Optoelectronics Technology Co., Ltd.
Now he serves as Director of the 8th board of directors, Member of Execution Committee, Senior Vice President, Co-Chief
BOE Technology Group Co., Ltd. Annual Report 2016
Operating Officer and Chief Executive Officer of Intelligent System Business Group, Chairman of Beijing BOE Optical Science and
Technology Co., Ltd., Beijing BOE Video Science and Technology Co., Ltd., Beijing BOE Multi-Media Science and Technology Co.,
Ltd., Beijing BOE Intelligent Science and Technology Co., Ltd. and Varitronix International Limited.
Independent director’s particulars
Mr. Lv Tingjie, Doctor Degree, Professor and Doctorial Tutor, Assistant, Lecturer, Associate Professor, Professor, Doctorial Tutor,
Vice Dean, Standing vice President and President, and Assistant Principal of Beijing University of Posts and Telecommunications.
Social part-time job: Executive Director of Union International Telecommunications, Vice Chairman of Information Economy
Society of China, Deputy Director of the Ministry of Education Electronic Commerce Teaching Committee, Standing Director of
China Institute of Communications (Director of the Communication Management Branch) Standing Director of China Association of
Communication Enterprises, Standing Director of Chinese Research Council of Technical Economy (Director of Communications
Technology and Economy), Member of Ministry of Industry and Information Science Committee and Telecom Economic Experts
Committee. He was once the Independent Director of the 7th Board of Directors of the Company
Now he is the independent director of the 8th Board of Directors of the Company. He has worked in Beijing University of Posts and
Telecommunications since May 1985, and he was the Independent Director of Xinhua Net, BOE, and Gohigh Data Networks
Technology Co., Ltd, Independent Director of Shenzhen Ai Shide Co., Ltd.
Mr. Wang Huacheng, Doctoral Candidate Degree, Professor Doctoral Supervisor, In July 1985, graduate from Department of Finance,
Renmin University of China, obtained bachelor of economics degree, in July 1988, graduated from Department of Accounting,
Renmin University of China, obtained master's degree in economics, in July 1998,graduated from Department of Accounting,
Renmin University of China, obtained PhD degree. Since September 1988, worked as a teacher in Renmin University of China, He
successively worked as teaching assistant, lecturer, associate professor, professor, PhD supervisor, social appointments: Director of
the institute of Chinese accounting. He once was the Independent Director of the 7th Board of Directors of the Company
Now he is the Independent Director of the 8th Board of Directors of the Company, HXB and China Railway Construction
Corporation Limited.
Mr. Hu Xiaolin, doctor, associate professor of Tsinghua University, artificial intelligence professor.
Now he serves as Senior Member of Institute of Electrical and Electronics Engineers (IEEE), Editorial Board Member of IEEE
Transactions on Neural Networks and Learning Systems, Independent Director of 8th board of directors.
Mr. Li Xuan, doctor of laws, vice professor, graduate student tutor. He once worked as the Teaching Assistant, Lecturer, Chief
Assistant, Deputy Chief of Central University of Finance and Economics, Vice Dean of Central University of Finance and Economics
School of Law, Chief of Central University of Finance and Economics Legal Affairs Office, Independent Director of Beijing Da Bei
Nong Science and Technology Group Co., Ltd.
Now he serves as the Independent Director of the 8th board of directors of the Company, Chief of Central University of Finance and
Economics Master of Laws (J.M) Education Center, Deputy Chief of Central University of Finance and Economics Public
Policy-Making Research Center, Deputy Chief of Committee for Social and Legal Affairs of Beijing Municipal Committee of the
CDL, Secretary General of China Case Study Association, Executive Director of Law Society of China Law Society, Arbitrator of
Harbin Arbitration Commission, Independent Director of China Minzu Securities Co., Ltd., Independent Supervisor of CNBM (listed
in Hong Kong Exchange).
BOE Technology Group Co., Ltd. Annual Report 2016
Supervisors’ Particulars
Mr. Chen Ming, Bachelor degree, once worked as Manager of Beijing Wireless Power Plant Peony Electronic Engineering Company,
Chairman of the Board and Chief of Execution Committee ,Factory Director of Beijing Wireless Power Plant and GM of Beijing
Ether-led Electronic Group Co., Ltd. He once was the Chairman (Convener) of the 7th Supervisory Committee of the Company.
Currently, the Chairman (Convener) of the 8th Supervisory Committee of the Company, the Chairman of the Supervisory Committee
of Beijing Electronics Zone Investment and Development Co., Ltd, Beijing Zhaowei Electronics (Group) Co., Ltd, and Beijing Seven
Star Huachuang Electronics Co., Ltd.
Mr. Xu Tao, Senior Accountant, Minister of Finance Department of Beijing TV Accessories Third Factory, Chief Accountant and
CFO of Beijing Jile Economics Group Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Currently, a Supervisor of the 8th Supervisory Committee of the Company. the Financial/Accounting Center Director of Beijing
Electronics Holdings Co., Ltd.
Mr. Mu Chengyuan, master, is an Economist. He ever took the posts of Manager of Comprehensive Department of International
Trade Branch of the Company, Deputy General Manager of Beijing Orient Lighting Fixture Engineering Co., Ltd., Division Chief of
Assets Operating and Management Division of and Deputy Factory Manager of Beijing Electronic Tube Factory, Supervisor of the
3rd Supervisory Committee of the Company, Supervisor and Secretary of the 4th and the 5th Supervisory Committee of the Company,
the Supervisor and Secretary of the 6th Supervisory Committee, Supervisor and Secretary of the 7th Supervisory Committee of the
Company.
Now he is the Supervisor and Secretary of the 8th Supervisory Committee, Chief of Investment Securities Department of Beijing
Electronics Holdings Co., Ltd., as well as Director and Vice President of Beijing BOE Investment & Development Co., Ltd..
Mr. Zhao Wei, Bachelor, Joined the Communist Party of China in 2001, he successively worked as Manager of Financial Department
of Hefei City Construction Investment Co., Ltd. Deputy Minister, Minister of Financial Department and Minister of Financing
Department of Hefei City Construction Investment Co., Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Now he is the Supervisor of the 8th Supervisory Committee of the Company, Member of CPC Committee, Director, Deputy GM of
Hefei City Construction Investment Co., Ltd..
Ms. Shi Hong, Master of Economics, Senior Economist, Supervisor of the 7th Supervisory Committee of the Company.
Now he is the Supervisor of the 8th Supervisory Committee of the Company, worked in Department of Investment and Financing of
Beijing Economic-Technological Investment & Development Corp. Member of Investment Decision Committee of China Reform
Fund Management Co., Ltd. and Supervisor of Beijing Boda Xinyuan House Real Estate Development Co., Ltd..
Mr. Zhuang Haoyu, Bachelor, he once worked as Project Assistant of Beijing Industrial Development Investment Management Co.,
Ltd, Supervisor of the 7th Supervisory Committee of the Company.
Now he is Supervisor of the 8th Supervisory Committee of the Company, and Project Assistant of Beijing Industrial Development.
Mr. Miao Chuanbin, Master degree, once worked as Manager of Market Department Beijing Wireless Power Plant Putai Technology
Company, Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plant. Deputy General
Manager of Beijing Ether-led Electronic Group Co., Ltd., Secretary of Party Committee Work Department, Enterprise Minister of
Culture of Beijing Electronics Holdings Co., Ltd, Employee Supervisor of the 7th Supervisory Committee of the Company.
BOE Technology Group Co., Ltd. Annual Report 2016
Now he is the Employee Supervisor of the 8th Supervisory Committee of the Company, Vice Secretary of Party Committee, Secretary
of the Commission for Discipline Inspection, Union Officials and Chief Officer of Culture; member of the Third National Committee
of China’s Defense of Posts and Telecommunications Union.
Mr. Xu Yangping, Master of Civil and Commerciall Law. He was former Deputy Minister, Minister of the Company’s Legal
Department, Employee Supervisor of the 7th Supervisory Committee of the Company.
Now he acts as Employee Supervisor of the 8th Supervisory Committee of the Company, Minister and Deputy Director of the
Company’s Legal Department and Organization and the Director of Board of Directors of Gaochuang (Suzhou) Electronics Co., Ltd,
Supervisor of Beijing BOE Vacuum Electric Appliance Co., Ltd and Beijing BOE Technology Development Co., Ltd.
Mr. He Daopin, master. He once worked as Production Supervisor, Purchasing Supervisor, Financial Manager, Vice General
Manager of Beijing Oriental Aristocratic Paper Co., Ltd., Vice General Manager, General Manager of Industrial Gas Underwriting
Company of Business Department of Park, Management Representative of Business Department of Park, Chief of HR and
Administrative Department, Chief of Property Department and Chief of Labor Union, Deputy Chief, Chief of Party Mass Work
Department of the Company, Corporate Cultural Center.
He now serves as Employee Supervisor of the 8th board of supervisors of the Company, Chairman of Labor Union of Beijing BOE
Display Technology Co., Ltd., Secretary of Committee for Discipline Inspection, Deputy Chief of Party Mass Work Department,
Corporate Cultural Center.
Introduction of senior managerial personnel
Ms. Dong Youmei, she successively took the posts of Deputy Chief of New Product Development Division of Shuguang
Electronic Group Co., Ltd., Deputy Chief of Liquid Crystal Center in Tsinghua University, and Strategic Chief Technical
Officer of the Company.
Now she serves as Senior Vice President and Chief Technology Officer of the Company, Chief of TFT-LCD Technology
National Engineering Laboratory, Member of Advisory Committee for the State Information, Member of Electronic Science
and Technology Committee of Ministry of Industry and Information Technology, Team Leader of Core Technology Team of
China OLED Industry Union, Expert of State Science and Technology Awards Evaluation, member of The Ministry of
Education of Higher School Teaching Steering Committee and Member of Editorial Board of Modern Display.
Ms. Sun Yun, Master of Business, is a senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance
Department of the Company, as well as Deputy CFO and Chief Auditor of the Company.
Now she is Executive Committee Member, Senior Vice President and CFO of the Company, Director of Beijing BOE Land Co., Ltd.,
Director of Beijing Yinghe Century Science & Technology Development Co., Ltd., Director of BeijingMatsushita Color CRT Co.,
Ltd.
Mr. Yue Zhanqiu, obtained EMBA in CEIBS, Senior Accountant. He ever took post of Chief and Chief Accountant of Finance
Section of Power Business Department, Financial Manger of Beijing Huamin Smart Card System Co., Ltd., CFO of Beijing Seven
Star Electronics Co., Ltd., CFO and Secretary to the Board of Beijing Seven Star Science & Technology Co., Ltd., and CFO, Deputy
General Manager, General Manager of Beijing BOE Optoelectronics Technology Co., Ltd..
Now he acts as Executive Committee Member , Senior Vice President and CIO of the Company.
BOE Technology Group Co., Ltd. Annual Report 2016
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Department Director of Legal Affairs
Department of the Company. And as Secretary of the 5th and 6th Board of Directors.
Now she is Senior Vice President, Chief Counsel and Secretary to the Board of the Company as well as Director of Beijing BOE
Land Co., Ltd. and Director of Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Zhong Huifeng, Master Degree, awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever took
posts of Securities Affairs Representative and Manager of Security Department of the 2nd Board of Directors, Secretary to the Board
of the 3rd, 4th and 5th Board of Directors of the Company, Employee Supervisor of the 6th Supervisory Committee and Employee
Supervisor of the 7th Supervisory Committee, Supervisor of Beijing Orient Top Victory Electronics Co., Ltd.. and Vice Secretary of
the CPC, Secretary of Discipline Inspection Commission and Principal of Labor Union of the Company, member of the Third
National Committee of China’s Defense of Posts and Telecommunications Union.
Now he acts as Executive Committee Member, Senior Vice President and CHO of the Company.
Mr. Xie Zhongdong, Master, CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si Water
Conservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C, Chief and
Deputy Auditor of Auditing & Supervision Division of the Company, Vice Chief and Chief of Auditing & Supervision Division of
Beijing BOE Optoelectronics Technology Co., Ltd.
Now he acts as Executive Committee Member, Vice President, Chief Risk Control Officer and Chief Auditor of the Company, Vice
President of Beijing Internal Audit Association, Chief Supervisor of Hefei BOE Optoelectronics Technology Co., Ltd., Supervisor of
Chengdu BOE Optoelectronics Technology Co., Ltd., Hefei BOE Display Light Co., Ltd., Chongqing BOE Optoelectronics
Technology Co., Ltd., Hefei Xinsheng Optoelectronics Technology Co., Ltd., Supervisor of Beijing BOE Display Technology Co.,
Ltd., and OASIS Investment Co., Ltd., Beijing BOE Vision-electronic Technology Co., Ltd. and Gaochuang (Suzhou) Electronics
Co., Ltd.
Mr. Zhang Zhaohong, bachelor of inorganic nonmetallic materials, engineer. He joined in the Company in 1992, he once worked as
General Manager of China of Beijing Asahi Glass Co., Ltd., General Manager of Chengdu BOE Optoelectronics Technology Co.,
Ltd., Chairman of BOE (Hebei) Mobile Display Technology Co., Ltd., General Manager of Beijing BOE Display Technology Co.,
Ltd., Chief Operating Officer of BOE Display Device Business Group.
Now he serves as Member of Executive Committee of the Company, Senior Vice President, Chief Executive Officer of Display
Device Business Group, Chairman of Beijing BOE Optoelectronics Technology Co., Ltd., Chairman of Chengdu BOE
Optoelectronics Technology Co., Ltd., Chairman of Hefei BOE Optoelectronics Technology Co., Ltd., Chairman of Beijing BOE
Display Technology Co., Ltd., Chairman of Erdos Yuansheng Optoelectronics Co., Ltd., Chairman of Fuzhou BOE Optoelectronics
Technology Co., Ltd.
Mr. Feng Qiang, MBA, master of engineering. He joined in the Company in 1998, he once worked as Vice General Manager of
Science & Technology Park Business Head Office of the Company, Executive Director and General Vice General Manager of Beijing
BOE Land Co., Ltd., Executive Director and Vice General Manager of Beijing Yinghe Century Land Co., Ltd.
Now he works as Member of Executive Committee of the Company, Senior Vice President, Chief Executive Officer of Health
Service Business Group, Chairman of Beijing BOE Land Co., Ltd., Chairman of Beijing Yinghe Century Land Co., Ltd., General
Manager of Beijing Matsushita Color CRT Co., Ltd.
Mr. Yang Anle, master. He once worked as Deputy Chief of Financial Division of Beijing Electronic Tube Factory, Manager of
BOE Technology Group Co., Ltd. Annual Report 2016
Financial Department of Beijing BOE Investment & Development Co., Ltd., Chief Financial Officer of Beijing Dongdian Industrial
Development Co., Ltd., Supervisor of the 2nd, 3rd, 4th Board of Supervisors of the Company, Employee Supervisor of 5th, 6th Board
of Supervisors.
He now serves as Senior Vice President of the Company, Chief Investment Officer, Chairman of Beijing North Asahi Electronic
Glass Co., Ltd., Chairman of Beijing Rishen Electronic Precise Parts Co., Ltd., Chairman of Beijing Nittan Electronics Co., Ltd.,
Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd.,
Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOE Display Technology Co., Ltd., Director of
Erdos Yuansheng Optoelectronics Co., Ltd., Director of Heifei BOE Display Technology Co., Ltd., Director of Fuzhou BOE
Optoelectronics Technology Co., Ltd., Director of BOE Optoelectronics Technology Co., Ltd., Director of Integrity Capital Partners,
Director of Hefei BOE Hospital Co., Ltd., Director of Beijing Yingfei Hailin Venture Capital Management Co., Ltd, Director of
Beijing BOE Vacuum Electric Co., Ltd.
Mr. Tong Guanshan, doctor of computer science of University of Chicago (Ph.D.), MBA of Massachusetts Institute of Technoloty
(MBA). He once worked in IBM Global Headquarter, he was in charge of IBM global mergers and acquisitions, divestitures and
strategic alliances and building of partnerships. He acted as leader for several research & development groups in IBM global research
and development department.
He now serves as Senior Vice President, Chief Technology Officer.
Mr. Liu Hongfeng, master. He once worked as the Deputy Chief of the Financial Planning Department of the Company, the Deputy
Chief and Chief of the BOD Office, the Securities Representative and the Secretary of the 7th Board of the Company.
Now he is a vice president and the Board Secretary of the Company, as well as a director of Beijing Nissin Electronics Precision
Component Co., Ltd.
Mr. Jing Linfeng, bachelor. He once worked as Sales Manager, Sales Chief of Beijing BOE Optoelectronics Technology Co., Ltd.,
General Manager of DBG Laptop Business Department.
He now works as Vice President, Chief Strategic Officer of the Company and Executive Secretary of Executive Committee.
Post-holding in shareholders’ units
√ Applicable □ Not applicable
Name of the
Receivepay
person holding
Ending date ment from
Position in Beginning date of
any post in Name of shareholder’s unit of office shareholder
shareholder’s unit office term
term ’s unit or
shareholder’s
not
unit
Beijing Electronics Holdings Co., 06/22/2011 Yes
Xie Xiaoming Vice president
Ltd.
Beijing State-owned Capital 01/26/2014 Yes
Wang Jing Vice GM
Management Center
Zhang Jinsong Beijing Electronics Holdings Co., Vice president 08/29/2011 Yes
Ltd.
Zhang Jinsong Beijing BOE Investment & Director 12/14/2012 No
BOE Technology Group Co., Ltd. Annual Report 2016
Development Co., Ltd.
Manager of 05/26/2008 Yes
Beijing Economic-Technological Investment
Song Jie
Investment & Development Corp. Securities
Department
Mu Chengyuan Beijing Electronics Holdings Co., Minister of 06/01/2011 Yes
Ltd. Investment
Securities
Department
Mu Chengyuan Beijing BOE Investment & Director, Vice 12/14/2012 No
Development Co., Ltd. president
Beijing Electronics Holdings Co., 10/26/2012 Yes
Xu Tao Finance Minister
Ltd.
Investment & 09/18/2012 Yes
Beijing Economic-Technological
Shi Hong, Financing
Investment & Development Corp.
Director
Notes to
post-holding in The documents for holding the posts of shareholders entities haven’t listed the expiry date.
shareholder’s unit
Post-holding in other units
√ Applicable □ Not applicable
Name of the
Receive payment
person holding Beginning
Position in other Ending date of
Name of other unit date of office from other unit or
any post in unit office term
term
not
other unit
Beijing University of Posts and
Lv Tingjie Doctor Advisor Yes
Telecommunications
Wang
Renmin University of China Doctor Advisor Yes
Huacheng
Associate
Hu Xiaolin Tsinghua University Yes
Researcher
The Central University of Finance and Post-graduate
Li Xuan Yes
Economics Tutor
Hefei Construction Investment Holding Vice General
Zhao Wei Yes
(Group) Co.,Ltd. Manager
Beijing Industry Development Investment
Zhuang Haoyu Project Manager Yes
Management Co., Ltd
Notes to
Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not
post-holding in
been fixed.
other unit
BOE Technology Group Co., Ltd. Annual Report 2016
Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior management staffs
Decision-making procedure, determining basis and actual payment for the remuneration of directors, supervisors and senior
management staffs
(1) Determining basis and procedures for the remuneration of directors, supervisors and senior management staffs
Proposal on Principle of Recognition of Remunerations for Directors, Supervisors and Senior management staffs was reviewed and
approved by the Shareholders’ General Meeting 2005 held on 29 May 2006. Allowance for directors and supervisors of the Company
was reviewed and approved at the Second Special Shareholders’ General Meeting for 2013 held on July10，2013.
(2) Up to the end of the Reporting Period, the current directors, supervisors and senior management staffs drew their remuneration
from the Company total RMB30.2189 million Yuan (before tax). Allowance for independent directors is RMB150,000 Yuan (after
tax) per year in 2016. For details please referred to the statement below:
Remuneration for directors, supervisors and senior management staffs of the Company during the Reporting Period
Unit: RMB’0,000 Yuan
Whether gain
Total
remuneration
remuneration
Tenure from the
Name Office title Sex Age (before tax)
status Related Party
gained from the
of the
Company
Company
Wang
Chairman of the Board Male 59 Current 223.51 No
Dongsheng
Xie Xiaoming Vice Chairman of the Board Male 57 Current
Vice Chairman of the Board,
Chen Yanshun Chief of Executive Male 50 Current 253.94 No
Committee(CEO)
Wang Jing Director Female 45 Current
Zhang Jinsong Director Male 44 Current
Director, Executive Vice
Liu Xiaodong President, President and Male 52 Current 200.94 No
COO
Song Jie Director Male 49 Current
Director, Executive
Committee Member, Senior
YaoXiangjun Male 39 Current 190.2 No
Vice President, Joint COO
and CEO of Intellectual
BOE Technology Group Co., Ltd. Annual Report 2016
System Business Group
Lv Tingjie Independent Director Male 61 Current 15 No
Wang
Independent Director Male 53 Current 15 No
Huacheng
Hu Xiaolin Independent Director Male 38 Current 9.23
Li Xuan Independent Director Male 48 Current 5.5
Chief of Supervisory Board
Chen Ming Male 59 Current 0
（Convener）
Xu Tao Supervisor Male 53 Current 0
Mu Chengyuan Supervisor Male 49 Current 0
Zhao Wei Supervisor Male 48 Current 8
Shi Hong Supervisor Female 32 Current 8
Zhuang Haoyu Supervisor Male 32 Current 8
Miao Chuanbin Employee Supervisor, CCO Male 43 Current 52.9 No
Xu Yangping Employee Supervisor Male 42 Current 67.55 No
He Daopin Employee Supervisor Male 47 Current 53.41 No
Executive Vice President, Female
Secretary General of
Strategy Committee of the
Dong Youmei 53 Current 179.05 No
Board and Director of
Technology and Products
Strategy Committee
Executive Committee Female
Sun Yun Member, Executive Vice 47 Current 208.19 No
President, CFO
Executive Committee Male
Yue Zhanqiu Member, Senior Vice 49 Current 135.77 No
President, CIO
Senior Vice President, Chief Female
Feng Liqiong 44 Current 135.29 No
Lawyer
Executive Committee Male
Zhong Huifeng Member, Senior Vice 46 Current 132.79 No
President, CHO
Executive Committee Male
Member, Senior Vice
Xie Zhongdong 46 Current 132.62 No
President, Chief Risk Officer
and Auditor General
Zhang Executive Committee Male 46 Current 142.94 No
BOE Technology Group Co., Ltd. Annual Report 2016
Zhaohong Member, Senior Vice
President, CEO of Display
Devices Business Group
Executive Committee Male
Member, Senior Vice
Feng Qiang 40 Current 106.4 No
President, CEO of Health
Service Business Group
Senior Vice President, Chief Male
Yang Anle 46 Current 153.44 No
Investment Officer
Tong Guanshan Senior Vice President, CTO Male 48 Current 188.48 No
Vice President, Secretary of Male
Liu Hongfeng 38 Current 120.74 No
the Board
Vice President, CSO and Male
Jing Linfeng Executive Secretary of the 38 Current 95.02 No
Executive Committee
Ji Guoping Independent Director Male 69 Former 15 No
Yu Ning Independent Director Male 61 Former 6.21 No
Zhou Yanwen Employee Supervisor Male 49 Former 52.83 No
Li Xuezheng Senior Vice President Male 47 Former 97.94 No
Total -- -- -- -- 3,021.89 --
Equity incentives for directors, supervisors and senior management in the Reporting Period
□ Applicable √ Not applicable
V Employees
1. Number, functions and educational backgrounds of the staff
Number of in-service employees of the Company 1,629
Number of in-service employees of main subsidiaries 46,078
Total number of in-service employees 49,151
Total number of employees with remuneration in the Reporting Period 49,151
Number of retirees to whom the Company or its main subsidiaries need to
pay retirement pension
Functions
Function Number of employees
Production 26,527
Sales
Technicians 19,359
Financial
BOE Technology Group Co., Ltd. Annual Report 2016
Administrative
Manager 1,344
Other
Total 49,151
Educational backgrounds
Educational background Number of employees
Doctor and post-doctorate
Master 5,534
Bachelor 10,708
College 13,653
Technical secondary school 11,321
Other 7,676
Total 49,151
2. Employee’s remuneration policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to the
external competitive compensation and internal fairness, established compensation benefit, performance management, cadre
administration, employee rank and related compensation and appraisal management system
3. Employee’s training plan
In 2015, BOE University has been set-up, which with a vision of being international competitive and respectful Industrial University.
And undertakes the strategy and service as main line, driving the development of the Company personnel training system’s further
improvement and upgrade and forms training products line including four categories of leaders, managers, professional and industry
personnel. Meanwhile the data of participation people and the participation period and satisfaction of the training keep continuously
increasing.
4. Outsourcing
□ Applicable √ Not applicabe
BOE Technology Group Co., Ltd. Annual Report 2016
Section IX Corporate Governance
I. Basic information of corporate governance
1. Standardized operation and perfection of corporate governance structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance for
Listed Companies, etc., and requirements of Guidelines of the Shenzhen Stock Exchange for the Standardized Operation of
Companies Listed on the Main Board, to continuously improve the corporate governance of the Company, to perfect internal control
system as well as to promote corporate governance level of the Company.
During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and
effectiveness of corporate governance. During the Reporting Period, the Company revised the Articles of Association and Rules of
Procedure of the Board and newly set up Financing Business Management System, Implementing Rules for the Enterprise Annuity
Plan Further promote the standardization of the corporate governance level. During the Reporting Period, the Company continued to
promote the Company’s governance in many ways. Actively arranged the Company's new directors, supervisors to join special
training organized by the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propaganda
inside the Company. The Company preserved the related party fund transaction, external guarantee and regularly self-inspection of
the shareholding and its changes of the directors, supervisors and senior executives, through maintaining and perfecting the Shenzhen
Stock Exchange Investors Interactive Platform to strengthen the communication of the investors.
In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliance
with various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal
related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the
concept of “honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.
Main governance of the Company was as follows:
(1) About shareholders and shareholders’ general meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.
Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and
regulations. The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile,
on the basis of ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet
voting for minority shareholders’ joining the general meeting of the shareholders.
(2) About relationship between the controlling shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,
with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevant
laws, regulations and the Company’s Articles of Association, no behaviors in relation to occupying significant funds of the Company,
and no behaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About directors and the Board of Directors
During the Reporting Period, The Company adjusted the composition of special committees, further perfect the Board of Directors
and special committees. Composition of the Board of Directors of the Company was in line with requirements of regulations and the
Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all
performed their duties as stipulated in the Company’s Articles of Association honestly, faithfully and diligently. They learned about
and kept a constant focus on the Company’s production and operation, its financial status and influence and risks of significant events.
BOE Technology Group Co., Ltd. Annual Report 2016
They also took the initiative to search for information needed in their decision-making so as to ensure efficient operation and
scientific decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the
Company’s Articles of Association and Rules of Procedure for the Board of Directors. There were three special committees under the
Board of Directors, namely, the Execution Committee, the Nomination, Remuneration and Appraisal Committee and the Audit
Committee. The Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About supervisors and the Supervisory Committee
The Company’s supervisors enhanced Supervisors’ ability of supervision to the compliance and legal of executing duty of the Board
and Senior Executives by way of attending shareholders’ general meetings, sitting in on board sessions, checking the Company’s
compliance with laws and finance periodically, issuing its opinions on relevant matters, etc., the Supervisory Committee supervised
the Company’s finance, duty performance of directors and senior management staffs, management and use of raised funds, and
capital flows between the Company and its related parties, and safeguarded the benefits and interests of the Company and its
shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with the Company’s Articles
of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’s activities for
duty performance were rightful and valid.
(5) About information disclosure and transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Shenzhen Stock
Exchange for the Standardized Operation of Companies Listed on the Main Board, Companies Publicly Issuing Securities
Information Disclosure Standards on the Contents and Formats No.2 - Content And Format of the Annual Report (2014 revision), the
Disclosure of Information A Business Memo No. 21 - Regular Report Disclosure Related Matters (2014 revision). The Company’s
Articles of Association and Management Methods for Information Disclosure and other requirements, the Company disclosed
information in a timely and fair manner and ensured the factuality, accuracy and completeness of the information disclosed.
The Company attached importance to communication with investors through investor visits reception, investors interaction platform,
online business performance explanation session, telephone and attending the investment strategy session organized by the securities
brokers, etc. Except for the aforesaid services, the Company’s senior management joined in the investor conference held by large
international investment institutions, actively communicated with the global institutional investors and discussed the situation and
development strategy of the Company with investors and analyst, so as to promote the open, transparent, efficient and consistent
communication between the Company, investors and analyst of securities, made them known more about the strategy, operation and
development of the Company.
2. Corporate governance system established in the Reporting Period
During the Reporting Period, the Company revised many corporate governance systems in accordance the requirements of the
regulatory authorities and the needs for self-development, relevant , with the detailed revision as
follows ,disclosed on http://www.cninfo.com.cn,
Time of Disclosure Name of System New Creation/Revision
21 May, 2016 Articles of Company Revision
21 May, 2016 Rules of Procedure for Board of Directors Revision
21 May, 2016 Members of Board Strategic Committee and Rules of Procedure Revision
21 May, 2016 Members of Board Risk Control and Audit Committee and Rules of Procedure Revision
21 May, 2016 Members of Board Nomination, Salary, Assessment Committee and Rules of Revision
Procedure
21 May, 2016 Members of Executive Committee and Rules of Procedure Revision
BOE Technology Group Co., Ltd. Annual Report 2016
20 Aug. 2016 Articles of Company Revision
1 Dec. 2016 Regulations on Capital Raising Revision
1 Dec. 2016 Regulations on External Guarantee Revision
1 Dec. 2016 Regulations on Transactions of Derivatives Revision
1 Dec. 2016 Regulations on Financial Business Revision
1 Dec. 2016 Regulations on Movement of Funds with Related Party Revision
1 Dec. 2016 Regulations on External Investment Revision
1 Dec. 2016 Regulations on Connected Transactions Revision
1 Dec. 2016 Regulations on Information Disclosure Revision
Whether it exists any difference between the corporate governance and the Company Law and relevant rules of CSRC or not?
□ Yes √ No
There is no difference between the corporate governance and the Company Law and relevant rules of CSRC.
II. Particulars about the Company’s “five-separation” from the controlling shareholder in
respect of business, personnel, assets, organization and financing
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,
organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production and
business departments and management system, the Company had the capability to make its own decisions, assume sole responsibility
for its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operating
management team. President, Vice President, Chief Financial Officer, Secretary of the Board as well as other senior management
staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive any remuneration in the
controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently
owned the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like
land use rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any
assets of the Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and the
actual controller, with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the
controlling shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system, established the
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account in
bank, and paid tax independently.
III Horizontal competition
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2016
IV Annual general meeting and special general meetings convened during the Reporting
Period
1. General meetings convened during the Reporting Period
Investor Disclosure
Meeting Type Convened date Index to the disclosed information
participation ratio date
Announcement on Resolutions Made
at the First Special Shareholders’
The First Special
Special General Meeting for 2016 (2016-009),
Shareholders’
Shareholders’ 35.56% 29 Jan. 2016 30 Jan. 2016 published on China Securities Journal,
General Meeting for
General Meeting Shanghai Securities News, Securities
2016
Times and Hong Kong Ta Kung Pao as
well as http://www.cninfo.com.cn.
Announcement on Resolutions Made
at the Second Special Shareholders’
The Second Special
Special General Meeting for 2016 (2016-028),
Shareholders’
Shareholders’ 35.75% 28 Mar. 2016 29 Mar. 2016 published on China Securities Journal,
General Meeting for
General Meeting Shanghai Securities News, Securities
2016
Times and Hong Kong Ta Kung Pao as
well as http://www.cninfo.com.cn.
Announcement on Resolutions Made
at 2015 Annual Shareholders’ General
2015 Annual Annual Meeting (2016-045), published on
Shareholders’ Shareholders’ 35.86% 20 May 2016 21 May 2016 China Securities Journal, Shanghai
General Meeting General Meeting Securities News, Securities Times and
Hong Kong Ta Kung Pao as well as
http://www.cninfo.com.cn.
Announcement on Resolutions Made
at the Third Special Shareholders’
The Third Special
Special General Meeting for 2016 (2016-060),
Shareholders’
Shareholders’ 35.77% 19 Aug. 2016 20 Aug. 2016 published on China Securities Journal,
General Meeting for
General Meeting Shanghai Securities News, Securities
2016
Times and Hong Kong Ta Kung Pao as
well as http://www.cninfo.com.cn.
Announcement on Resolutions Made
at the Forth Special Shareholders’
The Forth Special
Special General Meeting for 2016 (2016-090),
Shareholders’
Shareholders’ 37.32% 16 Dec. 2016 17 Dec. 2016 published on China Securities Journal,
General Meeting for
General Meeting Shanghai Securities News, Securities
2016
Times and Hong Kong Ta Kung Pao as
well as http://www.cninfo.com.cn.
BOE Technology Group Co., Ltd. Annual Report 2016
2. Special Shareholders’ General Meeting required by the preferred stockholder with voting rights
recovered
□ Applicable √ Not applicable
V Performance of independent directors in the Reporting Period
1. Attendance of independent directors in board meetings and general meetings
Particulars about the independent directors attending the board sessions
Failing to present
Presence by
Name of independent Due presence Presence in Entrusted in person for two
telecommunicati Absence (times)
directors (times) person (times) presence (times) consecutive
on (times)
sessions or not
Lv Tingjie 13 3 10 0 0 No
Wang Huacheng 13 3 10 0 0 No
Hu Xiaolin 7 2 5 0 0 No
Li Xuan 4 1 3 0 0 No
Ji Guoping 6 2 4 0 0 No
Yu Ning 6 2 4 0 0 No
Presence of independent directors in
general meetings (times)
Explanation on failing to present in person for two consecutive sessions
N/A
2. Particulars about independent directors propose objection on relevant events
Whether independent directors propose objection on relevant events or not?
□ Yes √ No
The independent directors didn’t propose objection on relevant events during the Reporting Period.
3. Other explanation on performance of independent directors
Whether the advices of independent directors for the Company were adopted or not
√ Yes □ No
Explanation on the advices of independent directors for the Company being adopted or not adopted
The Company has four current independent directors, who are experts and scholars in the fields of technology, finance, law and
industry. During the Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules, Guidance on
Establishing Independent Director System for Listed Companies, Articles of Association and Independent Director System, the
independent directors paid special attention to the standardized operation of the Company, performed their duties independently and
diligently, issued many precious professional advice in terms of the perfection of systems and routine operating decision-making, etc.,
and issued their independent and fair opinion as independent directors on the related-party transactions, engagement of audit firm,
decision of annual remuneration of senior management staffs, external guarantee and other events needing their opinion occurred in
the Reporting Period, as well as played their due roles in perfecting the supervisory mechanism of the Company, protecting the legal
BOE Technology Group Co., Ltd. Annual Report 2016
right of the Company and the whole shareholders.
VI. Performance of the Special Committees under the Board during the Reporting Period
1. Duty fulfillment of the Strategy Committee under Board of Directors
In the Reporting Period, the Strategy Committee under Board of Directors conscientiously controlled the strategic guidance,
significant projects, and production and operation activities. During the recess of the board session, the Strategy Committee was in
charge of working out the operating strategies of the Company, planning its significant investment and financing projects, and
monitoring its major operation activities, which played an important role in ensuring the Company’s stable and smooth operation in
the year.
2. Duty fulfillment of the Audit Committee under Board of Directors
In the Reporting Period, the Audit Committee conscientiously performed its routine duties, and actively advanced the launch of the
audit work for Y2016. Before the periodic reports were submitted to the Board for review, the Audit Committee convened special
sessions to discuss the reports. At the sessions, the committee members listened to relevant reports, expressed their opinions and put
forward constructive advices concerning the Company’s internal control, financial auditing and so on.
The 2016 annual audit work on financial report of the Audit Committee was detailed as follows:
1) Before the audit, the Committee discussed and decided the schedule of audit work for the 2016 annual report with KPMG
Huazhen Certified Public Accountants (hereinafter referred to as “KPMG”);
2) Before the presence of KPMG, the Committee reviewed the financial statements prepared by the Company and issued a written
opinion;
3) Upon the presence of KPMG, the Audit Committee convened meetings to communicate with KPMG, reviewed the Company’s
financial statements following the preliminary audit opinion issued by KPMG, and issued the written opinion concerned. Before the
Board reviewed the annual report, the Committee held a meeting to review the annual financial statements, the employment of the
CPAs firm, etc., and made resolutions for further review by the Board.
4) In the audit process, the Committee issued a written Audit Urge Letter to KPMG, asking KPMG to finish the audit in an orderly
manner in strict accordance with the set schedule, so as to submit the annual audit report on time;
The Audit Committee is of the opinion that the Financial Report is complete and factual with complete consolidated entities and
statements, an accurate consolidation basis, a steady and consistent accounting policy, proper application of the accounting policy
and reasonable accounting estimates, which is in line with the Enterprise Accounting Standards and other regulations promulgated by
the Ministry of Finance.
3. Duty fulfillment of Nomination & Remuneration & Appraisal Committee under Board of Directors
In the Reporting Period, in accordance with relevant rules and laws, the Nomination & Remuneration & Appraisal Committee
conscientiously performed its duties endowed by the Board through strictly executing the appointment procedure of senior
management staffs, as well as the appraisal procedure for directors and senior management staffs. Reviewed the qualification of the
director candidates nominated by the board of directors, the board of supervisors and qualify shareholders and searched by
Nomination & Remuneration & Appraisal Committee and allowance of senior managerial staffs of the Company.
VII. Performance of the Supervisory Committee
Whether the Supervisory Committee finds the Company existing risks or not in the supervisory activities during the Reporting Period
□ Yes √ No
The Supervisory Committee has no objection on the supervised events during the Reporting Period
BOE Technology Group Co., Ltd. Annual Report 2016
VIII. Performance appraisal and incentive mechanism for senior management staff
According to the performance appraisal method of the Company, Senior management staffs sign an Annual Target Responsibility
Paper with the Company, which sets the annual operation targets, key performance indicators (KPI) as well as the evaluation, reward
and punishment standards. As for the accomplishment of the targets, quarterly analyses, semi-annual reports and annual appraisal will
be conducted. The examination and evaluation results will determine the remunerations, position changes as well as the trainings to
receive of senior management staffs.
BOE Technology Group Co., Ltd. Annual Report 2016
IX Internal control
1. Serious internal control defects found in the Reporting Period
□ Yes √ No
2. Self-evaluation report on internal control
Disclosure date of the internal control self-evaluation report 04/25/2017
On April 25, 2017, the Company published 2016 Internal Control Self-evaluationl Report; disclosure website:
Index to the disclosed internal control self-evaluation report
www.cninfo.com.cn
Total assets of the evaluated entities as a percentage in the
96.00%
consolidated total assets
Operating revenues of the evaluated entities as a percentage in the
92.00%
consolidated operating revenues
Defect identification standards
Type Financial-report related Non-financial-report related
Defect included but not limited to the following characteristics: (1) the
The material fault in a financial report includes but not limited to the
Corporate governance did not form operation mechanism and execution, a
following types:
significant decision failed to run; (2) Existing control designed for the board of
Nature standard (1) the enterprise corrects the publicized financial statements;
directors, managers above risk of control; (3) The directors, supervisors and
(2) material misstatement is found in the current financial statement,
senior management were found fraud; (4) The audit committee and internal audit
which is not found during internal control.
institutions’ supervision of the internal control is invalid
1) The internal control of a financial report (company level, 1) Quantitative standard I of defect identification standards of the non-financial
consolidated statements at group level) refers to the internal control report:
Quantitative standard designed and implemented for objectives in the financial report. The
The amount of direct Significant negative
fault in the internal control of a financial report is classified into major Type
property losses impact
fault, important fault and general fault, identified with a standard
BOE Technology Group Co., Ltd. Annual Report 2016
directly depending on the importance of misstatement in a financial Or punishment by the
report that may be caused by the fault. The potential misstated amount government
shall be calculated based on the proportion of faulty sample and the provincial level
specific identification and quantitative procedures and quantitative RMB100 thousand Yuan
(including provincial)
criteria at company level are as follows: (including RMB100
below but had no
(1) record misstatement sample thousand Yuan)- RMB5
negative influence to
(2) confirm potential misstatement rate million Yuan
the disclosure of the
(3) calculate potential misstated amount (=co-current accumulated Company’s periodic
amount in corresponding accounting subject × potential misstatement Common defect report
rate)
(4) generally, for misstated amount and fault grade, the following can Or punishment by the
be taken as reference for the standard for identifying and quantifying state government
RMB5 million Yuan
the fault in the internal control of a financial report (company level): but had no negative
(including RMB5 million
influence to the
General fault: 0.1‰×total group assets ≤ misstated amount < 0.5‰× Yuan)
disclosure of the
total group assets; important fault: 0.5‰ × total group assets ≤ - RMB10 million Yuan
Significant Company’s periodic
misstated amount < 1‰× total group assets; major fault: misstated
defect report
amount ≥ 1‰× total group assets. In addition, it must be noted that
the company with relatively small assets amount and scales may Or public disclosed but
separately confirm quantitative standard in formulating a scheme for had no negative
assessment and the importance level shall not be higher than the influence to the
RMB10 million Yuan above
abovementioned standard. disclosure of the
2) the assessment team (process level), based on the auditing standard, Company’s periodic
after confirming a proper criterion, generally applies professional Major Defect report
judgment to reasonably select a percentage based on which to confirm
2) The Quantitative standard II when the defect of internal control related to
the importance level. The following are examples of reference value:
quantifiable assessment KPI target but unable or unable specifically use the
(1) for a profit-making enterprise, the percentage is 5% of profit before
aforesaid methods to recognized the type of defect of internal control and the
tax or net profit after tax from current operations, or 0.5% of the total
actual recognition procedure and standards were as following:
revenue. Under appropriate circumstances, a certain proportion of total
assets or net assets may be adopted; The completeness of The completeness of some
Type
(2) for a non-profit organization, 0.5% of the total expenses or revenue; Group KPI target organization’s KPI target
BOE Technology Group Co., Ltd. Annual Report 2016
(3) for a mutual fund company, 0.5% of the net assets. Misstated Common 10%≤KPI completeness of 30%≤KPI completeness of
amount and fault grade: General fault: 25% × importance level ≤ defect target＜30% target＜50%
misstated amount < 50%× importance level; important fault: 50%×
Significant 30%≤KPI completeness of 50%≤KPI completeness of
importance level ≤ misstated amount < 75%× importance level; the
defect target＜50% target＜80%
standard for quantifying and identifying the fault in internal control of a
Major KPI completeness of KPI completeness of
financial report (process level) when misstated amount ≥75% ×
importance level shall be based on the confirmed importance level. Defect target≥50% target≥80%
Number of serious
financial-report-related defects
Number of serious
non-financial-report-related defects
Number of important
financial-report-related defects
Nature standard
X Auditor’s report on internal control
√ Applicable □ Not applicable
Opinion paragraph in the auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on December 31, 2016 according to the Basic Rules on
Enterprise Internal Control and other relevant stipulations.
Auditor’s report on internal control disclosed or not Disclosed
Disclosure date 04/25/2017
Index to the disclosed auditor’s report on internal
The Company discloses the Audit Report on Internal Control on April 25, 2017, for details, please refer to http://www.cninfo.com.cn
control
Type of the auditor’s opinion Standard unqualified opinion
Serious non-financial-report-related defects No
Whether any modified opinions are expressed by the CPAs firm in its auditor’s report on the Company’s internal control
□ Yes √ No
Whether the auditor’s report on the Company’s internal control issued by the CPAs firm is consistent with the self-evaluation report of the Board
√ Yes □ No
BOE Technology Group Co., Ltd. Annual Report 2016
Section X Corporate Bonds
Corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this Report or were
due but could not be redeemed in full
Yes
1. Basic information of the Company bonds
Bonds balance
Interest
Name Abbr. Code Release date Due date (RMB’0,000 Way of redemption
rate
Yuan)
2016 Public offering of the
Paid for the interests
corporation bonds for the
by year and the
qualified investors of BOE 16BOE01 112358 21 Mar. 2016 21 Mar. 2021 1,000,000 3.15%
principals once when
Technology Group Co.,
expired.
Ltd. (Phase I)
Listed or transferred trading place of the
List on the SZSE.
Company bonds
Appropriate arrangement of the
the qualified investors
investors
List of the interests payment of the
On March 21, 2017, the Company completed the 2016 annual interest payout for the
Company bonds during the Reporting
qualified investors of its 2016 corporate bonds.
Period
Execution of the relevant regulations
during the Reporting Period such as the There was affiliated issuers’ up-regulation nominal interest rate option and the investors’
affiliated option clause of the issuers or sell-back option at the year-end of the third year of the current bond duration; and up to the
investors, special clauses such as the approval quotation date of the Annual Report, the bonds were not yet needed to be
exchangeable regulations of the executed.
Company bonds (if applicable)
2. List of the bond trustee and the rating organization
Bond trustee:
Rm. 2203,
Zhu
China North Tower,
Mingqiang,
Name Securities Co., Office address Shanghai Contact Contact number 021-68801565
Han Yong,
Ltd. Securities
Sheng Cheng
Plaza, 528
BOE Technology Group Co., Ltd. Annual Report 2016
Pudong Road
South,
Shanghai
Rating organization executed the tracking rating of the Company bonds of the Reporting Period:
12/F, PICC Building, No.2 Jianwai Street,
Name United Ratings Co., Ltd. Office address
Chaoyang District, Beijing
Alternation reasons, execution process and
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)
3. List of the usage of the raised funds of the Company bonds
List of the usage of the raised funds and The Company executed the internal decision-making process strictly according to the
the execution process of the Company applications committed by the prospectus as well as the reviewal regulations of the Board
bonds of Directors and Annual General Meeting of the Company.
Ending balance (RMB’0,000 Yuan) 2.73
The Company signed the Agreement on the 2016 Public Offering of the Corporation
Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE
Operating situation of the raised funds Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co,
special account Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing Branch
of China Merchants Bank Co., Ltd., which set up the raise funds account that ensure the
exclusive use of the special fund of the raise funds.
Whether the usage of the raised funds met
with the usage, using plan and other Yes
agreements committed on the prospectus
4. Rating situation of the Company bonds information
On 25 Jan. 2016, United Ratings Co., Ltd. (hereinafter referred to as “United Ratings”) issued the Analysis Report of the 2016
Corporate Bonds Credit Rating of BOE Technology Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of
the credit rating of the current corporate bonds. The main body of the credit rating of the Company was AAA with the rating outlook
was stable that reflected the rather strong debt paying ability which would basically not be influenced by the disadvantage economic
environment with rather low default risks. The credit rating of the bonds of the Reporting Period was AAA, which reflected the
rather high bond credit quality and the rather low credit risks.
On 24 Jun. 2016, United Ratings issued the Tracking Rating Report of the 2016 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
25 Jun. 2016, the tracking rating report of the current bonds by the United Rating will be disclosed on www.szse.cn and
www.unitedratings.com.cn with the public disclosure date of www.szse.cn not later than that of other trading places, media or other
places.
BOE Technology Group Co., Ltd. Annual Report 2016
United Ratings is expected to issue the Tracking Rating Report of the 2017 Corporate Bonds of BOE Technology Group Co., Ltd. in
June 2017. The Company will disclose Tracking Rating Analysis Report in http://www.cninfo.com.cn/ in time, vast investors, please
pay attention to it.
5. Credit-adding mechanism, repayment plan and other repayment guarantee measures of the Company
bonds
There was no guarantee of the corporate bonds of the Reporting Period.
The profits of the main business of the issuers was the main resources of the debt service fund of the bonds of the Reporting Period.
The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every 21 March of each
year from Y2017 to Y2021 is the interest date of the last interest accural year (if met with the legal holidays or rest days, should
postpone which to the subsequent 1st working day); if the investors executed the put-back right, the interest date of the part of the
put-back bonds is every 21 March from Y2017 to Y2021 (if met with the legal holidays or rest days, should postpone which to the
subsequent 1st working day). The principal of the current bonds should be paid at one time when expired. The payment date of the
current bonds would be 21 March 2021 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st
working day); if the investors executed the put-back right, the payment date of the part of the put-back bonds would be 21 March
2019 (if met with the legal holidays or rest days, should postpone which to the subsequent 1st working day).
The repayment guarantee measures of the corporate bonds of the Reporting Period: to furmulate the Meeting Regulations of the
Bondholders and the repayment guarantee measures; to furmulate and strictly carry out the funds management plans; to fuly exert the
functions of the bond trustees; to strictly disclose the information; at the same time,when expected to fail to repay the principals and
interest of the bonds on time or failed to repay the principals and interest of the bonds when expired, the Company will at least adopt
the measures of the execution of the capital expenditures projects such as to postpone the significant external investment and the
purchase as well as merger and so on that guarantee the repayment of the debts.
During the Reporting Period, there was no alternation of the credit-adding mechanism, debt repayment plan and other repatment
guarantee measures of the corporate bonds.
6. Convene situation of the bonds holders meeting during the Reporting Period
Trustee of the Company China Securities held the First Bondholders Meeting of the 2016 Corporate Bonds on cancelling repurchased
shares of the Company according to laws and correspondingly decreasing the registered capital of the Company according to relevant
regulations in Rules of Bondholders Meeting and Raising Specifications. The on-the-spot meeting was held at ten o’clock on 1
September, 2016 in No. 12 meeting room of the Company, Xihuan Middle Road, Beijing Economic and Technological Development
Zone, Beijing City. The meeting used the method of combining with on-the-spot voting, network voting and communication (post or
fax) voting. The Bondholders Meeting passed the Proposal about Not Requiring the Company to Pay off Debts in Advance and to
Provide Guarantee.
7. List of the duty execution of the bonds trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention on the operating,finance and credit
situation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Trading
of the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed the
responsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.
BOE Technology Group Co., Ltd. Annual Report 2016
8. The major accounting data and the financial indicators of the recent 2 years of the Company up the
period-end
Unit: RMB’0,000 Yuan
Item 2016 2015 Change rate of the same period
EBITDA 1,490,866 1,146,017 30.09%
Current ratio 219.70% 220.83% -1.13%
Asset-liability ratio 55.14% 48.65% 6.49%
Quick ratio 200.63% 197.94% 2.69%
Total debt ratio of EBITDA 13.18% 15.44% -2.26%
Times interest earned 1.93 1.79 7.82%
Times interest earned of cash 7.05 9.05 -22.10%
Times interest earned of EBITDA 8.05 6.08 32.40%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA increased of 31.41% over the same period of last year, which mainly due to increase in net profit this year of Y2016;
9. List of the interest payment of other bonds and bonds financing instruments during the Reporting Period
No such situation of the Company during the Reporting Period.
10. List of the acquired bank credit lines, usage and the repayment of the bank loans
The operation and reputation of the Company was favourable and the profitability as well as the debt payment ability of the
Company was strong as well as the Company maintained the long-term cooperative partnerships with China Development Bank,
Ping An Bank and Industrial and Commercial Bank. Up to 31 Dec. 2016, the total amount of the credit line of the major cooperative
banks with the Company was of RMB29.20 billion Yuan with the used credit line of RMB5.9 billion Yuan and the unused amount of
which was of RMB23.3 billion Yuan.
11. List of the execution of the agreements or the commitments related to the Company bonds raising
specification during the Reporting Period
Up to the approval quotation date of the Annual Report, the Company strictly carried out each agreement and commitment of the
current bond prospectus, and there was no any situation of the inefficient execution of the relevant agreements or commitments
according to the bond prospectus by the Company that caused the negative influences on the bonds investors.
12. Significant events occurred during the Reporting Period
Up to 31 Dec. 2016, the audited balance of loans (consolidated statement) of the Company is RMB 68.443 billion Yuan, increasing
BOE Technology Group Co., Ltd. Annual Report 2016
RMB 24.726 billion Yuan compared with RMB 43.717 billion Yuan of audited balance of loans (consolidated statement) of the
Company on 30 Dec. 2015. The increased amount accounts for 31.56% in RMB 78.351 billion of audited net asset (consolidated
statement) on 31 Dec. 2015. The increased amount is within the limit which is approved in annual shareholders meeting, mainly
comprising newly issuing corporate bonds, entrusting loans, borrowing from bank etc, required by project operation of the Company
and within range of normal business activities.
The above increased loans do not have significant influence on debt paying ability of the Company.
The Company has disclosed on December 3, 2016 the announcement about accumulative newly increased loans in the year in
http://www.cninfo.com.cn/.
13. Whether there was guarantor of the Company bonds
□ Yes √ No
BOE Technology Group Co., Ltd. Annual Report 2016
Section XI Financial Report
I. Audit Report
Type of audit opinion Standard unqualified audit opinion
Signature date of audit report 21 Apr. 2017
Name of the audit agency KPMG Huazhen Certified Public Accountants (LLP)
Reference number of audit report KPMGHZSZ No. 1701961
Name of CPA Su Xing, Wang Ting
AUDITORS’ REPORT
毕马威华振审字第 1701961 号
All Shareholders of BOE Technology Group Company Limited:
We have audited the accompanying financial statements of BOE Technology Group Company
Limited (“the Company”), which comprise the consolidated balance sheet and balance sheet as at
31 December 2016, the consolidated income statement and income statement, the consolidated
cash flow statement and cash flow statement, the consolidated statement of changes in
shareholders’ equity and statement of changes in shareholders’ equity for the year then ended, and
notes to the financial statements.
Management’s Responsibility for the Financial Statements
The Company’s management is responsible for the preparation and fair presentation of these
financial statements. This responsibility includes: (1) preparing these financial statements in
accordance with Accounting Standards for Business Enterprises issued by the Ministry of Finance
of the People’s Republic of China, and fairly presenting them; (2) designing, implementing and
maintaining internal control which is necessary to enable that the financial statements are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants. Those standards require that we comply with China Code of Ethics for Certified
Public Accountants, and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
BOE Technology Group Co., Ltd. Annual Report 2016
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the consolidated
financial position and financial position of the Company as at 31 December 2016, and the
consolidated financial performance and financial performance and the consolidated cash flows and
cash flows of the Company for the year then ended in accordance with the requirements of
Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People’s
Republic of China.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of China
Su Xing
Beijing, China Wang Ting
21 April 2017
BOE Technology Group Co., Ltd. Annual Report 2016
II. Financial Statements
1. Financial Statements (see schedules)
2. Notes to financial statements (see attachments)
Currency unit for the statements in the notes to the financial statements: RMB Yuan
BOE Technology Group Co., Ltd. Annual Report 2016
Section XII Documents Available for Reference
Note: The Company shall disclose a list of the documents available for reference, which is as follows:
(I) The financial statements with the signatures and seals of the company principal, the chairman of the Executive Committee (the
Chief Executive Officer), the accounting head for this Report and the head of the accounting organ (the accounting head);
(II) The original of the Auditor’s Report with the seal of the CPAs firm and the signatures & seals of the certified public accountants;
and
(III) The texts of all the Company’s documents ever disclosed on http://www. cninfo.com.cn in the Reporting Period, and the
originals of the public announcements.
The above documents available for reference can be found at the Board Secretary’s Office.
Chairman of the Board: Mr. Wang Dongsheng (signature)
Date of the Board of Directors approving to report: 21 Apr 2017
BOE Technology Group Co., Ltd. Annual Report 2016
BOE Technology Group Company Limited
ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2016 TO 31 DECEMBER 2016
IF THERE IS ANY CONFLICT OF MEANING BETWEEN THE CHINESE VERSION
AND ENGLISH TRANSLATION, THE CHINESE VERSION WILL PREVAIL
v
AUDITORS’ REPORT
毕马威华振审字第 1701961 号
All Shareholders of BOE Technology Group Company Limited:
We have audited the accompanying financial statements of BOE Technology Group
Company Limited (“the Company”), which comprise the consolidated balance sheet and
balance sheet as at 31 December 2016, the consolidated income statement and income
statement, the consolidated cash flow statement and cash flow statement, the consolidated
statement of changes in shareholders’ equity and statement of changes in shareholders’
equity for the year then ended, and notes to the financial statements.
Management’s Responsibility for the Financial Statements
The Company’s management is responsible for the preparation and fair presentation of these
financial statements. This responsibility includes: (1) preparing these financial statements in
accordance with Accounting Standards for Business Enterprises issued by the Ministry of
Finance of the People’s Republic of China, and fairly presenting them; (2) designing,
implementing and maintaining internal control which is necessary to enable that the financial
statements are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants. Those standards require that we comply with China Code of Ethics for
Certified Public Accountants, and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
AUDITORS’ REPORT (continued)
毕马威华振审字第 1701961 号
Opinion
In our opinion, the financial statements present fairly, in all material respects, the consolidated
financial position and financial position of the Company as at 31 December 2016, and the
consolidated financial performance and financial performance and the consolidated cash
flows and cash flows of the Company for the year then ended in accordance with the
requirements of Accounting Standards for Business Enterprises issued by the Ministry of
Finance of the People’s Republic of China.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of
China
Su Xing
Beijing, China Wang Ting
21 April 2017
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
Assets
Current assets
Cash at bank and on hand V.1 58,152,817,223 38,866,861,836
Bills receivable V.2 1,369,836,650 362,053,092
Accounts receivable V.3 16,191,791,617 8,192,514,361
Prepayments V.4 708,511,473 226,447,504
Interest receivable 125,141,573 194,518,278
Other receivables V.5 903,069,416 593,329,847
Inventories V.6 7,833,138,532 6,609,406,228
Non-current assets due within
one year 66,321,715 -
Other current assets V.7 5,691,200,226 8,712,017,517
Total current assets 91,041,828,425 63,757,148,663
---------------------- ----------------------
Non-current assets
Available-for-sale financial assets V.8 622,502,556 454,096,246
Long-term equity investments V.9 1,356,111,395 1,260,302,959
Investment properties V.10 1,192,932,896 1,227,099,427
Fixed assets V.11 69,947,586,967 63,565,099,405
Construction in progress V.12 33,008,248,720 18,645,461,692
Intangible assets V.13 3,136,873,387 2,679,239,255
Goodwill V.14 197,963,688 197,963,688
Long-term deferred expenses V.15 344,891,227 341,526,213
Deferred tax assets V.16 146,538,565 117,105,220
Other non-current assets V.17 4,139,533,216 347,851,674
Total non-current assets 114,093,182,617 88,835,745,779
---------------------- ----------------------
Total assets 205,135,011,042 152,592,894,442
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.18 4,916,965,507 5,091,974,830
Bills payable V.19 640,262,461 343,277,037
Accounts payable V.20 13,835,615,665 9,849,935,031
Advances from customers V.21 548,942,714 386,538,903
Employee benefits payable V.22 1,542,852,266 1,092,103,138
Taxes payable V.23 656,351,894 224,415,009
Interest payable 676,358,748 348,173,849
Dividends payable V.24 9,651,170 9,651,170
Other payables V.25 14,395,525,248 8,864,929,878
Non-current liabilities due within
one year V.26 3,684,236,935 2,283,535,113
Other current liabilities V.27 532,983,474 376,906,959
Total current liabilities 41,439,746,082 28,871,440,917
---------------------- ----------------------
Non-current liabilities
Long-term loans V.28 49,885,166,211 36,341,198,145
Bonds payable V.29 9,956,719,508 -
Long-term payables V.30 1,261,446,565 -
Provisions V.31 16,457,010 16,457,010
Deferred income V.32 2,494,122,929 2,406,244,676
Deferred tax liabilities V.16 448,625,054 435,880,215
Other non-current liabilities V.33 7,616,672,523 6,170,843,660
Total non-current liabilities 71,679,209,800 45,370,623,706
---------------------- ----------------------
Total liabilities 113,118,955,882 74,242,064,623
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
Liabilities and shareholders’
equity (continued)
Shareholders’ equity
Share capital V.34 35,153,067,743 35,153,067,743
Capital reserve V.35 39,031,357,529 39,018,900,467
Less: Treasury shares V.36 314,350,824 -
Other comprehensive income V.37 75,718,703 90,153,009
Surplus reserve V.38 743,139,855 592,242,059
Retained earnings V.39 4,011,055,487 2,630,912,286
Total equity attributable to
shareholders of the Company 78,699,988,493 77,485,275,564
---------------------- ----------------------
Non-controlling interests 13,316,066,667 865,554,255
Total shareholders’ equity 92,016,055,160 78,350,829,819
---------------------- ----------------------
Total liabilities and shareholders’ equity 205,135,011,042 152,592,894,442
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
Assets
Current assets
Cash at bank and on hand XIV.1 7,649,349,412 3,327,934,443
Bills receivable 200,197,354 -
Accounts receivable XIV.2 45,853,859 59,397,930
Prepayments 7,462,061 6,825,464
Interest receivable 21,525,261 52,437,366
Dividends receivable XIV.3 1,007,950,479 90,941,079
Other receivables XIV.4 1,629,176,234 1,281,026,259
Inventories 12,069,865 10,846,799
Other current assets XIV.5 25,504,074 109,578,393
Total current assets 10,599,088,599 4,938,987,733
---------------------- ----------------------
Non-current assets
Available-for-sale financial assets XIV.6 177,166,908 176,683,497
Long-term equity investments XIV.7 99,918,451,449 77,551,596,817
Investment properties 164,540,581 169,723,827
Fixed assets 862,860,227 846,738,969
Construction in progress 468,494,838 160,409,258
Intangible assets 624,007,700 638,764,378
Long-term deferred expenses 98,745,001 104,917,711
Deferred tax assets XIV.8 47,679,645 -
Other non-current assets 4,010,146,153 2,551,631,765
Total non-current assets 106,372,092,502 82,200,466,222
---------------------- ----------------------
Total assets 116,971,181,101 87,139,453,955
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
Liabilities and shareholders’ equity
Current liabilities
Accounts payable 34,015,337 13,975,839
Advances from customers 1,093,593,891 3,439,149
Employee benefits payable XIV.9 169,917,103 111,350,496
Taxes payable 80,897,741 34,371,553
Interest payable 281,124,448 5,091,297
Dividends payable 6,451,170 6,451,170
Other payables XIV.10 10,791,929,737 7,507,464,657
Non-current liabilities due
within one year 100,000,000 670,000,000
Total current liabilities 12,557,929,427 8,352,144,161
---------------------- ----------------------
Non-current liabilities
Long-term loans XIV.11 18,922,400,000 4,140,720,000
Bonds payable V.29 9,956,719,508 -
Deferred income XIV.12 148,987,694 151,809,223
Total non-current liabilities 29,028,107,202 4,292,529,223
---------------------- ----------------------
Total liabilities 41,586,036,629 12,644,673,384
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Balance sheet as at 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
Liabilities and shareholders’
equity (continued)
Shareholders’ equity
Share capital V.34 35,153,067,743 35,153,067,743
Capital reserve XIV.13 38,157,600,408 38,152,869,635
Less: Treasury shares V.36 314,350,824 -
Other comprehensive income XIV.14 152,323,461 109,786,796
Surplus reserve V.38 743,139,855 592,242,059
Retained earnings XIV.15 1,493,363,829 486,814,338
Total shareholders’ equity 75,385,144,472 74,494,780,571
---------------------- ----------------------
Total liabilities and shareholders’ equity 116,971,181,101 87,139,453,955
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
I. Operating income V.40 68,895,658,963 48,623,732,312
II. Less: Operating costs V.40 56,585,696,091 38,755,090,666
Taxes and surcharges V.41 459,263,933 275,798,416
Selling and distribution expenses V.42 1,984,361,921 1,290,038,686
General and administrative
expenses V.43 5,618,443,652 4,675,778,199
Financial expenses V.44 2,299,116,897 1,496,013,180
Impairment losses V.45 1,594,488,553 1,364,500,152
Add: Investment income V.46 151,006,609 187,191,686
Including: (Loss) / income from
investments in
associates (15,121,347) 4,748,739
III. Operating profit 505,294,525 953,704,699
Add: Non-operating income V.47 2,085,966,318 1,082,717,233
Including: Gains from disposal
of non-current
assets 11,206,342 3,026,374
Less: Non-operating expenses V.48 78,861,768 23,178,815
Including: Losses from disposal
of non-current
assets 64,068,631 11,376,698
IV. Profit before income tax 2,512,399,075 2,013,243,117
Less: Income tax expenses V.49 467,228,316 375,133,185
V. Net profit for the year 2,045,170,759 1,638,109,932
---------------------- ----------------------
Attributable to:
Shareholders of the Company 1,882,571,674 1,636,270,488
Non-controlling interests 162,599,085 1,839,444
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated income statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016
VI. Other comprehensive income,
net of tax V.37 32,059,196 49,447,550
Other comprehensive income
(net of tax) attributable to
shareholders of the Company (14,434,306) 49,522,398
Items that may be reclassified to profit
or loss:
1 Share of other comprehensive
income of the equity method
investments 42,053,252 26,510,264
2 Gains or losses arising from
changes in fair value of
available-for-sale financial
assets (16,836,007) 35,188,234
3 Translation differences arising
from translation of foreign
currency financial statements (39,651,551) (12,176,100)
Other comprehensive income (net of
tax) attributable to non-controlling
interests 46,493,502 (74,848)
---------------------- ----------------------
VII. Total comprehensive income for the
year 2,077,229,955 1,687,557,482
Attributable to:
Shareholders of the Company 1,868,137,368 1,685,792,886
Non-controlling interests 209,092,587 1,764,596
VIII. Earnings per share
(1) Basic earnings per share V.50 0.054 0.046
(2) Diluted earnings per share V.50 0.054 0.046
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Income statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
I. Operating income XIV.16 1,890,892,555 1,425,473,680
II. Less: Operating costs 73,853,601 128,651,008
Taxes and surcharges XIV.17 21,040,511 9,972,879
Selling and distribution
expenses 2,769,587 3,014,862
General and administrative
expenses 1,393,918,778 1,016,795,024
Financial expenses /
(net financial income) XIV.18 211,354,173 (91,691,634)
Impairment losses / (reversal) 500,604 (112,708)
Add: Investment income XIV.19 1,111,742,988 459,538,688
Including: (Loss) / income from
investments in
associates (14,730,259) 4,748,739
III. Operating profit 1,299,198,289 818,382,937
Add: Non-operating income XIV.20 260,303,997 94,708,410
Including: Gains from disposal
of non-current
assets 76,084 103,499
Less: Non-operating expenses XIV.21 1,730,874 5,010,447
Including: Losses from disposal
of non-
current assets 96,766 8,690
IV. Profit before income tax 1,557,771,412 908,080,900
Less: Income tax expenses XIV.22 48,793,448 22,348,918
V. Net profit 1,508,977,964 885,731,982
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Income statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
VI. Other comprehensive income,
net of tax XIV.14 42,536,665 37,135,441
Items that may be reclassified to
profit or loss:
1 Share of other comprehensive
income of the equity method
investments 42,053,252 26,510,264
2 Gains arising from changes in
fair value of available-for-sale
financial assets 483,413 10,625,177
VII. Total comprehensive income for the
Year 1,551,514,629 922,867,423
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 68,853,018,038 50,577,270,660
Refund of taxes 3,917,650,651 3,288,689,442
Proceeds from other operating
activities 840,215,406 780,349,439
Sub-total of cash inflows 73,610,884,095 54,646,309,541
---------------------- ----------------------
Payment for goods and services (55,859,347,637) (36,746,483,055)
Payment to and for employees (6,063,846,083) (5,127,957,029)
Payment of various taxes (604,705,988) (1,094,353,613)
Payment for other operating activities (1,009,697,267) (1,184,130,399)
Sub-total of cash outflows (63,537,596,975) (44,152,924,096)
---------------------- ----------------------
Net cash inflow from operating
activities V.51(1) 10,073,287,120 10,493,385,445
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016
II. Cash flows from investing activities:
Proceeds from disposal of
investments 31,157,802,962 12,515,000,000
Investment returns received 149,197,609 184,586,410
Net proceeds from disposal of fixed
assets, intangible assets and
other long-term assets 214,137,335 25,777,766
Cash received from acquisition of
subsidiaries V.51(2) 2,403,114,462 -
Proceeds from government grants
related to assets 47,729,081 223,654,697
Proceeds from other investing
activities 714,771,214 808,295,739
Sub-total of cash inflows 34,686,752,663 13,757,314,612
---------------------- ----------------------
Payment for acquisition of fixed
assets, intangible assets and
other long-term assets (30,702,614,717) (18,607,146,447)
Payment for acquisition of
investments (28,468,266,548) (14,339,727,658)
Net payment for acquisition of
subsidiaries V.51(2) - (404,844,397)
Net payment for disposal of
subsidiaries V.51(2) (10,802,558) -
Sub-total of cash outflows (59,181,683,823) (33,351,718,502)
---------------------- ----------------------
Net cash outflow from investing
activities (24,494,931,160) (19,594,403,890)
---------------------- ----------------------
III. Cash flows from financing activities:
Proceeds from investors 4,500,000,000 -
Including: Proceeds from
non-controlling
shareholders of
subsidiaries 4,500,000,000 -
Proceeds from borrowings 38,124,199,131 18,383,259,217
Net change of cash pledged for
borrowing - 316,363,688
Proceeds from other financing
activities 1,492,848,996 2,541,849,548
Sub-total of cash inflows 44,117,048,127 21,241,472,453
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated cash flow statement for the year ended 31 December 2016
(continued)
(Expressed in Renminbi Yuan)
Note 2016
III. Cash flows from financing activities:
(continued)
Repayments of borrowings (15,306,109,721) (11,506,938,478)
Payment for dividends or interest (2,273,801,245) (1,574,606,575)
Including: Dividends paid to non-
controlling shareholders
of subsidiaries (8,732,530) (200,000)
Net change of cash pledged for
borrowing (17,853,536) -
Payment for other financing activities (378,190,824) (31,000,000)
Sub-total of cash outflows (17,975,955,326) (13,112,545,053)
---------------------- ----------------------
Net cash inflow from financing
activities 26,141,092,801 8,128,927,400
---------------------- ----------------------
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 1,452,623,410 650,122,102
---------------------- ----------------------
V. Net increase / (decrease) in cash
and cash equivalents V.51(1) 13,172,072,171 (321,968,943)
Add: Cash and cash equivalents at
the beginning of the year 36,182,738,217 36,504,707,160
VI. Cash and cash equivalents at the
end of the year V.51(3) 49,354,810,388 36,182,738,217
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Note 2016
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 2,674,977,287 1,299,166,255
Proceeds from other operating
activities 3,981,911,784 1,182,132,246
Sub-total of cash inflows 6,656,889,071 2,481,298,501
---------------------- ----------------------
Payment for goods and services (464,475,338) (520,099,530)
Payment to and for employees (514,664,760) (487,897,643)
Payment of various taxes (79,647,917) (41,607,593)
Payment for other operating
activities (158,578,872) (125,664,468)
Sub-total of cash outflows (1,217,366,887) (1,175,269,234)
---------------------- ----------------------
Net cash inflow from operating
activities XIV.23(1) 5,439,522,184 1,306,029,267
---------------------- ----------------------
II. Cash flows from investing activities:
Proceeds from disposal of
investments 8,236,000,000 -
Investment returns received 128,126,936 454,989,949
Net proceeds from disposal of fixed
assets 775,023 1,282,071
Proceeds from other investing
activities 934,888,042 827,665,579
Sub-total of cash inflows 9,299,790,001 1,283,937,599
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
2016
II. Cash flows from investing activities:
(continued)
Payment for acquisition of fixed
assets, intangible assets and
other long-term assets (848,208,277) (315,534,306)
Payment for acquisition of
investments (30,995,624,582) (9,185,582,156)
Net payment for acquisition of
subsidiaries - (759,738,513)
Payment for other investing
activities (2,040,000,000) (3,166,519,191)
Sub-total of cash outflows (33,883,832,859) (13,427,374,166)
---------------------- ----------------------
Net cash outflow from investing
activities (24,584,042,858) (12,143,436,567)
---------------------- ----------------------
III. Cash flows from financing activities:
Proceeds from borrowings 24,830,951,698 4,692,300,200
Proceeds from other financing
activities 1,280,000,000 3,529,295,099
Sub-total of cash inflows 26,110,951,698 8,221,595,299
---------------------- ----------------------
Repayments of borrowings (670,000,000) (636,550,000)
Payment for interest (511,706,064) (391,739,316)
Payment for other financing
activities (1,584,350,197) (1,700,000,000)
Sub-total of cash outflows (2,766,056,261) (2,728,289,316)
---------------------- ----------------------
Net cash inflow from financing
activities 23,344,895,437 5,493,305,983
---------------------- ----------------------
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Cash flow statement for the year ended 31 December 2016 (continued)
(Expressed in Renminbi Yuan)
Note 2016
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 26,110,206 (5,559,829)
---------------------- ----------------------
V. Net increase / (decrease) in cash
and cash equivalents XIV.23(1) 4,226,484,969 (5,349,661,146)
Add: Cash and cash equivalents
at the beginning of the
year 3,322,215,443 8,671,876,589
VI. Cash and cash equivalents
at the end of the year XIV.23(2) 7,548,700,412 3,322,215,443
These financial statements were approved by the Board of Directors of the Company on 21
April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Less: treasury comprehensive Non-controlling
Note Share capital Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the
year 35,153,067,743 39,018,900,467 - 90,153,009 592,242,059 2,630,912,286 77,485,275,564 865,554,255 78,350,829,819
II. Changes in equity for the year
1. Total comprehensive
income - - - (14,434,306) - 1,882,571,674 1,868,137,368 209,092,587 2,077,229,955
2. Shareholders’ contributions
and decrease of capital
(1) Acquisitions of
subsidiaries’
minorities
interests - 11,579,348 - - - - 11,579,348 12,250,152,355 12,261,731,703
(2) Repurchase of
treasury shares - - 314,350,824 - - - (314,350,824) - (314,350,824)
3. Appropriation of profits V.39
(1) Appropriation for
surplus reserve - - - - 150,897,796 (150,897,796) - - -
(2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677) (8,732,530) (360,263,207)
4. Others - 877,714 - - - - 877,714 - 877,714
III. Balance at the end of the year 35,153,067,743 39,031,357,529 314,350,824 75,718,703 743,139,855 4,011,055,487 78,699,988,493 13,316,066,667 92,016,055,160
These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Less: treasury comprehensive Non-controlling
Note Share capital Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the
year 35,289,637,574 39,084,393,441 198,004,581 40,630,611 503,668,861 1,434,745,673 76,155,071,579 804,334,640 76,959,406,219
II. Changes in equity for the year
1. Total comprehensive
income - - - 49,522,398 - 1,636,270,488 1,685,792,886 1,764,596 1,687,557,482
2. Shareholders’ contributions
and decrease of capital
(1) Acquisitions of
subsidiaries’
minorities
interests - 596,438 - - - - 596,438 61,255,019 61,851,457
(2) Repurchase of
treasury shares - - 79,051,194 - - - (79,051,194) - (79,051,194)
(3) Written off treasury
shares (136,569,831) (140,485,944) (277,055,775) - - - - - -
3. Appropriation of profits V.39
(1) Appropriation for
surplus reserve - - - - 88,573,198 (88,573,198) - - -
(2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677) (1,800,000) (353,330,677)
4. Others - 74,396,532 - - - - 74,396,532 - 74,396,532
III. Balance at the end of the year 35,153,067,743 39,018,900,467 - 90,153,009 592,242,059 2,630,912,286 77,485,275,564 865,554,255 78,350,829,819
These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Statement of changes in shareholders’ equity for the year ended 31 December 2016
(Expressed in Renminbi Yuan)
Other
Less: treasury comprehensive
Share capital Capital reserve shares income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 35,153,067,743 38,152,869,635 - 109,786,796 592,242,059 486,814,338 74,494,780,571
II. Changes in equity for the year
1. Total comprehensive income - - - 42,536,665 - 1,508,977,964 1,551,514,629
2. Shareholders’ contributions
and decrease of capital
(1) Repurchase of treasury
shares - - 314,350,824 - - - (314,350,824)
(2) Written off treasury shares - - - - - - -
3. Appropriation of profits
(1) Appropriation for surplus
reserve - - - - 150,897,796 (150,897,796) -
(2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677)
4. Others - 4,730,773 - - - - 4,730,773
III. Balance at the end of the year 35,153,067,743 38,157,600,408 314,350,824 152,323,461 743,139,855 1,493,363,829 75,385,144,472
These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Statement of changes in shareholders’ equity for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Other
Less: treasury comprehensive
Share capital Capital reserve shares income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 35,289,637,574 38,218,959,047 198,004,581 72,651,355 503,668,861 41,186,231 73,928,098,487
II. Changes in equity for the year
1. Total comprehensive income - - - 37,135,441 - 885,731,982 922,867,423
2. Shareholders’ contributions
and decrease of capital
(1) Repurchase of treasury
shares - - 79,051,194 - - - (79,051,194)
(2) Written off treasury shares (136,569,831) (140,485,944) (277,055,775) - - - -
3. Appropriation of profits
(1) Appropriation for surplus
reserve - - - - 88,573,198 (88,573,198) -
(2) Distributions to
shareholders - - - - - (351,530,677) (351,530,677)
4. Others - 74,396,532 - - - - 74,396,532
III. Balance at the end of the year 35,153,067,743 38,152,869,635 - 109,786,796 592,242,059 486,814,338 74,494,780,571
These financial statements were approved by the Board of Directors of the Company on 21 April 2017.
Wang Dongsheng Chen Yanshun Sun Yun (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial Officer
(Signature and stamp) (Signature and stamp) (Signature and stamp)
The notes on pages 21 to 142 form part of these financial statements.
BOE Technology Group Company Limited
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by
shares established on 9 April 1993 in Beijing, with its head office located at Beijing.
The parent of the Company and the Company’s ultimate holding company is Beijing
Electronics Holdings Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as “the Group”) comprise three main
business segments: Display device business, Smart system business and
Healthcare service business. For information about the subsidiaries of the
Company, please refer to Note VII. During the reporting period, the information
about increases and decreases in the Group’s subsidiaries is disclosed in Note VI.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
III. Significant accounting policies and accounting estimates
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises or referred to as China Accounting
Standards (“CAS”). These financial statements present truly and completely the
consolidated financial position and financial position of the Company as at 31
December 2016, and the consolidated financial performance and financial
performance and the consolidated cash flows and cash flows of the Company for the
year then ended.
These financial statements also comply with the disclosure requirements of
“Regulation on the Preparation of Information Disclosures by Companies Issuing
Securities, No. 15: General Requirements for Financial Reports” as revised by the
China Securities Regulatory Commission (“CSRC”) in 2014.
2. Accounting period
The accounting period is from 1 January to 31 December.
3. Operating cycle
The Company takes the period from the acquisition of assets for processing to until
the ultimate realisation of cash or cash equivalents as a normal operating cycle.
The operating cycle of the Company is usually less than 12 months.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
4. Functional currency
The Company’s functional currency is Renminbi and these financial statements are
presented in Renminbi. Functional currency is determined by the Company and its
subsidiaries on the basis of the currency in which major income and costs are
denominated and settled. Some of the Company’s subsidiaries have functional
currencies that are different from the Company’s functional currency. Their financial
statements have been translated based on the accounting policy set out in Note III.8.
5. Accounting treatments for business combinations involving entities under common
control and not under common control
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business
combination in which all of the combining entities are ultimately controlled by the
same party or parties both before and after the business combination, and that
control is not transitory. The assets acquired and liabilities assumed are measured
based on their carrying amounts in the consolidated financial statements of the
ultimate controlling party at the combination date. The difference between the
carrying amount of the net assets acquired and the consideration paid for the
combination (or the total par value of shares issued) is adjusted against share
premium in the capital reserve, with any excess adjusted against retained earnings.
Any costs directly attributable to the combination are recognised in profit or loss
when incurred. The combination date is the date on which one combining entity
obtains control of other combining entities .
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by the
same party or parties both before and after the business combination. Where (1)
the aggregate of the fair value at the acquisition date of assets transferred (including
the acquirer’s previously held equity interest in the acquiree), liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the
acquiree, exceeds (2) the acquirer’s interest in the fair value at the acquisition date of
the acquiree’s identifiable net assets, the difference is recognised as goodwill (see
Note III.18) Where (1) is less than (2), the difference is recognised in profit or loss for
the current period. The costs of issuing equity or debt securities as a part of the
consideration for the acquisition are included in the carrying amounts of these equity
or debt securities upon initial recognition. Other acquisition-related costs are
expensed when incurred. The acquiree’s identifiable asset, liabilities and
contingent liabilities, if the recognition criteria are met, are recognised by the Group
at their acquisition-date fair value. The acquisition date is the date on which the
acquirer obtains control of the acquiree.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
For a business combination involving entities not under common control and
achieved in stages, the Group remeasures its previously-held equity interest in the
acquiree to its acquisition-date fair value and recognises any resulting difference
between the fair value and the carrying amount as investment income for the current
period. In addition, any amount recognised in other comprehensive income that
may be reclassified to profit or loss, in prior reporting periods relating to the
previously-held equity interest, and any other changes in the owners’ equity under
equity accounting, are transferred to investment income in the period in which the
acquisition occurs (see Note III.12(2)(b)).
6. Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the
consolidated financial statements comprise the Company and its subsidiaries.
Control exists when the investor has all of following: power over the investee;
exposure, or rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. When
assessing whether the Group has power, only substantive rights (held by the Group
and other parties) are considered. The financial position, financial performance and
cash flows of subsidiaries are included in the consolidated financial statements from
the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet
within shareholders’ equity. Net profit or loss attributable to non-controlling
shareholders is presented separately in the consolidated income statement below
the net profit line item. Total comprehensive income attributable to non-controlling
shareholders is presented separately in the consolidated income statement below
the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the
opening owners’ equity of the subsidiary, the excess is still allocated against the
non-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from
those of the Company, the Company makes necessary adjustments to the financial
statements of the subsidiary based on the Company’s own accounting period or
accounting policies. Intra-group balances and transactions, and any unrealised
profit or loss arising from intra-group transactions, are eliminated when preparing the
consolidated financial statements. Unrealised losses resulting from intra-group
transactions are eliminated in the same way as unrealised gains, unless they
represent impairment losses that are recognised in the financial statements.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities under common control, the subsidiary’s assets and
liabilities based on their carrying amounts in the financial statements of the ultimate
controlling party are included in the consolidated financial statements as if the
combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated
financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities not under common control, the identifiable assets and
liabilities of the acquired subsidiaries are included in the scope of consolidation from
the date that control commences, based on the fair value of those identifiable assets
and liabilities at the acquisition date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or
losses are recognised as investment income for the current period. The remaining
equity interests is re-measured at its fair value at the date when control is lost, any
resulting gains or losses are also recognised as investment income for the current
period.
When the Group loses control of a subsidiary in multiple transactions in which it
disposes of its long-term equity investment in the subsidiary in stages, the following
are considered to determine whether the Group should account for the multiple
transactions as a bundled transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arranges work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least
one other arrangement;
- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for
in accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which
eventually results in the loss of control in the subsidiary, these multiple transactions
are accounted for as a single transaction. In the consolidated financial statements,
the difference between the consideration received and the corresponding proportion
of the subsidiary’s net assets (calculated continuously from the acquisition date) in
each transaction prior to the loss of control shall be recognised in other
comprehensive income and transferred to profit or loss when the parent eventually
loses control of the subsidiary.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s
non-controlling shareholders or disposes of a portion of an interest in a subsidiary
without a change in control, the difference between the proportion interests of the
subsidiary’s net assets being acquired or disposed and the amount of the
consideration paid or received is adjusted to the capital reserve (share premium) in
the consolidated balance sheet, with any excess adjusted to retained earnings.
7. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily
withdraw on demand, and short-term, highly liquid investments that are readily
convertible into known amounts of cash and are subject to an insignificant risk of
change in value.
8. Foreign currency transactions and translation of financial statements denominated in
foreign currencies
When the Group receives capital in foreign currencies from investors, the capital is
translated to Renminbi at the spot exchange rate at the date of the receipt. Other
foreign currency transactions are, on initial recognition, translated to Renminbi at the
spot exchange rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the
spot exchange rate at the balance sheet date. The resulting exchange differences
are generally recognised in profit or loss, unless they arise from the re-translation of
the principal and interest of specific borrowings for construction of qualifying assets
(see Note III.16). Non-monetary items that are measured at historical cost in foreign
currencies are translated to Renminbi using the exchange rate at the transaction
date. Non-monetary items that are measured at fair value in foreign currencies are
translated using the exchange rate at the date the fair value is determined. The
resulting exchange differences are recognised in profit or loss, except for the
differences arising from the re-translation of available-for-sale financial assets, which
are recognised in other comprehensive income.
Assets and liabilities of foreign operation are translated to Renminbi at the spot
exchange rate at the balance sheet date. Equity items, excluding “retained
earnings”, are translated to Renminbi at the spot exchange rates at the transaction
dates. Income and expenses of foreign operation are translated to Renminbi at the
rates that approximate the spot exchange rates at the transaction dates. The
resulting translation differences are recognised in other comprehensive income.
The translation differences accumulated in shareholders’ equity with respect to a
foreign operation is transferred to profit or loss in the period when the foreign
operation is disposed.
9. Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and
equity securities other than those classified as long-term equity investments (see
Note III.12), receivables, payables, loans and borrowings, and share capital, etc.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(1) Recognition and measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the
Group becomes a party to the contractual provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial
recognition based on the purpose of acquiring assets or assuming liabilities: financial
assets and financial liabilities at fair value through profit or loss, loans and
receivables, held-to-maturity investments, available-for-sale financial assets and
other financial liabilities.
Financial assets and financial liabilities are measured initially at fair value. For
financial assets and financial liabilities at fair value through profit or loss, any related
directly attributable transaction costs are charged to profit or loss; for other
categories of financial assets and financial liabilities, any related directly attributable
transaction costs are included in their initial costs. Subsequent to initial recognition,
financial assets and liabilities are measured as follows:
- Financial assets and financial liabilities at fair value through profit or loss
(including financial assets or financial liabilities held for trading)
Subsequent to initial recognition, financial assets and financial liabilities at fair
value through profit or loss are measured at fair value, and changes therein are
recognised in profit or loss.
- Receivables
Receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
Subsequent to initial recognition, receivables are measured at amortised cost
using the effective interest method.
- Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or
determinable payments and fixed maturity that the Group has the positive
intention and ability to hold to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured at
amortised cost using the effective interest method.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
- Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are
designated upon initial recognition as available for sale and other financial assets
which do not fall into any of the above categories.
Available-for-sale investments in equity instruments whose fair value cannot be
measured reliably are measured at cost subsequent to initial recognition. Other
available-for-sale financial assets are measured at fair value subsequent to initial
recognition and changes therein are generally recognised in other comprehensive
income, except for impairment losses and foreign exchange gains and losses
from monetary financial assets which are recognised directly in profit or loss.
When an investment is derecognised, the gain or loss accumulated in other
comprehensive income is reclassified to profit or loss. Dividend income is
recognised in profit or loss when the investee approves the dividends. Interest is
recognised in profit or loss using the effective interest method (see Note III.23 (4)).
- Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or
loss are classified as other financial liabilities.
Other financial liabilities include liabilities arising from financial guarantee
contracts. Financial guarantees are contracts that require the Group (i.e. the
guarantor) to make specified payments to reimburse the beneficiary of the
guarantee (the holder) for a loss the holder incurs because a specified debtor fails
to make payment when due in accordance with the terms of a debt instrument.
Where the Group issues a financial guarantee, subsequent to initial recognition,
the guarantee is measured at the higher of the amount initially recognised less
accumulated amortisation and the amount of a provision determined in
accordance with the principles for contingent liabilities (see Note III.22).
Liabilities other than those arising from financial guarantee contracts are
measured at amortised cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
Financial assets and financial liabilities are generally presented separately in the
balance sheet, and are not offset. However, a financial asset and a financial liability
are offset and the net amount is presented in the balance sheet when both of the
following conditions are satisfied:
- the Group currently has a legally enforceable right to set off the recognised
amounts;
- the Group intends either to settle on a net basis, or to realise the financial asset
and settle the financial liability simultaneously.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognised if the Group’s contractual rights to the cash flows
from the financial asset expire or if the Group transfers substantially all the risks and
rewards of ownership of the financial asset to another party.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
Where a transfer of a financial asset in its entirety meets the criteria for
derecognition, the difference between the two amounts below is recognised in profit
or loss:
- the carrying amount of the financial asset transferred;
- the sum of the consideration received from the transfer and any cumulative gain
or loss that has been recognised directly in shareholders’ equity.
The Group derecognises a financial liability (or part of it) only when its contractual
obligation (or part of it) is discharged or cancelled or expires.
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit
or loss) are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, an impairment loss
is recognised.
Objective evidence that a financial asset is impaired includes but is not limited to:
(a) significant financial difficulty of the issuer or obligor;
(b) a breach of contract by the borrower, such as a default or delinquency in
interest or principal payments;
(c) it becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;
(d) the disappearance of an active market for that financial asset because of
financial difficulties faced by the issuer;
(e) significant changes with an adverse effect that have taken place in the
technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of an investment in an equity instrument may
not be recovered by the investor;
(f) a significant (i.e. a decline of 50%) or prolonged decline in the fair value (i.e. a
decline persisting for nine months) of an investment in an equity instrument
below its cost.
For the calculation method of impairment of receivables, refer to Note III.10. The
impairment of other financial assets is measured as follows:
- Held-to-maturity investments
Held-to-maturity investments are assessed for impairment on an individual basis
as follows. Where impairment is assessed on an individual basis, an impairment
loss in respect of a held-to-maturity investment is calculated as the excess of its
carrying amount over the present value of the estimated future cash flows
(excluding future credit losses that have not been incurred) discounted at the
original effective interest rate. Impairment losses are recognised in profit or loss.
If, after an impairment loss has been recognised on held-to-maturity investments,
there is a recovery in the value of the financial asset which can be related
objectively to an event occurring after the impairment was recognised, the
previously recognised impairment loss is reversed through profit or loss. A
reversal of an impairment loss will not result in the asset’s carrying amount
exceeding what the amortised cost would have been had no impairment loss been
recognised in prior years.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
- Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual
basis and on a collective group basis. When an available-for-sale financial asset
is impaired, the cumulative loss arising from a decline in fair value that has been
recognised directly in shareholders’ equity is reclassified to profit or loss even
though the financial asset has not been derecognised.
If, after an impairment loss has been recognised on an available-for-sale debt
instrument, the fair value of the debt instrument increases in a subsequent period
and the increase can be objectively related to an event occurring after the
impairment loss was recognised, the impairment loss is reversed through profit or
loss. An impairment loss recognised for an investment in an equity instrument
classified as available-for-sale is not reversed through profit or loss. The
impairment loss on an investment in an unquoted equity instrument whose fair
value cannot be reliably measured is not reversed.
(5) Equity instrument
The consideration received from the issuance of equity instruments net of transaction
costs is recognised in shareholders’ equity. Consideration and transaction costs
paid by the Company for repurchasing self-issued equity instruments are deducted
from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as
treasury shares. All expenditures relating to the repurchase are recorded in the
cost of the treasury shares, with the transaction recording in the share register.
Treasury shares are excluded from profit distributions and are presented as a
deduction under shareholders’ equity in the balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the
extent of the total par value of the treasury shares cancelled. Where the cost of the
treasury shares cancelled exceeds the total par value, the excess is sequentially
deducted from capital reserve (share premium), surplus reserve and retained
earnings sequentially. If the cost of treasury shares cancelled is less than the total
par value, the difference is credited to the capital reserve (share premium).
When treasury shares are disposed of, any excess of proceeds above cost is
recognised in capital reserve (share premium); otherwise, the shortfall is deducted
against capital reserve (share premium), surplus reserve and retained earnings
sequentially .
(6) Convertible instruments
- Convertible instruments containing an equity component
Convertible instruments issued by the Group that can be converted to equity
shares, where the number of shares to be issued and the value of consideration to
be received at that time do not vary, are accounted for as compound financial
instruments containing both liability and equity components.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
The initial carrying amount of a compound financial instrument is allocated to its
equity and liability components. The amount recognised in the equity is the
difference between the fair value of the instrument as a whole and the separately
determined fair value of the liability component (including the fair value of any
embedded derivatives other than the equity component). Transaction costs that
relate to the issue of a compound financial instrument are allocated to the liability
and equity components in proportion to the allocation of proceeds.
Subsequent to initial recognition, the liability component is measured at amortised
cost using the effective interest method, unless it is designated upon recognition
at fair value through profit or loss. The equity component is not re-measured.
If the convertible instrument is converted, the liability component, together with the
equity component, is transferred to equity. If the convertible instrument is
redeemed, the consideration paid for the redemption, together with the transaction
costs that relate to the redemption, are allocated to the liability and equity
components. The method used to allocate the consideration and transaction
costs is the same as that used for issuance. After allocating the consideration
and transaction costs, the difference between the allocated and carrying amounts
is charged to profit and loss if it relates to the liability component or is directly
recognised in equity if it relates to the equity component.
- Other convertible instruments not containing an equity component
For other convertible instruments issued by the Group which do not contain an
equity component, at initial recognition, the derivative component is measured at
fair value, and any excess of proceeds over the derivative component is
recognised as the liability component.
The derivative component is subsequently measured at fair value, and gains or
losses from the changes in the fair value are recognised in profit or loss. The
liability component is subsequently carried at amortised cost using the effective
interest method.
On conversion, the carrying amounts of the derivative and liability components are
transferred to equity. If the instrument is redeemed, any difference between the
redemption amount paid and the carrying amounts of both components is
recognised in profit or loss.
10. Impairment of receivables
Receivables are assessed for impairment both on an individual basis and on a
collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect
of a receivable is calculated as the excess of its carrying amount over the present
value of the estimated future cash flows (exclusive of future credit losses that have
not been incurred) discounted at the original effective interest rate. All impairment
losses are recognised in profit or loss. The Group recognised receivables
individually greater than RMB 50,000,000 as significant and perform impairment test
on an individual basis. Those receivables individually insignificant but with specific
natures, i.e. legal issue or customer credit issue, are also reviewed and tested on an
individual basis.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
The assessment is made collectively where receivables share similar credit risk
characteristics (including those not having been individually assessed as impaired),
based on their historical loss experiences, and adjusted by the observable factors
reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective
evidence of a recovery in value of the financial asset which can be related objectively
to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss. A reversal of an impairment loss
will not result in the asset’s carrying amount exceeding what the amortised cost
would have been determined had no impairment loss been recognised in prior years.
11. Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable
materials. Reusable materials include low-value consumables, packaging materials
and other materials, which can be used repeatedly but do not meet the definition of
fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of
purchase, costs of conversion and other expenditures incurred in bringing the
inventories to their present location and condition. In addition to the purchasing
cost of raw materials, work in progress and finished goods include direct labour costs
and an appropriate allocation of production overheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are
amortised when they are used. The amortisation charge are included in the cost of
the related assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value of inventories and method for provision
for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net
realisable value.
Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs to completion and the estimated costs necessary to make
the sale and relevant taxes. The net realisable value of materials held for use in the
production is measured based on the net realisable value of the finished goods in
which they will be incorporated. The net realisable value of the quantity of inventory
held to satisfy sales or service contracts is measured based on the contract price. If
the quantities held by the Group are more than the quantities of inventories specified
in sales contracts, the net realisable value of the excess portion of inventories is
measured based on general selling prices.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
Any excess of the cost over the net realisable value of each category of inventories is
recognised as a provision for obsolete inventories, and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
12. Long-term equity investment
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of
the carrying amount of the subsidiary’s equity in the consolidated financial
statements of the ultimate controlling party at the combination date. The
difference between the initial investment cost and the carrying amount of the
consideration given is adjusted to the share premium in the capital reserve, with
any excess adjusted to retained earnings. For a long-term equity investment in a
subsidiary acquired through a business combination achieved in stages which do
not form a bundled transaction and involving entities under common control, the
Company determines the initial cost of the investment in accordance with the
above policies. The difference between this initial cost and the sum of the
carrying amount of previously-held investment and the consideration paid for the
shares newly acquired is adjusted to capital premium in the capital reserve, with
any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not
involving entities under common control, the initial cost comprises the aggregate
of the fair value of assets transferred, liabilities incurred or assumed, and equity
securities issued by the Company, in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not
involving entities under common control and achieved through multiple
transactions in stages which do not form a bundled transaction, the initial cost
comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date, and the additional investment
cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business
combination is initially recognised at the amount of cash paid if the Group
acquires the investment by cash, or at the fair value of the equity securities issued
if an investment is acquired by issuing equity securities.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement.
Except for cash dividends or profit distributions declared but not yet distributed that
have been included in the price or consideration paid in obtaining the investments,
the Company recognises its share of the cash dividends or profit distributions
declared by the investee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.20.
In the Group’s consolidated financial statements, investments in subsidiaries are
accounted for in accordance with the policies described in Note III.6.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.12 (3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note
III.12 (3)).
An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement, unless the investment is classified as held for
sale (see Note III.28).
The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s
interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially
recognised at the investor’s share of the fair value of the investee’s identifiable net
assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income or
losses and other comprehensive income respectively, and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions, the carrying amount of the investment is reduced
by that amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution (referred to as “other
changes in owners’ equity”), is recognised directly in the Group’s equity, and the
carrying amount of the investment is adjusted accordingly.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
- In calculating its share of the investee’s net profits or losses, other comprehensive
income and other changes in owners’ equity, the Group recognises investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based
on the fair value of the investee’s identifiable net assets at the date of acquisition.
Unrealised profits and losses resulting from transactions between the Group and
its associates or joint ventures are eliminated to the extent of the Group’s interest
in the associates or joint ventures. Unrealised losses resulting from transactions
between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee
after the carrying amount of the long-term equity investment and any long-term
interest that in substance forms part of the Group’s net investment in the joint
venture or associate is reduced to zero, except to the extent that the Group has an
obligation to assume additional losses. If the joint venture or associate
subsequently reports net profits, the Group resumes recognising its share of those
profits only after its share of the profits has fully covered the share of losses not
recognised.
For the Group’s impairment of the investments in joint ventures and associates, refer
to Note III.20.
(3) Criteria for determining the existence of joint control or significant influence over an
investee
Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities (activities with significant
impact on the returns of the arrangement) require the unanimous consent of the
parties sharing control.
The following factors are usually considered when assessing whether the Group can
exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
13. Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost
model and stated in the balance sheet at cost less accumulated depreciation,
amortisation and impairment losses. The cost of investment property, less its
estimated residual value and accumulated impairment losses, is depreciated or
amortised using the straight-line over its estimated useful life, unless the investment
property is classified as held for sale (see Note III.28). For the impairment of the
investment properties, refer to Note III.20.
The estimated useful lives, residual value rates and depreciation rates of each class
of investment properties are as follows:
Estimated useful life Residual value Depreciation
Class (years) rate (%) rate (%)
Land use rights 32 - 50 years 0% 2% - 3.1%
Buildings 25 - 40 years 3% - 10% 2.3% - 3.9%
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of
goods, supply of services, for rental or for administrative purposes with useful lives
over one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and
any directly attributable expenditure for bringing the asset to working condition for its
intended use. The cost of self-constructed assets is measured in accordance with
the policy set out in Note III.15.
Where the parts of an item of fixed assets have different useful lives or provide
benefits to the Group in a different pattern, thus necessitating use of different
depreciation rates or methods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets
are capitalised and recognised as assets when it is probable that the related
economic benefits will flow to Group, and the carrying amount of the replaced part is
derecognised. The costs of the day-to-day servicing of fixed assets are recognised
in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation
and impairment losses.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated
impairment losses, is depreciated using the straight-line method over its estimated
useful life, unless the fixed asset is classified as held for sale (see Note III.28).
The estimated useful lives, residual value rates and depreciation rates of each class
of fixed assets are as follows:
Class Estimated useful life Residual value Depreciation
(years) rate (%) rate (%)
Plant and buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 20 years 0 - 10% 4.5% - 50%
Others 2 - 10 years 0 - 10% 9% - 50%
Useful lives, estimated net residual value and depreciation methods are reviewed at
least at each year-end.
(3) For the impairment of the fixed assets, refer to Note III.20.
(4) For the recognition, measurement and depreciation of fixed assets acquired under
finance leases, refer to Note III.27.
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognized:
- when the fixed asset is on holding for disposal; or
- when no future economic benefit is expected to be generated from its use or
disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying
amount of the item, and are recognised in profit or loss on the date of retirement or
disposal.
15. Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour,
capitalised borrowing costs (see Note III.16), and any other costs directly attributable
to bringing the asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to
fixed asset when it is ready for its intended use. No depreciation is provided against
construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20).
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
16. Borrowing costs
Borrowing costs incurred directly attributable to the acquisition, construction of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing
costs are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is
determined as follows:
Where funds are borrowed specifically for the acquisition, construction of a
qualifying asset, the amount of interest to be capitalised is the interest expense
calculated using effective interest rates during the period less any interest income
earned from depositing the borrowed funds or any investment income on the
temporary investment of those funds before being used on the asset.
To the extent that the Group borrows funds generally and uses them for the
acquisition, construction of a qualifying asset, the amount of borrowing costs
eligible for capitalisation is determined by applying a capitalisation rate to the
weighted average of the excess amounts of cumulative expenditures on the asset
over the above amounts of specific borrowings. The capitalisation rate is the
weighted average of the interest rates applicable to the general-purpose
borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated
future cash flow through the expected life of the borrowing or, when appropriate, a
shorter period to the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and
interest on a specific-purpose borrowing denominated in foreign currency are
capitalised as part of the cost of the qualifying asset. The exchange differences
related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognised as a financial expense when incurred.
The capitalisation period is the period from the date of commencement of
capitalisation of borrowing costs to the date of cessation of capitalisation, excluding
any period over which capitalisation is suspended. Capitalisation of borrowing costs
commences when expenditure for the asset is being incurred, borrowing costs are
being incurred and activities of acquisition, construction that are necessary to
prepare the asset for its intended use are in progress, and ceases when the assets
become ready for their intended use. Capitalisation of borrowing costs is
suspended when the acquisition, construction activities are interrupted abnormally
for a period of more than three months.
17. Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated
amortisation (where the estimated useful life is finite) and impairment losses (see
Note III.20). For an intangible asset with finite useful life, its cost estimated less
residual value and accumulated impairment losses is amortised on the straight-line
method over its estimated useful life, unless the intangible asset is classified as held
for sale (see Note III.28).
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
The respective amortisation periods for intangible assets are as follows:
Item Amortisation periods (years)
Land use rights 40 - 50 years
Patent and technology rights 5 - 10 years
Computer software 3 - 10 years
Others 5 - 20 years
An intangible asset is regarded as having an indefinite useful life and is not amortised
when there is no foreseeable limit to the period over which the asset is expected to
generate economic benefits for the Group. At the balance sheet date, the Group
does not have any intangible assets with indefinite useful lives.
Expenditure on an internal research and development project is classified into
expenditure incurred during the research phase and expenditure incurred during the
development phase.
Expenditure during the research phase is expensed when incurred. Expenditure
during the development phase is capitalised if development costs can be measured
reliably, the product or process is technically and commercially feasible, and the
Group intends to and has sufficient resources to complete the development.
Capitalised development costs are stated in the balance sheet at cost less
impairment losses (see Note III.20). Other development expenditure is recognised
as an expense in the period in which it is incurred.
18. Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the
acquirer’s interest in the fair value of the identifiable net assets of the acquiree under
the business combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20). On disposal of an asset group or a set of asset
groups, any attributable amount of purchased goodwill is written off and included in
the calculation of the profit or loss on disposal.
19. Long-term deferred expenses
Long-term deferred expenses are amortised on a straight-line method within the
benefit period. The respective amortisation periods of such expenses are as
follows:
Item Amortisation period (years)
Prepayment for public facilities construction and use 10 - 15 years
Cost of operating lease assets improvement 3 - 10 years
Others 3 - 10 years
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
20. Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet
date based on the internal and external sources of information to determine whether
there is any indication of impairment:
fixed assets
construction in progress
intangible assets
investment properties measured using a cost model
long-term equity investments
goodwill
long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In
addition, the Group estimates the recoverable amounts of goodwill at each year-end,
irrespective of whether there is any indication of impairment. Goodwill is allocated
to each asset group or set of asset groups, which is expected to benefit from the
synergies of the combination for the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups, the same
below) is the higher of its fair value (see Note III.21) less costs to sell and its present
value of expected future cash flows.
An asset group is composed of assets directly relating to cash-generation. An asset
group is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by
discounting the future cash flows, estimated to be derived from continuing use of the
asset and from its ultimate disposal, to their present value using an appropriate
pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an
asset is less than its carrying amount. A provision for impairment of the asset is
recognised accordingly. Impairment losses related to an asset group or a set of
asset groups are allocated first to reduce the carrying amount of any goodwill
allocated to the asset group or set of asset groups, and then to reduce the carrying
amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, such allocation would not reduce the carrying amount of an asset
below the highest of its fair value less costs to sell (if measurable), its present value
of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
21. Fair value measurement
Unless otherwise specified, the Group determines fair value measurement as below:
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date.
When measuring fair value, the Group takes into account the characteristics of the
particular asset or liability (including the condition and location of the asset and
restrictions, if any, on the sale or use of the asset) that market participants would
consider when pricing the asset or liability at the measurement date, and uses
valuation techniques that are appropriate in the circumstances and for which
sufficient data and other information are available to measure fair value. Valuation
techniques mainly include the market approach, the income approach and the cost
approach.
22. Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to
settle the related present obligation. Where the effect of time value of money is
material, provisions are determined by discounting the expected future cash flows.
Factors pertaining to a contingency such as the risks, uncertainties and time value of
money are taken into account as a whole in reaching the best estimate. Where
there is a continuous range of possible outcomes for the expenditure required, and
each possible outcome in that range is as likely as any other, the best estimate is the
mid-point of that range. In other cases, the best estimate is determined according
to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likely
outcome.
- Where the contingency involves a large population of items, the best estimate is
determined by weighting all possible outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and
adjusts the carrying amount to the current best estimate.
23. Revenue recognition
Revenue is the gross inflow of economic benefit arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity, other
than increase relating to contributions from shareholders. Revenue is recognised in
profit or loss when it is probable that the economic benefits will flow to the Group, the
revenue and costs can be measured reliably and the following conditions are met:
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(1) Sale of goods
Revenue is recognised when the general conditions stated above and the following
conditions are satisfied:
- Significant risks and rewards of ownership of goods have been transferred to the
buyer;
- The Group retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable under the sales contract or agreement.
The Company determines different trading methods with the buyer in the sales
contract, determines the timing of the transfer of significant risks and rewards based
on the trading methods, and recognised revenue accordingly.
(2) Rendering of services
Revenue is measured at the fair value of the consideration received or receivable
under the contract or agreement.
Where the outcome of a transaction involving the rendering of services can be
estimated reliably, revenue is recognised by reference to the stage of completion
based on the progress of work performed.
Where the outcome cannot be estimated reliably, revenues are recognised to the
extent of the costs incurred that are expected to be recoverable, and an equivalent
amount is charged to profit or loss as service cost; otherwise, the costs incurred are
recognised in profit or loss and no service revenue is recognised.
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract
revenue and contract expenses associated with the construction contract are
recognised using the percentage of completion method.
The stage of completion of a contract is determined based on the proportion of
contract costs incurred for work performed to date to the estimated total contract
costs.
When the outcome of a construction contract cannot be estimated reliably:
- If the contract costs can be recovered, revenue is recognised to the extent of
contract costs incurred that can be recovered, and the contract costs are
recognised as contract expenses when incurred;
- Otherwise, the contract costs are recognised as contract expenses immediately
when incurred, and no contract revenue is recognised.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
(4) Interest income
Interest income is recognised on a time proportion basis with reference to the
principal outstanding and the applicable effective interest rate.
(5) Royalties from intangible assets
Royalty income from intangible assets is determined according to the period and fee
calculation method as stipulated in the relevant contracts or agreements.
24. Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical
insurance, work injury insurance, maternity insurance and housing fund, measured at
the amount incurred or accrued at the applicable benchmarks and rates, are
recognised as a liability as the employee provides services, with a corresponding
charge to profit or loss or included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the
Group participated in a defined contribution basic pension insurance plan and
unemployment insurance plan in the social insurance system established and
managed by government organisations, and annuity plan established by the Group in
compliance with the national policy of the corporation annuity. The Group makes
contributions to basic pension insurance plans based on the applicable benchmarks
and rates stipulated by the government. Annuity is accrued based on the gross
salaries of the employees. Basic pension insurance contributions are recognised as
part of the cost of assets or charged to profit or loss as the related services are
rendered by the employees.
(3) Post-employment benefits – defined benefit plans.
During the reporting period, the Group did not have defined benefit plans
(4) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire, or provides compensation under an offer to encourage employees
to accept voluntary redundancy, a provision is recognised with a corresponding
expense in profit or loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits
because of an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will
carry out the restructuring by starting to implement that plan or announcing its
main features to those affected by it.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
25. Government grants
Government grants are non-reciprocal transfers of monetary assets or non-monetary
assets from the government to the Group at no consideration except for any capital
contribution from the government as an investor in the Group. Special funds such
as investment grants allocated by the government, if clearly defined in official
documents as part of “capital reserve” are dealt with as capital contributions, and not
regarded as government grants.
A government grant is recognised when there is reasonable assurance that the grant
will be received and that the Group will comply with the conditions attaching to the
grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured
at the amount that is received or receivable. If a government grant is in the form of
a transfer of a non-monetary asset, it is measured at its fair value.
Government grants related to assets are grants whose primary condition is that the
Group qualifying for them should purchase, construct or otherwise acquire long-term
assets. Government grants related to income are grants other than those related to
assets. A government grant related to an asset is recognised initially as deferred
income and amortised to profit or loss on a straight-line basis over the useful life of
the asset. A grant that compensates the Group for expenses to be incurred in the
subsequent periods is recognised initially as deferred income and recognised in
profit or loss in the same periods in which the expenses are recognised. A grant
that compensates the Group for expenses incurred is recognised in profit or loss
immediately.
26. Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that
they relate to a business combination or items recognised directly in equity (including
other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on
taxable income for the year, plus any adjustment to tax payable in respect of
previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the
Group has a legally enforceable right to set them off and also intends either to settle
on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable
temporary differences respectively, being the differences between the carrying
amounts of assets and liabilities for financial reporting purposes and their tax bases,
which include the deductible losses and tax credits carried forward to subsequent
periods. Deferred tax assets are recognised to the extent that it is probable that
future taxable profits will be available against which deductible temporary differences
can be utilised.
BOE Technology Group Company Limited
Financial statements for the year ended 31 December 2016
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or deductible loss).
Deferred tax is not recognised for taxable temporary differences arising from the
initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences
that would follow from the expected manner of recovery or settlement of the carrying
amount of the assets and liabilities, using tax rates enacted at
