ANNUAL REPORT 2024
April 2025
Message to Our ShareholdersAs the seasons changed, we ushered in a splendid year.The year 2024 marks the beginning of BOE's next thirty years, as well as a pivotal year for theCompany to deepen its reforms. In the face of a complex and ever-changing global landscape andwidespread pressure on industry operations, all BOE employees have overcome challenges and keptforging ahead. Through their hard work, the Company has achieved a fruitful year, with itsperformance back on a growth trajectory. Annual revenue approached RMB200 billion. Each businessline also maintained strong momentum in high-quality development. In the semiconductor displaybusiness, our global shipments of LCDs and shipments across the five major application productsremained number one worldwide, while we maintained global leadership in innovative markets suchas automotive, retail, healthcare, and IoT. Our shipments of flexible OLEDs grew steadily, with nearly140 million units delivered throughout the year. In the innovative business segment, our MLEDbusiness performance showed significant improvement, the sensor business saw revenue of smartwindows double year-on-year, and the evaluation for top-tier hospital certification for Chengdu BOEHospital progressed smoothly in the smart engineering medicine business. Furthermore, the "N"business continued to thrive, making breakthroughs in areas such as intelligent car networking, ultra-high-definition displays, and digital art, while also creating benchmark cases, with some businessesgaining favour in the capital market. These achievements have laid a solid foundation for BOE tobuild its medium- to long-term competitive edges. These successes are inseparable from BOE'songoing, multidimensional efforts.Strategic Leadership: Adhering to Long-TermismLooking back on BOE's development journey, while the Company has encountered setbacks, it hasconsistently turned industry challenges into opportunities for growth. This success is due to theCompany's unwavering vigilance and foresight in understanding industry trends and continuouslyexploring new directions for growth. In 2024, building on the continued implementation of the"Empower IoT with Display" strategy and driven by in-depth reflections on industry developmentpractises, BOE innovatively proposed the "N Curve" theory to elevate its corporate strategy. Thistheory ensures that, while the core businesses remain robust, the Company continues to explorebusiness lines that align with market demands of the "N Curve" business through the accumulationand extension of core capabilities. This approach guarantees the continuous enhancement of theCompany's competitiveness while driving BOE's long-term, high-quality development and sustainedsuccess. Under the guidance of the "N Curve" theory, breakthroughs were achieved in perovskite andglass packaging businesses, presenting promising prospects for the future.Innovation-driven, Building a Solid Foundation for DevelopmentTechnological innovation is the cornerstone of driving high-quality corporate development. BOEcontinues to invest heavily in research and development, achieving significant results. By 2024, BOEhad accumulated over 100,000 independent patent applications, with over 90% of newly filed patentsbeing invention patents and more than 33% of them filed overseas in the year. For seven consecutiveyears, BOE has been ranked in the top 20 of the IFI US patent authorisation list and in the top 10 ofWIPO's global PCT patent applications for nine consecutive years. In terms of products andtechnologies, BOE successfully mass-produced and delivered the world's first "Z"-shaped three-foldscreen, establishing a new form for OLED products. The UB Cell technology was iterated, launchingthe Black Diamond and Black Crystal products, setting the trend for high-end TVs. Several innovativeachievements have been awarded national science and technology awards, in addition to industryhonours from SID, CES, IFA, and others. Furthermore, BOE has actively embraced the wave of
artificial intelligence technology, officially launching the "AI+" strategy and establishing anorganisational mechanism to support its implementation. The Company is driving AI's innovativeapplications in manufacturing, product innovation, and business management, thus reinforcing thefoundation for its comprehensive development.Deepening Reform, Enhancing Management EfficiencyContinuous innovation within an enterprise is a critical driver for sustainable progress andmaintaining a competitive edge. Since its inception, BOE has adhered to a “market-oriented,international, and professional” development approach while continually improving overalloperational efficiency to maintain vitality. The Company has placed a strong focus on optimisingtalent management, further refining regular mechanisms for promotions, exits, and job rotationswithin its leadership team, thus stimulating the vitality of the management. The Company has alsocontinued to build its organisational culture, promoting key corporate values such as "three virtuesand five spirits" and "three fairness and three positions." In 2024, BOE was awarded the "Best PractiseEnterprise in National Corporate Culture" title by the China Enterprise Confederation, whichmotivates the Company to continue leveraging corporate culture as a guiding force, striving tobecome a world-class enterprise.Green and Low-Carbon: Contributing to Sustainable DevelopmentThroughout its development, BOE has consistently adhered to the principles of green and sustainablegrowth. In 2024, the Company further clarified its green development goals, committing to achievingcarbon neutrality in its operations by 2050. BOE has outlined six key action paths, including greenmanagement, green products, green manufacturing, green recycling, green investment, and greenactions, aimed at building a closed-loop system for green development that spans the entire lifecycleof its business and products. To fully support the effective implementation of these sustainabilityinitiatives, BOE has built a three-tier sustainable development organisational structure, coveringgovernance, management, and execution levels. This structure is designed to strengthen resilienceand competitiveness in the global market, support industrial upgrading, and foster high-qualitydevelopment. Looking ahead, BOE will continue contributing to building a peaceful, stable,prosperous, and beautiful world through its sustainable practises.Boosting Shareholder Returns to Achieve Mutual Benefit with ShareholdersLooking back on BOE's development history, it has always been inseparable from the strong supportof the capital market. Sharing the value of corporate growth with investors is also a long-term goalthat BOE has always pursued. As the Company's growth enters a new stage, we have launched a long-term shareholder return mechanism with cash dividends and share repurchase and retirement as thefocuses, in order to truly reward shareholders through a "continuous, consistent and predictable"shareholder return policy and achieve "mutual benefit" with shareholders.As we stand at the threshold of 2025, we remain committed to maintaining our passion andaspirations, guided by lofty ambitions. We will continue deepening the “Empower IoT with Display”development strategy and set sail on a new journey. Together, we will drive BOE's high-qualitydevelopment and steady progress. We look forward to continuing this journey alongside ourshareholders, side by side, on the path “To Be the Most Respected Company on Earth” and witnessingBOE's thriving growth as we embrace a bright future!
Chairman of BOE
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Feng Qiang, Chairman of theExecutive Committee, Ms. Yang Xiaoping, Chief Financial Officer, and Ms. Xu Yaxiao, head ofthe financial department (equivalent to financial manager) hereby guarantee that the FinancialStatements carried in this Report are factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report andits summary.Any plans for the future and other forward-looking statements mentioned in this Report shallNOT be considered as absolute promises of the Company to investors. Investors, among others,shall be sufficiently aware of the risk and shall differentiate between plans and forecasts andpromises.The Board has approved a final dividend plan for the Reporting Period. Based on37,416,133,303 shares, a cash dividend of RMB0.5 (tax inclusive) per 10 shares is to bedistributed to all the shareholders, with no bonus issue from either profit or capital reserves.This Report and its summary have been prepared in Chinese and translated into English.Should there be any discrepancies or misunderstandings between the two versions, the Chineseversions shall prevail.
Table of Contents
Message to Our Shareholders ...... 2
Part I Important Notes, Table of Contents and Definitions ...... 5
Part II Corporate Information and Key Financial Information ...... 10
Part III Management Discussion and Analysis ...... 15
Part IV Corporate Governance ...... 44
Part V Environmental and Social Responsibility ...... 81
Part VI Significant Events ...... 87
Part VII Share Changes and Shareholder Information ...... 104
Part VIII Preferred Shares ...... 115
Part IX Bonds ...... 116
Part X Financial Statements ...... 120
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, Chairman of the Executive Committee, ChiefFinancial Officer and head of the financial department (equivalent to financial manager);(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public accountants;(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod; and(IV) This Report disclosed in other securities markets.All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 18 April 2025
BOE Technology Group Co., Ltd. Annual Report 2024
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| SZSE, the Stock Exchange | The Shenzhen Stock Exchange |
| 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 Compliance in Operation of Main Board Listed Companies | Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation of Listed Companies—Compliance in Operation of Main Board Listed Companies |
| The Stock Listing Rules | The Stock Listing Rules of the Shenzhen Stock Exchange |
| The Articles of Association | The Articles of Association of BOE Technology Group Co., Ltd. |
| The Rules of Procedure for the Board of Directors | The Rules of Procedure for the Board of Directors of BOE Technology Group Co., Ltd. |
| The Rules for Independent Directors | The Rules for Independent Directors of BOE Technology Group Co., Ltd. |
| The Rules of Procedure for the Supervisory Committee | The Rules of Procedure for the Supervisory Committee of BOE Technology Group Co., Ltd. |
| The Methods for the Administration of Information Disclosure | The Methods for the Administration of Information Disclosure of BOE Technology Group Co., Ltd. |
| Varitronix | BOE Varitronix Limited |
| Energy Technology | BOE Energy Technology Co., Ltd. |
| Suzhou Sensor | Suzhou BOE Sensor Technology Co., Ltd. |
| Art Cloud Technology | BOE Art Cloud Technology Co., Ltd. |
| UPTC | UPTC (Beijing) Technology Co., Ltd. |
| Zhongxiangying | Beijing Zhongxiangying Technology Co., Ltd. |
| 16K | 16K resolution (15360 × 8640 pixels) |
| 2/3D | 2D and 3D switching |
| 3A | 3A certificate |
| 3D | Three Dimensions |
| 4K | 4K resolution (3840 × 2160 pixels) |
| 5A | 5A certificate |
| 8K | 8K resolution (7680 × 4320 pixels) |
| ADS Pro | One of BOE's three major technology brands |
| AI | Artificial Intelligence |
| AI+ | Artificial Intelligence+ |
| AICC | Artificial Intelligence Control Center |
| AMD | Advanced Micro Devices, Inc. |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| APP | Application |
| BOE Share APP | BOE screen mirroring software |
| BSEOS | BOE Smart Energy Operation System |
| BT2020 | ITU-R BT.2020, standardized methods for image parameters of television systems |
| BYOM | Bring Your Own Meeting |
| C100 | BOE Smart All-in-One Model |
| cd/W | Candela per watt, energy efficiency of a monitor, the ratio of the luminous intensity of the monitor screen to the measured input power of the monitor (also known as working efficiency) |
| CHPI | Clock-embedded High-speed Point-to-point Interface |
| COB | Chip (Mini LED) On Board (PCB) |
| COG | Chip (Mini LED) On Glass |
| DCI | Digital Cinema Initiatives |
| DCI-P3 | Digital Cinema Initiatives-Protocol 3, a color standard, or a color space, created |
BOE Technology Group Co., Ltd. Annual Report 2024
| by the Digital Cinema Initiatives (DCI) and the Society of Motion Picture and Television Engineers (SMPTE) in an attempt to standardize the colors used in the motion picture industry | |
| DIC | Display Innovation China |
| DLR | Dynamic Local Refresh |
| DMS | Driver Monitor System |
| DSR | Driver Self Refresh |
| e-Note | Electronic note |
| FMLOC | Flexible Multi-Layer On Cell, an integrated touch solution that places the touch layer on top of the flexible OLED package |
| f-OLED | One of BOE's three major technology brands |
| FPXD | Flat Panel X-Ray Detector |
| Gaming | High refresh rate gaming display |
| GMV | Gross Merchandise Volume |
| GOA | Gate on Array |
| Google Inc. | |
| GPR | Glass Pattern Retarder |
| H.629.1 | Standard ITU-TH.629.1: Scenarios, Framework and Metadata for Digitalized Artwork Images Display System approved by the International Telecommunication Union |
| HDR | High Dynamic Range Imaging |
| HERO | Smart cockpit innovation scenarios covering Healthiness, Entertainment, Relaxation and Office |
| HRD | Hybrid Refresh Display |
| IFI | IFI Claims |
| Intel | Intel Corp. |
| IoT | Internet of Things |
| IPO | Initial Public Offering |
| LC | Liquid Crystal |
| LCD | Liquid Crystal Display |
| LED | Light-emitting Diode |
| LTPO | Low Temperature Polycrystalline Oxide |
| MADA | Mobile Application Distribution Agreement |
| MBL | Mobile |
| MEMS | Micro-Electro-Mechanical System |
| MLED | Mini/Micro LED |
| MNT | Monitor, generally referring to 27~34 inch monitors |
| NB | Notebook |
| nits | Unit Of Luminance |
| NK | Natural Killer |
| ODM | Original Design Manufacturer |
| OLED | Organic Light Emitting Diode |
| Oxide | Oxide thin film transistor technology |
| PCA | People's Choice Awards |
| PCT | Patent Cooperation Treaty |
| PFAS Free | Per-and Polyfluoroalkyl Substances Free |
| PHUD | Panoramic Head-Up Display |
| PI | Polyimide, a flexible substrate |
| PVD | Physical Vapor Deposition |
| QHD+ | 2560×1440 resolution + (Quad High Definition +) |
| SID | The Society for Information Display |
| Smart GOA | A smart drive circuit control technology |
| Tandem | Tandem technology |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| TLCM | Touch+LCM (Liquid Crystal Module) |
| Top Gate | A high mobility oxide process |
| TPC | Tablet Personal Computer |
BOE Technology Group Co., Ltd. Annual Report 2024
| TV | Television |
| UB Cell | Natural and realistic display as Ultra Black, Ultra Bright, Ultra Brilliant |
| U-Station | Ultra HD Second Site Broadcast Control Terminal |
| VGP | Visual Grand Prix |
| WIPO | World Intellectual Property Organization |
| xR | Extended Reality |
| X-ray | A type of radiation that can pass through objects that are not transparent and make it possible to see inside them |
| α-MLED | One of BOE's three major technology brands |
BOE Technology Group Co., Ltd. Annual Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Previous stock name (if any) | N/A | ||
| Stock exchange for stock listing | 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 | Chen Yanshun | ||
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China | ||
| Zip code | 100015 | ||
| Past changes of registered address | N/A | ||
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | ||
| Zip code | 100176 | ||
| Company website | www.boe.com | ||
| Email address | ir@boe.com.cn | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Guo Hong | Luo Wenjie |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China |
| Tel. | 010-64318888 | 010-64318888 |
| Fax | 010-64366264 | 010-64366264 |
| E-mail address | guohong@boe.com.cn | luowenjie@boe.com.cn |
III Media for Information Disclosure and Place where this Report Is Lodged
| Stock exchange website where this Report is disclosed | http://www.szse.cn |
| Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK), http://www.cninfo.com.cn/ |
| Place where this Report is lodged | Board Secretary’s Office |
IV Changes to Company Registered Information
| Unified social credit code | 911100001011016602 |
| Change to principal activity of the Company since going public (if any) | No change |
| Every change of controlling shareholder since incorporation (if any) | No change |
BOE Technology Group Co., Ltd. Annual Report 2024
V Other InformationThe independent audit firm hired by the Company:
| Name | KPMG Huazhen LLP |
| Office address | 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing |
| Accountants writing signatures | Su Xing and Liu Jingyuan |
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable ? Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement:
Change of accounting policy.
| Item | 2024 | 2023 | 2024-on-2023 change (%) | 2022 | ||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 198,380,605,661.00 | 174,543,445,895.00 | 174,543,445,895.00 | 13.66% | 178,413,731,179.00 | 178,413,731,179.00 |
| Net profit attributable to the listed company’s shareholders (RMB) | 5,323,248,974.00 | 2,547,435,360.00 | 2,547,435,360.00 | 108.97% | 7,550,877,790.00 | 7,541,423,198.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 3,837,124,867.00 | -632,561,344.00 | -632,561,344.00 | 706.60% | -2,228,652,161.00 | -2,238,106,753.00 |
| Net cash generated from/used in operating activities (RMB) | 47,737,577,379.00 | 38,301,826,884.00 | 38,301,826,884.00 | 24.64% | 43,021,967,305.00 | 43,021,967,305.00 |
| Basic earnings per share (RMB/share) | 0.14 | 0.06 | 0.06 | 133.33% | 0.19 | 0.19 |
| Diluted earnings per share (RMB/share) | 0.14 | 0.06 | 0.06 | 133.33% | 0.19 | 0.19 |
| Weighted average return on equity (%) | 4.05% | 1.89% | 1.89% | 2.16% | 5.45% | 5.45% |
| Item | 31 December 2024 | 31 December 2023 | Change of 31 | 31 December 2022 | ||
BOE Technology Group Co., Ltd. Annual Report 2024
| December 2024 on 31 December 2023 (%) | ||||||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 429,978,221,541.00 | 419,187,099,795.00 | 419,187,099,795.00 | 2.57% | 420,562,103,212.00 | 420,567,865,936.00 |
| Equity attributable to the listed company’s shareholders (RMB) | 132,937,555,308.00 | 129,428,307,067.00 | 129,428,307,067.00 | 2.71% | 136,089,410,395.00 | 136,086,175,204.00 |
Reason for accounting policy change and correction of accounting error:
As required by Interpretations No. 17 and No. 18 for the Accounting Standards for Business Enterprises issued by the Ministry ofFinance, the Group has retrospectively restated relevant financial statement items at the beginning of the year and in the same periodof last year. The said changes of accounting policies have no significant impact on the Company’s financial condition and operatingresults. The said changes of accounting policies have no significant impact on the above key accounting data and financial indicators.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there wasuncertainty about the Company’s ability to continue as a going concern.
□ Yes ? No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative.
□ Yes ? No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
VIII Key Financial Information by Quarter
Unit: RMB
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 45,887,570,444.00 | 47,498,671,188.00 | 50,345,285,330.00 | 54,649,078,699.00 |
| Net profit attributable to the listed company’s shareholders | 983,812,692.00 | 1,300,238,662.00 | 1,025,714,296.00 | 2,013,483,324.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 596,689,345.00 | 1,016,714,036.00 | 694,457,953.00 | 1,529,263,533.00 |
| Net cash generated from/used in operating activities | 16,230,705,070.00 | 8,648,264,222.00 | 8,990,282,788.00 | 13,868,325,299.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
| Item | 2024 | 2023 | 2022 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 150,314,680.00 | -18,043,310.00 | 5,445,499,094.00 | N/A |
| Government grants recognised in current profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 1,220,722,012.00 | 3,793,619,228.00 | 5,458,665,272.00 | N/A |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 571,124,492.00 | 360,708,461.00 | 275,498,559.00 | N/A |
| Capital occupation charges on a non-financial enterprise that are charged to current profit or loss | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on assets entrusted to other entities for investment or management | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | 0.00 | 0.00 | N/A |
| Asset losses due to acts of God such as natural disasters | 0.00 | 0.00 | 0.00 | N/A |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 6,099,046.00 | 43,996,519.00 | 18,395,999.00 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 0.00 | 0.00 | 0.00 | N/A |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | 0.00 | 0.00 | N/A |
| One-off costs incurred by the Company as a result of discontinued operations, such as expenses for employee arrangements | 0.00 | 0.00 | 0.00 | N/A |
| One-time effect on current profit or loss due to adjustments in tax, accounting and other laws and regulations | 0.00 | 0.00 | 0.00 | N/A |
| One-time share-based payments recognized due to cancellation and modification of equity incentive plans | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on changes in the fair value of employee benefits payable after the vesting date for cash-settled share-based payments | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in investment property of which subsequent measurement is carried out using the fair value method | 0.00 | 0.00 | 0.00 | N/A |
| Income from transactions with distinctly unfair prices | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on contingencies that are unrelated to the Company's normal business operations | 0.00 | 0.00 | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | 0.00 | 0.00 | N/A |
| Non-operating income and expense other than the above | 153,063,492.00 | 333,923,695.00 | 90,115,764.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | 0.00 | 0.00 | N/A |
| Less: Income tax effects | 208,616,605.00 | 227,580,473.00 | 133,580,776.00 | N/A |
| Non-controlling interests effects (net of tax) | 406,583,010.00 | 1,106,627,416.00 | 1,375,063,961.00 | N/A |
| Total | 1,486,124,107.00 | 3,179,996,704.00 | 9,779,529,951.00 | -- |
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
Part III Management Discussion and Analysis
I Industry Overview for the Reporting PeriodLooking back at 2024, reshaping of the global landscape accelerated, and the world economy slowly recovered amid an imbalance,with significant economic growth disparities between different regions. The semiconductor display industry remained highlycompetitive, and companies continued to face operational pressure. Additionally, the manufacturing system accelerated its shift toemerging markets such as Southeast Asia, which caused certain disruptions to the industrial structure.Despite the complex external environment, development opportunities also emerged. The government actively implemented policiesto "benefit people's livelihoods, stimulate consumption, and strengthen economic momentum," such as "reducing the reserverequirement ratio and interest rates" and "trade-in programmes," which boosted consumer confidence, stimulated domestic economicgrowth, and significantly enhanced demand in the end-market. On the industrial side, semiconductor display companies producedaccording to market demand, improving the supply-demand relationship in the industry. At the same time, there was a clear trend ofupgrading to high-end displays, with the entire industry continuing to innovate across dimensions such as new materials, newtechnologies, and new products. This led to breakthroughs in display technologies like UHD, ultra-high-refresh, flexible OLED,Mini/Micro LED, etc., empowering smart terminal products such as consumer electronics, automotive electronics, and industrialsensors with superior performance and diverse forms, injecting new vitality into the industry. As digital technologies like AI rapidlygained popularity, the semiconductor display industry accelerated the construction of an interconnected ecosystem, continuouslyexpanding demand-side scenarios. This further facilitated the rapid growth of various segmented application markets, includingindustrial IoT, intelligent car networking, smart finance, smart industrial parks, and smart energy, bringing new developmentopportunities for the Company.II Principal Operations of the Company in the Reporting Period(I) About the CompanyIn constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligentinterface products and professional services for information interaction and human health.With “To Be the Most Respected Company on Earth” as its vision and, BOE always keeps in mind the mission of “Change Life withBOE Display Everywhere”, upholds the core values of “Integrity & Reliability, Dedication to Customers, Being People-oriented,Openness and Innovation”, as well as adheres to the business philosophy of “Doing the Right Thing, Innovation and Progress Seeking”.In pursuit of high-quality, sustainable development and guided by the strategy of “Empower IoT with Display”, BOE has been forgingahead through innovation, as well as accelerating the realisation of high-level collaboration within and outside the industry. BOE hasgrown into a world leader in the semiconductor display industry and a global innovative company in the IoT sector. At present, it hasa significant number of manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, SuzhouOrdos, etc., with subsidiaries across nearly 20 countries and regions including the United States, Germany, Japan, South Korea,Singapore, India, Brazil, and the United Arab Emirates, as well as a service system that covers major regions of the world, such asEurope, Americas, Asia, and Africa.Adhering to a “market-oriented, international, and professional” development approach, the Company keeps in mind the people-oriented principle, drives continuous innovations in an intelligent and IoT-based era, as well as provides customers with better productsand more thoughtful service experience with its well-established global network and a diverse product and service system.To embrace the development trends of the industry, BOE has put in place a development architecture of "1+4+N+Ecosystem", amongwhich:
BOE Technology Group Co., Ltd. Annual Report 2024
"1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source andorigin of the Company's development."4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, aswell as the four main fronts of the Company's IoT development, namely the IoT Innovation business, the Sensor business, the MLEDbusiness and the Smart Engineering Medicine business."N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specificfocus of the Company's IoT development.“Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and byaggregating the resources of the industrial chain and ecosystem chain.(II) About the Company’s principal operations
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interfacedevices applying TFT-LCD, AMOLED and other technologies, focusing on providing customers with high-quality display devices forsmartphones, tablet PCs, laptops, monitors, TVs, vehicles, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers withcompetitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI andbig data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions forsegments including smart industrial parks, smart finance, etc.
3. The Sensor business
The Sensor business offers integrated design and manufacturing solutions, focuses on FPXD, smart display windows, MEMS, industrialsensors, and glass packaging substrates, and provides customers with products and services including back plates for flat panel X-raydetectors (FPXD), intelligent PDLC windows and PDLC system solutions, consumer electronics and industrial application solutions,and advanced packaging, among others.
4. The MLED business
The MLED business provides LED solutions with integrated R&D, manufacturing and marketing services. Focused on devices andsolutions, this business renders LED backlight products with high quality and reliability for TVs, monitors, notebooks, vehicles, etc.,as well as Mini/Micro-LED display products with high brightness, high reliability and high contrast for segment markets of outdoor,commercial, transparent, specialized and other displays.
5. The Smart Engineering Medicine business
The Smart Engineering Medicine business adopts a professional service model to provide products, services and solutions in relationto medical care, smart nursing, medical-engineering integration, etc. Meanwhile, this business is committed to providing a closed loopof through-life health services with health management as the core, medical terminals as the traction, and digital hospitals andrecreational communities as the support. It connects testing equipment, healthcare workers and customers through the smart healthmanagement ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing.
6. The “N” business
With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for differentsegments, including intelligent car networking, smart energy, industrial IoT, UHD display, etc., which can provide customers withmulti-functional and smart new experience under IoT scenarios.In terms of intelligent car networking, the business integrates DMS, gesture recognition, touch feedback, naked-eye 3D and otherfunctions, focuses on the intelligent cockpit "HERO" innovative application scenarios, and promote the continuous upgrading ofproducts and solutions in the field of vehicle-mounted display and interaction. One-stop products and services for automotive intelligentupgrading are provided, representing a new leading ecosystem of innovative and intelligent travel.
BOE Technology Group Co., Ltd. Annual Report 2024
In terms of the smart energy business, BOE focuses on zero-carbon integrated energy services. With BSEOS as the empoweringplatform, it revolves around various aspects of "source-grid-load-storage-carbon." It offers a zero-carbon implementation path of"source decarbonization, process decarbonization, end negative carbon, and intelligent carbon management," providing customers withcomprehensive energy services and utilization, and zero-carbon solutions.In terms of the industrial internet business, BOE is committed to providing industrial software, intelligent manufacturing solutions forthe pan-semiconductor industry. Leveraging over three decades of industry experience, BOE offers pan-semiconductor industrialsoftware, smart factory services, industrial AI, and other products and services, continuously driving high-quality development acrossthe industry.The ultra-high-definition display business has entered a new development stage with key ultra-high-definition technologies driving theindustrial chain of ultra-high-definition front-end capture, transmission, distribution, and terminal display, connecting the 8K ultra-high-definition video industry content production chain, and promoting the application of ultra-high-definition in visual arts and otherdigital scenarios.III Core Competitiveness Analysis
1. Clear strategic leadership and a sustainable value growth system
Based on years of deep cultivation in the fields of semiconductor display and Internet of Things (IoT) innovation, the Companyproposed the "Empower IoT with Display" strategy tailored to its transformation and development. By integrating more functions,deriving more forms, and inserting more scenarios, the strategy explores the ubiquitous growth potential of "display", expands itsintegrated software and hardware application capabilities, and collaborates with numerous ecosystem partners to realise co-createdvalue, thereby building a digital-intelligent industrial ecosystem in the intelligent IoT era where "display as terminal, display asplatform, and display as system."Building upon the ongoing implementation of the "Empower IoT with Display" strategy, and based on in-depth reflection on industrialdevelopment patterns, in 2024 the Company creatively proposed the strategic elevation theory of the "The Nth Curve Theory".Leveraging its long-standing core strengths in semiconductor display, glass-based processing, and large-scale integrated intelligentmanufacturing, the Company continues to expand and incubate emerging tracks, helping to consolidate its core competitive advantagesthrough growth and achieve sustainable business development.
2. Market leadership and diversified business ecosystems
In line with the development trends of the digital-intelligent era, the Company has accurately identified customer needs, keenly capturedmarket opportunities, and actively seized the initiative in business deployment. At present, it is further expanding its global footprint,improving business layout in more segmented scenarios, and exploring new growth curves.In 2024, the Company continued to maintain its leading global position in the semiconductor display industry, enhancing its marketinfluence together with strategic customers and steadily increasing the proportion of core customers. In the LCD segment, theCompany's shipments of display panels for the five major mainstream applications remained the highest globally. The product mix ofLCDs continued to optimise, with improvements in large-size and gaming display performance, leading the high-end upgrade of thedisplay industry. In the flexible OLED segment, approximately 140 million units were shipped throughout the year, ranking secondglobally in volume. Shipments of foldable products increased by about 40%, with several high-end foldable models exclusivelysupplied to customers.The Company continuously drives the expansion of diversified application scenarios to facilitate the implementation of IoT innovationtransformation. The smart terminal business further strengthened its overseas service capabilities, with the second phase of the self-built smart terminal project in Vietnam successfully topped out. Competitiveness in low-power and IoT application terminal productscontinued to rise, with shipments in interactive whiteboards and splicing screens ranking first globally. After years of deployment, the3D display business has achieved full product coverage from 7.9" to 110". The system solutions business is committed to providingone-stop hardware-software integrated solutions for numerous segmented scenarios such as campuses, finance, education, digital
BOE Technology Group Co., Ltd. Annual Report 2024
exhibitions, etc., supporting intelligent transformation across industries. The MLED business made significant progress, deliveringbenchmark projects across multiple fields with products featuring high brightness, high reliability, and high contrast. In the sensorbusiness, the imaging segment secured key projects with leading partners; the smart window segment expanded into multipleautomotive customers; the light curtain side window product secured a designated project with a high-end customer; industrial sensingproducts achieved breakthroughs with key customers. The smart engineering medicine business experienced year-on-year growth inrevenue, outpatient volume, and discharge volume, with significant improvements in operational quality. In addition, the Company isaccelerating the construction of new growth curves. The pilot line of the perovskite photovoltaic project successfully produced its firstbatch of samples. Glass-based packaging achieved key technological breakthroughs, enabling the provision of high aspect ratio panel-level samples to customers.The "N" business serves as the Company's concrete entry point for IoT innovation transformation. Through the construction of a"technology-scenario-ecosystem" framework, it continuously enhances its competitive advantage within the ecosystem, enablingcustomers to enjoy new intelligent scenario experiences. In 2024, BOE Varitronix continued to implement designated projects for topdomestic and international customers. BOE Energy Technology achieved breakthroughs in energy management contracting servicesand received the highest industry credit honour for energy-saving enterprises. UPTC continued building benchmark projects in thedigital space. The Company's cross-industry technology reuse in fields such as intelligent car networking and smart energy broketraditional business boundaries. This further drove display technologies to evolve into high-value, system-level "intelligent hubs,"continuously strengthening the foundation for the Company's development and promoting the synergistic growth of the industrialecosystem.
3. Outstanding technological strength and forward-looking innovation deployment
The Company has always upheld innovation as a guiding force, consolidating its core technological capabilities and enhancing itsoverall competitive strength. It has established three major technology brands: ADS Pro, f-OLED, and α-MLED. By reinforcingtechnological innovation, the Company continues to optimise the user experience. At the same time, it continues to strengthen thesynergy among industry, academia, and research, building three key technology sources in semiconductor display, IoT innovation, andsensor devices. The Company is committed to developing an innovation ecosystem and collaborating with numerous industry partnersto achieve co-created value.In terms of product influence, the Company leads industry development with cutting-edge technology. It launched the world's first highcolour gamut and high-efficiency C100, marking a breakthrough in its high-end Mini LED TV product line. The world's first "Z"-shaped three-fold MBL product entered mass production and delivery, ushering in a new era of OLED products.In terms of technological influence, the AI+ display device image enhancement technology solution won the 2024 DIC AWARD. The110" 16K naked-eye 3D terminal and the 32" light field display both received the SID 2024 PCA Award. In addition, the project "KeyTechnologies and Applications of Integrated Light Field 3D Display," in which the Company participated, was awarded the SecondPrize of the National Technological Invention Award. In standard-setting, the Company initiated 14 new external standards andpublished 19 new external standards, accelerating its transition from a technology innovation leader to a standard-setter in the industry.Regarding patents, the Company continuously strengthens its high-quality patent layout, with over 8,000 new patent applications inthe year, including over 90% invention patents and over 33% overseas patents covering multiple countries and regions such as theUnited States, Europe, Japan, and Korea, spanning innovative fields like flexible OLEDs, sensors, and artificial intelligence. TheCompany's technological innovation prowess has been continuously recognized by authoritative organizations across the world,entering the global TOP 20 in the IFI U.S. patent authorization ranking for seven consecutive years and the global TOP 10 in WIPO'sglobal PCT patent application for nine consecutive years. In 2024, it ranked 12th in the first-ever released Top 100 Global Innovatorsby Clarivate Analytics, further demonstrating its innovation strength and technological leadership as an industry leader.
4. Comprehensive organisational mechanisms and a lean operational management systemThe Company continues to deepen the "three offices and three managements" operational management system. By establishing frontand middle-office operational teams and leveraging key levers such as strategy, processes, and performance, the Company continuouslystreamlines collaborative mechanisms among front, middle, and back offices, significantly improving market responsiveness,
BOE Technology Group Co., Ltd. Annual Report 2024
communication efficiency, and decision-making deployment efficiency. Meanwhile, in response to the development needs of thedigital-intelligent era, the Company has set the goal of building "one digital and visible BOE," and is continuously advancing digitaltransformation to support the optimisation of its operational mechanisms and maximise business value output. In 2024, to furtherenhance the application of AI in business development and corporate operations, the Company launched the "AI+" strategy andestablished the "AI+" Innovation and Application Committee to accelerate the construction of the foundational AI infrastructure andstrengthen its core competitive advantages. The "AI+" strategy will be deeply integrated with business development needs,continuously supporting innovation in manufacturing and products, driving improvements in quality, cost-efficiency, and performanceat the factory level, as well as promoting intelligent upgrades in terminal products, thereby further enhancing the Company's operationalefficiency.
5. Excellent corporate culture and an enduring spirit of endeavour
Since its founding, the Company has upheld the lofty aspiration of contributing to national industry development. Through more thanthirty years of entrepreneurship and innovation, it has forged an outstanding corporate culture rooted in the values of the "Three Virtuesand Five Spirits." Over the years, in the face of a complex and ever-changing business environment, the Company has adhered to agrowth logic of "inheritance, innovation, and development," continuously enriching the connotation of its corporate culture, andforming a deeply cohesive and inspirational core cultural identity. In 2024, BOE was honoured as a "Best Practise Enterprise in NationalCorporate Culture," a strong affirmation of its outstanding corporate values. This recognition will inspire the Company to continueharnessing the creative power of its culture, and to fully leverage the driving force, influence, value, and branding strength of itscorporate culture to accelerate reform and development, and to speed up the construction of a world-class enterprise.IV Core Business Analysis
1. Overview
1. The Display Devices business
The leading position continued to strengthen, consolidating development advantages. Shipments of mainstream LCD applicationsremained the highest globally. Annual shipments of flexible OLED devices recorded significant year-on-year growth, with multiplehigh-end foldable products supplied exclusively to customers. Technological innovation led to a full upgrade of high-end flagshipproducts, with notable results in product mix optimisation: the high-end LCD solution UB Cell launched iterated Black Diamond andBlack Crystal products, setting new trends in high-end TVs. In the OLED business, the Company jointly developed with customers theworld's first three-fold product, opening a new chapter for OLED mobile terminal applications. In addition, major projects progressedsmoothly: the topping-out of China's first 8.6G AMOLED production line was completed ahead of schedule, and the first product ofthe newly constructed 6G LTPO LCD production line was lit in advance, continuously reinforcing the Company's competitiveadvantage in the semiconductor display sector.
2. The IoT Innovation business
Deeply cultivating segmented markets, the industry influence was significantly enhanced. In the smart terminal business, TV terminalssecured tenders for high colour gamut and low energy consumption products; MNT terminals achieved record-high sales in high-endsegments such as gaming, QHD+, and Mini LED; TPC terminals entered the ODM resource pool of core tablet customers, and theoverseas business obtained Google MADA qualification; e-Note products for office and education made breakthroughs in full-deviceself-development; shipments in segmented markets such as interactive whiteboards and splicing screens remained first globally. In thesystem solutions business, the smart finance segment had cumulatively provided comprehensive, multi-level solutions to over 4,500bank branches in 31 provinces, municipalities, and autonomous regions across China. The smart industrial parks segment continuedstrengthening product solution capabilities in sub-scenarios such as cultural tourism and business parks, delivering over 50 benchmarkprojects in 35 cities, serving more than 700 customers and promoting intelligent service upgrades in parks. The brand business
BOE Technology Group Co., Ltd. Annual Report 2024
continued to cultivate scenarios such as conference and office use, digital exhibitions, and new retail, creating a series of moreintelligent and user-friendly commercial display products, comprehensively enhancing brand influence.
3. The Sensor business
Continuously cultivating high-potential segments, the business developed with high quality. Cooperation with leading FPXD customersdeepened, with year-on-year sales growth. Revenue from smart windows doubled year-on-year, the flexible LC smart light curtainsuccessfully rolled off the production line, and smart dimming for passenger vehicles became standard on flagship models of keycustomers. Suzhou Sensor introduced products to leading customers in industries such as photovoltaics and lithium batteries. TheMEMS segment focused on pressure sensors, promoted product commercialisation, and expanded product applications in newscenarios.
4. The MLED business
Business operations improved steadily. MLED continued to refine the industrial chain. The direct display business showed markedimprovement, the new COB production line was successfully lit, the four-sided naked-eyeglasses-free 3Dwon the 2024 Berlin DesignAward, and the cinema screen received Hollywood DCI certification. In the backlight business, product competitiveness furtherstrengthened, with coordinated launches with leading industry customers in segmented markets such as NB, MNT, TPC, automotive,and commercial display. Multiple high-end products, including Mini LED, curved, and irregular-shaped displays, were introduced.Among them, the MNT 31.5" product received the gold prize of the Visual Grand Prix (VGP) Awards, and the first 13.48" automotiveproduct entered mass production.
5. The Smart Engineering Medicine business
Digital hospital operational capabilities were continuously enhanced, and brand influence significantly increased. Total outpatientvolume of digital hospitals rose by approximately 23% year-on-year, and total discharge volume increased by more than 17% year-on-year. The key departments of obstetrics, gynaecology, and paediatrics at OASIS International Hospital continued steady development.Key disciplines such as orthopaedics at Hefei BOE Hospital reached a leading level in the province. Chengdu BOE Hospital rankedamong the top in the province in haematology and oncology. Suzhou BOE Hospital passed the evaluation for tertiary hospital statusand received approval for three district-level key disciplines. The first smart elderly care project—Chengdu Jincheng Shiguang—wasput into operation and received multiple industry honours. Focusing on the prevention and control of myopia in adolescents, theCompany launched the Changying Edition Yuanwang learning screen, significantly improving user experience. Meanwhile, innovationand R&D progressed further. In regenerative medicine, clinical trials for cardiac patches advanced steadily with six enrolled casesduring the year. Clinical research on NK therapy for urinary system tumours was promoted in parallel. Two Beijing municipal keylaboratories were approved in cooperation with Beijing Tiantan Hospital and the Cancer Hospital, Chinese Academy of MedicalSciences.
6. The “N” business
Breakthroughs were achieved across all innovative business lines, continuously setting industry benchmarks. Varitronix strengthenedstrategic cooperation with mainstream domestic brands and co-established a joint innovation display laboratory with Chery. Large-sizeOLED products secured platform-based designation projects with leading domestic new energy vehicle customers. In overseas markets,Mini LED + Oxide integrated module platform designation projects were obtained from top-tier customers. BOE Energy Technologyachieved year-on-year growth in both revenue and net profit. Investment and construction of new energy power stations increased byover 50% year-on-year. The company received the highest industry honours: 5A in energy management contracting services and 3Ain energy-saving enterprise credit rating. It was officially listed on the National Equities Exchange and Quotations (NEEQ).Zhongxiangying provides industrial software, smart facility management, and industrial AI products and services for the pan-semiconductor industry. Its self-developed products have achieved continued breakthroughs across industries such as semiconductorwafers, semiconductor packaging and testing, film materials, new energy vehicles, batteries, and photovoltaics. UPTC focuses on theultra-high-definition digital sector and launched three core products: ultra-high-definition display terminals for government andenterprises, domestically produced intelligent flight display terminals, and the U-Station ultra-high-definition broadcasting control
BOE Technology Group Co., Ltd. Annual Report 2024
terminal. The company delivered a series of benchmark projects, including the Liangma River Platinum Palace Lock and the MGMDigital Art Museum in Macau, and supported the second scene of the National Theatre of China's Sudi Chunxiao Project, which wasselected as one of the Ministry of Culture and Tourism's "Top 10" National Cases of Cultural Tourism Digital Innovation 2024. Thedigital art exhibition project of the National Centre for the Performing Arts was selected as one of the "2024 Representative Cases inthe Audiovisual System Industry."
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| Item | 2024 | 2023 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 198,380,605,661.00 | 100% | 174,543,445,895.00 | 100% | 13.66% |
| By operating division | |||||
| Display Devices business | 165,003,592,549.00 | 83.18% | 146,603,375,798.00 | 83.99% | 12.55% |
| IoT Innovation business | 33,828,880,608.00 | 17.05% | 33,792,127,023.00 | 19.36% | 0.11% |
| Sensor business | 386,471,446.00 | 0.19% | 405,037,922.00 | 0.23% | -4.58% |
| MLED business | 8,483,421,034.00 | 4.28% | 5,664,637,280.00 | 3.25% | 49.76% |
| Smart Engineering Medicine business | 1,839,415,166.00 | 0.93% | 1,676,326,992.00 | 0.96% | 9.73% |
| Other business and offset among segments | -11,161,175,142.00 | -5.63% | -13,598,059,120.00 | -7.79% | -17.92% |
| By product category | |||||
| Display Devices business | 165,003,592,549.00 | 83.18% | 146,603,375,798.00 | 83.99% | 12.55% |
| IoT Innovation business | 33,828,880,608.00 | 17.05% | 33,792,127,023.00 | 19.36% | 0.11% |
| Sensor business | 386,471,446.00 | 0.19% | 405,037,922.00 | 0.23% | -4.58% |
| MLED business | 8,483,421,034.00 | 4.28% | 5,664,637,280.00 | 3.25% | 49.76% |
| Smart Engineering Medicine business | 1,839,415,166.00 | 0.93% | 1,676,326,992.00 | 0.96% | 9.73% |
| Other business and offset among segments | -11,161,175,142.00 | -5.63% | -13,598,059,120.00 | -7.79% | -17.92% |
| By operating segment | |||||
| Mainland China | 99,522,213,629.00 | 50.17% | 80,541,975,332.00 | 46.15% | 23.57% |
| Other regions | 98,858,392,032.00 | 49.83% | 94,001,470,563.00 | 53.85% | 5.17% |
| By marketing model | |||||
| Direct sales | 198,380,605,661.00 | 100.00% | 174,543,445,895.00 | 100.00% | 13.66% |
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%of Operating Revenue or Operating Profit? Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
BOE Technology Group Co., Ltd. Annual Report 2024
| Display Devices business | 165,003,592,549.00 | 143,955,472,188.00 | 12.76% | 12.55% | 6.90% | 4.62% |
| IoT Innovation business | 33,828,880,608.00 | 30,247,926,452.00 | 10.59% | 0.11% | -2.24% | 2.15% |
| By product category | ||||||
| Display Devices business | 165,003,592,549.00 | 143,955,472,188.00 | 12.76% | 12.55% | 6.90% | 4.62% |
| IoT Innovation business | 33,828,880,608.00 | 30,247,926,452.00 | 10.59% | 0.11% | -2.24% | 2.15% |
| By operating segment | ||||||
| Mainland China | 99,522,213,629.00 | 83,710,296,733.00 | 15.89% | 23.57% | 15.73% | 5.70% |
| Other regions | 98,858,392,032.00 | 84,511,652,840.00 | 14.51% | 5.17% | 2.88% | 1.89% |
| By marketing model | ||||||
| Direct sales | 198,380,605,661.00 | 168,221,949,573.00 | 15.20% | 13.66% | 8.90% | 3.70% |
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable ? Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
| Operating division | Item | Unit | 2024 | 2023 | Change (%) |
| TFT-LCD | Sales volume | K㎡ | 83,132.00 | 77,400.00 | 7.41% |
| Output | K㎡ | 83,328.00 | 78,107.00 | 6.68% | |
| Inventory | K㎡ | 5,886.00 | 5,690.00 | 3.44% | |
| AMOLED | Sales volume | K㎡ | 2,093.00 | 1,704.00 | 22.83% |
| Output | K㎡ | 2,115.00 | 1,737.00 | 21.76% | |
| Inventory | K㎡ | 163.00 | 141.00 | 15.60% |
Reason for any over 30% YoY movements in the data above
□ Applicable ? Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
| By operating division | Item | 2024 | 2023 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 143,955,472,188.00 | 85.57% | 134,669,314,965.00 | 87.18% | 6.90% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 30,247,926,452.00 | 17.98% | 30,940,234,587.00 | 20.03% | -2.24% |
BOE Technology Group Co., Ltd. Annual Report 2024
| Sensor and solution business | Materials, labor costs, depreciation, etc. | 304,425,278.00 | 0.18% | 330,920,417.00 | 0.21% | -8.01% |
| MLED business | Materials, labor costs, depreciation, etc. | 7,993,316,575.00 | 4.75% | 5,512,239,740.00 | 3.57% | 45.01% |
| Smart Engineering Medicine business | Materials, labor costs, depreciation, etc. | 1,899,758,297.00 | 1.13% | 1,681,025,214.00 | 1.09% | 13.01% |
| Others and offset | Materials, labor costs, depreciation, etc. | -16,178,949,217.00 | -9.61% | -18,660,064,887.00 | -12.08% | -13.30% |
Unit: RMB
| By product category | Item | 2024 | 2023 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 143,955,472,188.00 | 85.57% | 134,669,314,965.00 | 87.18% | 6.90% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 30,247,926,452.00 | 17.98% | 30,940,234,587.00 | 20.03% | -2.24% |
| Sensor and solution business | Materials, labor costs, depreciation, etc. | 304,425,278.00 | 0.18% | 330,920,417.00 | 0.21% | -8.01% |
| MLED business | Materials, labor costs, depreciation, etc. | 7,993,316,575.00 | 4.75% | 5,512,239,740.00 | 3.57% | 45.01% |
| Smart Engineering Medicine business | Materials, labor costs, depreciation, etc. | 1,899,758,297.00 | 1.13% | 1,681,025,214.00 | 1.09% | 13.01% |
| Others and offset | Materials, labor costs, depreciation, etc. | -16,178,949,217.00 | -9.61% | -18,660,064,887.00 | -12.08% | -13.30% |
Note:
The major cost of sales items such as materials, labor costs and depreciation are considered as business secrets. In order to avoid theleakage of these secrets, which could result in damage to the interests of the Company and its investors, cost of sales is only presentedwith respect to the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period? Yes □ NoThe changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 74,373,763,551.00 |
| Total sales to top five customers as % of total sales of the Reporting Period (%) | 37.50% |
| Total sales to related parties among top five customers as % of total sales of the Reporting Period (%) | 0.00% |
BOE Technology Group Co., Ltd. Annual Report 2024
Information about top five customers:
| No. | Customer | Sales revenue contributed for the Reporting Period (RMB) | As % of total sales revenue (%) |
| 1 | Customer A | 29,896,086,331.00 | 15.07% |
| 2 | Customer B | 16,421,735,730.00 | 8.28% |
| 3 | Customer C | 9,975,932,216.00 | 5.03% |
| 4 | Customer D | 9,082,811,146.00 | 4.58% |
| 5 | Customer E | 8,997,198,128.00 | 4.54% |
| Total | -- | 74,373,763,551.00 | 37.50% |
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 24,154,203,878.00 |
| Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) | 18.05% |
| Total purchases from related parties among top five suppliers as % of total purchases of the Reporting Period (%) | 0.00% |
Information about top five suppliers:
| No. | Supplier | Purchase in the Reporting Period (RMB) | As % of total purchases (%) |
| 1 | Supplier A | 6,501,353,406.00 | 4.86% |
| 2 | Supplier B | 6,122,649,926.00 | 4.58% |
| 3 | Supplier C | 4,982,615,909.00 | 3.72% |
| 4 | Supplier D | 3,363,549,009.00 | 2.51% |
| 5 | Supplier E | 3,184,035,628.00 | 2.38% |
| Total | -- | 24,154,203,878.00 | 18.05% |
Other information about major suppliers:
□ Applicable ? Not applicable
3. Expense
Unit: RMB
| Item | 2024 | 2023 | Change (%) | Reason for any significant change |
| Selling expense | 1,995,294,652.00 | 1,896,331,536.00 | 5.22% | N/A |
| Administrative expense | 6,218,672,130.00 | 5,944,875,540.00 | 4.61% | N/A |
| Finance costs | 1,224,387,370.00 | 1,150,310,546.00 | 6.44% | N/A |
| R&D expense | 13,123,309,231.00 | 11,319,503,088.00 | 15.94% | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
4. R&D Investments
? Applicable □ Not applicable
| Names of main R&D projects | Project objectives | Project progress | Objectives to be achieved | Expected impact on the future development of the Company |
| UB Cell Project | To produce LCDs with an image quality comparable to that of OLEDs and a cost lower than that of OLEDs and enhance BOE's competitiveness in high-end products. | Product mass production achieved. | 1. Improve static contrast ratio to 3500:1; reduce reflectivity to 0.5%; 2. Achieve low-cost circular polarised eye protection; 3. Mass production of UB 3.0 high-end flagship model and completion of UB 4.0 technology development. | To achieve a platform-based leap in technological capability; already introduced into high-end TV products; To become a mainstream technology for display products and a strategic leader for product upgrading. |
| Oxide | To further utilise the advantages of high mobility and low leakage current of oxides, develop new device structures, create advanced and reliable oxide process capability, and achieve overall improvement of product performance. | In progress | 1. Ensure Top Gate mass production schedule; 2. 1Hz low-frequency design for NB to meet brand customer flicker standards and fulfil customer product development requirements. | To further enhance the mobility of Oxide materials and reduce low frequency; to construct the BOE Oxide brand based on BOE's production capacity edge and offer robust support for boosting BOE's product competitiveness. |
| Function Integration | Integrate light sensors, Smart GOA, under-screen ultrasonic fingerprint recognition, privacy protection, and other functions into panels to enhance competitiveness. | In progress | 1. a-Si light sensing integration product-ready and promoted to customers; 2. Smart GOA productised; 3. 10*11 ultrasonic fingerprint upgraded with pressure-sensing and productised; PI-based ultrasonic fingerprint tech completed; 4. Switchable shared/private mode achieved. | Integrated functionality adds value and expands application scenarios for more user-friendly and cost-effective screens, enhancing market competitiveness. |
| GPR | Develop new materials and advanced processes for GPR 3D products targeting 31.5" 4K medical displays to reduce crosstalk and enhance optical characteristics. | In progress | Development of new materials and processes with low crosstalk for 86/31.5" 4K displays completed. | With growth in education and medical markets (e.g., endoscopy), in-house GPR technology positions BOE to seize opportunities in large-format glasses-type 3D products. |
| Health Display | Create low-cost circular polarised eye-protection display solutions with antibacterial and antiviral functionalities. | In progress | Create proprietary low-cost circular polarised eye-protection display solutions with antibacterial and antiviral functionalities. | Establish IP in low-cost natural light-like eye-protection technology, lead the trend in health display solutions, and boost product competitiveness, providing strong support for BOE's market position. |
| Low-Carbon and Environmentally Friendly | Improve light transmittance, adopt PFAS-free materials, and introduce low-temperature processes to reduce carbon emissions and enhance competitiveness. | In progress | 1. Completed 7.0% light transmittance tech for 55" VA 4K TVs; 2. PFAS-free solution verified and ready for productisation; 3. Low-temperature 2.0 process | Explore enhanced light transmittance, low-carbon materials, and process innovations to build a green, low-carbon display tech platform and capture early |
BOE Technology Group Co., Ltd. Annual Report 2024
| validation completed. | market opportunities. | |||
| Automotive Intelligent Cockpit | To integrate multiple functions based on the high-resolution ultra large screen and create a new concept of intelligent cockpit. | In progress | Panel-integrated features include PHUD, light sensing integration, and switchable peep-proof, among various other functionalities. |
To lead the trend towardshigh-definition large-sizesmart displays in vehicles,develop multifunctional,intelligent cockpit solutionsfor automobiles enhancingcompetitiveness inautomotive displays.
| HRD Technology | Achieve different refresh rates for different areas to save driving power consumption. | Product mass production achieved | 1. Reduce driving power consumption; 2. Achieve different refresh rates in different areas. | As a platform technology, it can be integrated into different application products, continuing to enhance the technological value of high-end flagship models based on LTPO, helping BOE's high-end OLED product marketing. |
| Tandem Technology | Use tandem OLED light-emitting devices to reduce power consumption, significantly improve brightness and lifespan. | Product mass production achieved | 1. Significant increase in brightness in both normal and high-bright modes; 2. Lifespan doubled; 3. Power consumption significantly reduced. | As a platform technology, it can be integrated into different application products and is expected to become an important label for future high-end OLED products. It can also accelerate OLED screen penetration in high-end laptops, automotive, and other product fields, boosting the Company's performance. |
| Wide Colour Gamut OLED Light-emitting Devices | Improve BT2020 colour gamut. | In progress | Achieve ≥95% coverage of BT2020 colour gamut. | As a platform technology, it can be integrated into different application products, emphasising the value of BOE's OLED wide-colour-gamut products and assisting in high-end product marketing by improving the BT2020 colour gamut development. |
| Extreme Narrow Border Technology | Significantly reduce the border size of the entire device. | In progress | Reduce the bottom border size of the entire device. | As a platform technology, it can be integrated into different application products, continuously improving the narrow border competitiveness of BOE OLED products. |
| Foldable New Forms | Expand new forms of foldable products. | Product mass production achieved | Mass production of new form foldable terminal products. | As an innovative product form in the mobile terminal field, it represents BOE OLED's leading technological strength. |
| Flexible Flat Laptop Products Mass Productio | BOE's first flexible OLED flat laptop product mass production. | Product mass production achieved | Integrate flexible OLED, lightweight, narrow four-sided borders, FMLOC+ active pen integration, and other advantages. | Mass production of this product marks an important breakthrough for BOE OLED in the laptop market. |
BOE Technology Group Co., Ltd. Annual Report 2024
| n | ||||
| 110-inch Mini LED TV Project | Create a super-large size, high colour gamut, high picture quality, ultra-efficient TV product. | The product client has been launched. | 1. Develop Mini LED products with over 5000 partitions, 5000 nits brightness, 8 million contrast ratio; 2. New backlight solution developed, achieving DCI-P3 125% colour gamut, and ultra-efficient energy consumption of 10 cd/W for TVs. | Achieve breakthroughs in high colour gamut, high picture quality, and low power consumption, which may become the leading technology for large-size high-end display products, boosting BOE's high-end product competitiveness and profitability growth. |
| AI Laptop Project | Develop AI-enabled laptops by integrating AI technology, providing more competitive products for customers and a smarter, personalised experience for users. | The product client has been launched. | Enabling local AI computing power and supporting the development and deployment of multiple local AI applications such as AICC and natural language. | To uphold a strong reputation for BOE and its customers with professional development capabilities and sound product quality, thereby laying the foundation for securing greater breakthroughs with brand customers |
| 12.1-inch Glass-Free 3D TPC Product Project | Enhance the 3D viewing experience and achieve 2D/3D switchable glass-free 3D display TPC products independently developed. | Mass production; The product client has been launched. |
Realise 2D/3D switchableglass-free 3D display with hightransparency and no loss in 2Dimages, with an eye-trackingsystem for the customer's wholemachine to achieve a >80° 3Dviewing angle.
| 2/3D switchable glass-free 3D TPC products are industry-leading, achieving one-button switching between 2D and 3D modes and incorporating eye-tracking technology for single-user, , offering an immersive experience and increasing the market influence of 3D displays. | ||||
| Smart All-in-One C100 Product Project | Complete an AI-powered, highly efficient, and collaborative smart all-in-one product to enhance user experience and core competitiveness in smart office solutions. | Mass production. | 1. Complete 65/75/86-inch 4K product development; develop AI big model meeting minutes, device operation Q&A app; 2. Complete voice-controlled screen function development for smart pen; 3. Complete natural handwriting 3.0 app, BOE Share app development, supporting 4K screen sharing and BYOM function. | The C100 series integrates AI multimodal interaction and large model technology, launching industry-leading applications, forming the core competitiveness of the product and significantly enhancing market competitiveness |
| Smart 3D Software Technology Platform Project | Support glass-free 3D display products, providing low-cost, high-quality, scalable hardware-software integrated terminal solutions for 3D smart terminals. | The product client has been launched. | Provide comprehensive services for multiple glass-free 3D terminals, completing over 10 software developments including global interlacing, AI 3D player, and 3D conversion platform. | The interlacing and 3D model viewing technologies have been applied in key customer products, further enhancing BOE's industry competitiveness. Help BOE's glass-free 3D industry development and address the low playability and promotion difficulties caused by lack of software and content. |
| LED Direct-View Technology |
Develop LED direct-viewproducts suitable for differentscenarios, including outdoordisplays, digital movie LEDscreens, xR virtual shooting
| Mass production. | 1. Develop products with efficient heat dissipation, high brightness energy-saving (up to 10,000+ nits brightness), easy maintenance, and creative design; complete outdoor | Empower LED direct-view products with technology and creativity, expand potential opportunities for multi-scenario penetration, enhance |
BOE Technology Group Co., Ltd. Annual Report 2024
| Research and Application | products, etc., to meet market needs. | product installation; 2. Launch MLED Super Digital Movie LED Screen solution, achieving successful lighting and DCI certification; 3. Build full hardware/software xR virtual shooting solution. | brand awareness and market share, and promote the continuous growth of BOE's MLED business. | |
| MLED Backlight Product Development | Leverage MLED backlight advantages, focus on high-end market applications, and optimise solutions to introduce multiple products. | Mass production. | 1. Provide customers with 1K+ partition, high refresh rate, low latency, high-quality MLED COG backlight solutions, optimise product costs, and enter high-end markets such as gaming and medical; 2. Provide customers with high contrast, high brightness MLED backlight automotive displays, offering a refined and realistic visual experience for drivers in both daylight and nighttime. | Promote market share growth of MLED backlight products in automotive, gaming, and display markets through high-quality visual performance and professional development capabilities. |
| High-Performance Light Control Solution | Apply solar power and wireless transmission technology, we develop the smart window solution product that powered by green energy and without wiring requirements. Develop flexible light control products, technologies, materials, and processes to meet panoramic roof needs for passenger vehicles. | In progress | 1. Develop a smart window solution product that powered by green energy and without wiring requirements and achieve energy-saving through solar and dimming functions; 2. Flexible light control products complete flexible process route construction, supporting materials development, and final integration process development. | Solve architectural customer pain points and improve customer experience. Get potential customers, achieving low-carbon energy-saving with solar and dimming technologies. Expand the passenger vehicle market for flexible light control products. |
| High-Performance Fiber Optic Sensor | Develop high-performance fiber optic amplifier products. | Mass production. | Develop new optical path solutions and circuit systems, enhance light emission and reception intensity, and reduce response time. | Develop high-performance fiber optic amplifiers based on customer needs for detection distance, precision, and response time, opening the semiconductor industrial sensing market. |
| Industrial FPXD Product Expansion | Achieve mass production of high-resolution, high-frame-rate dynamic industrial products and flexible industrial products. | Mass production. | 1. Enhance backplane spatial resolution, and improve frame rates; 2. Improve flexible process route and increase yield. | Develop new growth points in the X-ray detection field and expand product applications. |
| Glass-Based Semiconductor Specialised Devices | Develop large-size, high-performance glass-based packaging substrates. | In progress | 1. Clarify the glass-based substrate technical route and produce samples; 2. Solve key technical problems and improve product reliability. | BOE combines its own experience to develop glass substrate technology to help upgrade packaging technology. |
| Perovskite Photovoltaic Technology R&D | Focus on improving the efficiency and lifespan of perovskite photovoltaics, and conduct related technology and material research. | In progress |
Achieve breakthroughs inperovskite photovoltaic keytechnologies, improvinglifespan and efficiency,exploring productisationopportunities.
| Build a solid technological reserve for perovskite photovoltaics, expand product application areas, and incubate new business growth points. | ||||
| Cardiac Membran | Complete Phase I clinical trials for cell membrane drug | In progress | 1. Complete clinical dosing escalation to determine the | The first stem cell membrane drug in China, with a high |
BOE Technology Group Co., Ltd. Annual Report 2024
| e Phase I Clinical Trial | products to verify the safety and efficacy of the cell membrane in patients with low ejection fraction coronary heart disease, and develop the first stem cell membrane therapy product. | maximum tolerated dose of the drug; 2. Verify clinical safety and explore efficacy. | technological barrier, will enhance BOE's influence in high-end medical technology and product development. Accumulate technology from the cell membrane platform and expand indications, benefiting patients with multiple diseases and improving BOE's medical competitiveness. |
Particulars about R&D personnel:
| Item | 2024 | 2023 | Change (%) |
| Number of R&D personnel | 22,745 | 21,888 | 3.92% |
| R&D personnel as % of total employees | 22.95% | 24.17% | -1.22% |
| Educational background of R&D personnel | |||
| Bachelor’s degree | 13,593 | 13,237 | 2.69% |
| Master’s degree | 7,202 | 6,620 | 8.79% |
| Age structure of R&D personnel | |||
| Below 30 | 8,526 | 8,478 | 0.57% |
| 30~40 | 11,592 | 11,238 | 3.15% |
Particulars about R&D investments:
| Item | 2024 | 2023 | Change (%) |
| R&D investments (RMB) | 13,205,274,107.00 | 11,363,268,890.00 | 16.21% |
| R&D investments as % of operating revenue | 6.66% | 6.51% | 0.15% |
| Capitalized R&D investments (RMB) | 81,964,876.00 | 43,765,802.00 | 87.28% |
| Capitalized R&D investments as % of total R&D investments | 0.62% | 0.39% | 0.23% |
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
5. Cash Flows
Unit: RMB
| Item | 2024 | 2023 | Change (%) |
| Subtotal of cash generated from operating activities | 219,215,758,074.00 | 197,467,109,087.00 | 11.01% |
| Subtotal of cash used in operating activities | 171,478,180,695.00 | 159,165,282,203.00 | 7.74% |
| Net cash generated from/used in operating activities | 47,737,577,379.00 | 38,301,826,884.00 | 24.64% |
BOE Technology Group Co., Ltd. Annual Report 2024
| Subtotal of cash generated from investing activities | 62,629,563,802.00 | 75,280,272,801.00 | -16.80% |
| Subtotal of cash used in investing activities | 95,279,196,948.00 | 104,582,082,981.00 | -8.90% |
| Net cash generated from/used in investing activities | -32,649,633,146.00 | -29,301,810,180.00 | -11.43% |
| Subtotal of cash generated from financing activities | 51,846,047,908.00 | 30,633,001,231.00 | 69.25% |
| Subtotal of cash used in financing activities | 57,363,426,898.00 | 52,294,369,872.00 | 9.69% |
| Net cash generated from/used in financing activities | -5,517,378,990.00 | -21,661,368,641.00 | 74.53% |
| Net increase in cash and cash equivalents | 9,912,270,763.00 | -12,289,056,016.00 | 180.66% |
Explanation of why any of the data above varies significantly:
? Applicable □ Not applicableNet cash generated from operating activities increased 24.64% year on year, primarily driven by the increased sales during theReporting Period.Net cash generated from investing activities decreased 11.43% year on year, primarily driven by the increase in cash paid for theacquisition and construction of long-term assets during the Reporting Period.Net cash generated from financing activities increased 74.53% year on year, primarily driven by the increase in borrowings receivedand the decrease in perpetual bond repayments during the Reporting Period.Net increase in cash and cash equivalents increased 180.66% year on year, primarily driven by the increased sales and the decrease inperpetual bond repayments during the Reporting Period.
Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this ReportingPeriod
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses
? Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Main source/reason | Recurrent or not |
| Return on investment | -540,900,653.00 | -10.64% | Losses recognized from associates | Not |
| Gain/loss on changes in fair value | 522,447,744.00 | 10.27% | Changes in the fair value of equity investments held by the Company | Not |
| Asset impairments | -3,624,262,580.00 | -71.26% | Inventory valuation allowances established based on market conditions | Not |
| Non-operating income | 216,286,272.00 | 4.25% | N/A | Not |
| Non-operating expense | 61,290,675.00 | 1.21% | N/A | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| Item | 31 December 2024 | 1 January 2024 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 74,252,625,215.00 | 17.27% | 72,467,392,718.00 | 17.29% | -0.02% | N/A |
| Accounts receivable | 36,338,199,204.00 | 8.45% | 33,365,416,490.00 | 7.96% | 0.49% | N/A |
| Contract assets | 150,871,486.00 | 0.04% | 95,710,742.00 | 0.02% | 0.02% | N/A |
| Inventories | 23,313,464,392.00 | 5.42% | 24,119,667,325.00 | 5.75% | -0.33% | N/A |
| Investment property | 1,751,189,740.00 | 0.41% | 1,412,553,446.00 | 0.34% | 0.07% | N/A |
| Long-term equity investments | 13,533,271,302.00 | 3.15% | 13,731,696,627.00 | 3.28% | -0.13% | N/A |
| Fixed assets | 204,904,419,511.00 | 47.65% | 210,371,476,524.00 | 50.19% | -2.54% | N/A |
| Construction in progress | 30,159,016,097.00 | 7.01% | 29,670,115,546.00 | 7.08% | -0.07% | N/A |
| Right-of-use assets | 754,408,280.00 | 0.18% | 724,344,345.00 | 0.17% | 0.01% | N/A |
| Short-term borrowings | 1,563,317,166.00 | 0.36% | 1,746,184,534.00 | 0.42% | -0.06% | N/A |
| Contract liabilities | 2,083,836,158.00 | 0.48% | 3,000,168,620.00 | 0.72% | -0.24% | N/A |
| Long-term borrowings | 100,932,391,740.00 | 23.47% | 121,546,339,022.00 | 29.00% | -5.53% | N/A |
| Lease liabilities | 631,418,986.00 | 0.15% | 542,141,496.00 | 0.13% | 0.02% | N/A |
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
2. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 7,755,964,495.00 | 105,453,958.00 | 0.00 | 0.00 | 34,610,141,406.00 | 39,362,059,712.00 | 0.00 | 3,116,435,963.00 |
| 2.Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Investments in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Investments in other equity instruments | 494,629,577.00 | 0.00 | -228,359,702.00 | 0.00 | 609,769.00 | 9,248,192.00 | 0.00 | 441,371,815.00 |
| 5. Other non-current financial assets | 2,253,778,325.00 | 416,993,786.00 | 0.00 | 0.00 | 64,907,931.00 | 0.00 | 0.00 | 2,735,680,042.00 |
| Subtotal of financial assets | 10,504,372,397.00 | 522,447,744.00 | -228,359,702.00 | 0.00 | 34,675,659,106.00 | 39,371,307,904.00 | 0.00 | 6,293,487,820.00 |
| Investment property | 0.00 | 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 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Receivable financing | 408,534,622.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 64,002,778.00 | 472,537,400.00 |
| Total of the above | 10,912,907,019.00 | 522,447,744.00 | -228,359,702.00 | 0.00 | 34,675,659,106.00 | 39,371,307,904.00 | 64,002,778.00 | 6,766,025,220.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes:
N/A
BOE Technology Group Co., Ltd. Annual Report 2024
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
3. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 1,441,761,424.00 | Mainly security deposits, and amounts put in pledge for the issuance of notes payable |
| Notes receivable | 246,112,676.00 | Endorsed and transferred with right of recourse, and those put in pledge for the issuance of notes payable |
| Fixed assets | 126,896,353,640.00 | As collateral for guarantee |
| Intangible assets | 1,954,974,874.00 | As collateral for guarantee |
| Construction in progress | 11,473,130,082.00 | As collateral for guarantee |
| Investment property | 154,510,137.00 | As collateral for guarantee |
| Other non-current assets | 157,708,950.00 | For other reasons |
| Total | 142,324,551,783.00 | -- |
VII Investments Made
1. Total Investment Amount
? Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | Change (%) |
| 1,343,958,901.00 | 1,116,622,231.00 | 20.36% |
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
? Applicable □ Not applicable
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Funding source |
| Domestic/overseas stock | 600658.SH | BEZ | 90,160,428.00 | Fair value method | 61,450,387.00 | 0.00 | -29,947,297.00 | 0.00 | 0.00 | 0.00 | 60,213,131.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | 01963.HK | Bank of Chongqing | 120,084,375.00 | Fair value method | 90,416,707.00 | 0.00 | 21,766,974.00 | 0.00 | 0.00 | 14,426,109.00 | 141,851,349.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | 01518.HK | New Century Healthcare | 140,848,850.00 | Fair value method | 17,488,274.00 | 0.00 | -120,993,350.00 | 0.00 | 0.00 | 736,773.00 | 19,855,500.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | 09660.HK | Horizon Robot | 31,954,500.00 | Fair value method | 0.00 | 0.00 | 3,683,888.00 | 31,954,500.00 | 0.00 | 0.00 | 35,638,388.00 | Other equity instrumen | Self-funded |
BOE Technology Group Co., Ltd. Annual Report 2024
| ics | t investment | ||||||||||||
| Domestic/overseas stock | 002841.SZ | CVTE | 299,999,939.00 | Fair value method | 202,717,029.00 | -39,205,544.00 | 0.00 | 0.00 | 0.00 | -35,440,040.00 | 163,511,485.00 | Held-for-trading financial assets | Self-funded |
| Domestic/overseas stock | 688720.SH | ASEM | 29,999,976.00 | Fair value method | 58,484,187.00 | -16,143,871.00 | 0.00 | 0.00 | 0.00 | -15,935,166.00 | 42,340,316.00 | Held-for-trading financial assets | Self-funded |
| Domestic/overseas stock | 301611.SZ | Kematek | 17,142,856.00 | Fair value method | 0.00 | 93,773,531.00 | 0.00 | 17,142,856.00 | 0.00 | 93,987,817.00 | 110,916,387.00 | Held-for-trading financial assets | Self-funded |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 730,190,924.00 | -- | 430,556,584.00 | 38,424,116.00 | -125,489,785.00 | 49,097,356.00 | 0.00 | 57,775,493.00 | 574,326,556.00 | -- | -- | ||
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable ? Not applicable
IX Main Controlled and Joint Stock Companies
? Applicable □ Not applicableMain subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, Production, and sales of semi-conductor display device, complete machine, and relevant products; import and export business and technology consulting of goods. | 3,845,200,000 | 43,536,758,549.00 | 32,522,628,192.00 | 15,979,936,109.00 | 3,107,604,188.00 | 2,706,717,461.00 |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 9,750,000,000 | 29,295,199,942.00 | 17,403,709,796.00 | 23,962,849,914.00 | 1,767,499,346.00 | 1,605,231,401.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 2,700,000,000 | 16,249,099,737.00 | 11,326,290,364.00 | 5,305,378,023.00 | 1,023,624,783.00 | 922,803,939.00 |
BOE Technology Group Co., Ltd. Annual Report 2024
Subsidiaries obtained or disposed in this Reporting Period? Applicable □ Not applicable
| Name of subsidiary | How the subsidiary was acquired or disposed of | Effects on the overall operations and performance |
| Chongqing BOE Jingyuan Technology Co., Ltd. and 9 other companies | Incorporated with investment | No significant effects |
| BOE Education Technology Co., Ltd. and 13 other companies | De-registered | No significant effects |
Information about major majority- and minority-owned subsidiaries: N/A
BOE Technology Group Co., Ltd. Annual Report 2024
X Structured Bodies Controlled by the Company
□ Applicable ? Not applicable
XI ProspectsLooking ahead to 2025, with the deep integration of the digital economy and the real economy, the entire industrial chain is acceleratingits upgrade. Technologies such as the Internet of Things, generative AI, cloud computing, and big data are deeply embedded insegmented application scenarios, accelerating the digital transformation process across various industries. In the face of thedevelopment opportunities brought by the digitalisation wave, the Company will continue to adhere to the "Empower IoT with Display"development strategy, fully leverage the core capabilities of "display" and their surrounding technologies, actively integrate into theglobal industrial chain reconstruction process, rely on technological innovation breakthroughs and lean management upgrades,effectively improve operational quality, and continue to strengthen the Company's leading position in the global semiconductor displayindustry. Meanwhile, it will continue to cultivate the core competitiveness of innovative businesses, laying a solid foundation for theCompany's long-term success.
1. "1+4+N+Ecosystem" business development structure
Display Devices business: The Company will actively leverage industry-leading advantages to continuously promote high-qualitydevelopment of the industry. In terms of LCD, it will focus on optimising product structure, accelerating the establishment of aninnovative application market leadership position, and strengthening the layout of high-end products such as ultra-large sizes and ultra-high refresh rates. For OLED, it will focus on technological innovation breakthroughs, accelerate mass production applications ofLTPO, Tandem, and other technologies, maintain the basic business foundation, continuously increase the proportion of high-endproducts, accelerate the development of new application markets, and lead the new display application ecosystem.IoT Innovation business: The Company will focus on the integration of software and hardware, and system design capabilities. It willdevelop AI-powered digital scenario solutions, deeply integrate multimodal AI interaction and large model technologies, and promotecontinuous innovation in business models. At the same time, it will continue to expand strategic customer collaborations, strengthencollaborative innovation with ecosystem partners, deepen the IoT segmented application scenarios, create benchmark projects and coreproducts, further enhance brand influence, and accelerate business scale growth.Sensor business: The Company will deeply focus on core business directions such as FPXD, smart windows, MEMS sensors, andindustrial sensors, continuously optimise product performance and service quality, actively expand into emerging fields such as glass-based packaging substrates, and strive to provide customers with high-performance solutions. In the future, it will consistently adhereto innovation-driven and market-oriented approaches, leading new trends in the industry's development.MLED business: The Company will be committed to becoming a leader in MLED display technology and an industrial developmentpioneer. It will continuously strengthen the collaboration and integration with upstream and downstream resources, continuously enrichthe product mix, enhance product competitiveness, expand applications and expedite the development of business landscape.Smart Engineering Medicine business: The Company will continue to deepen the "construction of a closed-loop service system withhealth management as the core, medical engineering products as the traction, and digital hospitals as the support", strengthen its corecapabilities and accelerate its business development, and build a high-quality development model for digital hospitals."N" business: Relying on the "1+4" capabilities layout, the Company will reach the demand side and market side, continue to deepenadvantageous tracks, and accelerate the landing of scaled application scenarios. At the same time, it will strengthen frontier technologyincubation, promote the rapid growth of core capabilities and the in-depth development of emerging application markets, and help theCompany enter a new era of high-quality and high-speed growth.
BOE Technology Group Co., Ltd. Annual Report 2024
"Ecosystem": The Company will adhere to the concept of "in-depth cooperation, collaborative development and value co-creation",fully integrate key industrial resources, continuously enhance overall value creation capabilities, and work together to build a sharedand win-win development ecosystem.
2. Digital transformation
With the goal of building "one digital and visible BOE," implement a series of digital transformation initiatives with precision anddepth, creating an intelligent decision-making hub. At the same time, strengthen AI technology's empowerment in manufacturing,products, and operations, promote the deep integration of large AI models with actual business operations, and help the enterpriseachieve long-term, stable, and high-quality development.
3. Sustainable development
Fully respond to the national "3060 dual-carbon" strategy, formulate feasible carbon peak targets and implementation pathways, adhereto the green development philosophy, comprehensively promote the green transformation of the industrial chain, strengthen energyconservation and emission reduction, and resource recycling. The Company is committed to building green factories, green products,and a green supply chain. Additionally, through measures such as source decarbonization, process decarbonization, end negative carbon,and intelligent carbon management, the Company will continue to strengthen efficient multi-source integrated utilisation, supply anddistribution scheduling, as well as digital management capabilities, accelerating the establishment of a zero-carbon integrated energyservice system to support long-term sustainable development.
4. Adherence to the "Three Transformations"
Adhere to the "market-oriented, international, and professional" development path: Market-oriented: Guided by market and customerdemand, continuously improve product and service quality. In addition, continually perfect the market-oriented corporate governancemechanism, effectively enhance internal management decision-making efficiency. International: Focus on global industries andmarkets, further optimise the global development strategy, actively participate in global resource allocation on a larger scale, in broaderfields, and at deeper levels. At the same time, maintain sharp insight and forward-looking judgment regarding international politicaland economic environments to promote steady development in the global process. Professional: Continuously strengthen technologicalcapabilities, enhance talent professionalism, and optimise back-end organisational management and service levels, ensuringcompliance and high-quality business operations.XII Communications with the Investment Community such as Researches, Inquiries andInterviews
? Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 9 January 2024 | Beijing BOE Display Technology Co., Ltd. | On-site visit | Institution | SDIC Securities, China Life AMP Asset Management, China Asset Management, Everbright Yongming Asset Management, Minsheng Royal Fund | Main discussions: Answered questions from investors. | www.cninfo.com.cn |
| 9 January 2024 | Conference call | By phone | Institution | PICC Asset Management, Founder Securities | ||
| 15 January 2024 | BOE Core Competence Tower | On-site visit | Institution | PSP Investments | ||
| 16 January 2024 | Conference call | By phone | Institution | Fuh Hwa Securities |
BOE Technology Group Co., Ltd. Annual Report 2024
| Investment Trust, Sinolink Securities | |||||
| 18 January 2024 | BOE Core Competence Tower | On-site visit | Institution | Guotai Leasing | |
| 23 January 2024 | Beijing BOE Display Technology Co., Ltd. | On-site visit | Institution | China Asset Management, Guolian Securities | |
| 29 January 2024 | BOE Core Competence Tower | On-site visit | Institution | Capital Group and 5 other institutions | |
| 22 February 2024 | Chongqing BOE Optoelectronics Technology Co., Ltd., and Chongqing BOE Display Technology Co., Ltd. | On-site visit | Institution | Changjiang Securities and 12 other institutions | Main discussions: 1. Market data of flexible OLED; 2. Introduction and operation status of B12 production line; and 3. Answered questions from investors. |
| 2 April 2024 | http://rs.p5w.net/ | Other | Other | Investors attending BOE's 2023 Annual Results Online Briefing | Main discussions: Answered questions from investors. |
| 2 April 2024 | Conference call | By phone | Institution | Bloomberg Intelligence and 267 other institutions | Main discussions: 1. Industry and market overview; 2. The Company’s operating results; 3. The Company’s operating performance; and 4. Answered questions from investors. |
| 18 April 2024 | BOE Core Competence Tower | On-site visit | Institution | Orient Securities, Orient Fund, HuaAn Fund, CCB Principal Asset Management | Main discussions: Answered questions from investors. |
| 24 April 2024 | BOE Technology Innovation Center | On-site visit | Institution | Balyasny Asset Management, BOCI Prudential Asset Management, Enbao Capital, Citi | |
| 25 April 2024 | BOE Technology Innovation Center | On-site visit | Institution | Huaxia Jiuying, Changjiang Securities | |
| 16 May 2024 | BOE Core Competence Tower | On-site visit | Institution | SDIC Securities, Huashang Fund, Futurus Vessel Capital | Main discussions: Answered questions from investors. |
| 12 June 2024 | BOE Technology Innovation Center | On-site visit | Institution | Fullgoal Fund, CITIC Securities | |
| 9 July 2024 | BOE Core Competence Tower | On-site visit | Institution | Ping An Securities | |
| 17 July 2024 | BOE Core Competence Tower | On-site visit | Institution | Aspex Management, UBS Securities | Main discussions: Answered questions from investors. |
BOE Technology Group Co., Ltd. Annual Report 2024
| 28 August 2024 | http://rs.p5w.net/ | Other | Other | Investors attending BOE's 2024 Interim Results Online Briefing | Main discussions: Answered questions from investors. |
| 28 August 2024 | Conference call | By phone | Institution | Artisan Partners Asset Management Inc. and 154 other institutions | Main discussions: 1. Industry and market overview; 2. The Company’s operating results; 3. Answered questions from investors. |
| 1 November 2024 | Conference call | By phone | Institution | Artisan Partners Asset Management Inc. and 136 other institutions | Main discussions: 1. Industry and market overview; 2. The Company’s operating results; 3. Answered questions from investors. |
| 5 November 2024 | BOE Technology Innovation Center, and Beijing BOE Display Technology Co., Ltd. | On-site visit | Institution | Perseverance Asset Management, Huatai Securities | Main discussions: Answered questions from investors. |
| 12 November 2024 | Conference call | By phone | Institution | CoreView Capital Management Limited | |
| 22 November 2024 | BOE Technology Innovation Center, and Beijing BOE Display Technology Co., Ltd. | On-site visit | Institution | CICC Wealth Management, Pegasus Fund | |
| 26 November 2024 | BOE Core Competence Tower | On-site visit | Institution | AllianceBernstein LP and 28 other institutions | |
| 16 December 2024 | BOE Core Competence Tower | On-site visit | Institution | Ping An Securities |
XIII Formulation and Implementation of Market Value Management Rules and ValuationEnhancement Plan
Indicate whether the Company has formulated market value management rules.? Yes □ NoIndicate whether the Company has disclosed a valuation enhancement plan.
□ Yes ? No
In order to effectively strengthen investment value and enhance investor returns, in accordance with the Company Law, the SecuritiesLaw, Regulatory Guideline No. 10 for Listed Companies—Market Value Management, and other applicable laws and regulations, theCompany has formulated the Market Value Management Rules, which was reviewed and approved at the Fourth Meeting of the 11thBoard of Directors of the Company on 18 April 2025.
BOE Technology Group Co., Ltd. Annual Report 2024
XIV Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”.? Yes □ NoIn adherence to the “investor-centric” ethos of listed entities and to protect the interests of all shareholders, the Company, imbued withconfidence in its future prospects and recognizing its inherent value, released the Action Plan for “Dual Enhancement of Quality andProfitability” on 28 February 2024. This Plan, devised in line with the Company’s overarching strategic blueprint, aims to consistentlybolster its core strengths and elevate both the Company’s quality and investment worth. Here are the specific implementation measures:
1. Adhere to high-quality sustainable development
BOE has always focused on providing intelligent interface products and professional services for information interaction and humanhealth. With years of deep cultivation in the semiconductor display and IoT industries, the Company proactively proposed the"Empower IoT with Display" strategy, which is tailored to the Company's IoT transformation and development. The Company alsoestablished a business development framework of "1+4+N+Ecosystem." Among them, "1" refers to the semiconductor display business,in which the Company will continue to consolidate its leading position and ensure it remains at the forefront of the global industry. "4"represents high-potential business sectors, where many IoT transformation outcomes have emerged, and the Company will focus onbuilding core competitiveness to drive continuous improvement in business quality. "N" points to the diversified segmented businessscenarios, where the Company will continue to explore advantageous sectors, steadily carry out layouts, and create industry benchmarksthat are "specialised, sophisticated, distinctive, and innovative."In the future, the Company will continue to adhere to the "Empower IoT with Display" strategy, using the "1+4+N+Ecosystem"business development framework as the foundation. Based on years of accumulated core capabilities and high-quality resources, theCompany will pursue diversified business layouts, continuously strengthen its leading position in the semiconductor display industry,accelerate innovation business development, maximise resource reuse, and achieve high-quality business growth to provide goodreturns for its shareholders.
2. Uphold "Innovation as the Primary Driver"
The Company consistently prioritises technology and innovation, consistently dedicating approximately 7% of its annual revenue toR&D, with 1.5% allocated specifically to fundamental and frontier tech exploration. As a result, it has emerged as a global front-runnerin semiconductor display R&D investment, establishing a firm groundwork for industry-leading innovation and technologicalsuperiority. Moreover, the Company persistently reinforces its portfolio of high-quality patents, having accumulated more than 100,000independent patent applications. The Company filed over 8,000 new patents in a year, with more than 90% being invention patents andover 33% filed overseas, extending coverage to the U.S., Europe, Japan, South Korea, and other territories across diverse sectors suchas flexible OLED, sensing, AI, big data, etc.. For seven consecutive years, the Company has ranked in the top 20 of the IFI US patentauthorisation list. Moreover, to maintain its technological edge, the Company has built a technology architecture of "Empower IoTwith Display" that is suitable for the transformation and development of its IoT, including device layer, terminal layer, platform layer,and application layer. With a systematic technological innovation capability that integrates software and hardware, provides key supportfor the value extension of its "device - terminal - scenario". Furthermore, it proactively constructs three core technology pillars—semiconductor display, IoT innovation, and sensor devices—and collaborates with partners on key research to hasten the IoTtransformation journey.Looking to the future, the Company will continue to adhere to "Innovation as the Primary Driver," ensuring resource investment in keyareas, deepening industry-academic-research cooperation, focusing on core technologies, and steadily enhancing technologicalcompetitiveness.
3. Maintain "Ethical and Top-Quality Corporate Governance"
To improve the fundamental corporate governance system, the Company continuously establishes and improves internal managementmechanisms in accordance with legal regulations and normative documents. During the reporting period, the Company revised 12
BOE Technology Group Co., Ltd. Annual Report 2024
systems, including the Articles of Association, Rules for Independent Directors, Board Strategy Committee Composition and Rules ofProcedure, and created a new Accounting Firm Selection and Management Measures, further improving the internal system frameworkand providing institutional guarantees for enhancing operational compliance.The Company continues to implement the reform requirements of the rules for independent directors and ensures the performance ofindependent directors. During the reporting period, the Company fully utilised the role of independent directors in decision-making,supervision, and professional consulting by holding independent director meetings, conducting field investigations and visits, andactively organising training for independent directors. These measures helped achieve better implementation of the board's role insetting strategies, making decisions, and mitigating risks.The Company will abide by the principles of “integrity, standardisation, transparency, and responsibility”, regulate itself andcontinuously improve the level of governance to robustly safeguard shareholders’ rights and interests. The management commits toboosting operational and managerial proficiency, continuously enhancing the Company’s core competitiveness, profitability, andoverall risk management capacity, aiming to reward investors and drive the Company’s high-quality growth.
4. Conduct transparent and efficient information disclosure
As of 2024, the Company has achieved nine straight years of Grade A ratings for information disclosure by the Shenzhen StockExchange. Upholding strict adherence to legal and regulatory requirements, the Company abides by the “accuracy, completeness, andtruthfulness” principle in disclosing information, catering to investor needs and actively fulfilling social responsibilities. Havingpublished a social responsibility report (sustainability report) for 15 straight years, the Company bolsters information disclosuretransparency. Moving forward, it will further enhance disclosure quality, effectively communicate corporate value, and strive to providea sound basis for investors’ valuation judgments and interest protection.
5. Contribute to “Coexistence and Win-Win with Investors”
The Company persists in showing gratitude to shareholders for their long-standing support through consistent share repurchases andcash dividends as a way to fulfill its obligations as a public company.During 2024, the Company implemented the 2023 final dividend payout of approximately RMB1.13 billion in cash, representing 44.34%of the net profits attributable to the parent company in the consolidated financial statements. Meanwhile, it repurchased nearly RMB1billion of public shares.The intended 2024 final dividend payout is RMB1.87 billion in cash, representing 35% of the net profits attributable to the parentcompany in the consolidated financial statements.Meanwhile, in order to establish and improve the shareholder return mechanism, actively pay back to investors, effectively protect thelegitimate rights and interests of investors, and guide investors to establish a long-term investment concept, the Company hasformulated the Shareholder Return Plan for the Next Three Years (2025-2027) in accordance with relevant rules and the requirementsof the Articles of Association, taking into account the Company's actual situation.In 2024, the Company persisted in a proactive, professional, and diverse approach to investor relations management. For institutionalinvestors, it maintains close ties with the market through institutional investor visits, securities firms’ investment conferences, reverseroadshows for institutional investors, and 2024 BOE Investor Day, among other means. For small and medium-sized investors, theCompany capitalizes on various platforms, including general meetings of shareholders, online result presentations, Shenzhen StockExchange’s platform at irm.cninfo.com.cn, investor hotline, and IR email address, to engage actively and respond to queries, gatherfeedback, and facilitate rights exercise.
BOE Technology Group Co., Ltd. Annual Report 2024
Part IV Corporate GovernanceI General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting PeriodThe Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance forListed Companies, etc., and requirements of Stock Listing Rules of the Shenzhen Stock Exchange, Guidelines of the Main-Board forthe Standardized Operation of Companies, to continuously improve the corporate governance of the Company, to perfect internalcontrol 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 therequirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectivenessof corporate governance. During the Reporting Period, the Company revised the Articles of Association and continued to promote theCompany’s governance in many ways. Actively arranged the Company's directors, supervisors to join special training organized bythe Securities regulatory bureau of Beijing, and organized on-site research for independent directors. The Company kept regularly self-inspection of the related party fund transaction, external guarantee as well as the shareholding and its changes of the directors,supervisors and senior executives, and strengthened the communication of the investors through the Shenzhen Stock ExchangeInvestors Interactive Platform.In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliancewith 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 General Meetings of Shareholders
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 general meetings of shareholders were in compliance with laws andregulations. The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile, onthe basis of ensuring legitimacy and validity of general meetings of shareholders, actively provided conveniences including internetvoting 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 relevantlaws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and nobehaviors 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 composition of the Board of Directors of the Company was in line with requirements of regulationsand the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They allperformed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept aconstant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They alsotook 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 Articles of Associationand Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors, namely, the
BOE Technology Group Co., Ltd. Annual Report 2024
Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit Committee. TheCompany also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of dutyperformance of the Company’s financial staffs, directors and senior managers. By way of attending general meetings of shareholders,sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevantmatters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior managementstaffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rightsof the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance withthe Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’sactivities 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 Main-Board for theStandardized Operation of Companies, the Articles of Association and Management Methods for Information Disclosure and otherrequirements, the Company disclosed information in a timely and fair manner and ensured the factuality, accuracy and completenessof the information disclosed.The Company highly values investor relations and has set up a specialized investor relations team to consistently execute investorrelations functions with proactive, professional, and diverse strategies.For institutional investors, the Company maintains effective communication channels with diverse types, ensuring persistent marketvisibility. It offers top-notch service through institutional surveys, brokerage strategy sessions, and organized roadshows for institutions.In terms of serving small and medium-sized investors, the Company consistently prioritizes their service and upholds equal treatment.It maintains active interaction and communication with medium and small investors by means of shareholder meetings, onlineperformance presentations, the Shenzhen Stock Exchange’s platform, investor hotlines and investor mailboxes, answers their questions,heeds their suggestions, and facilitates the exercise of their rights. The Company aims to promote the open, transparent, efficient andconsistent communication between the Company, investors and analyst of securities, made them known more about the developmentstrategy, operation conditions and technical achievements of the Company.Meanwhile, the Company has joined hands with a third-party professional IR service agency to conduct investor relations activities viathe digital platform, which makes the communication become more convenient between the investor and the Company and ensures thecompliance and fairness of the investor relations activities.In terms of investor protection, the Company actively responds to the call of the Securities and Futures Commission, the StockExchange and the China Association for Public Companies, and utilizes a blend of online and offline approaches to conduct investoreducation initiatives, consistently enhancing investors’ investment literacy. Key emphasis is placed on fully implementing theregistration system, promoting wise investment decisions, and embodying the social responsibility of listed corporations.
2. During the Reporting Period, the company revised certain corporate governance systems according to its development needs. Therelevant systems have been disclosed on the Cninfo website. Please refer to the table below for specific revisions:
| Disclosure date | System name | New/Revision |
| 2 April 2024 | Rules for Independent Directors | Revision |
| 2 April 2024 | Board of Directors' Strategic Committee Composition and Rules of Procedure | Revision |
| 2 April 2024 | Composition and Rules of Procedure of the Risk Control and Audit Committee of the Board of Directors | Revision |
| 2 April 2024 | Board of Directors' Nomination & Remuneration & Appraisal Committee Composition and Rules of Procedure | Revision |
| 2 April 2024 | External Investment Management Measures | Revision |
| 2 April 2024 | Executive Committee Composition and Rules of Procedure | Revision |
| 27 April 2024 | Articles of Association | Revision |
| 27 April 2024 | Shareholders' Meeting Rules of Procedure | Revision |
BOE Technology Group Co., Ltd. Annual Report 2024
| 27 April 2024 | Rules of Procedure for the Board of Directors | Revision |
| 27 April 2024 | Rules of Procedure for the Board of Directors | Revision |
| 9 July 2024 | Accounting Firm Selection Management Measures | New |
| 15 January 2025 | Articles of Association | Revision |
| 15 January 2025 | Shareholders' Meeting Rules of Procedure | Revision |
| 15 January 2025 | Rules of Procedure for the Board of Directors | Revision |
| 15 January 2025 | Rules of Procedure for the Board of Directors | Revision |
| 15 January 2025 | Board of Directors' Strategic Committee Composition and Rules of Procedure | Revision |
| 15 January 2025 | Board of Directors' Nomination & Remuneration & Appraisal Committee Composition and Rules of Procedure | Revision |
| 15 January 2025 | Executive Committee Composition and Rules of Procedure | Revision |
| 15 January 2025 | Executive Committee Chairman's Working Guidelines | Revision |
| 15 January 2025 | Management System for Professional Managers | Revision |
Indicate by tick mark whether there is any material in-compliance with laws, administrative regulations and the regulatory documentsissued by the CSRC governing the governance of listed companies.
□ Yes ? No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller inBusiness, Personnel, Asset, Organization and Financial AffairsThe 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 andbusiness departments and management system, the Company had the capability to make its own decisions, assume sole responsibilityfor 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 operatingmanagement team. The Chairman of the Executive Committee and 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 ownedthe production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like land userights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any assets of theCompany.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and theactual controller, with independent and sound organs and corporate governance structure. The Company had not handled any officialaffairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the controllingshareholder & 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 hadalso formulated a standard and independent finance accounting system as well as financial measurement system, established thecorporate financial management archives and deployed relevant administrative personnel for them, opened independent account inbank, and paid tax independently.III Horizontal Competition
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
IV Annual and Extraordinary General Meetings of Shareholders Convened during theReporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Meeting resolutions |
| The 2023 Annual General Meeting of Shareholders | Annual General Meeting of Shareholders | 15.88% | 26 April 2024 | 27 April 2024 | The following were reviewed and approved: Report on the Work of the Board of Directors for 2023, Report on the Work of the Supervisory Committee for 2023, Full Annual Report and Summary for 2023, Financial Final Report for 2023 and Business Plan for 2024, Proposal for the Distribution of Profits for 2023, Proposal for Investment in Structured Deposits and Other Capital Protected Instruments, Proposal on Borrowing and Credit Line, Proposal on the Appointment of an Audit Agency for 2024, Proposal on the Repurchase and Retirement of Certain Restricted Shares, Proposal on Changing the Registered Capital of the Company and Amending the Articles of Association and Other Systems, Proposal on Adjusting the Allowances for Independent Directors, Proposal on Revising the Rules of Procedure for the Supervisory Committee, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors |
| The 1st Extraordinary General Meeting of Shareholders in 2024 | Extraordinary General Meeting of Shareholders | 15.83% | 24 July 2024 | 25 July 2024 | The following were reviewed and approved: Proposal on the Company's Eligibility for Public Issuance of Corporate Bonds, Proposal on the Company's Public Issuance of Corporate Bonds, Proposal on Requesting the Shareholders' Meeting to Authorise the Board of Directors to Handle All Matters Related to the Public Issuance of Corporate Bonds, Proposal on the Company's Application for Registration and Issuance of Medium-Term Notes and Ultra-Short-Term Financing Bonds, Proposal on Electing Supervisors of the Tenth Board of Supervisors of the Company |
| The 2nd Extraordinary General Meeting of Shareholders in 2024 | Extraordinary General Meeting of Shareholders | 15.80% | 15 November 2024 | 16 November 2024 | The following were reviewed and approved: Proposal on the Appointment of the 2025 Audit Institution, Proposal on the Repurchase and Retirement of Certain Restricted Shares, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors |
BOE Technology Group Co., Ltd. Annual Report 2024
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preferred Shareholders withResumed Voting Rights
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
V Directors, Supervisors and Senior Management
1. Basic Information
| Name | Gender | Age | Office title | Incumbent/Former | Start of tenure | End of tenure | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Other increase/decrease (share) | Ending shareholding (share) | Reason for change in shareholding |
| Chen Yanshun | Male | 59 | Chairman of the Board | Incumbent | 28 June 2019 | 13 January 2028 | 2,900,000 | 0 | 0 | 0 | 2,900,000 | N/A |
| Chief Strategic Planner | Incumbent | 14 January 2025 | 13 January 2028 | |||||||||
| Chairman of the Executive Committee | Former | 20 May 2016 | 14 January 2025 | |||||||||
| Feng Qiang | Male | 48 | Vice Chairman of the Board | Incumbent | 27 May 2024 | 13 January 2028 | 975,700 | 0 | 0 | 0 | 975,700 | N/A |
| Chairman of the Executive Committee, and Chief Executive Officer (CEO) | Incumbent | 14 January 2025 | 13 January 2028 | |||||||||
| Vice Chairman of the Executive Committee | Former | 24 July 2024 | 14 January 2025 | |||||||||
| Gao Wenbao | Male | 49 | Vice Chairman of the Board | Incumbent | 14 January 2025 | 13 January 2028 | 1,860,700 | 0 | 0 | 0 | 1,860,700 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| President, and Vice Chairman of the Executive Committee | Former | 28 April 2022 | 14 January 2025 | |||||||||
| Wang Xiping | Male | 46 | Director | Incumbent | 26 April 2024 | 13 January 2028 | 852,400 | 0 | 0 | 0 | 852,400 | N/A |
| Vice Chairman of the Executive Committee, and Chief Operating Officer (COO) | Incumbent | 14 January 2025 | 13 January 2028 | |||||||||
| Member of the Executive Committee, and Executive Vice President | Former | 28 April 2022 | 14 January 2025 | |||||||||
| Guo Chuan | Male | 56 | Director | Incumbent | 15 November 2024 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Ye Feng | Male | 59 | Director | Incumbent | 14 December 2021 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Jin Chunyan | Female | 48 | Director | Incumbent | 14 January 2025 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Tang Shoulian | Male | 72 | Independent director | Incumbent | 30 May 2020 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Zhang Xinmin | Male | 62 | Independent director | Incumbent | 18 May 2021 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Guo He | Male | 62 | Independent director | Incumbent | 28 April 2022 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang | Male | 55 | Independent | Incumbent | 28 April 2022 | 13 January | 0 | 0 | 0 | 0 | 0 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Duoxiang | director | 2028 | ||||||||||
| Wang Jin | Female | 49 | Chairman of the Supervisory Committee | Incumbent | 28 April 2022 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Song Ligong | Male | 56 | Supervisor | Incumbent | 24 July 2024 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wei Shuanglai | Male | 57 | Supervisor | Incumbent | 14 January 2025 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
| Xu Yangping | Male | 50 | Employee Supervisor | Incumbent | 10 July 2013 | 13 January 2028 | 35,000 | 0 | 0 | 0 | 35,000 | N/A |
| Yan Jun | Male | 53 | Employee Supervisor | Incumbent | 28 June 2019 | 13 January 2028 | 32,000 | 0 | 0 | 0 | 32,000 | N/A |
| Feng Liqiong | Female | 52 | Member of the Executive Committee, and Executive Vice President | Incumbent | 28 June 2019 | 13 January 2028 | 1,360,000 | 0 | 0 | 0 | 1,360,000 | N/A |
| Chief Counsel | Incumbent | 22 August 2007 | 13 January 2028 | |||||||||
| Yang Xiaoping | Female | 45 | Member of the Executive Committee, and Executive Vice President | Incumbent | 31 March 2023 | 13 January 2028 | 742,300 | 0 | 0 | 0 | 742,300 | N/A |
| Chief Financial Officer (CFO) | Incumbent | 28 April 2022 | 13 January 2028 | |||||||||
| Liu Zhiqiang | Male | 43 | Member of the Executive | Incumbent | 24 July 2024 | 13 January 2028 | 247,500 | 0 | 0 | 0 | 247,500 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Committee, and Senior Vice President | ||||||||||||
| Liu Jing | Male | 44 | Member of the Executive Committee | Incumbent | 29 October 2024 | 13 January 2028 | 425,920 | 0 | 0 | 0 | 425,920 | N/A |
| Senior Vice President | Incumbent | 14 January 2025 | 13 January 2028 | |||||||||
| Vice President | Former | 29 October 2024 | 14 January 2025 | |||||||||
| Yun Xiangnan | Male | 42 | Member of the Executive Committee | Incumbent | 29 October 2024 | 13 January 2028 | 518,500 | 0 | 0 | 0 | 518,500 | N/A |
| Senior Vice President | Incumbent | 14 January 2025 | 13 January 2028 | |||||||||
| Vice President | Former | 29 October 2024 | 14 January 2025 | |||||||||
| Jiang Xingqun | Male | 47 | Member of the Executive Committee, and Senior Vice President | Incumbent | 14 January 2025 | 13 January 2028 | 724,200 | 0 | 0 | 0 | 724,200 | N/A |
| Qi Zheng | Male | 42 | Member of the Executive Committee, and Senior Vice President | Incumbent | 14 January 2025 | 13 January 2028 | 741,600 | 0 | 0 | 0 | 741,600 | N/A |
| Guo Huaping | Male | 47 | Senior Vice President, and Chief Culture Officer | Incumbent | 31 March 2023 | 13 January 2028 | 0 | 0 | 0 | 0 | 0 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Yue Zhanqiu | Male | 57 | Senior Vice President, and Chief Audit Officer | Incumbent | 28 April 2023 | 13 January 2028 | 553,440 | 0 | 0 | 0 | 553,440 | N/A |
| Guo Hong | Female | 35 | Vice President, and Board Secretary | Incumbent | 14 January 2025 | 13 January 2028 | 428,500 | 0 | 0 | 0 | 428,500 | N/A |
| Pan Jinfeng | Male | 44 | Vice Chairman of the Board | Former | 28 June 2019 | 23 January 2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Fuqing | Male | 51 | Supervisor | Former | 14 December 2021 | 12 June 2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Zhu Baocheng | Male | 51 | Vice Chairman of the Board | Former | 27 May 2024 | 8 July 2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Liu Xiaodong | Male | 60 | Vice Chairman of the Board | Former | 28 June 2019 | 12 March 2024 | 2,480,000 | 0 | 0 | 0 | 2,480,000 | N/A |
| Member of the Executive Committee | Former | 30 October 2007 | 24 July 2024 | |||||||||
| Zhang Yu | Male | 54 | Member of the Executive Committee, and Executive Vice President | Former | 28 April 2022 | 20 September 2024 | 751,600 | 0 | 0 | -209,220 | 542,380 |
TheCompanyrepurchasedand retiredtherestrictedshares heldby him inaccordancewith the2020 StockOption andRestrictedShareIncentive
BOE Technology Group Co., Ltd. Annual Report 2024
| Plan (Draft). | ||||||||||||
| Wu Lishun | Male | 49 | Director | Former | 14 August 2023 | 15 October 2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Yun | Female | 55 | Director | Former | 9 June 2017 | 12 March 2024 | 1,989,481 | 0 | 0 | 0 | 1,989,481 | N/A |
| Member of the Executive Committee, and Executive Vice President | Former | 26 December 2014 | 14 January 2025 | |||||||||
| Shi Xiaodong | Male | 50 | Supervisor | Former | 28 April 2022 | 14 January 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Xu Jinghe | Female | 41 | Supervisor | Former | 28 April 2022 | 14 January 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Teng Jiao | Male | 42 | Employee Supervisor | Former | 28 June 2019 | 14 January 2025 | 55,200 | 0 | 0 | 0 | 55,200 | N/A |
| Liu Hongfeng | Male | 46 | Vice President | Former | 20 May 2016 | 14 January 2025 | 1,024,500 | 0 | 0 | 0 | 1,024,500 | N/A |
| Board Secretary | Former | 10 July 2013 | 14 January 2025 | |||||||||
| Total | -- | -- | -- | -- | -- | -- | 18,698,541 | 0 | 0 | -209,220 | 18,489,321 | -- |
Note: On 24 July 2024, at the First Extraordinary General Meeting of Shareholders in 2024, Mr. Song Ligong was elected as a supervisor of the Company's 10th Supervisory Committee. TheBoard of Directors appointed Mr. Liu Zhiqiang as a senior executive of the Company. On 29 October 2024, the Board of Directors appointed Mr. Liu Jing and Mr. Yun Xiangnan as seniorexecutives of the Company. On 15 November 2024, at the Second Extraordinary General Meeting of Shareholders in 2024, Mr. Guo Chuan was elected as a director of the Company's 10th Boardof Directors. On 14 January 2025, at the First Extraordinary General Meeting of Shareholders in 2025, Ms. Jin Chunyan was elected as a director of the Company's 11th Board of Directors, andMr. Wei Shuanglai was elected as a supervisor of the Company's 11th Supervisory Committee. The Board of Directors appointed Mr. Jiang Xingqun, Mr. Qi Zheng, and Ms. Guo Hong as seniorexecutives of the Company. The initial shareholding of the above personnel will be listed based on their shareholding as of their appointment date.Indicate by tick mark whether any director, supervisor or senior management resigned before the expiry of their office terms during the Reporting Period.? Yes □ No
1. On 23 January 2024, the Board of Directors received the written resignation letter from Mr. Pan Jinfeng, the Vice Chairman of the Board, who requested to resign from his position as directorand Vice Chairman of the Company due to job changes. After his resignation, he will no longer hold any position in the Company.
BOE Technology Group Co., Ltd. Annual Report 2024
2. On 12 March 2024, the Board of Directors received written resignation letters from Mr. Liu Xiaodong, Vice Chairman of the Board, and Ms. Sun Yun, a director of the Board. Due to agereasons, Mr. Liu Xiaodong requested to resign from his position as director, Vice Chairman, and member of the Board's special committees. After his resignation, he will continue to serve as amember of the Executive Committee. Ms. Sun Yun requested to resign from her position as director and member of the Board's special committees. After her resignation, she will continue toserve as a member of the Executive Committee and as Executive Vice President.
3. On 12 June 2024, the Supervisory Committee received a written resignation letter from Mr. Sun Fuqing, a supervisor, who requested to resign from his supervisory position due to workadjustments. After his resignation, he will no longer hold any position in the Company.
4. On 8 July 2024, the Board of Directors received a written resignation letter from Mr. Zhu Baocheng, the Vice Chairman, who requested to resign from his position as director and Vice Chairmanof the Company due to job changes. After his resignation, he will no longer hold any position in the Company.
5. On 24 July 2024, the Board of Directors received a written resignation letter from Mr. Liu Xiaodong, a senior executive, who requested to resign from his position as a member of the ExecutiveCommittee due to age reasons. After his resignation, he will continue to serve in the Company, focusing on major project development and related matters.
6. On 20 September 2024, the Board of Directors received a written resignation letter from Mr. Zhang Yu, a senior executive, who requested to resign from his position as a member of theExecutive Committee and Executive Vice President due to work relocation. After his resignation, he will no longer hold any position in the Company.
7. On 15 October 2024, the Board of Directors received a written resignation letter from Mr. Wu Lishun, a director, who requested to resign from his position as director and his positions in theBoard's special committees due to work arrangements. After his resignation, he will no longer hold any position in the Company.
BOE Technology Group Co., Ltd. Annual Report 2024
Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Pan Jinfeng | Vice Chairman of the Board | Resignation | 23 January 2024 | Reassignment |
| Liu Xiaodong | Vice Chairman of the Board | Resignation | 12 March 2024 | Personal reasons |
| Senior management | Dismissal | 24 July 2024 | Personal reasons | |
| Sun Yun | Director | Resignation | 12 March 2024 | Personal reasons |
| Senior management | Resignation upon expiration of term | 14 January 2025 | Change of term | |
| Sun Fuqing | Supervisor | Resignation | 12 June 2024 | Reassignment |
| Zhu Baocheng | Director | Resignation | 8 July 2024 | Reassignment |
| Zhang Yu | Senior management | Dismissal | 20 September 2024 | Reassignment |
| Wu Lishun | Director | Resignation | 15 October 2024 | Reassignment |
| Shi Xiaodong | Supervisor | Resignation upon expiration of term | 14 January 2025 | Change of term |
| Xu Jinghe | Supervisor | Resignation upon expiration of term | 14 January 2025 | Change of term |
| Teng Jiao | Employee Supervisor | Resignation upon expiration of term | 14 January 2025 | Change of term |
| Liu Hongfeng | Senior management | Resignation upon expiration of term | 14 January 2025 | Change of term |
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and seniormanagementDirectors:
Mr. Chen Yanshun, Master of Economics, Senior Economist, and Senior Accountant. Joining the Company in 1993, he used to beSecretary to the 1st Board of Directors of the Company, Secretary to the 2nd Board of Directors and Vice President, Executive Directorof the 3rd Board of Directors and Senior Vice President, Executive Director of the 4th, 5th and 6th Boards of Directors and President,Vice Chairman of the 7th Board of Directors and President, Vice Chairman of the 8th Board of Directors and Chairman of the ExecutiveCommittee (Chief Executive Officer), Chairman of the 9th Board of Directors and Chairman of the Executive Committee, andChairman of the 10th Board of Directors and Chairman of the Executive Committee. Also, he once was Chairman of the Board for anumber of subsidiaries including Beijing BOE Optoelectronics Technology Co., Ltd., Hefei BOE Optoelectronics Technology Co.,Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., and BOE Smart Technology Co., Ltd.Currently, he serves as Chairman of the 11th Board of Directors and Chief Strategic Planner of the Company. He is also Chairman ofthe Board for BOE Optoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd. Meanwhile, he is also ViceChairman of China Information Technology Industry Federation (CITIF), Vice Chairman of China Optics & OptoelectronicsManufactures Association (COEMA), Chairman of China Optics & Optoelectronics Manufactures Association LCB (CODA). He hasbeen awarded as National Model Worker in 2020, the Economic Figure of the Year by China News Weekly in 2021, and David SarnoffIndustry Achievement Award in 2024.
Mr. Feng Qiang, Master of Executive Master of Business Administration, Master of Engineering, Engineer. He joined the Companyin 1998 and has served as the Deputy General Manager and General Manager of the Company's Science Park Business Headquarters,Vice President of the Company, Chairman of BOE Regenerative Medicine Technologies Co., Ltd., Executive Director and ExecutiveDeputy General Manager of Beijing BOE Real Estate Co., Ltd., Executive Director and Executive Deputy General Manager of Beijing
BOE Technology Group Co., Ltd. Annual Report 2024
Yinghe Century Co., Ltd., General Manager of Beijing Matsushita Colour CRT Co., Ltd., Co-CEO of the Smart Healthcare ServiceBG, Chairman and CEO of Smart Engineering Medicine business, Member of the Company's Executive Committee, Executive VicePresident, Chief Human Resource Officer, and Vice Chairman of the 10th Board of Directors and Vice Chairman of the ExecutiveCommittee.He is currently serving as Vice Chairman of the 11th Board of Directors, Chairman of the Executive Committee, and Chief ExecutiveOfficer (CEO) of the Company. He is also Chairman of Beijing BOE Life Technology Co., Ltd., Chairman of Beijing BOE Real EstateCo., Ltd., Chairman of Beijing Yinghe Century Co., Ltd., and Chairman of Beijing BOE Songcai Innovation Co., Ltd.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003. He has served as ProductTechnology Section Chief, Department Head, Technical Deputy Director, and Executive Deputy General Manager of Beijing BOEOptoelectronics Technology Co., Ltd., General Manager of TPC SBU, General Manager of Chongqing BOE Display Technology Co.,Ltd., Chairman of Beijing Zhongxiangying Technology Co., Ltd., Director of the Company's 9th Board of Directors, Member of theExecutive Committee, Executive Vice President, Director of the Company's 10th Board of Directors, President, and Vice Chairman ofthe Executive Committee.He is currently serving as Vice Chairman of the Company's 11th Board of Directors and Executive Director and Chairman of BOEVaritronix Limited.
Mr. Wang Xiping, Bachelor's degree. He has served as the manager of Nanjing Hanyu Caixin Technology Co., Ltd., and has heldpositions such as the head of the Production Management Centre, General Manager of Hefei Xinsheng Optoelectronics TechnologyCo., Ltd., General Manager of Wuhan BOE Optoelectronics Technology Co., Ltd., Co-CEO of the Display Business, ChiefProcurement Officer, Head of the Middle Office, Director of the Company's 10th Board of Directors, Committee Member of theExecutive Committee, and Executive Vice President.He is currently serving as a Director of the 11th Board of Directors, Vice Chairman of the Executive Committee, and Chief OperatingOfficer (COO) of the Company, in addition to being CEO of the New Materials Business. He is also Chairman of Beijing BOEOptoelectronic Technology Co., Ltd., Chairman of Beijing BOE Materials Technology Co., Ltd., and Director of BOE InnovationInvestment Co., Ltd.
Mr. Guo Chuan, Master's degree, Level 2 Lawyer. He has served as the Director of the Board Secretary Office, Head of the LegalAffairs Department, Board Secretary, General Counsel, Deputy General Manager, and Director of Beijing Beichen Industrial Co., Ltd.He is currently serving as a Director of the Company's 11th Board of Directors, Deputy Secretary of the Party Committee, Director,and General Manager of Beijing State-owned Capital Operation and Management Company Limited, Director of China ResourcesPharmaceutical Group Limited, Chairman and General Manager of Beijing Jingguorui Investment Management Co., Ltd., andChairman of Beijing Jingguan Tai Fu Fund Management Co., Ltd.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong Machinery Factory,a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice President of BeijingBeiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of Beijing Dahua RadioInstrument Company, Ltd., and Director of the 9th Board of Directors of the Company.He is currently a Director of the 11th Board of Directors, a full-time Director assigned by Beijing Electronic Holding Co., Ltd., aDirector of Beijing Zhaowei Electronics (Group) Co., Ltd., a Director of NAURA Technology Group, and a Director of Beijing NorthComputing Power Zhilian Technology Co., Ltd.
BOE Technology Group Co., Ltd. Annual Report 2024
Ms. Jin Chunyan, MBA in Business Administration, Senior Executive. She has served as the Deputy Head of the FinancialManagement Department of Beijing Jianzhong Machinery Factory, Deputy General Manager of Beijing 798 Cultural and CreativeIndustry Investment Co., Ltd., Deputy Head of the Planning and Finance Department, Head of the Audit and Supervision Department,and Chief Auditor of Beijing Qixing Huadian Technology Group Co., Ltd., Deputy Director of the Investment Securities Department,Deputy Director of the Capital Operations Department, and Director of Beijing Electronics Holdings Co., Ltd.She is currently serving as a Director of the Company's 11th Board of Directors, Director of the Investment Management Departmentof Beijing Electronics Holdings Co., Ltd., Director of BEHC Industrial Investment Co., Ltd., Director of Beijing 798 CultureTechnology Co., Ltd., Director of Beijing YanDong MicroElectronic Co., Ltd., Supervisor of Beijing Electric Control IntegratedCircuit Manufacturing Co., Ltd., and Supervisor of Beijing Guoxin Juyuan Technology Co., Ltd.
Mr. Tang Shoulian, professor, holds a master's degree. He used to be Director of Finance Office, Dean of School of Management andHumanities, Secretary of Party Committee of School of Economics and Management, Executive Dean of School of Economics andManagement, and Standing Committee of Academic Committee and Chairman of Labor Dispute Mediation Committee of BeijingUniversity of Posts and Telecommunications (BUPT), and Independent Director of the 9th and 10th Board of Directors of the Company.He has served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry and InformationTechnology, a permanent member of the Chinese Association of Market Development, a standing member of the Information LawResearch Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, a standing member ofthe Commerce Statistical Society of China, and a reviewer of the Management Science Department of the National Natural ScienceFoundation of China.He is currently an Independent Director of the 11th Board of Directors of the Company.
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of the Universityof International Business and Economics, a member of CPC’s Standing Committee and Vice President of the University of InternationalBusiness and Economics, and Independent Director of the 9th and 10th Board of Directors of the Company.He is currently an Independent Director of the 11th Board of Directors of the Company, an Independent Director of MinmetalsDevelopment Co., Ltd., an Independent Director of COFCO Capital Holdings Co., Ltd., an Independent Director of Neusoft MedicalSystems Co., Ltd., an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoral supervisor ofthe International Business School at the University of International Business and Economics, a member of the Business AdministrationDiscipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the China CommercialAccounting Institute, Vice President of Banking Accounting Society of China, and a recipient who enjoys special allowance from theState Council.
Mr. Guo He, a professor and PhD supervisor at the School of Law / School of Intellectual Property of Renmin University of China.He was formerly an Independent Director of the 10th Board of Directors of the Company.He currently serves as an Independent Director of the 11th Board of Directors of the Company, and an Independent Non-executiveDirector of Shanxi Installation Group Co., Ltd. He also serves as the Vice President of the China Intellectual Property ResearchAssociation, the Executive Vice President of the Intellectual Property Law Research Association of the China Law Society, the VicePresident of China Written Works Copyright Society, etc.
Mr. Wang Duoxiang, Doctor of Management, is a researcher and doctoral supervisor at the School of Engineering, Peking University.He was the General Manager of Xiamen PKU Taipu Pharmaceutical Co., Ltd., Chairman of Xiamen Tobefar Technology Co., Ltd.,the Deputy Director of the College of Engineering of Peking University, the Deputy Mayor of Baotou Municipal People's Governmentof Inner Mongolia, the Vice President of Southern University of Science and Technology, the Director of the Beijing Institute of
BOE Technology Group Co., Ltd. Annual Report 2024
Collaborative Innovation, and an Independent Director of the 10th Board of Directors of the Company.He currently serves as an Independent Director of the 11th Board of Directors of the Company, a researcher of the College ofEngineering of Peking University, the Director of the Beijing-Tianjin-Hebei National Technology Innovation Centre, the President ofHuangpu Innovation College, and an Independent Director of Zhongguancun Bank.
Supervisors:
Ms. Wang Jin, Doctor of Laws, a senior economist. She was the Deputy General Manager of the Legal and Risk ManagementDepartment, the Deputy General Manager of the Legal Department and the Deputy General Manager of the Corporate DevelopmentDepartment/Legal Department of Beijing Branch of China United Network Communications Group Co., Ltd., and the Chairman of the10th Supervisory Committee of the Company.She currently serves as the Chairman of the 11th Supervisory Committee of the Company and the general counsel of Beijing ElectronicsHoldings Co., Ltd. She is concurrently the Chairman of the Supervisory Committee of NAURA Technology Group Co., Ltd., Directorof Beijing Yiheng Electronics Group Co., Ltd., and Director of Beijing ether Electronics Group Co., Ltd.
Mr. Song Ligong, Senior Accountant, MBA in Business Administration. He has served as a Senior Officer of China Aviation IndustryCorporation, Chief Accountant of Beijing Radio Factory, General Manager, Vice Chairman, and Deputy Secretary of the PartyCommittee of Beijing Beiguang Technology Co., Ltd., Director of the Safety and Environmental Protection Department of BeijingElectronics Holdings Co., Ltd., and Supervisor of the Company's 10th Supervisory Committee.He is currently serving as a Supervisor of the Company's 11th Supervisory Committee, Director of the Financial ManagementDepartment of Beijing Electronics Holdings Co., Ltd., and concurrently holds positions as Director of NAURA Technology Group Co.,Ltd., Executive Director and General Manager of Beijing BOE Investment & Development Co., Ltd., Director of Beijing Capitel Co.,Ltd., Executive Director and General Manager of Beijing Guoxin Juyuan Technology Co., Ltd., and Director of Beijing Electronic CityHigh Tech Group Co., Ltd.
Mr. Wei Shuanglai, MBA in Business Administration, Senior Engineer, Senior Economist. He has served as a Supervisor of theCompany's 9th Supervisory Committee, Staff Member of Beijing BBEF Electronics Group Co., Ltd., Deputy Director of theTechnology Centre and Director of the General Office of Beijing Beiguang Digital Broadcasting and Television Co., Ltd., Assistant tothe President and Head of the TV Department, Executive President and Strategic Director, Deputy General Manager and ExecutivePresident, Deputy Secretary of the Party Committee, Director, and General Manager of Beijing Beiguang Technology Co., Ltd., DeputyGeneral Manager of Beijing C & W Electronics (Group) Co., Ltd., Vice Head of the Technology Industry Department, Head of theMarket Department, Director of the Intelligent Equipment and Systems Business Unit, Director of the Operations ManagementDepartment, and Director of the Special Business Department of Beijing Electronics Holdings Co., Ltd.He is currently serving as a Supervisor of the Company's 11th Supervisory Committee, Director of the Safety and EnvironmentalProtection Department of Beijing Electronics Holdings Co., Ltd., and concurrently holds positions as Director of Beijing C & WElectronics (Group) Co., Ltd., Director of Beijing Dahua Radio Instrument Co., Ltd., Director of Beijing Zhengdong Electronic PowerGroup Co., Ltd., and Director of Beijing 798 Cultural Technology Co., Ltd.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s LegalDepartment, and Employee Supervisor of the 7th, 8th, 9th, and 10th Supervisory Committees of the Company, Director of Erdos BOEEnergy Investment Co., Ltd., and Supervisor of BOE Innovation Investment Co., Ltd.,.Now he acts as Employee Supervisor of the 11th Supervisory Committee and Counsel of the Company, and Chief of the Group’s LegalCenter, in addition to being Director of Gaochuang (Suzhou) Electronics Co., Ltd, Beijing BOE Energy Technology Co., Ltd., NanjingBOE Display Technology Co., Ltd., BEHC Industrial Investment Co., Ltd., Supervisor of Tianjin BOE Innovation Investment
BOE Technology Group Co., Ltd. Annual Report 2024
Management Co., Ltd., BOE Smart Technology Co., Ltd., BOE Jingxin Technology Co., Ltd., and Hefei BOE Ruisheng TechnologyCo., Ltd., among others.
Mr. Yan Jun, Bachelor's degree. He has served as the Deputy General Manager of Beijing Nissin Electronic Precision ComponentsCo., Ltd., Head of the Corporate Culture/Party Affairs Department of Chongqing BOE Optoelectronics Technology Co., Ltd.,Chairman of the Trade Union, Deputy Director of General Office of the Group, and Employee Supervisor of the Company's 9th and10th Supervisory Committees.He is currently serving as an Employee Supervisor of the Company's 11th Supervisory Committee and Deputy Director of the Partyand Corporate Culture Centre of the Group.
Senior Management:
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of LegalAffairs Department of the Company, and as Secretary of the 5th and 6th Board of Directors.Now she is a member of the Executive Committee, Executive Vice President, and Chief Counsel of the Company. She is also a Directorof Beijing BOE Land Co., Ltd. and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Ms. Yang Xiaoping, with a Master's degree, was the Deputy Director and Director of the Accounting and Finance Department of theCompany, the Centre Director of the Accounting and Taxation Centre, the Center Director of the Budget Center and the VCFO of theGroup.She is currently a member of the Executive Committee, Executive Vice President, and the Chief Financial Officer of the Company anda Director of Hefei BOE Optoelectronics Technology Co., Ltd. and Beijing BOE Display Technology Co., Ltd., etc.
Mr. Liu Zhiqiang, Bachelor's degree. He has served as the General Manager and Chairman of Hefei BOE Optoelectronics TechnologyCo., Ltd., Chairman of Ordos Yuansheng Optoelectronics Co., Ltd., Chairman of BOE (Hebei) Mobile Display Technology Co., Ltd.,Project Director of Qingdao BOE Optoelectronics Technology Co., Ltd., and General Manager of Nanjing BOE Display TechnologyCo., Ltd.He is currently serving as a Member of the Executive Committee and Senior Vice President, Chief Product Officer, Chief TechnologyOfficer, and Head of the Technology and Product Middle Office.
Mr. Liu Jing, Master's degree. He has served as the Deputy General Manager of Hefei Xinsheng Optoelectronics Technology Co.,Ltd., Project Director and General Manager of Hefei BOE Display Technology Co., Ltd., Deputy Head of the Chief Change and ITManagement Officer Organisation, Head of the Display Devices and IoT Innovation Business Middle Office Planning and Operations,and Deputy Head of the Front Office for Display Devices and IoT Innovation Business.He is currently serving as a Member of the Executive Committee and Senior Vice President, Head of the Front Office for DisplayDevices and IoT Innovation Business.
Mr. Yun Xiangnan, Bachelor's degree. He has served as the General Manager of Fuzhou BOE Optoelectronics Technology Co., Ltd.,Deputy Head of the Chief Change and IT Management Officer Organisation, Deputy Head of the Group's Performance ManagementCentre, etc.He is currently serving as a Member of the Executive Committee and Senior Vice President, Head of the Display Devices and IoTInnovation Business Middle Office.
BOE Technology Group Co., Ltd. Annual Report 2024
Mr. Jiang Xingqun, Ph.D. He has served as the Dean of the BOE IoT and Artificial Intelligence Research Institute, Chief TechnologyOfficer of Smart Systems, and Chief Technology Officer of IoT Solutions, among other positions.He is currently serving as a Member of the Executive Committee and Senior Vice President, Co-Chief Technology Officer, and ChiefTechnology Officer of Smart IoT.
Mr. Qi Zheng, Master's degree. He has served as the Head of the Technology Department of Beijing BOE Optoelectronics TechnologyCo., Ltd., Director of the Group Office of BOE Technology Group Co., Ltd., and Co-Chief Strategy Officer of the Group.He is currently serving as a Member of the Executive Committee, Senior Vice President, and Chief Strategy Officer of the Company.He is also Director of Chengdu BOE Display Technology Co., Ltd., and Director of Nanjing BOE Display Technology Co., Ltd.
Mr. Guo Huaping, holds a master’s degree. He once worked as the Vice General Manager of Beijing 798 Cultural Creative IndustryInvestment Co., Ltd., Deputy Secretary of the CPC Committee of Beijing Jile Electronics Group Co., Ltd., the Director of the CPCPublicity Department/Corporate Culture Department of Beijing Electronics Holdings Co., Ltd., and the General Manager of BeijingJingdian Import and Export Co., Ltd.He is currently a Senior Vice President, Chief Culture Officer and President of the Labor Union of the Company.
Mr. Yue Zhanqiu, holding a Master’s degree and certified as a Senior Accountant, has served as the Chief of Finance Section andChief Accountant of the Power Division of the Company, Finance Manager of Beijing Huamin Smart Card System Manufacturing Co.,Ltd., CFO of Beijing Sevenstar Science & Technology Co., Ltd., CFO and Board Secretary of Beijing Sevenstar Electronics Co., Ltd.,CFO, Deputy General Manager, and General Manager of Beijing Oriental Optoelectronics Technology Co., Ltd., as well as VCFO,Chief Information Officer, and Chief Operating Officer of Beijing BOE Optoelectronics Technology Co., Ltd., VCFO and CIO of theCompany, and COO of BOE Innovation Investment Co., Ltd.Currently, he serves as Senior Vice President and Chief Audit Officer of the Company, Supervisor of BOE HC Semitek Corporation,Supervisor of Chengdu BOE Optoelectronics Technology Co., Ltd., Supervisor of Chongqing BOE Display Technology Co., Ltd.,Supervisor of Hefei BOE Display Technology Co., Ltd., Supervisor of Chengdu BOE Display Technology Co., Ltd., Supervisor ofBOE Healthcare Co., Ltd., Supervisor of Fuzhou BOE Optoelectronics Technology Co., Ltd., and Supervisor of Nanjing BOE DisplayTechnology Co., Ltd.
Ms. Guo Hong, a Master’s degree holder, was formerly the MNT SBU Sales Director and Deputy General Manager of the DisplayDevices and IoT Innovation Businesses, and the Director of the Marketing and Strategic Planning Center of the Company, as well asthe Director of the Market Insight Center, and the Deputy Director of the Board Secretary’s Office of the Group.She is currently a Vice President and the Secretary to the 11th Board of Directors of the Company.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
| Name | Shareholding entity | Office held in the shareholding entity | Start of tenure | End of tenure | Remuneration or allowance from the shareholding entity |
| Guo Chuan | Beijing State-owned Capital Operation and Management Company Limited | Deputy Secretary of the Party Committee, Director, and General | January 2024 | - | Yes |
BOE Technology Group Co., Ltd. Annual Report 2024
| Manager | |||||
| Ye Feng | Beijing Electronics Holdings Co., Ltd. | Full-time Director Dispatched | 31 August 2021 | - | Yes |
| Jin Chunyan | Beijing Electronics Holdings Co., Ltd. | Director of the Investment Management Department | November 2023 | - | Yes |
| Wang Jin | Beijing Electronics Holdings Co., Ltd. | General Counsel | 1 February 2021 | - | Yes |
| Song Ligong | Beijing Electronics Holdings Co., Ltd. | Director of the Financial Management Department | May 2024 | - | Yes |
| Wei Shuanglai | Beijing Electronics Holdings Co., Ltd. | Director of the Safety and Environmental Protection Department | May 2024 | - | Yes |
| Notes to post-holding in shareholder’s unit | The documents for holding the posts of shareholders entities haven’t listed the expiry date. | ||||
Offices held concurrently in other entities:
? Applicable □ Not applicable
| Name | Other entity | Office held in the entity | Start of tenure | End of tenure | Remuneration or allowance from the entity |
| Zhang Xinmin | University of International Business and Economics | Professor, and Doctor Advisor | - | - | Yes |
| Guo He | Renmin University of China | Professor, and Doctor Advisor | - | - | Yes |
| Wang Duoxiang | College of Engineering(COE), PKU | Researcher, and Doctor Advisor | - | - | Yes |
| Notes to post-holding in other entities | Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed. | ||||
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who left in the Reporting Period:
□ Applicable ? Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior ManagementThe Proposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1
stExtraordinary GeneralMeeting of Shareholders in 2019 held by the Company on 28 June 2019. The allowance for the Company’s executive directors andemployee supervisors as well as directors and supervisors holding posts in shareholder’s unit was cancelled. The Proposal onAdjustment of Allowance for Independent Directors was reviewed and approved on the 2023 Annual General Meeting of Shareholdersheld by the Company on 26 April 2024, according to which, the allowance for independent directors was adjusted to RMB300,000(pre-tax) per year from RMB200,000 (pre-tax) per year.
(2) During the Reporting Period, the total remuneration received by directors, supervisors and senior managers in the Companyamounted to RMB63.9520 million (pre-tax). Further information is provided in the table below.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
BOE Technology Group Co., Ltd. Annual Report 2024
| Name | Gender | Age | Office title | Incumbent/Former | Total pre-tax remuneration received from the Company | Any remuneration from related party |
| Chen Yanshun | Male | 59 | Chairman of the Board, and Chief Strategic Planner | Incumbent | 587.41 | No |
| Chairman of the Executive Committee | Former | |||||
| Feng Qiang | Male | 48 | Vice Chairman of the Board, Chairman of the Executive Committee, and Chief Executive Officer (CEO) | Incumbent | 575.00 | No |
| Gao Wenbao | Male | 49 | Vice Chairman of the Board | Incumbent | 680.00 | No |
| President, and Vice Chairman of the Executive Committee | Former | |||||
| Wang Xiping | Male | 46 | Director, Vice Chairman of the Executive Committee, and Chief Operating Officer (COO) | Incumbent | 534.80 | No |
| Guo Chuan | Male | 56 | Director | Incumbent | 0.00 | Yes |
| Ye Feng | Male | 59 | Director | Incumbent | 0.00 | Yes |
| Tang Shoulian | Male | 72 | Independent director | Incumbent | 26.78 | No |
| Zhang Xinmin | Male | 62 | Independent director | Incumbent | 26.78 | No |
| Guo He | Male | 62 | Independent director | Incumbent | 26.78 | No |
| Wang Duoxiang | Male | 55 | Independent director | Incumbent | 26.78 | No |
| Wang Jin | Female | 49 | Chairman of the Supervisory Committee | Incumbent | 0.00 | Yes |
| Song Ligong | Male | 56 | Supervisor | Incumbent | 0.00 | Yes |
| Xu Yangping | Male | 50 | Employee Supervisor | Incumbent | 178.59 | No |
| Yan Jun | Male | 53 | Employee Supervisor | Incumbent | 64.85 | No |
| Feng Liqiong | Female | 52 | Member of the Executive Committee, Executive Vice President, and Chief Counsel | Incumbent | 499.55 | No |
| Yang Xiaoping | Female | 45 | Member of the Executive Committee, Executive Vice President, and Chief Financial Officer (CFO) | Incumbent | 431.72 | No |
| Liu Zhiqiang | Male | 43 | Member of the Executive Committee, and Senior Vice President | Incumbent | 165.67 | No |
| Liu Jing | Male | 44 | Member of the Executive Committee, and Senior Vice President | Incumbent | 57.98 | No |
| Yun Xiangnan | Male | 42 | Member of the Executive Committee, and Senior Vice President | Incumbent | 59.72 | No |
| Guo Huaping | Male | 47 | Senior Vice President, and Chief Culture Officer | Incumbent | 272.88 | No |
| Yue Zhanqiu | Male | 57 | Senior Vice President, and Chief Audit Officer | Incumbent | 317.28 | No |
| Pan Jinfeng | Male | 44 | Vice Chairman of the Board | Former | 0.00 | Yes |
| Zhu Baocheng | Male | 51 | Vice Chairman of the Board | Former | 0.00 | Yes |
| Liu Xiaodong | Male | 60 | Vice Chairman of the Board, and senior management | Former | 410.94 | No |
| Wu Lishun | Male | 49 | Director | Former | 0.00 | Yes |
| Sun Yun | Female | 55 | Director, and senior management | Former | 652.70 | No |
| Sun Fuqing | Male | 51 | Supervisor | Former | 0.00 | Yes |
BOE Technology Group Co., Ltd. Annual Report 2024
| Shi Xiaodong | Male | 50 | Supervisor | Former | 0.00 | Yes |
| Xu Jinghe | Female | 41 | Supervisor | Former | 0.00 | No |
| Teng Jiao | Male | 42 | Employee Supervisor | Former | 224.75 | No |
| Zhang Yu | Male | 54 | Senior management | Former | 112.86 | No |
| Liu Hongfeng | Male | 46 | Senior management | Former | 461.38 | No |
| Total | -- | -- | -- | -- | 6,395.20 | -- |
Notes: 1. According to the reporting rules, the disclosed total remuneration amounts represent the annual cash remuneration attributedto the current period based on accrual. Note that for some directors and supervisors, the total remuneration amounts provided areestimates as their appraisals are still ongoing.
2. The Company held the 32nd meeting of the 10th Board of Directors on 24 July 2024, where Mr. Liu Zhiqiang was appointed as amember of the Executive Committee and Senior Vice President. The Company held the 38th meeting of the 10th Board of Directorson 29 October 2024, where Mr. Liu Jing was appointed as a member of the Executive Committee and Vice President, and Mr. YunXiangnan was appointed as a member of the Executive Committee and Vice President. The table above discloses the total pre-taxremuneration received by Mr. Liu Zhiqiang, Mr. Liu Jing, and Mr. Yun Xiangnan during their tenure as senior executives of theCompany.
3. Mr. Liu Xiaodong resigned from his position as Director, Vice Chairman of the Board, and member of the Board's special committeeson 12 March 2024 due to age reasons, and he also resigned from his position as a member of the Executive Committee on 24 July 2024.After resigning, he continues to serve in the Company, responsible for advancing major projects and related matters. The table abovediscloses the total pre-tax remuneration received by him during his tenure as a Director and senior executive of the Company. Mr.Zhang Yu resigned from his position as a member of the Executive Committee and Executive Vice President on 20 September 2024due to a job relocation. The table above discloses the total pre-tax remuneration received by him during his tenure as a senior executiveof the Company.Other notes:
□ Applicable ? Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
| Meeting | Date of the meeting | Disclosure date | Meeting resolutions |
| The 26th Meeting of the 10th Board of Directors | 5 February 2024 | - | The following were reviewed and approved: Proposal on External Donations, Proposal on Project Cooperation Agreement to be Signed by Subsidiaries and Related Transactions |
| The 27th Meeting of the 10th Board of Directors | 18 March 2024 | - | The following were reviewed and approved: Proposal on the 2024 Executive Committee Chairman's Remuneration and Assessment |
| The 28th Meeting of the 10th Board of Directors | 29 March 2024 | 2 April 2024 | The following were reviewed and approved: 2023 Business Work Report, Report on the Work of the Board of Directors for 2023, Full Annual Report and Summary for 2023, Financial Final Report for 2023 and Business Plan for 2024, Proposal for the Distribution of Profits for 2023, Special Explanation on Non-operating Fund Occupation and Other Related Transactions for 2023, Proposal on the Expected 2024 Daily Related Transactions, 2023 Special Report on the Storage and Actual Use of Raised Funds, Proposal for Investment in Structured Deposits and Other Capital Protected Instruments, Proposal on Borrowing and Credit Line, Proposal on the Appointment of an Audit Agency for 2024, 2023 Internal Control Self-Assessment Report, |
BOE Technology Group Co., Ltd. Annual Report 2024
| 2023 Sustainable Development Report, Proposal on the Achievement of the Conditions for Release of Restricted Shares during the Second Release Period of the Restricted Shares Granted under the 2020 Stock Option and Restricted Share Incentive Plan and the Meeting of the Second Exercise Period of the First Granted Stock Options Fulfilment of the Conditions for the Exercise of the Option, Proposal on the Repurchase and Retirement of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Special Report on the Self-assessment of Independent Directors' Independence, Report on the 2023 Annual Audit Firm's Performance and the Supervision of Their Duties, Proposal on Changing the Registered Capital of the Company and Amending the Articles of Association and Other Systems, Proposal on Revising Corporate Governance Systems, Proposal on Adjusting the Allowances for Independent Directors, Proposal for Authorising the Chairman of the Board to Exercise his/her Powers, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors, Proposal on Convening the 2023 Annual Shareholders' Meeting | |||
| The 29th Meeting of the 10th Board of Directors | 29 April 2024 | 30 April 2024 | The following were reviewed and approved: Proposal on the 2024 Q1 Report |
| The 30th Meeting of the 10th Board of Directors | 27 May 2024 | 28 May 2024 |
The following were reviewed and approved: Proposal onthe Election of Vice Chairman of the Tenth Board ofDirectors, Proposal on the Composition of the 10th Boardof Directors' Strategic Committee
| The 31st Meeting of the 10th Board of Directors | 8 July 2024 | 9 July 2024 | The following were reviewed and approved: Proposal on the Methods for the Administration of Appointment of CPA Firm, Proposal on the Company's Eligibility for Public Issuance of Corporate Bonds, Proposal on the Company's Public Issuance of Corporate Bonds, Proposal on Requesting the Shareholders' Meeting to Authorise the Board of Directors to Handle All Matters Related to the Public Issuance of Corporate Bonds, Proposal on the Company's Application for Registration and Issuance of Medium-Term Notes and Ultra-Short-Term Financing Bonds, Proposal on Convening the 2024 First Extraordinary Shareholders' Meeting |
| The 32nd Meeting of the 10th Board of Directors | 24 July 2024 | 25 July 2024 | The following were reviewed and approved: Proposal on Adjusting the Composition of the Executive Committee and Appointing Senior Management Personnel |
| The 33rd Meeting of the 10th Board of Directors | 9 August 2024 | - | The following were reviewed and approved: Proposal on the 2024 Restricted Stock Incentive Plan for Subsidiaries |
| The 34th Meeting of the 10th Board of Directors | 26 August 2024 | 28 August 2024 | The following were reviewed and approved: Proposal on the Full Text and Summary of the 2024 Semi-Annual Report, Proposal on the 2024 Semi-Annual Non-operating Fund Occupation and Other Related Transaction Summary Table, Proposal on Continuing to Provide Guarantee for Subsidiary Loan Replacement, Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, Proposal on Achieving the Conditions for the Second Exercise Period of the Reserved Stock Options under the |
BOE Technology Group Co., Ltd. Annual Report 2024
| 2020 Stock Option and Restricted Stock Incentive Plan | |||
| The 35th Meeting of the 10th Board of Directors | 3 September 2024 | - | The following were reviewed and approved: Proposal on the 2023 Remuneration and Assessment Results of the Executive Committee Chairman and the 2024 Income Benchmark Level, Proposal on Sponsoring the 2024 Zhongguancun Forum |
| The 36th Meeting of the 10th Board of Directors | 18 September 2024 | - | The following were reviewed and approved: Proposal on Investing in the Expansion Project of Subsidiary |
| The 37th Meeting of the 10th Board of Directors | 9 October 2024 | - | The following were reviewed and approved: Proposal on the Share Transfer of the Original Shareholders of the Invested Subsidiary and the Company Waiving Its Right of First Refusal and Related Transactions, Proposal on Selling Some Stocks of Subsidiary |
| The 38th Meeting of the 10th Board of Directors | 29 October 2024 | 31 October 2024 | The following were reviewed and approved Proposal on the 2024 Q3 Report, Proposal on Appointing the 2025 Audit Institution, Proposal on the Repurchase and Retirement of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on the Proposal for the Controlling Subsidiary to Apply for Listing on the National SME Share Transfer System, Proposal on the Repurchase of Certain Public Shares of the Company, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors, Proposal on the Appointment of Senior Managers of the Company, Proposal on Convening the 2024 Second Extraordinary Shareholders' Meeting |
| The 39th Meeting of the 10th Board of Directors | 15 November 2024 | 16 November 2024 | The following were reviewed and approved: Proposal on Investing in Beijing Electric Control Integrated Circuit Manufacturing Co., Ltd. and Related Transactions |
| The 40th Meeting of the 10th Board of Directors | 12 December 2024 | - | The following were reviewed and approved: Proposal on Increasing the Expected Daily Related Transactions for 2024 |
| The 41st Meeting of the 10th Board of Directors | 23 December 2024 | 24 December 2024 | The following were reviewed and approved: Proposal on Changing the Registered Capital of the Company and Amending the Articles of Association and Other Systems, Proposal on the Election of the Board of Directors, Proposal on Purchasing Liability Insurance for Directors, Supervisors, and Senior Management, Proposal on Electric Control Industrial Investment's Investment in the Second Phase of Xianzhi Chain Fund and Xianzhi Chain Enterprise Management Centre and Related Transactions, Proposal on Continuing to Provide Guarantee for Subsidiary Loan Replacement, Proposal on Convening the 2025 First Extraordinary Shareholders' Meeting |
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
| Attendance of directors at board meetings and general meetings of shareholders | |||||||
| Director | Total number of board meetings the director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings | General meetings of shareholders attended |
BOE Technology Group Co., Ltd. Annual Report 2024
| (yes/no) | |||||||
| Chen Yanshun | 16 | 2 | 14 | 0 | 0 | No | 3 |
| Feng Qiang | 13 | 2 | 11 | 0 | 0 | No | 2 |
| Gao Wenbao | 16 | 3 | 13 | 0 | 0 | No | 3 |
| Wang Xiping | 13 | 2 | 11 | 0 | 0 | No | 2 |
| Guo Chuan | 2 | 0 | 2 | 0 | 0 | No | 0 |
| Ye Feng | 16 | 2 | 14 | 0 | 0 | No | 3 |
| Tang Shoulian | 16 | 3 | 13 | 0 | 0 | No | 3 |
| Zhang Xinmin | 16 | 3 | 13 | 0 | 0 | No | 3 |
| Guo He | 16 | 3 | 13 | 0 | 0 | No | 2 |
| Wang Duoxiang | 16 | 3 | 13 | 0 | 0 | No | 2 |
| Liu Xiaodong | 1 | 0 | 1 | 0 | 0 | No | 0 |
| Sun Yun | 1 | 0 | 1 | 0 | 0 | No | 0 |
| Zhu Baocheng | 3 | 0 | 3 | 0 | 0 | No | 0 |
| Wu Lishun | 12 | 0 | 12 | 0 | 0 | No | 0 |
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.?Yes □ NoSuggestions from directors adopted or not adopted by the CompanyThe Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of theCompany to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governancestructure. The Company's Board of Directors has a reasonable structure and a moderate number of people. All of them are equippedwith good professional background, and necessary knowledge, skills and quality to fulfill their responsibilities. They learned about andkept a constant focus on BOE’s production and operation, financial status, and influence and risks of significant events. They also tookthe 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. The executive directors of the Company are responsible for the operations management of theCompany. They understand the business and operational status of the Company, and with rich management experience, they can makedecisions efficiently. Non-executive directors are shareholder directors. As the communication bridge between shareholders and themanagement of the Company, they can combine the suggestions of shareholders with long-term interests of the Company, andparticipate in the decision-making process of significant events of the Company to protect the interests of shareholders. Independentdirectors are experts and scholars in the fields of technology, finance, law, and etc. They can express their opinions and views accordingto their expertise and advantages. During the Reporting Period, in accordance with Company Law, Securities Law, Measures forAdministration of Independent Directors of Listed Companies, Stock Listing Rules, Articles of Association, Rules of Procedure for the
BOE Technology Group Co., Ltd. Annual Report 2024
Board of Directors and Independent Director Policy, directors of the Company paid special attention to the standardized operation ofthe Company, performed their duties diligently, issued much precious professional advice in terms of the perfection of policies androutine operating decision-making, etc., as well as played their due roles in perfecting the supervisory mechanism of the Company,protecting the legal right of the Company and the whole shareholders.
VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
| Committee | Members | Number of meetings convened | Convened date | Content | Important opinions and suggestions raised | Other information about the performance of duty | Details about issues with objections (if any) |
| Strategy Committee under the 10th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Liu Xiaodong, Ms. Sun Yun, Mr. Gao Wenbao | 2 | 25 January 2024 | Review the proposals that need to be submitted to the Board of Directors for approval and approve the Company's medium- and long-term strategic plan. | No objection | - | N/A |
| 7 March 2024 | No objection | - | N/A | ||||
| Strategy Committee under the 10th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Gao Wenbao | 3 | 19 March 2024 | No objection | - | N/A | |
| 19 April 2024 | No objection | - | N/A | ||||
| 17 May 2024 | No objection | - | N/A | ||||
| Strategy Committee under the 10th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Feng Qiang, Mr. Gao Wenbao, Mr. Wang Xiping | 12 | 27 June 2024 | No objection | - | N/A | |
| 12 July 2024 | No objection | - | N/A | ||||
| 30 July 2024 | No objection | - | N/A | ||||
| 16 August 2024 | No objection | - | N/A | ||||
| 23 August 2024 | No objection | - | N/A | ||||
| 6 September 2024 | No objection | - | N/A | ||||
| 25 September 2024 | No objection | - | N/A | ||||
| 18 October 2024 | No objection | - | N/A | ||||
| 5 November 2024 | No objection | - | N/A | ||||
| 2 December 2024 | No objection | - | N/A | ||||
| 13 December 2024 | No objection | - | N/A | ||||
| 26 December 2024 | No objection | - | N/A | ||||
| Risk Control and Audit Committee under the 10th Board of Directors | Convener (Director): Mr. Zhang Xinmin; Members: Mr. Tang Shoulian, Mr. Guo He, Mr. Wang Duoxiang, Mr. Ye Feng | 7 | 24 January 2024 | Review the financial accounting statements prepared by the Company, the Report on the Audit Work of CPAs for Annual Audit, and related materials, and the 2023 Risk Management and | No objection | - | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Audit Work Summary; review the 2024 audit plan | |||||||
| 18 March 2024 | Review the following proposals: 2023 Financial Accounting Report, 2023 Internal Control Self-Assessment Report, Proposal on the Appointment of an Audit Agency for 2024, 2023 Special Report on the Storage and Actual Use of Raised Funds 2023 Performance Report of the Accounting Firm | No objection | - | N/A | |||
| 19 April 2024 | Review the Proposal on the 2024 Q1 Report | No objection | - | N/A | |||
| 21 June 2024 | Review the proposals on the following: Proposal on the Methods for the Administration of Appointment of CPA Firm, Proposal on the Detailed Rules for the Implementation of Methods for the Administration of Appointment of CPA Firm | No objection | - | N/A | |||
| 13 August 2024 | Review the Proposal on the 2024 Semi-Annual Report | No objection | - | N/A | |||
| 18 October 2024 | Review the proposals on the following: 2024 Q3 Report, Proposal on the Appointment of the 2025 Audit Institution | No objection | - | N/A | |||
| 27 December 2024 | Review the Proposal on the Appointment of the Company's Chief Financial Officer | No objection | - | N/A | |||
| Nomination & Remuneration & Appraisal Committee under the 10th Board of Directors | Convener (Director): Mr. Guo He; Members: Mr. Wu Lishun, Mr. Tang Shoulian, Mr. Zhang Xinmin, Mr. Wang Duoxiang | 4 | 7 March 2024 | Review the Proposal on the 2024 Executive Committee Chairman's Remuneration and Assessment | No objection | - | N/A |
| 18 March 2024 | Review the proposals on the following: Proposal on the Achievement of the Conditions for Release of Restricted Shares during the Second Release Period of the Restricted Shares Granted under the 2020 Stock Option and Restricted Share Incentive Plan and the Meeting of the Second Exercise Period of the First Granted Stock Options Fulfilment of the Conditions for the Exercise of the Option, Proposal on the Repurchase and | No objection | - | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
| Retirement of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on Adjusting the Allowances for Independent Directors, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors | |||||||
| 12 July 2024 | Review the Proposal on Adjusting the Composition of the Executive Committee and Appointing Senior Management Personnel | No objection | - | N/A | |||
| 16 August 2024 | Review the proposals on the following: Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, Achievement of the Conditions for the Second Exercise Period of the Reserved Stock Options under the 2020 Stock Option and Restricted Stock Incentive Plan, Proposal on the Waiver of the First Exercise Period of Reserved Stock Options, Proposal on the 2023 Remuneration and Assessment Results of the Executive Committee Chairman and the 2024 Income Benchmark Level | No objection | - | N/A | |||
| Nomination & Remuneration & Appraisal Committee under the 10th Board of Directors | Convener (Director): Mr. Guo He; Members: Mr. Tang Shoulian, Mr. Zhang Xinmin, Mr. Wang Duoxiang | 3 | 18 October 2024 | Review the following proposals: Proposal on the Repurchase and Retirement of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on Electing Non-Independent Directors for the Tenth Board of Directors, Proposal on the Appointment of Senior Managers of the Company | No objection | - | N/A |
| 13 December 2024 | Review the following proposals: Proposal on the Election of the Board of Directors, Proposal on Purchasing Liability Insurance for Directors, Supervisors, and Senior Executives, Proposal on the Waiver of the Second Exercise Period of the Stock Options Granted for the First Time | No objection | - | N/A | |||
| 27 December 2024 | Review the following proposals: Proposal on the | No objection | - | N/A |
BOE Technology Group Co., Ltd. Annual Report 2024
Appointment of SeniorManagers of theCompany, Proposal on theAppointment of theCompany's SecuritiesAffairs Representative
VIII Performance of Duty by the Supervisory CommitteeIndicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□Yes ? No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent at the period-end | 2,479 |
| Number of in-service employees of major subsidiaries at the period-end | 61,262 |
| Total number of in-service employees | 99,100 |
| Total number of paid employees in the Reporting Period | 99,100 |
| Number of retirees to whom the Company as the parent or its major subsidiaries need to pay retirement pensions | 19 |
| Functions | |
| Function | Employees |
| Production | 63,587 |
| Sales | 2,888 |
| Technical | 28,390 |
| Financial | 916 |
| Administrative | 301 |
| Manager | 2,084 |
| Other | 934 |
| Total | 99,100 |
| Educational backgrounds | |
| Educational background | Employees |
| Doctor | 390 |
| Master | 10,142 |
| Bachelor | 24,705 |
| College | 30,907 |
| Technical secondary school | 12,268 |
| Other | 20,688 |
| Total | 99,100 |
BOE Technology Group Co., Ltd. Annual Report 2024
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to theexternal competitive compensation and internal fairness, strengthening the control of the group as well as considering the differenceamong all business and subsidiaries.
3. Employee Training Plans
As a professional organization for talent training, BOE University (BOEU) conveys the Group's strategic requirements to employees,as well as facilitates the implementation of such requirements, through education and training, in order to promote the construction ofBOE's talent training system. Meanwhile, BOEU continues to promote talent cultivation in terms of mindset renewal, cognitivedevelopment, and ability improvement, so as to promote talent cultivation and intellectual capital appreciation, export cultural valueand influence, facilitate the achievement of strategic goals, and play a positive role in value promotion, requirement implementationand talent cultivation.In 2024, BOEU prioritized its three main values—cultivation & empowerment, intellectual capital buildup, and innovation &optimization—while focusing on its “ensuring delivery, system construction, consolidating internal strength, and deep collaboration”approach. It pushed forward its innovation and transformation strategy, expedited the development of a digital learning model, andempowered key talents to enhance the abilities of cadres and staff to tackle challenges. Throughout the year, BOEU delivered over440,000 hours of training to cater to diverse skill-enhancement needs for leaders, managers, professionals, and industrialists, offeringrich, varied training formats and expertly curated courses.
4. Labor Outsourcing
□ Applicable ? Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□ Applicable ? Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that theCompany has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders arepositive.
□Applicable ? Not applicable
Final dividend plan for the Reporting Period? Applicable □ Not applicable
| Bonus shares for every 10 shares (share) | 0 |
| Dividend for every 10 shares (RMB) (tax inclusive) | 0.5 |
| Total shares as the basis for the profit distribution proposal (share) | 37,416,133,303 |
| Cash dividends (RMB) (tax inclusive) | 1,870,806,665.15 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 0.00 |
| Total cash dividends (including those in other forms) (RMB) | 1,870,806,665.15 |
| Attributable profit (RMB) | 8,758,843,050.00 |
| Total cash dividends (including those in other forms) as % of | 100% |
BOE Technology Group Co., Ltd. Annual Report 2024
| total profit distribution (%) | |
| 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 | |
| Based on the total shares of 37,416,133,303 (exclusive of the repurchased shares held in a special account), the Company planned to distribute, with the undistributed profit, a cash dividend of RMB0.5 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted into share capital. If the total share capital of the Company changes due to factors such as the conversion of convertible bonds to shares, share repurchases, the exercise of rights regarding equity incentives, and the listing of increased shares after refinancing before the implementation of the distribution scheme, the adjustment will be conducted according to the principle of "the distribution amount will be adjusted with a fixed distribution ratio". The specific distributed amount shall be subject to the actual distributed amount. The said proposal is in compliance with the Company’s Articles of Association and relevant approval procedure, which fully protects the legal rights and interests of the minority investors. | |
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees? Applicable □ Not applicable
1. Equity incentives
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Sharesto Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory Committee, theCompany disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted StockIncentive Scheme (Announcement No. 2020-086) on 30 December 2020. Following the approval of the Proposal on the Awarding ofReserved Stock Options to Incentive Objects at the 31st Meeting of the 9th Board of Directors and the 13th Meeting of the 9thSupervisory Committee, the Company disclosed the Announcement on Completion of Registration of the Reserved and Granted StockOption of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2021-084) on 23 October 2021.The Company disclosed the Announcement on the Achievement of Lifting the Restriction Conditions in the Second Lifting RestrictionPeriod for Restricted Stocks Granted by the 2020 Stock Option and Restricted Stock Incentive Scheme and on the Satisfaction of theExercise Conditions of the First Exercise Schedule of the Second Granted Stock Option (Announcement No.: 2024-015) on 2 April2024. The lifting of the restriction conditions in the second lifting restriction period for restricted stocks granted by the 2020 StockOption and Restricted Stock Incentive Scheme of the Company has been achieved, and the first exercise schedule of the second grantedstock option has satisfied the exercise conditions. A total of 716 awardees met the conditions for the lifting of the restrictions, resultingin a total of 95,859,475 shares of restricted stock that could be lifted. A total of 1,718 awardees were eligible for stock option exercise,resulting in a total of 168,428,195 shares of stock options available for exercise. The Company disclosed the Announcement on theRepurchase and Write-off of Certain Restricted Stocks (Announcement No.: 2024-016) and the Announcement on the Write-off ofCertain Stock Options (Announcement No.: 2024-017) on 2 April 2024, in which the Company intends to repurchase and cancel2,547,779 restricted shares and 186,818,174 shares of stock option that have been granted to incentive objects but have not beenexercised by them since some incentive objects resigned, passed away, retired, and failed to meet the performance appraisal goals forpersonal reasons. Moreover, the above-mentioned matters regarding the repurchase and cancelation of restricted stocks weredeliberated and approved in the Annual General Meeting of Shareholders of 2023 held on 26 April 2024. The Company disclosed theReminder Announcement on Release and Circulation of Restricted Shares Granted under the 2020 Stock Option and Restricted Stock
BOE Technology Group Co., Ltd. Annual Report 2024
Incentive Scheme in the Second Release Period (Announcement No.: 2024-021) on 10 April 2024. The total number of incentive targetswho meet the conditions for releasing the restricted shares is 716, and the number of restricted shares that can be released is 95,859,475shares, accounting for 0.2546% of the total share capital of the Company at present. The listing date for the lifted restricted stocks is11 April 2024. The Company disclosed the Announcement on Adjustment of the Exercise Price of the Stock Option and the RestrictedShare Repurchase Price in the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2024-047) on 28 August 2024. Since the equity distribution of the Company for 2023 has been completed, the restricted stock repurchaseprice involved in this incentive scheme is adjusted from RMB2.349/share to RMB2.319/share, the exercise price of the first grant ofthe stock option is adjusted from RMB5.059/share to RMB5.029/share, and the exercise price of the reserved and granted stock optionis adjusted from RMB5.559/share to RMB5.529/share. The Company disclosed the Announcement on the Achievement of the ExerciseConditions for the Second Exercise Period of the Stock Options Reserved for Grant under the 2020 Stock Option and Restricted StockIncentive Plan (Announcement No. 2024-048) on 28 August 2024, and the conditions for the exercise of the second exercise period ofthe stock options reserved for grant under the 2020 Stock Option and Restricted Stock Incentive Plan of the Company were met, and atotal of 83 incentive recipients who met the conditions for the exercise of options were eligible to exercise the options this time. Thetotal number of incentive recipients meeting the conditions for the exercise of options is 83, and the number of stock options exercisableis 8,116,020. On 31 October 2024, the Company disclosed the Repurchase and Write-off of Certain Restricted Stocks (AnnouncementNo. 2024-058) and the Announcement on the Write-off of Certain Stock Options (Announcement No. 2024-059). Due to personalreasons and other factors, some of the incentive targets left the Company. The Company plans to repurchase and cancel 4,965,213restricted stocks and 20,684,045 stock options that have been granted but not exercised. On 15 November 2024, the Company held theSecond Extraordinary General Meeting of Shareholders in 2024, where the repurchase and cancellation of the restricted stocks wasapproved.
BOE Technology Group Co., Ltd. Annual Report 2024
Equity incentives for directors and senior management in the Reporting Period:
? Applicable □ Not applicable
Unit: share
| Name | Office title | Share options held at the period-begin | Share options granted in the Reporting Period | Shares feasible to exercise during the Reporting Period | Shares exercised during the Reporting Period | Exercise price of exercised shares during the Reporting Period (RMB/share) | Share options held at the period-end | Market price at the period-end (RMB/share) | Number of restricted shares held at the period-begin | Number of released shares for the Reporting Period | Number of restricted shares newly granted during the Reporting Period | The grant price of restricted shares (RMB/share) | Number of restricted shares held at the period-end |
| Chen Yanshun | Chairman of the Board, and Chief Strategic Planner | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 1,320,000 | 660,000 | 0 | 0 | 660,000 |
| Feng Qiang | Vice Chairman of the Board, Chairman of the Executive Committee, and Chief Executive Officer (CEO) | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 495,000 | 247,500 | 0 | 0 | 247,500 |
| Gao Wenbao | Vice Chairman of the Board | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 990,000 | 495,000 | 0 | 0 | 495,000 |
| Wang Xiping | Director, Vice Chairman of the Executive Committee, and Chief Operating Officer (COO) | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 495,000 | 247,500 | 0 | 0 | 247,500 |
| Feng Liqiong | Member of the Executive Committee, Executive Vice President, and Chief Counsel | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 660,000 | 330,000 | 0 | 0 | 330,000 |
| Yang Xiaoping | Member of the Executive Committee, Executive Vice President, and Chief Financial Officer (CFO) | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 418,440 | 209,220 | 0 | 0 | 209,220 |
| Liu Zhiqiang | Member of the Executive Committee, and Senior | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 247,500 | 0 | 0 | 0 | 247,500 |
BOE Technology Group Co., Ltd. Annual Report 2024
| Vice President | |||||||||||||
| Liu Jing | Member of the Executive Committee, and Senior Vice President | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 209,220 | 0 | 0 | 0 | 209,220 |
| Yun Xiangnan | Member of the Executive Committee, and Senior Vice President | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 209,220 | 0 | 0 | 0 | 209,220 |
| Guo Huaping | Senior Vice President, and Chief Culture Officer | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 0 | 0 | 0 | 0 | 0 |
| Yue Zhanqiu | Senior Vice President, and Chief Audit Officer | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 418,440 | 209,220 | 0 | 0 | 209,220 |
| Liu Xiaodong | Former director and senior management | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 1,188,000 | 594,000 | 0 | 0 | 594,000 |
| Sun Yun | Former director and senior management | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 990,000 | 495,000 | 0 | 0 | 495,000 |
| Zhang Yu | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 418,440 | 209,220 | 0 | 0 | 0 |
| Liu Hongfeng | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 4.39 | 495,000 | 247,500 | 0 | 0 | 247,500 |
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 8,554,260 | 3,944,160 | 0 | -- | 4,400,880 |
| Note (if any) | 1. On 24 July 2024, the Board of Directors engaged Mr. Liu Zhiqiang as senior management of the Company; on 29 October 2024, the Board of Directors engaged Mr. Liu Jing and Mr. Yun Xiangnan as senior management of the Company. Thus, the number of restricted shares held at the period-begin of Mr. Liu Zhiqiang, Mr. Liu Jing and Mr. Yun Xiangnan shall be filled in with the number of restricted shares held on the date of appointment. 2. The lifting of the restriction conditions in the second lifting restriction period for restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company has been achieved. The listing date is 11 April 2024. The above lifting of the restrictions resulted in a reduction in the number of restricted shares granted to directors and senior management at the end of the Reporting Period. After the lifting of certain restricted shares held by the Company’s directors and senior management in this incentive scheme, the locking and trading of shares held by them shall comply with the Company Law, the Securities Law, the Management Rules for Shares Held by Directors and Senior Management of Listed Companies and Changes in Such Shares, the Standardised Operation of the Companies Listed on the Mainboard, the Guidelines No. 10 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Management of Share Changes, and other the relevant laws and regulations. 3. Mr. Zhang Yu resigned from the senior management of the Company on 20 September 2024 and will no longer hold any position in the Company after his resignation. On 9 December 2024, the Company repurchased and cancelled the restricted shares held by Mr. Zhang Yu which had been granted but not lifted in accordance with the provisions of the 2020 Stock Option and Restricted Stock Incentive Scheme (Draft). | ||||||||||||
Appraisal of and Incentive for Senior ManagementAccording to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company areappointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment willbe implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets, and the appointment period
BOE Technology Group Co., Ltd. Annual Report 2024
assessment is based on medium- and long-term targets, and the salary and rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option andRestricted Stock Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement of relevantconditions.
BOE Technology Group Co., Ltd. Annual Report 2024
2. Implementation of Employee Stock Ownership Plans
□Applicable ? Not applicable
3. Other Incentive Measures for Employees
□Applicable ? Not applicable
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
In line with the reform, the establishment of internal control regulation was enhanced according to the requirements for theestablishment of internal control regulation of listed companies and the Company’s strategic requirements. Specifically, the internalcontrol system was optimized, so as to guarantee the implementation of innovation and reform and promote the compliance and efficientdevelopment of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes ? No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
| Subsidiary | Integration plan | Integration progress | Problem | Countermeasures taken | Settlement progress | Follow-up settlement plan |
| N/A | — | — | — | — | — | — |
XIV Internal Control Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Evaluation Report
| Disclosure date of the internal control self-evaluation report | 22 April 2025 | |
| Index to the disclosed internal control self-evaluation report | On 22 April 2025, the Company disclosed 2024 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details. | |
| Evaluated entities’ combined assets as % of consolidated total assets | 99.87% | |
| Evaluated entities’ combined operating revenue as % of consolidated operating revenue | 99.90% | |
| Identification standards for internal control weaknesses | ||
| Type | Weaknesses in internal control over financial reporting | Weaknesses in internal control not related to financial reporting |
| Nature standard | The nature standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: In case of the following situations, it will be deemed as that major defects (including but not limited to the following situations) may occur: (1) Directors, supervisors and Senior Management make the malpractices; | Evaluation standards for internal defects not related to financial reporting specified by the Company are as below: Material weakness: (1) The business scope of the Company violates national laws and regulations seriously; (2) The decision-making procedure is not scientific, major decision errors are released, the development strategies of the Company |
BOE Technology Group Co., Ltd. Annual Report 2024
| (2) The enterprise corrects the released financial statements; (3) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the process of operation; (4) Supervision of the risk control and audit committee and the internal audit organization for internal control is ineffective. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the real and accurate objective of the financial report. The common weakness refers to other internal control weaknesses except for material weaknesses and serious weaknesses. | are deviated from severely and major property losses are caused for the Company; (3) Safety and environmental accidents occur, resulting in major negative effects on the Company; (4) A lot of senior management personnel and key technicians leave the Company; (5) Important business lacks system control or the system is failure; (6) Material weaknesses or serious weaknesses are not corrected. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the enterprise to deviate from the control goal. The common weakness refers to other internal control defects except for material weaknesses and Serious weakness. | |
| Quantitative standard | The quantitative standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: The amount reported incorrectly is ≥1‰* total amount of assets of the Group (operating revenue) Serious weakness: 0.5‰*total amount of assets of the Group (operating revenue)≤ the amount reported incorrectly<1‰*total amount of assets of the Group (operating revenue) Common weakness: The amount reported incorrectly <0.5‰*total group assets (operating revenue) | The quantitative standards for internal control defects not related to financial reporting determined by the Company are consistent with those over the financial reporting. See the left side for details. |
| Number of material weaknesses in internal control over financial reporting | 0 | |
| Number of material weaknesses in internal control not related to financial reporting | 0 | |
| Number of serious weaknesses in internal control over financial reporting | 0 | |
| Number of serious weaknesses in internal control not related to financial reporting | 0 | |
2. Independent Auditor’s Report on Internal Control
? Applicable □ Not applicable
| Opinion paragraph in the independent 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 31 December 2024 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations. | |
| Independent auditor’s report on internal control disclosed or not | Disclosed |
| Disclosure date | 22 April 2025 |
| Index to such report disclosed | The Company disclosed the Audit Report on Internal Control on 22 April 2025, for details, please refer to http://www.cninfo.com.cn |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Material weaknesses in internal control not related to financial reporting | No |
BOE Technology Group Co., Ltd. Annual Report 2024
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.
□Yes ? No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal controlself-evaluation report issued by the Company’s Board.?Yes □ NoXV Rectifications of Problems Identified by Self-inspection in the Special Action for ListedCompany Governance
Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
Part V Environmental and Social ResponsibilityI Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection authorities of China.?Yes □ NoPolicies and industry standards pertaining to environmental protectionWith the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies withthe laws and regulations such as the Environmental Protection Law of the People's Republic of China, Water Pollution Prevention andControl Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollution by SolidWaste. The green environment management system was built in combination with the requirements of a series of management systems,such as ISO 9001, QC 080000, ISO 14001 and ISO 50001.Environmental protection administrative licenseCorresponding environmental impact assessments have been conducted for all construction projects under the control of the Companyin conformity with applicable national and local laws and regulations, the corresponding environmental impact assessment approvaland administrative licenses including the emission permit have also been obtained.The regulations for industrial emissions and the particular requirements for controlling pollutant emissions which areassociated with production and operational activities.
| Name of polluter | Type of major pollutants | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 34.10mg/L | 500mg/L | 89.54t | 828.42t | None |
| Ammonia nitrogen | 1.98mg/L | 45mg/L | 5.55t | 59.17t | ||||||
| The 4.5th generation TFT-LCD production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 162.29mg/L | 500mg/L | 150.37t | 564.14t | None |
| Ammonia nitrogen | 9.82mg/L | 45mg/L | 9.82t | 50.77t | ||||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage | 1 | Northwest corner of factor | 26.85mg/L | 380mg/L | 84.53t | 1081.55t | None |
| Ammonia nitrogen | 0.53mg/L | 30mg/L | 1.69t | 101.23t |
BOE Technology Group Co., Ltd. Annual Report 2024
| treatment system | y | |||||||||
| Beijing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | East gate of factory | 105.93mg/L | 500mg/L | 449.28t | 1570.32t | None |
| Ammonia nitrogen | 14.81mg/L | 45mg/L | 66.11t | 183.20t | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 123.56mg/L | 350mg/L | 679.95t | 3135.04t | None |
| Ammonia nitrogen | 15.70mg/L | 35mg/L | 86.66t | 313.50t | ||||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 39.11mg/L | 500mg/L | 60.40t | 713.81t | None |
| Ammonia nitrogen | 0.99mg/L | 45mg/L | 1.43t | 76.82t | ||||||
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 25.53mg/L | 500mg/L | 138.46t | 6383.16t | None |
| Ammonia nitrogen | 4.89mg/L | 45mg/L | 23.96t | 574.48t | ||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 52.60mg/L | 400mg/L | 208.95t | 1900.24t | None |
| Ammonia nitrogen | 5.70mg/L | 30mg/L | 22.78t | 146.17t | ||||||
| Hefei BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 52.52mg/L | 350mg/L | 467.09t | 4759.56t | None |
| Ammonia nitrogen | 11.53mg/L | 35mg/L | 105.96t | 416.46t | ||||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 13.85mg/L | 500mg/L | 64.82t | 297.5t | None |
| Ammonia nitrogen | 0.41mg/L | 45mg/L | 1.92t | 29.75t | ||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage | 1 | North side of factory | 42.53mg/L | 500mg/L | 87.90t | 4326.12 t | None |
| Ammonia nitrogen | 0.91mg/L | 45mg/L | 4.04t | 262.00t |
BOE Technology Group Co., Ltd. Annual Report 2024
| treatment system | ||||||||||
| Chongqing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 14.17mg/L | 400mg/L | 48.73t | 4171.20t | None |
| Ammonia nitrogen | 1.79mg/L | 35mg/L | 6.10t | 398.40t | ||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast corner of factory | 18.55mg/L | 30mg/L | 203.07t | 488.60t | None |
| Ammonia nitrogen | 0.05mg/L | 1.5mg/L | 0.56t | 25.85t | ||||||
| Nanjing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 64.98mg/L | 500mg/L | 286.02t | 1903.99t | None |
| Ammonia nitrogen | 4.45mg/L | 45mg/L | 20.22t | 171.37t | ||||||
| Chengdu BOE Display Sci-tech Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 243.24mg/L | 500mg/L | 1858.92t | 4310.10t | None |
| Ammonia nitrogen | 7.25mg/L | 45mg/L | 53.42t | 148.8t | ||||||
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 192.14mg/L | 500mg/L | 8.72t | Industrial and domestic sewage of the project, upon treatment, is discharged to the industrial sewage plant of Linkong Industrial Park in Dianzhong New Zone, Kunming, Yunnan Province and included in the total discharge of the sewage plant. | None |
| Ammonia nitrogen | 7.42mg/L | 45mg/L | 0.37t |
Treatment of pollutantsThe waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water andhousehold waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according todifferent natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected byrain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste wateris discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water comprises
BOE Technology Group Co., Ltd. Annual Report 2024
household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewagetreatment factory. All industrial wastewater and domestic sewage is not discharged directly, and the concentration and total amount ofdrainage satisfy the requirements of national and local relevant standards.The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can beemitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the nationaland local relevant standards. The solid waste materials which are generated by each subordinate subsidiary can be divided into generalindustrial solid waste, hazardous waste materials and household waste materials, and they all handed over to qualified recycler forregular treatment. The disposal rate of hazardous waste materials is 100%.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency, and published them as required.Contingency Plan for Emergent Environmental IncidentsEvery subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmentalincidents in local environmental protection departments according to their requirements. However, such contingency plan consists ofcomprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardouswastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.Input in environment governance and protection and payment of environmental protection taxThe Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasinginvestment in environmental governance and protection, and improving the production and operation processes regardingenvironmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Companysubject to the environmental protection tax shall pay the environmental protection taxes strictly complying with the requirements ofthe Environmental Protection Tax Law of the People's Republic of China and the local government.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects? Applicable □ Not applicableThanks to the tireless efforts for solidifying the foundation over the past three years, the Company has continuously improved thecarbon emission management system. The Company has entered the second phase of the double carbon strategy, which involvesimplementing measures to peak carbon emissions and developing a path towards carbon neutrality. Based on industrial layout, futuredevelopment plans, and a systematic analysis of its own greenhouse gas emission characteristics, the Company has established doublecarbon goals using a scientific decision-making mechanism, committing to achieving carbon neutrality in our operations by 2050. Toensure the smooth implementation of this long-term goal, the Company is integrating green development into various dimensions ofthe Company including operations, production management, and supply chain management. We are consistently pushing for industrialgreen transformation, aiming to build an environmentally friendly, resource-saving, and sustainable development system.At the operational level, we have completed the establishment of a carbon emission management system, set up a carbon inventorymechanism, conduct regular carbon inventories annually to assess our carbon emissions, establish a carbon emission database, andprovide support for predicting trends in carbon emissions. Meanwhile, we are piloting internal carbon emission managementperformance assessments to strengthen the responsibility mechanism for advancing the double carbon strategy. We are also driving thedevelopment and construction of a carbon footprint management platform for device products. Additionally, we are facilitating theparticipation of four pilot factories in the Science-Based Targets initiative (SBTi), committing to a near-term science-based target.The Company actively implements its sustainable development strategy. By the end of 2024, the Group had achieved the followingmilestones: 18 subsidiaries were awarded “Green Factory” certification; 4 subsidiaries received “Green Supply Chain” recognition; 3subsidiaries earned “Green Design Demonstration for Industrial Products” honors; 2 subsidiaries attained “Three-Star” Certificationfor green buildings; 2 carbon-neutral factories achieved “Zero-Carbon Factory” certification and one subsidiary became the industry’s
BOE Technology Group Co., Ltd. Annual Report 2024
first national-level “Zero-Waste Enterprise”. Additionally, business units across the Group have implemented over 260 energy-savingand emission-reduction projects in production processes and power facility operations. These initiatives have collectively generatedenergy savings, emission reductions and economic benefits exceeding RMB150 million.Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conductedcarbon emission trading and accumulated carbon trading experience to assist the Company in achieving its goals of carbon neutrality.Administrative penalties imposed for environmental issues during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment information that should be disclosedNoOther related environment protection informationIn terms of developing low-carbon products, we are advancing the design and development of low-power consumption for pilotproducts, including the research and development of products like electronic price tags. In terms of product carbon footprintcertification, we are exploring methods for calculating product carbon footprints, completing the certification for pilot product carbonfootprints, and progressing towards PAS 2060 certification for pilot products.In terms of supply chain, the Company integrated dual-carbon management into audit criteria, organized over 240 suppliers to completecarbon inventories, identified five categories of core suppliers requiring priority dual-carbon management, and initiated thedevelopment of supplier carbon management platform. This platform enables the online collection, analysis, and management ofsupplier carbon emission data, further advancing green and low-carbon development of the supply chain. In terms of industry, theCompany proactively participated in drafting dual-carbon-related industry standards and contributed its green management expertiseto the sector.
II Social ResponsibilityUnder the guidance of “Empower IoT with Display” strategy and with the sustainable development concept of “ "Green+, Innovation+,Community+”, BOE has established a three-tier sustainable development organizational structure spanning governance, managementand execution levels, enhancing its resilience and competitiveness in the global market while driving industrial upgrading and high-quality development. Concurrently, BOE actively fosters an industrial value innovation ecosystem that is “Powered by BOE” andpromotes the healthy and sustainable development of the global display industry, taking “Technology+Green” as the cornerstone ofdevelopment. Furthermore, BOE remains committed to fulfilling its social responsibilities, empowering progress in education,healthcare, culture, and other fields through diversified initiatives, spreading warmth and care, and contributing to building a bettersociety.In terms of education, BOE has consistently implemented the “Lighting the Way to Growth” education initiative over the years tosupport educational development. By the end of 2024, BOE had built 126 smart classrooms across 8 provinces and regions in China,providing integrated hardware-software smart education solutions and comprehensive teacher empowerment programs to over 63,500teachers and students. Additionally, in 2024, through the “100 Traditional Culture Public Welfare Lessons in the Palace” schemelaunched in collaboration with the Palace Museum, BOE delivered over 400 online charity courses to 26 schools, benefiting more than20,000 students.In terms of healthcare, leveraging its advanced medical resources and talent edge, BOE has conducted diverse medical welfareinitiatives in regions such as Liangshan Yi Autonomous Prefecture, Sichuan Province, and Dingyuan County, Chuzhou City, AnhuiProvince. These efforts aim to provide free medical consultations and health guidance to residents in remote areas, disseminate public
BOE Technology Group Co., Ltd. Annual Report 2024
health knowledge, enhance healthcare accessibility, and tangibly improve local medical services. In 2024, BOE organized 1,781medical welfare initiatives, reaching over 274,000 individuals.In terms of culture, BOE continues to contribute to cultural relic restoration, ancient text preservation, and traditional culturalinheritance via innovative digital technologies. In 2024, as a display technology partner, BOE empowered the “Chinese IntangibleCultural Heritage and Contemporary Design Exhibition” in Paris with its cutting-edge display solutions, including iGallery and large-sized 8K ultra high-definition displays. These technologies delivered an immersive and interactive traditional culture video art visualfeast to Chinese and foreign audiences and presented to the world the beauty of the integration of China’s thousand-year splendidculture and the most avant-garde contemporary art design.Since 2010, BOE had consecutively disclosed Social Responsibility Report for 15 years. Please view and download such report viaofficial website of BOE www.boe.com or Cninfo.III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural RevitalizationThroughout the years, BOE has steadfastly leveraged its industrial strengths in the technology sector to actively align with the nationalrural revitalization strategy. Through concrete actions, BOE has empowered education and healthcare in remote regions,comprehensively driven high-quality development of rural revitalization, and continuously contributed to building a more harmoniousand prosperous society.BOE has precisely focused on Beijing's paired support cooperation regions. In line with the development characteristics and actualconditions of these areas, we have explored various forms of assistance. We have provided key support to regions such as InnerMongolia, Qinghai, Xizang, Zhangjiakou-Chengde in Hebei, and the South-to-North Water Diversion project, as well as toeconomically weak villages in Beijing. Our efforts aim to develop industries, increase employment, drive consumption, consolidatethe achievements of rural revitalization, and promote high-quality development and improved living standards in remote areas.In terms of consumer assistance, BOE has focused on supporting agricultural products as a breakthrough. Leveraging the collectivepurchasing platform, we integrated resources to create competitively priced products through standardization and customization, whileestablishing both online and offline sales channels. We have helped suppliers or products, holding assistance certificates from county-level agricultural and rural bureaus or rural revitalization bureaus, to improve their marketing strategies by signing contracts. We havealso set up special assistance areas and promoted sales through advertising campaigns for these products. By the end of December2024, BOE had purchased agricultural and sideline products (including those from the paired support regions), with a cumulative GMVof RMB35.75 million, achieving a win-win outcome for both economic value in agricultural assistance and the Company's socialresponsibility contribution.In terms of rural assistance initiatives, BOE has deployed outstanding personnel to Wamiao Village, Dazhuangke Township, YanqingDistrict, where they actively fulfill their duties by harnessing cultural empowerment to drive rural revitalization. Throughorganizing diverse cultural activities and exchanges, BOE has brought warmth and progress to local communities.Moving forward, BOE remains steadfast in its vision of “To Be the Most Respected Company on Earth”. Upholding the principles ofGreen+, Innovation+, and Community+ sustainability, and with unwavering resolve, BOE will deepen its exploration and practices inrural revitalization, continuously innovate assistance models, and expand support channels to deliver more comprehensive and in-depthsupport and services for advancing the national rural revitalization strategy. Meanwhile, by leveraging its technological and resourcestrengths, BOE will proactively fulfill its social responsibilities, strive to create greater societal value and well-being, ensure thattechnological advancements benefit broader populations, and collectively forge a more harmonious and prosperous society.
BOE Technology Group Co., Ltd. Annual Report 2024
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilledin the Reporting Period or Ongoing at the Period-end? Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | |
| Commitments made in time of asset restructuring | - | - | - | - | - | |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | |
| Equity incentive commitments | - | - | - | - | - | |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun Vice Chairman of the Board: Mr. Gao Wenbao Supervisor: Mr. Xu Yangping and Mr. Yan Jun Senior Management: Ms. Feng Liqiong Former Director: Mr. Liu Xiaodong and Ms. Sun Yun Former Supervisor: Mr. Teng Jiao Former Senior Management: Mr. Miao Chuanbin, Mr. Xie | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the | 21 February 2020 | During the term as director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | Ongoing |
BOE Technology Group Co., Ltd. Annual Report 2024
| Zhongdong and Mr. Liu Hongfeng | commitment period expires. | |||||
| Other commitments | - | - | - | - | - | |
| Executed on time or not | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||||
BOE Technology Group Co., Ltd. Annual Report 2024
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still withinthe forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable ? Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” onthe Financial Statements
□ Applicable ? Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the IndependentDirectors (if any) Regarding the Independent Auditor's “Modified Opinion” on the FinancialStatements of the Reporting Period
□ Applicable ? Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting Errors
? Applicable □ Not applicableOn 6 December 2024, the Ministry of Finance issued Interpretation No. 18 of Accounting Standards for Business Enterprises, thecontent of “Subsequent Measurement of Investment Property Held as Underlying Items under the Floating Fee Method” and“Accounting Treatment for Assurance-Type Warranties Not Constituting Distinct Performance Obligations” became effective uponthe date of issuance. And the Company are permitted to implement these provisions early, starting from the year in which theinterpretation is released.VII YoY Changes to the Scope of the Consolidated Financial Statements? Applicable □ Not applicableThe additions to the consolidation scope this year were solely due to newly established subsidiaries, while the reductions resulted fromthe deregistration of subsidiaries during the year.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
| Name of the domestic independent auditor | KPMG Huazhen (LLP) |
BOE Technology Group Co., Ltd. Annual Report 2024
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 1,210 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 20 |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Su Xing, Liu Jingyuan |
| How many consecutive years the certified public accountants from the domestic independent auditor have provided audit service for the Company | 3 years for Su Xing, 1 year for Liu Jingyuan |
| Name of the foreign independent auditor (if any) | N/A |
| The Company’s payment to the foreign independent auditor (RMB’0,000) (if any) | 0 |
| How many consecutive years the foreign independent auditor has provided audit service for the Company (if any) | N/A |
| Names of the certified public accountants from the foreign independent auditor writing signatures on the auditor’s report (if any) | N/A |
| How many consecutive years the certified public accountants from the foreign independent auditor have provided audit service for the Company (if any) | N/A |
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes ? No
Independent auditor, financial advisor or sponsor engaged for internal control audit? Applicable □ Not applicableDuring the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and theCompany paid KPMG Huazhen (LLP) total compensation of RMB12.1 million for the 2024 annual audit and internal control audit.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.XI Major Legal Matters? Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Litigations for 2024 (including carryforwards in previous years ) | 88,314.57 | No | N/A | N/A | N/A | - | N/A |
XII Punishments and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
XIII Credit Quality of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable ? Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the 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 Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable ? Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any otherfinance business with any related parties.
7. Other Major Related-Party Transactions
? Applicable □ Not applicable
1. The Proposal on the Estimated Continuing Related-party Transactions in 2024 was reviewed and approved at the 28th Meeting ofthe 10th Board of Directors on 29 March 2024, with the actual transaction amount in 2024 within the estimated amount.
BOE Technology Group Co., Ltd. Annual Report 2024
2. The Proposal on Investing in Beijing Electric Control Integrated Circuit Manufacturing Co., Ltd. and Related-party Transactionswas reviewed and approved at the 39th Meeting of the 10th Board of Directors on 15 November 2024. For further information,please refer to the relevant announcement that has been disclosed by the Company on http://www.cninfo.com.cn/.
3. The Proposal on Electric Control Industrial Investment's Investment in the Second Phase of Xianzhi Chain Fund and XianzhiChain Enterprise Management Centre and Related-party Transactions was reviewed and approved at the 41st Meeting of the 10thBoard of Directors on 23 December 2024. For further information, please refer to the relevant announcement that has been disclosedby the Company on http://www.cninfo.com.cn/.Index to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Estimated Continuing Related-party Transactions for 2024 | 2 April 2024 | www.cninfo.com.cn |
| Announcement on Investing in Beijing Electric Control Integrated Circuit Manufacturing Co., Ltd. and the Related-party Transaction | 16 November 2024 | www.cninfo.com.cn |
| Announcement on BEHC Industrial Investment Co., Ltd.’s Intention to Invest in Beijing Xianzhi Chain Phase II Venture Investment Fund (Limited Partnership) and Beijing Xianzhi Chain Enterprise Management Center (Limited Partnership) and the Related-party Transaction | 24 December 2024 | www.cninfo.com.cn |
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(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) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
2. Major Guarantees
? Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||||
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 30 November 2016 | 554,232 | 15 March 2017 | 13,182 | Joint-liability | N/A | N/A | 2017-3-17 to 2027-3-16 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 24 April 2017 | 2,297,254 | 30 August 2017 | 736,774 | Joint-liability | N/A | N/A | 2017-9-6 to 2029-9-5 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 27 August 2024 | 300,000 | 23 September 2024 | 297,881 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2024-9-24 to 2030-9-5 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 30 November 2016 | 1,727,690 | 30 August 2017 | 64,956 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2017-9-7 to 2027-9-29 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 9 December 2015 | 1,369,985 | 8 November 2016 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 18 May 2018 | 2,133,157 | 18 September 2018 | 796,330 | Joint-liability | N/A | The secured party provides a counter | 2018-9-26 to 2031-9-26 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
| guarantee for the guarantor | ||||||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 27 August 2024 | 340,000 | 27 September 2024 | 338,251 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2024-10-8 to 2031-9-26 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 27 April 2020 | 2,083,132 | 29 December 2020 | 1,597,708 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-12-31 to 2033-12-31 | Not | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 25 March 2019 | 2,060,289 | 16 August 2019 | 749,952 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2019-8-23 to 2032-8-23 | Not | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 23 December 2024 | 620,000 | 25 December 2024 | 266,494 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2024-12-26 to 2032-8-23 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 180,000 | 12 May 2021 | - | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | - | Yes | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 120,000 | 12 May 2021 | - | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | - | Yes | Not |
| Chengdu BOE Hospital Co., Ltd. | 27 April 2020 | 240,000 | 15 June 2020 | 162,188 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-6-15 to 2042-6-30 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 1,260,000 | Total actual amount of such guarantees in the Reporting Period (B2) | 1,223,165 | |||||||
BOE Technology Group Co., Ltd. Annual Report 2024
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 12,355,754 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 5,023,716 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 2,462 | 30 September 2020 | 1,947 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 1,915 | 30 September 2020 | 1,514 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 2,257 | 30 September 2020 | 1,587 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,163 | 30 September 2020 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 609 | 18 December 2017 | - | Joint-liability, pledge | Equity interests | N/A | - | Yes | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 2,377 | 18 December 2017 | - | Joint-liability, pledge | Equity interests | N/A | - | Yes | Not |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 657 | 18 December 2017 | - | Joint-liability, pledge | Equity interests | N/A | - | Yes | Not |
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 1,512 | 18 December 2017 | - | Joint-liability, pledge | Equity interests | N/A | - | Yes | Not |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,269 | 18 December 2017 | - | Joint-liability, pledge | Equity interests | N/A | - | Yes | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,231 | 3 December 2020 | 892 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd. | N/A | 1,710 | 3 December 2020 | 1,238 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Ke’en Solar Energy Power | N/A | 1,094 | 3 December 2020 | 793 | Joint- | N/A | N/A | 2020-12-3 to | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
| Generation (Pingyang) Co., Ltd. | liability | 2034-12-3 | ||||||||
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 958 | 3 December 2020 | 694 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 479 | 3 December 2020 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE Energy Technology Co., Ltd. | N/A | 8,755 | 23 October 2017 | 5,639 | Pledge | Charging right | N/A | 2017-10-24 to 2032-10-23 | Not | Not |
| BOE Energy Technology Co., Ltd. | N/A | 14,063 | 15 August 2018 | 4,904 | Pledge | Charging right | N/A | 2018-9-26 to 2032-12-21 | Not | Not |
| BOE Energy Technology Co., Ltd. | N/A | 17,386 | 28 November 2017 | 11,720 | Pledge | Charging right | N/A | 2017-12-1 to 2032-12-1 | Not | Not |
| Hefei BOE Hospital Co., Ltd. | 27 April 2018 | 130,000 | 27 April 2018 | 105,460 | Joint-liability | N/A | N/A | 2018-4-27 to 2036-4-27 | Not | Not |
| Beijing BOE Life Technology Co., Ltd. | N/A | 60,000 | 29 December 2021 | 26,200 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-29 to 2039-12-28 | Not | Not |
| BOE Vision-Electronic Technology Co., Ltd | 30 March 2022 | 215,652 | 23 March 2023 | 2,226 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 23 March 2023 to the time when all orders under the purchase and sales Agreement have been completed | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 45,840 | 17 February 2022 | 2,177 | Joint-liability | N/A | N/A | 2022-2-18-2028-2-17 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 26 January 2021 | 22,920 | 3 August 2021 | 2,269 | Joint-liability | N/A | N/A | 2024-8-23-2028-8-23 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 30 September 2021 | 34,380 | 15 November 2021 | 4,904 | Joint-liability | N/A | N/A | 2021-11-17-2029-9-25 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 45,840 | 10 May 2022 | 1,146 | Joint-liability | N/A | N/A | 2024-3-15-2028-3-15 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 17 February 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 17 March 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 25 April 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 12 May 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 26 January 2021 | 22,920 | 15 March 2021 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 3 January 2024 | 1,100 | Joint-liability | N/A | N/A | 2024-1-5-2028-1-5 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 3 January 2024 | 1,146 | Joint-liability | N/A | N/A | 2024-2-23-2028-1-18 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 1 March 2024 | 1,146 | Joint-liability | N/A | N/A | 2024-3-4-2028-3-1 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 22 March 2024 | 1,797 | Joint-liability | N/A | N/A | 2024-3-25-2028-3-22 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 45,840 | 25 April 2023 | 1,146 | Joint-liability | N/A | N/A | 2024-2-22-2028-2-21 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 22 May 2024 | 2,292 | Joint-liability | N/A | N/A | 2024-5-22-2028-5-21 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 6 May 2024 | 1,146 | Joint-liability | N/A | N/A | 2024-5-10-2028-5-19 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 16 August 2024 | 3,261 | Joint-liability | N/A | N/A | 2024-8-23-2035-8-22 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 16 August 2024 | 23 | Joint-liability | N/A | N/A | 2024-12-23-2028-1-23 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 5 November 2024 | 2,292 | Joint-liability | N/A | N/A | 2024-11-6-2028-11-6 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 2 April 2024 | 33,234 | 24 December 2024 | 1,994 | Joint-liability | N/A | N/A | 2024-12-24-2037-12-24 | Not | Not |
| BOE HC Crystaland Yunnan Co., Ltd. | 21 January 2023 | 4,584 | 19 March 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC Crystaland Yunnan Co., Ltd. | 27 January 2022 | 9,168 | 22 November 2022 | 985 | Joint-liability | N/A | N/A | 2024-7-25-2028-5-26 | Not | Not |
| BOE HC Crystaland Yunnan Co., Ltd. | 2 April 2024 | 3,438 | 2 September 2024 | 229 | Joint-liability | N/A | N/A | 2024-9-9-2028-9-8 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 3 March 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek | 21 January 2023 | 52,716 | 13 March 2023 | - | Joint- | N/A | N/A | - | Yes | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
| (Zhejiang) Co., Ltd. | liability | |||||||||
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 26 January 2021 | 45,840 | 7 January 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,672 | 2 December 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 15 May 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 26 February 2024 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 26 January 2024 | 3,415 | Joint-liability | N/A | N/A | 2024-1-29-2029-1-25 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 5 June 2024 | 2,292 | Joint-liability | N/A | N/A | 2024-6-6-2028-6-4 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 5 June 2024 | 1,089 | Joint-liability | N/A | N/A | 2024-6-19-2029-6-19 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 5 June 2024 | 2,579 | Joint-liability | N/A | N/A | 2024-8-28-2029-8-28 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 5 June 2024 | 859 | Joint-liability | N/A | N/A | 2024-8-28-2028-2-27 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 26 September 2024 | 458 | Joint-liability | N/A | N/A | 2024-9-29-2030-9-20 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 26 September 2024 | 344 | Joint-liability | N/A | N/A | 2024-11-25-2030-11-20 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 26 September 2024 | 1,898 | Joint-liability | N/A | N/A | 2024-12-9-2028-12-8 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 26 September 2024 | 1,333 | Joint-liability | N/A | N/A | 2024-12-16-2028-12-15 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 26 September 2024 | 160 | Joint-liability | N/A | N/A | 2024-12-26-2028-12-24 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 28 March 2023 | 2,258 | Joint-liability | N/A | N/A | 2023-3-28-2029-3-27 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 6 April 2023 | 2,258 | Joint-liability | N/A | N/A | 2023-4-6-2029-4-5 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,716 | 16 June 2023 | 2,292 | Joint-liability | N/A | N/A | 2024-5-29-2028-5-26 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 11 March 2023 | 12,606 | 26 April 2023 | 9,722 | Joint-liability | N/A | N/A | 2023-4-28-2030-4-23 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 17 July 2024 | 1,146 | Joint-liability | N/A | N/A | 2024-10-10-2028-10-9 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2024
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 17 July 2024 | 551 | Joint-liability | N/A | N/A | 2024-10-21-2028-4-21 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 2 April 2024 | 30,942 | 17 July 2024 | 136 | Joint-liability | N/A | N/A | 2024-10-29-2028-4-28 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 18 July 2022 | 30,942 | 30 August 2022 | 11,102 | Joint-liability | N/A | N/A | 2022-10-26-2035-6-21 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 18 July 2022 | 30,942 | 30 August 2022 | 2,063 | Joint-liability | N/A | N/A | 2024-5-14-2028-5-12 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 18 July 2022 | 30,942 | 30 August 2022 | 134 | Joint-liability | N/A | N/A | 2024-12-27-2028-12-25 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 300,000 | Total actual amount of such guarantees in the Reporting Period (C2) | 88,338 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 1,121,428 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 239,956 | |||||||
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 1,560,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 1,311,503 | |||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,477,182 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 5,263,672 | |||||||
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 39.60% | |||||||||
| Of which: | ||||||||||
| Balance of guarantees provided for shareholders, actual controller and their related parties (D) | 0 | |||||||||
| Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) | 107,686 | |||||||||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 0 | |||||||||
| Total of the three amounts above (D+E+F) | 107,686 | |||||||||
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A | |||||||||
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A | |||||||||
Compound guaranteesNone
BOE Technology Group Co., Ltd. Annual Report 2024
BOE Technology Group Co., Ltd. Annual Report 2024
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
? Applicable □ Not applicableOverviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Bank financial products | Self-owned funds | 818,200 | 267,600 | 0 | 0 |
| Bank financial products | Raised funds | 40,000 | 10,000 | 0 | 0 |
| Total | 858,200 | 277,600 | 0 | 0 | |
Note: Subsidiary BOE HC Semitek Corporation used not more than RMB200,000,000 of idle proceeds for cash management. Detailsare disclosed in the announcement of BOE HC Semitek Corporation on the website of cninfo.com.cn on 16 August 2024.Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable ? Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrustedasset management
□ Applicable ? Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
? Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors. The bond outstanding as of the end of this reporting period is as follows:
| Bond name | Abbr. | Bond code | Date of issue | Maturity |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2025 |
The Company disclosed 2024 "22BOEY1" Interest Payment Announcement (Announcement No. 2024-005) on 21 March 2024. Theinterest payment plan was RMB35.00 (including tax) every ten bonds. The Company disclosed the Announcement on the PublicOffering of Corporate Bonds to Professional Investors Obtaining Registration Approval from the CSRC (Announcement No. 2024-
BOE Technology Group Co., Ltd. Annual Report 2024
052) on 9 October 2024. The Company received the CSRC Permit [2024] No. 1330, which agreed to the Company's public offering ofcorporate bonds with an aggregate nominal value of no more than RMB10 billion to professional investors. The Company disclosedthe Announcement on Not Exercising the Issuer’s Renewal Option for the 2022 Public Offering of Renewable Corporate Bonds of BOE(for professional investors) (Digital Economy) (Phase I) (Announcement No. 2025-008) on 11 February 2025, and the third anniversaryof 22BOEY1 fell on 25 March 2025. According to the relevant provisions of the Prospectus and the Listing Declaration, the Companydecides not to exercise the renewal option of bond issuer. That is, the current bonds were to be fully redeemed. As the Companydisclosed the Announcement on the Redemption of the Principal and Interest of the "22BOEY1" Corporate Bonds and the De-listingof the Bonds (Announcement No. 2025-010) on 21 March 2025, it would pay the interest of the bonds generated between 25 March2024 and 24 March 2025, as well as the principal of the bonds, on 25 March 2025, and de-list the bonds.
2. The Company disclosed the Announcement on Resignation of Director (Announcement No. 2024-001) on 24 January 2024, due tothe change of work, Mr. Pan Jinfeng applied for resignation as Director and Vice Chairman of the Board and will not hold any positionin the Company after his resignation. The Company disclosed the Announcement on Resignation of Director (Announcement No. 2024-004) on 13 March 2024, due to age, Mr. Liu Xiaodong applied for resignation as Director, Vice Chairman of the Board and Memberof Special Committee of the Board and will continue to serve as Member of the Executive Committee in the Company after hisresignation; Ms. Sun Yun applied for resignation as Director and Member of Special Committee of the Board and will continue toserve as Member of the Executive Committee and Executive Vice President in the Company after her resignation. The Companydisclosed the Announcement on Election of Non-Independent Directors of the 10
th
Board of Directors (Announcement No. 2024-018)on 2 April 2024. The Company disclosed the Announcement on Resolutions of the 2023 Annual General Meeting (Announcement No.2024-023) on 27 April 2024 which reviewed and approved the Proposal on Election of Non-Independent Directors of the 10
thBoardof Directors, and Mr. Feng Qiang, Mr. Zhu Baocheng and Mr. Wang Xiping were elected as non-independent directors of the 10
th
Board of Directors of the Company. The Company disclosed the Announcement on Resolutions of the 30
th
Meeting of the 10
thBoardof Directors (Announcement No. 2024-028) on 28 May 2024 which reviewed and approved the Proposal on Election of Vice Chairmanof the 10
th
Board of Directors, and Mr. Feng Qiang and Mr. Zhu Baocheng were elected by the Board as Vice Chairman of the 10
th
Board of Directors. The Company disclosed the Announcement on Resignation of Supervisor (Announcement No. 2024-031) on 13June 2024, due to job turnover, Mr. Sun Fuqing applied for resignation as a supervisor and will not hold any position in the Companyafter his resignation. The Company disclosed the Announcement on Resignation of Director (Announcement No. 2024-038) on 9 July2024, due to the change of work, Mr. Zhu Baocheng applied for resignation as Director and Vice Chairman of the Board and will nothold any position in the Company after his resignation. The Company disclosed the Announcement on Resolutions of the 32
ndMeetingof the 10
th
Board of Directors (Announcement No. 2024-042) on 25 July 2024 which reviewed and approved the Proposal on Adjustingthe Composition of the Company’s Executive Committee and Appointing Senior Management. Mr. Feng Qiang, a current seniormanagement of the Company, was promoted from a member of the Executive Committee and Executive Vice President to ViceChairman of the Executive Committee; and Mr. Liu Zhiqiang was appointed by the Board as a member of the Executive Committeeand Senior Vice President of the Company. The Company disclosed the Announcement on Resolutions of the 1
stExtraordinary GeneralMeeting in 2024 (Announcement No. 2024-040) on 25 July 2024 which reviewed and approved the Proposal on Election of Supervisorof the 10
th
Supervisory Committee, and Mr. Song Ligong was elected as a supervisor of the 10
th
Supervisory Committee. The Companydisclosed the Announcement on Resignation of Senior Management (Announcement No. 2024-041) on 25 July 2024, due to age, Mr.Liu Xiaodong applied for resignation as a member of the Executive Committee of the Company and will continue to work in theCompany responsible for promoting major projects of the Company. The Company disclosed the Announcement on Resignation ofSenior Management (Announcement No. 2024-051) on 21 September 2024, due to job transfer, Mr. Zhang Yu applied for resignationas a member of the Executive Committee and Executive Vice President and will not hold any position in the Company after hisresignation. The Company disclosed the Announcement on Resignation of Director (Announcement No. 2024-053) on 16 October2024, due to work arrangement, Mr. Wu Lishun applied for resignation as director and the relevant positions of Special Committee ofthe Board in the Company and will not hold any position in the Company after his resignation. The Company disclosed theAnnouncement on Resolutions of the 38
th
Meeting of the 10
thBoard of Directors (Announcement No. 2024-054) on 31 October 2024
BOE Technology Group Co., Ltd. Annual Report 2024
which reviewed and approved the Proposal on Appointment of Senior Management of the Company, and both Mr. Liu Jing and Mr.Yun Xiangnan were appointed by the Board as a member of the Executive Committee and Vice President. The Company disclosed theAnnouncement on Resolutions of the 2nd Extraordinary General Meeting in 2024 (Announcement No. 2024-069) on 16 November2024 which reviewed and approved the Proposal on Election of Non-Independent Directors of the 10th Board of Directors, and Mr.Guo Chuan was elected as a non-independent director of the 10th Board of Directors of the Company. The Company disclosed theAnnouncement on Resolutions of the 1
st
Extraordinary General Meeting in 2025 (Announcement No. 2025-002), Announcement onResolutions of the 1
st Meeting of the 11
th
Board of Directors (Announcement No. 2025-005) and Announcement on Resolutions of the
st Meeting of the 11
thSupervisory Committee (Announcement No. 2025-006) on 15 January 2025, which reviewed and approvedproposals related to general election and completed the general election. For more details, please refer to relevant announcements.
3. On 13 June 2024, the Company disclosed the Announcement on the Distribution of the 2023 Final Dividend (Announcement No.2024-030). As the 2023 Final Dividend Plan had been approved at the 2023 Annual General Meeting on 26 April 2024, the Companydistributed a 2023 final dividend of RMB0.3 per 10 shares (dividend to B-shareholders paid in HKD according to the central parityrate of RMB and HKD declared by the People’s Bank of China on the first working day immediately after the date of the relevantgeneral meeting resolution), with no bonus issue from either profit or capital reserves.
4. Following the approval of the Proposal on the Repurchase of Some Public Shares at the 38th Meeting of the 10th Board of Directors,the Company disclosed the Announcement on the Repurchase of Some Public Shares (Announcement No. 2024-061) on 31 October2024. On 14 November 2024, the Company disclosed the Voluntary Information Disclosure Announcement on Receiving a Letter ofLoan Commitment and Obtaining Financing Support for Share Repurchase (Announcement No. 2024-066). The Company receiveda Letter of Loan Commitment issued by Beijing Branch of Industrial and Commercial Bank of China Co., Ltd., committing to providethe Company with a special loan of RMB700 million (not exceeding 70% of the repurchase transaction price) for share repurchase.The Company carried out the first repurchase on 22 November 2024 and disclosed the Announcement on the First Repurchase of SomePublic Shares (Announcement No. 2024-072) on 23 November 2024. On 3 January 2025, the Company disclosed the Announcementon the Completed Implementation of Share Repurchase Programme and Repurchase Implementation Results (Announcement No.:
2025-001). As at 31 December 2024, the Company has implemented the repurchase of the Company's shares by means of centralizedbidding through a special securities account for the repurchase, and the cumulative number of A Shares repurchased was 228,882,900,accounting for approximately 0.62% of the Company's A Shares and 0.61% of the Company's total share capital, with the highesttransaction price of RMB4.46 per share and the lowest transaction price of RMB4.22 per share. The total amount paid wasRMB999,872,378 (exclusive of transaction costs). The above repurchase of the Company was in line with the requirements of relevantlaws and regulations, as well as the established repurchase programme of the Company.
| Overview of significant event | Disclosure date | Disclosure website |
| Announcement on Investing in Beijing Electric Control Integrated Circuit Manufacturing Co., Ltd. and the Related-party Transaction | 16 November 2024 | www.cninfo.com.cn |
| Announcement on BEHC Industrial Investment Co., Ltd.’s Intention to Invest in Beijing Xianzhi Chain Phase II Venture Investment Fund (Limited Partnership) and Beijing Xianzhi Chain Enterprise Management Center (Limited Partnership) and the Related-party Transaction | 24 December 2024 | www.cninfo.com.cn |
XVII Significant Events of Subsidiaries
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Item | Before | Increase/decrease (+/-) | After | ||||||
| Number | Percentage | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Number | Percentage | |
| I. Restricted shares | 198,959,227 | 0.53% | 0 | 0 | 0 | -98,382,837 | -98,382,837 | 100,576,390 | 0.27% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 182,413,489 | 0.48% | 0 | 0 | 0 | -89,771,883 | -89,771,883 | 92,641,606 | 0.25% |
| Among which: Shares held by domestic corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by domestic individuals | 182,413,489 | 0.48% | 0 | 0 | 0 | -89,771,883 | -89,771,883 | 92,641,606 | 0.25% |
| 4. Shares held by foreign investors | 16,545,738 | 0.04% | 0 | 0 | 0 | -8,610,954 | -8,610,954 | 7,934,784 | 0.02% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign individuals | 16,545,738 | 0.04% | 0 | 0 | 0 | -8,610,954 | -8,610,954 | 7,934,784 | 0.02% |
| II. Non-restricted shares | 37,453,569,968 | 99.47% | 0 | 0 | 0 | 90,869,845 | 90,869,845 | 37,544,439,813 | 99.73% |
BOE Technology Group Co., Ltd. Annual Report 2024
| 1. RMB ordinary shares | 36,760,685,841 | 97.63% | 0 | 0 | 0 | 90,869,845 | 90,869,845 | 36,851,555,686 | 97.89% |
| 2. Domestically listed foreign shares | 692,884,127 | 1.84% | 0 | 0 | 0 | 0 | 0 | 692,884,127 | 1.84% |
| 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 | 37,652,529,195 | 100.00% | 0 | 0 | 0 | -7,512,992 | -7,512,992 | 37,645,016,203 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicableDuring the Reporting Period, the Company's share incentive scheme involved the partial lifting of restrictions on restricted stocks, the repurchase and cancellation of 7,512,992 restricted sharesthat had been authorized to some incentive recipients but were still locked, and an increase in management lock-up shares. This led to a total decrease of 98,382,837 shares subject to sellingrestrictions (of which domestic natural persons decreased by 89,771,883 shares, and foreign natural persons decreased by 8,610,954 shares), resulting in a total increase of 90,869,845 shares notsubject to selling restrictions and a net decrease of 7,512,992 shares in the total number of shares.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and theprior accounting period, respectively:
? Applicable □ Not applicable
| Item | January-December 2024 |
| Basic earnings per share (RMB/share) | 0.14 |
| Diluted earnings per share (RMB/share) | 0.14 |
| Item | 31 December 2024 |
| Equity per share attributable to the Company’s ordinary shareholders | 3.46 |
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
2. Changes in Restricted Shares
? Applicable □ Not applicable
Unit: Share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares increased of the period | Restricted shares relieved of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Locked shares of executives | 4,237,381 | 4,989,630 | 0 | 9,227,011 | Locked shares of executives | - |
| Restricted shares for equity incentive | 194,721,846 | 0 | 103,372,467 | 91,349,379 | Restricted shares for equity incentive | - |
| Total | 198,959,227 | 4,989,630 | 103,372,467 | 100,576,390 | -- | -- |
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable ? Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
? Applicable □ Not applicable
1. During the Reporting Period, the Company repurchased and cancelled 7,512,992 restricted shares, resulting in a decrease of 7,512,992 shares of the Company's shares.
3. Existing Staff-Held Shares
□Applicable ? Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
BOE Technology Group Co., Ltd. Annual Report 2024
| Number of ordinary shareholders at the period-end | 1,165,289 (including 1,134,281 A-shareholders and 31,008 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,081,604 (including 1,051,184 A-shareholders and 30,420 B-shareholders) | ||||||
| 5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing) | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge, marked or frozen | ||
| Status | Shares | ||||||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.79% | 4,063,333,333 | - | 0 | 4,063,333,333 | N/A | 0 | |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 7.08% | 2,666,365,885 | 387,867,510 | 0 | 2,666,365,885 | N/A | 0 | |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.18% | 822,092,180 | - | 0 | 822,092,180 | N/A | 0 | |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.91% | 718,132,854 | - | 0 | 718,132,854 | N/A | 0 | |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.77% | 666,195,772 | - | 0 | 666,195,772 | N/A | 0 | |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund | Other | 1.69% | 637,914,147 | 358,295,100 | 0 | 637,914,147 | N/A | 0 | |
| Fuqing Huirong Venture Capital Co., Ltd. | Domestic non-state-owned legal person | 1.43% | 538,599,640 | 3,297,100 | 0 | 538,599,640 | In pledge | 45,000,000 | |
| China Construction Bank Co., Ltd.- E Fund CSI 300 Initiating Exchange-Traded Fund | Other | 1.17% | 440,075,023 | 335,051,800 | 0 | 440,075,023 | N/A | 0 | |
| Abu Dhabi Investment Authority | Foreign legal person | 0.94% | 354,248,920 | 33,015,289 | 0 | 354,248,920 | N/A | 0 | |
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | Other | 0.93% | 349,000,000 | -999,919 | 0 | 349,000,000 | N/A | 0 | |
BOE Technology Group Co., Ltd. Annual Report 2024
| Strategic investors or general corporations becoming top-ten ordinary shareholders due to placing of new shares (if any) | Naught | ||
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | ||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. | ||
| Special account for share repurchases (if any) among the top 10 shareholders | Naught | ||
| Shareholdings of the top ten unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked shares of executives) | |||
| Name of shareholder | Number of unrestricted ordinary shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 2,666,365,885 | RMB ordinary share | 2,666,365,885 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | RMB ordinary share | 718,132,854 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund | 637,914,147 | RMB ordinary share | 637,914,147 |
| Fuqing Huirong Venture Capital Co., Ltd. | 538,599,640 | RMB ordinary share | 538,599,640 |
| China Construction Bank Co., Ltd.- E Fund CSI 300 Initiating Exchange-Traded Fund | 440,075,023 | RMB ordinary share | 440,075,023 |
| Abu Dhabi Investment Authority | 354,248,920 | RMB ordinary share | 354,248,920 |
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | 349,000,000 | RMB ordinary share | 349,000,000 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as between top 10 unrestricted ordinary shareholders and top 10 shareholders | 1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. | ||
BOE Technology Group Co., Ltd. Annual Report 2024
| 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |
| Top 10 ordinary shareholders involved in securities margin trading (if any) | 1.The shares held by Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund in the Company increased by 140,700 shares due to refinancing shares return during the Reporting Period. 2.The shares held by Fuqing Huirong Venture Capital Co., Ltd. in the Company increased by 3,297,100 shares due to refinancing shares return during the Reporting Period. 3. The shares held by China Construction Bank Co., Ltd.- E Fund CSI 300 Initiating Exchange-Traded Fund. in the Company increased by 127,200 shares due to refinancing shares return during the Reporting Period. 4. Except for the aforesaid, as of the end of the Reporting Period, no shareholder among the top-10 ordinary shareholders of the Company was involved in securities refinancing. |
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending? Applicable □ Not applicable
Unit: share
| 5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent in refinancing and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent in refinancing and not yet returned at the period-end | ||||
| Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | |
| Industrial and Commercial Bank of China Co., Ltd.- Huatai-Pinebridge CSI 300 Exchange-Traded Fund | 279,619,047 | 0.74% | 140,700 | 0.00% | 637,914,147 | 1.69% | 0 | 0.00% |
| Fuqing Huirong Venture Capital Co., Ltd. | 535,302,540 | 1.42% | 3,297,100 | 0.01% | 538,599,640 | 1.43% | 0 | 0.00% |
| China Construction Bank Co., Ltd.- E Fund CSI 300 Initiating Exchange-Traded Fund | 105,023,223 | 0.28% | 127,200 | 0.00% | 440,075,023 | 1.17% | 0 | 0.00% |
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with the prior period
□Applicable ? Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
□ Yes ? No
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2024
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal personType of the controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment, 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. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Controlling shareholder’s holdings in other listed companies at home or abroad in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City, and indirectly held 31,430,563 shares of Electronic City, which was of 2.81% of the total shares amount of Electronic City. Beijing Electronic Shareholding Co., Ltd. directly held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.36% of the total shares of NAURA Technology Group Co., Ltd. and indirectly held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd., which accounted for 33.39% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for 34.96% of the total shares of Beijing Yandong Microelectronic Co., Ltd. and indirectly held 125,083,405 shares of A share of Beijing Yandong Microelectronic Co., Ltd., which accounted for 10.40% of the total shares of Beijing Yandong Microelectronic Co., Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 26,068,680 shares of A shares of Shanghai New Vision Microelectronics Co., Ltd. (Stock Code: 688593), which accounted for 5.67% of the total shares of Shanghai New Vision Microelectronics Co., Ltd. and indirectly held 30,472,484 shares of A shares of Shanghai New Vision Microelectronics Co., Ltd., which accounted for 6.63% of the total shares of Shanghai New Vision Microelectronics Co., Ltd. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets managementType of the actual controller: legal person
| Name of actual controller | Legal representative/person in | Date of establishment | Unified social credit code | Principal activity |
BOE Technology Group Co., Ltd. Annual Report 2024
| charge | ||||
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment; 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. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Other listed companies at home or abroad controlled by the actual controller in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City, and indirectly held 31,430,563 shares of Electronic City, which was of 2.81% of the total shares amount of Electronic City. Beijing Electronic Shareholding Co., Ltd. directly held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.36% of the total shares of NAURA Technology Group Co., Ltd. and indirectly held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd., which accounted for 33.39% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for 34.96% of the total shares of Beijing Yandong Microelectronic Co., Ltd. and indirectly held 125,083,405 shares of A share of Beijing Yandong Microelectronic Co., Ltd., which accounted for 10.40% of the total shares of Beijing Yandong Microelectronic Co., Ltd. | |||
Change of the actual controller during the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
BOE Technology Group Co., Ltd. Annual Report 2024
Notes: 1. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management CompanyLimited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through StockManagement Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing rightand 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.
2. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed theActing-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the LargestShareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held byThem
□Applicable ? Not applicable
5. Other 10% or Greater Corporate Shareholders
? Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Principal activity |
| Beijing State-owned Capital Operation and Management Company Limited | Wu Lishun | 30 December 2008 | RMB50 billion | Operation and management of state-owned capital, investment and investment management; assets management; organize the reorganization as well as the merger and acquisition of the enterprise assets. (“1. The company shall not raise funds in any public manner; 2. It shall not conduct securities products and financial derivative transactions in any public manner; 3. It shall not issue loans; 4. It shall not provide guarantees for enterprises other those it invests in; 5. It shall not promise any principal guarantee or minimum return to investors”; (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.) |
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
IV Specific Implementation of Share Repurchase during the Reporting PeriodProgress on any share repurchase? Applicable □ Not applicable
| Disclosure time of plan | Number of shares to be repurchased | As % of total share capital | Amount of all repurchased shares | Term of repurchase | Usage | Number of shares repurchased (share) | Number of shares repurchased as % of the underlying stocks involved in the equity incentive plan (if any) |
| 31 October 2024 | 160,000,000 shares to 280,000,000 shares | 0.42%-0.74% of the total share capital at the time of disclosure of the repurchase plan | Not exceeding RMB1 billion | Not exceeding 6 months since the date when the share repurchase plan was reviewed and approved by the Board. | Implementation of equity incentive plan | 228,882,900 | - |
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2024
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
? Applicable □ Not applicable
I Enterprise Bonds
□ Applicable ? Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds
? Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB’0,000
| Bond name | Abbr. | Bond code | Date of issue | Value date | Maturity | Balance | Coupon rate | Way of redemption | Trade place |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2022 | 25 March 2025 | 200,000 | 3.50% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| Appropriate arrangement of the investors (if any) | Only for the qualified investors | ||||||||
| Applicable trade mechanism | Centralized bidding trade and negotiated block trade | ||||||||
| Risk of delisting (if any) and countermeasures | Not | ||||||||
Overdue bonds
□ Applicable ? Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the InvestorProtection Clause? Applicable □ Not applicableFor the renewable corporate bonds “22BOEY1”, 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle,the issuer shall have the right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeemthe due bonds at the end of the cycle. As at the date of approval of this report, the Company has not exercised the renewaloption of issuer. Additionally, as the above-mentioned renewable corporate bonds incorporate the option of issuer to postponeinterest payment, the Company has not exercised such option as at the date of approval of this report.
3. Intermediary
| Bond | Intermediary | Office address | Signature accountant | Contact person of intermediary | Contact number |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | China Securities Co., Ltd. | Rm. 2203, North Tower, Shanghai Securities Plaza, 528 Pudong Road South, Shanghai | Zhang Huan, Liu Jingyuan, Su Xing, Wang Ting | Zhu Mingqiang, Han Yong, Xu Tianquan | 021-68801569 |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | China Lianhe Credit Rating Co., Ltd. | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | None | Li Jie, Sun Changzheng | 010-85679696 |
Indicate by tick mark whether above intermediary changed in the Reporting Period
□Yes ? No
4. List of the Usage of the Raised Funds
Unit: RMB’0,000
| Bond code | Abbr. | Total amount | Promissory usage of the raised funds | Amount spent | Actual use of raised funds (by usage, excluding temporarily supplementing working capital) | Actual use of funds in each category | Unused amount | Operation of special account for raised funds (if any) | Rectification of raised funds for violation operation (if any) | Whether is consistent with the usage, using plan and other agreements stipulated in the raising specification |
| 149861 | 22BOEY1 | 200,000 | Capital increase in subsidiaries and supplementing the working capital | 200,000 | Equity investment, debt investment or fund contribution | Swapping with advance project investments of RMB1.9 billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with | 0 | N/A | N/A | Yes |
| the Company’s own funds, and the remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with the Company’s own funds. | |
| Supplementing the daily working capital ( excluding temporarily supplementing working capital) | Supplementing the working capital of RMB100 million |
The raised funds were used for project construction
□Applicable ? Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□Applicable ? Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable ? Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measuresas well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable ? Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□ Applicable ? Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting PeriodExceeding 10% of Net Assets up the Period-end of Last Year
□Applicable ? Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable ? Not applicable
VII Whether there was any Violation of Rules and Regulations during the ReportingPeriod
□Yes ? No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: RMB’0,000
| Item | 31 December 2024 | 31 December 2023 | Change |
| Current ratio | 1.24 | 1.59 | -22.01% |
| Debt/asset ratio | 52.43% | 52.81% | -0.38% |
| Quick ratio | 1.04 | 1.32 | -21.21% |
| Item | 2024 | 2023 | Change |
| Net profit before exceptional gains and losses | 383,712 | -63,256 | 706.60% |
| EBITDA/debt ratio | 32.25% | 27.05% | 5.20% |
| Interest cover (times) | 2.17 | 1.45 | 49.66% |
| Cash-to-interest cover (times) | 10.54 | 7.68 | 37.24% |
| EBITDA-to-interest cover (times) | 10.97 | 9.82 | 11.71% |
| Debt repayment ratio (%) | 100.00% | 100.00% | 0.00% |
| Interest payment ratio (%) | 100.00% | 100.00% | 0.00% |
Part X Financial Statements
I Independent Auditor’s Report
| Type of the independent auditor’s opinion | Standard unqualified audit opinion |
| Date of signing this report | 18 April 2025 |
| Name of the independent auditor | KPMG Huazhen Certified Public Accountants (LLP) |
| Reference number of auditor’s report | KPMGHZSZ No. 2511030 |
| Name of the certified public accountants | Su Xing, Liu Jingyuan |
AUDITOR’S REPORT
毕马威华振审字第2511030号
To the shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.(“BOE”), which comprise the consolidated and company balance sheets as at 31 December2024, the consolidated and company income statements, the consolidated and companycash flow statements, the consolidated and company statements of changes in shareholders’equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company financial position of BOE as at 31 December 2024, and theconsolidated and company financial performance and cash flows of BOE for the year thenended in accordance with the requirements of Accounting Standards for BusinessEnterprises issued by the Ministry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified PublicAccountants (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. Weare independent of BOE in accordance with the China Code of Ethics for Certified PublicAccountants (“the Code”), and we have fulfilled our other ethical responsibilities inaccordance with the Code. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the financial statements for the current period. These matterswere addressed in the context of our audit of the financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters.
| Revenue recognition | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 24 and “V. Notes to the consolidated financial statements” 45. | |
| The key audit matter | How the matter was addressed in our audit |
| The revenue of BOE and its subsidiaries (“BOE Group”) is mainly derived from the sale of products relating to display device across the domestic and overseas markets. The sales contracts / orders signed between BOE Group and its customers (mainly electronic equipment manufacturers) contain various trading terms. BOE Group judges the transfer timing of control according to the trading terms, and recognises revenue accordingly. Depending on the trading terms, the revenue is usually recognised when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be recognised in a correct period. | Our audit procedures to evaluate revenue recognition included the following: ? Evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ? Check key sales contracts/orders on a sampling basis to identify relevant trading terms, and evaluate whether the accounting policies for revenue recognition of BOE Group meet the requirements of the Enterprise Accounting Standards; ? On a sampling basis and according to different trading terms, reconcile the revenue recorded in the current year to relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recognised in accordance with the accounting policies of BOE Group; ? On a sampling basis and according to different trading terms, cross check the revenue recorded before and after the balance sheet date against relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recorded in the appropriate period; |
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters (continued)
| Revenue recognition (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 24 and “V. Notes to the consolidated financial statements” 45. | |
| The key audit matter | How the matter was addressed in our audit |
| ? Select a sample based on the characteristics and nature of customer's transaction, and perform confirmation procedures on the balance of accounts receivable as at the balance sheet date and the sales transaction amount during the current year; ? On a sampling basis, check the written-back of revenue after the balance sheet date (including sales discounts and sales returns, etc.) with relevant supporting documents to evaluate whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents. | |
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters (continued)
| Impairment of fixed assets and intangible assets | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 20 and “V. Notes to the consolidated financial statements” 15, 18. | |
| The key audit matter | How the matter was addressed in our audit |
| BOE Group principally generates revenue from the production and sale of display devices. Due to the fluctuation of supply-demand relationship of display devices and the influence of technology upgrading, the profit level of different production lines suffer dramatic fluctuation. As at 31 December 2024, the book value of fixed assets and intangible assets amounted to RMB216.168 billion, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2024 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate. | Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, evaluate the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, evaluate if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry; |
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters (continued)
| Impairment of fixed assets and intangible assets (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 20 and “V. Notes to the consolidated financial statements” 15, 18. | |
| The key audit matter | How the matter was addressed in our audit |
| We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias. | Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; evaluate how changes in key assumptions (individually or collectively) will lead to different results and assess whether there are indications of management bias in the selection of key assumptions; ? Consider whether the disclosure of impairment of fixed assets and intangible assets in the financial statements is consistent with relevant accounting standards. |
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Other Information
BOE’s management is responsible for the other information. The other information comprisesall the information included in 2024 annual report of BOE, other than the financial statementsand our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
Management is responsible for the preparation and fair presentation of the financialstatements in accordance with the requirements of Accounting Standards for BusinessEnterprises, and for the design, implementation and maintenance of such internal controlnecessary to enable that the financial statements are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing BOE’s financial reportingprocess.
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
? Conclude on the appropriateness of the management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on BOE’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause BOE to cease to continue as a going concern.
? Evaluate the overall presentation (including the disclosures), structure and content of the
financial statements and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
? Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financialstatements. We are responsible for the direction, supervision and performance of thegroup audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public AccountantsRegistered in the People’s Republic of China
Su Xing (Engagement Partner)
Beijing, China Liu Jingyuan
18 April 2025
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | V.1 | 74,252,625,215 | ? | 72,467,392,718 |
| Financial assets held for trading | V.2 | 3,116,435,963 | ? | 7,755,964,495 |
| Bills receivable | V.3 | 338,059,783 | ? | 375,577,011 |
| Accounts receivable | V.4 | 36,338,199,204 | ? | 33,365,416,490 |
| Receivables under financing | V.5 | 472,537,400 | ? | 408,534,622 |
| Prepayments | V.6 | 634,482,224 | ? | 558,659,780 |
| Other receivables | V.7 | 812,871,521 | ? | 726,659,207 |
| Inventories | V.8 | 23,313,464,392 | ? | 24,119,667,325 |
| Contract assets | V.9 | 150,871,486 | ? | 95,710,742 |
| Non-current assets due within one year | ? | 3,900,201 | ? | 8,683,381 |
| Other current assets | V.10 | 3,954,007,985 | ? | 3,308,338,931 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 143,387,455,374 | ? | 143,190,604,702 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term receivables | ? | 492,067 | ? | 3,341,844 |
| Long-term equity investments | V.11 | 13,533,271,302 | ? | 13,731,696,627 |
| Investments in other equity instruments | V.12 | 441,371,815 | ? | 494,629,577 |
| Other non-current financial assets | V.13 | 2,735,680,042 | ? | 2,253,778,325 |
| Investment properties | V.14 | 1,751,189,740 | ? | 1,412,553,446 |
| Fixed assets | V.15 | 204,904,419,511 | ? | 210,371,476,524 |
| Construction in progress | V.16 | 30,159,016,097 | ? | 29,670,115,546 |
| Right-of-use assets | V.17 | 754,408,280 | ? | 724,344,345 |
| Intangible assets | V.18 | 11,263,463,194 | ? | 11,565,585,700 |
| Development costs | VI.2 | 109,323,354 | ? | 166,977,531 |
| Goodwill | V.19 | 653,575,022 | ? | 704,705,586 |
| Long-term deferred expenses | V.20 | 598,444,923 | ? | 534,494,564 |
| Deferred tax assets | V.21 | 694,888,275 | ? | 396,877,020 |
| Other non-current assets | V.22 | 18,991,222,545 | ? | 3,965,918,458 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 286,590,766,167 | ? | 275,996,495,093 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 429,978,221,541 | ? | 419,187,099,795 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | V.23 | 1,563,317,166 | ? | 1,746,184,534 |
| Bills payable | V.24 | 1,399,557,969 | ? | 919,313,033 |
| Accounts payable | V.25 | 36,713,498,406 | ? | 32,977,603,351 |
| Advance payments received | ? | 118,971,193 | ? | 94,704,981 |
| Contract liabilities | V.26 | 2,083,836,158 | ? | 3,000,168,620 |
| Employee benefits payable | V.27 | 4,076,008,388 | ? | 3,100,911,276 |
| Taxes payable | V.28 | 1,576,606,596 | ? | 1,317,080,022 |
| Other payables | V.29 | 20,827,962,570 | ? | 19,487,760,965 |
| Non-current liabilities due within one year | V.30 | 43,506,539,611 | ? | 24,437,027,442 |
| Other current liabilities | V.31 | 3,394,971,140 | ? | 3,085,773,591 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 115,261,269,197 | ? | 90,166,527,815 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | V.32 | 100,932,391,740 | ? | 121,546,339,022 |
| Lease liabilities | V.33 | 631,418,986 | ? | 542,141,496 |
| Long-term payables | V.34 | 121,077,871 | ? | 171,611,393 |
| Provisions | V.35 | 1,652,566 | ? | 3,580,000 |
| Deferred income | V.36 | 4,544,617,931 | ? | 4,763,051,955 |
| Deferred tax liabilities | V.21 | 1,290,798,747 | ? | 1,694,639,729 |
| Other non-current liabilities | V.37 | 2,648,822,759 | ? | 2,500,522,066 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 110,170,780,600 | ? | 131,221,885,661 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 225,432,049,797 | ? | 221,388,413,476 |
| ? |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.38 | 37,645,016,203 | ? | 37,652,529,195 |
| Other equity instruments | V.39 | 2,043,402,946 | ? | 2,043,402,946 |
| Capital reserve | V.40 | 52,207,573,706 | ? | 52,113,580,746 |
| Less: Treasury shares | V.41 | 1,216,490,683 | ? | 462,036,240 |
| Other comprehensive income | V.42 | (1,171,823,864) | ? | (1,136,997,224) |
| Specific reserve | ? | 139,227,664 | ? | 66,472,402 |
| Surplus reserve | V.43 | 3,879,754,479 | ? | 3,571,778,635 |
| Retained earnings | V.44 | 39,410,894,857 | ? | 35,579,576,607 |
| ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | ? | 132,937,555,308 | ? | 129,428,307,067 |
| ? | ? | ? | ? | ? |
| Non-controlling interests | ? | 71,608,616,436 | ? | 68,370,379,252 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 204,546,171,744 | ? | 197,798,686,319 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 429,978,221,541 | ? | 419,187,099,795 |
???????
???????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | ? | 4,622,109,813 | ? | 4,255,943,334 |
| Accounts receivable | XVI.1 | 3,557,166,876 | ? | 4,870,413,096 |
| Prepayments | ? | 6,440,618 | ? | 4,807,079 |
| Other receivables | XVI.2 | 32,075,715,118 | ? | 28,381,628,538 |
| Inventories | ? | 31,198,429 | ? | 19,337,053 |
| Other current assets | ? | 143,433,811 | ? | 126,758,000 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 40,436,064,665 | ? | 37,658,887,100 |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term equity investments | XVI.3 | 203,191,541,965 | ? | 191,109,201,591 |
| Investments in other equity instruments | ? | 60,783,163 | ? | 62,020,419 |
| Other non-current financial assets | ? | 1,562,089,931 | ? | 1,493,778,324 |
| Investment properties | ? | 235,247,956 | ? | 246,605,801 |
| Fixed assets | ? | 1,542,132,717 | ? | 945,373,523 |
| Construction in progress | ? | 1,262,758,363 | ? | 612,320,190 |
| Right-of-use assets | ? | 47,104,764 | ? | 86,718,376 |
| Intangible assets | ? | 1,001,523,422 | ? | 997,974,193 |
| Long-term deferred expenses | ? | 290,214,066 | ? | 337,051,031 |
| Other non-current assets | ? | 320,460,049 | ? | 1,740,557,308 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 209,513,856,396 | ? | 197,631,600,756 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 249,949,921,061 | ? | 235,290,487,856 |
????
????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Accounts payable | ? | 503,922,556 | ? | 566,941,531 |
| Advance payments received | ? | 13,140,209 | ? | 10,542,897 |
| Contract liabilities | ? | 719,297 | ? | 74,594 |
| Employee benefits payable | ? | 453,127,454 | ? | 300,267,423 |
| Taxes payable | ? | 310,771,542 | ? | 279,057,718 |
| Other payables | XVI.4 | 3,471,340,673 | ? | 3,515,995,979 |
| Non-current liabilities due within one year | ? | 11,029,129,176 | ? | 4,029,679,945 |
| Other current liabilities | ? | 609,513,850 | ? | 77,354,731 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 16,391,664,757 | ? | 8,779,914,818 |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | XVI.5 | 41,257,600,000 | ? | 44,053,100,000 |
| Lease liabilities | ? | 555,400 | ? | 42,482,289 |
| Deferred income | ? | 47,137,540 | ? | 954,798,900 |
| Deferred tax liabilities | ? | 18,162,044 | ? | 222,201,768 |
| Other non-current liabilities | ? | 89,520,793,681 | ? | 79,800,793,681 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 130,844,248,665 | ? | 125,073,376,638 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 147,235,913,422 | ? | 133,853,291,456 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.38 | 37,645,016,203 | ? | 37,652,529,195 |
| Other equity instruments | V.39 | 2,043,402,946 | ? | 2,043,402,946 |
| Capital reserve | XVI.6 | 51,871,366,552 | ? | 51,741,820,724 |
| Less: Treasury shares | V.41 | 1,216,490,683 | ? | 462,036,240 |
| Other comprehensive income | XVI.7 | (267,884,908) | ? | (296,433,056) |
| Surplus reserve | V.43 | 3,879,754,479 | ? | 3,571,778,635 |
| Retained earnings | XVI.8 | 8,758,843,050 | ? | 7,186,134,196 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 102,714,007,639 | ? | 101,437,196,400 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 249,949,921,061 | ? | 235,290,487,856 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| I. Operating income | V.45 | 198,380,605,661 | ? | 174,543,445,895 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | V.45 | 168,221,949,573 | ? | 154,473,670,036 |
| Taxes and surcharges | V.46 | 1,296,146,896 | ? | 1,132,985,865 |
| Selling and distribution expenses | V.47 | 1,995,294,652 | ? | 1,896,331,536 |
| General and administrative expenses | V.48 | 6,218,672,130 | ? | 5,944,875,540 |
| Research and development expenses | V.49 | 13,123,309,231 | ? | 11,319,503,088 |
| Financial expenses | V.50 | 1,224,387,370 | ? | 1,150,310,546 |
| Including: Interest expenses | ? | 4,033,259,880 | ? | 3,536,889,899 |
| Interest income | ? | 2,285,948,395 | ? | 2,032,287,888 |
| Add: Other income | V.51 | 2,288,477,566 | ? | 4,202,333,156 |
| Investment income (“-” for losses) | V.52 | (540,900,653) | ? | 810,709,642 |
| Including: Income from investments in associates and joint ventures | ? | (752,455,175) | ? | 702,555,344 |
| Gains from changes in fair value | V.53 | 522,447,744 | ? | 291,542,233 |
| Credit losses | V.54 | (112,125,114) | ? | (18,562,198) |
| Impairment losses | V.55 | (3,624,262,580) | ? | (2,406,230,634) |
| Gains from asset disposals | V.56 | 96,175,264 | ? | 13,090,386 |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 4,930,658,036 | ? | 1,518,651,869 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | V.57 | 216,286,272 | ? | 383,996,163 |
| Less: Non-operating expenses | V.57 | 61,290,675 | ? | 69,649,357 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 5,085,653,633 | ? | 1,832,998,675 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | V.58 | 940,379,751 | ? | 1,463,127,346 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 4,145,273,882 | ? | 369,871,329 |
| ? | ? | ? | ? | ? |
| Shareholders of the Company | ? | 5,323,248,974 | ? | 2,547,435,360 |
| Non-controlling interests | ? | (1,177,975,092) | ? | (2,177,564,031) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | V.42 | (5,776,420) | ? | (18,318,697) |
| ? | ? | ? | ? | ? |
| Other comprehensive income (net of tax) attributable to shareholders of the Company | ? | (19,707,777) | ? | (114,919,973) |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | 45,589,853 | ? | (302,258,742) |
| 2. Changes in fair value of investments in other equity instruments | ? | (35,206,474) | ? | 4,408,730 |
| (2) Items that may be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | - | ? | 38,009 |
| 2. Translation differences arising from translation of foreign currency financial statements | ? | (30,091,156) | ? | 182,892,030 |
| Other comprehensive income (net of tax) attributable to non-controlling interests | ? | 13,931,357 | ? | 96,601,276 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 4,139,497,462 | ? | 351,552,632 |
| ? | ? | ? | ? | ? |
| Attributable to shareholders of the Company | ? | 5,303,541,197 | ? | 2,432,515,387 |
| Attributable to non-controlling interests | ? | (1,164,043,735) | ? | (2,080,962,755) |
| ? | ? | ? | ? | ? |
| VIII. Earnings per share | ? | ? | ? | ? |
| (1) Basic earnings per share | V.59 | 0.14 | ? | 0.06 |
| (2) Diluted earnings per share | V.59 | Not applicable? | ? | Not applicable |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| I. Operating income | XVI.9 | 5,558,110,352 | ? | 4,708,465,987 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | XVI.9 | 11,459,521 | ? | 12,627,567 |
| Taxes and surcharges | ? | 41,818,720 | ? | 43,605,220 |
| General and administrative expenses | ? | 1,944,464,914 | ? | 1,332,250,430 |
| Research and development expenses | ? | 2,452,578,625 | ? | 2,128,570,079 |
| Financial expenses | ? | 494,390,647 | ? | 480,003,968 |
| Including: Interest expenses | ? | 528,904,973 | ? | 545,603,838 |
| Interest income | ? | 39,349,343 | ? | 71,059,318 |
| Add: Other income | ? | 955,230,189 | ? | 951,291,761 |
| Investment income (“-” for losses) | XVI.10 | 1,708,144,852 | ? | 1,991,483,354 |
| Including: Income from investments in associates and joint ventures | ? | (476,270,739) | ? | 429,364,809 |
| Gains from changes in fair value | ? | 3,403,675 | ? | 49,498,773 |
| Credit losses | ? | (80,000,336) | ? | 5,490,866 |
| Gains from asset disposals | ? | 818 | ? | 5,077,109 |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 3,200,177,123 | ? | 3,714,250,586 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | ? | 6,601,784 | ? | 3,921,345 |
| Less: Non-operating expenses | ? | 22,272,166 | ? | 6,859,836 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 3,184,506,741 | ? | 3,711,312,095 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | ? | 105,274,860 | ? | 405,340,309 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 3,079,231,881 | ? | 3,305,971,786 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | XVI.7 | 29,074,708 | ? | (295,598,180) |
| ? | ? | ? | ? | ? |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | 30,126,376 | ? | (302,258,742) |
| 2. Changes in fair value of investments in other equity instruments | ? | (1,051,668) | ? | 6,660,562 |
| (2) Items that may be reclassified to profit or loss | ? | - | ? | - |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 3,108,306,589 | ? | 3,010,373,606 |
???
???
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 207,177,636,682 | ? | 180,947,736,116 |
| Refund of taxes | ? | 9,436,155,018 | ? | 10,373,888,040 |
| Proceeds from other operating activities | V.60(1) a | 2,601,966,374 | ? | 6,145,484,931 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 219,215,758,074 | ? | 197,467,109,087 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (139,974,564,163) | ? | (129,474,896,348) |
| Payment to and for employees | ? | (19,215,661,123) | ? | (18,253,350,198) |
| Payment of various taxes | ? | (4,938,746,118) | ? | (3,823,925,586) |
| Payment for other operating activities | V.60(1) b | (7,349,209,291) | ? | (7,613,110,071) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (171,478,180,695) | ? | (159,165,282,203) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | V.61(1) | 47,737,577,379 | ? | 38,301,826,884 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 59,316,324,819 | ? | 70,648,492,540 |
| Investment returns received | ? | 671,568,341 | ? | 569,248,170 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ? | 156,338,437 | ? | 62,750,260 |
| Net proceeds from acquisition of subsidiaries | V.61(2) | - | ? | 59,293,141 |
| Proceeds from other investing activities | V.60(2) a | 2,485,332,205 | ? | 3,940,488,690 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 62,629,563,802 | ? | 75,280,272,801 |
| ? | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (34,037,798,428) | ? | (24,807,796,061) |
| Payment for acquisition of investments | ? | (61,241,398,520) | ? | (79,608,953,781) |
| Net payment for acquisition of subsidiaries | V.61(2) | - | ? | (165,333,139) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (95,279,196,948) | ? | (104,582,082,981) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows used in investing activities | ? | (32,649,633,146) | ? | (29,301,810,180) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | 4,652,010,645 | ? | 3,291,140,600 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | ? | 4,652,010,645 | ? | 3,291,140,600 |
| Proceeds from borrowings | ? | 47,194,037,263 | ? | 27,341,860,631 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 51,846,047,908 | ? | 30,633,001,231 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| III. Cash flows from financing activities (continued): | ? | ? | ? | ? |
| Repayments of borrowings | ? | (49,117,270,919) | ? | (30,091,893,380) |
| Payment for redemption of debentures | ? | - | ? | (6,000,000,000) |
| Payment for dividends or interest | ? | (6,390,837,882) | ? | (8,306,333,083) |
| Including: Profits paid to non-controlling shareholders of subsidiaries | ? | (91,448,476) | ? | (72,650,624) |
| Payment for other financing activities | V.60(3) a | (1,855,318,097) | ? | (7,896,143,409) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (57,363,426,898) | ? | (52,294,369,872) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows used in financing activities | ? | (5,517,378,990) | ? | (21,661,368,641) |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 341,705,520 | ? | 372,295,921 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase/(decrease) in cash and cash equivalents | V.61(1) b | 9,912,270,763 | ? | (12,289,056,016) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 52,092,981,748 | ? | 64,382,037,764 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | V.61(3) | 62,005,252,511 | ? | 52,092,981,748 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 8,576,350,715 | ? | 4,312,367,550 |
| ?Refund of taxes | ? | 12,091 | ? | - |
| Proceeds from other operating activities | ? | 458,561,728 | ? | 622,801,775 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 9,034,924,534 | ? | 4,935,169,325 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (1,041,936,007) | ? | (1,098,622,995) |
| Payment to and for employees | ? | (1,348,047,244) | ? | (1,333,331,329) |
| Payment of various taxes | ? | (470,413,241) | ? | (433,065,340) |
| Payment for other operating activities | ? | (1,204,371,696) | ? | (1,099,330,089) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (4,064,768,188) | ? | (3,964,349,753) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | XVI.11(1) | 4,970,156,346 | ? | 970,819,572 |
| ? | ? | ? | ? | ? |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 2,807,425,581 | ? | 1,200,350,000 |
| Investment returns received | ? | 2,527,840,286 | ? | 955,365,976 |
| Net proceeds from disposal of fixed assets | ? | 842,917 | ? | 682,093 |
| Proceeds from other investing activities | ? | 6,942,812,478 | ? | 1,260,912,332 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 12,278,921,262 | ? | 3,417,310,401 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| II. Cash flows from investing activities (continued): | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (1,743,031,313) | ? | (618,917,399) |
| Payment for acquisition of investments | ? | (13,557,349,939) | ? | (16,691,342,703) |
| Payment for other investing activities | ? | (12,190,000,000) | ? | (5,468,000,000) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (27,490,381,252) | ? | (22,778,260,102) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash outflow used in investing activities | ? | (15,211,459,990) | ? | (19,360,949,701) |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from borrowings | ? | 18,520,000,000 | ? | 10,000,000,000 |
| Proceeds from other financing activities | ? | 11,220,000,000 | ? | 19,830,000,000 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 29,740,000,000 | ? | 29,830,000,000 |
| ? | ? | ? | ? | ? |
| Repayments of borrowings | ? | (14,318,800,000) | ? | (4,184,100,000) |
| Payment for redemption of debentures | ? | - | ? | (6,000,000,000) |
| Payment for dividends and interest | ? | (2,499,539,504) | ? | (3,751,590,381) |
| Payment for other financing activities | ? | (2,517,521,421) | ? | (397,385,776) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (19,335,860,925) | ? | (14,333,076,157) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from financing activities | ? | 10,404,139,075 | ? | 15,496,923,843 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 29,846,436 | ? | 30,657,074 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase/(decrease) in cash and cash equivalents | XVI.11(1) | 192,681,867 | ? | (2,862,549,212) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 4,249,329,821 | ? | 7,111,879,033 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | XVI.11(2) | 4,442,011,688 | ? | 4,249,329,821 |
???????
???????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 52,113,580,746 | ? | 462,036,240 | ? | (1,136,997,224) | ? | 66,472,402 | ? | 3,571,778,635 | ? | 35,579,576,607 | ? | 129,428,307,067 | ? | 68,370,379,252 | ? | 197,798,686,319 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (19,707,777) | ? | - | ? | - | ? | 5,323,248,974 | ? | 5,303,541,197 | ? | (1,164,043,735) | ? | 4,139,497,462 |
| 2. Shareholders’ contributions and decrease of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 4,652,010,645 | ? | 4,652,010,645 |
| (2) Repurchase of treasury shares | V.38/41 | - | ? | - | ? | - | ? | 999,872,378 | ? | - | ? | - | ? | - | ? | - | ? | (999,872,378) | ? | - | ? | (999,872,378) |
| (3) Cancellation of treasury shares | V.38/41 | (7,512,992) | ? | - | ? | (9,986,070) | ? | (17,499,062) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | ? | ? | - |
| (4) Equity-settled share-based payment | XII | - | ? | - | ? | 127,147,039 | ? | (227,918,873) | ? | - | ? | - | ? | - | ? | - | ? | 355,065,912 | ? | 9,581,064 | ? | 364,646,976 |
| (5) Others | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (10,000,000) | ? | (10,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 307,923,188 | ? | (307,923,188) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 70,000,000 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (70,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - | ? | (70,000,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,129,073,743) | ? | (1,129,073,743) | ? | (93,546,479) | ? | (1,222,620,222) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V.42/43/44 | - | ? | - | ? | - | ? | - | ? | (15,118,863) | ? | - | ? | 52,656 | ? | 15,066,207 | ? | - | ? | ? | ? | - |
| 5. Specific reserve | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 209,278,103 | ? | - | ? | - | ? | 209,278,103 | ? | 51,873,021 | ? | 261,151,124 |
| (2) Utilisation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (136,522,841) | ? | - | ? | - | ? | (136,522,841) | ? | (38,689,907) | ? | (175,212,748) |
| 6. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | V.11 | - | ? | - | ? | 14,652,743 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 14,652,743 | ? | - | ? | 14,652,743 |
| (2) Others | - | ? | - | ? | (37,820,752) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (37,820,752) | ? | (168,947,425) | ? | (206,768,177) | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,645,016,203 | ? | 2,043,402,946 | ? | 52,207,573,706 | ? | 1,216,490,683 | ? | (1,171,823,864) | ? | 139,227,664 | ? | 3,879,754,479 | ? | 39,410,894,857 | ? | 132,937,555,308 | ? | 71,608,616,436 | ? | 204,546,171,744 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 38,196,363,421 | ? | 8,176,366,808 | ? | 55,224,885,675 | ? | 3,508,201,911 | ? | (1,073,768,030) | ? | - | ? | 3,241,063,934 | ? | 35,829,465,307 | ? | 136,086,175,204 | ? | 65,954,391,821 | ? | 202,040,567,025 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (114,919,973) | ? | - | ? | - | ? | 2,547,435,360 | ? | 2,432,515,387 | ? | (2,080,962,755) | ? | 351,552,632 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 3,291,140,600 | ? | 3,291,140,600 |
| (2) Cancellation of treasury shares | V.38/41 | (543,834,226) | ? | - | ? | (2,244,946,976) | ? | (2,788,781,202) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| (3) Equity-settled share-based payment | XII | - | ? | - | ? | 309,120,206 | ? | (257,384,469) | ? | - | ? | - | ? | - | ? | - | ? | 566,504,675 | ? | 22,319,221 | ? | 588,823,896 |
| (4) Payment for capital of holders of other equity instruments | V.39 | - | ? | (5,967,915,094) | ? | (32,084,906) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (6,000,000,000) | ? | - | ? | (6,000,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 330,597,179 | ? | (330,597,179) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 118,551,232 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (118,551,232) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (283,600,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (2,296,367,348) | ? | (106,934,768) | ? | (2,403,302,116) |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V.42/43/44 | - | ? | - | ? | - | ? | - | ? | 51,690,779 | ? | - | ? | 117,522 | ? | (51,808,301) | ? | - | ? | - | ? | - |
| 5. Specific reserve | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 209,367,057 | ? | - | ? | - | ? | 209,367,057 | ? | 42,370,558 | ? | 251,737,615 |
| (2) Utilisation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (142,894,655) | ? | - | ? | - | ? | (142,894,655) | ? | (29,280,043) | ? | (172,174,698) |
| 6. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | - | ? | - | ? | 61,662,689 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 61,662,689 | ? | 1,229,195 | ? | 62,891,884 | |
| (2) Others | - | ? | - | ? | (1,205,055,942) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,205,055,942) | ? | 1,276,105,423 | ? | 71,049,481 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 52,113,580,746 | ? | 462,036,240 | ? | (1,136,997,224) | ? | 66,472,402 | ? | 3,571,778,635 | ? | 35,579,576,607 | ? | 129,428,307,067 | ? | 68,370,379,252 | ? | 197,798,686,319 |
?????
?????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | |||||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | ||||||||
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2024(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 51,741,820,724 | ? | 462,036,240 | ? | (296,433,056) | ? | 3,571,778,635 | ? | 7,186,134,196 | ? | 101,437,196,400 |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | 29,074,708 | ? | - | ? | 3,079,231,881 | ? | 3,108,306,589 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Repurchase of treasury shares | V.41 | - | ? | - | ? | - | ? | 999,872,378 | ? | - | ? | - | ? | - | ? | (999,872,378) |
| (2) Cancellation of treasury shares | V.38/41 | (7,512,992) | ? | - | ? | (9,986,070) | ? | (17,499,062) | ? | - | ? | - | ? | - | ? | - |
| (3) Equity-settled share-based payment | XII | - | ? | - | ? | 136,728,103 | ? | (227,918,873) | ? | - | ? | - | ? | - | ? | 364,646,976 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | 307,923,188 | ? | (307,923,188) | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 70,000,000 | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (70,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,129,073,743) | ? | (1,129,073,743) |
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The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | XVI.9/10 | - | ? | - | ? | - | ? | - | ? | (526,560) | ? | 52,656 | ? | 473,904 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | XVI.3 | - | ? | - | ? | 2,698,287 | ? | - | ? | - | ? | - | ? | - | ? | 2,698,287 |
| (2) Others | - | ? | - | ? | 105,508 | - | ? | - | - | ? | - | ? | 105,508 | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,645,016,203 | ? | 2,043,402,946 | ? | 51,871,366,552 | ? | 1,216,490,683 | ? | (267,884,908) | ? | 3,879,754,479 | ? | 8,758,843,050 | ? | 102,714,007,639 |
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These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 38,196,363,421 | ? | 8,176,366,808 | ? | 53,693,627,213 | ? | 3,508,201,911 | ? | 340,345 | ? | 3,241,063,934 | ? | 6,624,620,470 | ? | 106,424,180,280 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (295,598,180) | ? | - | ? | 3,305,971,786 | ? | 3,010,373,606 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Cancellation of treasury shares | V.38/41 | (543,834,226) | ? | - | ? | (2,244,946,976) | ? | (2,788,781,202) | ? | - | ? | - | ? | - | ? | - |
| (2) Equity-settled share-based payment | XII | - | ? | - | ? | 331,439,427 | ? | (257,384,469) | ? | - | ? | - | ? | - | ? | 588,823,896 |
| (3) Payment for capital of holders of other equity instruments | V.39 | - | ? | (5,967,915,094) | ? | (32,084,906) | ? | - | ? | - | ? | - | ? | - | ? | (6,000,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | 330,597,179 | ? | (330,597,179) | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 118,551,232 | ? | - | ? | - | ? | - | ? | - | ? | (118,551,232) | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (283,600,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (2,296,367,348) |
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The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | XVI.7/8 | - | ? | - | ? | - | ? | - | ? | (1,175,221) | ? | 117,522 | ? | 1,057,699 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | XVI.3/6 | - | ? | - | ? | (6,214,034) | ? | - | ? | - | ? | - | ? | - | ? | (6,214,034) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 51,741,820,724 | ? | 462,036,240 | ? | (296,433,056) | ? | 3,571,778,635 | ? | 7,186,134,196 | ? | 101,437,196,400 |
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These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao The head of the accounting department | (Company stamp) | |||||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | ||||||||
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.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 sharesestablished on 9 April 1993 in Beijing, with its head office located at Beijing. The parent of theCompany and the Company’s ultimate holding company is Beijing Electronics Holdings Co.,Ltd. (“Beijing Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main businesssegments: display business, Internet of Things (IoT) innovation business, sensor business,MLED business and smart medicine & engineering business. For information about thesubsidiaries of the Company, refer to Note VIII.
II. Basis of preparation
The financial statements have been prepared on a 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 ofAccounting Standards for Business Enterprises, which are also referred to as ChinaAccounting Standards (“CAS”), issued by the Ministry of Finance (“MOF”) of the People’sRepublic of China. These financial statements present truly and completely the consolidatedand company financial position of the Company as at 31 December 2024, and theconsolidated and company financial performance and cash flows of the Company for theyear then ended.
These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No.15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 2023.
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 theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements arepresented in Renminbi. Functional currency is determined by the Company and itssubsidiaries on the basis of the currency in which major income and costs are denominatedand settled. Some of the Company’s subsidiaries have functional currencies that are differentfrom the Company’s functional currency. Their financial statements have been translatedbased on the accounting policy set out in Note III.9.
5 Method used to determine the materiality threshold and the basis for selection
| Item | Materiality threshold |
| ? | ? |
| Significant receivables for which provisions for bad and doubtful are individually assessed recoveries or reversals and written-offs | Amount of the individual accounts receivable ≥ RMB50 million |
| Significant prepayments, contract liabilities, accounts payable and other payables with ageing of more than one year | Amount of the individual items exceeds 0.5% of the Group’s total assets |
| Significant construction projects in progress | Carrying amount of individual item at the end of the period exceeds RMB10 billion |
| Significant non-wholly-owned subsidiaries, joint ventures or associates | Total assets of non-wholly-owned subsidiaries, carrying amount of long-term equity investments in individual investee exceed 10% of the Group’s total assets; or total revenue of non-wholly-owned subsidiaries exceed 10% of the Group’s total revenue |
| Significant capitalised research and development projects | Accumulated expenditure of individual R&D project exceeds 0.5% of the Group’s total assets |
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6 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction or event constitutes a business combination when the Group obtains control ofone or more entities (or a group of assets or net assets) which meet the definition of abusiness. Business combinations are classified as either business combinations involvingenterprises under common control or business combinations not involving enterprises undercommon control.
For a transaction not involving enterprises under common control, the acquirer determineswhether an acquired set of assets constitutes a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is a business. If the concentration test is met, the set of assets is determined not tobe a business, no further assessment is needed. If the concentration test is not met, theGroup should perform the assessment according to the guidance on the determination of abusiness.
When the set of assets the Group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable asset and liability on the basis of their relative fairvalues at the date of acquisition. The accounting treatments for business combinationsdescribed below are not applied.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination inwhich all of the combining entities are ultimately controlled by the same party or parties bothbefore and after the business combination, and that control is not transitory. The assetsacquired and liabilities assumed are measured based on their carrying amounts in theconsolidated financial statements of the ultimate controlling party at the combination date.The difference between the share of carrying amount of the net assets acquired and theconsideration paid for the combination (or the total par value of shares issued) is adjustedagainst share premium in the capital reserve, with any excess deducted from surplus reserveand retained earnings sequentially. Any costs directly attributable to the combination arerecognised in profit or loss when incurred. The combination date is the date on which onecombining 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 businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. The Group, as the acquirer,the sum of the fair value of the assets paid (including the equity of the acquiree held beforethe acquisition date), liabilities incurred or assumed, and equity securities issued on theacquisition date, minus the fair value share of the identifiable net assets of the acquireeacquired in the merger on the acquisition date, after considering the impact of relevantdeferred income tax, if it is positive, it will be recognized as goodwill (see Note III.18). If it isnegative, it will be recognised in profit or loss for the current period. The costs of issuingequity or debt securities as a part of the consideration for the acquisition are included in thecarrying amounts of these equity or debt securities upon initial recognition. Other acquisition-related costs are expensed when incurred. Any difference between the fair value and thecarrying amount of the assets transferred as consideration is recognised in profit or loss. Theacquiree’s identifiable assets, liabilities and contingent liabilities, if the recognition criteria aremet, are recognised by the Group at their acquisition-date fair values. The acquisition date isthe date on which the acquirer obtains control of the acquiree.
7 Criteria of control and preparation of consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidatedfinancial statements comprise the Company and its subsidiaries. Control exists when theinvestor has all of the following: power over the investee; exposure, or rights, to variablereturns from its involvement with the investee; and the ability to affect those returns throughits power over the investee. The financial position, financial performance and cash flows ofsubsidiaries are included in the consolidated financial statements from the date that controlcommences until the date that control ceases.
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 asunrealised gains, unless they represent impairment losses that are recognised in full in thefinancial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combinationinvolving entities under common control, the financial statements of the subsidiary areincluded in the consolidated financial statements based on the carrying amounts of theassets and liabilities of the subsidiary in the financial statements of the ultimate controllingparty as if the combination had occurred at the date that the ultimate controlling party firstobtained control. The opening balances and the comparative figures of the consolidatedfinancial statements are also restated.
Where a subsidiary was acquired during the reporting period through a business combinationinvolving entities not under common control, the identifiable assets and liabilities of theacquired subsidiaries are included in the scope of consolidation from the date that controlcommences, based on the fair values of those identifiable assets and liabilities at theacquisition date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognised as investment income for the current period. The remaining equity investment isre-measured at its fair value at the date when control is lost, and any resulting gains orlosses are also recognised as investment income for the current period.
(4) Changes in non-controlling interests
Where the Company acquires more interest in a subsidiary from the subsidiary’s non-controlling shareholders or disposes of a portion of an interest in a subsidiary without losingcontrol, the difference between the portion of the interest in the subsidiary’s net assets beingacquired or disposed of and the amount of the consideration paid or received is adjusted tothe capital reserve (share premium) in the consolidated balance sheet, with any excessdeducted from surplus reserve and retained earnings sequentially.
8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdrawnon demand, and short-term, highly liquid investments that are readily convertible into knownamounts of cash and are subject to an insignificant risk of change in value.
9 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates onthe dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spotexchange rate at the balance sheet date. The resulting exchange differences are generallyrecognised in profit or loss, unless they arise from the re-translation of the principal andinterest of specific borrowings for the acquisition and construction of qualifying assets (seeNote III.16). Non-monetary items that are measured at historical cost in foreign currenciesare translated to Renminbi using the exchange rate at the transaction date. Non-monetaryitems that are measured at fair value in foreign currencies are translated using the exchangerate at the date the fair value is determined. The resulting exchange differences arerecognised in profit or loss, except for the differences arising from the re-translation of equityinvestments at fair value through other comprehensive income, which are recognised in othercomprehensive income.
In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding retained earnings and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses of foreign operation are translated to Renminbi atrates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. At the time of disposalof overseas operations, the relevant translation differences arising from translation of foreigncurrency financial statements is transferred from shareholders’ equity to the current profit andloss of disposal.
10 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments (see Note III.12),receivables, payables, loans and borrowings, debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.
Financial assets and financial liabilities are measured initially at fair value. For financialassets and financial liabilities measured at fair value through profit or loss, any relateddirectly attributable transaction costs are charged to profit or loss; for other categories offinancial assets and financial liabilities, any related directly attributable transaction costs areincluded in their initial costs. Trade receivables that do not have a significant financingcomponent or do not account for the significant financing component in one-year-or-lesscontracts under the practical expedient are initially measured at the transaction price inaccordance with Note III.24.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model underwhich a financial asset is managed and its contractual cash flow characteristics. Oninitial recognition, a financial asset is classified as measured at amortised cost, at fairvalue through other comprehensive income (“FVOCI”), or at fair value through profit orloss (“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless theGroup changes its business model for managing financial assets, in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.
A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:
- it is held under a business model whose objective is to hold assets to collectcontractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.
A financial asset is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:
- it is held under a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis,and the instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL.
The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets or both.The Group determines the business model for managing the financial assets accordingto the facts and based on the specific business objective for managing the financialassets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For the purposesof this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and forthe credit risk associated with the principal amount outstanding during a particularperiod of time and for other basic lending risks and costs, as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term thatcould change the timing or amount of contractual cash flows such that it would notmeet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains andlosses, including any interest or dividend income, are recognised in profit or lossunless the financial assets are part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effectiveinterest method. A gain or loss on a financial asset that is measured at amortisedcost and that is not part of a hedging relationship should be recognised in profit orloss when the financial asset is derecognised, reclassified, amortised under theeffective interest method or when an impairment gain or loss is recognised.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, and impairment and foreign exchange gains andlosses are recognised in profit or loss. Other net gains and losses are recognised inother comprehensive income. On derecognition, gains and losses accumulated inother comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised asincome in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or as financial liabilities measured atamortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liabilities) or if it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains andlosses, including any interest expense, are recognised in profit or loss, unless the financialliabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset and thenet amount is presented in the balance sheet when both of the following conditions aresatisfied:
- 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 settlethe financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
A financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or- the financial asset has been transferred; and although the Group neither transfers norretains substantially all of the risks and rewards of ownership of the financial asset, it doesnot retain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;- the sum of the consideration received from the transfer and, when the transferred financial
asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognised directly in other comprehensive income for the financial asset derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation(or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;- contract assets;- debt investments measured at FVOCI;- lease receivables
Financial assets measured at fair value, including debt investments or equity securities atFVTPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as thepresent value of all cash shortfalls (i.e. the difference between the cash flows due to theGroup in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected lifeof a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possiblewithin the 12 months after the balance sheet date (or a shorter period if the expected life ofthe instrument is less than 12 months).
Loss allowances for bills receivable, accounts receivable, receivables under financing andcontract assets arising from ordinary business activities such as sale of goods and provisionof services, as well as lease receivables arising from lease transactions are alwaysmeasured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimatedusing a provision matrix based on the Group’s historical credit loss experience, adjusted forfactors that are specific to the debtors and an assessment of both the current and forecastgeneral economic conditions at the balance sheet date.
Except for bills receivable, accounts receivable, receivables under financing, contract assets,and lease receivables, the Group measures loss allowances at an amount equal to 12-monthECLs for the following financial instruments, and at an amount equal to lifetime ECLs for allother financial instruments:
- Financial instruments that have been determined to have low credit risk at the balancesheet date; or- Financial instruments for which credit risk has not increased significantly since initial
recognition.
Provisions for bad and doubtful debts arising from receivables
Categories of groups for collective assessment based on credit risk characteristics and basisfor determination
| Item | Basis for recognition |
| ? | ? |
| Bills receivable | Based on the different credit risk characteristics of acceptors, the Group classifies bills receivable into two groups: bank acceptance bills and commercial acceptance bills. |
| Accounts receivable | Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group classifies accounts receivable into three groups, specifically: receivables from customers with high credit risk, receivables from customers with low credit risk and receivables from customers with medium credit risk. |
| Receivables under financing | The Group’s receivables under financing are bank acceptance bills held for dual purposes. As the accepting banks have high credit ratings, the Group considers all receivables under financing as a single group. |
| Other receivables | The Group’s other receivables mainly include cash pledges and deposits receivable, petty cash receivables due from employees, receivables due from related parties, dividends receivable, etc. Based on the nature of receivables and the credit risk characteristics of different counterparties, the Group classifies other receivables into three groups, specifically: receivables with high credit risk, receivables with low credit risk and receivables with medium credit risk. |
| Contract assets | Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group makes provisions for bad and doubtful debts arising from contract assets on the basis of all customers being one group without further segmentation by different customer types. |
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Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a lowrisk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term, and adverse changes in economic and business conditions inthe longer term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.
When determining whether the credit risk of a financial asset has increased significantlysince initial recognition, the Group considers reasonable and supportable information that isrelevant and available without undue cost or effort, including forward-looking information. Inparticular, the following information is taken into account:
- failure to make payments of principal or interest on their contractual due dates;- an actual or expected significant deterioration in a financial instrument’s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor;- existing or forecast changes in the technological, market, economic or legal environmentthat have a significant adverse effect on the debtor’s ability to meet its obligation to theGroup.
The Group determines that the credit risk on a financial asset has increased significantly if itis more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried atamortised cost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired’ when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:
- significant financial difficulties of the issuer or debtor;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the debtor’s financial difficulties, the Group
having granted to the debtor a concession that it would not otherwise consider;- it is probable that the debtor will enter bankruptcy or other financial reorganisation;- the disappearance of an active market for the financial asset because of financialdifficulties of the issuer or debtor.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognisedas an impairment gain or loss in profit or loss. Loss allowances for financial assets measuredat amortised cost are deducted from the gross carrying amount of the assets. For debtinvestments that are measured at FVOCI, the loss allowance is recognised in othercomprehensive income and not deducted from the carrying amount of the assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This generally occurs when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.
Subsequent recoveries of an asset that was previously written off are recognised as areversal of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instruments
The issuance of equity instruments is recognised at the actual issue price in shareholders’equity, relevant transaction costs are deducted from shareholders’ equity (capital reserve),with any excess deducted from surplus reserve and retained earnings sequentially.Consideration and transaction costs paid by the Company for repurchasing self-issued equityinstruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasuryshares. The entire repurchase expenditure is recorded as the cost of the treasury shares inthe reference register. Treasury shares are excluded from profit distributions and arepresented as a deduction from shareholders’ equity on the balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the extent of thetotal par value of the treasury shares cancelled. Where the cost of the treasury sharescancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury sharescancelled 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 incapital reserve (share premium); otherwise, the shortfall is deducted against capital reserve(share premium), surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition, perpetual bonds issued by the Group or their components are classifiedas financial assets, financial liabilities or equity instruments based on their contractual termsand economic substance with reference to the definition of financial assets, financial liabilitiesand equity instruments.
Perpetual bonds issued by the Group that should be classified as equity instruments arerecognised in equity based on the actual proceeds received. Any distribution of dividends orinterests during the instruments’ duration is treated as profit appropriation. When theperpetual bonds are redeemed according to the contractual terms, the redemption amount isrecognised as a deduction from equity.
11 Inventories
(1) Categories
Inventories include raw materials, work in progress, finished goods and reusable materials.Reusable materials include low-value consumables, packaging materials and other materialswhich can be used repeatedly but which do not meet the definition of fixed assets.
In addition to the purchase cost of raw materials, work in progress and finished goodsinclude direct labour costs and an appropriate allocation of production overheads based onnormal capacity.
(2) Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) Inventory count system
The Group maintains a perpetual inventory system.
(4) Amortisation method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are amortized byone-off write off method. The amortisation charge is included in the cost of the related assetsor recognised in profit or loss for the current period.
(5) Criteria and method for provision for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue. Any excess of the cost over the net realisable value of each category of inventories isrecognised as a provision for obsolete inventories, and is recognised in profit or loss.
The net realisable value of materials held for use in production is measured based on the netrealisable value of the finished goods in which they will be incorporated. The net realisablevalue of inventory held to satisfy sales or service contracts is measured based on thecontract price. If the quantities of inventories held by the Group exceed the quantitiesspecified in sales contracts, the net realisable value of the excess portion of inventories isbased on general selling prices.
12 Long-term equity investments
(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 thecarrying amount of the subsidiary’s equity in the consolidated financial statements ofthe ultimate controlling party at the combination date. The difference between theinitial investment cost and the carrying amount of the consideration given is adjustedto the share premium in the capital reserve, with any excess deducted from surplusreserve and retained earnings sequentially.
- For a long-term equity investment obtained through a business combination notinvolving entities under common control, the initial cost comprises the aggregate ofthe fair value of assets transferred, liabilities incurred or assumed, and equitysecurities issued by the Company, in exchange for control of the acquiree.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combinationis initially recognised at the amount of cash paid if the Group acquires theinvestment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments insubsidiaries are accounted for using the cost method for subsequent measurement.The Company recognises its share of the cash dividends or profit distributions declaredby the investee as investment income for the current period.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.12(3)) and rights to the net assets of the arrangement. Anassociate is an entity over which the Group has significant influence (see NoteIII.12(3)).
An investment in a joint venture or an associate is accounted for using the equitymethod for subsequent measurement, unless the investment is classified as held forsale (see Note III.31).
After acquiring the investment, the Group recognises its share of the investee’s profit orloss and other comprehensive income as investment income or losses and othercomprehensive income respectively, and adjusts the carrying amount of the investmentaccordingly. Once the investee declares any cash dividends or profit distributions, thecarrying amount of the investment is reduced by the amount attributable to the Group.Changes in the Group’s share of the investee’s owners’ equity, other than those arisingfrom the investee’s net profit or loss, other comprehensive income or profit distribution(referred to as “other changes in owners’ equity”), are recognised directly in theGroup’s equity, and the carrying amount of the investment is adjusted accordingly.
Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in theassociates or joint ventures. Unrealised losses resulting from transactions between theGroup and its associates or joint ventures are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in full inthe financial statements.
The Group discontinues recognising its share of further losses of the investee after thecarrying amount of the long-term equity investment and any long-term interest that insubstance forms part of the Group’s net investment in the joint venture or associate isreduced to zero, except to the extent that the Group has an obligation to assumeadditional losses. If the joint venture or associate subsequently reports net profits, theGroup resumes recognising its share of those profits only after its share of the profitshas fully covered the share of losses not recognised.
(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 existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s relevantactivities unilaterally;- Whether decisions relating to the investee’s relevant activities require the unanimousconsent of all participant parties that share control.
Significant influence is the power to participate in the financial and operating policy decisionsof an investee but is not control or joint control of those policies.
13 Investment properties
Investment properties are properties held either to earn rental income or for capitalappreciation or both. Investment properties are accounted for using the cost model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses. The cost of investment property, less its estimated residual value andaccumulated impairment losses, is depreciated or amortised using the straight-line methodover its estimated useful life, unless the investment property is classified as held for sale (seeNote III.31).
The estimated useful lives, residual value rates and depreciation rates of each class ofinvestment properties are as follows:
| ? | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Land use rights | 32 - 50 years | ? | 0.0% | ? | 2.0% - 3.1% |
| Buildings | 20 - 40 years | ? | 0% - 10.0% | ? | 2.3% - 5.0% |
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14 Fixed assets
(1) Recognition of fixed assets
The cost of a purchased fixed asset comprises the purchase price, related taxes, and anydirectly attributable expenditure for bringing the asset to working condition for its intendeduse. The cost of self-constructed assets is measured in accordance with the policy set out inNote III.15.
Where the parts of an item of fixed assets have different useful lives or provide benefits tothe Group in a different pattern, thus necessitating use of different depreciation rates ormethods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets arerecognised as assets when it is probable that the economic benefits associated with thecosts will flow to the Group, and the carrying amount of the replaced part is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss asincurred.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairmentlosses, is depreciated using the straight-line method over its estimated useful life, unless thefixed asset is classified as held for sale (see Note III.31).
The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as follows:
| Class | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Plant and buildings | 10 - 50 years | ? | 3% - 10% | ? | 1.8% - 9.7% |
| Equipment | 2 - 25 years | ? | 0 - 10% | ? | 3.6% - 50% |
| Others | 2 - 10 years | ? | 0 - 10% | ? | 9.0% - 50% |
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Useful lives, estimated residual values and depreciation methods are reviewed at least ateach year-end.
15 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.16), and any other costs directly attributable to bringing theasset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixedassets when it is ready for its intended use. No depreciation is recorded against constructionin progress.
The criteria according to which, construction projects in progress are transferred to fixedassets:
| Class | Criteria for the transfers to fixed assets |
| ? | ? |
| Plant and buildings | Satisfy the acceptance criteria and be available for its intended use |
| Machinery and equipment | Installation and commissioning are qualified, and be available for its intended use |
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When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.
16 Borrowing costs
Borrowing costs incurred that are directly attributable to the acquisition and construction of aqualifying asset are capitalised as part of the cost of the asset. Other borrowing costs arerecognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of anydiscount or premium on borrowing) to be capitalised in each accounting period is determinedas follows:
- Where funds are borrowed specifically for the acquisition and construction of a qualifying
asset, the amount of interest to be capitalised is the interest expense calculated usingeffective interest rates during the period less any interest income earned from depositingthe borrowed funds or any investment income on the temporary investment of those fundsbefore they are used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalised as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.
17 Intangible assets
(1) Useful life and amortisation methods
For an intangible asset with finite useful life, its cost less estimated residual value andaccumulated impairment losses is amortised using the straight-line method over its estimateduseful life, unless the intangible asset is classified as held for sale (see Note III.31).
The estimated useful lives, basis for determination and amortisation methods of intangibleassets are as follows:
| Item | Estimated useful life (years) | ? | Basis for determination | ? | Amortisation method |
| ? | ? | ? | ? | ? | ? |
| Land use rights | 20 - 50 years | ? | Terms of land use rights | ? | Straight-line method |
| Patent and proprietary technology | 5 - 20 years | ? | Terms of patents | ? | Straight-line method |
| Computer software | 3 - 10 years | ? | Estimated useful life | ? | Straight-line method |
| Others | 5 - 20 years | ? | Estimated useful life | ? | Straight-line method |
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Useful lives and amortisation methods of intangible assets with finite useful lives arereviewed at least at each year-end.
An intangible asset is regarded as having an indefinite useful life and is not amortised whenthere is no foreseeable limit to the period over which the asset is expected to generateeconomic benefits for the Group. At the balance sheet date, the Group does not have anyintangible assets with indefinite useful lives.
(2) The scope of research and development expenditures
The Group classifies all expenses directly related to the R&D activities as research anddevelopment (R&D) expenditure, including the employee benefits of R&D personnel, directinvestments, depreciation expenses and long-term deferred expenses, design expenses,equipment commissioning costs, amortisation expenses of intangible assets, developmentcosts incurred by an entrusted external party as well as other expenses. Expenditures oninternal research and development projects are classified into expenditures incurred duringthe research phase and expenditures incurred during the development phase.
(3) The basis for the classification of internal R&D projects under the research phase and the
development phase
- The phase of planned investigations to acquire new techniques and knowledge should beidentified as the research phase, which is characterised by, among other things, aplanned and exploratory approach.
- The phase of applying research results or other knowledge to a plan or design to producenew or substantially improved materials, devices, products, etc., prior to commercialproduction or use, shall be identified as the development phase, which is characterised byits relevance and greater likelihood of generating results.
(4) Expenditures on research and development
Expenditures on internal research and development projects are classified into expendituresincurred during the research phase and expenditures incurred during the developmentphase.
Expenditures during the research phase are expensed when incurred. Expenditures duringthe development phase are capitalised if development costs can be measured reliably, theproduct or process is technically and commercially feasible, and the Group intends to andhas sufficient resources to complete the development. Other development expenditures arerecognised as expenses in the period in which it is incurred.
When an enterprise sells products or by-products produced in the course of research anddevelopment, the proceeds and related cost are accounted for in accordance with CAS 14 –Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.
18 Goodwill
The initial cost of goodwill represents the excess of the cost of the acquisition over theacquirer’s interest in the fair value of the identifiable net assets of the acquiree under abusiness combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note III.20).
19 Long-term deferred expenses
Long-term deferred expenses are amortised using the straight-line method within the benefitperiod. The respective amortisation periods for such expenses are as follows:
| Item | Amortisation period (years) |
| ? | ? |
| Payment for public facilities construction and use | 10 - 15 years |
| Leasehold improvements | 2 - 10 years |
| Others | 2 - 10 years |
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20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:
- fixed assets- construction in progress- right-of-use assets- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses
If any indication exists, the recoverable amount of the asset is estimated. In addition, theGroup estimates the recoverable amounts of goodwill at each year-end, irrespective ofwhether there is any indication of impairment. For the purposes of impairment testing,goodwill is allocated to each asset group, or set of asset groups, that is expected to benefitfrom the synergies of the business combination.
The recoverable amount of an asset (or asset group or set of asset groups) is the higher ofits fair value (see Note III.21) less costs of disposal and the present value of its expectedfuture cash flows.
An asset group is composed of assets related to cash generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.
The present value of an asset’s expected future cash flows is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate 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 isless than its carrying amount. A provision for impairment of the asset is recognisedaccordingly to reduce the carrying amount to the recoverable amount. Impairment lossesrelated to an asset group or a set of asset groups are allocated first to reduce the carryingamount of any goodwill allocated to the asset group or set of asset groups, and then toreduce the carrying amount of the other assets in the asset group or set of asset groups on apro rata basis. However, such allocations would not reduce the carrying amount of an assetbelow the highest of its fair value less costs of disposal (if measurable), the present value ofits expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it should not be reversed in a subsequent period.
21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability inan orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the assetor liability at the measurement date, and the Group uses valuation techniques that areappropriate in the circumstances and for which sufficient data and other information areavailable 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 apresent obligation that can be estimated reliably, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle therelated present obligation. Where the effect of the time value of money is material, provisionsare determined by discounting the expected future cash flows. Factors pertaining to acontingency such as the risks, uncertainties and time value of money are taken into accountas a whole in reaching the best estimate. Where there is a continuous range of possibleoutcomes for the expenditure required, and each possible outcome in that range is as likelyas any other, the best estimate is the mid-point of that range. In other cases, the bestestimate is determined as follows:
- 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 isdetermined by weighting all possible outcomes by their associated probabilities.
The Group reviews the carrying amounts of provisions at the balance sheet date and adjuststheir carrying amounts to the current best estimates.
23 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for servicesreceived from employees, the payment is measured at the fair value of the equityinstruments granted to employees at the grant date. If the equity instruments granted donot vest until the completion of services for a period, or until the achievement of aspecified performance condition, the Group recognises an amount at each balance sheetdate during the vesting period based on the best estimate of the number of equityinstruments expected to vest according to newly obtained subsequent informationregarding changes in the number of employees expected to vest the equity instruments.The Group measures the services received at the grant-date fair value of the equityinstruments and recognises the costs or expenses as the services are received, with acorresponding increase in capital reserve.
24 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increases in shareholders’ equity, other thanincreases relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in a contract bytransferring control over relevant goods or services to the customers.
Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of thetransaction price that is allocated to each performance obligation. The stand-alone sellingprice is the price at which the Group would sell a promised good or service separately to acustomer. If a stand-alone selling price is not directly observable, the Group considers allinformation that is reasonably available to the Group and maximises the use of observableinputs to estimate the stand-alone selling price.
For a contract in which the Group grants a customer the option to acquire additional goods orservices (such as loyalty points, discount coupons for future purchases.), the Groupassesses whether the option provides a material right to the customer. If the option providesa material right, the Group recognises the option as a performance obligation, andrecognises revenue when those future goods or services are transferred or when the optionexpires. If the stand-alone selling price for a customer’s option to acquire additional goods orservices is not directly observable, the Group estimates it, taking into account all relevantinformation, including the difference in the discount that the customer would receive whenexercising the option or without exercising the option, and the likelihood that the option willbe exercised.
For a contract with a warranty, the Group analyses the nature of the warranty provided, if thewarranty provides the customer with a distinct service in addition to the assurance that theproduct complies with agreed-upon specifications, the Group recognises the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS 13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties. The Group recognises the transaction price onlyto the extent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved. To determine the transaction price for contracts inwhich a customer promises consideration in a form other than cash, the Group measures thenon-cash consideration at fair value. If the Group cannot reasonably estimate the fair valueof the non-cash consideration, the Group measures the consideration indirectly by referenceto the stand-alone selling price of the goods or services promised to the customer inexchange for the consideration. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the pricethat a customer would have paid for the promised goods or services if the customer had paidcash for those goods or services when (or as) they are transferred to the customer. Thedifference between the amount of promised consideration and the cash selling price isamortised using an effective interest method over the contract term. The Group does notadjust the consideration for any effects of a significant financing component if it expects, atcontract inception, that the period between when the Group transfers a promised good orservice to a customer and when the customer pays for that good or service will be one yearor less.
The Group satisfies a performance obligation over time if one of the following criteria is met;otherwise, the performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance;or- the Group’s performance does not create an asset with an alternative use to it and theGroup has an enforceable right to payment for performance completed to date.
For a performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.
For a performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of the relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the Groupconsiders the following indicators:
- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards of
ownership of the goods to the customer; and- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, based on whether it obtainscontrol of the specified good or service before that good or service is transferred to acustomer. The Group is a principal if it controls the specified good or service before that goodor service is transferred to a customer, and recognises revenue in the gross amount ofconsideration which it has received (or which is receivable). Otherwise, the Group is anagent, and recognises revenue in the amount of any fee or commission to which it expects tobe entitled. The fee or commission is the net amount of consideration that the Group retainsafter paying the other party the consideration, or is determined according to the establishedamount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when thecustomer obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount thatis expected to be returned), and recognises a refund liability for the products expected to bereturned. Meanwhile, an asset is recognised at an amount equal to the carrying amount ofthe product expected to be returned less any expected costs to recover those products(including potential decreases in the value of the returned products), and carry forward tocost in the amount of carrying amount of the transferred products less the above costs. Ateach balance sheet date, the Group updates its assessment of future sales return liability. Ifthere is any change, it is accounted for as a change in accounting estimate.
The Group grants a licence of intellectual properties to a customer, and it determineswhether the licence is transferred to the customer at a point in time or over time. If all of thefollowing criteria are met, the licence revenue is recognised as a performance obligationsatisfied over time. Otherwise, the licence revenue is recognised as a performance obligationsatisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake
activities that significantly affect the intellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negative
effects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as those
activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence to intellectual property only when (or as) the later of the followingevents occurs:
- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied)
For a change in the scope or price of a contract that is approved by the parties to thecontract, the Group accounts for the contract modification as follows:
- In cases where the additional promised goods or services are distinct and the price of thecontract increases by an amount of consideration that reflects the stand-alone sellingprices of the additional promised goods or services, the Group should account for thecontract modification as a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on or before the date of the contract modification, the Groupaccounts for the contract modification as if it were a termination of the existing contractand the creation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct fromthe goods or services transferred on or before the date of the contract modification, theGroup accounts for the contract modification as if it were a part of the existing contract.The effect that the contract modification has on revenue is recognised as an adjustment torevenue in the reporting period.
A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.10(6)). Accounts receivable is the Group’s right to consideration that isunconditional (only the passage of time is required). A contract liability is the Group’sobligation to transfer goods or services to a customer for which the Group has receivedconsideration (or an amount of consideration is due) from the customer.
The following is a description of accounting policies regarding revenue from the Group’sprincipal activities:
(1) Sale of goods
The sales contracts / orders signed between the Group and its customers usuallycontain various trading terms. Depending on the trading terms, customers obtaincontrol of the goods when the goods are delivered and received, or when they arereceived by the carrier. Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent thatit is highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur. Therefore, the amount of revenue recognised is adjusted forthe amount expected to be returned, which are estimated based on the historical data.The Group recognises a refund liability based on the amount expected to be returned.An asset is initially measured by reference to the former carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products). At each balance sheet date, theGroup updates the measurement of the refund liability for changes in expectationsabout the amount of returns. The above assets and liabilities are adjusted accordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period oftime according to the progress of the performance as the customer simultaneouslyreceives and consumes the benefits provided by the Group’s performance as theGroup performs. Otherwise, for performance obligation satisfied at a point in time, theGroup recognises revenue at the point in time at which the customer obtains control ofrelevant services.
25 Contract costs
Incremental costs of obtaining a contract are those costs that the Group incurs to obtain acontract with a customer that it would not have incurred if the contract had not beenobtained. The Group recognises as an asset the incremental costs of obtaining a contractwith a customer if it expects to recover those costs. Other costs of obtaining a contract areexpensed when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract;- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognised in profit or loss for the current period.
The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:
- the remaining amount of consideration that the Group expects to receive in exchange forthe goods or services to which the asset relates; less- the estimated costs that relate directly to providing those goods or services that have notyet been recognised as expenses.
26 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, and social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accrued at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
The defined contribution plans in which the Group participates include: Pursuant to therelevant laws and regulations of the People’s Republic of China, the Group participated in adefined contribution basic pension insurance plan and unemployment insurance plan in thesocial insurance system established and managed by government organisations, and annuityplan established by the Group in compliance with the national policy of the corporationannuity. The Group makes contributions to basic pension and unemployment insuranceplans based on the applicable benchmarks and rates stipulated by the government. Annuityis accrued at a certain proportion of the total wages of employees who voluntarily participatein the annuity plan. Basic pension insurance contributions payable are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.
(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 an employee’s employment before the employment contractexpires, or provides compensation under an offer to encourage employees to acceptvoluntary redundancy, a provision is recognised with a corresponding expense in profit orloss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits provided inan employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main features tothose affected by it.
27 Government grants
A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attached to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.
Those related to daily activities of the Company are included in other income or used to writeoff related cost based on the nature of economic businesses, or included in non-operatingincome and expense in respect of those not related to daily activities of the Company.
With respect to the government grants related to assets, if the Group first obtainsgovernment grants related to assets and then recognises the long-term assets purchasedand constructed, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages when related assets are initially depreciated or amortised; orthe deferred income is written off against the carrying amount of the asset when the assetbecomes ready for its intended status or intended use. If the Group obtains governmentgrants related to the assets after relevant long-term assets are put into use, deferred incomeis included in profit and loss based on a reasonable and systematic approach by stageswithin the remaining useful life of relevant assets, or the deferred income is written off againstthe carrying amount of relevant asset when the grants are obtained; the assets shall bedepreciated or amortised based on the carrying amount after being offset and the remaininguseful life of relevant assets.
A grant that compensates the Group for expenses or losses to be incurred in the future isrecognised as deferred income, and included in current income or offset against relatedexpenses in the periods in which the expenses or losses are recognised. Otherwise, thegrant is included in current income or offset against the related expenses directly.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if theinterest subsidy is appropriated to the lending bank which shall provide loans to the Group atthe policy-based preferential interest rate, the actual loan amount is used as the entry valueand relevant borrowing costs are calculated on the basis of the loan principal and thepreferential interest rate. If the interest subsidy is directly appropriated to the Group, relevantborrowing costs shall be offset by corresponding interest subsidy. If borrowing costs arecapitalised as part of the cost of the asset (see Note III.16), the interest subsidy shall be usedto offset relevant asset costs.
28 Specific reserve
The Group recognises a safety fund in the specific reserve pursuant to relevant governmentregulations, with a corresponding increase in the costs of the related products or expenses.
When the safety fund is subsequently used for revenue expenditure, the specific reserve isreduced accordingly. When the safety fund is subsequently used for the construction oracquisition of fixed assets, the Group recognises the capitalised expenditure incurred as thecost of the fixed assets when the related assets are ready for their intended use. In suchcases, the specific reserve is reduced by the amount that corresponds to the cost of the fixedassets and the credit side is recognised in the accumulated depreciation with respect to therelated fixed assets. Consequently, such fixed assets are not depreciated in subsequentperiods.
29 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that theyrelate to a business combination or items recognised directly in equity (including othercomprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxableincome 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 alegally enforceable right to set them off and also intends either to settle on a net basis or torealise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include deductible lossesand tax credits carried forward to subsequent periods. Deferred tax assets are recognised tothe extent that it is probable that future taxable profits will be available against whichdeductible temporary differences can be utilised.
Deferred tax is not recognised for temporary differences arising from the initial recognition ofassets or liabilities in a single transaction that is not a business combination, affects neitheraccounting profit nor taxable profit (or deductible loss) and does not give rise to equal taxableand deductible temporary differences. Deferred tax is also not recognised for taxabletemporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences thatwould follow from the expected manner of recovery or settlement of the carrying amounts ofthe assets and liabilities, using tax rates enacted at the balance sheet date that are expectedto be applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and isreduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reductions are reversed to the extent that it becomes probable that sufficient taxableprofits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all ofthe following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or- different taxable entities which intend either to settle the current tax liabilities andcurrent tax assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred taxliabilities or deferred tax assets are expected to be settled or recovered.
30 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. Acontract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.
For a contract that contains multiple separate lease components, the lessee and the lessorseparate the lease components and account for each lease component as a leaseseparately. For a contract that contains lease and non-lease components, the lessee and thelessor separate the lease components from the non-lease components.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencementdate.
The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to obtain the ownership of the lease asset by the end of the lease term,the right-of-use asset is depreciated over the remaining useful life of the underlying asset.Otherwise, the right-of-use asset is depreciated over the shorter of the lease term or theremaining useful life of the lease asset.
The lease liability is initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, ifthat rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each periodduring the lease term with a corresponding charge to profit or loss or included in the cost ofassets where appropriate. Variable lease payments not included in the measurement of thelease liability are charged to profit or loss or included in the cost of assets where appropriateas incurred.
Under the following circumstances after the lease commencement date, the Groupremeasures lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;- there is a change in future lease payments resulting from a change in an index or a rateused to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,extension or termination option, or the Group has exercised the extension or terminationoption in a different manner from the original assessment.
When the lease liability is remeasured, a corresponding adjustment is made to the carryingamount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of theright-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-termleases that have a lease term of 12 months or less and leases of low-value assets (a leasedasset is of low value individually when it is new). The Group recognises the lease paymentsassociated with these leases in profit or loss or as the cost of the assets where appropriateusing the straight-line method or other systematic basis over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or anoperating lease. A lease is classified as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than afinance lease.
When the Group is a sub-lessor, it assesses the lease classification of a sub-lease withreference to the right-of-use asset arising from the head lease, not with reference to theunderlying asset. If a head lease is a short-term lease to which the Group applies thepractical expedient described above, then it classifies the sub-lease as an operating lease.
Under a finance lease, at the commencement date, the Group recognises the finance leasereceivable and derecognises the asset under finance lease.
The Group recognises finance income over the lease term with a constant periodic rate ofreturn. The derecognition and impairment of the finance lease receivable are accounted forin accordance with the accounting policy in Note III.10. Variable lease payments not includedin the measurement of net investment in the lease are recognised as income as they areearned.
Lease receipts from operating leases are recognised as income using the straight-linemethod or other systematic basis over the lease term. Variable lease payments not includedin lease receipts are recognised as income as they are earned.
31 Assets held for sale and discontinued operations
(1) Non-current assets or disposal groups held for sale
The Group classifies a non-current asset or disposal group as held for sale when the carryingamount of a non-current asset or disposal group will be recovered through a sale transactionrather than through continuing use.
A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:
- According to the customary practices of selling such assets or disposal groups in similartransactions, the non-current asset or disposal group is available for immediate sale in itspresent condition;- The sale is highly probable to occur, that is, the Group has made a resolution on a saleplan and entered into a legally binding sales. The sale is expected to be completed withinone year.
Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.21) less costs to sell (except financial assets (see noteIII.10) and deferred tax assets (see note III.29)) initially and subsequently. Any excess of thecarrying amount over the fair value (see Note III.21) less costs to sell is recognised as animpairment loss in profit or loss.
(2) Discontinued operations
The Group classifies a separate component as a discontinued operation either upon disposalof the operation or when the operation meets the criteria to be classified as held for sale if itis separately identifiable and satisfies one of the following conditions:
- It represents a separate major line of business or a separate geographical area ofoperations;- It is part of a single coordinated plan to dispose of a separate major line of business or aseparate geographical area of operations;- It is a subsidiary acquired exclusively with a view to resale.
Where an operation is classified as discontinued in the current period, profit or loss fromcontinuing operations and profit or loss from discontinued operations are separatelypresented in the income statement for the current period. The comparative information forprofit or loss from discontinued operations, which used to present as profit or loss fromcontinuing operations in the prior period, is re-presented as profit or loss from discontinuedoperations in the comparative income statement.
32 Dividends distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognised as a liability at the balance sheetdate but are disclosed in the notes separately.
33 Related parties
If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under commoncontrol only from the State and that have no other related party relationships are notregarded as related parties.
In addition to the related parties stated above, the Company determines related partiesbased on the disclosure requirements of the Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.
34 Segment reporting
Reportable segments are identified based on operating segments which are determinedbased on the structure of the Group’s internal organisation, management requirements andinternal reporting system after taking the materiality principle into account. Two or moreoperating segments may be aggregated into a single operating segment if the segmentshave similar economic characteristics and are the same or similar in respect of the nature ofproducts and services, the nature of production processes, the types or classes of customersfor the products and services, the methods used to distribute the products or provide theservices, and the nature of the regulatory environment.
For segment reporting, inter-segment revenues are measured on the basis of the actualtransaction prices for such transactions, and segment accounting policies are consistent withthose used to prepare the consolidated financial statements.
35 Significant accounting estimates and judgements
The preparation of financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as the underlying assumptions and uncertainties involved are reviewed onan ongoing basis. Revisions to accounting estimates are recognised in the period in whichthe estimate is revised and in any future periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets such asfixed assets and intangible assets (see Notes III.14 and 17) and provision for impairment ofvarious types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16 and 18). Other significantaccounting estimates are as follows:
(i) Note V.21: Recognition of deferred tax assets;(ii) Note V.31: Warranty provisions;(iii) Note X: Valuation of fair value of financial instruments; and(iv) Note XII: Share-based payments.
Significant judgements made by the Group in the application of accounting policies are asfollows:
(i) Note VIII. 1(1): Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
36 Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2024, the Group has adopted the following revised accounting requirements and guidanceunder CASs newly issued by the Ministry of Finance (“MOF”).
- Classification of Liabilities as Current or Non-current” in CAS Bulletin No. 17 (Caikuai[2023] No. 21) (“CAS Bulletin No. 17”);
- The Accounting Treatment of Assurance-type Warranty that is not a Single PerformanceObligation” CAS Bulletin No. 18 (Caikuai [2024] No. 24) (“CAS Bulletin No. 18”).
(a) Main effects of the Group’s adoption of the above requirements and guidance
(i) Requirements on the Classification of Liabilities as Current or Non-current
According to CAS Bulletin No. 17, only the Group’s substantive right to defer thesettlement of liabilities for more than one year after the balance sheet date (“theright to defer the settlement of liabilities”) is considered when classifying theliquidity of liabilities; the subjective possibility of exercising the above right is notconsidered.
For liabilities arising from the Group’s loan arrangements, if the Group’s right to
defer the settlement of liabilities is subject to compliance with covenants specifiedin the loan arrangements (“covenants”), only the covenants on or before thebalance sheet date when classifying the liquidity of liabilities are considered; theeffect of covenants after the balance sheet date is not considered.
If the Group settles its liabilities by delivering its own equity instruments at theoption of the counterparty and classifies the above options as equity instrumentsand recognises them separately as the equity component of a compoundfinancial instrument in accordance with CAS 37- Presentation of FinancialInstruments, there will be no effect on the classification of the liquidity of theliabilities. However, there will be effects on the classification if the above optionscannot be classified as equity instruments.
The adoption of this requirement does not have a significant effect on thefinancial position and financial performance of the Group.
(ii) Presentation of Assurance-type Warranty Expenses
According to CAS Bulletin No. 18, the Group has presented assurance-typewarranty expenses accrued by the Group as “operating cost from principalactivities”, and no longer as “selling and distribution expenses”.
The Group has adjusted comparative information retrospectively.
(b) The effects on the financial statements
The effects on each of the line items in the consolidated income statement for the year2024 are as follows:
| ? | ? | Increase/ (decrease) in the line items as a result of applying new accounting policies |
| ? | ? | The Group |
| ? | ? | ? |
| Operating costs | ? | 2,144,172,010 |
| Selling and distribution expenses | ? | (2,144,172,010) |
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(c) The effects on the comparative financial statements
The effects on each of the line items in the consolidated income statement for the yearended 31 December 2023 are as follows:
| ? | The Group | ||||
| ? | Before adjustments | ? | The amounts of adjustments | ? | After adjustments |
| ? | ? | ? | ? | ? | ? |
| Operating costs | 152,633,061,367 | ? | 1,840,608,669 | ? | 154,473,670,036 |
| Selling and distribution expenses | 3,736,940,205 | ? | (1,840,608,669) | ? | 1,896,331,536 |
?
?
IV. Taxation
1 Main types of taxes and corresponding tax rates
| Tax type | ? | Tax basis | ? | Tax rate |
| ? | ? | ? | ? | ? |
| Value-added tax (VAT) | ? | According to tax laws, output VAT is calculated on product sales and taxable services revenue. VAT payable is determined by deducting input VAT from output VAT for the period | ? | 6%，9%，13% |
| Urban maintenance and construction tax | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 7%，5% |
| Education surcharges and local education surcharges | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 3%，2% |
| Corporate income tax | ? | Based on taxable profits | ? | 15% - 30% |
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2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2023: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatmentNo.28, corporate income tax for key advanced and high-tech enterprises supported by theState is applicable to a preferential tax rate of 15%.
On 30 November 2023, the Company renewed the High-tech Enterprise Certificate No.GR202311004505, which was entitled jointly by Beijing Municipal Science and TechnologyCommission, Beijing Municipal Financial Bureau, Beijing Municipal Tax Service, StateTaxation Administration. The Company is subject to corporate income tax rate of 15% sincethe date of certification with the valid period of three years.
Except that 32 subsidiaries such as Beijing BOE Optoelectronics Technology Co., Ltd. areapplicable to high-tech enterprise tax preference, 6 subsidiaries such as Chongqing BOEDisplay Lighting Co., Ltd. are applicable to encouraged enterprises in the WesternDevelopment, and 15% corporate income tax rate is applicable, and overseas subsidiariesare applicable to local tax rate, the tax rate applicable to other enterprises of the Group is25%.
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
| ? | 2024 | ? | 2023 |
| ? | RMB/ RMB equivalents | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? |
| Cash on hand | 1,528,764 | ? | 802,967 |
| Deposits with banks | 72,723,894,478 | ? | 70,593,964,639 |
| Other monetary funds | 1,527,201,973 | ? | 1,872,625,112 |
| ? | ? | ? | ? |
| Total | 74,252,625,215 | ? | 72,467,392,718 |
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Including: Total overseas deposits were equivalent to RMB6,539,879,671 (2023:
RMB6,120,969,123).
As at 31 December 2024, other monetary funds included deposits with securities companiesby the Group amounting to RMB85,440,549, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB595,018,149 was pledgedfor issuance of bills payable, and an equivalent to RMB846,743,275 was mainly deposits incommercial banks as security.
2 Financial assets held for trading
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | ? | ? | ? |
| - Structured deposit and wealth management products | 2,779,828,500 | ? | 7,476,126,776 |
| - Investment in equity instruments | 336,607,463 | ? | 279,837,719 |
| ? | ? | ? | ? |
| Total | 3,116,435,963 | ? | 7,755,964,495 |
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3 Bills receivable
(1) Classification of bills receivable
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 324,870,516 | ? | 342,699,932 |
| Commercial acceptance bills | ? | 13,218,845 | ? | 32,896,723 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 338,089,361 | ? | 375,596,655 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 29,578 | ? | 19,644 |
| ? | ? | ? | ? | ? |
| Total | ? | 338,059,783 | ? | 375,577,011 |
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All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
| Item | Pledged amount at the end of the year |
| ? | ? |
| Bank acceptance bills | 36,842,766 |
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(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
| Item | 2024 | ? | 2024 |
| ? | Amount derecognised | ? | Amount not derecognised |
| ? | ? | ? | ? |
| Bank acceptance bills | - | ? | 208,268,859 |
| Commercial acceptance bills | - | ? | 1,001,051 |
| ? | ? | ? | ? |
| Total | - | ? | 209,269,910 |
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For the year ended 31 December 2024, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2023:
Nil).
(4) Bills receivable by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Bank acceptance bills group | 324,870,516 | ? | 96% | ? | - | ? | 0% | ? | 324,870,516 |
| - Commercial acceptance bills group | 13,218,845 | ? | 4% | ? | 29,578 | ? | 0% | ? | 13,189,267 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 338,089,361 | ? | 100% | ? | 29,578 | ? | 0% | ? | 338,059,783 |
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(5) Movements of provisions for bad and doubtful debts
| ? | 2024 |
| ? | Commercial acceptance bills |
| ? | ? |
| Balance at the beginning of the year | 19,644 |
| Additions during the year | 29,578 |
| Recoveries or reversals during the year | (19,644) |
| Written-off during the year | - |
| ? | ? |
| Balance at the end of the year | 29,578 |
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4 Accounts receivable
(1) The Group’s accounts receivable are as follows:
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Accounts receivable | ? | 36,567,098,415 | ? | 33,500,667,967 |
| Less: Provision for bad and doubtful debts | ? | 228,899,211 | ? | 135,251,477 |
| ? | ? | ? | ? | ? |
| Total | ? | 36,338,199,204 | ? | 33,365,416,490 |
?
?
(2) The ageing analysis of accounts receivable is as follows:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 35,533,315,993 | ? | 32,716,203,140 |
| Over 1 year but within 2 years (inclusive) | ? | 493,435,884 | ? | 350,015,788 |
| Over 2 years but within 3 years (inclusive) | ? | 228,715,579 | ? | 191,517,633 |
| Over 3 years | ? | 311,630,959 | ? | 242,931,406 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 36,567,098,415 | ? | 33,500,667,967 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 228,899,211 | ? | 135,251,477 |
| ? | ? | ? | ? | ? |
| Total | ? | 36,338,199,204 | ? | 33,365,416,490 |
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The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 57,435,774 | ? | 0% | ? | 33,528,866 | ? | 58% | ? | 23,906,908 |
| - Customers with low credit risk | 603,585,563 | ? | 2% | ? | - | ? | 0% | ? | 603,585,563 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 35,906,077,078 | ? | 98% | ? | 195,370,345 | ? | 1% | ? | 35,710,706,733 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 36,567,098,415 | ? | 100% | ? | 228,899,211 | ? | 1% | ? | 36,338,199,204 |
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| ? | 31 December 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 24,192,778 | ? | 0% | ? | 21,753,190 | ? | 90% | ? | 2,439,588 |
| - Customers with low credit risk | 799,508,925 | ? | 2% | ? | - | ? | 0% | ? | 799,508,925 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 32,676,966,264 | ? | 98% | ? | 113,498,287 | ? | 0% | ? | 32,563,467,977 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 33,500,667,967 | ? | 100% | ? | 135,251,477 | ? | 0% | ? | 33,365,416,490 |
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(a) Criteria for collective assessment and details:
| Customer group | Basis |
| ? | ? |
| Customers with high credit risk | With special matters, litigations or the deterioration of customers’ credit status |
| Customers with low credit risk | Banks, insurance companies, large state-owned enterprises and public institutions |
| Customers with medium credit risk | Customers not included in groups above |
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(b) Assessment of ECLs on accounts receivable
At all times the Group measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of overduedays and the expected loss rate. According to the Group’s historical experience,different loss models are applicable to different customer groups.
(4) Movements of provisions for bad and doubtful debts:
| ? | 2024 | ||||||
| ? | Customers with high credit risk | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 21,753,190 | ? | - | ? | 113,498,287 | ? | 135,251,477 |
| Additions during the year | 14,498,238 | ? | - | ? | 106,227,398 | ? | 120,725,636 |
| Recoveries during the year | (2,440,317) | ? | - | ? | (11,960,332) | ? | (14,400,649) |
| Written-off during the year | (298,185) | ? | - | ? | (13,440,498) | ? | (13,738,683) |
| Foreign currency translation differences | 15,940 | ? | - | ? | 1,045,490 | ? | 1,061,430 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 33,528,866 | ? | - | ? | 195,370,345 | ? | 228,899,211 |
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| ? | 2023 | ||||||
| ? | Customers with high credit risk | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 59,921,373 | ? | - | ? | 59,958,424 | ? | 119,879,797 |
| Additions during the year | 4,972,817 | ? | - | ? | 71,147,926 | ? | 76,120,743 |
| Recoveries during the year | (43,645,120) | ? | - | ? | (17,261,740) | ? | (60,906,860) |
| Written-off during the year | (68,126) | ? | - | ? | (213,525) | ? | (281,651) |
| Foreign currency translation differences | 572,246 | ? | - | ? | (132,798) | ? | 439,448 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 21,753,190 | ? | - | ? | 113,498,287 | ? | 135,251,477 |
???
???
(5) Five largest accounts receivable and contract assets by debtor at the end of the year
The subtotal of the five largest accounts receivable and contract assets of the Group at theend of the year is RMB16,571,292,900, representing 45.14% of the total accounts receivableand contract assets.
5 Receivables under financing
(1) Receivables under financing by category
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 472,537,400 | ? | 408,534,622 |
???
???
(2) Receivables under financing that are endorsed or discounted but have not matured at the
end of the year:
| Item | 2024 | ? | 2024 |
| ? | Amount derecognised | ? | Amount not derecognised |
| ? | ? | ? | ? |
| Bank acceptance bills | 683,496,249 | ? | - |
???
???
6 Prepayments
(1) The Group’s prepayments by category:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Prepayment for electricity, water, gas and power | ? | 284,648,237 | ? | 238,019,515 |
| Prepayment for inventory | ? | 225,583,907 | ? | 202,223,873 |
| Others | ? | 124,250,080 | ? | 118,416,392 |
| ? | ? | ? | ? | ? |
| Total | ? | 634,482,224 | ? | 558,659,780 |
???????
???????
(2) The ageing analysis of prepayments is as follows:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||
| Ageing | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | 561,764,216 | ? | 89% | ? | 478,067,697 | ? | 86% |
| Over 1 year but within 2 years (inclusive) | 15,640,256 | ? | 2% | ? | 22,099,954 | ? | 4% |
| Over 2 years but within 3 years (inclusive) | 3,945,077 | ? | 1% | ? | 53,855,290 | ? | 9% |
| Over 3 years | 53,132,675 | ? | 8% | ? | 4,636,839 | ? | 1% |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 634,482,224 | ? | 100% | ? | 558,659,780 | ? | 100% |
???????
???????
The ageing is counted starting from the date when prepayments are recognised.
The total of the five largest prepayments of the Group at the end of the year isRMB226,268,106, representing 36% of the total prepayments.
7 Other receivables
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends receivable | 55,028,131 | ? | - | |
| Others | (1) | 757,843,390 | ? | 726,659,207 |
| ? | ? | ? | ? | ? |
| Total | ? | 812,871,521 | ? | 726,659,207 |
?
?
(1) Others
(a) The Group’s other payables are as follows:
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Other receivables | ? | 776,708,135 | ? | 739,769,833 |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
?
?
(b) The ageing analysis of the Group’s other receivables is as follows:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 357,915,532 | ? | 330,573,576 |
| Over 1 year but within 2 years (inclusive) | ? | 118,793,438 | ? | 121,561,167 |
| Over 2 years but within 3 years (inclusive) | ? | 19,227,857 | ? | 40,445,484 |
| Over 3 years | ? | 280,771,308 | ? | 247,189,606 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 776,708,135 | ? | 739,769,833 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
???????
???????
The ageing is counted starting from the date when other receivables are recognised.
(c) Other receivables by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 18,297,151 | ? | 2% | ? | 18,297,151 | ? | 100% | ? | - |
| - Amounts with low credit risk | 689,364,770 | ? | 89% | ? | - | ? | 0% | ? | 689,364,770 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with medium credit risk | 69,046,214 | ? | 9% | ? | 567,594 | ? | 1% | ? | 68,478,620 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 776,708,135 | ? | 100% | ? | 18,864,745 | ? | 2% | ? | 757,843,390 |
???????
???????
| ? | 31 December 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 12,515,014 | ? | 2% | ? | 12,515,014 | ? | 100% | ? | - |
| - Amounts with low credit risk | 705,496,057 | ? | 95% | ? | - | ? | 0% | ? | 705,496,057 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with medium credit risk | 21,758,762 | ? | 3% | ? | 595,612 | ? | 3% | ? | 21,163,150 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 739,769,833 | ? | 100% | ? | 13,110,626 | ? | 2% | ? | 726,659,207 |
??????
??????
(d) Movements of provisions for bad and doubtful debts
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? | ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? |
| ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total | ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 131,167 | ? | 464,445 | ? | 12,515,014 | ? | 13,110,626 | ? | 9,822 | ? | 6,947 | ? | 10,595,616 | ? | 10,612,385 |
| Additions during the year | 462,980 | ? | 100,000 | ? | 8,885,942 | ? | 9,448,922 | ? | 131,167 | ? | 464,145 | ? | 3,084,758 | ? | 3,680,070 |
| Reversals during the year | (31,754) | ? | (559,244) | ? | (3,067,731) | ? | (3,658,729) | ? | (9,822) | ? | (6,647) | ? | (334,930) | ? | (351,399) |
| Written-off during the year | - | ? | - | ? | (32,177) | ? | (32,177) | ? | - | ? | - | ? | (841,937) | ? | (841,937) |
| Other changes | - | ? | - | ? | (3,897) | ? | (3,897) | ? | - | ? | - | ? | 11,507 | ? | 11,507 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 562,393 | ? | 5,201 | ? | 18,297,151 | ? | 18,864,745 | ? | 131,167 | ? | 464,445 | ? | 12,515,014 | ? | 13,110,626 |
???????
???????
(e) The other receivables categorised by nature
| Nature of other receivables | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Amount due from equity transfer | ? | 200,000,000 | ? | 200,000,000 |
| Margins and deposits | Note | 394,212,834 | ? | 398,335,916 |
| Others | ? | 182,495,301 | ? | 141,433,917 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 776,708,135 | ? | 739,769,833 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
???????
???????
Note: As at 31 December 2024, an equivalent to RMB220,917,503 (2023:
RMB217,669,078) of the margins and deposits mainly represented productioncapacity deposits paid by the Group to suppliers.
(f) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year wasRMB475,484,404, most of which were deposits and amounts due from equity transfer.No provision is made for bad and doubtful debts after assessment.
8 Inventories
(1) The Group’s inventories by category:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||||||
| ? | Book value | ? | Provision for impairment of inventories/ Provision for impairment of costs to fulfil a contract with a customer | ? | Carrying amount | ? | Book value | ? | Provision for impairment of inventories/ Provision for impairment of costs to fulfil a contract with a customer | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 8,973,042,046 | ? | 1,763,382,653 | ? | 7,209,659,393 | ? | 9,443,911,152 | ? | 2,189,991,288 | ? | 7,253,919,864 |
| Work in progress | 5,803,359,611 | ? | 1,104,535,176 | ? | 4,698,824,435 | ? | 5,564,254,528 | ? | 1,144,952,516 | ? | 4,419,302,012 |
| Finished goods | 15,066,294,957 | ? | 3,954,314,368 | ? | 11,111,980,589 | ? | 16,215,828,399 | ? | 4,056,038,972 | ? | 12,159,789,427 |
| Consumables | 209,462,591 | ? | 677,753 | ? | 208,784,838 | ? | 189,084,809 | ? | - | ? | 189,084,809 |
| Costs to fulfil a contract with a customer | 84,215,137 | ? | - | ? | 84,215,137 | ? | 97,571,213 | ? | - | ? | 97,571,213 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,136,374,342 | ? | 6,822,909,950 | ? | 23,313,464,392 | ? | 31,510,650,101 | ? | 7,390,982,776 | ? | 24,119,667,325 |
???????
???????
The Group’s year-end balance of inventories included no capitalised borrowing costs (2023:
Nil).
At the year end, no inventories were pledged as security by the Group (2023: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
| ? | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 2,189,991,288 | ? | 1,169,380,689 | ? | (1,595,989,324) | ? | 1,763,382,653 |
| Work in progress | 1,144,952,516 | ? | 845,365,942 | ? | (885,783,282) | ? | 1,104,535,176 |
| Finished goods | 4,056,038,972 | ? | 4,235,259,606 | ? | (4,336,984,210) | ? | 3,954,314,368 |
| Consumables | - | ? | 1,563,667 | ? | (885,914) | ? | 677,753 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 7,390,982,776 | ? | 6,251,569,904 | ? | (6,819,642,730) | ? | 6,822,909,950 |
???????
???????
9 Contract assets
| ? | 31 December 2024 |
| ? | ? |
| Balance at the beginning of the year | 96,528,397 |
| ? | ? |
| Transfers from contract assets recognised at the beginning of the period to receivables | (93,653,977) |
| Increase in contract assets resulting from no unconditional right obtained | 148,773,456 |
| ? | ? |
| Sub-total | 151,647,876 |
| ? | ? |
| Less: Provision for bad and doubtful debts | 776,390 |
| ? | ? |
| Balance at the end of the year | 150,871,486 |
??????
??????
10 Other current assets
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 2,960,415,267 | ? | 2,512,924,348 |
| Input tax to be verified or deducted | ? | 503,287,770 | ? | 291,415,443 |
| Prepaid income taxes | ? | 112,183,664 | ? | 166,028,954 |
| Right to recover returned goods | ? | 166,513,664 | ? | 140,814,527 |
| Others | ? | 211,607,620 | ? | 197,155,659 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,954,007,985 | ? | 3,308,338,931 |
???????
???????
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Investments in joint ventures | 404,709,071 | ? | 400,375,826 |
| Investments in associates | 14,302,954,512 | ? | 14,392,984,350 |
| ? | ? | ? | ? |
| Sub-total | 14,707,663,583 | ? | 14,793,360,176 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 1,174,392,281 | ? | 1,061,663,549 |
| ? | ? | ? | ? |
| Total | 13,533,271,302 | ? | 13,731,696,627 |
???????
???????
(2) Movements of long-term equity investments during the year are as follows:
| ? | ? | ? | Movements during the year | ? | ? | ||||||||||||
| Investee | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Investment (loss) /income under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | ? | Others | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Joint ventures | 400,375,826 | ? | - | ? | - | ? | 4,333,196 | ? | - | ? | - | ? | - | ? | 49 | ? | 404,709,071 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Associates | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| VusionGroup SA (formely named “SES Imagotag SA Co., Ltd.”) | 5,092,823,075 | ? | - | ? | - | ? | (119,593,271) | ? | - | ? | - | ? | (35,644,762) | ? | (47,286,405) | ? | 4,890,298,637 |
| Erdos BOE Energy Investment Co., Ltd. | 1,808,344,074 | ? | - | ? | - | ? | (2,815,116) | ? | - | ? | 170,648 | ? | - | ? | - | ? | 1,805,699,606 |
| Tianjin Xianzhilian Investment Centre (Limited Partnership) | 1,875,744,723 | ? | - | ? | (52,025,505) | ? | (132,876,372) | ? | - | ? | - | ? | (928,314) | ? | - | ? | 1,689,914,532 |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,864,768,203 | ? | - | ? | - | ? | (501,218,917) | ? | 6,032,979 | ? | - | ? | (447,573,615) | ? | - | ? | 922,008,650 |
| Others | 3,751,304,275 | ? | 1,261,298,345 | ? | (2,207,044) | ? | (41,325,466) | ? | 40,461,820 | ? | 17,001,150 | ? | (35,716,235) | ? | 4,216,242 | ? | 4,995,033,087 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 14,392,984,350 | ? | 1,261,298,345 | ? | (54,232,549) | ? | (797,829,142) | ? | 46,494,799 | ? | 17,171,798 | ? | (519,862,926) | ? | (43,070,163) | ? | 14,302,954,512 |
| ? | |||||||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 14,793,360,176 | ? | 1,261,298,345 | ? | (54,232,549) | ? | (793,495,946) | ? | 46,494,799 | ? | 17,171,798 | ? | (519,862,926) | ? | (43,070,114) | ? | 14,707,663,583 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | 1,061,663,549 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 1,174,392,281 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 13,731,696,627 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 13,533,271,302 |
????
????
As at 31 December 2024, certain associates invested by the Group suffered loss and the Group did not have an obligation to assume additionallosses. Therefore, the Company discontinues recognising its share of further losses after the carrying amount of long-term equity investment isreduced to zero, the accumulated unrecognised investment losses amounted to RMB11,456,900 (2023: RMB27,004,563).
12 Investments in other equity instruments
(1) Investments in other equity instruments:
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ? | ? | ||||||
| Item | Balance at the beginning of the year | ? | Increase in investments | ? | Decrease in investments | ? | Gains or losses recognised in other comprehensive income during the year (“-” for losses) | ? | Others | ? | Balance at the end of the year | ? | Dividend income recognised for the year | ? | Accumulated gains or losses recognised in other comprehensive income (“-” for losses) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Listed equity instrument investment | 169,355,368 | ? | - | ? | - | ? | 52,072,670 | ? | 36,130,330 | ? | 257,558,368 | ? | 15,162,882 | ? | (125,489,785) |
| Unlisted equity instruments investment | 325,274,209 | ? | 609,769 | ? | (9,248,192) | ? | (82,099,706) | ? | (50,722,633) | ? | 183,813,447 | ? | 18,038,273 | ? | (102,869,917) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 494,629,577 | ? | 609,769 | ? | (9,248,192) | ? | (30,027,036) | ? | (14,592,303) | ? | 441,371,815 | ? | 33,201,155 | ? | (228,359,702) |
???
???
(2) Investments derecognised during the year:
| Item | Accumulated gains transferred to retained earnings due to derecognition | ? | Accumulated losses transferred to retained earnings due to derecognition | ? | Reason for derecognition |
| ? | ? | ? | ? | ? | ? |
| Ceribell INC | 14,592,303 | ? | - | ? | Transfers out from disposal |
???
???
13 Other non-current financial assets
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | 2,735,680,042 | ? | 2,253,778,325 |
| Including: Investments in equity instruments | 2,735,680,042 | ? | 2,253,778,325 |
?????
?????
14 Investment properties
| ? | ? | Land use rights | ? | Buildings | ? | Construction in progress | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 785,342,177 | ? | 1,130,308,269 | ? | 100,475,150 | ? | 2,016,125,596 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | ? | - | ? | 7,195,133 | ? | 48,827,787 | ? | 56,022,920 |
| - Transfers from fixed assets | ? | - | ? | 427,786,123 | ? | - | ? | 427,786,123 |
| Disposals during the year | ? | - | ? | (6,270,121) | ? | - | ? | (6,270,121) |
| Other changes | ? | - | ? | 149,302,937 | ? | (149,302,937) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 785,342,177 | ? | 1,708,322,341 | ? | - | ? | 2,493,664,518 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation or amortisation | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 195,861,681 | ? | 407,710,469 | ? | - | ? | 603,572,150 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? |
| - Charge for the year | ? | 16,392,531 | ? | 56,926,073 | ? | - | ? | 73,318,604 |
| - Transfers from fixed assets | ? | - | ? | 70,036,824 | ? | - | ? | 70,036,824 |
| Disposals during the year | ? | - | ? | (4,452,800) | ? | - | ? | (4,452,800) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 212,254,212 | ? | 530,220,566 | ? | - | ? | 742,474,778 |
| ? | ||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | ? | 573,087,965 | ? | 1,178,101,775 | ? | - | ? | 1,751,189,740 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | ? | 589,480,496 | ? | 722,597,800 | ? | 100,475,150 | ? | 1,412,553,446 |
???????
15 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
| Item | Plant and buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 75,988,186,206 | ? | 321,291,899,960 | ? | 14,562,205,110 | ? | 411,842,291,276 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 16,141,913 | ? | 788,778,243 | ? | 1,473,007,248 | ? | 2,277,927,404 |
| - Transfers from construction in progress | 3,724,603,362 | ? | 24,495,775,553 | ? | 1,747,401,008 | ? | 29,967,779,923 |
| Transfers to investment properties | (427,786,123) | ? | - | ? | - | ? | (427,786,123) |
| Transfers to construction in progress | - | ? | (607,182,082) | ? | (142,127,990) | ? | (749,310,072) |
| Disposals or written-offs during the year | (40,795,055) | ? | (504,619,197) | ? | (233,948,748) | ? | (779,363,000) |
| Written-down against government interest discounts | - | ? | (10,426,505) | ? | - | ? | (10,426,505) |
| Translation differences | 768,399 | ? | (64,866,054) | ? | 86,070 | ? | (64,011,585) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 79,261,118,702 | ? | 345,389,359,918 | ? | 17,406,622,698 | ? | 442,057,101,318 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 12,031,057,846 | ? | 177,593,093,857 | ? | 9,837,849,835 | ? | 199,462,001,538 |
| Charge for the year | 2,167,108,633 | ? | 32,345,754,147 | ? | 2,435,926,437 | ? | 36,948,789,217 |
| Transfers to investment properties | (70,036,824) | ? | - | ? | - | ? | (70,036,824) |
| Transfers to construction in progress | - | ? | (392,050,352) | ? | (117,486,322) | ? | (509,536,674) |
| Disposals or written-offs during the year | (23,890,897) | ? | (465,768,387) | ? | (184,227,907) | ? | (673,887,191) |
| Translation differences | 1,288,806 | ? | (59,933,269) | ? | (1,216,455) | ? | (59,860,918) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 14,105,527,564 | ? | 209,021,095,996 | ? | 11,970,845,588 | ? | 235,097,469,148 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 34,480 | ? | 1,738,196,473 | ? | 270,582,261 | ? | 2,008,813,214 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Charge for the year | 3,351,802 | ? | 142,324,506 | ? | 9,954,412 | ? | 155,630,720 |
| - Others | 817,463 | ? | - | ? | - | ? | 817,463 |
| Transfers to construction in progress | - | ? | (42,346,919) | ? | (12,861,390) | ? | (55,208,309) |
| Disposals or written-offs during the year | - | ? | (25,414,907) | ? | (29,425,522) | ? | (54,840,429) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 4,203,745 | ? | 1,812,759,153 | ? | 238,249,761 | ? | 2,055,212,659 |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 65,151,387,393 | ? | 134,555,504,769 | ? | 5,197,527,349 | ? | 204,904,419,511 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 63,957,093,880 | ? | 141,960,609,630 | ? | 4,453,773,014 | ? | 210,371,476,524 |
???????
???????
In 2024, some of the equipment of the Group is idle and there is no clear use plan. TheGroup evaluated the recoverable amount of these equipment and made provisions forimpairment of RMB155,630,720 (2023: RMB199,363,784) based on the evaluation results.
The recoverable amount of the relevant asset group is determined by reference to its fairvalue less costs of disposal and the present value of its expected future cash flows. The cashflow forecast period is determined based on the estimated remaining useful life of the asset,the cash flows over the estimated remaining useful life of the asset are determined accordingto financial budgets approved by the management, and the pre-tax discount rate isdetermined with reference to comparable companies and the relevant capital structure.
(2) Fixed assets pending certificates of ownership
As at 31 December 2024, fixed assets pending certificates of ownership totalledRMB1,898,846,096 (2023: RMB6,560,001,886) and certificates of ownership is still beingprocessed.
16 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||||||
| Item | Book value | ? | Provision for impairment | ? | Face value | ? | Book value | ? | Provision for impairment | ? | Face value |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE's 6th generation new semiconductor display device production line project | 10,629,806,006 | ? | - | ? | 10,629,806,006 | ? | 1,147,143,892 | ? | - | ? | 1,147,143,892 |
| Others | 19,606,680,983 | ? | 77,470,892 | ? | 19,529,210,091 | ? | 28,600,320,360 | ? | 77,348,706 | ? | 28,522,971,654 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,236,486,989 | ? | 77,470,892 | ? | 30,159,016,097 | ? | 29,747,464,252 | ? | 77,348,706 | ? | 29,670,115,546 |
???????
???????
(2) Movements of major construction projects in progress during the year
| Project | Budget | ? | Balance at the beginning of the year | ? | Additions during the year | ? | Written-down against interest discounts | ? | Transfers to fixed assets | ? | Other decreases | ? | Balance at the end of the year | ? | Percentage of actual cost to budget (%) | ? | Accumulated capitalised interest at the end of the year | ? | Interest capitalised in the current year | ? | Interest rate for capitalisation in the current year (%) | ? | Sources of funding |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE's 6th generation new semiconductor display device production line project | 29,000,000,000 | ? | 1,147,143,892 | ? | 9,952,312,682 | ? | - | ? | (469,650,568) | ? | - | ? | 10,629,806,006 | ? | 46.11% | ? | 90,216,409 | ? | 80,470,570 | ? | 2.95% | ? | Self-raised funds and borrowings |
?
17 Right-of-use assets
(1) As a lessee
| ? | Plant and buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 869,873,086 | ? | 15,789,766 | ? | 194,845,163 | ? | 1,080,508,015 |
| Additions during the year | 285,559,071 | ? | 3,725,855 | ? | 525,393 | ? | 289,810,319 |
| Reductions during the year | (43,927,050) | ? | (3,602,514) | ? | (4,841,901) | ? | (52,371,465) |
| Translation differences | (35,542,774) | ? | - | ? | (81,753) | ? | (35,624,527) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,075,962,333 | ? | 15,913,107 | ? | 190,446,902 | ? | 1,282,322,342 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 319,601,077 | ? | 6,410,099 | ? | 30,152,494 | ? | 356,163,670 |
| Charge for the year | 192,643,300 | ? | 7,876,013 | ? | 10,157,019 | ? | 210,676,332 |
| Reductions during the year | (20,426,328) | ? | (3,602,514) | ? | (1,042,871) | ? | (25,071,713) |
| Translation differences | (13,818,517) | ? | - | ? | (35,710) | ? | (13,854,227) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 477,999,532 | ? | 10,683,598 | ? | 39,230,932 | ? | 527,914,062 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning and the end of the year | - | ? | - | ? | - | ? | - |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 597,962,801 | ? | 5,229,509 | ? | 151,215,970 | ? | 754,408,280 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 550,272,009 | ? | 9,379,667 | ? | 164,692,669 | ? | 724,344,345 |
??????
??????
18 Intangible assets
(1) Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 7,924,529,154 | ? | 6,238,659,015 | ? | 2,277,221,781 | ? | 816,081,655 | ? | 17,256,491,605 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 389,406,887 | ? | 8,044,952 | ? | 70,243,638 | ? | - | ? | 467,695,477 |
| - Transfers from construction in progress | 13,096,315 | ? | - | ? | 209,602,483 | ? | - | ? | 222,698,798 |
| - Transfers from development costs | - | ? | 139,619,053 | ? | - | ? | - | ? | 139,619,053 |
| Translation differences | 3,881,979 | ? | (248,165) | ? | 324,363 | ? | 565,495 | ? | 4,523,672 |
| Disposals during the year | - | ? | - | ? | (17,271,779) | ? | - | ? | (17,271,779) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 8,330,914,335 | ? | 6,386,074,855 | ? | 2,540,120,486 | ? | 816,647,150 | ? | 18,073,756,826 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 830,130,337 | ? | 3,121,888,717 | ? | 1,410,837,304 | ? | 328,049,547 | ? | 5,690,905,905 |
| Charge for the year | 213,028,049 | ? | 589,238,249 | ? | 242,878,497 | ? | 65,331,441 | ? | 1,110,476,236 |
| Translation differences | 60,186 | ? | (248,165) | ? | 85,241 | ? | 344,988 | ? | 242,250 |
| Disposals during the year | - | ? | - | ? | (16,978,433) | ? | - | ? | (16,978,433) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,043,218,572 | ? | 3,710,878,801 | ? | 1,636,822,609 | ? | 393,725,976 | ? | 6,784,645,958 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | - | ? | - | ? | - |
| Charge for the year | - | ? | 25,647,674 | ? | - | ? | - | ? | 25,647,674 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | 25,647,674 | ? | - | ? | - | ? | 25,647,674 |
| ? | |||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 7,287,695,763 | ? | 2,649,548,380 | ? | 903,297,877 | ? | 422,921,174 | ? | 11,263,463,194 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 7,094,398,817 | ? | 3,116,770,298 | ? | 866,384,477 | ? | 488,032,108 | ? | 11,565,585,700 |
???????
???????
19 Goodwill
(1) Changes in goodwill
| Name of investee | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Display Sci-tech Co., Ltd. (“Chengdu Display Sci-tech”) | 537,038,971 | ? | - | ? | - | ? | 537,038,971 |
| Nanjing BOE Display Technology Co., Ltd. (“Nanjing Display Technology”) | 155,714,415 | ? | - | ? | - | ? | 155,714,415 |
| BOE Healthcare Investment & Management Co., Ltd. | 146,460,790 | ? | - | ? | - | ? | 146,460,790 |
| Beijing Yinghe Century Co., Ltd. | 42,940,434 | ? | - | ? | - | ? | 42,940,434 |
| BOE HC SemiTek Corporation (“HC SemiTek”) | 29,596,088 | ? | - | ? | - | ? | 29,596,088 |
| Beijing Zhonghe Ultra High Definition Collaborative Technology Center Co., Ltd | 14,285,847 | ? | - | ? | - | ? | 14,285,847 |
| K-Tronics (Suzhou) technology Co., Ltd. | 8,562,464 | ? | - | ? | - | ? | 8,562,464 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876 | ? | - | ? | - | ? | 4,423,876 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 939,022,885 | ? | - | ? | - | ? | 939,022,885 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Display Sci-tech Co., Ltd. | (147,755,754) | ? | - | ? | - | ? | (147,755,754) |
| BOE Healthcare Investment & Management Co., Ltd. | (82,137,669) | ? | (51,130,564) | ? | - | ? | (133,268,233) |
| Beijing BOE Optoelectronics Technology Co., Ltd. | (4,423,876) | ? | - | ? | - | ? | (4,423,876) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (234,317,299) | ? | (51,130,564) | ? | - | ? | (285,447,863) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | 704,705,586 | ? | (51,130,564) | ? | - | ? | 653,575,022 |
???????
???????
(2) Provision for impairment of goodwill
The recoverable amount of the asset group to which the above goodwill relates is determinedbased on the present value of expected future cash flows. When predicting the present valueof cash flow, the cash flow in the next 5 years is determined based on the financial budgetapproved by the management. The cash flow in the years after the 5-year financial budgetwill remain stable. The pre-tax discount rate is determined with reference to comparablecompanies and related capital structures.
20 Long-term deferred expenses
| ? | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Technology royalty fees prepaid | 333,718,713 | ? | 25,377,702 | ? | (71,002,922) | ? | 288,093,493 |
| Others | 200,775,851 | ? | 210,016,686 | ? | (100,441,107) | ? | 310,351,430 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 534,494,564 | ? | 235,394,388 | ? | (171,444,029) | ? | 598,444,923 |
???????
???????
21 Deferred tax assets / deferred tax liabilities
(1) Deferred tax assets and liabilities
| ? | 2024 | ? | 2023 | ||||
| Item | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Accumulated losses | 3,787,640,423 | ? | 586,142,140 | ? | 2,748,927,099 | ? | 426,287,990 |
| Provision for impairment of assets | 813,547,069 | 139,856,263 | 586,093,818 | 98,130,637 | |||
| Lease liabilities | 502,310,310 | ? | 110,285,658 | ? | 564,279,038 | ? | 119,336,111 |
| Others | 1,298,567,979 | ? | 206,999,637 | ? | 576,540,216 | ? | 99,639,021 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 6,402,065,781 | ? | 1,043,283,698 | ? | 4,475,840,171 | ? | 743,393,759 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (348,395,423) | ? | ? | ? | (346,516,739) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 694,888,275 | ? | ? | ? | 396,877,020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Revaluation due to business combinations involving entities not under common control and Depreciation of fixed assets | (6,973,869,010) | ? | (1,143,270,888) | ? | (8,900,128,679) | ? | (1,487,690,187) |
| Long-term equity investments | (1,487,863,171) | ? | (282,505,936) | ? | (2,113,902,264) | ? | (389,497,116) |
| Right-of-use assets | (503,216,511) | ? | (101,062,209) | ? | (600,669,199) | ? | (130,538,444) |
| Others | (511,688,145) | ? | (112,355,137) | ? | (203,263,744) | ? | (33,430,721) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (9,476,636,837) | ? | (1,639,194,170) | ? | (11,817,963,886) | ? | (2,041,156,468) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 348,395,423 | ? | ? | ? | 346,516,739 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (1,290,798,747) | ? | ? | ? | (1,694,639,729) |
???????
???????
(2) Details of unrecognised deferred tax assets
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Deductible temporary differences | 23,454,408,247 | ? | 23,132,234,962 |
| Deductible tax losses | 66,975,969,671 | ? | 57,936,466,170 |
| ? | ? | ? | ? |
| Total | 90,430,377,918 | ? | 81,068,701,132 |
???????
???????
As at 31 December 2024, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to the uncertaintythat there will be sufficient taxable income to cover these deductible differences in futureperiods, the deferred income tax assets were not recognised in consideration of prudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
| Year | 2024 | ? | 2023 | |
| ? | ? | ? | ? | ? |
| 2024 | ? | - | ? | 308,958,033 |
| 2025 | ? | 637,426,137 | ? | 883,311,469 |
| 2026 | ? | 1,070,157,082 | ? | 1,202,044,391 |
| 2027 | ? | 1,431,984,146 | ? | 2,385,376,981 |
| 2028 | ? | 3,433,591,756 | ? | 3,527,170,592 |
| 2029 | ? | 6,862,197,069 | ? | 5,008,814,339 |
| 2030 | ? | 4,250,636,379 | ? | 4,200,121,737 |
| 2031 | ? | 2,712,347,426 | ? | 2,586,384,422 |
| 2032 | ? | 21,489,965,319 | ? | 23,919,302,827 |
| 2033 | ? | 13,370,606,261 | ? | 13,399,325,173 |
| 2034 | ? | 10,955,646,330 | ? | - |
| Non-fixed term | 761,411,766 | ? | 515,656,206 | |
| ? | ? | ? | ? | ? |
| Total | ? | 66,975,969,671 | ? | 57,936,466,170 |
???????
???????
22 Other non-current assets
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Certificates of deposits and time deposits | 13,348,874,212 | - | |
| Prepayment for construction and purchase of fixed assets | 4,518,996,586 | ? | 2,483,239,768 |
| Others | 1,123,351,747 | ? | 1,482,678,690 |
| ? | ? | ? | ? |
| Total | 18,991,222,545 | ? | 3,965,918,458 |
???????
???????
23 Short-term loans
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Pledged loans | 243,791,874 | ? | 23,498,395 |
| Guaranteed loans | 1,027,353,266 | ? | 1,311,144,222 |
| Unsecured loans | 292,172,026 | ? | 411,541,917 |
| ? | ? | ? | ? |
| Total | 1,563,317,166 | ? | 1,746,184,534 |
?
?
As at 31 December 2024, no short-term loan was past due (2023: Nil).
24 Bills payable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Bank acceptance bills | 1,390,526,726 | ? | 919,313,033 |
| Commercial acceptance bills | 9,031,243 | ? | - |
| ? | ? | ? | ? |
| Total | 1,399,557,969 | ? | 919,313,033 |
???????
???????
There is no due but unpaid bill payable at the end of the year. The bills above are all duewithin one year.
25 Accounts payable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Sales payments payable | 36,713,498,406 | ? | 32,977,603,351 |
?
?
As at 31 December 2024, the Group had no significant accounts payable with ageing of morethan one year.
26 Contract liabilities
(1) Contract liabilities are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Sale of goods | 2,083,836,158 | ? | 3,000,168,620 |
??????
??????
Contract liabilities primarily relate to the Group’s advances from goods purchase and salecontracts. The Group receives a certain proportion of advances as agreed in contract whenentering into the contract with customers. The revenue related to the contracts will berecognised when the Group satisfies its performance obligations.
(2) Significant changes in the contract liabilities of the Group are as follows:
| ? | 2024 |
| ? | ? |
| Balance at the beginning of the year | 3,000,168,620 |
| ? | ? |
| Revenue recognised that was included in the contract liability balance at the beginning of year | (2,779,202,988) |
| Increase of contract liabilities due to cash received at the end of the year | 1,862,870,526 |
| ? | ? |
| Balance at the end of the year | 2,083,836,158 |
???
???
27 Employee benefits payable
(1) Employee benefits payable:
| ? | Note | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 3,044,568,227 | ? | 18,512,715,190 | ? | (17,528,556,385) | ? | 4,028,727,032 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 53,121,125 | ? | 1,895,073,898 | ? | (1,902,947,026) | ? | 45,247,997 |
| Termination benefits | ? | 3,221,924 | ? | 29,761,343 | ? | (30,949,908) | ? | 2,033,359 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,100,911,276 | ? | 20,437,550,431 | ? | (19,462,453,319) | ? | 4,076,008,388 |
???????
???????
| ? | Note | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,656,369,348 | ? | 16,850,640,827 | ? | (16,462,441,948) | ? | 3,044,568,227 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 58,051,832 | ? | 1,848,632,320 | ? | (1,853,563,027) | ? | 53,121,125 |
| Termination benefits | ? | 104,111,643 | ? | 50,931,357 | ? | (151,821,076) | ? | 3,221,924 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,818,532,823 | ? | 18,750,204,504 | ? | (18,467,826,051) | ? | 3,100,911,276 |
??????
??????
(2) Short-term employee benefits
| ? | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | 1,917,285,682 | ? | 14,930,402,847 | ? | (14,137,157,644) | ? | 2,710,530,885 |
| Staff welfare | - | ? | 1,235,790,293 | ? | (1,235,790,293) | ? | - |
| Social insurance | 37,193,021 | ? | 893,705,699 | ? | (896,458,516) | ? | 34,440,204 |
| - Medical insurance | 35,066,829 | ? | 836,299,073 | ? | (839,065,366) | ? | 32,300,536 |
| - Work-related injury insurance | 2,126,192 | ? | 57,406,626 | ? | (57,393,150) | ? | 2,139,668 |
| Housing fund | 19,697,119 | ? | 1,045,337,798 | ? | (1,040,320,725) | ? | 24,714,192 |
| Labour union fee, staff and workers’ education fee | 1,046,342,699 | ? | 401,911,495 | ? | (211,755,032) | ? | 1,236,499,162 |
| Staff and workers’ bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 3,496,497 | ? | 5,567,058 | ? | (7,074,175) | ? | 1,989,380 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,044,568,227 | ? | 18,512,715,190 | ? | (17,528,556,385) | ? | 4,028,727,032 |
???????
???????
| ? | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | 1,689,488,356 | ? | 13,369,970,316 | ? | (13,142,172,990) | ? | 1,917,285,682 |
| Staff welfare | - | ? | 1,200,381,109 | ? | (1,200,381,109) | ? | - |
| Social insurance | 45,026,603 | ? | 866,656,861 | ? | (874,490,443) | ? | 37,193,021 |
| - Medical insurance | 42,596,285 | ? | 818,538,486 | ? | (826,067,942) | ? | 35,066,829 |
| - Work-related injury insurance | 2,430,318 | ? | 48,118,375 | ? | (48,422,501) | ? | 2,126,192 |
| Housing fund | 29,798,139 | ? | 1,034,105,760 | ? | (1,044,206,780) | ? | 19,697,119 |
| Labour union fee, staff and workers’ education fee | 871,474,749 | ? | 362,090,148 | ? | (187,222,198) | ? | 1,046,342,699 |
| Staff and workers’ bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 28,292 | ? | 17,436,633 | ? | (13,968,428) | ? | 3,496,497 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,656,369,348 | ? | 16,850,640,827 | ? | (16,462,441,948) | ? | 3,044,568,227 |
????
????
(3) Post-employment benefits – defined contribution plans
| ? | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 31,997,380 | ? | 1,601,749,795 | ? | (1,605,859,723) | ? | 27,887,452 |
| Unemployment insurance | 1,040,396 | ? | 54,220,057 | ? | (54,332,380) | ? | 928,073 |
| Annuity | 20,083,349 | ? | 239,104,046 | ? | (242,754,923) | ? | 16,432,472 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 53,121,125 | ? | 1,895,073,898 | ? | (1,902,947,026) | ? | 45,247,997 |
???????
???????
| ? | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 37,012,623 | ? | 1,550,009,517 | ? | (1,555,024,760) | ? | 31,997,380 |
| Unemployment insurance | 1,320,821 | ? | 51,043,742 | ? | (51,324,167) | ? | 1,040,396 |
| Annuity | 19,718,388 | ? | 247,579,061 | ? | (247,214,100) | ? | 20,083,349 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 58,051,832 | ? | 1,848,632,320 | ? | (1,853,563,027) | ? | 53,121,125 |
??????
??????
28 Taxes payable
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Corporate income tax | 661,144,508 | ? | 502,726,541 |
| Value-added tax (VAT) | 314,302,588 | ? | 96,556,759 |
| Urban construction tax | 243,831,131 | ? | 309,488,421 |
| Education surcharges and local education surcharges | 174,228,317 | ? | 223,104,253 |
| Individual income tax | 42,608,326 | ? | 39,311,660 |
| Others | 140,491,726 | ? | 145,892,388 |
| ? | ? | ? | ? |
| Total | 1,576,606,596 | ? | 1,317,080,022 |
???????
???????
29 Other payables
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | - | ? | 175,698 |
| Dividends payable | ? | 42,861,753 | ? | 39,014,714 |
| Others | (1) | 20,785,100,817 | ? | 19,448,570,553 |
| ? | ? | ? | ? | ? |
| Total | ? | 20,827,962,570 | ? | 19,487,760,965 |
???????
???????
(1) Others
The Group’s other payables by category are as follows:
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Projects and equipment | ? | 15,590,702,070 | ? | 13,556,738,142 |
| Fund transaction (Note) | ? | 3,236,033,067 | ? | 3,182,963,067 |
| Margins and deposits | ? | 581,371,160 | ? | 764,238,522 |
| Repurchase obligation of restricted shares | V.41 | 228,786,210 | ? | 457,401,616 |
| Others | ? | 1,148,208,310 | ? | 1,487,229,206 |
| ? | ? | ? | ? | ? |
| Total | ? | 20,785,100,817 | ? | 19,448,570,553 |
??
??
The Group’s significant other payables aged over one year are payables of projects andequipment.
Note: The Group's other payables as at 31 December 2024 were amounts and interest due
to original controlling shareholders of Nanjing Display Technology and ChengduDisplay Technology, with the interest rates of 2.175% and 0%, respectively.
30 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-term loans due within one year, lease liabilities, long-term payables and contribution fromminority shareholders with redemption provisions.
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Long-term loans due within one year | V.32 | 42,892,065,934 | ? | 24,221,150,789 |
| Lease liabilities due within one year | V.33 | 147,060,968 | ? | 168,698,260 |
| Long-term payables due within one year | V.34 | 22,944,576 | ? | 47,178,393 |
| Contribution from minority shareholders with redemption provisions | V.37 | 444,468,133 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 43,506,539,611 | ? | 24,437,027,442 |
?
?
31 Other current liabilities
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Warranty provisions | 2,508,912,990 | ? | 2,751,418,713 |
| Others | 886,058,150 | ? | 334,354,878 |
| ? | ? | ? | ? |
| Total | 3,394,971,140 | ? | 3,085,773,591 |
??????
??????
The other current liabilities of the Group were warranty provisions. The warranty provisionsmainly relate to the expected after-sales repair warranty to the customers. The provision isestimated by the management, based on historical claim experience and current actual salesoutcomes.
32 Long-term loans
| ? | Note ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Pledged loans | ? | 702,831,586 | ? | 815,374,959 |
| Loans secured by mortgages | ? | 60,149,714,863 | ? | 67,886,121,454 |
| Guaranteed loans | ? | 3,528,124,014 | ? | 4,721,896,695 |
| Unsecured loans | ? | 79,443,787,211 | ? | 72,344,096,703 |
| Less: Long-term loans due within one year | V.30 | 42,892,065,934 | ? | 24,221,150,789 |
| ? | ? | ? | ? | ? |
| Total | ? | 100,932,391,740 | ? | 121,546,339,022 |
???????
???????
33 Lease liabilities
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Long-term lease liabilities | ? | 778,479,954 | ? | 710,839,756 |
| Less: Lease liabilities due within one year | V.30 | 147,060,968 | ? | 168,698,260 |
| ? | ? | ? | ? | ? |
| Total | ? | 631,418,986 | ? | 542,141,496 |
??????
??????
During the year ended 31 December 2024, income from short-term leases and leases of low-value assets which are accounted for using the practical expedient as well as sub-leasingright-of-use assets for which the Group, as a lessee, was not significant.
34 Long-term payables
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Obligations under finance leases | ? | 144,022,447 | ? | 218,789,786 |
| Less: obligations under finance leases due within one year | V.30 | 22,944,576 | ? | 47,178,393 |
| ? | ? | ? | ? | ? |
| Total | ? | 121,077,871 | ? | 171,611,393 |
???????
???????
As at 31 December 2024, the Group sold and leased back some of its machinery andequipment as well as construction in progress. Since asset sales and lease transactions areinterrelated, and it is almost certain that they will be repurchased after the lease term expires,the Group conducts accounting treatment according to mortgage loans and presents them aslong-term payables.
35 Provisions
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Outstanding litigation | 1,652,566 | ? | 3,580,000 |
???
???
36 Deferred income
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Amounts recognised in other income | ? | Other changes | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Related to assets | 3,758,611,328 | ? | 419,981,983 | ? | (576,945,669) | ? | (22,495,397) | ? | 3,579,152,245 |
| Related to income | 1,004,440,627 | ? | 456,060,502 | ? | (491,151,584) | ? | (3,883,859) | ? | 965,465,686 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,763,051,955 | ? | 876,042,485 | ? | (1,068,097,253) | ? | (26,379,256) | ? | 4,544,617,931 |
???????
???????
37 Other non-current liabilities
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Contribution of non-controlling interests with redemption provisions | 2,047,376,157 | ? | 2,500,522,066 |
| Others | 601,446,602 | ? | - |
| ? | ? | ? | ? |
| Total | 2,648,822,759 | ? | 2,500,522,066 |
???????
???????
The contribution of non-controlling interests with redemption provisions is mainly due to theredemption obligation of the Company to the non-controlling interests of Fuzhou BOE. TheCompany recognises the above non-controlling interests contribution as a financial liabilitywhich is subsequently measured at the cost of amortisation and will be repurchased at theagreed price for the period from 2025 and 2034 according to the agreement, of which thepart due in 2025 will be listed as non-current liabilities due within one year.
38 Share capital
| ? | ? | ? | Changes during the year | ? | ? | ||||
| ? | Balance at the beginning of the year | ? | Issuance of new shares | ? | Cancellation of treasury shares | ? | Sub-total | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total shares | 37,652,529,195 | ? | - | ? | (7,512,992) | ? | (7,512,992) | ? | 37,645,016,203 |
???????
???????
On 4 June 2024, the Company repurchased and cancelled 2,547,779 shares of restrictedshares at China Securities Depository and Clearing Corporation Limited Shenzhen Branch.After the completion of the cancellation procedures, the total shares will be changed from37,652,529,195 shares to 37,649,981,416 shares.
On 9 December 2024, the Company repurchased and cancelled 4,965,213 shares ofrestricted shares at China Securities Depository and Clearing Corporation Limited ShenzhenBranch. After the completion of cancellation, the total share capital of the Company changedfrom 37,649,981,416 shares to 37,645,016,203 shares.
39 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
| Outstanding financial instruments | Issuance date | ? | Accounting classification | ? | Interest rate | ? | Issuance price | ? | Quantity | ? | Amount | ? | Maturity date or renewal status | ? | Conditions for conversion | ? | Conversion status |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 22BOEY1 | 24 March 2022 | ? | Equity instrument | ? | 3.50% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
???????
???????
(2) Major terms
On 24 March 2022, with the approval document No.1801 [2019] of the China SecuritiesRegulatory Commission (“CSRC”), the Company issued renewable corporate bonds toqualified investors. The full name of these bonds was Renewable Corporate Bond PubliclyIssued by BOE Technology Group Co., Ltd. (digital economy) in 2022 (the First Phase),which referred to as 22BOEY1 (“2022 bond”).
2022 bond has a base term of 3 years and take every three interest-bearing years as aperiod. The Company is entitled to choose to extend the maturity by 1 period at the end ofthe agreed base term or at the end of each extended period, or choose to fully derecognisethe 2022 bond at the end of the period. The nominal interest rate of the 2022 bond is fixedduring the first period, and then is reset once every period. The nominal interest rate in thefirst period is the initial benchmark interest rate plus the initial spread, and the nominalinterest rate in the subsequent period is adjusted to the current benchmark interest rate plusthe initial spread and 300 basis points. Therefore, when the Company exercises the renewaloption, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase significantly. The 2022 bond have an issuer’s right to defer thepayment of interest. Unless a mandatory interest payment event occurs (includingdistributions to ordinary shareholders and decrease of registered capital). At each interestpayment date of the bonds, the Company may choose at its discretion whether to defer thepayment of the current interest as well as all the deferred interests and the yields under thisterm until the next interest payment date without being subjected to any limit on the numberof interest deferring attempts.
As at 31 December 2024, the actual issuance of the 2022 bond amounted toRMB2,000,000,000 in total, and the Company considers that the renewable corporate bondsdo not meet the definition of financial liabilities, and therefore will charge the total amount ofthe issuance to other equity instruments after deducting underwriting fees and othertransaction costs.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at
the end of the year:
| ? | At the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Accumulative interest | ? | At the end of the year | ||||||||||
| Outstanding financial instruments | Quantity | ? | Carrying amount | ? | Quantity | ? | Carrying amount | ? | Quantity | ? | Carrying amount | ? | Charge for the year | ? | Paid during the year | ? | Quantity | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 22BOEY1 | 20,000,000 | ? | 2,043,402,946 | ? | - | ? | - | ? | - | ? | - | ? | 70,000,000 | ? | (70,000,000) | ? | 20,000,000 | ? | 2,043,402,946 |
???????
???????
(4) Relevant information regarding amounts attributable to holders of equity instruments
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Equity attributable to shareholders of the Company | 132,937,555,308 | ? | 129,428,307,067 |
| - Equity attributable to ordinary shareholders of the Company | 130,894,152,362 | ? | 127,384,904,121 |
| - Equity attributable to holders of the Company’s other equity instruments | 2,043,402,946 | ? | 2,043,402,946 |
| Equity attributable to non-controlling shareholders | 71,608,616,436 | ? | 68,370,379,252 |
| - Equity attributable to non-controlling ordinary shareholders | 71,608,616,436 | ? | 68,370,379,252 |
| - Equity attributable to non-controlling shareholders of other equity instruments | - | ? | - |
???????
???????
(5) Accrued interest on holders of other equity instruments
In 2024, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB70,000,000 on renewablecorporate bonds from undistributed profits and paid interest of RMB70,000,000 on renewablecorporate bonds.
40 Capital reserve
| Item | 1 January 2024 | ? | Additions during the period | ? | Reductions during the period | ? | 31 December 2024 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Share premium | ? | 50,340,686,263 | ? | - | ? | (71,738,763) | ? | 50,268,947,500 |
| Other capital reserves | ? | 1,772,894,483 | ? | 165,731,723 | ? | - | ? | 1,938,626,206 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 52,113,580,746 | ? | 165,731,723 | ? | (71,738,763) | ? | 52,207,573,706 |
???????
???????
41 Treasury shares
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Treasury shares | 462,036,240 | ? | 999,872,378 | ? | (245,417,935) | ? | 1,216,490,683 |
??????
??????
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the 28
th meeting of the 10
thsession of the Board ofDirectors meeting and the 9
th meeting of the 10
thsession of the Board of Supervisors held on29 March 2024, the Company completed repurchase and cancellation of 2,547,779 restrictedshares on 4 June 2024 at an average repurchased price of RMB 2.349/share. Thecorresponding reduction of the treasury shares are RMB5,984,733, the shortfall between thecancelled treasury shares and the share capital of RMB3,436,954 is deducted againstCapital reserve—Share premium.
Pursuant to the Proposal on the Fulfilment of the Conditions for the Release of RestrictedShares Granted under the 2020 Share Option and Restricted Share Incentive Plan during theSecond Release Period of the Restricted Shares and the Fulfilment of the Conditions for theSecond Exercise Period of the First Exercise Period of the Initial Grant of Share Optionsdeliberated and adopted in the 28
th meeting of the 10
thsession of the Board of Directorsmeeting and the 9
th meeting of the 10
thsession of the Board of Supervisors on 29 March2024, the Company recognised a total of 95,859,475 restricted shares that can be releasedfrom restricted sale, with the listing and circulation date on 11 April 2024, corresponding toRMB 225,173,907 reduction of Other payables—the Repurchased obligation of restrictedshares (Note V. 29) and Treasury shares.
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the 38
th
meeting of the 10
th
session of the Board ofDirectors meeting and the 13
th meeting of the 10
th
session of the Board of Supervisors heldon 29 October 2024. The Company completed repurchase and cancellation of 4,965,213restricted shares on 9 December 2024 at an average repurchased price of RMB 2.319/share.The corresponding reduction of the treasury shares are RMB11,514,329, the shortfallbetween the cancelled treasury shares and the share capital of RMB6,549,116 is deductedagainst Capital reserve—Share premium.
According to the 38th meeting of the 10th session of the Board of Directors meeting held on29 October 2024, the Proposal of Repurchase of Certain Public Shares of the Company wasreviewed and approved. As at 31 December 2024, the Company repurchased its sharesthrough the special securities account for repurchase by centralised bidding, and theaccumulative A-shares repurchased was 228,882,900. The highest trading price of therepurchase is RMB4.46/share, the lowest trading price is RMB4.22/share, and the totalamount paid is RMB999,872,378 (excluding transaction costs).
In 2024, the Company recognised RMB2,744,966 of restricted share dividends against Otherpayables—the Repurchased obligation of restricted shares (Note V.29) and Treasury shares.
42 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||||||
| Item | Balance at the end of previous year attributable to shareholders of the Company | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Less: Amount transferred from other comprehensive income to profit or loss | ? | Net-of-tax amount attributable to shareholders of the Company | ? | Net-of-tax amount attributable to non-controlling interests | ? | Less: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year attributable to shareholders of the Company |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Items that will not be reclassified to profit or loss | (367,431,914) | ? | 10,371,922 | ? | 719,358 | ? | - | ? | 10,383,379 | ? | (730,815) | ? | 15,118,863 | ? | (372,167,398) |
| Including: Other comprehensive income recognised under equity method | (182,042,186) | ? | 46,494,799 | ? | 904,946 | ? | - | ? | 45,589,853 | ? | - | ? | 526,560 | ? | (136,978,893) |
| Changes in fair value of investments in other equity instruments | (185,389,728) | ? | (36,122,877) | ? | (185,588) | ? | - | ? | (35,206,474) | ? | (730,815) | ? | 14,592,303 | ? | (235,188,505) |
| Items that may be reclassified to profit or loss | (769,565,310) | ? | (15,428,984) | ? | - | ? | - | ? | (30,091,156) | ? | 14,662,172 | ? | - | ? | (799,656,466) |
| Including: Other comprehensive income recognised under equity method | (118,842) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (118,842) |
| Translation differences arising from translation of foreign currency financial statements | (769,446,468) | ? | (15,428,984) | ? | - | ? | - | ? | (30,091,156) | ? | 14,662,172 | ? | - | ? | (799,537,624) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (1,136,997,224) | ? | (5,057,062) | ? | 719,358 | ? | - | ? | (19,707,777) | ? | 13,931,357 | ? | 15,118,863 | ? | (1,171,823,864) |
????
????
?
43 Surplus reserve
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Other changes during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Statutory surplus reserve | 3,282,107,326 | ? | 307,923,188 | ? | 52,656 | ? | 3,590,083,170 |
| Discretionary surplus reserve | 289,671,309 | ? | - | ? | - | ? | 289,671,309 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,571,778,635 | ? | 307,923,188 | ? | 52,656 | ? | 3,879,754,479 |
???????
???????
44 Retained earnings
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year | ? | 35,579,576,607 | ? | 35,829,465,307 |
| Add: Net profits for the year attributable to shareholders of the Company | ? | 5,323,248,974 | ? | 2,547,435,360 |
| Less: Appropriation for statutory surplus reserve | ? | 307,923,188 | ? | 330,597,179 |
| Interest on holders of other equity instruments | V.39 | 70,000,000 | ? | 118,551,232 |
| Dividends to ordinary shares | (a) | 1,129,073,743 | ? | 2,296,367,348 |
| Transfer of other comprehensive income to retained earnings | (b) | (15,066,207) | ? | 51,808,301 |
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 39,410,894,857 | ? | 35,579,576,607 |
???????
???????
(a) According to the Annual Shareholders’ Meeting for 2023 held on 26 April 2024, the Company
distributed cash dividends to shareholders of A shares and B shares on 19 June 2024 (Ashares) and 21 June 2024 (B shares), with RMB0.3 (2023: RMB0.61) every 10 shares and aprofit distribution amount of RMB1,131,818,709. Considering the turnover rate, thecorresponding dividends of the expected non-exercisable portions of restricted shares areRMB144,471 with a profit distribution of RMB1,129,073,743 (2023: RMB1,268,367 andRMB2,296,367,348).
(b) The amount of transfers of other comprehensive income to retained earnings in 2024 was
RMB15,066,207 (2023: gains of RMB51,808,301), resulting from the transfer of accumulatedlosses from changes in fair value to retained earnings due to the disposal of investments inother equity instruments.
(c) As at 31 December 2024, the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries amountingto RMB7,233,974,561 (2023: RMB6,738,372,634).
45 Operating income and operating costs
(1) Operating income and operating costs
| ? | 2024 | ? | 2023 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 193,576,127,325 | ? | 164,101,410,809 | ? | 169,749,300,319 | ? | 150,477,735,786 |
| Other operating activities | 4,804,478,336 | ? | 4,120,538,764 | ? | 4,794,145,576 | ? | 3,995,934,250 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 198,380,605,661 | ? | 168,221,949,573 | ? | 174,543,445,895 | ? | 154,473,670,036 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 197,588,200,093 | ? | 168,118,876,665 | ? | 174,029,517,307 | ? | 154,364,762,404 |
| Other income | 792,405,568 | ? | 103,072,908 | ? | 513,928,588 | ? | 108,907,632 |
???????
???????
Information on income of principal activities has been included in Note XV.
Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Operating income | 852,474,207 | ? | 2,109,347,934 |
| Operating costs | 820,315,992 | ? | 1,877,621,445 |
????
????
46 Taxes and surcharges
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Property tax | 653,423,403 | ? | 597,939,410 |
| Urban maintenance and construction tax | 214,651,232 | ? | 171,689,341 |
| Stamp duty | 180,996,591 | ? | 156,907,291 |
| Education surcharges and local education surcharges | 153,632,475 | ? | 125,103,191 |
| Land use tax | 70,077,226 | ? | 59,008,233 |
| Others | 23,365,969 | ? | 22,338,399 |
| ? | ? | ? | ? |
| Total | 1,296,146,896 | ? | 1,132,985,865 |
???????
???????
47 Selling and distribution expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 1,524,547,555 | ? | 1,438,718,863 |
| Others | 470,747,097 | ? | 457,612,673 |
| ? | ? | ? | ? |
| Total | 1,995,294,652 | ? | 1,896,331,536 |
???????
???????
48 General and administrative expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 3,781,534,288 | ? | 3,609,519,043 |
| Depreciation and amortisation | 1,062,279,681 | ? | 935,214,349 |
| Repair expenses | 39,755,624 | ? | 41,921,740 |
| Others | 1,335,102,537 | ? | 1,358,220,408 |
| ? | ? | ? | ? |
| Total | 6,218,672,130 | ? | 5,944,875,540 |
???????
???????
49 Research and development expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 5,570,963,161 | ? | 5,007,531,801 |
| Material and test expenses | 3,331,371,532 | 2,434,873,103 | |
| Depreciation and amortisation | 2,201,837,134 | ? | 2,263,292,470 |
| Others | 2,019,137,404 | ? | 1,613,805,714 |
| ? | ? | ? | ? |
| Total | 13,123,309,231 | ? | 11,319,503,088 |
???????
???????
50 Financial expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Interest expense from loans and lease liabilities | 4,335,040,880 | ? | 4,093,007,199 |
| Less: Borrowing costs capitalised | 301,781,000 | ? | 556,117,300 |
| Interest income from bank deposits | (2,285,948,395) | ? | (2,032,287,888) |
| Exchange gains | (543,827,626) | ? | (439,326,037) |
| Other financial expenses | 20,903,511 | ? | 85,034,572 |
| ? | ? | ? | ? |
| Total | 1,224,387,370 | ? | 1,150,310,546 |
???????
???????
The interest rates per annum at which borrowing costs were capitalised by the Group was
1.95% - 2.95% (2023: 2.95% - 3.95%) for the year.
51 Other income
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Government grants related to assets | 576,945,669 | ? | 547,154,297 |
| Government grants related to income | 1,220,232,805 | ? | 3,443,984,813 |
| Weighted deduction of input VAT | 462,974,895 | ? | 177,734,568 |
| Others | 28,324,197 | ? | 33,459,478 |
| ? | ? | ? | ? |
| Total | 2,288,477,566 | ? | 4,202,333,156 |
???????
???????
The amount of government subsidies related to income received by the Group in 2024 anddirectly included in other income was RMB729,081,221.
52 Investment income
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the equity method | V.11 | (752,455,175) | ? | 702,555,344 |
| Investment income from disposal of long-term equity investments | ? | 52,696,519 | ? | 1,581,850 |
| Investment income from disposal of financial assets held for trading | ? | 48,676,748 | ? | 69,166,228 |
| Dividend income from investments in other equity instruments | V.12 | 33,201,155 | ? | 28,419,020 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | ? | 33,201,155 | ? | 28,419,020 |
| Others | ? | 76,980,100 | ? | 8,987,200 |
| ? | ? | ? | ? | ? |
| Total | ? | (540,900,653) | ? | 810,709,642 |
???????
???????
53 Gains from changes in fair value
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Financial assets held for trading | 522,447,744 | ? | 291,542,233 |
???????
???????
54 Credit losses
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Accounts receivable | 106,324,987 | ? | 15,213,883 |
| Other receivables | 5,790,193 | ? | 3,328,671 |
| Bills receivable | 9,934 | ? | 19,644 |
| ? | ? | ? | ? |
| Total | 112,125,114 | ? | 18,562,198 |
???????
???????
55 Impairment losses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Impairment losses of inventories | 3,270,730,264 | ? | 2,202,962,576 |
| Impairment losses of fixed assets | 155,630,720 | ? | 199,363,784 |
| Impairment losses of long-term equity investments | 110,719,534 | ? | - |
| Impairment losses of goodwill | 51,130,564 | ? | - |
| Impairment losses of intangible assets | 25,647,674 | ? | - |
| Impairment losses of construction in progress | 10,445,089 | ? | 3,086,619 |
| Impairment losses of contract assets | (41,265) | ? | 817,655 |
| ? | ? | ? | ? |
| Total | 3,624,262,580 | ? | 2,406,230,634 |
???????
???????
56 Gains from asset disposals
| Item | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Gains from disposal of fixed assets | 96,788,213 | ? | 9,798,475 | ? | 96,788,213 |
| (Losses) / Gains from disposal of right-of-use assets | (612,949) | ? | 3,291,911 | ? | (612,948) |
| ? | ? | ? | ? | ? | ? |
| Total | 96,175,264 | ? | 13,090,386 | ? | 96,175,264 |
???????
???????
57 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
| Item | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Income from recoveries and disposals of residual materials | 156,922,836 | ? | 176,876,507 | ? | 156,922,836 |
| Gains from disposal of non-current assets | 10,758,866 | ? | 10,212,047 | ? | 10,758,866 |
| Others | 48,604,570 | ? | 196,907,609 | ? | 48,604,570 |
| ? | ? | ? | ? | ? | ? |
| Total | 216,286,272 | ? | 383,996,163 | ? | 216,286,272 |
???????
???????
(2) Non-operating expenses
| ? | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Donations provided | 22,799,573 | ? | 4,201,070 | ? | 22,799,573 |
| Losses from scrapping of non-current assets | 9,315,968 | ? | 42,927,593 | ? | 9,315,968 |
| Others | 29,175,134 | ? | 22,520,694 | ? | 29,175,134 |
| ? | ? | ? | ? | ? | ? |
| Total | 61,290,675 | ? | 69,649,357 | ? | 61,290,675 |
???????
???????
58 Income tax expenses
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Current tax expense based on tax law and regulations | ? | 1,636,979,210 | ? | 1,311,971,433 |
| Changes in deferred tax assets/liabilities | (1) | (696,599,459) | ? | 151,155,913 |
| ? | ? | ? | ? | ? |
| Total | ? | 940,379,751 | ? | 1,463,127,346 |
???????
???????
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | (696,599,459) | ? | 151,155,913 |
???????
???????
(2) Reconciliation between income tax expense and accounting profit:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Profit before taxation | 5,085,653,633 | ? | 1,832,998,675 |
| Expected income tax expense at tax rate of 15% | 762,848,045 | ? | 274,949,801 |
| Add: Effect of different tax rates applied by subsidiaries | (23,588,496) | ? | 18,028,526 |
| Effect of non-deductible costs, expense and losses | 12,976,976 | ? | 51,628,306 |
| Tax effect of weighted deduction and tax preference | (1,344,141,676) | ? | (1,017,881,773) |
| Utilisation of prior year tax losses | (634,192,216) | ? | (269,688,693) |
| Tax effect of deductible losses of deferred tax assets not recognised | 2,102,425,214 | ? | 2,326,078,995 |
| Tax effect of deductible temporary differences of deferred tax assets not recognised | 64,051,904 | ? | 80,012,184 |
| ? | ? | ? | ? |
| Income tax expenses | 940,379,751 | ? | 1,463,127,346 |
???????
???????
59 Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company by the weighted average number of ordinary sharesoutstanding. The Group does not have any potential dilutive ordinary shares for the listedyears.
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to shareholders of the Company | 5,323,248,974 | ? | 2,547,435,360 |
| Less: Current interest of other equity instruments | 70,000,000 | ? | 118,551,232 |
| Less: Current dividends of restricted shareholders | 2,744,966 | ? | 17,173,897 |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Weighted average number of ordinary shares outstanding (shares) | 37,519,930,241 | ? | 37,429,510,530 |
| Basic earnings per share (RMB/share) | 0.14 | ? | 0.06 |
???????
???????
Weighted average number of ordinary shares is calculated as follows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Issued ordinary shares at the beginning of the year | 37,457,807,349 | ? | 37,355,546,569 |
| Add: Weighted average number of ordinary shares issued in current period | - | ? | - |
| Add: Weighted average of restricted shares released from sale restrictions during the period | 69,144,539 | ? | 73,963,961 |
| Less: Weighted average number of ordinary shares repurchased in current period | 7,021,647 | ? | - |
| ? | ? | ? | ? |
| Weighted average number of ordinary shares at 31 December | 37,519,930,241 | ? | 37,429,510,530 |
??????
??????
60 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Government grants received | 2,262,269,718 | ? | 5,323,824,411 |
| Restricted cash at bank and on hand as well as others related to operating activities | 339,696,656 | ? | 821,660,520 |
| ? | ? | ? | ? |
| Total | 2,601,966,374 | ? | 6,145,484,931 |
???
???
b. Payments relating to other operating activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Expenses paid during the period | 7,349,209,291 | ? | 7,613,110,071 |
???
???
(2) Cash relating to investing activities
a. Proceeds relating to other investing activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Interest income | 1,999,870,941 | ? | 1,658,880,796 |
| Restricted cash at bank and on hand as well as others related to investing activities | 485,461,264 | ? | 2,281,607,894 |
| ? | ? | ? | ? |
| Total | 2,485,332,205 | ? | 3,940,488,690 |
???
???
(3) Cash relating to financing activities
a. Payments for other financing activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Acquisition of non-controlling interests of subsidiaries | 241,418,106 | ? | 7,429,009,200 |
| Repurchase of treasury shares | 999,872,378 | ? | - |
| Principal and interest related to leases and others | 614,027,613 | ? | 467,134,209 |
| ? | ? | ? | ? |
| Total | 1,855,318,097 | ? | 7,896,143,409 |
???
???
b. Changes in liabilities arising from financing activities
| ? | ? | ? | Additions during the year | ? | Reductions during the year | ? | ? | ||||
| ? | Balance at the beginning of the year | ? | Cash | ? | Non-cash | ? | Cash | ? | Non-cash | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,746,184,534 | ? | 2,759,165,678 | ? | 66,843,120 | ? | (2,915,467,688) | ? | (93,408,478) | ? | 1,563,317,166 |
| Long-term loans (including non-current liabilities due within one year) | 145,767,489,811 | ? | 44,434,871,585 | ? | 4,923,036,134 | ? | (51,300,939,856) | ? | - | ? | 143,824,457,674 |
| Lease liabilities (including non-current liabilities due within one year) | 710,839,756 | ? | - | ? | 521,007,976 | ? | (453,367,778) | ? | - | ? | 778,479,954 |
| Long-term payables (including non-current liabilities due within one year) | 218,789,786 | ? | - | ? | 18,478,869 | ? | (93,246,208) | ? | - | ? | 144,022,447 |
| Other non-current liabilities (including non-current liabilities due within one year) | 2,500,522,066 | ? | - | ? | 630,846,602 | ? | (38,077,776) | ? | - | ? | 3,093,290,892 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 150,943,825,953 | ? | 47,194,037,263 | ? | 6,160,212,701 | ? | (54,801,099,306) | ? | (93,408,478) | ? | 149,403,568,133 |
???
???
61 Supplementary information for the cash flow statement
(1) Supplement to the cash flow statement
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit / (loss) to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit / (loss) | 4,145,273,882 | ? | 369,871,329 |
| Add: Credit losses | 112,125,114 | ? | 18,562,198 |
| Impairment losses | 3,624,262,580 | ? | 2,406,230,634 |
| Depreciation of fixed assets, investment properties and right-of-use assets | 37,154,186,708 | ? | 33,721,207,174 |
| Amortisation of intangible assets | 1,097,857,402 | ? | 955,466,291 |
| Amortisation of long-term deferred expenses | 169,655,830 | ? | 162,353,520 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (96,175,264) | ? | (13,090,386) |
| Losses from scrapping of fixed assets and intangible assets (“-” for gains) | (1,442,898) | ? | 32,715,546 |
| Financial expenses | 1,910,873,352 | ? | 2,567,467,227 |
| Gains from changes in fair value | (522,447,744) | ? | (291,542,233) |
| Investment losses (“-” for gains) | 581,941,421 | ? | (810,709,642) |
| Share-based payments | 125,524,945 | ? | 307,160,605 |
| Decrease in deferred income | (218,434,024) | ? | (393,295,377) |
| Increase in deferred tax assets | (298,011,255) | ? | (26,847,208) |
| (Decrease)/increase in deferred tax liabilities | (404,560,340) | ? | 178,771,023 |
| Increase in inventories | (2,464,527,331) | ? | (1,825,979,018) |
| Decrease/(increase) in operating receivables | (3,667,418,533) | ? | (3,904,919,786) |
| (Decrease)/increase in operating payables | 6,399,187,934 | ? | 4,781,932,585 |
| Safety fund | 89,705,600 | ? | 66,472,402 |
| ? | ? | ? | ? |
| Net cash flows generated from operating activities | 47,737,577,379 | ? | 38,301,826,884 |
??????
??????
| (b) Change in cash and cash equivalents: | ? | ? | ? |
| ? | ? | ? | ? |
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 62,005,252,511 | ? | 52,092,981,748 |
| Less: Cash and cash equivalents at the beginning of the year | 52,092,981,748 | ? | 64,382,037,764 |
| ? | ? | ? | ? |
| Net increase/(decrease) in cash and cash equivalents | 9,912,270,763 | ? | (12,289,056,016) |
???????
???????
(2) Information on acquisition of subsidiaries during the year
Net proceeds from acquisition of subsidiaries:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash or cash equivalents paid during the year for acquiring subsidiaries during the year | - | ? | (150,000,000) |
| Less: Cash and cash equivalents held by acquired subsidiaries | - | ? | 209,293,141 |
| ? | ? | ? | ? |
| Net proceeds from acquisition of subsidiaries | - | ? | 59,293,141 |
?
?
Net payment for acquisition of subsidiaries:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash or cash equivalents paid during the year for acquiring subsidiaries during the year | - | ? | (2,083,597,236) |
| Less: Cash and cash equivalents held by acquired subsidiaries | - | ? | 1,918,264,097 |
| ? | ? | ? | ? |
| Net payment for acquisition of subsidiaries | - | ? | (165,333,139) |
????
????
(3) Details of cash and cash equivalents
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash on hand | 1,528,764 | ? | 802,967 |
| Bank deposits available on demand | 61,918,283,198 | ? | 52,089,093,133 |
| Other monetary funds available on demand | 85,440,549 | ? | 3,085,648 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 62,005,252,511 | ? | 52,092,981,748 |
???????
???????
Note: The cash and cash equivalents disclosed above do not include bank deposits held not
for investment purpose, the interest accrued on bank deposits at the end of the periodand the use of other currency funds subject to restrictions.
(4) Monetary funds other than cash and cash equivalents
| Item | 2024 | ? | 2023 | ? | Rationale |
| ? | ? | ? | ? | ? | ? |
| Bank deposits with fixed interest rate | 10,170,589,885 | ? | 17,740,553,353 | ? | Held for investment purpose |
| Margin deposits | 1,441,761,424 | ? | 1,869,539,464 | ? | Mainly refer to margin deposits pledged for the issuance of bills payable |
| ? | ? | ? | ? | ? | ? |
| Total | 11,612,351,309 | ? | 19,610,092,817 | ? | ? |
???????
???????
(5) Explanation for presentation of cash flows on a net basis
| Item | Relevant facts and circumstances | ? | Basis for presentation on a net basis | ? | Financial impact |
| ? | ? | ? | ? | ? | ? |
| Restricted monetary funds | Amounts of restricted deposits placed and recovered are presented on a net basis | ? | Cash inflows and outflows for fast-turnover, high-value, short-term items can be presented on a net basis | ? | Nil |
?
?
62 Assets with restrictive ownership titles or right of use
| ? | 2024 | ||||||
| Item | Book value | ? | Carrying amount | ? | Restriction | ? | Details of restriction |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 1,441,761,424 | ? | 1,441,761,424 | ? | Note V.1 | ? | Note V.1 |
| Bills receivable | 246,112,676 | ? | 246,112,676 | ? | Pledged | ? | Endorsed with resource and pledged for the issuance of bills payable |
| Investment properties | 154,510,137 | ? | 154,510,137 | ? | Mortgaged | ? | Mortgaged as collateral |
| Fixed assets | 237,348,939,293 | ? | 126,896,353,640 | ? | Mortgaged | ? | Mortgaged as collateral |
| Construction in progress | 11,473,130,082 | ? | 11,473,130,082 | ? | Mortgaged | ? | Mortgaged as collateral |
| Intangible assets | 2,264,095,450 | ? | 1,954,974,874 | ? | Mortgaged | ? | Mortgaged as collateral |
| Other non-current assets | 157,708,950 | ? | 157,708,950 | ? | Others | ? | Others |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 253,086,258,012 | ? | 142,324,551,783 | ? | ? | ? | ? |
???????
???????
| ? | 2023 | ||||||
| Item | Book value | ? | Carrying amount | ? | Restriction | ? | Details of restriction |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 1,869,539,464 | ? | 1,869,539,464 | ? | Note V.1 | ? | Note V.1 |
| Bills receivable | 230,354,069 | ? | 230,354,069 | ? | Pledged | ? | Endorsed with resource and pledged for the issuance of bills payable |
| Investment properties | 101,775,150 | ? | 100,605,150 | ? | Mortgaged | ? | Mortgaged as collateral |
| Fixed assets | 237,742,564,332 | ? | 136,319,471,935 | ? | Mortgaged | ? | Mortgaged as collateral |
| Construction in progress | 2,925,304,165 | ? | 2,925,304,165 | ? | Mortgaged | ? | Mortgaged as collateral |
| Intangible assets | 1,806,103,571 | ? | 1,546,929,316 | ? | Mortgaged | ? | Mortgaged as collateral |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 244,675,640,751 | ? | 142,992,204,099 | ? | ? | ? | ? |
???
???
VI Research and development expenses
1 Presentation by nature
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 5,625,237,778 | ? | 5,033,127,133 |
| Material and test expenses | 3,339,102,808 | 2,442,996,588 | |
| Depreciation and amortisation | 2,213,563,118 | ? | 2,269,453,425 |
| Others | 2,027,370,403 | ? | 1,617,691,744 |
| ? | ? | ? | ? |
| Total | 13,205,274,107 | ? | 11,363,268,890 |
| ? | ? | ? | ? |
| Including: research and development expenditures that are expensed | 13,123,309,231 | ? | 11,319,503,088 |
| research and development expenditures that are capitalised | 81,964,876 | ? | 43,765,802 |
???
???
2 Expenditures on research and development projects which are eligible for capitalisation
| Item | Balance at the beginning of the year | ? | Internal development | ? | Recognised as intangible assets | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| HC SemiTek Corporation LED and Micro-LED technology development | 166,977,531 | ? | 81,964,876 | ? | (139,619,053) | ? | 109,323,354 |
??
??
VII Change of consolidation scope
Increases in the consolidation scope during the year were new subsidiaries establishedduring the year, and the decreases in the consolidation scope were cancellations ofsubsidiaries during the year.
VIII Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | Research and development, design, manufacture, and sale of new display devices and components | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development of TFT-LCD, manufacture and sale of LCD | ? | 97.17% | ? | 2.83% | ? | Founded by investment |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | 99.97% | ? | 0.03% | ? | Business combination involving entities not under common control |
| Ordos Yuansheng Optoelectronics Co., Ltd. | Ordos, China | ? | Ordos, China | ? | The production and operation of AMOLED and relevant products | ? | 100% | ? | - | ? | Founded by investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Chongqing, China | ? | Chongqing, China | ? | Research, development, manufacture and sales of semiconductor display devices, machine and relevant products, import and export of goods and technical consulting | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | ? | Fuzhou, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products (separate business site); self-support and agency for the import and export of various goods and technologies, except those goods and technologies that are restricted by the country or prohibited from import and export; business management consulting and services; property leases; machinery and equipment leases; technology development, transfer, consulting and services related to LCD products. | ? | 86.08% | ? | - | ? | Business combination involving entities not under common control |
| Beijing BOE Vision-electronic Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment platform, sales of LCD | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sales of vacuum electronic products | ? | 57.89% | ? | - | ? | Founded by investment |
?
?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Management of engineering projects; property management services; lease of commercial buildings; lease of office space; enterprise management consulting | ? | 100% | ? | - | ? | Founded by investment |
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | ? | Suzhou, China | ? | R&D, production and sales of LCD, back light for display and related components | ? | 95.17% | ? | - | ? | Founded by investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, manufacture and sale of liquid display for mobile termination | ? | 75% | ? | - | ? | Founded by investment |
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | ? | Langfang, China | ? | Manufacture and sale of mobile flat screen display technical products and related services | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Energy Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Provide comprehensive zero carbon comprehensive energy services, covering multiple dimensions such as comprehensive energy services, comprehensive energy utilization and zero carbon services | ? | 68.40% | ? | - | ? | Founded by investment |
| Beijing BOE Life Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Zhongxiangying Technologies Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | 91.10% | ? | - | ? | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Glass thinning processing and metal parts processing | ? | 84% | ? | - | ? | Founded by investment |
| BOE Optoelectronics Holding Co.,Ltd | Hong Kong, China | ? | British Virgin Islands | ? | Investment holding | ? | 100% | ? | - | ? | Founded by investment |
| BOE (Korea) Co.,Ltd. | Korea | ? | Korea | ? | Wholesale and retail trade | ? | 100% | ? | - | ? | Founded by investment |
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment management and project investment | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Beijing Matsushita Colour Innovation Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Property management, parking services, lease of commercial buildings, etc | ? | 88.80% | ? | - | ? | Business combination involving entities not under common control |
| Hefei BOE Display Technology Co., Ltd. (“Hefei Display Technology”) | Hefei, China | ? | Hefei, China | ? | Investment, R&D and production of products related to TFT-LCD and the supporting facility | ? | 36.67% | ? | - | ? | Business combination involving entities not under common control |
| BOE Wisdom IOT Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, transfer, consulting and service of technology | ? | 100% | ? | - | ? | Founded by investment |
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | ? | 75% | ? | - | ? | Founded by investment |
| Beijing BOE Land Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | ? | 70% | ? | - | ? | Founded by investment |
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| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Shiyan Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | General items: technical service, technical development, technical consultation, technical exchange, technology transfer and technology promotion; Computer software, hardware and peripheral equipment manufacturing; Wholesale of computer software, hardware and auxiliary equipment; Retail of computer software, hardware and auxiliary equipment; Manufacturing of electronic components; Optoelectronic device manufacturing; Display device manufacturing; Mobile terminal equipment manufacturing; Virtual reality equipment manufacturing; TV manufacturing; Internet of Things equipment manufacturing; Sales of electronic products; Display device sales; Sales of mobile terminal equipment; Sales of communication equipment; Sales of IoT equipment; Computer and communication equipment leasing; Integrated circuit manufacturing; Integrated circuit design; IC sales; Integrated circuit chip and product manufacturing; Software development; Software sales; Import and export of goods; Technology import and export; Sales of Class I medical devices; Class I medical device production; Class I medical device leasing; Sales of Class II medical devices; Class II medical device leasing. | ? | 80% | ? | - | ? | Founded by investment |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices | ? | 100% | ? | - | ? | Founded by investment |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | ? | Mianyang, China | ? | R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | ? | 83.46% | ? | - | ? | Business combinations involving entities not under common control |
| Yunnan Invensight Optoelectronics Technology Co., Ltd. | Kunming, China | ? | Kunming, China | ? | Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases | ? | 79.10% | ? | - | ? | Founded by investment |
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer | ? | 100% | ? | - | ? | Founded by investment |
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| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (“Wuhan BOE”) | Wuhan, China | ? | Wuhan, China | ? | Investment and construction, research and development, production, sales, technology development, transfer, consult and services of thin-film transistor LCD devices and related products and supporting products | ? | 47.14% | ? | - | ? | Business combinations involving entities not under common control |
| Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”) | Chongqing, China | ? | Chongqing, China | ? | R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting | ? | 38.46% | ? | - | ? | Business combinations involving entities not under common control |
| Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”) | Fuzhou, China | ? | Fuzhou, China | ? | R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical services; business management consulting; property management; house rental; machinery and equipment rental | ? | 43.46% | ? | - | ? | Business combinations involving entities not under common control |
| Hefei BOE Xingyu Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | R&D, production and sales of Mini LED backlight components and Mini LED display module components | ? | 65.00% | ? | - | ? | Founded by investment |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Intelligent administrative service solutions integrating property, business travel, procurement and consumption | ? | 100% | ? | - | ? | Founded by investment |
| BOE Smart Technology Co., Ltd. Technology (“Smart Technology”) | Beijing, China | ? | Beijing, China | ? | Provision of hardware and software integrated system solutions for the IoT market segment; intelligent city, intelligent transport, intelligent finance, intelligent park and the display terminal products such as the intelligent all-in-one machines | ? | 100% | ? | - | ? | Founded by investment |
| BOE Innovation Investment Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Project investment and investment management | ? | 100% | ? | - | ? | Founded by investment |
| Nanjing BOE Display Technology Co., Ltd. | Nanjing, China | ? | Nanjing, China | ? | R&D, production and sales of TFT-LCD panels, color filters and LCD machine modules; Providing services related to products and businesses, and other business activities related to the above;Self support and agency of import and export business of various commodities and technologies. | ? | 80.83% | ? | - | ? | Business combinations involving entities not under common control |
| Chengdu BOE Display Sci-tech Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | Mainly engaged in research and development, production, sales and technical services of TFT-LCD panels and modules, LCD displays, televisions, instruments, mechanical equipment and accessories; Engaged in the import and export of goods and technology. | 35.03% | ? | - | ? | Business combinations involving entities not under common control | |
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?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage) | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE Mled Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Mainly engaged in technology development, technology consultation, technology transfer and technical services; Software development; Basic software services; Application software services; Computer system services; Internet data services (data centers in Internet data services, except cloud computing data centers with PUE values above 1.4); Information processing and storage support services; General construction contracting, professional contracting and labor subcontracting; Equipment installation, maintenance and leases; Literary and artistic creation; Computer animation design; Product design; business management; Enterprise management consulting; Sales of computers, software and auxiliary equipment, electronic products. | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Solar Energy Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacture of photovoltaic equipment and components; sales of photovoltaic equipment and components. | ? | 100% | ? | - | ? | Founded by investment |
| Chengdu BOE Display Techlogy Co., Ltd. (Chengdu Display Technology) | Chengdu, China | ? | Chengdu, China | ? | technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacturing of display devices [operations of branches]; sale of display devices; manufacturing of electronic components [operations of branches]; wholesale of electronic components; manufacturing of others electronic devices [operations of branches]; import and export of goods; import and export of technology; business management consulting; property management; non-residential real estate leasing; machinery and equipment leasing. | ? | 50.25% | ? | - | ? | Founded by investment |
| Beijing BOE Chuangyuan Technology Co., Ltd. (“Chuangyuan Technology”) | Beijing, China | ? | Beijing, China | ? | Manufacturing of display devices; sale of display devices; manufacturing of electronic components; wholesale of electronic components; technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; import and export of goods; import and export of technology; business management consulting; property management; machinery and equipment leasing; manufacturing of other electronic devices. | ? | 79.31% | ? | - | ? | Founded by investment |
| Mianyang BOE Electronic Technology Co., Ltd. (“Mianyang Electronic Technology”) | Mianyang, China | ? | Mianyang, China | ? | Manufacturing of display devices; display device sales; manufacturing of electronic components; technical service, technical development, technical consultation, technical exchange, technology transfer and technology promotion; machinery and equipment leasing; intelligent control system integration; information system integration services; industrial control computer and system manufacturing; Internet of Things technical services; data processing service; sales of electronic products; sales of digital cultural creative technology and equipment; sales of semiconductor lighting devices; AI industry application system integration services; cloud computing equipment technology services; industrial Internet data service; Internet data service; semiconductor lighting device manufacturing; sales of new energy prime mover equipment; technology import and export. | ? | 100% | ? | - | ? | Founded by investment |
| BOE HC SemiTek Corporation | Wuhan, China | ? | Wuhan, China | ? | Design, manufacturing, sales and business leasing of semiconductor materials and devices, electronic materials and devices, semiconductor lighting equipment, sapphire crystal growth and sapphire deep processing products; research and development, processing and manufacturing of integrated circuits and sensors, and providing technical services; import and export of self owned products and raw materials. | ? | 22.92% | ? | - | ? | Business combinations involving entities not under common control |
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As the Company has signed agreements of concerted action with other shareholders of HefeiDisplay Technology, Wuhan BOE, Chongqing BOE Display, Fuzhou BOE Display, ChengduDisplay Sci-tech and HC SemiTek. The Company has 100% of the voting rights of HefeiDisplay Technology, Wuhan BOE, Chongqing BOE Display and Fuzhou BOE Display, and
96.75% of the voting rights of Chengdu Display Sci-tech. The voting right of HC SemiTek is
26.43%.
(2) Material non-wholly owned subsidiaries
| Name of the subsidiary | Proportion of ownership interest held by non-controlling interests | ? | Loss allocated to non-controlling interests during the year | ? | Dividend declared to non-controlling shareholders during the year | ? | Balance of non-controlling interests at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Subsidiary A | 61.54% | ? | (1,729,392,519) | ? | - | ? | 13,048,390,413 |
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(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries withoutoffsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:
| ? | Subsidiary A | ||
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Current assets | 10,383,778,491 | ? | 8,098,980,132 |
| Non-current assets | 37,068,011,098 | ? | 37,527,686,707 |
| ? | ? | ? | ? |
| Total assets | 47,451,789,589 | ? | 45,626,666,839 |
| ? | ? | ? | ? |
| Current liabilities | 9,932,275,658 | ? | 8,612,279,639 |
| Non-current liabilities | 16,316,409,587 | ? | 13,005,587,192 |
| ? | ? | ? | ? |
| Total liabilities | 26,248,685,245 | ? | 21,617,866,831 |
| ? | ? | ? | ? |
| Operating income | 10,105,118,112 | ? | 4,226,393,760 |
| Net (loss)/profit | (2,810,192,589) | ? | (1,288,455,305) |
| Total comprehensive income | (2,810,192,589) | ? | (1,288,455,305) |
| Cash inflows/(outflows) in operating activities | 307,572,244 | ? | 171,287,026 |
2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in
loss of control
(1) Changes in the Group’s interests in subsidiaries:
| ? | Before changes of interests | ? | After changes of interests |
| ? | ? | ? | ? |
| Chengdu Display Technology | 52.63% | ? | 50.25% |
| Chuangyuan Technology | 60.21% | ? | 79.31% |
| HC SemiTek | 23.01% | ? | 22.92% |
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(2) Impact of transactions on non-controlling interests and equity attributable to the shareholders
of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned othersubsidiaries were caused by the non-proportional capital increase of shareholders and theacquisition of non-controlling interests, which results in the decrease of capital reserves byRMB61,752,693.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of theassociates.
No material restrictions on transfers of funds from investees to the Group. The judgementbasis of the Company and its subsidiaries to hold lower than 20% of the voting rights of otherentities but have significant influence on the entity is due to the fact that the Company and itssubsidiaries have seats in the board of directors of the entity, and the Company andsubsidiaries of the Company may have significant influence on the entity through therepresentation of the directors in the process of formulating financial and operating policies.
IX Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments inthe normal course of operations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks
The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policiesand processes for measuring and managing risks, and their changes during the year.
The Group aims to achieve an appropriate balance between the risks and benefits from itsuse of financial instruments and to mitigate the adverse effects that the risks of financialinstruments have on the Group’s financial performance. Based on these objectives, theGroup’s risk management policies have been established to identify and analyse the risksfaced by the Group, to set appropriate risk limits and controls, and to monitor risks. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities. The internal audit department of the Group undertakesboth regular and ad-hoc reviews to determine whether the internal control system isimplemented in accordance with the Group’s risk management policies.
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to receivables. Exposure to these credit risks is monitored by management on anongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.
In respect of receivables, the Group has established a credit policy under which individualcredit evaluations are performed on all customers to determine the credit limit and termsapplicable to the customers These evaluations focus on the customers’ financial position, theexternal ratings of the customers and the record of previous transactions. Receivables aredue within 7 to 180 days from the date of billing. Debtors with balances that are past due arerequested to settle all outstanding balances before any further credit is granted. Normally, theGroup does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer, therefore significant concentrations of credit risk arise primarily when theGroup has significant exposure to individual customers. As at the balance sheet date, 45%(2023: 36%) of total accounts receivable and contract assets were due from the Group’s fivelargest customers. In addition, the debtors of the Group that are neither past due norimpaired mainly relate to a wide range of customers for whom there was no recent history ofarrearage.
The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. As mentioned in Note XIV, as at 31 December 2024, the Groupdid not provide any other guarantees which would expose the Group to credit risk.
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Company and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands, subject toapproval by the Company’s board when the borrowings exceed certain predetermined levelsof authority. The Group’s policy is to regularly monitor its liquidity requirements and itscompliance with lending covenants, to ensure that it maintains sufficient reserves of cash,readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.
The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at 31 December) and the earliest date the Group can be required to pay:
| ? | 2024 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | Over 1 year but within 3 years (inclusive) | ? | Over 3 years but within 5 years (inclusive) | ? | Over 5 years | ? | Total | ? | Carrying amount at balance sheet date |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,583,159,882 | ? | - | ? | - | ? | - | ? | 1,583,159,882 | ? | 1,563,317,166 |
| Bills payable | 1,399,557,969 | ? | - | ? | - | ? | - | ? | 1,399,557,969 | ? | 1,399,557,969 |
| Accounts payable | 36,713,498,406 | ? | - | ? | - | ? | - | ? | 36,713,498,406 | ? | 36,713,498,406 |
| Other payables | 20,827,962,570 | ? | - | ? | - | ? | - | ? | 20,827,962,570 | ? | 20,827,962,570 |
| Non-current liabilities due within one year | 44,178,634,605 | ? | - | ? | - | ? | - | ? | 44,178,634,605 | ? | 43,506,539,611 |
| Long-term loans | 3,334,950,266 | ? | 19,791,399,478 | ? | 19,416,755,363 | ? | 75,019,608,770 | ? | 117,562,713,877 | ? | 100,932,391,740 |
| Lease liabilities | - | ? | 299,878,906 | ? | 178,097,898 | ? | 281,620,430 | ? | 759,597,234 | ? | 631,418,986 |
| Long-term payables | - | ? | 44,328,318 | ? | 36,291,945 | ? | 52,522,833 | ? | 133,143,096 | ? | 121,077,871 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 108,037,763,698 | ? | 20,135,606,702 | ? | 19,631,145,206 | ? | 75,353,752,033 | ? | 223,158,267,639 | ? | 205,695,764,319 |
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| ? | 2023 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | Over 1 year but within 3 years (inclusive) | ? | Over 3 years but within 5 years (inclusive) | ? | Over 5 years | ? | Total | ? | Carrying amount at balance sheet date |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,773,280,214 | ? | - | ? | - | ? | - | ? | 1,773,280,214 | ? | 1,746,184,534 |
| Bills payable | 919,313,033 | ? | - | ? | - | ? | - | ? | 919,313,033 | ? | 919,313,033 |
| Accounts payable | 32,977,603,351 | ? | - | ? | - | ? | - | ? | 32,977,603,351 | ? | 32,977,603,351 |
| Other payables | 19,487,760,965 | ? | - | ? | - | ? | - | ? | 19,487,760,965 | ? | 19,487,760,965 |
| Non-current liabilities due within one year | 24,831,720,125 | ? | - | ? | - | ? | - | ? | 24,831,720,125 | ? | 24,437,027,442 |
| Long-term loans | 4,248,101,826 | ? | 18,954,443,798 | ? | 31,730,890,357 | ? | 87,859,873,238 | ? | 142,793,309,219 | ? | 121,546,339,022 |
| Lease liabilities | - | ? | 253,329,174 | ? | 164,561,752 | ? | 240,102,072 | ? | 657,992,998 | ? | 542,141,496 |
| Long-term payables | - | ? | 76,675,721 | ? | 43,243,078 | ? | 74,598,363 | ? | 194,517,162 | ? | 171,611,393 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 84,237,779,514 | ? | 19,284,448,693 | ? | 31,938,695,187 | ? | 88,174,573,673 | ? | 223,635,497,067 | ? | 201,827,981,236 |
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3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings for fixed and floating rate interest-bearing instruments based oncurrent market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure. The Group does not enter into financialderivatives to hedge interest rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
| ? | 2024 | ? | 2023 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.1% ~ 5.35% | ? | 22,379,239,813 | ? | 1.00% ~ 6.25% | ? | 34,032,083,693 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 2.15% ~ 3.75% | ? | (778,784,075) | ? | 0.38% ~ 5.90% | ? | (1,427,826,333) |
| - Other payables | 0% ~ 2.18% | ? | (3,000,000,000) | ? | 0% ~ 2.18% | ? | (3,000,000,000) |
| - Non-current liabilities due within one year | 1.20% ~ 6.37% | ? | (6,428,602,243) | ? | 0% ~ 6.51% | ? | (11,321,474,654) |
| - Long-term loans | 1.20% ~ 6.37% | ? | (27,818,498,512) | ? | 1.20% ~ 6.37% | ? | (39,919,524,039) |
| - Lease liabilities | 3.10% ~ 4.75% | ? | (631,418,986) | ? | 3.65% ~ 4.75% | ? | (542,141,496) |
| - Long-term payables | 3.60% | ? | (121,077,871) | ? | 4.20% ~ 6.51% | ? | (171,611,393) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (16,399,141,874) | ? | ? | ? | (22,350,494,222) |
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Variable rate instruments:
| ? | 2024 | ? | 2023 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.0001% ~ 5.33% | ? | 51,232,751,535 | ? | 0.0001% ~ 6.25% | ? | 37,628,227,990 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 2.60% ~ 3.20% | ? | (785,399,999) | ? | 3.10% ~ 3.60% | ? | (316,400,000) |
| - Non-current liabilities due within one year | 0.75% ~ 5.32% | ? | (36,785,444,254) | ? | 1.00% ~ 6.33% | ? | (12,588,822,776) |
| - Long-term loans | 1.55% ~ 5.32% | ? | (73,108,053,936) | ? | 1.00% ~ 6.33% | ? | (81,623,331,304) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (59,446,146,654) | ? | ? | ? | (56,900,326,090) |
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(b) Sensitivity analysis
As at 31 December 2024, it is estimated that a general increase/decrease of 100 basis pointsin interest rates of variable rate instrument, with all other variables held constant, woulddecrease/increase the Group’s net profit and shareholders’ equity by RMB502,550,000(2023: RMB481,870,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on net profitand equity of such a change in interest rates is estimated as an annualised impact oninterest expense or income. The analysis is performed on the same basis for the previousyear.
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, and short-termloans denominated in foreign currencies other than the functional currency, the Groupensures that its net exposure is kept to an acceptable level by buying or selling foreigncurrencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognised foreign
currency assets or liabilities is mainly denominated in US dollar. The amount of the USDexposure is net assets exposure USD2,564,028,518 (2023: net liabilities exposure:
USD191,267,567), translated into RMB18,431,262,599 (2023: RMB1,354,690,797), usingthe spot rate at the balance sheet date. Differences resulting from the translation of thefinancial statements denominated in foreign currency are excluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening/weakening of the
Renminbi against the US dollar at 31 December would have decreased/increased both theGroup’s shareholders’ equity and net profit by the amount RMB792,219,870 (2023:
decreased/increased RMB105,886,060).
The sensitivity analysis above assumes that the change in foreign exchange rates had beenapplied to re-measure those financial instruments held by the Group which expose the Groupto foreign currency risk at the balance sheet date. The analysis excludes differences thatwould result from the translation of foreign currency financial statements. The analysis isperformed on the same basis for the previous year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.
X Fair value disclosure
The following table presents the fair value information and fair value hierarchy, at the end ofthe current reporting period, of the Group’s assets and liabilities which are measured at fairvalue at each balance sheet date on a recurring or non-recurring basis. The level at whichfair value measurement is categorised is determined by the lowest level input in the fair valuehierarchy that is significant to the entire fair value measurement. The levels are defined asfollows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the
measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly
observable for underlying assets or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
1 Fair value of assets measured at fair value at the end of the year
| ? | ? | 31 December 2024 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 fair value measurements | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | 316,768,188 | ? | 100,126,575 | ? | 2,699,541,200 | ? | 3,116,435,963 |
| Including: Structured deposit and wealth management products | ? | - | ? | 100,126,575 | ? | 2,679,701,925 | ? | 2,779,828,500 |
| Investment in equity instruments | ? | 316,768,188 | ? | - | ? | 19,839,275 | ? | 336,607,463 |
| - Receivables under financing | V.5 | - | ? | - | ? | 472,537,400 | ? | 472,537,400 |
| - Investments in other equity instruments | V.12 | 257,558,368 | ? | - | ? | 183,813,447 | ? | 441,371,815 |
| - Other non-current financial assets | V.13 | - | ? | - | ? | 2,735,680,042 | ? | 2,735,680,042 |
| Including: Investment in equity instruments | ? | - | ? | - | ? | 2,735,680,042 | ? | 2,735,680,042 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 574,326,556 | ? | 100,126,575 | ? | 6,091,572,089 | ? | 6,766,025,220 |
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| ? | ? | 31 December 2023 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 fair value measurements | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | 261,201,215 | ? | - | ? | 7,494,763,280 | ? | 7,755,964,495 |
| Including: Structured deposit and wealth management products | ? | - | ? | - | ? | 7,476,126,776 | ? | 7,476,126,776 |
| Investment in equity instruments | ? | 261,201,215 | ? | - | ? | 18,636,504 | ? | 279,837,719 |
| - Receivables under financing | V.5 | - | ? | - | ? | 408,534,622 | ? | 408,534,622 |
| - Investments in other equity instruments | V.12 | 169,355,368 | ? | - | ? | 325,274,209 | ? | 494,629,577 |
| - Other non-current financial assets | V.13 | - | ? | - | ? | 2,253,778,325 | ? | 2,253,778,325 |
| Including: Investment in equity instruments | ? | - | ? | - | ? | 2,253,778,325 | ? | 2,253,778,325 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 430,556,583 | ? | - | ? | 10,482,350,436 | ? | 10,912,907,019 |
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2 Basis for determining the market price for recurring and non-recurring fair value
measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 2
The fair value of interest rate swaps included in derivative financial assets is the estimatedamount that would be received or paid to transfer the swap at the end of the reporting period,taking into account current interest rates and the current creditworthiness of the swapcounterparties.
4 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 3
For wealth management products measured at fair value, the fair value is determined basedon the discounted cash flow method.
Receivables under financing are bills receivable with short remaining maturities, for which thefair value determined is equal to the original carrying amount.
Investments in equity instruments are unlisted equity investments held by the Group,including:
(i) For those who raised a new round of financing in 2024, the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments, since the operating environment,
operating conditions and financial status of the investee have not changed significantlyduring the year, the Group uses the book investment cost as a reasonable estimate offair value for measurement.
5 During 2024, there were no changes in valuation technique of fair value. As at 31 December,
the Group held no assets and liabilities measured at fair value. All financial assets andfinancial liabilities of the Group are carried at amounts not materially different from their fairvalues.
XI Related parties and related-party transactions
1 Information about the parent of the Company
| Company name | Registered place | ? | Business nature | ? | Registered capital | ? | Shareholding percentage (%) | ? | Percentage of voting rights (%) | ? | Ultimate controlling party of the Company |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Electronics Holding Co., Ltd. | Area A, No.6, West 6th Street, Sanlitun, Chaoyang District, Beijing | ? | Operation and management of state-owned assets within authorization, etc. | ? | RMB 3,139,210,000 | ? | 0.73% | ? | 12.37% | ? | Yes |
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2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VIII.1.
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during thisyear or the previous year are as follows:
4 Information about other related parties
| Name of other related parties | Related-party relationship |
| ? | ? |
| Beijing Electronics Holding Co., Ltd. and its subsidiaries | Controlling shareholder of the Company and under the same control of the ultimate holding company |
| Shanghai National Engineering Research Center of Digital Television Co., Ltd. | Associate of enterprise that is under the same control of the ultimate holding company |
| Shanghai New Vision Microelectronics Co., Ltd. and its subsidiaries | Associate of enterprise that is under the same control of the ultimate holding company |
| Beidian New Energy Technology (Jiangsu) Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Baic Electronics SK (Jiangsu) Technology Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Beijing DeHeng Law Offices | Others |
| Hua Xia Bank Co., Ltd. | Others |
| China Minsheng Banking Corporation Limited | Others |
Note: Hua Xia Bank Co., Ltd. Became a related party of the Company on 26 July 2024. China
Minsheng Banking Corporation Limited was no longer a related party of the Companyon 31 October 2024.
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial termsor relevant agreements.
(1) Purchase of goods, equipment and receiving of services (excluding remuneration of key
management personnel)
The Group
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Purchase of goods | 1,036,110,867 | ? | 663,371,654 |
| Procurement of equipment | 342,397,862 | ? | 236,814,153 |
| Receiving services | 22,275,482 | ? | 14,986,020 |
| Payment of interest expenses | 29,228,902 | ? | 33,637,490 |
| ? | ? | ? | ? |
| Total | 1,430,013,113 | ? | 948,809,317 |
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???????
The Company
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Purchase of goods | 80,548,372 | ? | 34,372,208 |
| Receiving services | 34,694,760 | ? | 127,843,351 |
| Procurement of equipment | 115,537,859 | ? | 368,000 |
| Payment of interest expenses | 24,190,372 | ? | 30,926,480 |
| ? | ? | ? | ? |
| Total | 254,971,363 | ? | 193,510,039 |
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(2) Sale of goods/rendering of services
The Group
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Sale of goods | 3,276,078,507 | ? | 3,929,802,831 |
| Rendering of services | 21,374,733 | ? | 23,418,868 |
| Interest income received | 38,696,473 | ? | 28,454,504 |
| ? | ? | ? | ? |
| Total | 3,336,149,713 | ? | 3,981,676,203 |
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???????
The Company
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Sale of goods | 8,144 | ? | 582,164 |
| Rendering of services | 5,449,585,756 | ? | 4,610,851,622 |
| Interest income received | 6,796,437 | ? | 15,702,137 |
| ? | ? | ? | ? |
| Total | 5,456,390,337 | ? | 4,627,135,923 |
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(3) Leases
(a) As the lessor
The Group
| Type of assets leased | Lease income recognised in 2024 | ? | Lease income recognised in 2023 |
| ? | ? | ? | ? |
| Investment properties | 12,234,810 | ? | 9,823,412 |
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???????
The Company
| Type of assets leased | Lease income recognised in 2024 | ? | Lease income recognised in 2023 |
| ? | ? | ? | ? |
| Investment properties | 67,144,944 | ? | 65,795,509 |
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???????
(b) As the lessee
The Group
| ? | ? | ? | Rental expenses for practical expedient of short-term leases and the leases of low-value assets | ? | Variable lease payments not included in the measurement of the lease liability | ? | Rental payments | ? | Assumed interest expenses from lease liabilities | ? | Increased right-of-use assets | ||||||||||
| Name of lessor | Type of assets leased | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Electric Control Subsidiary | Fixed assets | ? | 1,156,657 | ? | - | ? | - | ? | - | ? | 1,625,411 | ? | 2,801,931 | ? | 9,049 | ? | 124,586 | ? | - | ? | - |
| Associated enterprises of the Group | Fixed assets | ? | 341,135 | ? | 328,378 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
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???????
The Company
| ? | ? | ? | Rental expenses for practical expedient of short-term leases and the leases of low-value assets | ? | Variable lease payments not included in the measurement of the lease liability | ? | Rental payments | ? | Assumed interest expenses from lease liabilities | ? | Increased right-of-use assets | ||||||||||
| Name of lessor | Type of assets leased | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Subsidiaries of the Group | Fixed assets | ? | 1,011,700 | ? | - | ? | - | ? | - | ? | 43,459,032 | ? | 42,971,406 | ? | 976,744 | ? | 4,093,830 | ? | - | ? | - |
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(4) Funding from related parties
The Company
| Name of related party | Amount of funding | ? | Inception date | Maturity date | |
| ? | ? | ? | ? | ||
| Funds received | 89,498,000,000 | 31 December 2023 to 20 November 2024 | Due 1-3 years | ||
| Funds provided | 30,180,000,000 | 19 February 2020 to 31 December 2024 | Right to request return at any time |
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(5) Remuneration of key management personnel
The Group and the Company
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Remuneration of key management personnel | RMB62,881,000 | ? | RMB51,002,000 |
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The remuneration of key management personnel above does not include the one withrespect to share-based payments scheme.
6 Unsettled items, including receivables from and payables to related parties
Receivables from related parties
The Group
| ? | ? | 2024 | ? | 2023 | ||||
| Item | Note | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | (1) | 612,658,442 | ? | - | ? | 1,147,791,923 | ? | - |
| Accounts receivable | ? | 765,108,795 | ? | 5,276,893 | ? | 848,755,589 | ? | 4,883,714 |
| Prepayments | ? | 6,032,969 | ? | - | ? | 10,054,763 | ? | - |
| Other receivables | ? | 1,521,951 | ? | - | ? | 787,519 | ? | - |
| Contract assets | ? | 439,180 | ? | - | ? | 6,977,790 | ? | - |
| Other non-current assets | ? | 55,227,648 | ? | - | ? | 16,934,571 | ? | - |
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???????
The Company
| ? | ? | 2024 | ? | 2023 | ||||
| Item | Note | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | (1) | 11,190,339 | ? | - | ? | 511,657 | ? | - |
| Accounts receivable | ? | 3,556,844,804 | ? | - | ? | 4,874,309,921 | ? | 4,315,658 |
| Prepayments | ? | 535,316 | ? | - | ? | - | ? | - |
| Other receivables | ? | 31,804,306,639 | ? | 91,589 | ? | 28,179,338,207 | ? | 12,280,686 |
| Other non-current assets | ? | 320,000,000 | ? | - | ? | 1,740,000,000 | ? | - |
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Payables to related parties
The Group
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 314,617,966 | ? | 114,282,939 |
| Advance payments received | ? | 202,505 | ? | 103,733 |
| Contract liabilities | ? | 15,549,505 | ? | 24,068,821 |
| Other payables | ? | 254,993,110 | ? | 202,371,165 |
| Non-current liabilities due within one year | (2) | 6,358,950 | ? | 6,000,000 |
| Short-term loans | (2) | 50,043,389 | ? | - |
| Long-term loans | (2) | 98,608,350 | ? | 1,107,750,000 |
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???????
The Company
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 171,389,697 | ? | 89,999,263 |
| Advance payments received | ? | 110,192 | ? | 798,119 |
| Contract liabilities | ? | 169,811 | ? | - |
| Other payables | ? | 3,087,450,524 | ? | 2,791,489,305 |
| Long-term loans | (2) | - | ? | 1,042,750,000 |
| Other non-current liabilities | ? | 89,520,793,681 | ? | 79,800,793,681 |
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(1) The Group's and the Company's cash at bank were deposits in Hua Xia Bank Co., Ltd.(2023:
China Minsheng Banking Corp.,Ltd.)
(2) The Group's and the Company's non-current liabilities, short-term loans and long-term loans
due within one year are loans from Hua Xia Bank Co., Ltd. .(2023: China Minsheng BankingCorp.,Ltd.)
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but notlisted in financial statement are as following:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Procurement of equipment | 237,948,651 | ? | 65,703,454 |
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XII Share-based payments
1 Equity instruments
| ? | Granted during the year | ? | Exercised during the year | ? | Unlocked during the year | ? | Forfeited during the year | ||||||||
| Type of grantees | Quantity | ? | Amount | ? | Quantity | ? | Amount | ? | Quantity | ? | Amount | ? | Quantity | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Senior management appointed by the Board of Directors | - | ? | - | ? | - | ? | - | ? | 3,944,160 | ? | 10,570,349 | ? | 209,220 | ? | 560,710 |
| Technical experts, middle management and above level | - | ? | - | ? | - | ? | - | ? | 91,915,315 | ? | 246,333,044 | ? | 7,303,772 | ? | 19,574,109 |
| Manager, senior technical cadre | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 197,248,486 | ? | 378,579,815 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | - | ? | - | ? | - | ? | - | ? | 95,859,475 | ? | 256,903,393 | ? | 204,761,478 | ? | 398,714,634 |
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???
Share options or other equity instruments outstanding at the end of the year
| ? | Share options outstanding at the end of the year | ? | Other equity instruments outstanding at the end of the year | ||||
| Type of grantees | Range of exercise prices | ? | Remaining contractual life | ? | Range of exercise prices | ? | Remaining contractual life |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Manager, senior technical cadre | RMB5.029 - 5.529 /share | ? | 1 - 2 years | ? | / | ? | / |
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2 Equity-settled share-based payments
On 17 November 2020, the Board of Directors of the Company approved the implementationof share options and restricted share incentive plans from 2020. The shares for the shareoptions and restricted share incentive plans are from the Company’s Renminbi A-shareordinary shares repurchased from secondary market. The plans are presented as follows:
(a) Share option incentive plan
The initial grant date was 21 December 2020, and the implementation was completedon 25 December 2020. The actual number of grantees was 1,988, with a number ofgrants of 596,229,700 shares. The second grant date was 27 August 2021, the actualnumber of grantees was 110, and the number of grants is 33,000,000 shares, this grantwas completed on 22 October 2021.
The share options are exercised in three phases after 24 months from the grant date.The exercise ratios for each phase are 34%, 33%, and 33%, respectively. Thecorresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.
When the Company’s performance meets the corresponding criteria, the proportion ofexercisable rights of the above-mentioned share options is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. In accordance with the plan, the Company will deregister thecurrent exercisable shares of the options obtained by the incentive objects if theexercise criteria stipulated in this plan are not met.
(b) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020, and theimplementation was completed on 29 December 2020. The actual number of granteeswas 793, with a number of grants of 321,813,800 share.
The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 monthsfrom the grant date, respectively. During the lock-up period, restricted shares grantedto the incentive object under this plan shall not be transferred, used for guarantee ordebt repayment before the lock-up release. Lock-up restricted shares are released inthree phases after 24 months from the grant date. The release ratios for each phaseare 34%, 33%, and 33%, respectively. The corresponding release dates are 2 years, 3years, and 4 years from the grant date. The actual number released shall be based onperformance assessment result for the previous year.
When the Company’s performance meets the corresponding criteria, the releaseproportion of the above-mentioned restricted shares is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. The Company will repurchase the locked restricted shares at thegranted price of the incentive objects if the release criteria stipulated in this plan are notmet, and the incentive object shall not release the restricted shares for the currentperiod.
The costs of equity-settled share-based payments recognised in the consolidatedfinancial statements for the year were RMB136,728,103, and the accumulated amountof equity-settled share-based payments recognised in the capital reserve amounted toRMB1,705,315,749. In the Company’s financial statements, the Company recognisedits long-term equity investment of RMB103,864,964 in its subsidiary at the fair value ofthe equity instruments at the grant date, and recognised expenses arising from share-based payments of RMB32,863,139, as well as recognised in the capital reserve ofRMB 136,728,103.
Based on relevant provisions of the restricted share incentive plan for the serviceperiod, if the granted object resigns before the release date, the Company willrepurchase the restricted shares that have not been released at the subscription priceof the granted object. Please refer to Note V.29(1) for the repurchased obligation setout in other payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the assessedfair value of the exercisable share options at each grant date (RMB 1.68/share, RMB
1.93/share and RMB 2.09/share, respectively); the fair value of equity instruments at thereserved grant date is determined based on assessed fair value of the exercisable shareoptions at each reserved grant B (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share,respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on the differencebetween the fair value of shares at the grant date and the subscription price at RMB
2.68/share.
(2) Basis for determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made accordingto the latest information, such as the number of employees who are granted options and thecompletion of performance indicators, and the number of equity instruments expected to vestis revised accordingly. On the vesting date, the estimated number is equal to the number ofequity instruments that are ultimately vested.
XIII. Capital management
The Group’s primary objective when managing capital is to safeguard its ability to continueas a going concern, so that it can continue to provide returns for shareholders, by pricingproducts and services commensurately with the level of risks and by securing access tofinancing at a reasonable cost.
The Group defines “capital” as including all components of equity, less unaccrued proposeddividends. The balances of related party transactions are not regarded by the Group ascapital.
The Group’s capital structure is regularly reviewed and managed to achieve an optimalstructure and return for shareholders. In this regard, factors for the Group’s considerationinclude: its future funding requirements, capital efficiency, actual and expected profitability,expected cash flows, and expected capital expenditure. Adjustments are made to the capitalstructure in light of changes in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capitalratio (total liabilities divided by total assets). The capital management strategies exerted bythe Group remained unchanged from 2023. In order to maintain or adjust the ratio, the Groupmay adjust the amount of dividends paid to shareholders, request new loans, issue newshares, or sell assets to reduce debt.
As at 31 December 2024 and 31 December 2023, the Group’s asset-liability ratios are asfollows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Asset-liability ratio | 52.43% | ? | 52.81% |
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Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.
XIV. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
| The Group | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 28,280,123,927 | ? | 15,399,501,743 |
| Contracts authorised but not entered into | 85,050,646,514 | ? | 123,338,068,701 |
| ? | ? | ? | ? |
| Total | 113,330,770,441 | ? | 138,737,570,444 |
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The Group’s contracts authorised but not entered into mainly included fixed assets andproject equipment planned to purchase in subsequent years.
| The Company | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 34,183,130,229 | ? | 42,398,401,670 |
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The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in its subsidiaries.
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2024, the Group did not have guarantees provided for externalenterprises.
(2) The Company as the guarantor
At 31 December 2024, The subsidiaries of the Company obtained long-term loans of RMB40,010,719,830 and USD1,422,632,000. The Company provides joint-liability guarantee forthe above loans.
XV. Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resourcesaccording to the business segments below.
(a) Display business — The display business integrates design and manufacturing of display
devices and strives to offer TFT-LCD, AMOLED, Microdisplay and other intelligent interfacedevices. This business focuses on providing high-quality smartphones, tablet PCs, laptops,monitors, TVs, vehicles, VR/AR and other display devices for customers.
(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design, providing customers with competitivesmart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low powerconsumption products, IoT, 3D displays, etc. With artificial intelligence and big data astechnical support, it focuses on products and services that integrate software and hardware,providing integrated solutions in IoT segments such as smart finance, smart industrial parks,etc.
(c) Sensor business - The sensor and application solutions integrate manufacturing models for
system solution design, covering both glass-based and silicon-based areas. It focuses onsmart windows, innovative glass-based sensor devices, MEMS sensors, industrial sensors,and consumer electronics, providing customers with products and solutions including smartdimming windows and dimming system solutions, industrial sensors and solutions, MEMSsensors, and X-ray flat panel detector backplanes.
(d) MLED business — The integrates design and manufacturing of devices and provides Mini-
LED backlight products with high quality and strong reliability as well as high dynamic rangethat allow precisely brightness adjustment for TVs, monitors, laptops, car displays, VR/ARand other products; besides, it provides Mini/Micro-LED display products with highbrightness, strong reliability and high contrast for use in outdoor display, commercial display,transparent display, special display and other scenarios.
(e) Smart medicine and engineering business - The smart medicine and engineering business is
a professional service model, providing services and solutions in healthcare, intelligentrehabilitation, and medical-engineering integration products. Meanwhile, the smart medicineand engineering business is committed to building a closed loop of full-cycle health serviceswith health management as the core, medical-engineering terminals as the traction, digitalhospitals and rehabilitation communities as the support, to create an intelligent healthmanagement ecosystem, to connect testing equipment, healthcare personnel andcustomers, and to provide customers with the "prevision-treatment-nursing" full-chainedhealth services.
(f) Others - In addition to the above businesses, the Group provides software-hardware fusion
and system integration solutions for different industries, specifically including intelligentinternet of vehicles, industrial interconnection and other segments, which can providecustomers with all-round, one-stop and intelligent new experiences in IoT segmentedscenarios.
The main reason to separate the segments is that the Group independently manages thedisplay business, IoT innovation business, sensor and application solutions, MLED and smartmedicine and engineering and other businesses. As these business segments manufactureand sale different products, apply different manufacturing processes and specifies in grossprofit, the business segments are managed independently. The management evaluates theperformance and allocates resources according to the profit of each business segment anddoes not take financing cost and investment income into account.
2 Accounting policies for the measurements of reporting segments
For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and costs attributable to eachreportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.
| ? | 2024 | |||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others and offsetting | ? | Total | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Operating income | 165,003,592,549 | ? | 33,828,880,608 | ? | 386,471,446 | ? | 8,483,421,034 | ? | 1,839,415,166 | ? | (11,161,175,142) | ? | 198,380,605,661 | |
| Operating costs | 143,955,472,188 | ? | 30,247,926,452 | ? | 304,425,278 | ? | 7,993,316,575 | ? | 1,899,758,297 | ? | (16,178,949,217) | ? | 168,221,949,573 | |
??
??
| ? | 2023 | ||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others and offsetting | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 146,603,375,798 | ? | 33,792,127,023 | ? | 405,037,922 | ? | 5,664,637,280 | ? | 1,676,326,992 | ? | (13,598,059,120) | ? | 174,543,445,895 |
| Operating costs | 134,669,314,965 | ? | 30,940,234,587 | ? | 330,920,417 | ? | 5,512,239,740 | ? | 1,681,025,214 | ? | (18,660,064,887) | ? | 154,473,670,036 |
??
??
The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of eachreportable segment respectively by business. Besides, the Group restates comparative information in 2023 according to the classification ofsegment reporting in 2024.
3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving the services or
goods
The following table sets out information about the geographical location of the Group’soperating income from external customers:
| ? | Operating income from external customers | ||
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Mainland China | 99,522,213,629 | ? | 80,541,975,332 |
| Other regions | 98,858,392,032 | ? | 94,001,470,563 |
| ? | ? | ? | ? |
| Total | 198,380,605,661 | ? | 174,543,445,895 |
???????
???????
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physicallocation of the asset, in the case of fixed assets; the location of the operation to which theyare allocated, in the case of intangible assets and goodwill; and the location of operations, inthe case of interests in associates and joint ventures. Most of the non-current assets in theGroup are located in the Mainland China.
4 Major customers
The Group has 1 customer (2023: 1), the operating income from which is over 10% of theGroup’s total operating income. The operating income from the customer, which representsapproximately 15% of the Group’s total operating income, is summarised in the table below:
| Customer | 2024 | ? | 2023 |
| ? | RMB | ? | RMB |
| ? | ? | ? | ? |
| Customer 1 | 29,896,086,331 | ? | 26,082,948,856 |
???
???
XVI. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Accounts receivable | 3,560,415,637 | ? | 4,877,977,515 |
| Less: Provision for bad and doubtful debts | 3,248,761 | ? | 7,564,419 |
| ? | ? | ? | ? |
| Total | 3,557,166,876 | ? | 4,870,413,096 |
???????
???????
(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 3,217,732,115 | ? | 3,662,390,168 |
| Over 1 year but within 2 years (inclusive) | 1,322,026 | ? | 869,370,034 |
| Over 2 years but within 3 years (inclusive) | 785,947 | ? | 37,761,471 |
| Over 3 years | 340,575,549 | ? | 308,455,842 |
| ? | ? | ? | ? |
| Sub-total | 3,560,415,637 | ? | 4,877,977,515 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 3,248,761 | ? | 7,564,419 |
| ? | ? | ? | ? |
| Total | 3,557,166,876 | ? | 4,870,413,096 |
??????
??????
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
| ? | 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 3,248,761 | ? | 0% | ? | 3,248,761 | ? | 100% | ? | - |
| - Customers with low credit risk | 3,556,844,804 | ? | 100% | ? | - | ? | 0% | ? | 3,556,844,804 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 322,072 | ? | 0% | ? | - | ? | 0% | ? | 322,072 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,560,415,637 | ? | 100% | ? | 3,248,761 | ? | 0% | ? | 3,557,166,876 |
???????
???????
| ? | 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 7,564,419 | ? | 0% | ? | 7,564,419 | ? | 100% | ? | - |
| - Customers with low credit risk | 4,869,994,263 | ? | 100% | ? | - | ? | 0% | ? | 4,869,994,263 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 418,833 | ? | 0% | ? | - | ? | 0% | ? | 418,833 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,877,977,515 | ? | 100% | ? | 7,564,419 | ? | 0% | ? | 4,870,413,096 |
??????
??????
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Customers with high credit risk | ? | Total | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Customers with high credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | 7,564,419 | ? | 7,564,419 | ? | - | ? | 79,397 | ? | 8,406,011 | ? | 8,485,408 |
| Charge during the year | - | ? | - | ? | - | ? | - | ? | - | ? | 9,367 | ? | - | ? | 9,367 |
| Recoveries during the year | - | ? | - | ? | - | ? | - | ? | - | ? | (88,764) | ? | (841,592) | ? | (930,356) |
| Written-off during the year | - | ? | - | ? | (4,315,658) | ? | (4,315,658) | ? | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | - | ? | 3,248,761 | ? | 3,248,761 | ? | - | ? | - | ? | 7,564,419 | ? | 7,564,419 |
???????
???????
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB2,975,671,682amounting to 84% of the total accounts receivable at the end of the year, and no provisionsfor bad and doubtful debts were made at the end of the year.
2 Other receivables
| Item | Notes | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends receivable | (1) | 1,625,667,171 | ? | 1,189,273,456 |
| Others | (2) | 30,450,047,947 | ? | 27,192,355,082 |
| ? | ? | ? | ? | ? |
| Total | ? | 32,075,715,118 | ? | 28,381,628,538 |
???????
???????
(1) Dividends receivable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| BOE Optoelectronics Holdings Co., Ltd. | 800,772,478 | ? | 545,367,900 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 400,000,000 | ? | 135,000,000 |
| Beijing Matsushita Colour Innovation Co., Ltd. | 382,655,888 | ? | 468,758,202 |
| Beijing BOE Land Co., Ltd. | 25,345,840 | ? | 40,147,354 |
| Others | 16,892,965 | ? | - |
| ? | ? | ? | ? |
| Total | 1,625,667,171 | ? | 1,189,273,456 |
?????
?????
(2) Others
(a) The Company’s other receivables are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Other receivables | 30,453,997,104 | ? | 27,208,493,001 |
| Less: Provision for bad and doubtful debts | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? |
| Total | 30,450,047,947 | ? | 27,192,355,082 |
???????
???????
(b) The ageing analysis of other receivables of the Company is as follows:
| Ageing | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 14,613,008,207 | ? | 26,906,173,796 |
| Over 1 year but within 2 years (inclusive) | 15,566,224,475 | ? | 136,005,824 |
| Over 2 years but within 3 years (inclusive) | 133,433,055 | ? | 68,122,231 |
| Over 3 years | 141,331,367 | ? | 98,191,150 |
| ? | ? | ? | ? |
| Sub-total | 30,453,997,104 | ? | 27,208,493,001 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? |
| Total | 30,450,047,947 | ? | 27,192,355,082 |
???????
???????
The ageing is counted starting from the date when other receivables are recognised.
(c) Other receivables by provisioning method
| ? | 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 3,949,157 | ? | 0% | ? | 3,949,157 | ? | 100% | ? | - |
| - Amounts with low credit risk | 30,450,047,947 | ? | 100% | ? | - | ? | ? | ? | 30,450,047,947 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,453,997,104 | ? | 100% | ? | 3,949,157 | ? | 0% | ? | 30,450,047,947 |
??????
??????
| ? | 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 16,137,919 | ? | 0% | ? | 16,137,919 | ? | 100% | ? | - |
| - Amounts with low credit risk | 27,192,355,082 | ? | 100% | ? | - | ? | 0% | ? | 27,192,355,082 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 27,208,493,001 | ? | 100% | ? | 16,137,919 | ? | 0% | ? | 27,192,355,082 |
?????
?????
(d) Movements of provisions for bad and doubtful debts
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? | ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? |
| ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total | ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | 16,137,919 | ? | 16,137,919 | ? | - | ? | - | ? | 20,707,796 | ? | 20,707,796 |
| Charge during the year | - | ? | - | ? | 80,000,336 | ? | 80,000,336 | ? | - | ? | - | ? | 176,044 | ? | 176,044 |
| Reversals during the year | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (4,745,921) | ? | (4,745,921) |
| Written-off during the year | - | ? | - | ? | (92,189,098) | ? | (92,189,098) | ? | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | - | ? | 3,949,157 | ? | 3,949,157 | ? | - | ? | - | ? | 16,137,919 | ? | 16,137,919 |
???????
???????
(e) The Group’s other receivables categorised by nature
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Current accounts | (i) | 30,195,532,432 | ? | 26,989,987,234 |
| Others | ? | 258,464,672 | ? | 218,505,767 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 30,453,997,104 | ? | 27,208,493,001 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? | ? |
| Total | ? | 30,450,047,947 | ? | 27,192,355,082 |
???????
???????
(i) As at 31 December 2024 and 31 December 2023, the Company's current
accounts mainly consisted of loans receivable from subsidiaries.
(f) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Companyamounted to RMB23,215,154,567 in total, most of which are amounts due to / fromrelated parties within the Group. No provision is made for bad and doubtful debts afterassessment.
3 Long-term equity investments
(1) The Company’s long-term equity investments by category:
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Investments in subsidiaries | 200,829,541,576 | ? | 187,984,376,186 |
| Investments in associates and joint ventures | 2,362,000,389 | ? | 3,156,825,405 |
| ? | ? | ? | ? |
| Sub-total | 203,191,541,965 | ? | 191,141,201,591 |
| ? | ? | ? | ? |
| Less: Provision for impairment | - | ? | 32,000,000 |
| ? | ? | ? | ? |
| Total | 203,191,541,965 | ? | 191,109,201,591 |
???????
???????
(2) Investments in subsidiaries
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ? | ? | ||||
| Name of entity | Balance at the beginning of the year | ? | Increase in investments | ? | Share-based payments | ? | Reductions during the year | ? | Balance at the end of the year | ? | Balance of provision for impairment at the beginning of the year | ? | Balance of provision for impairment at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25,132,862,300 | ? | - | ? | 11,489,469 | ? | - | ? | 25,144,351,769 | ? | - | ? | - |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 2,774,220,036 | ? | - | ? | 5,339,250 | ? | - | ? | 2,779,559,286 | ? | - | ? | - |
| Beijing BOE Display Technology Co., Ltd. | 9,023,454,530 | ? | - | ? | 26,209,213 | ? | - | ? | 9,049,663,743 | ? | - | ? | - |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 10,424,839,990 | ? | - | ? | 5,956,382 | ? | - | ? | 10,430,796,372 | ? | - | ? | - |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,816,424,205 | ? | - | ? | 629,141 | ? | - | ? | 11,817,053,346 | ? | - | ? | - |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 4,225,776,398 | ? | - | ? | 2,617,284 | ? | - | ? | 4,228,393,682 | ? | - | ? | - |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 15,243,649,837 | ? | - | ? | 1,952,980 | ? | - | ? | 15,245,602,817 | ? | - | ? | - |
| Beijing BOE Vision-electronic Technology Co., Ltd. | 4,447,858,263 | ? | 710,000,000 | ? | - | ? | - | ? | 5,157,858,263 | ? | - | ? | - |
| Beijing BOE Vacuum Electronics Co., Ltd. | 20,126,113 | ? | - | ? | 85,200 | ? | - | ? | 20,211,313 | ? | - | ? | - |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000 | ? | - | ? | - | ? | (32,000,000) | ? | - | ? | 32,000,000 | ? | - |
| Beijing Yinghe Century Co., Ltd. | 358,184,475 | ? | - | ? | 2,458,930 | ? | - | ? | 360,643,405 | ? | - | ? | - |
| BOE Optical Science and technology Co., Ltd. | 669,553,238 | ? | - | ? | 1,085,054 | ? | - | ? | 670,638,292 | ? | - | ? | - |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 43,836,688 | ? | - | ? | (1,222,207) | ? | - | ? | 42,614,481 | ? | - | ? | - |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,356,796,294 | ? | - | ? | - | ? | - | ? | 1,356,796,294 | ? | - | ? | - |
| Beijing BOE Multimedia Technology Co., Ltd. | 400,000,000 | ? | - | ? | - | ? | (400,000,000) | ? | - | ? | - | ? | - |
| Beijing BOE Energy Technology Co., Ltd. | 858,249,916 | ? | - | ? | 642,897 | ? | - | ? | 858,892,813 | ? | - | ? | - |
| Beijing BOE Life Technology Co., Ltd. | 10,000,000 | ? | - | ? | - | ? | - | ? | 10,000,000 | ? | - | ? | - |
| Beijing Zhongxiangying Technologies Co., Ltd. | 102,490,962 | ? | - | ? | 56,853 | ? | - | ? | 102,547,815 | ? | - | ? | - |
| Beijing BOE Semi-conductor Co., Ltd. | 9,450,000 | ? | - | ? | - | ? | - | ? | 9,450,000 | ? | - | ? | - |
| BOE Optoelectronics Holding Co., Ltd | 3,487,684,762 | ? | - | ? | - | ? | - | ? | 3,487,684,762 | ? | - | ? | - |
| BOE Healthcare Investment & Management Co., Ltd. | 9,422,994,176 | ? | 713,000,000 | ? | 839,520 | ? | - | ? | 10,136,833,696 | ? | - | ? | - |
| Hefei BOE Display Technology Co., Ltd. | 8,979,853,583 | ? | - | ? | 4,170,939 | ? | - | ? | 8,984,024,522 | ? | - | ? | - |
| Beijing BOE Technology Development Co., Ltd | 2,955,574 | ? | 10,000,000 | ? | 200,616 | ? | - | ? | 13,156,190 | ? | - | ? | - |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 605,598,776 | ? | - | ? | 671,040 | ? | - | ? | 606,269,816 | ? | - | ? | - |
| Beijing BOE Land Co., Ltd. | 10,000,162 | ? | - | ? | 236,808 | ? | - | ? | 10,236,970 | ? | - | ? | - |
| Beijing BOE Marketing Co., Ltd. | 31,885,370 | ? | - | ? | 254,280 | ? | - | ? | 32,139,650 | ? | - | ? | - |
| BOE KOREA Co., Ltd | 8,993,260 | ? | - | ? | 644,996 | ? | - | ? | 9,638,256 | ? | - | ? | - |
| Yunnan Invensight Optoelectronics Technology Co., Ltd. | 1,521,548,388 | ? | - | ? | 1,166,618 | ? | - | ? | 1,522,715,006 | ? | - | ? | - |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 22,347,538,961 | ? | - | ? | 2,387,605 | ? | - | ? | 22,349,926,566 | ? | - | ? | - |
| Beijing BOE Sensing Technology Co., Ltd. | 4,537,093,774 | ? | 50,000,000 | ? | 1,912,511 | ? | - | ? | 4,589,006,285 | ? | - | ? | - |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 12,530,838,461 | ? | - | ? | 2,464,272 | ? | - | ? | 12,533,302,733 | ? | - | ? | - |
| Chongqing BOE Display Technology Co., Ltd. | 10,017,479,885 | ? | - | ? | 2,119,225 | ? | - | ? | 10,019,599,110 | ? | - | ? | - |
| Fuzhou BOE Display Technology Co., Ltd. | 23,060,520 | ? | - | ? | - | ? | - | ? | 23,060,520 | ? | - | ? | - |
| Beijing Matsushita Colour Innovation Co., Ltd. | 6,146,008 | ? | - | ? | 651,240 | ? | - | ? | 6,797,248 | ? | - | ? | - |
| BOE Innovation Investment Co., Ltd. | 3,677,760,342 | ? | 1,099,000,000 | ? | 548,165 | ? | - | ? | 4,777,308,507 | ? | - | ? | - |
| Hefei BOE Xingyu Technology Co., Ltd. | 506,907,751 | ? | - | ? | 245,916 | ? | - | ? | 507,153,667 | ? | - | ? | - |
| BOE Education Technology Co., Ltd. | 29,259,274 | ? | - | ? | - | ? | (29,259,274) | ? | - | ? | - | ? | - |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | 15,927,168 | ? | - | ? | 687,665 | ? | - | ? | 16,614,833 | ? | - | ? | - |
| BOE Smart Technology Co., Ltd. | 2,722,000,000 | ? | 214,444,400 | ? | - | ? | - | ? | 2,936,444,400 | ? | - | ? | - |
| Nanjing BOE Display Technology Co., Ltd. | 5,602,671,987 | ? | - | ? | 1,600,916 | ? | - | ? | 5,604,272,903 | ? | - | ? | - |
| Chengdu BOE Display Sci-tech Co., Ltd. | 7,561,638,738 | ? | - | ? | 907,482 | ? | - | ? | 7,562,546,220 | ? | - | ? | - |
| BOE Mled Technology Co., Ltd. | 1,464,806,545 | ? | 174,000,000 | ? | 2,108,006 | ? | - | ? | 1,640,914,551 | ? | - | ? | - |
| Beijing BOE Solar Energy Technology Co., Ltd. | 51,886,158 | ? | 170,000,000 | ? | (612,074) | ? | - | ? | 221,274,084 | ? | - | ? | - |
| Chengdu BOE Display Technology Co., Ltd. | 399,988,000 | ? | 4,099,877,000 | ? | - | ? | - | ? | 4,499,865,000 | ? | - | ? | - |
| Beijing BOE Chuangyuan Technology Co., Ltd. | 2,249,653,000 | ? | 5,175,238,300 | ? | 2,267,663 | ? | - | ? | 7,427,158,963 | ? | - | ? | - |
| Mianyang BOE Electronics Technology Co., Ltd. | 680,000,000 | ? | 787,000,000 | ? | - | ? | - | ? | 1,467,000,000 | ? | - | ? | - |
| Beijing Shiyan Technology Co., Ltd. | 167,200,000 | ? | - | ? | 1,699,524 | ? | - | ? | 168,899,524 | ? | - | ? | - |
| BOE HC SemiTek Corporation | 2,083,597,236 | ? | - | ? | - | ? | - | ? | 2,083,597,236 | ? | - | ? | - |
| Others* | 287,635,082 | ? | - | ? | 19,391,585 | ? | - | ? | 307,026,667 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 187,984,376,186 | ? | 13,202,559,700 | ? | 103,864,964 | ? | (461,259,274) | ? | 200,829,541,576 | ? | 32,000,000 | ? | - |
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* Others represented equity-settled share-based payments granted by the Company toemployees of other subsidiaries.
For information about the major subsidiaries of the Company, refer to Note VIII.1.
(3) Investments in associates
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ||||||||||
| Investee | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Investment (loss) /income under equity method | ? | Other comprehensive income | ? | Other changes in equity | ? | Declared distribution of cash dividends or profits | ? | Balance at the end of the year | ? | Balance of provision for impairment at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,864,768,203 | ? | - | ? | - | ? | (501,218,917) | ? | 6,032,979 | ? | - | ? | (447,573,615) | ? | 922,008,650 | ? | - |
| Erdos BOE Energy Investment Co., Ltd. | 135,928,979 | ? | - | ? | - | ? | (422,258) | ? | - | ? | 170,648 | ? | - | ? | 135,677,369 | ? | - |
| Others | 1,156,128,223 | ? | 110,179,400 | ? | - | ? | 25,370,436 | ? | 24,998,343 | ? | 2,527,639 | ? | (14,889,671) | ? | 1,304,314,370 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | - |
| ? | 3,156,825,405 | ? | 110,179,400 | ? | - | ? | (476,270,739) | ? | 31,031,322 | ? | 2,698,287 | ? | (462,463,286) | ? | 2,362,000,389 | ? | - |
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BOE Technology Group Co., Ltd. Annual Report 2024
4 Other payables
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends payable | ? | 6,451,170 | ? | 6,451,170 |
| Others | (1) | 3,464,889,503 | ? | 3,509,544,809 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,471,340,673 | ? | 3,515,995,979 |
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(1) The Company’s other payables by category are as follows
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Amounts due to / from subsidiaries | ? | 3,075,540,118 | ? | 2,791,489,305 |
| Repurchase obligation of restricted shares | V.41 | 211,839,210 | ? | 457,401,616 |
| Purchase of projects, equipment and intangible assets | ? | 94,897,198 | ? | 132,545,852 |
| Others | ? | 82,612,977 | ? | 128,108,036 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,464,889,503 | ? | 3,509,544,809 |
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5 Long-term loans
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Unsecured loans | 52,243,655,504 | ? | 48,042,049,084 |
| Less: Long-term loans due within one year | 10,986,055,504 | ? | 3,988,949,084 |
| ? | ? | ? | ? |
| Total | 41,257,600,000 | ? | 44,053,100,000 |
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The interest rate of RMB long-term loans for the Company ranged from 1.20% to 3.10% in 2024(2023: 1.20% to 3.30%).
6 Capital reserve
| Item | ? | 1 January 2024 | ? | Additions during the period | ? | Reductions during the period | ? | 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Share premium | ? | 50,789,584,924 | ? | - | ? | (9,986,070) | ? | 50,779,598,854 |
| Other capital reserves | ? | 952,235,800 | ? | 139,531,898 | ? | - | ? | 1,091,767,698 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 51,741,820,724 | ? | 139,531,898 | ? | (9,986,070) | ? | 51,871,366,552 |
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7 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||
| Item | Balance at the beginning of the year | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Less: Transfer of other comprehensive income to profit or loss | ? | Less: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Items that will not be reclassified to profit or loss | (296,327,466) | ? | 29,794,066 | ? | 719,358 | ? | - | ? | 526,560 | ? | (267,779,318) |
| Including: Other comprehensive income recognised under equity method | (181,822,570) | ? | 31,031,322 | ? | 904,946 | ? | - | ? | 526,560 | ? | (152,222,754) |
| Changes in fair value of investments in other equity instruments | (114,504,896) | ? | (1,237,256) | ? | (185,588) | ? | - | ? | - | ? | (115,556,564) |
| Items that may be reclassified to profit or loss | (105,590) | ? | - | ? | - | ? | - | ? | - | ? | (105,590) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (296,433,056) | ? | 29,794,066 | ? | 719,358 | ? | - | ? | 526,560 | ? | (267,884,908) |
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8 Retained earnings
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Retained earnings at the beginning of the year | 7,186,134,196 | ? | 6,624,620,470 |
| Add: Net profits for the year | 3,079,231,881 | ? | 3,305,971,786 |
| Less: Appropriation for statutory surplus reserve | 307,923,188 | ? | 330,597,179 |
| Interest on holders of other equity instruments | 70,000,000 | ? | 118,551,232 |
| Dividends to ordinary shares | 1,129,073,743 | ? | 2,296,367,348 |
| Transfer of other comprehensive income to retained earnings | (473,904) | ? | (1,057,699) |
| ? | ? | ? | ? |
| Retained earnings at the end of the year | 8,758,843,050 | ? | 7,186,134,196 |
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9 Operating income and operating costs
| ? | 2024 | ? | 2023 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 5,514,699,140 | ? | 9,430,925 | ? | 4,669,890,971 | ? | 11,551,234 |
| Other operating activities | 43,411,212 | ? | 2,028,596 | ? | 38,575,016 | ? | 1,076,333 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 5,558,110,352 | ? | 11,459,521 | ? | 4,708,465,987 | ? | 12,627,567 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 5,452,693,863 | ? | 1,788,997 | ? | 4,604,652,687 | ? | 3,072,136 |
| Other income | 105,416,489 | ? | 9,670,524 | ? | 103,813,300 | ? | 9,555,431 |
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10 Investment income
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the cost method | 2,113,201,157 | ? | 1,555,817,904 |
| Income from long-term equity investments accounted for using the equity method | (476,270,739) | ? | 429,364,809 |
| Investment income from disposal of long-term equity investments | - | ? | 1,581,850 |
| Dividend income from investments in other equity instruments | - | ? | 728,606 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | - | ? | 728,606 |
| Others | 71,214,434 | ? | 3,990,185 |
| ? | ? | ? | ? |
| Total | 1,708,144,852 | ? | 1,991,483,354 |
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11 Supplementary information for the cash flow statement
(1) Supplement to the cash flow statement
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit | 3,079,231,881 | ? | 3,305,971,786 |
| Add: Depreciation of fixed assets, investment properties and right-of-use assets | 212,111,340 | ? | 205,071,503 |
| Amortisation of intangible assets | 153,958,598 | ? | 181,868,535 |
| Amortisation of long-term deferred expenses | 72,877,017 | ? | 73,436,949 |
| Losses from scrapping of fixed assets | 8,766 | ? | 4,248,142 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (818) | ? | (5,077,109) |
| Credit losses | 80,000,336 | ? | (5,490,866) |
| Gains from changes in fair value | (3,403,675) | ? | (49,498,773) |
| Financial expenses | 515,803,000 | ? | 414,990,764 |
| Investment income | (1,708,144,852) | ? | (1,991,483,354) |
| Share-based payments | 32,863,140 | ? | 76,890,841 |
| Changes in deferred income | (907,661,360) | ? | (978,788,846) |
| Changes in deferred tax liabilities | (204,759,083) | ? | 97,968,124 |
| Increase in inventories | (11,861,376) | ? | (4,271,106) |
| Decrease/(increase) in operating receivables | 2,630,702,553 | ? | (411,585,912) |
| Increase in operating payables | 1,028,430,879 | ? | 56,568,894 |
| ? | ? | ? | ? |
| Net cash flows generated from operating activities | 4,970,156,346 | ? | 970,819,572 |
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| (b) Change in cash and cash equivalents: | ? | ? | ? |
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 4,442,011,688 | ? | 4,249,329,821 |
| Less: Cash and cash equivalents at the beginning of the year | 4,249,329,821 | ? | 7,111,879,033 |
| ? | ? | ? | ? |
| Net increase/(decrease) in cash and cash equivalents | 192,681,867 | ? | (2,862,549,212) |
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(2) Details of cash and cash equivalents
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Cash on hand | 13,969 | ? | 14,205 |
| Bank deposits available on demand | 4,437,526,860 | ? | 4,248,378,624 |
| Other monetary funds available on demand | 4,470,859 | ? | 936,992 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 4,442,011,688 | ? | 4,249,329,821 |
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Note: Cash and cash equivalents disclosed above exclude bank deposits held for investment
purposes, bank deposit interest accrued at the end of the period, and other monetary fundwith restricted usage.
XVII. Extraordinary gains and losses in 2024
| ? | 2024 |
| ? | ? |
| Gains and losses from disposal of non-current assets, including the written-off on the provisions for impairment of assets | 150,314,680 |
| Government grants recognised in profit or loss (except for those which are closely related to the company’s normal operations, which the company is entitled to under established standards in accordance with government policies and which have a continuing impact on the profits and losses of the company) | 1,220,722,012 |
| For a company which is not a financial institution, gains and losses arising from changes in the fair value of financial assets and financial liabilities held by the company, and those arising from the disposal of financial assets and financial liabilities, other than those held for effective hedging related to normal operations | 571,124,492 |
| Reversal of provision for bad and doubtful debts assessed on an individual basis | 6,099,046 |
| Other non-operating income and expenses besides the items above | 153,063,492 |
| ? | ? |
| Sub-total | 2,101,323,722 |
| ? | ? |
| Tax effect | 208,616,605 |
| Effect on non-controlling interests after taxation | 406,583,010 |
| ? | ? |
| Total | 1,486,124,107 |
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Notes: 1. There is no significant impact of the implementation of Interpretive
Pronouncement on the Preparation of Information Disclosures of Companies IssuingPublic Shares No. 1 – Extraordinary Gains and Losses (Revised in 2023) on theGroup’s extraordinary gains and losses.
2. Extraordinary gain and loss item listed above are presented in the amount before
taxation.
XVIII. Return on net assets and earnings per share
In accordance with Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings PerShare (2010 revised) issued by the CSRC and relevant accounting standards, the Group’s returnon net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | ? | Basic earnings per share | ? | Diluted earnings per share |
| ? | ? | ? | ? | ? | ? |
| Net profit attributable to the Company’s ordinary equity shareholders | 4.05% | ? | 0.14 | ? | Not applicable |
| Net profit excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 2.90% | ? | 0.10 | ? | Not applicable |
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1 Calculation of earnings per share
(1) Basic earnings per share
For the calculation of basic earnings per share, refer to Note V.59.
(2) Basic earnings per share excluding extraordinary gains and losses
Basic earnings per share excluding extraordinary gains and losses is calculated by dividingconsolidated net profit excluding extraordinary gains and losses attributable to ordinaryshareholders of the Company by the weighted average number of ordinary shares outstanding:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Extraordinary gains and losses attributable to ordinary shareholders of the Company | 1,486,124,107 | ? | 3,179,996,704 |
| Consolidated net profit/(loss) excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 3,764,379,901 | ? | (768,286,473) |
| Weighted average number of ordinary shares outstanding | 37,519,930,241 | ? | 37,429,510,530 |
| Basic earnings per share excluding extraordinary gains and losses (RMB/share) | 0.10 | ? | (0.02) |
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2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated by dividing consolidated net profit attributableto ordinary shareholders of the Company by the weighted average amount of consolidated netassets:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
| Weighted average return on net assets | 4.05% | ? | 1.89% |
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The calculation of the weighted average amount of consolidated net assets is as follows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net assets at the beginning of the year | 127,384,904,121 | ? | 127,909,808,396 |
| Effect of consolidated net profit attributable to ordinary shareholders of the Company | 2,625,252,004 | ? | 1,205,855,116 |
| Effect of non-public issuance of shares | - | ? | - |
| Effect of repurchase of treasury shares | (16,830,932) | ? | - |
| Profit distribution to ordinary equity shareholders | (564,536,872) | ? | (1,335,983,365) |
| Effect of changes in shareholding ratio of subsidiaries | (24,300,265) | ? | (418,139,849) |
| Effect of other equity changes attributable to the Company’s ordinary equity shareholders | 259,505,543 | ? | 312,715,166 |
| ? | ? | ? | ? |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
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(2) Weighted average return on net assets excluding extraordinary gains and losses
Weighted average return on net assets excluding extraordinary gains and losses is calculated bydividing consolidated net profit excluding extraordinary gains and losses attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit/(loss) excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 3,764,379,901 | ? | (768,286,473) |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
| Weighted average return on net assets excluding extraordinary gains and losses | 2.90% | ? | (0.60%) |
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