2021-10-28-深交所-京东方Ｂ_2021年第三季度报告（英文版）_16页_444kb

BOE Technology Group Co., Ltd. Third Quarterly Report 2021 Summary

Core Content Overview

This report provides key financial information, shareholder details, and significant events for BOE Technology Group Co., Ltd. for the third quarter of 2021 and the first nine months of 2021. The report is prepared in both Chinese and English, with the Chinese version taking precedence in case of discrepancies. The financial statements have not been audited by an independent auditor.

Key Financial Information

Q3 2021 vs Q3 2020

• Operating Revenue: RMB 55,993,022,701.00 (up 46.77% YoY)
• Net Profit Attributable to Shareholders: RMB 7,253,390,635.00 (up 441.14% YoY)
• Net Profit Before Exceptional Items: RMB 6,937,108,280.00 (up 551.91% YoY)
• Basic Earnings per Share: RMB 0.197 (up 462.86% YoY)
• Diluted Earnings per Share: RMB 0.197 (up 462.86% YoY)
• Weighted Average Return on Equity: 6.56% (up 5.19% YoY)

Q1-Q3 2021 vs Q1-Q3 2020

• Operating Revenue: RMB 163,278,349,727.00 (up 72.05% YoY)
• Net Profit Attributable to Shareholders: RMB 20,015,415,603.00 (up 708.43% YoY)
• Net Profit Before Exceptional Items: RMB 18,598,725,052.00 (up 1,994.92% YoY)
• Net Cash from Operating Activities: RMB 44,751,381,483.00 (up 90.69% YoY)
• Net Cash from Financing Activities: Declined 142% YoY, mainly due to increased expenditures on repurchase of non-controlling interests.

Exceptional Gains and Losses

• Total Exceptional Gains/Losses: RMB 316,282,355.00 (Q3 2021) and RMB 1,416,690,551.00 (Q1-Q3 2021)
• Key Items:
  • Government Grants: RMB 400,483,548.00 (Q3 2021) and RMB 1,526,234,212.00 (Q1-Q3 2021)
  • Gain on Fair Value Changes: RMB 30,040,094.00 (Q3 2021) and RMB 76,270,373.00 (Q1-Q3 2021)
  • Reversed Impairment Allowance: RMB 1,892,413.00 (Q3 2021) and RMB 14,598,869.00 (Q1-Q3 2021)
  • Other Non-recurring Gains: RMB 21,962,349.00 (Q3 2021) and RMB 50,639,361.00 (Q1-Q3 2021)

Changes in Key Financial Statement Line Items

1. Operating Revenue: Increased by 72% YoY due to rising prices, new production capacity, and changes in consolidation scope.
2. Cost of Sales: Increased by 43% YoY due to expanding revenue.
3. Selling Expense: Increased by 38% YoY due to expanding revenue.
4. Administrative Expense: Increased by 37% YoY due to expanding revenue.
5. R&D Expense: Increased by 55% YoY due to greater R&D investments.
6. Finance Costs: Increased by 42% YoY due to new projects and changes in consolidation scope.
7. Asset Impairment Loss: Increased by 87% YoY due to lower inventory valuation allowances.
8. Income Tax Expense: Increased by 325% YoY due to higher earnings.
9. Accounts Receivable: Increased by 54% YoY due to expanded revenue.
10. Inventories: Increased by 60% YoY due to expanded revenue and new projects.
11. Net Cash from Operating Activities: Increased by 91% YoY due to higher operating profit.
12. Net Cash from Financing Activities: Declined by 142% YoY due to repurchase of non-controlling interests.

Shareholder Information

Number of Ordinary Shareholders

• Total: 1,607,648 (including 1,569,497 A-shares and 38,151 B-shares)

Top 10 Shareholders

Related Parties

• Beijing State-owned Capital Operation and Management Company Limited indirectly controls Beijing Jing Guorui SOE Reform and Development Fund (L.P.) through its general partner.
• Beijing Electronics Holdings Co., Ltd. is a subsidiary of Beijing State-owned Capital Operation and Management Company Limited and controls Beijing BOE Investment & Development Co., Ltd.
• Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd. have voting agreements with Beijing BOE Investment & Development Co., Ltd.

Other Significant Events

1. Renewable Corporate Bonds Issuance:

   • "19BOEY1" (Code: 112741): Issued in 2019 with USD8 billion and 4.0% interest rate.
   • "20BOEY1", "20BOEY2", "20BOEY3": Issued in 2020 with USD2 billion each and interest rates of 3.64%, 3.54%, and 3.50%, respectively.
   • Interest payment for "19BOEY1" was announced on 26 October 2021.

2. Legal Dispute with LETV Mobile and LETV Holdings:

   • The case was filed in 2017, and the first instance judgment was issued in 2020.
   • The judgment requires LETV Mobile and LETV Holdings to pay USD36,940,476.77 in principal and interest, with a penalty rate of 0.03% per day.
   • The litigation fees were RMB1,465,371.63, with RMB1.46 million to be paid by the defendants.

3. Non-Public Offering of A-Shares:

   • The Company disclosed the non-public offering plan on 16 January 2021 and received CSRC approval on 8 July 2021.
   • A total of 3,650,377,019 new shares were issued and listed on the Shenzhen Stock Exchange on 20 August 2021.

4. Share Option Grants:

   • On 27 August 2021, 33,000,000 share options were granted to 110 awardees under the 2020 Share Option and Restricted Share Incentive Plan.
   • The reserved share options were transferred on 22 October 2021.

5. Share Repurchase:

   • The Company repurchased 90,807,000 A-shares (approximately 0.242% of total A-shares and 0.236% of total shares) through centralized bidding.
   • The repurchase price ranged from RMB5.80 to RMB5.96 per share, with total payment of RMB533,572,378.23 (excluding commissions and other costs).

Summary of Significant Events