BOE Technology Group Co., Ltd.
ENGLISH TRANSLATION OF FINANCIAL STATEMENTSFOR THE YEAR 1 JANUARY 2019 TO 31 DECEMBER 2019IF THERE IS ANY CONFLICT OF MEANING BETWEEN THE CHINESE VERSIONAND ENGLISH TRANSLATION, THE CHINESE VERSION WILL PREVAIL
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AUDITORS’ REPORT
毕马威华振审字第2002383号
All Shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology GroupCompany Limited (“BOE”), which comprise the consolidated and parent company’s balancesheet as at 31 December 2019, the consolidated and parent company’s income statement,the consolidated and parent company’s cash flow statement, and the consolidated andparent company’s statement of changes in shareholders’ equity for the year then ended, andnotes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and parent company’s financial position of BOE as at 31 December 2019,and its consolidated and parent company’s financial performance and cash flows of BOE forthe year then ended in accordance with Accounting Standards for Business Enterprisesissued 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.
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383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 of the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in formingour 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” 22 and “V. Notes to the consolidated financial statements” 42. | |
| 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 sales of products relating to display device across the domestic and overseas market. 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 major risks and rewards according to the trading terms, and recognizes revenue accordingly. Depending on the trading terms, the income is usually recognized 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 recognized 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, delivery receipts, etc. to evaluate whether revenue is recognized in accordance with the accounting policy 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, delivery receipts, etc. to evaluate whether revenue is recorded in |
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383号
Key Audit Matters (continued)
| Revenue recognition | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 22 and “V. Notes to the consolidated financial statements” 42. | |
| 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 certification 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 assess whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents. | |
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383号
Key Audit Matters (continued)
| Book value of fixed assets and construction in progress | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 13, 14 and “V. Notes to the consolidated financial statements” 14, 15. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| BOE Group continued to invest in building production lines of display device to expand its production capacity. As at 31 December 2019, the book value of fixed assets and construction in progress amounted to RMB 213.16 billion. The judgement made by the management on the following aspects will affect the book value of fixed assets and construction in progress, including: ? Determine which type of expenditures are qualified for capitalization; ? Determine the timing for transferring construction in progress to fixed assets and making depreciation; ? Estimate the useful life and residual value of corresponding fixed assets. We identified the book value of fixed assets and construction in progress of BOE Group as a key audit matter because the valuation of the book value of fixed assets and construction in progress involves significant judgement from the management and it is of importance to the consolidated financial statements. | Our audit procedures to assess the book value of fixed assets and construction in progress included the following: ? Evaluate the design and operation effectiveness of key internal controls (including estimating useful life and residual values, etc.) related to the integrity, existence and accuracy of fixed assets and construction in progress; ? Check the physical status of construction in progress and fixed assets on a sampling basis; ? Check capital expenditures with relevant supporting documents (including purchase agreements/orders, acceptance orders, engineering construction contracts, project progress reports, etc.) on a sampling basis; ? Assess whether the capitalized commissioning expenses for the current year are in compliance with relevant capitalization conditions; check the commissioning expenses with relevant supporting documents on a sampling basis; ? On the basis of sampling, assess the timing for transferring construction in progress to fixed assets, through the inspection of commissioning situation and the documents for transferring construction in progress to fixed assets; ? Based on our understanding of industry practices and actual operating conditions of assets, we evaluate the management's estimation of the useful life and residual value of fixed assets. |
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383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” 19 and “V. Notes to the consolidated financial statements” 14, 16. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| BOE Group principally generates revenue from the production and sale of display panels. Due to the fluctuation of supply-demand relationship in the display panel industry and the influence of technology upgrading, the profit level is unstable. As at 31 December 2019, the book value of fixed assets and intangible assets amounted to RMB 133.20 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. | Our audit procedures to assess the 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, assess the competence, professional quality and objectivity of experts hired by the management; and adopt oun own valuation experts’ work, assess if discount rates used for estimating the present value of future cash |
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383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” 19 and “V. Notes to the consolidated financial statements” 14, 16. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2019 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. 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 assess the 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; assess 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 consistant with relevant accounting policy. |
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383号
Other Information
BOE’s management is responsible for the other information. The other information comprisesall the information included in 2019 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 Accounting Standards for Business Enterprises, and forthe design, implementation and maintenance of such internal control necessary to enablethat the financial statements are free from material misstatement, whether due to fraud orerror.
In preparing the financial statements, management is responsible for assessing the ability ofBOE to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless BOE either intends toliquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reportingprocess of BOE.
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383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:
(1) 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 thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the BOE’sability to continue as a going concern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause BOE to cease to continue as agoing concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
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AUDITOR’S REPORT (continued)
毕马威华振审字第2002383号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
(6) 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 instruction, supervision and execution of ConchGroup’s audit, and assume full responsibility for the 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
Zhang Huan (Engagement Partner)
Beijing, China Chai Jing
24 April 2020
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2019
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Asset | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets: | ? | ? | ? | ? |
| Cash at bank and on hand | V.1 | 56,972,723,239 | ? | 51,481,539,711 |
| Financial assets held for trading | V.2 | 5,809,184,994 | ? | - |
| Bills receivable | V.3 | 331,145,492 | ? | 656,781,577 |
| Accounts receivable | V.4 | 18,135,687,806 | ? | 19,880,680,518 |
| Prepayments | V.5 | 626,985,706 | ? | 770,633,448 |
| Other receivables | V.6 | 706,171,112 | ? | 2,454,174,971 |
| Inventories | V.7 | 12,396,194,762 | ? | 11,985,398,172 |
| Assets held for sale | V.8 | 173,910,820 | ? | - |
| Other current assets | V.9 | 9,296,637,067 | ? | 12,463,073,779 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 104,448,640,998 | ? | 99,692,282,176 |
| ? | ? | ? | ? | ? |
| Non-current assets: | ? | ? | ? | ? |
| Available-for-sale financial assets | V.10 | - | ? | 734,022,359 |
| Long-term equity investments | V.11 | 2,718,037,934 | ? | 2,389,166,886 |
| Investments in other equity instruments | V.12 | 632,076,647 | ? | - |
| Investment properties | V.13 | 1,241,242,850 | ? | 1,283,867,651 |
| Fixed assets | V.14 | 125,786,241,938 | ? | 128,157,730,995 |
| Construction in progress | V.15 | 87,376,782,527 | ? | 56,423,354,887 |
| Intangible assets | V.16 | 7,416,416,829 | ? | 5,937,679,394 |
| Goodwill | V.17 | 707,603,856 | ? | 904,370,509 |
| Long?term deferred expenses | V.18 | 345,424,409 | ? | 360,640,853 |
| Deferred tax assets | V.19 | 248,153,761 | ? | 252,373,622 |
| Other non-current assets | V.20 | 9,491,581,559 | ? | 7,893,002,053 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 235,963,562,310 | ? | 204,336,209,209 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 340,412,203,308 | ? | 304,028,491,385 |
| ? |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | V.21 | 6,366,717,121 | ? | 5,449,954,885 |
| Bills payable | V.22 | 2,028,917,980 | ? | 591,109,272 |
| Accounts payable | V.23 | 21,183,567,553 | ? | 22,213,956,616 |
| Advance payments received | V.24 | 1,260,732,785 | ? | 1,218,934,743 |
| Employee benefits payable | V.25 | 2,373,745,454 | ? | 2,224,931,171 |
| Taxes payable | V.26 | 730,996,129 | ? | 970,108,298 |
| Other payables | V.27 | 24,570,589,610 | ? | 22,956,979,828 |
| Non-current liabilities due within one year | V.28 | 18,849,281,019 | ? | 5,597,563,204 |
| Other current liabilities | V.29 | 1,013,738,515 | ? | 1,004,557,061 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 78,378,286,166 | ? | 62,228,095,078 |
| ? | ? | ? | ? | ? |
| Non-current liabilities: | ? | ? | ? | ? |
| Long-term loans | V.30 | 107,730,595,615 | ? | 94,780,077,864 |
| Debentures payable | V.31 | 387,878,384 | ? | 10,288,666,233 |
| Long-term payables | V.32 | 984,520,824 | ? | 1,416,092,239 |
| Provisions | V.33 | 16,457,010 | ? | 16,457,010 |
| Deferred income | V.34 | 2,204,400,566 | ? | 2,187,558,533 |
| Deferred tax liabilities | V.19 | 1,451,825,357 | ? | 1,419,373,545 |
| Other non-current liabilities | V.35 | 8,200,542,412 | ? | 11,334,873,322 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 120,976,220,168 | ? | 121,443,098,746 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 199,354,506,334 | ? | 183,671,193,824 |
| ? | ||||
| ? | ? | ? | ? | ? |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.36 | 34,798,398,763 | ? | 34,798,398,763 |
| Other equity instruments | V.37 | 8,013,156,853 | ? | - |
| Capital reserve | V.38 | 38,353,242,364 | ? | 38,213,100,596 |
| Other comprehensive income | V.39 | (4,566,639) | ? | (125,258,252) |
| Surplus reserve | V.40 | 1,516,139,709 | ? | 1,152,626,310 |
| Retained earnings | V.41 | 12,381,758,005 | ? | 11,817,881,286 |
| ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | ? | 95,058,129,055 | ? | 85,856,748,703 |
| ? | ? | ? | ? | ? |
| Non-controlling interests | ? | 45,999,567,919 | ? | 34,500,548,858 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 141,057,696,974 | ? | 120,357,297,561 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 340,412,203,308 | ? | 304,028,491,385 |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2019(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets: | ? | ? | ? | ? |
| Cash at bank and on hand | XIV.1 | 3,680,770,048 | ? | 3,829,814,050 |
| Bills receivable | ? | 84,230,531 | ? | 1,500,000 |
| Accounts receivable | XIV.2 | 646,533,115 | ? | 36,952,623 |
| Prepayments | ? | 77,682,682 | ? | 25,020,734 |
| Other receivables | XIV.3 | 4,827,398,094 | ? | 2,015,828,460 |
| Inventories | ? | 13,935,401 | ? | 9,289,141 |
| Non-current assets due within one year | ? | - | ? | 450,000,000 |
| Other current assets | XIV.4 | 109,497,897 | ? | 47,805,096 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 9,440,047,768 | ? | 6,416,210,104 |
| ? | ? | ? | ? | ? |
| Non-current assets: | ? | ? | ? | ? |
| Available-for-sale financial assets | ? | - | ? | 128,297,254 |
| Long-term equity investments | XIV.5 | 159,389,864,760 | ? | 143,499,733,485 |
| Investments in other equity instruments | ? | 79,405,724 | ? | - |
| Investment properties | ? | 280,525,802 | ? | 290,253,475 |
| Fixed assets | ? | 949,104,308 | ? | 969,371,352 |
| Construction in progress | ? | 358,933,667 | ? | 251,314,313 |
| Intangible assets | XIV.6 | 1,493,632,264 | ? | 514,186,496 |
| Long?term deferred expenses | ? | 109,216,398 | ? | 99,701,797 |
| Deferred tax assets | XIV.7 | 360,268,466 | ? | 290,794,548 |
| Other non-current assets | ? | 162,516,190 | ? | 284,243,667 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 163,183,467,579 | ? | 146,327,896,387 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 172,623,515,347 | ? | 152,744,106,491 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities: | ? | ? | ? | ? |
| Short-term loans | ? | 1,220,000,000 | ? | 1,000,000,000 |
| Accounts payable | ? | 27,919,341 | ? | 35,322,286 |
| Advance payments received | XIV.8 | 2,117,568,995 | ? | 1,577,035,515 |
| Employee benefits payable | XIV.9 | 252,206,075 | ? | 201,139,261 |
| Taxes payable | ? | 107,287,957 | ? | 250,558,556 |
| Other payables | XIV.10 | 5,260,470,974 | ? | 8,209,736,090 |
| Non-current liabilities due within one year | ? | 5,490,440,787 | ? | 2,590,000,000 |
| Other current liabilities | ? | 1,423,133 | ? | - |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 14,477,317,262 | ? | 13,863,791,708 |
| ? | ? | ? | ? | ? |
| Non-current liabilities: | ? | ? | ? | ? |
| Long-term loans | XIV.11 | 33,310,701,574 | ? | 26,520,000,000 |
| Debentures payable | ? | - | ? | 9,976,533,425 |
| Deferred income | XIV.12 | 4,627,393,256 | ? | 5,523,949,841 |
| Other non-current liabilities | ? | 33,297,240,830 | ? | 20,954,104,125 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 71,235,335,660 | ? | 62,974,587,391 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 85,712,652,922 | ? | 76,838,379,099 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity: | ? | ? | ? | ? |
| Share capital | V.36 | 34,798,398,763 | ? | 34,798,398,763 |
| Other equity instruments | V.37 | 8,013,156,853 | ? | - |
| Capital reserve | XIV.13 | 37,608,039,685 | ? | 37,590,966,191 |
| Other comprehensive income | XIV.14 | 193,638,576 | ? | (28,507,585) |
| Surplus reserve | V.40 | 1,516,139,709 | ? | 1,152,626,310 |
| Retained earnings | XIV.15 | 4,781,488,839 | ? | 2,392,243,713 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 86,910,862,425 | ? | 75,905,727,392 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 172,623,515,347 | ? | 152,744,106,491 |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2019
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| I. Operating income | V.42 | 116,059,590,164 | ? | 97,108,864,935 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | V.42 | 98,446,269,296 | ? | 77,306,224,288 |
| Taxes and surcharges | V.43 | 861,100,605 | ? | 778,606,126 |
| Selling and distribution expenses | V.44 | 2,917,865,380 | ? | 2,891,056,969 |
| General and administrative expenses | V.45 | 5,214,948,027 | ? | 4,959,184,197 |
| Research and development costs | V.46 | 6,699,973,240 | ? | 5,039,927,435 |
| Finance expenses | V.47 | 1,994,150,258 | ? | 3,196,695,890 |
| Including: Interest expense | ? | 2,525,136,209 | ? | 3,265,732,314 |
| Interest income | ? | 840,190,118 | ? | 748,004,557 |
| Add: Other income | V.48 | 2,605,658,711 | ? | 2,000,573,631 |
| Investment income | V.49 | 342,620,691 | ? | 306,887,579 |
| Including: Income / (Losses) from investment in associates and joint ventures | ? | 200,020,686 | ? | (13,925,731) |
| Gains from changes in fair value | V.50 | 137,473,077 | ? | 2,061,153 |
| Credit losses | V.51 | (28,262,627) | ? | - |
| Impairment losses | V.52 | (2,584,183,258) | ? | (1,239,588,763) |
| Gains from asset disposals | V.53 | 79,029 | ? | 1,067,273 |
| ? | ? | ? | ? | |
| III. Operating profit | ? | 398,668,981 | ? | 4,008,170,903 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | V.54 | 208,430,198 | ? | 169,429,515 |
| Less: Non-operating expenses | V.54 | 103,349,078 | ? | 55,310,251 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 503,750,101 | ? | 4,122,290,167 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | V.55 | 979,991,504 | ? | 1,242,416,094 |
| ? | ? | ? | ? | ? |
| V. Net (loss) / profit for the year | ? | (476,241,403) | ? | 2,879,874,073 |
| ? | ? | ? | ? | ? |
| Net profit attributable to shareholders of the Company | ? | 1,918,643,871 | ? | 3,435,127,975 |
| Non-controlling interests | ? | (2,394,885,274) | ? | (555,253,902) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | V.39 | 228,445,653 | ? | (249,814,869) |
| (1) Other comprehensive income (net of tax) attributable to shareholders of the Company | ? | 236,859,881 | ? | (275,861,185) |
| 1 Items that will not be reclassified to profit or loss: | ? | |||
| a. Other comprehensive income recognised under equity method | 366,930,596 | - | ||
| b. Changes in fair value of investments in other equity instruments | ? | (36,688,762) | ? | - |
| 2 Items that may be reclassified to profit or loss | ? | |||
| a. Share of other comprehensive income of the equity-accounted investee that may be reclassified to profit or loss | ? | - | ? | (202,998,615) |
| b. Gains or losses arising from changes in fair value of available for-sale financial assets | ? | - | ? | (136,009,652) |
| c. Translation differences arising from translation of foreign currency financial statements | ? | (93,381,953) | ? | 63,147,082 |
| (2) Other comprehensive income (net of tax) attributable to non- controlling interests | ? | (8,414,228) | ? | 26,046,316 |
| ? |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | (247,795,750) | ? | 2,630,059,204 |
| ? | ? | ? | ? | ? |
| Total comprehensive income attributable to shareholders of the Company | ? | 2,155,503,752 | ? | 3,159,266,790 |
| Total comprehensive income attributable to non-controlling interests | ? | (2,403,299,502) | ? | (529,207,586) |
| ? | ? | ? | ? | ? |
| VIII. Earnings per share | ? | ? | ? | ? |
| (1) Basic earnings per share | V.56 | 0.05 | ? | 0.10 |
| (2) Diluted earnings per share | V.56 | 0.05 | ? | 0.10 |
| ? | ? | ? | ? | ? |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2019(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| I. Operating income | XIV.16 | 4,785,387,719 | ? | 4,048,349,688 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | ? | 29,852,957 | ? | 51,274,428 |
| Taxes and surcharges | XIV.17 | 41,488,521 | ? | 44,129,874 |
| Selling and distribution expenses | ? | - | ? | 561,601 |
| General and administrative expenses | ? | 741,464,420 | ? | 744,597,442 |
| Research and development costs | XIV.18 | 2,184,751,287 | ? | 1,247,889,953 |
| Finance expenses | XIV.19 | 903,880,632 | ? | 1,014,420,709 |
| Including: Interest expense | ? | 934,776,554 | ? | 1,055,792,484 |
| Interest income | ? | 41,156,445 | ? | 44,583,524 |
| Add: Other income | XIV.20 | 945,400,212 | ? | 995,284,363 |
| Investment income | XIV.21 | 2,185,769,102 | ? | 928,309,899 |
| Including: Income/(Losses) from investment in associates and joint ventures | ? | 244,595,829 | ? | (12,001,705) |
| Credit losses | XIV.22 | (62,558,750) | ? | - |
| Impairment losses | ? | (32,000,000) | ? | - |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 3,920,560,466 | ? | 2,869,069,943 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | XIV.23 | 4,120,515 | ? | 4,336,405 |
| Less: Non-operating expenses | XIV.23 | 8,305,483 | ? | 8,668,410 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 3,916,375,498 | ? | 2,864,737,938 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | XIV.24 | 230,811,042 | ? | 234,879,588 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 3,685,564,456 | ? | 2,629,858,350 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | XIV.14 | 389,401,782 | ? | (220,605,074) |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | 366,930,596 | - | ||
| 2. Changes in fair value of investments in other equity instruments | ? | 22,471,186 | ? | - |
| (2) Items that may be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | - | ? | (202,778,999) |
| 2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ? | - | ? | (17,826,075) |
| ? | ||||
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 4,074,966,238 | ? | 2,409,253,276 |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2019(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 131,939,100,428 | ? | 105,589,411,120 |
| Refund of taxes | ? | 9,211,921,444 | ? | 6,513,812,910 |
| Government grants | ? | 4,220,459,216 | ? | 2,195,202,400 |
| Proceeds from other operating activities | ? | 151,842,353 | ? | 770,921,360 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 145,523,323,441 | ? | 115,069,347,790 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (103,103,588,751) | ? | (75,700,548,251) |
| Payment to and for employees | ? | (11,274,232,340) | ? | (9,162,421,738) |
| Payment of various taxes | ? | (2,151,136,164) | ? | (1,619,256,288) |
| Payment for other operating activities | ? | (2,911,286,992) | ? | (2,903,074,317) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (119,440,244,247) | ? | (89,385,300,594) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash inflows from operating activities | V.57(1) | 26,083,079,194 | ? | 25,684,047,196 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 33,515,656,910 | ? | 59,211,537,932 |
| Investment returns received | ? | 93,386,997 | ? | 356,050,182 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ? | 19,822,394 | ? | 98,644,621 |
| Net amount received from subsidiaries | V.57(2) | 33,640,033 | ? | 6,801,508,810 |
| Proceeds from other investing activities | ? | 2,287,178,748 | ? | 1,808,988,695 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 35,949,685,082 | ? | 68,276,730,240 |
| ? | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (49,415,897,698) | ? | (54,520,544,965) |
| Payment for acquisition of investments | ? | (33,949,914,820) | ? | (60,819,720,633) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (83,365,812,518) | ? | (115,340,265,598) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash outflows from investing activities | ? | (47,416,127,436) | ? | (47,063,535,358) |
| ? | ? | ? | ? | ? |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | 14,066,343,889 | ? | 4,294,161,400 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | ? | 14,066,343,889 | ? | 4,294,161,400 |
| Proceeds from issuance of debentures | ? | 8,075,977,975 | ? | - |
| Proceeds from borrowings | ? | 53,575,950,243 | ? | 38,368,279,407 |
| Net amount of monetary movements for pledging loans | ? | - | ? | 176,637,743 |
| Proceeds from other financing activities | ? | 6,000,000 | ? | 155,194,921 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 75,724,272,107 | ? | 42,994,273,471 |
| Repayments of borrowings | ? | (36,944,543,462) | ? | (21,274,318,530) |
| Payment for dividends or interest | ? | (6,746,163,635) | ? | (5,806,323,938) |
| Including: Dividends paid to non-controlling shareholders of subsidiaries | ? | (10,911,242) | ? | (4,319,286) |
| Net amount of monetary movements for pledging loans | ? | (287,261,600) | ? | - |
| Payment for other financing activities | ? | (3,967,658,080) | ? | (347,060,613) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (47,945,626,777) | ? | (27,427,703,081) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | |
| Net cash inflow from financing activities | ? | 27,778,645,330 | ? | 15,566,570,390 |
| ? | ? | ? | ? | ? |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 474,027,965 | ? | 1,250,326,709 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase / (decrease) in cash and cash equivalents | V.57(1) | 6,919,625,053 | ? | (4,562,591,063) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 43,350,696,520 | ? | 47,913,287,583 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | V.57(3) | 50,270,321,573 | ? | 43,350,696,520 |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2019(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 6,487,868,213 | ? | 4,053,318,155 |
| Refund of taxes | ? | - | ? | 23,508,537 |
| Proceeds from other operating activities | ? | 53,961,183 | ? | 1,705,344,020 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 6,541,829,396 | ? | 5,782,170,712 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (1,576,266,273) | ? | (976,219,250) |
| Payment to and for employees | ? | (942,542,615) | ? | (957,780,812) |
| Payment of various taxes | ? | (528,982,127) | ? | (284,079,728) |
| Payment for other operating activities | ? | (1,042,770,921) | ? | (102,575,476) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (4,090,561,936) | ? | (2,320,655,266) |
| ? | ? | |||
| ? | ? | |||
| Net cash inflows from operating activities | XIV.25(1) | 2,451,267,460 | ? | 3,461,515,446 |
| ? | ? | ? | ? | ? |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 191,270,404 | ? | 506,145,151 |
| Investment returns received | ? | 1,006,558,146 | ? | 971,599,836 |
| Net proceeds from disposal of fixed assets | ? | 2,791,799 | ? | 6,384,696 |
| Proceeds from other investing activities | ? | 3,334,425,767 | ? | 3,333,764,245 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 4,535,046,116 | ? | 4,817,893,928 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| II. Cash flows from investing activities: (continued): | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (1,158,649,934) | ? | (295,214,844) |
| Payment for acquisition of investments | ? | (15,438,773,685) | ? | (22,553,409,200) |
| Payment for other investing activities | ? | (5,866,921,400) | ? | (257,000,000) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (22,464,345,019) | ? | (23,105,624,044) |
| ? | ? | ? | ||
| ? | ? | ? | ? | ? |
| Net cash outflows from investing activities | ? | (17,929,298,903) | ? | (18,287,730,116) |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from issuance of debentures | ? | 8,000,000,000 | ? | - |
| Proceeds from borrowings | ? | 19,341,142,361 | ? | 11,367,000,000 |
| Proceeds from other financing activities | ? | 14,869,430,596 | ? | 19,698,642,218 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 42,210,572,957 | ? | 31,065,642,218 |
| ? | ? | ? | ? | ? |
| Repayments of borrowings | ? | (17,830,000,000) | ? | (4,597,640,000) |
| Payment for dividends and interest | ? | (2,289,037,712) | ? | (2,795,130,756) |
| Payment for other financing activities | ? | (6,801,944,858) | ? | (8,150,000,000) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (26,920,982,570) | ? | (15,542,770,756) |
| ? | ? | ? | ||
| ? | ? | ? | ? | ? |
| Net cash inflows from financing activities | ? | 15,289,590,387 | ? | 15,522,871,462 |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2019 | ? | 2018 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 39,397,054 | ? | 142,355,757 |
| ? | ||||
| ? | ? | ? | ? | ? |
| V. Net (decrease)/increase in cash and cash equivalents | XIV.25(1) | (149,044,002) | ? | 839,012,549 |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 3,829,814,050 | ? | 2,990,801,501 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | XIV.25(2) | 3,680,770,048 | ? | 3,829,814,050 |
These financial statements were approved by the Board of Directors of the Company on 24April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2019(Expressed in Renminbi Yuan)
| ? | Equity attributable to shareholders of the Company | ? | ? | ? | ? | |||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total shareholders’ equity |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | - | ? | 38,213,100,596 | ? | (125,258,252) | ? | 1,152,626,310 | ? | 11,817,881,286 | ? | 85,856,748,703 | ? | 34,500,548,858 | ? | 120,357,297,561 |
| Add: Changes in accounting policies | III.33 | - | ? | - | ? | - | ? | (166,598,716) | ? | - | ? | 159,238,247 | ? | (7,360,469) | ? | (1,122,360) | ? | (8,482,829) |
| Adjusted balance at the beginning of the year | ? | 34,798,398,763 | ? | - | ? | 38,213,100,596 | ? | (291,856,968) | ? | 1,152,626,310 | ? | 11,977,119,533 | ? | 85,849,388,234 | ? | 34,499,426,498 | ? | 120,348,814,732 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Total comprehensive income | ? | - | ? | - | ? | - | ? | 236,859,881 | ? | - | ? | 1,918,643,871 | ? | 2,155,503,752 | ? | (2,403,299,502) | ? | (247,795,750) |
| (2) Shareholders’ contributions | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| 1. Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 14,066,343,889 | ? | 14,066,343,889 |
| 2. Non-controlling shareholders’ decrease of capital | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (40,233,450) | ? | (40,233,450) |
| 3. Contribution by holders of other equity instruments | V.37 | - | ? | 7,957,047,264 | ? | - | ? | - | ? | - | ? | - | ? | 7,957,047,264 | ? | - | ? | 7,957,047,264 |
| 4. Business combinations involving entities not under common control | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 11,310,000 | ? | 11,310,000 |
| 5. Change in shareholding ratio of subsidiaries | V.38 | - | ? | - | ? | 123,068,274 | ? | - | ? | - | ? | - | ? | 123,068,274 | ? | (123,068,274) | ? | - |
| (3) Appropriation of profits | V.41 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Appropriation for surplus reserve | ? | - | ? | - | ? | - | ? | - | ? | 368,556,446 | ? | (368,556,446) | ? | - | ? | - | ? | - |
| 2. Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,043,951,963) | ? | (1,043,951,963) | ? | (10,911,242) | ? | (1,054,863,205) |
| 3. Accrued interest on holders of other equity instruments | - | 56,109,589 | - | - | - | (56,109,589) | - | - | - | |||||||||
| (4) Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1.Transfer of other comprehensive income to retained earnings | V.12 | - | ? | - | ? | - | ? | 50,430,448 | ? | (5,043,047) | ? | (45,387,401) | ? | - | ? | - | ? | - |
| 2.Others | V.38 | - | ? | - | ? | 17,073,494 | ? | - | ? | - | ? | - | ? | 17,073,494 | ? | - | ? | 17,073,494 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 38,353,242,364 | ? | (4,566,639) | ? | 1,516,139,709 | ? | 12,381,758,005 | ? | 95,058,129,055 | ? | 45,999,567,919 | ? | 141,057,696,974 |
These financial statements were approved by the Board of Directors of the Company on 24 April 2020.
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2018(Expressed in Renminbi Yuan)
| ? | ? | Equity attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||
| ? | Share capital | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total shareholders’ equity | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | 38,585,515,122 | ? | 150,602,933 | ? | 889,640,475 | ? | 10,385,659,084 | ? | 84,809,816,377 | ? | 19,474,446,456 | ? | 104,284,262,833 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Total comprehensive income | ? | - | ? | - | ? | (275,861,185) | ? | - | ? | 3,435,127,975 | ? | 3,159,266,790 | ? | (529,207,586) | ? | 2,630,059,204 |
| (2) Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 4,494,161,400 | ? | 4,494,161,400 |
| 2. Business combinations involving entities not under common control | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 11,541,782,339 | ? | 11,541,782,339 |
| 3. Change in shareholding ratio of subsidiaries | - | ? | 3,754,159 | ? | - | ? | - | ? | - | ? | 3,754,159 | ? | (3,402,793) | ? | 351,366 | |
| (3) Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| 1. Appropriation for surplus reserve | ? | - | ? | - | ? | - | ? | 262,985,835 | ? | (262,985,835) | ? | - | ? | - | ? | - |
| 2. Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | (1,739,919,938) | ? | (1,739,919,938) | ? | (18,316,894) | ? | (1,758,236,832) |
| (4) Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Equity changes arising from acquisition of non-controlling interests | - | ? | (378,593,283) | ? | - | ? | - | ? | - | ? | (378,593,283) | ? | (458,914,064) | ? | (837,507,347) | |
| 2. Others | - | ? | 2,424,598 | ? | - | ? | - | ? | - | ? | 2,424,598 | ? | - | ? | 2,424,598 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. BalanceC at the end of the year | ? | 34,798,398,763 | ? | 38,213,100,596 | ? | (125,258,252) | ? | 1,152,626,310 | ? | 11,817,881,286 | ? | 85,856,748,703 | ? | 34,500,548,858 | ? | 120,357,297,561 |
These financial statements were approved by the Board of Directors of the Company on 24 April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2019
(Expressed in Renminbi Yuan)
| ? | ?Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total shareholders’ equity |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | -? | ? | 37,590,966,191 | ? | (28,507,585) | ? | 1,152,626,310 | ? | 2,392,243,713 | ? | 75,905,727,392 |
| Add: Changes in accounting policies | III.33 | - | ? | - | ? | - | ? | (217,686,069) | ? | - | ? | 217,686,069 | ? | - |
| Adjusted balance at the beginning of the year | ? | 34,798,398,763 | ? | - | ? | 37,590,966,191 | ? | (246,193,654) | ? | 1,152,626,310 | ? | 2,609,929,782 | ? | 75,905,727,392 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Total comprehensive income | ? | - | ? | - | ? | - | ? | 389,401,782 | ? | - | ? | 3,685,564,456 | ? | 4,074,966,238 |
| (2) Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Contribution by holders of other equity instruments | ? | - | ? | 7,957,047,264 | ? | - | ? | - | ? | - | ? | - | ? | 7,957,047,264 |
| (3) Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Appropriation for surplus reserve | ? | - | ? | - | ? | - | ? | - | ? | 368,556,446 | ? | (368,556,446) | ? | - |
| 2. Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,043,951,963) | ? | (1,043,951,963) |
| 3. Accrued interest on holders of other equity instruments | - | 56,109,589 | - | - | - | (56,109,589) | - | |||||||
| (4) Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Transfer of other comprehensive income to retained earnings | ? | - | ? | - | ? | - | ? | 50,430,448 | ? | (5,043,047) | ? | (45,387,401) | ? | - |
| 2. Others | ? | - | ? | - | ? | 17,073,494 | ? | - | ? | - | ? | - | ? | 17,073,494 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 37,608,039,685 | ? | 193,638,576 | ? | 1,516,139,709 | ? | 4,781,488,839 | ? | 86,910,862,425 |
These financial statements were approved by the Board of Directors of the Company on 24 April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2018
(Expressed in Renminbi Yuan)
| ? | ? | Share capital | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total shareholders’ equity |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | 37,588,541,593 | ? | 192,097,489 | ? | 889,640,475 | ? | 1,765,291,136 | ? | 75,233,969,456 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Total comprehensive income | ? | - | ? | - | ? | (220,605,074) | ? | - | ? | 2,629,858,350 | ? | 2,409,253,276 |
| (2) Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Appropriation for surplus reserve | ? | - | ? | - | ? | - | ? | 262,985,835 | ? | (262,985,835) | ? | - |
| 2. Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | (1,739,919,938) | ? | (1,739,919,938) |
| (3) Others | ? | - | ? | 2,424,598 | ? | - | ? | - | ? | - | ? | 2,424,598 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 37,590,966,191 | ? | (28,507,585) | ? | 1,152,626,310 | ? | 2,392,243,713 | ? | 75,905,727,392 |
These financial statements were approved by the Board of Directors of the Company on 24 April 2020.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiao Ping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 24 to 164 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. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as “the Group”) comprise three main businesssegments: Display device and sensor device business, Smart system business andHealthcare service business. For information about the subsidiaries of the Company, refer toNote VII. During the reporting period, the information about increases and decreases in theGroup’s subsidiaries is disclosed in Note VI.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
The Group has adopted the revised “Accounting Standard for Business Enterprises No. 22 –Financial Instruments: Recognition and Measurement” and related new financial instrumentsstandards, issued by the Ministry of Finance (“MOF”) of the People’s Republic of China in2017, since 1 January 2019 (see Note III.33).
Certain overseas subsidiaries of the Group have adopted the revised “Accounting Standardfor Business Enterprises No. 14 – Revenue” and “Accounting Standard for BusinessEnterprises No. 21 – Leases”, issued by the Ministry of Finance (“MOF”) of the People’sRepublic of China in 2017 and 2018 respectively. The adoption of the above standards donot have a material impact on the Group ’s consolidated financial position and consolidatedfinancial performance.
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 or referred to as China AccountingStandards (“CAS”). These financial statements present truly and completely theconsolidated financial position and financial position of the Company as at 31 December2019, and the consolidated financial performance and financial performance and theconsolidated cash flows and cash flows of the Company for the year 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 2014.
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until 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.8.
5 Accounting treatments for business combinations involving entities under common control
and not under common control
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination 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 carrying amount of the net assets acquired and the considerationpaid for the combination (or the total par value of shares issued) is adjusted against sharepremium in the capital reserve, with any excess adjusted against retained earnings. Anycosts directly attributable to the combination are recognized in profit or loss when incurred.The combination date is the date on which one combining entity obtains control of othercombining 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. Where (1) the aggregate ofthe acquisition-date fair value of assets transferred (including the acquirer’s previously heldequity interest in the acquiree), liabilities incurred or assumed, and equity securities issuedby the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest inthe acquisition-date fair value of the acquiree’s identifiable net assets, the difference isrecognized as goodwill (see Note III.17). If (1) is less than (2), the difference is recognized inprofit or loss for the current period. Acquisition-related costs are expensed when incurred.The acquiree’s identifiable asset, liabilities and contingent liabilities, if the recognition criteriaare met, are recognized by the Group at their acquisition-date fair value. The acquisition dateis the date on which the acquirer obtains control of the acquiree.
For a business combination involving entities not under common control and achieved instages, the Group remeasures its previously-held equity interest in the acquiree to itsacquisition-date fair value and recognises any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. In addition, any amount recognised in other comprehensive income and otherchanges in the owners’ equity under equity accounting in prior reporting periods relating tothe previously-held equity interest that may be reclassified to profit or loss are transferred toinvestment income at the date of acquisition (see Note III.11(2)(b)); Any previously-heldequity interest that is designated as equity investment at fair value through othercomprehensive income, the other comprehensive income recognised in prior reportingperiods is transferred to retained earnings and surplus reserve at the date of acquisition.
6 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 following: power over the investee; exposure, or rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered. The financial position, financialperformance and cash flows of subsidiaries are included in the consolidated financialstatements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the total comprehensive income lineitem.
When the amount of loss for the current period attributable to the non-controllingshareholders of a subsidiary exceeds the non-controlling shareholders’ share of the openingowners’ equity of the subsidiary, the excess is still allocated against the non-controllinginterests.
When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company makes necessary adjustments to the financial statements of thesubsidiary based on the Company’s own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, 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 thefinancial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities under common control, the financial statements of thesubsidiary are included in the consolidated financial statements based on the carryingamounts of the assets and liabilities of the subsidiary in the financial statements of theultimate controlling party as if the combination had occurred at the date that the ultimate
controlling party first obtained control. The opening balances and the comparative figures ofthe consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities not under common control, the identifiable assets and liabilitiesof the acquired subsidiaries are included in the scope of consolidation from the date thatcontrol commences, based on the fair value 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 interests is re-measured at its fair value at the date when control is lost, any resulting gains or losses arealso recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundledtransaction:
- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment in subsidiarieswhere control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in the loss of control in the subsidiary, these multiple transactions are accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss ofcontrol shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change incontrol, the difference between the proportion interests of the subsidiary’s net assets beingacquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjustedto retained earnings.
7、 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw ondemand, 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.
8、 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.15). 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 atthe spot exchange rates at the transaction dates. The resulting translation differences arerecognised in other comprehensive income. The translation differences accumulated inshareholders’ equity with respect to a foreign operation are transferred to profit or loss in theperiod when the foreign operation is disposed.
9、 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.11),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 (unless it is a trade receivable without a significant financing component)and financial liabilities is measured initially at fair value. For financial assets and financialliabilities at fair value through profit or loss, any related directly attributable transaction costsare charged to profit or loss; for other categories of financial assets and financial liabilities,any related directly attributable transaction costs are included in their initial costs. A tradereceivable without a significant financing component is initially measured at the transactionprice according to Note III.22.
(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 in whicha financial asset is managed and its contractual cash flow characteristics. On initialrecognition, a financial asset is classified as measured at amortised cost, at fair valuethrough other comprehensive income (“FVOCI”), or at fair value through profit or loss(“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 within 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 debt investment is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:
- it is held within 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 solelypayments 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.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. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.
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 is not part of a hedging relationship shall be recognised in profit or losswhen the financial asset is derecognised, through the amortisation process or inorder to recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, 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 amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liability) or 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; and- The Group intends either to settle on a net basis, or to realise the financial asset andsettle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
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 therisks and rewards of ownership of the financial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset, it does notretain 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 financialasset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognised directly in other comprehensive income for the part 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;- Debt investments at FVOCI
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 theentity 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 trade receivables are always measured at an amount equal to lifetimeECL. ECLs on these financial assets are estimated using a provision matrix based on theGroup’s historical credit loss experience, adjusted for factors that are specific to the debtorsand an assessment of both the current and forecast general economic conditions at thebalance sheet date.
Except for trade receivables, the Group measures loss allowance at an amount equal to 12-month ECL for the following financial instruments, and at an amount equal to lifetime ECL forall other financial instruments.
- If the financial instrument is determined to have low credit risk at the balance sheet date;- If the credit risk on a financial instrument has not increased significantly since initialrecognition.
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 in thelonger 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 financial
instrument 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 and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually 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; and- 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.
Depending on the nature of the financial instruments, the assessment of a significantincrease in credit risk is performed on either an individual basis or a collective basis. Whenthe assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it ismore 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 difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of financialdifficulties.
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. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognised in other comprehensive income.
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 is generally the case 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 instrument
The consideration received from the issuance of equity instruments net of transaction costsis recognised in shareholders’ equity. Consideration and transaction costs paid by theCompany for repurchasing self-issued equity instruments are deducted from shareholders’equity.
When the Company repurchases its own shares, those shares are treated as treasuryshares. All expenditure relating to the repurchase is recorded in the cost of the treasuryshares, with the transaction recording in the share register. Treasury shares are excludedfrom profit distributions and are presented as a deduction under shareholders’ equity in thebalance 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, the Group classifies the perpetual bonds issued or their components asfinancial assets, financial liabilities or equity instruments based on their contractual terms andtheir economic substance after considering the definition of financial assets, financialliabilities and equity instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised inequity based on the actual amount received. Any distribution of dividends or interests duringthe instruments’ duration is treated as profit appropriation. When the perpetual bonds areredeemed according to the contractual terms, the redemption price is charged to equity.
10、 Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable materials.Reusable materials include low-value consumables, packaging materials and othermaterials, which can be used repeatedly but do not meet the definition of fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase,costs of conversion and other expenditure incurred in bringing the inventories to their presentlocation and condition. In addition to the purchase cost of raw materials, work in progressand finished goods include direct labour costs and an appropriate allocation of productionoverheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are charged toprofit or loss upon receipt. The amortisation charge is included in the cost of the relatedassets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete
inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue.
Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes. The net realisable value of materials held for use in the production ismeasured based on the net realisable value of the finished goods in which they will beincorporated. The net realisable value of the inventory held to satisfy sales or servicecontracts is measured based on the contract price, to the extent of the quantities specified insales contracts, and the excess portion of inventories is measured based on general sellingprices.
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.
(4) Inventory count system
The Group maintains a perpetual inventory system.
11 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 adjusted to retainedearnings. For a long-term equity investment in a subsidiary acquired through abusiness combination achieved in stages which do not form a bundled transactionand involving entities under common control, the Company determines the initialcost of the investment in accordance with the above policies. The differencebetween this initial cost and the sum of the carrying amount of previously-heldinvestment and the consideration paid for the shares newly acquired is adjusted tocapital premium in the capital reserve, with any excess adjusted to retainedearnings.
- 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. For along-term equity investment obtained through a business combination not involvingentities under common control and achieved through multiple transactions in stageswhich do not form a bundled transaction, the initial cost comprises the carryingamount of the previously-held equity investment in the acquiree immediately beforethe acquisition date, and the additional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business 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 measurementunless the investment is classified as held for sale (see Note III.27). Except for cashdividends or profit distributions declared but not yet distributed that have been includedin the price or consideration paid in obtaining the investments, the Companyrecognises its share of the cash dividends or profit distributions declared by theinvestee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost lessaccumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.19.
In the Group’s consolidated financial statements, investments in subsidiaries areaccounted for in accordance with the policies described in Note III.6.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.11(3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see NoteIII.11(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.27).
The accounting treatments under the equity method adopted by the Group are asfollows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognised at cost. Where the initial investment cost is lessthan the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s shareof the fair value of the investee’s identifiable net assets, and the difference isrecognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of theinvestee’s profit or loss and other comprehensive income as investment income orlosses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced bythe amount attributable to the Group. Changes in the Group’s share of theinvestee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensiveincome and other changes in owners’ equity, the Group recognises investmentincome and other comprehensive income after making appropriate adjustments toalign the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in theassociates or joint ventures. Unrealised losses resulting from transactions betweenthe Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee after
the carrying amount of the long-term equity investment and any long-term interestthat in substance forms part of the Group’s net investment in the joint venture orassociate is reduced to zero, except to the extent that the Group has an obligation toassume additional losses. If the joint venture or associate subsequently reports netprofits, the Group resumes recognising its share of those profits only after its shareof the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to NoteIII.19.
(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 relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisionsof an investee but does not have control or joint control over those policies.
12 Investment properties
Investment properties are properties held either to earn rental income or for capitalappreciation or for 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.27). For the impairment of the investment properties, refer to Note III.19.
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 | 25 – 40 years | ? | 3.0% - 10.0% | ? | 2.3% - 3.9% |
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goodsfor use in supply of services for rental or for administrative purposes with useful lives overone accounting year.
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.14.
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.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.
(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.27).
The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as follows:
| Category | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Plant and buildings | 10 - 50年 | ? | 3% - 10% | ? | 1.8% - 9.7% |
| Equipment | 2 - 25年 | ? | 0 - 10% | ? | 3.6% - 50% |
| Others | 2 - 10年 | ? | 0 - 10% | ? | 9.0% - 50% |
Useful lives, estimated residual values and depreciation methods are reviewed at least ateach year-end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) For the recognition, measurement and depreciation of fixed assets acquired under finance
leases, refer to Note III.26(3).
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset aredetermined as the difference between the net disposal proceeds and the carrying amount ofthe item, and are recognised in profit or loss on the date of retirement or disposal.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.15), 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 fixedasset when it is ready for its intended use. No depreciation is provided against constructionin progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.19).
15 Borrowing costs
Borrowing costs incurred 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 qualifyingasset, 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 being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition
and 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.
The capitalisation period is the period from the date of commencement of capitalisation ofborrowing costs to the date of cessation of capitalisation, excluding any period over whichcapitalisation is suspended. Capitalisation of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities of acquisitionand construction that are necessary to prepare the asset for its intended use are in progress,and ceases when the assets become ready for their intended use. When the parts of thequalifying assets acquired or constructed that are eligible for capitalisation are completedseparately, and each part is available for use in other parts of the construction process or canbe sold externally, and for the purpose of making the parts of the assets ready for use ornecessary for the sales status, the acquisition or construction activities have beensubstantially completed, the Group ceases the capitalization of the borrowing costs related tothe parts of the assets. Capitalisation of borrowing costs is suspended when the acquisitionand construction activities are interrupted abnormally for a period of more than three months.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation(where the estimated useful life is finite) and impairment losses (see Note III.19). For anintangible asset with finite useful life, its cost estimated less residual value and accumulatedimpairment losses is amortised on the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale (see Note III.27).
The respective amortisation periods for intangible assets are as follows:
| Item | Amortisation period (years) |
| ? | ? |
| Land use rights | 20 - 50 years |
| Patent and technology rights | 5 - 20 years |
| Computer software | 3 - 10 years |
| Others | 5 - 20 years |
An intangible asset is regarded as having an indefinite useful life and is not amortised 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.
Expenditure on an internal research and development project is classified into expenditureincurred during the research phase and expenditure incurred during the development phase.
Expenditure during the research phase is expensed when incurred. Expenditure during thedevelopment phase is capitalised if development costs can be measured reliably, the productor process is technically and commercially feasible, and the Group intends to and hassufficient resources to complete the development. Capitalised development costs are statedin the balance sheet at cost less impairment losses (see Note III.19). Other developmentexpenditure is recognised as an expense in the period in which it is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination 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.19). On disposal of an asset group or a set of asset groups,any attributable goodwill is written off and included in the calculation of the profit or loss ondisposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a 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 |
| Cost of operating lease assets improvement | 2 - 10 years |
| Others | 2 - 10 years |
19 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- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, theGroup estimates the recoverable amounts of goodwill at each year-end, irrespective ofwhether there is any indication of impairment. Goodwill is allocated to each asset group, orset of asset groups, that is expected to benefit from the synergies of the combination for thepurpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note III.21) less costs to sell and its present value of expected future cashflows.
An asset group is composed of assets directly 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 expected future cash flows of an asset 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. Impairment losses related to an asset group or a set of asset groups areallocated first to reduce the carrying amount of any goodwill allocated to the asset group orset of asset groups, and then to reduce the carrying amount of the other assets in the assetgroup or set of asset groups on a pro rata basis. However, such allocation would not reducethe carrying amount of an asset below the highest of its fair value less costs to sell (ifmeasurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
20 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 uses valuation techniques that are appropriate inthe circumstances and for which sufficient data and other information are available tomeasure fair value. Valuation techniques mainly include the market approach, the incomeapproach and the cost approach.
21 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 according to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likelyoutcome.
- 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 amount of a provision at the balance sheet date and adjuststhe carrying amount to the current best estimate.
22 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increase in shareholders’ equity, other thanincrease relating to contributions from shareholders. Revenue is recognised in profit or losswhen it is probable that the economic benefits will flow to the Group, the revenue and costscan be measured reliably and the following conditions are met:
(1) Sale of goods
Revenue is recognised when the general conditions stated above and the followingconditions are satisfied:
- Significant risks and rewards of ownership of goods have been transferred to the buyer;
- The Group retains neither continuing managerial involvement to the degree usuallyassociated with ownership nor effective control over the goods sold.
Revenue from the sale of goods is measured at the fair value of the consideration receivedor receivable under the sales contract or agreement.
The sales contracts/orders signed between the Company and its customers (mainlyelectronic equipment manufacturers) contain various trading terms. The Company judges thetransfer timing of major risks and rewards according to the trading terms, and recognisesrevenue accordingly. Depending on the trading terms, the income is usually recognized whenthe goods are delivered and received, or when they are received by the carrier.
(2) Rendering of services
Revenue is measured at the fair value of the consideration received or receivable under thecontract or agreement.
Where the outcome of a transaction involving the rendering of services can be estimatedreliably, revenue is recognised by reference to the stage of completion based on theprogress of work performed.
Where the outcome cannot be estimated reliably, revenues are recognised to the extent ofthe costs incurred that are expected to be recoverable, and an equivalent amount is chargedto profit or loss as service cost; otherwise, the costs incurred are recognised in profit or lossand no service revenue is recognised.
(3) Revenue from construction contracts
Where the outcome of a construction contract can be estimated reliably, contract revenueand contract expenses associated with the construction contract are recognised using thepercentage of completion method.
The stage of completion of a contract is determined based on the proportion of contract costsincurred for work performed to date to the estimated total contract costs.
When the outcome of a construction contract cannot be estimated reliably:
- If the contract costs can be recovered, revenue is recognised to the extent of contractcosts incurred that can be recovered, and the contract costs are recognised as contractexpenses when incurred;
- Otherwise, the contract costs are recognised as contract expenses immediately whenincurred, and no contract revenue is recognised.
(4) Interest income
Interest income is recognised on a time proportion basis with reference to the principaloutstanding and the applicable effective interest rate.
(5) Royalties from intangible assets
Royalty income from intangible assets is determined according to the period and feecalculation method as stipulated in the relevant contracts or agreements.
23 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accured 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
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan and unemploymentinsurance plan in the social insurance system established and managed by governmentorganisations, and annuity plan established by the Group in compliance with the nationalpolicy of the corporation annuity. The Group makes contributions to basic pension insuranceplan and unemployment insurance based on the applicable benchmarks and rates stipulatedby the government. Annuity is accrued based on the gross salaries of the employees. Basicpension insurance contributions payable are recognised as a liability as the employeeprovides services, with a corresponding charge to profit or loss or included in the cost ofassets 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 the employment with employees before the employmentcontracts expire, 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 because of
an 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.
24 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets fromthe government to the Group except for capital contributions from the government in thecapacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at 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 recognizes 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 amortized; 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 offagainst the carrying amount of relevant asset when the grants are obtained; the assets shallbe depreciated or amortized based on the carrying amount after being offset and theremaining useful life of relevant assets.
For the government grants related to income which are used to compensate for related costsor losses of the Group in the future period, it shall be recognized as deferred income, andincluded in profit and loss or used to offset related costs; otherwise it shall be directlyincluded in profit and loss or used to offset related costs.
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 arecapitalized as part of the cost of the asset (see Note III. 15), the interest subsidy shall beused to offset relevant asset costs.
25 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 the deductiblelosses and tax credits carried forward to subsequent periods. Deferred tax assets arerecognised to the extent that it is probable that future taxable profits will be available againstwhich deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initialrecognition of assets or liabilities in a transaction that is not a business combination and thataffects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is notrecognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences 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 reduction is 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 assets,and
- 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.
26 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease is alease that transfers substantially all the risks and rewards incidental to ownership of a leasedasset to the lessee, irrespective of whether the legal title to the asset is eventuallytransferred. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of another relatedasset or as expenses on a straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see NoteIII.12), are depreciated in accordance with the Group’s depreciation policies described inNote III.13(2). Impairment losses are recognised in accordance with the accounting policydescribed in Note III.19. Income derived from operating leases is recognised in profit or lossusing the straight-line method over the lease term. If initial direct costs incurred in respect ofthe assets leased out are material, the costs are initially capitalised and subsequentlyamortised in profit or loss over the lease term on the same basis as the lease income.Otherwise, the costs are charged to profit or loss immediately.
(3) Assets acquired under finance leases
At the commencement of the lease term, the minimum lease payments are recorded as long-term payables. The difference between the carrying amount of the leased assets and theminimum lease payments is accounted for as unrecognised finance charges. Initial directcosts attributable to a finance lease that are incurred by the Group are added to the carryingamount of the leased asset. Depreciation and impairment losses are accounted for inaccordance with the accounting policies described in Notes III.13(2) and III.19, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at theend of the lease term, the leased asset is depreciated over its estimated useful life.Otherwise, the leased asset is depreciated over the shorter of the lease term and itsestimated useful life.
Unrecognised finance charges arising from a finance lease are recognised using an effectiveinterest method over the lease term. The amortisation is accounted for in accordance withthe principles of borrowing costs (see Note III.15).
At the balance sheet date, the long-term payables arising from finance leases, net of theunrecognised finance charges, are analysed and separately presented as long-termpayables or non-current liabilities due within one year.
27 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when thecarrying amount of a non-current asset or disposal group will be recovered through a saletransaction rather than through continuing use,.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.
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 asset or disposal group in similartransactions, the non-current asset or disposal group must be available for immediate salein their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and hasobtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.20) less costs to sell (except financial assets (see NoteIII.9) and deferred tax assets (see Note III.25)) initially and subsequently. Any excess of thecarrying amount over the fair value (see Note III.20) less costs to sell is recognised as animpairment loss in profit or loss.
28 Hedge accounting is a method which recognises in profit or loss (or other comprehensive
income) the gain or loss on the hedging instrument and the hedged item in the sameaccounting period(s) to represent the effect of risk management.
Hedged items are items that expose the Group to risks of changes in fair value or cash flowsand that are designated as being hedged and can be reliably measured. The Group’s hedgeditems include fixed-rate borrowings that expose the Group to the risk of changes in fair value,a firm commitment that is settled with a fixed amount of foreign currency and that exposesthe Group to foreign currency risk.
A hedging instrument is a designated financial instrument whose changes in fair value orcash flows are expected to offset changes in the fair value or cash flows of the hedged item.For a hedge of foreign currency risk, the foreign currency risk component of a non-derivativefinancial asset or non-derivative financial liability may also be designated as a hedginginstrument provided that it is not an investment in an equity instrument for which an entityhas elected to present changes in the fair value in other comprehensive income.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis,whether the hedging relationship meets the hedge effectiveness requirements. A hedgingrelationship is regarded as having met the hedge effectiveness requirements if all of thefollowing conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.- The effect of credit risk does not dominate the value changes that result from theeconomic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the quantityof the hedged item that the entity actually hedges and the quantity of the hedging instrumentthat the entity actually uses to hedge that quantity of the hedged item.
When a hedging relationship no longer meets the hedge effectiveness requirements due tothe hedge ratio, but the risk management objective of the designated hedging relationshipremains unchanged, the Group rebalances the hedging relationship. Rebalancing refers tothe adjustments made to the designated quantities of the hedged item or the hedginginstrument of an already existing hedging relationship for the purpose of maintaining a hedgeratio that complies with the hedge effectiveness requirements.
The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis ofwhich it qualified for hedge accounting.
- The hedging instrument expires or is sold, terminated or exercised.
- There is no longer an economic relationship between the hedged item and the hedginginstrument or the effect of credit risk starts to dominate the value changes that result fromthat economic relationship.
- The hedging relationship no longer meets other criteria for applying hedge accounting.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of thegain or loss on a hedging instrument that is determined to be an effective hedge isrecognised in other comprehensive income as a cash flow hedge reserve. The amount of thecash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):
the cumulative gain or loss on the hedging instrument from inception of the hedge;
the cumulative change in present value of the expected future cash flows on the hedged itemfrom inception of the hedge.
The change in the amount of the cash flow hedge reserve is recognised in othercomprehensive income in each period.
The portion of the gain or loss on the hedging instrument that is determined to beineffectiveness is recognised in profit or loss.
If a hedged forecast transaction subsequently results in the recognition of a non-financialasset or non-financial liability, or a hedged forecast transaction for a non-financial asset ornon-financial liability becomes a firm commitment for which fair value hedge accounting isapplied, the Group removes that amount from the cash flow hedge reserve and includes it inthe initial cost or other carrying amount of the asset or liability.
For cash flow hedges other than those covered above, that amount is reclassified from thecash flow hedge reserve to profit or loss as a reclassification adjustment in the same periodor periods during which the hedged expected future cash flows affect profit or loss.
When the Group discontinues hedge accounting for a cash flow hedge, the amount of theaccumulated cash flow hedge reserve recognised in other comprehensive income isaccounted for as follows:
If the hedged future cash flows are still expected to occur, that amount will remain in the cashflow hedge reserve, and be accounted for in accordance with the above policy.
If the hedged future cash flows are no longer expected to occur, that amount is immediatelyreclassified from the cash flow hedge reserve to profit or loss as a reclassificationadjustment.
29 Profit 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.
30 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 Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.
31 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 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. Reportable segments are identifiedbased on operating segments taking into account of materiality principle.
Inter-segment revenues are measured on the basis of the actual transaction prices for suchtransactions for segment reporting, and segment accounting policies are consistent withthose for the consolidated financial statements.
32 Significant accounting estimates and judgements
The preparation of the 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 underlying assumptions and uncertainties involved are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which theestimate 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.13 and 16) and provision for impairment of
various types of assets (see Notes V.4, 6, 7, 11, 14, 15, 16, and 17, and Note XIV.2, 3, 5 and
6). Other significant accounting estimates are as follows:
(i) Note V. 19 – Recognition of deferred tax assets;(ii) Note V. 29 – Warranty provisions;(iii) Note VIII. – Valuation of fair value of financial instruments.
Significant judgements made by the Group in the application of accounting policies are asfollows:
(i) Note V. 35 – Convertible debt and equity investment with redemption provisions terms
are categorised as financial liabilities; and(ii) Note VI. 1(1) – Significant judgements and assumptions in determining control over
other entity.
33 Changes in accounting policies
Description and reasons of changes in accounting policies
In 2019, the Group has adopted the following revised accounting standards issued by theMOF recently:
- CAS No.22 - Financial Instruments: Recognition and Measurement (Revised), CAS No.23
- Transfer of Financial Assets (Revised), CAS No.24 - Hedge Accounting (Revised) andCAS No.37 - Presentation and Disclosures of Financial Instruments (Revised) (collectively“new financial instruments standards”)- Notice on Revision of the 2019 Illustrative Financial Statements (Caikuai [2019] No.6)- Notice on Revision of the Formats of Consolidated Financial Statements (2019 Edition)
(Caikuai [2019] No.16)- CAS No.7 – Exchange of Non-monetary Assets (Revised) (“CAS 7 (2019)”)- CAS No.12 – Debt Restructuring (Revised) (“CAS 12 (2019)”)
(a) Presentation of financial statements
The Group has prepared financial statements for the year ended 31 December 2019 inaccordance with the financial statement format specified in Caikuai [2019] No.6 andCaikuai [2019] No.16. The Group has applied the new presentation requirementsretrospectively.
Affected assets and liabilities items in the consolidated and company balance sheetsas at 31 December 2018:
| ? | ? | The Group | ||||
| ? | ? | Before adjustments | ? | Adjustments | ? | After adjustments |
| ? | ? | ? | ? | ? | ? | ? |
| Bills and accounts receivable | ? | 20,537,462,095 | ? | (20,537,462,095) | ? | - |
| Bills receivable | ? | - | ? | 656,781,577 | ? | 656,781,577 |
| Accounts receivable | ? | - | ? | 19,880,680,518 | ? | 19,880,680,518 |
| Bills and accounts payable | ? | (22,805,065,888) | ? | 22,805,065,888 | ? | - |
| Bills payable | ? | - | ? | (591,109,272) | ? | (591,109,272) |
| Accounts payable | ? | - | ? | (22,213,956,616) | ? | (22,213,956,616) |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | - | ? | ? |
| ? | ? | The Company | ||||
| ? | ? | Before adjustments | ? | Adjustments | ? | After adjustments |
| ? | ? | ? | ? | ? | ? | ? |
| Bills and accounts receivable | ? | 38,452,623 | ? | (38,452,623) | ? | - |
| Bills receivable | ? | - | ? | 1,500,000 | ? | 1,500,000 |
| Accounts receivable | ? | - | ? | 36,952,623 | ? | 36,952,623 |
| Bills and accounts payable | ? | (35,322,286) | ? | 35,322,286 | ? | - |
| Accounts payable | ? | - | ? | (35,322,286) | ? | (35,322,286) |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | - | ? | ? |
(b) New financial instrument standards
New financial instruments standards revise CAS No.22 - Financial instruments:
Recognition and measurement, CAS No.23 - Transfer of Financial assets and CASNo.24 - Hedging issued by the MOF in 2006 and CAS No.37 - Presentation andDisclosures of Financial Instruments (collecting “previous financial instrumentsstandards”).
New financial instruments standards contain three principal classification categories forfinancial assets: measured at amortised cost, FVOCI and FVTPL. The classification offinancial assets under new financial instruments standards is generally based on thebusiness model in which a financial asset is managed and its contractual cash flowcharacteristics. New financial instruments standards cancel the previous categories ofheld to maturity investments, loans and receivables and available for sale financialassets under previous financial instruments standards. Under new financial instrumentsstandards, derivatives embedded in contracts where the host is a financial asset arenever separated. Instead, the hybrid financial instrument as a whole is assessed forclassification.
New financial instruments standards replace the “incurred loss” model in previousfinancial instruments standards with the ECL model. The ECL model requires anongoing measurement of credit risk associated with a financial asset and thereforerecognises ECLs earlier than under the “incurred loss” accounting model in previousfinancial instruments standards.
The Group retroactively adjusts the classification and measurement (includingimpairment) of financial instruments that have not been derecognised on theimplementation date of new financial instrument standards (i.e. 1 January 2019) inaccordance with transition provisions of the new financial instrument standards. TheGroup has not adjusted comparative figures, and recognised any difference betweenthe previous carrying amount under previous financial instruments standards and thecarrying amount at the beginning of the annual reporting period that includes the dateof initial application in the opening retained earnings or other comprehensive income.
(i) The impact of adoption new financial instrument standards on the consolidated
and company balance sheets based on the financial statements for the yearended 31 December 2018 after retrospective adjustments in accordance withCaikuai [2019] No.6 and Caikuai [2019] No.16 are summarised as follows:
| ? | The Group | |||||
| ? | 31 December 2018 | ? | 1 January 2019 | ? | Adjustments | |
| Assets: | ? | ? | ? | ? | ? | |
| ? | ? | ? | ? | ? | ? | |
| Current assets: | ? | ? | ? | ? | ? | |
| Cash at bank and on hand | 51,481,539,711 | ? | 51,481,539,711 | ? | - | |
| Financial assets held for trading | Note 1, 2 | - | ? | 4,433,393,359 | ? | 4,433,393,359 |
| Bills receivable | 656,781,577 | ? | 656,781,577 | ? | - | |
| Accounts receivable | Note 4 | 19,880,680,518 | ? | 19,874,790,758 | ? | (5,889,760) |
| Prepayments | 770,633,448 | ? | 770,633,448 | ? | - | |
| Other receivables | Note 4 | 2,454,174,971 | ? | 2,451,581,902 | ? | (2,593,069) |
| Inventories | 11,985,398,172 | ? | 11,985,398,172 | ? | - | |
| Assets held for sale | - | ? | - | ? | - | |
| Other current assets | Note 1 | 12,463,073,779 | ? | 8,042,546,852 | ? | (4,420,526,927) |
| ? | ? | ? | ? | ? | ? | |
| Total current assets | 99,692,282,176 | ? | 99,696,665,779 | ? | 4,383,603 | |
| ? | ? | ? | ? | ? | ? | |
| Non-current assets: | ? | ? | ? | ? | ? | |
| Available-for-sale financial assets | Note 2, 3 | 734,022,359 | ? | - | ? | (734,022,359) |
| Long-term equity investments | 2,389,166,886 | ? | 2,389,166,886 | ? | - | |
| Investments in other equity instruments | Note 3 | - | ? | 721,155,927 | ? | 721,155,927 |
| Investment properties | 1,283,867,651 | ? | 1,283,867,651 | ? | - | |
| Fixed assets | 128,157,730,995 | ? | 128,157,730,995 | ? | - | |
| Construction in progress | 56,423,354,887 | ? | 56,423,354,887 | ? | - | |
| Intangible assets | 5,937,679,394 | ? | 5,937,679,394 | ? | - | |
| Goodwill | 904,370,509 | ? | 904,370,509 | ? | - | |
| Long-term deferred expenses | 360,640,853 | ? | 360,640,853 | ? | - | |
| Deferred tax assets | 252,373,622 | ? | 252,373,622 | ? | - | |
| Other non-current assets | 7,893,002,053 | ? | 7,893,002,053 | ? | - | |
| ? | ? | ? | ? | ? | ? | |
| Total non-current assets | 204,336,209,209 | ? | 204,323,342,777 | ? | (12,866,432) | |
| ? | ||||||
| ? | ? | ? | ? | ? | ? | |
| Total assets | 304,028,491,385 | ? | 304,020,008,556 | ? | (8,482,829) | |
| ? | The Group | ||||
| ? | 31 December 2018 | ? | 1 January 2019 | ? | Adjustments |
| Liabilities and shareholders’ equity | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Current liabilities: | ? | ? | ? | ? | ? |
| Short-term loans | 5,449,954,885 | ? | 5,449,954,885 | ? | - |
| Bills payable | 591,109,272 | ? | 591,109,272 | ? | - |
| Accounts payable | 22,213,956,616 | ? | 22,213,956,616 | ? | - |
| Advance payments received | 1,218,934,743 | ? | 1,218,934,743 | ? | - |
| Employee benefits payable | 2,224,931,171 | ? | 2,224,931,171 | ? | - |
| Taxes payable | 970,108,298 | ? | 970,108,298 | ? | - |
| Other payables | 22,956,979,828 | ? | 22,956,979,828 | ? | - |
| Non-current liabilities due within one year | 5,597,563,204 | ? | 5,597,563,204 | ? | - |
| Other current liabilities | 1,004,557,061 | ? | 1,004,557,061 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total current liabilities | 62,228,095,078 | ? | 62,228,095,078 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Non-current liabilities: | ? | ? | ? | ? | ? |
| Long-term loans | 94,780,077,864 | ? | 94,780,077,864 | ? | - |
| Debentures payable | 10,288,666,233 | ? | 10,288,666,233 | ? | - |
| Long-term payables | 1,416,092,239 | ? | 1,416,092,239 | ? | - |
| Provisions | 16,457,010 | ? | 16,457,010 | ? | - |
| Deferred income | 2,187,558,533 | ? | 2,187,558,533 | ? | - |
| Deferred tax liabilities | 1,419,373,545 | ? | 1,419,373,545 | ? | - |
| Other non-current liabilities | 11,334,873,322 | ? | 11,334,873,322 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total non-current liabilities | 121,443,098,746 | ? | 121,443,098,746 | ? | - |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Total liabilities | 183,671,193,824 | ? | 183,671,193,824 | ? | - |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Shareholders’ equity: | ? | ? | ? | ? | ? |
| Share capital | 34,798,398,763 | ? | 34,798,398,763 | ? | - |
| Capital reserve | 38,213,100,596 | ? | 38,213,100,596 | ? | - |
| Other comprehensive income | (125,258,252) | ? | (291,856,968) | ? | (166,598,716) |
| Surplus reserve | 1,152,626,310 | ? | 1,152,626,310 | ? | - |
| Retained earnings | 11,817,881,286 | ? | 11,977,119,533 | ? | 159,238,247 |
| ? | ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | 85,856,748,703 | ? | 85,849,388,234 | ? | (7,360,469) |
| ? | ? | ? | ? | ? | ? |
| Non-controlling interests | 34,500,548,858 | ? | 34,499,426,498 | ? | (1,122,360) |
| ? | ? | ? | ? | ? | ? |
| Total shareholders' equity | 120,357,297,561 | ? | 120,348,814,732 | ? | (8,482,829) |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | 304,028,491,385 | ? | 304,020,008,556 | ? | (8,482,829) |
| ? | The Company | ||||
| ? | 31 December 2018 | ? | 1 January 2019 | ? | Adjustments |
| Assets: | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Current assets: | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 3,829,814,050 | ? | 3,829,814,050 | ? | - |
| Bills receivable | 1,500,000 | ? | 1,500,000 | ? | - |
| Accounts receivable | 36,952,623 | ? | 36,952,623 | ? | - |
| Prepayments | 25,020,734 | ? | 25,020,734 | ? | - |
| Other receivables | 2,015,828,460 | ? | 2,015,828,460 | ? | - |
| Inventories | 9,289,141 | ? | 9,289,141 | ? | - |
| Non-current assets due within one year | 450,000,000 | ? | 450,000,000 | ? | - |
| Other current assets | 47,805,096 | ? | 47,805,096 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total current assets | 6,416,210,104 | ? | 6,416,210,104 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Non-current assets: | ? | ? | ? | ? | ? |
| Available-for-sale financial assets | 128,297,254 | ? | - | ? | (128,297,254) |
| Long-term equity investments | 143,499,733,485 | ? | 143,499,733,485 | ? | - |
| Investments in other equity instruments | - | ? | 128,297,254 | ? | 128,297,254 |
| Investment properties | 290,253,475 | ? | 290,253,475 | ? | - |
| Fixed assets | 969,371,352 | ? | 969,371,352 | ? | - |
| Construction in progress | 251,314,313 | ? | 251,314,313 | ? | - |
| Intangible assets | 514,186,496 | ? | 514,186,496 | ? | - |
| Long-term deferred expenses | 99,701,797 | ? | 99,701,797 | ? | - |
| Deferred tax assets | 290,794,548 | ? | 290,794,548 | ? | - |
| Other non-current assets | 284,243,667 | ? | 284,243,667 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total non-current assets | 146,327,896,387 | ? | 146,327,896,387 | ? | - |
| ? | |||||
| ? | ? | ? | ? | ? | ? |
| Total assets | 152,744,106,491 | ? | 152,744,106,491 | ? | - |
| ? | |||||
| ? | The Company | ||||
| ? | 31 December 2018 | ? | 1 January 2019 | ? | Adjustments |
| Liabilities and shareholders’ equity | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Current liabilities: | ? | ? | ? | ? | ? |
| Short-term loans | 1,000,000,000 | ? | 1,000,000,000 | ? | - |
| Accounts payable | 35,322,286 | ? | 35,322,286 | ? | - |
| Advance payments received | 1,577,035,515 | ? | 1,577,035,515 | ? | - |
| Employee benefits payable | 201,139,261 | ? | 201,139,261 | ? | - |
| Taxes payable | 250,558,556 | ? | 250,558,556 | ? | - |
| Other payables | 8,209,736,090 | ? | 8,209,736,090 | ? | - |
| Non-current liabilities due within one year | 2,590,000,000 | ? | 2,590,000,000 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total current liabilities | 13,863,791,708 | ? | 13,863,791,708 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Non-current liabilities: | ? | ? | ? | ? | ? |
| Long-term loans | 26,520,000,000 | ? | 26,520,000,000 | ? | - |
| Debentures payable | 9,976,533,425 | ? | 9,976,533,425 | ? | - |
| Deferred income | 5,523,949,841 | ? | 5,523,949,841 | ? | - |
| Other non-current liabilities | 20,954,104,125 | ? | 20,954,104,125 | ? | - |
| ? | ? | ? | - | ? | - |
| Total non-current liabilities | 62,974,587,391 | ? | 62,974,587,391 | ? | - |
| ? | |||||
| ? | ? | ? | ? | ? | ? |
| Total liabilities | 76,838,379,099 | ? | 76,838,379,099 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Shareholders’ equity: | ? | ? | ? | ? | ? |
| Share capital | 34,798,398,763 | ? | 34,798,398,763 | ? | - |
| Capital reserve | 37,590,966,191 | ? | 37,590,966,191 | ? | - |
| Other comprehensive income | (28,507,585) | ? | (246,193,654) | ? | (217,686,069) |
| Surplus reserve | 1,152,626,310 | ? | 1,152,626,310 | ? | - |
| Retained earnings | 2,392,243,713 | ? | 2,609,929,782 | ? | 217,686,069 |
| ? | ? | ? | ? | ? | ? |
| Total shareholders’ equity | 75,905,727,392 | ? | 75,905,727,392 | ? | - |
| ? | |||||
| ? | ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | 152,744,106,491 | ? | 152,744,106,491 | ? | - |
Note 1: On 31 December 2018, the carrying amount of bank wealth
management products at FVTOCI held by the Group was RMB4,420,526,927. On 1 January 2019, the Group reclassified them tofinancial assets held for trading according to the new financial instrumentstandards, valued at fair value.
Note 2: On 31 December 2018, the carrying amount of available-for-sale debt
instruments was RMB 12,866,432. On 1 January 2019, the Groupreclassified them to financial assets held for trading according to the newfinancial instrument standards, valued at fair value.
Note 3: On 31 December 2018, the carrying amount of listed equity instruments
investment at FVTPL was RMB 378,636,117. On 1 January 2019, theGroup designated them as financial assets at FVTOCI out of theintention of establishing or maintaining a long-term investment forstrategic reasons, presenting as investments in other equity instruments.On 31 December 2018, the carrying amount of unlisted equity
instruments investment at amortised cost was RMB 342,519,810. On 1January 2019, the Group designated them as financial assets atFVTOCI for the consideration of long-term strategic investments,presenting as investments in other equity instruments.
Note 4: The Group retrospectively adjusted the financial statements as at 1
January 2019 according to the ECL model, refer to Note III.33(b)(iii).
(ii) Impact of financial instrument classification
On 31 December 2018, the carrying amount of listed equity investments at fairvalue held by the Group was RMB 378,636,117, and the accumulated impairmentprovision was RMB 150,099,655. On 1 January 2019, for the consideration oflong-term strategic investments, the Group chose to designate the equityinvestments as financial assets at FVOCI, which are presented as investments inother equity instruments. Accordingly, the Group transferred the accumulatedimpairment provision less the income tax expenses of RMB 127,584,707 fromretained earnings at the beginning of the year to other comprehensive income atthe beginning of the year.
On 31 December 2018, the carrying amount of unlisted equity investments atcost held by the Group was RMB 342,519,810, and the accumulated impairmentprovision was RMB 34,495,952. On 1 January 2019, for the consideration oflong-term strategic investments, the Group chose to designate the equityinvestments as financial assets at FVOCI, which are presented as investments inother equity instruments. Accordingly, the Group transferred the accumulatedimpairment provision less the income tax expenses of RMB 29,321,559 fromretained earnings at the beginning of the year to other comprehensive income atthe beginning of the year. On 1 January 2019, the fair value measurement of thispart of equity investments did not give rise to changes in the carrying amount ofother equity instruments.
On 31 December 2018, the carrying amount of bank wealth managementproducts at FVTOCI held by the Group was RMB 4,420,526,927 and theaccumulated gain or loss that has been recognised directly in othercomprehensive income was RMB 9,692,450. On 1 January 2019, the Groupreclassified them to financial assets held for trading according to the newfinancial instrument standards, valued at fair value. Accordingly, the Grouptransferred fair value movements of RMB 9,692,450 accumulated in othercomprehensive income to retained earnings.
The Group did not designate or de-designate any financial asset or financialliability at FVTPL at 1 January 2019.
The results for the classification and measurement of financial assets under newfinancial instrument standards and previous financial instrument standards basedon the financial statements for the year ended 31 December 2018 afterretrospective adjustments in accordance with Caikuai [2019] No.6 and Caikuai[2019] No.16 are summarised as follows:
The Group
| Previous financial instrument standards (31 December 2018) | ? | New financial instrument standards (1 January 2019) | ||||||||
| Item | ? | Measurement category | ? | Carrying amount | ? | Item | ? | Measurement category | ? | Carrying amount |
| Cash at bank and on hand | ? | Amortised cost (loans and receivables) | ? | 51,481,539,711 | ? | Cash at bank and on hand | ? | Amortised cost | ? | 51,481,539,711 |
| Bills receivable | ? | Amortised cost (loans and receivables) | ? | 656,781,577 | ? | Bills receivable | ? | Amortised cost | ? | 656,781,577 |
| Accounts receivable | ? | Amortised cost (loans and receivables) | ? | 19,880,680,518 | ? | Accounts receivable | ? | Amortised cost | ? | 19,874,790,758 |
| Other receivables | ? | Amortised cost (loans and receivables) | ? | 2,454,174,971 | ? | Other receivables | ? | Amortised cost | ? | 2,451,581,902 |
| Other current assets - wealth management products | ? | FVOCI (debt instruments) | ? | 1,113,886,639 | ? | Other current assets | ? | Amortised cost | ? | 1,113,886,639 |
| Other current assets - wealth management products | ? | FVOCI (debt instruments) | ? | 4,420,526,927 | ? | Financial assets held for trading | ? | FVTPL | ? | 4,420,526,927 |
| Available-for-sale financial assets – Debt instruments at fair value | ? | FVOCI (debt instruments) | ? | 12,866,432 | ? | Financial assets held for trading | ? | FVTPL | ? | 12,866,432 |
| Available-for-sale financial assets – equity instruments at fair value | ? | FVOCI (equity instruments) | ? | 378,636,117 | ? | Investments in other equity instruments | ? | FVOCI | ? | 378,636,117 |
| Available-for-sale financial assets – equity instruments at cost | ? | At cost (equity instruments) | ? | 342,519,810 | ? | Investments in other equity instruments | ? | FVOCI | ? | 342,519,810 |
The Company
?Previous financial instrument standards
| Previous financial instrument standards | ? | New financial instrument standards | ||||||||
| (31 December 2018) | ? | (1 January 2019) | ||||||||
| Item | Measurement category | Carrying amount | ? | Item | Measurement category | Carrying amount | ||||
| Cash at bank and on hand | Amortised cost (loans and receivables) | 3,829,814,050 | ? | Cash at bank and on hand | Amortised cost | 3,829,814,050 | ||||
| Bills receivable | Amortised cost (loans and receivables) | 1,500,000 | ? | Bills receivable | Amortised cost | 1,500,000 | ||||
| Accounts receivable | Amortised cost (loans and receivables) | 36,952,623 | ? | Accounts receivable | Amortised cost | 36,952,623 | ||||
| Other receivables | Amortised cost (loans and receivables) | 2,015,828,460 | ? | Other receivables | Amortised cost | 2,015,828,460 | ||||
| Available-for-sale financial assets – equity instruments at fair value | FVOCI (equity instruments) | 109,609,222 | ? | Investments in other equity instruments | FVOCI | 109,609,222 | ||||
| Available-for-sale financial assets – equity instruments at cost | At cost (equity instruments) | 18,688,032 | ? | Investments in other equity instruments | FVOCI | 18,688,032 | ||||
Reconciliation between the original carrying amount of financial assets and the carrying amount of new financial assets under theclassification and measurement requirements of new financial instrument standards based on the financial statements for the yearended 31 December 2018 after retrospective adjustments in accordance with Caikuai [2019] No.6 and Caikuai [2019] No.16 aresummarised as follows:
The Group
| ?? | Carrying amout under the previous financial instruments standards (31 December 2018) | Reclassification | Remeasurement | Carrying amout under the new financial instruments standards (1 January 2019) | ||||
| Amortised cost | ? | ? | ? | ? | ? | ? | ||
| Cash at bank and on hand | ? | ? | ? | ? | ? | ? | ? | ? |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 51,481,539,711 | ? | - | ? | - | ? | 51,481,539,711 |
| Bills receivable | ? | ? | ? | ? | ? | ? | ? | ? |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 656,781,577 | ? | - | ? | - | ? | 656,781,577 |
| Accounts receivable | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 19,880,680,518 | ? | ? | ? | ? | ? | ? |
| Remeasurement: allowance for ECL | ? | ? | ? | ? | ? | (5,889,760) | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 19,874,790,758 |
| Other receivables | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 2,454,174,971 | ? | ? | ? | ? | ? | ? |
| Remeasurement: allowance for ECL | ? | ? | ? | ? | ? | (2,593,069) | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 2,451,581,902 |
| Other current assets - wealth management products (new financial instrument standards) | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | - | ? | ? | ? | ? | ? | ? |
| Add: transferred from other current assets (available-for-sale financial assets) | ? | ? | ? | 1,113,886,639 | ? | ? | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 1,113,886,639 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total financial assets measured at amortised cost | ? | 74,473,176,777 | ? | 1,113,886,639 | ? | (8,482,829) | ? | 75,578,580,587 |
| ? | Carrying amout under the | ? | Reclassification | ? | Remeasurement | ? | Carrying amout under the | |
| ? | previous financial instruments standards | ? | ? | ? | new financial instruments standards | |||
| ? | (31 December 2018) | ? | ? | ? | (1 January 2019) | |||
| FVTPL | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets held for trading (including other non-current financial assets) | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | - | ? | ? | ? | ? | ? | ? |
| Add: transferred from available-for-sale financial assets (previous financial instrument standards) | ? | ? | ? | 12,866,432 | ? | ? | ? | ? |
| Add: transferred from other current assets (available-for-sale financial assets) | ? | ? | ? | 4,420,526,927 | ? | ? | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 4,433,393,359 |
| ? | Carrying amout under the | ? | Reclassification | ? | Remeasurement | ? | Carrying amout under the | |
| ? | previous financial instruments standards | ? | ? | ? | new financial instruments standards | |||
| ? | (31 December 2018) | ? | ? | ? | (1 January 2019) | |||
| FVOCI | ? | ? | ? | ? | ? | ? | ? | ? |
| Other current assets - wealth management products | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 5,534,413,566 | ? | ? | ? | ? | ? | ? |
| Less: transferred to FVTPL (new financial instrument standards) | ? | ? | ? | (4,420,526,927) | ? | ? | ? | ? |
| Less: transferred to amortised cost (new financial instrument standards) | ? | ? | ? | (1,113,886,639) | ? | ? | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | - |
| Available-for-sale financial assets | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 734,022,359 | ? | ? | ? | ? | ? | ? |
| Less: transferred to FVTPL as required (new financial instrument standards) | ? | ? | ? | (12,866,432) | ? | ? | ? | ? |
| Less: transferred to FVOCI as designated (new financial instrument standards) | ? | ? | ? | (721,155,927) | ? | ? | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | - |
| Investments in other equity instruments | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | - | ? | ? | ? | ? | ? | ? |
| Add: transferred from available-for-sale financial assets (previous financial instrument standards) | ? | ? | ? | 721,155,927 | ? | ? | ? | ? |
| Remeasurement: from cost to fair value | ? | ? | ? | ? | ? | - | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 721,155,927 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total financial assets at FVOCI | ? | 6,268,435,925 | ? | (5,547,279,998) | ? | - | ? | 721,155,927 |
The Company
| ? | Carrying amout under | ? | Reclassification | ? | Remeasurement | ? | Carrying amout under | |
| ? | the previous financial instruments standards | ? | ? | ? | the new financial instruments standards | |||
| ? | (31 December 2018) | ? | ? | ? | (1 January 2019) | |||
| Amortised cost | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | ? | ? | ? | ? | ? | ? | ? | ? |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 3,829,814,050 | ? | - | ? | - | ? | 3,829,814,050 |
| Bills receivable | ? | ? | ? | ? | ? | ? | ? | ? |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 1,500,000 | ? | - | ? | - | ? | 1,500,000 |
| Accounts receivable | ? | ? | ? | ? | ? | ? | ? | ? |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 36,952,623 | ? | - | ? | - | ? | 36,952,623 |
| Other receivables | ? | ? | ? | ? | ? | ? | ? | - |
| Balances under previous financial instrument standards and new financial instrument standards | ? | 2,015,828,460 | ? | - | ? | - | ? | 2,015,828,460 |
| Total financial assets at amortised cost | ? | 5,884,095,133 | ? | - | ? | - | ? | 5,884,095,133 |
| ? | Carrying amout under | ? | Reclassification | ? | Remeasurement | ? | Carrying amout under | |
| ? | the previous financial instruments standards | ? | ? | ? | the new financial instruments standards | |||
| ? | (31 December 2018) | ? | ? | ? | (1 January 2019) | |||
| FVOCI | ? | ? | ? | ? | ? | ? | ? | ? |
| Available-for-sale financial assets | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 128,297,254 | ? | ? | ? | ? | ? | ? |
| Less: transferred to FVOCI as designated (new financial instrument standards) | ? | ? | ? | (128,297,254) | ? | ? | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | - |
| Investments in other equity instruments | ||||||||
| Balance under the previous financial instrument standards | ? | - | ? | ? | ? | ? | ? | ? |
| Add: transferred from available-for-sale financial assets (previous financial instrument standards) | ? | ? | ? | 128,297,254 | ? | ? | ? | ? |
| Remeasurement: from cost to fair value | ? | ? | ? | ? | ? | - | ? | ? |
| Balance under the new financial instrument standards | ? | ? | ? | ? | ? | ? | ? | 128,297,254 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total financial assets at FVOCI | ? | 128,297,254 | ? | - | ? | - | ? | 128,297,254 |
(iii) Impact of adopting the ECL model
The Group applies the new ECL model to the following items:
- financial assets measured at amortised cost;- debt investments at FVOCI
The new ECL model do not apply to investments in equity instruments.
Reconciliation between the closing amount of original impairment provision for financial assets and the new loss allowance forfinancial assets under the classification and measurement requirements of new financial instrument standards based on thefinancial statements for the year ended 31 December 2018 after retrospective adjustments in accordance with Caikuai [2019] No.6and Caikuai [2019] No.16 are summarised as follows:
The Group
| Measurement category | ? | Loss allowance under the previous financial instrument standards/ provisions recognised under the contingency standard (31 December 2018) | ? | Reclassification | ? | Remeasurement | ? | Loss allowance under the new financial instrument standards (1 January 2019) |
| Loans and receivables (previous financial instrument standards)/financial assets at amortised cost (new financial instrument standards) | ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | ? | (319,321,830) | ? | - | ? | (5,889,760) | ? | (325,211,590) |
| Other receivables | ? | (340,512) | ? | - | ? | (2,593,069) | ? | (2,933,581) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | (319,662,342) | ? | - | ? | (8,482,829) | ? | (328,145,171) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Available-for-sale financial assets (previous financial instrument standards)/financial assets at FVOCI (new financial instrument standards) | ? | ? | ? | ? | ? | ? | ? | ? |
| Available-for-sale financial assets | ? | (184,595,607) | ? | 184,595,607 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | (504,257,949) | ? | 184,595,607 | ? | (8,482,829) | ? | (328,145,171) |
The Company
| Measurement category | ? | Loss allowance under the previous financial instrument standards/ provisions recognised under the contingency standard (31 December 2018) | ? | Reclassification | ? | Remeasurement | ? | Loss allowance under the new financial instrument standards (1 January 2019) |
| Loans and receivables (previous financial instrument standards)/financial assets at amortised cost (new financial instrument standards) | ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | ? | (2,889,866) | ? | - | ? | - | ? | (2,889,866) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Available-for-sale financial assets (previous financial instrument standards)/financial assets at FVOCI (new financial instrument standards) | ? | ? | ? | ? | ? | ? | ? | ? |
| Available-for-sale financial assets | ? | (256,101,258) | ? | 256,101,258 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | (258,991,124) | ? | 256,101,258 | ? | - | ? | (2,889,866) |
(c) CAS 7 (2019)
CAS 7 (2019) further clarifies the scope of the standard, specifies the timing forrecognition of assets received and derecognition of assets given up, and theaccounting treatment for cases in which the timing of recognition and derecognition areinconsistent. The standard modifies the principle of measurement for multiple assetsreceived or given up simultaneously in exchanges of non-monetary assets measured atfair value. It also requires the disclosure of whether exchanges of non-monetaryassets have commercial substance and the reasons why they do or do not havecommercial substance.
The CAS 7 (2019) took effect on 10 June 2019. Exchange of non-monetary assetsbetween 1 January 2019 and the implementation date should be adjusted based on therevised standard. Retrospective adjustment is not required for the exchange of non-monetary assets prior to 1 January 2019. The adoption of CAS 7 (2019) has nomaterial effect on the consolidated financial position and consolidated financialperformance of the Group as well as the financial position and financial performance ofthe Company.
(d) CAS 12 (2019)
CAS 12 (2019) modifies the definition of debt restructuring to specify the scope of thisstandard, as well as the application of relevant financial instruments standards withrespect to the recognition, measurement and presentation of financial instrumentsinvolved in debt restructuring. For debt restructuring in which a debt is settled by thetransfer of assets, CAS 12 (2019) modifies the principle of measurement for initialrecognition of non-financial assets received by the creditor, and gains or losses of thedebtor from debt restructuring are recognised without distinguishing whether they aregains or losses from asset transfer or debt restructuring. For debt restructuring in whicha debt is settled by the issuance of equity instruments to the creditor, CAS 12 (2019)revises the principle of measurement for initial recognition of its share of equity by thecreditor, and provides more guidance on the principle of measurement for initialrecognition of equity instruments by the debtor.
The effective date of CAS 12 (2019) is 17 June 2019. Debt restructuring that occurredbetween 1 January 2019 and the effective date shall be adjusted according to CAS 12(2019). Retrospective adjustment is not required for debt restructuring prior to 1January 2019. The adoption of CAS 12 (2019) has no material effect on theconsolidated financial position and consolidated financial performance of the Group aswell as the financial position and financial performance of the Company.
IV. Taxation
1 Main types of taxes and corresponding tax rates
| Tax type | ? | Tax basis | ? | Tax rate |
| ? | ? | ? | ? | ? |
| Value-added tax (VAT) | ? | Output VAT is calculated on product sales and taxable services revenue. The basis for VAT payable is to deduct input VAT from the output VAT for the period | ? | 6%，9%，10%，11%，13%， 16%，17% |
| City 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 | ? | 10% - 33% |
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2018: 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 25 October 2017, the Company renewed the High-tech Enterprise Certificate No.GR201711002584, which was entitled jointly by Beijing Municipal Science and TechnologyCommission, Beijing Municipal Financial Bureau, Beijing Municipal State Administration ofTaxation and Beijing Municipal Local Administration of Taxation. The Company is subject tocorporate income tax rate of 15% since the date of certification with the valid period of threeyears.
The income tax rate applicable to other subsidiaries of the Group is 25% other than thefollowing subsidiaries and the overseas subsidiaries which subject to the local income taxrate.
The subsidiaries that are entitled to preferential tax treatments are as follows:
| Company name | Preferential rate | ? | Reason |
| ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) | 15% | ? | High-tech Enterprise |
| Chengdu BOE Optoelectronics Technology Co., Ltd (Chengdu Optoelectronics) | 15% | ? | High-tech Enterprise |
| Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE) | 15% | ? | High-tech Enterprise |
| Beijing BOE Display Technology Co., Ltd. (BOE Display) | 15% | ? | High-tech Enterprise |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei Xinsheng) | 15% | ? | High-tech Enterprise |
| Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics) | 15% | ? | Encouraged enterprise in Western Regions |
| Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) | 15% | ? | Encouraged enterprise in Western Regions |
| BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei) | 15% | ? | High-tech Enterprise |
| BOE Optical Science and technology Co., Ltd (Optical Technology) | 15% | ? | High-tech Enterprise |
| Beijing BOE CHATANI ElectronicsCo., Ltd. (Beijing CHATANI) | 15% | ? | High-tech Enterprise |
| Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display Lighting) | 15% | ? | High-tech Enterprise |
| BOE Semi-conductor Co., Ltd. (BOE Semiconductor) | 15% | ? | High-tech Enterprise |
| Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) | 15% | ? | High-tech Enterprise |
| Beijing BOE Special Display Technology Co., Ltd. (Special Display) | 15% | ? | High-tech Enterprise |
| Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) | 15% | ? | High-tech Enterprise |
| Beijing Asahi Electronic Materials Co., Ltd. (Asahi Materials) | 15% | ? | High-tech Enterprise |
| Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) | 15% | ? | High-tech Enterprise |
| Beijing BOE Energy Technology Co., Ltd. (BOE Energy) | 15% | ? | High-tech Enterprise |
| Beijing BOE multimedia Technology Co., Ltd. (BOE multimedia) | 15% | ? | High-tech Enterprise |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE) | 15% | ? | High-tech Enterprise |
| Hefei BOE Display Technology Co., Ltd. (Hefei Display Technology) | 15% | ? | High-tech Enterprise |
| Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE) | 15% | ? | Encouraged enterprise in Western Regions |
| BOE Smart IOT Technology Co., Ltd (Smart IOT) | 15% | ? | High-tech Enterprise |
| Company name | Preferential rate | ? | Reason |
| K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics) | 15% | ? | High-tech Enterprise |
| Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Smart Electronic System Co., Ltd (Chongqing Smart Electronic) | 15% | ? | Encouraged enterprise in Western Regions |
| Beijing BOE Health Technology Co., Ltd (Health Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Electronic Technology Co., Ltd (Chongqing Electronic Technology) | 15% | ? | Encouraged enterprise in Western Regions |
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash on hand: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 352,736 | ? | ? | ? | ? | ? | 285,407 |
| USD | 1,927 | ? | 6.9762 | ? | 13,443 | ? | 1,364 | ? | 6.8632 | ? | 9,361 |
| HKD | 96,829 | ? | 0.8958 | ? | 86,739 | ? | 56,603 | ? | 0.8762 | ? | 49,596 |
| JPY | 51,485 | ? | 0.0641 | ? | 3,300 | ? | 1,668,876 | ? | 0.0619 | ? | 103,303 |
| KRW | 490,690 | ? | 0.0060 | ? | 2,944 | ? | 490,686 | ? | 0.0061 | ? | 2,993 |
| Other foreign currencies | ? | ? | ? | ? | 79,176 | ? | ? | ? | ? | ? | 87,145 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 538,338 | ? | ? | ? | ? | ? | 537,805 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank Deposits: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 22,108,949,641 | ? | ? | ? | ? | ? | 19,526,770,243 |
| USD | 3,793,451,398 | ? | 6.9762 | ? | 26,463,875,643 | ? | 3,215,270,076 | ? | 6.8632 | ? | 22,067,041,586 |
| HKD | 17,880,803 | ? | 0.8958 | ? | 16,017,623 | ? | 36,614,201 | ? | 0.8762 | ? | 32,081,363 |
| JPY | 11,996,438,527 | ? | 0.0641 | ? | 768,971,710 | ? | 15,077,127,145 | ? | 0.0619 | ? | 933,274,170 |
| KRW | 700,598,718 | ? | 0.0060 | ? | 4,203,592 | ? | 1,274,695,127 | ? | 0.0061 | ? | 7,775,640 |
| EUR | 110,515,896 | ? | 7.8155 | ? | 863,736,985 | ? | 94,362,955 | ? | 7.8473 | ? | 740,494,417 |
| Other foreign currencies | ? | ? | ? | ? | 43,452,413 | ? | ? | ? | ? | ? | 32,708,963 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 50,269,207,607 | ? | ? | ? | ? | ? | 43,340,146,382 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Other monetary funds: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 3,728,439,717 | ? | ? | ? | ? | ? | 4,883,082,015 |
| USD | 421,172,173 | ? | 6.9762 | ? | 2,938,181,313 | ? | 473,193,118 | ? | 6.8632 | ? | 3,247,619,007 |
| HKD | 3,156 | ? | 0.8958 | ? | 2,827 | ? | 11,423,973 | ? | 0.8762 | ? | 10,009,685 |
| JPY | 567,260,199 | ? | 0.0641 | ? | 36,353,437 | ? | 2,339,530 | ? | 0.0619 | ? | 144,817 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 6,702,977,294 | ? | ? | ? | ? | ? | 8,140,855,524 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | - | ? | ? | ? | 56,972,723,239 | ? | ? | ? | ? | ? | 51,481,539,711 |
Including: Total overseas deposits were equivalent to RMB 5,864,466,250 (2018: RMB5,012,219,357).
As at 31 December 2019, other monetary funds were pledged by the Group amounting toUSD 342,000,000 for short-term loans, RMB 151,840,291 and and USD 7,500,000 werepledged for long-term loans. The rest of other restricted monetary funds, amounting to RMB4,112,379,475, were the deposits in commercial banks as security.
As at 31 December 2018, other monetary funds were pledged by the Group amounting toUSD 305,000,000 for short-term loans, RMB142,547,192 and and USD 18,500,000 werepledged for long-term loans. The rest of other restricted monetary funds, amounting to RMB5,768,050,799, were the deposits in commercial banks as security.
2 Financial assets held for trading
| Item | 31 December 2019 | ? | 1 January 2019 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | 5,809,184,994 | ? | 4,433,393,359 |
| Including: Wealth management products | 5,809,184,994 | ? | 4,420,526,927 |
| Debt instruments | - | ? | 12,866,432 |
| ? | ? | ? | ? |
| Total | 5,809,184,994 | ? | 4,433,393,359 |
3 Bills receivable
(1) Classification of bills receivable
?
Item
| Item | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 331,145,492 | ? | 655,081,577 | ? | 655,081,577 |
| Commercial acceptance bills | ? | - | ? | 1,700,000 | ? | 1,700,000 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 331,145,492 | ? | 656,781,577 | ? | 656,781,577 |
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2019, there is no pledged bills for the Group (2018: RMB 6,605,869).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year:
?
Item
| Item | ? | Amount derecognised at year end | ? | Amount not-derecognised at year end |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 7,172,846 | ? | 57,102,517 |
| ? | ? | ? | ? | ? |
| Total | ? | 7,172,846 | ? | 57,102,517 |
For the year ended 31 December 2019, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2018:
nil).
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
| Item | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 1,960,247 | ? | 52,246 | ? | 52,246 |
| Amounts due from other customers | ? | 18,481,732,857 | ? | 20,199,950,102 | ? | 20,199,950,102 |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 18,483,693,104 | ? | 20,200,002,348 | ? | 20,200,002,348 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 348,005,298 | ? | 325,211,590 | ? | 319,321,830 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 18,135,687,806 | ? | 19,874,790,758 | ? | 19,880,680,518 |
(2) The Group’s accounts receivable by currency type:
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 8,041,480,485 | ? | ? | ? | ? | ? | 7,253,239,876 |
| USD | 1,438,995,152 | ? | 6.9762 | ? | 10,038,717,980 | ? | 1,800,476,186 | ? | 6.8632 | ? | 12,357,028,161 |
| JPY | 25,172,988 | ? | 0.0641 | ? | 1,613,589 | ? | 36,523,949 | ? | 0.0619 | ? | 2,260,467 |
| Other foreign currencies | ? | ? | ? | ? | 401,881,050 | ? | ? | ? | ? | ? | 587,473,844 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 18,483,693,104 | ? | ? | ? | ? | ? | 20,200,002,348 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 348,005,298 | ? | ? | ? | ? | ? | 319,321,830 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 18,135,687,806 | ? | ? | ? | ? | ? | 19,880,680,518 |
(3) The ageing analysis of accounts receivable is as follows:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 17,872,807,760 | ? | 19,748,808,258 |
| 1 to 2 years (inclusive) | ? | 233,485,656 | ? | 136,291,482 |
| 2 to 3 years (inclusive) | ? | 68,549,411 | ? | 279,756,940 |
| Over 3 years | ? | 308,850,277 | ? | 35,145,668 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 18,483,693,104 | ? | 20,200,002,348 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 348,005,298 | ? | 319,321,830 |
| ? | ? | ? | ? | ? |
| Total | ? | 18,135,687,806 | ? | 19,880,680,518 |
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
| ? | ? | 2019 | ||||||||
| ? | ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | ? | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | ? | 334,464,437 | ? | 2% | ? | 334,419,437 | ? | 100% | ? | 45,000 |
| - Customers with low credit risk | ? | 1,398,318,800 | ? | 7% | ? | 38,734 | ? | 0% | ? | 1,398,280,066 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | ? | 16,750,909,867 | ? | 91% | ? | 13,547,127 | ? | 0% | ? | 16,737,362,740 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 18,483,693,104 | ? | 100% | ? | 348,005,298 | ? | 2% | ? | 18,135,687,806 |
??
| ? | ? | 2018 | ||||||||
| ? | ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | ? | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivables that are collectively assessed for impairment based on credit risk characteristics | ? | 20,149,872,554 | ? | 100% | ? | 275,864,448 | ? | 1% | ? | 19,874,008,106 |
| Individually insignificant but assessed for impairment individually | ? | 50,129,794 | ? | 0% | ? | 43,457,382 | ? | 87% | ? | 6,672,412 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 20,200,002,348 | ? | 100% | ? | 319,321,830 | ? | 2% | ? | 19,880,680,518 |
(a) Criteria for collective assessment in 2019 and details:
?
Customer group?
| 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 moderate credit risk | Customers not included in Groups above |
(b) Assessment of ECLs on accounts receivable in 2019:
At all times the Group measures the impairment loss for accounts receivable at an
amount equal to lifetime ECLs, and the ECLs are based on the number of overduedays and the loss given default. According to the Group’s historical experience,different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 319,321,830 | ? | 304,687,117 |
| Adjustment on initial application of the new financial instrument standards | ? | 5,889,760 | ? | - |
| Balance at the beginning of the year after adjustment | ? | 325,211,590 | ? | 304,687,117 |
| Charge during the year | ? | 23,510,271 | ? | 5,005,871 |
| Recoveries during the year | ? | 1,493,365 | ? | 1,779,710 |
| Written-off during the year | ? | 4,211,814 | ? | 2,475,273 |
| Translation differences | ? | 4,988,616 | ? | 13,883,825 |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 348,005,298 | ? | 319,321,830 |
(6) Five largest accounts receivable by debtor at the end of the year
The total of five largest accounts receivable of the Group at the end of the year was RMB8,182,469,728, representing 45% of the total accounts receivable, and no provision wasmade for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Prepayment for inventory | ? | 107,673,472 | ? | 252,434,159 |
| Prepayment for electricity and water | 271,295,136 | 189,744,046 | ||
| Others | ? | 248,017,098 | ? | 328,455,243 |
| ? | ? | ? | ? | ? |
| Total | ? | 626,985,706 | ? | 770,633,448 |
(2) The ageing analysis of prepayments is as follows:
| ? | 2019 | ? | 2018 | ||||
| Ageing | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | 459,763,565 | ? | 73% | ? | 721,657,321 | ? | 94% |
| 1 to 2 years (inclusive) | 148,351,079 | ? | 24% | ? | 46,363,026 | ? | 6% |
| 2 to 3 years (inclusive) | 17,719,439 | ? | 3% | ? | 2,035,569 | ? | - |
| Over 3 years | 1,151,623 | ? | - | ? | 577,532 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 626,985,706 | ? | 100% | ? | 770,633,448 | ? | 100% |
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB286,829,522,representing 46% of the total prepayments.
6、 Other receivables
??
| ? | Note | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Interest receivable | ? | 215,977,831 | ? | 140,597,317 | ? | 140,597,317 |
| Dividends receivable | ? | - | ? | 3,711,768 | ? | 3,711,768 |
| Others | (1) | 490,193,281 | ? | 2,307,272,817 | ? | 2,309,865,886 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 706,171,112 | ? | 2,451,581,902 | ? | 2,454,174,971 |
(1) Others
(a) The Group’s other receivable by customer type:
?
Customer type
| Customer type | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 603,515 | ? | 12,148 | ? | 12,148 |
| Amounts due from other customers | ? | 498,225,877 | ? | 2,310,194,250 | ? | 2,310,194,250 |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 498,829,392 | ? | 2,310,206,398 | ? | 2,310,206,398 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 8,636,111 | ? | 2,933,581 | ? | 340,512 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 490,193,281 | ? | 2,307,272,817 | ? | 2,309,865,886 |
(b) The Group’s other receivable by currency type:
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 457,159,067 | ? | ? | ? | ? | ? | 2,278,359,260 |
| USD | 3,966,373 | ? | 6.9762 | ? | 27,670,211 | ? | 1,511,739 | ? | 6.8632 | ? | 10,375,364 |
| JPY | 42,000,525 | ? | 0.0641 | ? | 2,692,234 | ? | 35,383,000 | ? | 0.0619 | ? | 2,189,854 |
| Other foreign currencies | ? | ? | ? | ? | 11,307,880 | ? | ? | ? | ? | ? | 19,281,920 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 498,829,392 | ? | ? | ? | ? | ? | 2,310,206,398 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 8,636,111 | ? | ? | ? | ? | ? | 340,512 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 490,193,281 | ? | ? | ? | ? | ? | 2,309,865,886 |
(c) The ageing analysis of the Group’s other receivables is as follows:
??
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 209,994,098 | ? | 2,015,309,595 |
| 1 to 2 years (inclusive) | ? | 25,165,256 | ? | 29,027,513 |
| 2 to 3 years (inclusive) | ? | 14,546,942 | ? | 28,652,382 |
| Over 3 years | ? | 249,123,096 | ? | 237,216,908 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 498,829,392 | ? | 2,310,206,398 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 8,636,111 | ? | 340,512 |
| ? | ? | ? | ? | ? |
| Total | ? | 490,193,281 | ? | 2,309,865,886 |
The ageing is counted starting from the date when other receivables are recognized.
(d) Other receivables by provisioning method
??
| ? | 2019 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 8,636,111 | ? | 2% | ? | 8,636,111 | ? | 100% | ? | - |
| Collective assessment | 490,193,281 | 98% | - | - | 490,193,281 | ||||
| Total | 498,829,392 | ? | 100% | ? | 8,636,111 | ? | 2% | ? | 490,193,281 |
| ? | 2018 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivables that are collectively assessed for impairment based on credit risk characteristics | 2,309,865,886 | ? | 100% | ? | - | ? | - | ? | 2,309,865,886 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individually insignificant but assessed for impairment individually | 340,512 | ? | 0% | ? | 340,512 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,310,206,398 | ? | 100% | ? | 340,512 | ? | 0% | ? | 2,309,865,886 |
(e) Movements of provisions for bad and doubtful debts
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 340,512 | ? | 509,257 |
| Adjustment on initial application of the new financial instrument standards | ? | 2,593,069 | ? | - |
| Balance at the beginning of the year after adjustment | ? | 2,933,581 | ? | 509,257 |
| Charge during the year | ? | 6,251,161 | ? | 1,273,563 |
| Recoveries during the year | ? | 5,440 | ? | - |
| Written-off during the year | ? | 543,191 | ? | 1,442,308 |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 8,636,111 | ? | 340,512 |
(f) The Group’s other receivables categorised by nature
?
Nature
| Nature | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| VAT refunds and export tax rebate | ? | 10,648,330 | ? | 415,687,566 |
| Amount due from equity transfer | ? | 200,000,000 | ? | 200,000,000 |
| Deposits | ? | 178,899,557 | ? | 148,893,918 |
| Wealth management receivables | ? | - | ? | 1,408,094,816 |
| Others | ? | 109,281,505 | ? | 137,530,098 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 498,829,392 | ? | 2,310,206,398 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 8,636,111 | ? | 340,512 |
| ? | ? | ? | ? | ? |
| Total | ? | 490,193,281 | ? | 2,309,865,886 |
(g) 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 was RMB299,820,059, most of which are amount due from equity transfer, deposits and qualityindemnity. No provision is made for bad and doubtful debts after assessment.
7 Inventories
(1) The Group’s inventories by category:
| ? | 2019 | ? | 2018 | ||||||||
| ? | Book value | ? | Provision for impairment of inventories | ? | Carrying amount | ? | Book value | ? | Provision for impairment of inventories | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 4,663,835,151 | ? | 288,351,560 | ? | 4,375,483,591 | ? | 4,350,466,710 | ? | 293,435,033 | ? | 4,057,031,677 |
| Work in progress | 1,750,768,537 | ? | 372,043,796 | ? | 1,378,724,741 | ? | 1,442,498,808 | ? | 150,867,947 | ? | 1,291,630,861 |
| Finished goods | 7,671,273,928 | ? | 1,152,223,633 | ? | 6,519,050,295 | ? | 7,770,574,684 | ? | 1,244,503,744 | ? | 6,526,070,940 |
| Consumables | 122,936,135 | ? | - | ? | 122,936,135 | ? | 113,493,354 | ? | 2,828,660 | ? | 110,664,694 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 14,208,813,751 | ? | 1,812,618,989 | ? | 12,396,194,762 | ? | 13,677,033,556 | ? | 1,691,635,384 | ? | 11,985,398,172 |
As at 31 December 2019, there was no amount of capitalised borrowing cost in the Group’sclosing balance of inventories (2018: nil).
As at 31 December 2019, the Group had no inventory used as collateral (2018: nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
??
| ? | ? | ? | ? | ? | Decrease during the year | ? | ? | ||
| ? | Balance at the beginning of the year | ? | Charge during the year | ? | Reversal | ? | Written-off | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 293,435,033 | ? | 248,988,643 | ? | (139,725,615) | ? | (114,346,501) | ? | 288,351,560 |
| Work in progress | 150,867,947 | ? | 301,956,660 | ? | (67,743,603) | ? | (13,037,208) | ? | 372,043,796 |
| Finished goods | 1,244,503,744 | ? | 2,348,636,152 | ? | (702,933,346) | ? | (1,737,982,917) | ? | 1,152,223,633 |
| Consumables | 2,828,660 | ? | - | ? | (2,828,660) | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,691,635,384 | ? | 2,899,581,455 | ? | (913,231,224) | ? | (1,865,366,626) | ? | 1,812,618,989 |
8 Assets held for sale
2019
| ? | Non-current assets held for sale | |||
| ? | Carrying amount | ? | Fair value | |
| Fixed assets | ? | 144,680,734 | ? | 328,796,100 |
| Intangible assets | ? | 29,230,086 | ? | 55,251,000 |
| ? | ? | ? | ? | ? |
| Total of assets held for sale | ? | 173,910,820 | ? | 384,047,100 |
In March 2018, Suzhou K-Tronics entered into the Recovery Agreement of Land andProperties with Management Committee of Wujiang Economic and TechnologicalDevelopment Zone to sell properties and other attachments located in Wujiang Economicand Technological Development Zone. Suzhou K-Tronics and the Management Committee ofWujiang Economic and Technological Development Zone agreed that the recovery price ofthe subject matter is RMB 384,047,100, which is determined according to the evaluationreport. The expected selling period is 2020 and the agreement has been approved by theresolution of the Board of Directors of the Group. The above non-current assets proposed forsale is presented as a non-current asset held for sale in the financial statements.
9 Other current assets
??
| ? | ? | 31 December 2019 | ? | 1 January 2019 | 31 December 2018 | |
| ? | ? | ? | ? | ? | ? | |
| VAT on tax credits | ? | 5,979,120,265 | ? | 4,841,165,133 | 4,841,165,133 | |
| Input tax to be verified or deducted | ? | 1,984,055,118 | ? | 1,773,794,503 | 1,773,794,503 | |
| Income taxes prepaid | ? | 45,154,225 | ? | 132,824,503 | 132,824,503 | |
| Wealth management products | ? | 1,162,273,445 | ? | 1,113,886,639 | 5,534,413,566 | |
| Others | ? | 126,034,014 | ? | 180,876,074 | 180,876,074 | |
| ? | ? | ? | ? | ? | ? | |
| Total | ? | 9,296,637,067 | ? | 8,042,546,852 | 12,463,073,779 | |
| ? | ||||||
As at 31 December 2019, all of the wealth management products owned by the Group arestructured deposits due within one year, which are measured at amortised cost.
10 Available-for-sale financial assets
(1) Available-for-sale financial assets
| ? | 2018 | ||||
| Item | Book value | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? |
| Available-for-sale debt instruments | 12,866,432 | ? | - | ? | 12,866,432 |
| Available-for-sale equity instruments | ? | ? | ? | ? | ? |
| - Measured at fair value | 528,735,772 | ? | 150,099,655 | ? | 378,636,117 |
| - Measured at cost | 377,015,762 | ? | 34,495,952 | ? | 342,519,810 |
| ? | ? | ? | ? | ? | ? |
| Total | 918,617,966 | ? | 184,595,607 | ? | 734,022,359 |
(2) Available-for-sale financial assets at fair value at the end of 2018:
?
?
| ? | ? | Available-for-sale equity instruments | ? | Available-for-sale debt instruments | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Cost of equity instruments/amortized cost of debt instruments | ? | 555,793,175 | ? | 12,565,172 | ? | 568,358,347 |
| Fair value | ? | 378,636,117 | ? | 12,866,432 | ? | 391,502,549 |
| Accumulated fair value movements in other comprehensive income | ? | (27,057,403) | ? | 301,260 | ? | (26,756,143) |
| Provision for impairment | ? | (150,099,655) | ? | - | ? | (150,099,655) |
(3) Available-for-sale financial assets at cost at the end of 2018:
| ? | Book value | ? | Provision for impairment | ? | ? | ||||||||||||||
| Investee | Balance at the beginning of the year | ? | Increase during the year | ? | Decrease during the year | ? | Translation differences | ? | Balance at the end of the year | ? | Balance at the beginning of the year | ? | Increase during the year | ? | Translation differences | ? | Balance at the end of the year | ? | Percentage of shareholding in investees (%) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Teralane Semiconductor Inc | 11,868,000 | ? | - | ? | - | ? | - | ? | 11,868,000 | ? | - | ? | - | ? | - | ? | - | ? | 7.29% |
| Zhejiang BOE Display Technology Co., Ltd. | 321,256 | ? | - | ? | - | ? | - | ? | 321,256 | ? | - | ? | - | ? | - | ? | - | ? | 7.03% |
| Zhejiang Qiusheng Photoelectric Technology Co., Ltd. | 248,776 | ? | - | ? | - | ? | - | ? | 248,776 | ? | - | ? | - | ? | - | ? | - | ? | 5.09% |
| National Engineering Laboratory of Digital Television (Beijing) Co., Ltd. | 6,250,000 | ? | - | ? | - | ? | - | ? | 6,250,000 | ? | - | ? | - | ? | - | ? | - | ? | 12.50% |
| Meta Company | 32,670,951 | ? | - | ? | - | ? | 1,645,001 | ? | 34,315,952 | ? | - | ? | 33,130,452 | ? | 1,185,500 | ? | 34,315,952 | ? | 5.66% |
| Danhua Capital, L. P. | 24,503,250 | ? | - | ? | - | ? | 1,233,750 | ? | 25,737,000 | ? | - | ? | - | ? | - | ? | - | ? | 5.48% |
| Danhua Capital II, L.P. | 34,304,550 | ? | 26,419,000 | ? | - | ? | 2,761,050 | ? | 63,484,600 | ? | - | ? | - | ? | - | ? | - | ? | 3.29% |
| Kateeva Inc. | 78,051,019 | ? | - | ? | - | ? | 3,929,905 | ? | 81,980,924 | ? | - | ? | - | ? | - | ? | - | ? | 3.00% |
| DEPICT INC. | 13,068,400 | ? | - | ? | - | ? | 658,000 | ? | 13,726,400 | ? | - | ? | - | ? | - | ? | - | ? | 22.20% |
| MOOV INC. | 26,244,971 | ? | - | ? | - | ? | 1,321,446 | ? | 27,566,417 | ? | - | ? | - | ? | - | ? | - | ? | 7.69% |
| ZGLUE INC. | 9,801,289 | ? | - | ? | - | ? | 493,499 | ? | 10,294,788 | ? | - | ? | - | ? | - | ? | - | ? | 6.00% |
| Fabord Ltd. | 910 | ? | - | ? | (910) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | 3,000,000 | ? | - | ? | (3,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Nanosys INC | 49,006,500 | ? | - | ? | - | ? | 2,467,500 | ? | 51,474,000 | ? | - | ? | - | ? | - | ? | - | ? | 3.14% |
| Ceribell INC | 8,494,453 | ? | - | ? | - | ? | 427,699 | ? | 8,922,152 | ? | - | ? | - | ? | - | ? | - | ? | 2.05% |
| Baebies INC | 28,709,230 | ? | - | ? | - | ? | 1,445,523 | ? | 30,154,753 | ? | - | ? | - | ? | - | ? | - | ? | 9.05% |
| Illumina Fund I,L.P. | 5,605,265 | ? | 4,433,785 | ? | - | ? | 451,694 | ? | 10,490,744 | ? | - | ? | - | ? | - | ? | - | ? | 2.14% |
| Others | 180,000 | ? | - | ? | - | ? | - | ? | 180,000 | ? | 180,000 | ? | - | ? | - | ? | 180,000 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 332,328,820 | ? | 30,852,785 | ? | (3,000,910) | ? | 16,835,067 | ? | 377,015,762 | ? | 180,000 | ? | 33,130,452 | ? | 1,185,500 | ? | 34,495,952 | ? | ? |
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Investments in associates | ? | 3,495,896,246 | ? | 2,926,303,858 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 3,495,896,246 | ? | 2,926,303,858 |
| ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | 777,858,312 | ? | 537,136,972 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,718,037,934 | ? | 2,389,166,886 |
(2) Movements of long-term equity investments during the year are as follows:
| Investee | Balance at the beginning of the year | ? | Increase in investments | Decrease in investments | ? | Investment income recognised under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | Translation differences arising from translation of foreign currency financial statements | ? | Balance at the end of the year | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||
| Beijing Nissin Electronics Precision Component Co., Ltd. | 538,489 | ? | - | - | ? | (1,698,667) | ? | - | ? | 1,643,426 | ? | - | - | ? | 483,248 | ||
| Beijing Nittan Electronic Co., Ltd. | 61,733,085 | ? | - | - | ? | 6,075,670 | ? | - | ? | - | ? | (3,000,000) | - | ? | 64,808,755 | ||
| Erdos BOE Energy Investment Co., Ltd. | 907,458,312 | ? | - | - | ? | (110,086) | ? | - | ? | - | ? | - | - | ? | 907,348,226 | ||
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 435,828 | ? | - | - | ? | 227,387 | ? | - | ? | - | ? | - | - | ? | 663,215 | ||
| Beijing Infi-Hailin Venture Investment (Limited Partnership) | 82,336,933 | ? | - | (10,000,000) | ? | (14,927,922) | ? | 16,975,941 | ? | - | ? | - | - | ? | 74,384,952 | ||
| TPV Display Technology (China) Limited | 23,001,359 | ? | - | - | ? | 1,544,305 | ? | - | ? | - | ? | - | - | ? | 24,545,664 | ||
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,455,174,877 | ? | - | (129,089,011) | ? | 268,474,328 | ? | 349,954,655 | ? | - | ? | - | - | ? | 1,944,514,849 | ||
| Beijing Xindongneng Investment Management Co., Ltd. | 5,188,862 | ? | - | - | ? | 2,221,199 | ? | - | ? | - | ? | - | - | ? | 7,410,061 | ||
| Shenzhen Yunyinggu Technology Co., Ltd. | 15,481,506 | ? | - | (10,800,923) | ? | (17,043,172) | ? | - | ? | 25,077,673 | ? | - | - | ? | 12,715,084 | ||
| Beijing Xloong Technologies Co., Ltd | 22,609,211 | ? | - | - | ? | (372,167) | ? | - | ? | - | ? | - | - | ? | 22,237,044 | ||
| Beijing Innovation Industry Investment Co., Ltd | - | ? | 100,000,000 | - | ? | 363,345 | ? | - | ? | - | ? | - | - | ? | 100,363,345 | ||
| Beijing Electric Control Industry Investment Co., Ltd | - | ? | 17,000,000 | - | ? | (158,391) | ? | - | ? | - | ? | - | - | ? | 16,841,609 | ||
| New on Technology Co.Ltd. | 3,185,494 | ? | - | - | ? | (377,351) | ? | - | ? | - | ? | - | (80,537) | ? | 2,727,606 | ||
| Cnoga Medical Co.Ltd. | 343,160,000 | ? | - | - | ? | (40,804,586) | ? | - | ? | - | ? | - | 5,151,489 | ? | 307,506,903 | ||
| Beijing Zhonglianhe Ultra HD ollaborative Technology Center Co., Ltd. | 3,000,000 | ? | - | - | ? | (284,740) | ? | - | ? | - | ? | - | - | ? | 2,715,260 | ||
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | 2,999,902 | ? | - | - | ? | (2,999,902) | ? | - | ? | - | ? | - | - | ? | - | ||
| Shenzhen Jiangcheng Technology Co., Ltd. | - | ? | 6,738,989 | - | ? | (108,564) | ? | - | ? | - | ? | - | - | ? | 6,630,425 | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||
| Sub-total | 2,926,303,858 | ? | 123,738,989 | (149,889,934) | ? | 200,020,686 | ? | 366,930,596 | ? | 26,721,099 | ? | (3,000,000) | 5,070,952 | ? | 3,495,896,246 | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||
| Less: Provision for impairment | 537,136,972 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 777,858,312 | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||
| Total | 2,389,166,886 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 2,718,037,934 |
As at 31 December 2019, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. suffered continuous loss and the Group does not have an obligationto assume additional losses. Therefore, the Company discontinues recognising its share of further losses after the carrying amount of long-termequity investment is reduced to zero. As at 31 December 2019, the accumulated unrecognised investment losses was RMB 17,817,673 (2018:
nil).
12 Investments in other equity instruments
| Item | 31 December 2019 | ? | 1 January 2019 |
| ? | ? | ? | ? |
| Listed equity instruments investment | ? | ? | ? |
| - TPV Technology Limited* | - | ? | 25,613,279 |
| - Beijing Electronic City High Tech Group Co., Ltd | 72,585,692 | ? | 83,995,943 |
| - Bank of Chongqing Co., Ltd. | 105,407,103 | ? | 98,705,067 |
| - CSC Securities Co., Ltd | 68,545,920 | ? | 44,412,575 |
| - New century medical Holding Co., Ltd | 53,586,259 | ? | 125,909,253 |
| Unlisted equity instruments investment | ? | ? | ? |
| - Teralane Semiconductor Inc | - | ? | 11,868,000 |
| - Zhejiang BOE Display Technology Co., Ltd. | 321,256 | ? | 321,256 |
| - Zhejiang Qiusheng Photoelectric Technology Co., Ltd. | 248,776 | ? | 248,776 |
| - National Engineering Laboratory of Digital Television (Beijing) Co., Ltd. | 6,250,000 | ? | 6,250,000 |
| - Meta Company | - | ? | - |
| - Danhua Capital, L. P. | 26,160,750 | ? | 25,737,000 |
| - Danhua Capital II, L.P. | 64,529,850 | ? | 63,484,600 |
| - Kateeva Inc. | 83,330,709 | ? | 81,980,924 |
| - DEPICT INC. | - | ? | 13,726,400 |
| - MOOV INC. | 28,020,288 | ? | 27,566,417 |
| - ZGLUE INC. | 10,464,288 | ? | 10,294,788 |
| - Nanosys INC | 52,321,500 | ? | 51,474,000 |
| - Ceribell INC | 9,069,052 | ? | 8,922,152 |
| - Baebies INC | 30,651,239 | ? | 30,154,753 |
| - Illumina Fund I,L.P. | 17,181,203 | ? | 10,490,744 |
| - ACQIS Technology, Inc. | 1,395,242 | ? | - |
| - KA IMAGING INC. | 2,007,520 | ? | - |
| - Beijing Dongfang Electronic Industry Co., Ltd | - | ? | - |
| ? | ? | ? | ? |
| Total | 632,076,647 | ? | 721,155,927 |
Note*: TPV Technology Limited delisted on 14 November 2019, paid most of the
shareholders at SEHK at 3.86 HK dollar per share except several shareholders. TheCompany received Bank acceptance bills of 94,030,377 HK dollar in November 2019.
(1) Investments in other equity instruments:
| Item | Reason for being designated at fair value through other comprehensive income | ? | Dividend income recognised for the year | ? | Accumulated gains or losses recognised in other comprehensive income (“-” for losses) | ? | Amount transferred from other comprehensive income to retained earnings | ? | Reason for transferring from other comprehensive income to retained earnings |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Listed equity instruments investment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - TPV Technology Limited | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 471,354 | ? | - | ? | 50,430,448 | ? | Disposal |
| - Beijing Electronic City High Tech Group Co., Ltd | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 1,883,379 | ? | (17,574,736) | ? | - | ? | Not applicable |
| - Bank of Chongqing Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 3,881,382 | ? | (14,677,272) | ? | - | ? | Not applicable |
| - CSC Securities Co., Ltd | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 2,055,835 | ? | (1,495,444) | ? | - | ? | Not applicable |
| - New century medical Holding Co., Ltd | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (87,262,590) | ? | - | ? | Not applicable |
| Unlisted equity instruments investment | ? | ? | ? | ||||||
| - Teralane Semiconductor Inc | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (11,868,000) | ? | - | ? | Not applicable |
| - Zhejiang BOE Display Technology Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - Zhejiang Qiusheng Photoelectric Technology Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - National Engineering Laboratory of Digital Television (Beijing) Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - Meta Company | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (34,684,948) | ? | - | ? | Not applicable |
| - Danhua Capital, L. P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 1,692,255 | ? | 147,000 | ? | - | ? | Not applicable |
| - Danhua Capital II, L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 1,989,674 | ? | - | ? | Not applicable |
| - Kateeva Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 468,243 | ? | - | ? | Not applicable |
| - DEPICT INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (13,874,000) | ? | - | ? | Not applicable |
| - MOOV INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 157,449 | ? | - | ? | Not applicable |
| - ZGLUE INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 58,800 | ? | - | ? | Not applicable |
| - Nanosys INC | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 1,972,500 | ? | - | ? | Not applicable |
| - Ceribell INC | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 406,770 | ? | - | ? | Not applicable |
| - Baebies INC | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 1,527,685 | ? | - | ? | Not applicable |
| - Illumina Fund I,L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 577,382 | ? | - | ? | Not applicable |
| - ACQIS Technology, Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (168,720) | ? | - | ? | Not applicable |
| - KA IMAGING INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - Beijing Dongfang Electronic Industry Co., Ltd | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (180,000) | ? | - | ? | Not applicable |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | 9,984,205 | ? | (174,480,207) | ? | 50,430,448 | ? | ? |
13 Investment properties
| ? | ? | Land use rights | ? | Buildings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 687,434,677 | ? | 1,012,158,845 | ? | 1,699,593,522 |
| Additions during the year | ? | - | ? | 3,657,282 | ? | 3,657,282 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 687,434,677 | ? | 1,015,816,127 | ? | 1,703,250,804 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation or amortization | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 127,149,702 | ? | 288,576,169 | ? | 415,725,871 |
| Charge for the year | ? | 13,622,701 | ? | 32,659,382 | ? | 46,282,083 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 140,772,403 | ? | 321,235,551 | ? | 462,007,954 |
| ? | ||||||
| ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? |
| At the end of the year | ? | 546,662,274 | ? | 694,580,576 | ? | 1,241,242,850 |
| ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | ? | 560,284,975 | ? | 723,582,676 | ? | 1,283,867,651 |
14 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 | 36,749,694,289 | ? | 152,959,161,443 | ? | 3,253,525,318 | ? | 192,962,381,050 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchase | 153,590,639 | ? | 797,702,827 | ? | 586,734,795 | ? | 1,538,028,261 |
| - Transfer from construction in progress | 2,560,907,495 | ? | 11,348,612,986 | ? | 1,271,722,362 | ? | 15,181,242,843 |
| Disposals or written-off during the year | (18,248,457) | ? | (354,692,916) | ? | (37,340,323) | ? | (410,281,696) |
| Transfer to assets held for sale during the year | (286,546,396) | ? | (19,062,161) | ? | (19,776,266) | ? | (325,384,823) |
| Other decreases | (94,115,518) | ? | (233,187,518) | ? | - | ? | (327,303,036) |
| Translation differences | 1,064,852 | ? | 16,368,778 | ? | 196,506 | ? | 17,630,136 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 39,066,346,904 | ? | 164,514,903,439 | ? | 5,055,062,392 | ? | 208,636,312,735 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 4,287,202,025 | ? | 58,402,866,713 | ? | 1,461,718,975 | ? | 64,151,787,713 |
| Charge during the year | 1,005,246,569 | ? | 16,553,957,538 | ? | 864,384,030 | ? | 18,423,588,137 |
| Disposals or written-off during the year | (4,695,117) | ? | (307,561,970) | ? | (36,873,915) | ? | (349,131,002) |
| Transfer to assets held for sale during the year | (164,215,666) | ? | (5,640,910) | ? | (10,847,513) | ? | (180,704,089) |
| Translation differences | 517,901 | ? | 12,159,063 | ? | 157,104 | ? | 12,834,068 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 5,124,055,712 | ? | 74,655,780,434 | ? | 2,278,538,681 | ? | 82,058,374,827 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 1,085,094 | ? | 644,638,064 | ? | 7,139,184 | ? | 652,862,342 |
| Charge during the year | - | ? | 160,307,953 | ? | 37,081 | ? | 160,345,034 |
| Disposals or written-off during the year | (11,713) | ? | (20,109,323) | ? | (1,390,370) | ? | (21,511,406) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,073,381 | ? | 784,836,694 | ? | 5,785,895 | ? | 791,695,970 |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 33,941,217,811 | ? | 89,074,286,311 | ? | 2,770,737,816 | ? | 125,786,241,938 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 32,461,407,170 | ? | 93,911,656,666 | ? | 1,784,667,159 | ? | 128,157,730,995 |
(2) Fixed assets acquired under finance leases
| ? | 2019 | ? | 2018 | ||||||||||||
| Item | Original book value | ? | Accumulated depreciation | ? | Provision for impairment | ? | Carrying amount | ? | Original book value | ? | Accumulated depreciation | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Plant and buildings | 11,291,665 | ? | 4,610,694 | ? | - | ? | 6,680,971 | ? | 11,291,665 | ? | 4,357,005 | ? | -? | ? | 6,934,660 |
| Machinery and equipment | 111,358,145 | ? | 10,816,754 | ? | - | ? | 100,541,391 | ? | 111,358,145 | ? | 4,815,787 | ? | - | ? | 106,542,358 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 122,649,810 | ? | 15,427,448 | ? | - | ? | 107,222,362 | ? | 122,649,810 | ? | 9,172,792 | ? | - | ? | 113,477,018 |
The Group’s fixed assets under finance leases represented a youth apartment under financelease for the Company, which is used for the purposes of the staff dormitory and machineryand equipment under finance leases.
(3) Fixed assets pending certificates of ownership
On 31 December 2019, fixed assets pending certificates of ownership totalled RMB8,208,580,798 and certificates of ownership is still being processed.
15、 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
??
| ? | 2019 | ? | 2018 | ||||||||
| Item | Book value | ? | Provision for impairment | ? | Carrying amount | ? | Book value | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| The 6th generation AMOLED project - Mianyang | 34,753,609,842 | ? | - | ? | 34,753,609,842 | ? | 23,065,639,272 | ? | - | ? | 23,065,639,272 |
| The 6th generation LTPS / AMOLED project - Chengdu | 19,490,899,526 | ? | - | ? | 19,490,899,526 | ? | 15,759,483,392 | ? | - | ? | 15,759,483,392 |
| The 10.5th generation TFT-LCD project - Hefei | 622,207,613 | ? | - | ? | 622,207,613 | ? | 5,599,769,733 | ? | - | ? | 5,599,769,733 |
| The 10.5th generation TFT-LCD project - Wuhan | 24,749,508,699 | ? | - | ? | 24,749,508,699 | ? | 5,226,487,285 | ? | - | ? | 5,226,487,285 |
| Others | 7,760,556,847 | ? | - | ? | 7,760,556,847 | ? | 6,771,975,205 | ? | - | ? | 6,771,975,205 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 87,376,782,527 | ? | - | ? | 87,376,782,527 | ? | 56,423,354,887 | ? | - | ? | 56,423,354,887 |
(2) Movements of major construction projects in progress during the year
| Item | Budget | ? | Balance at the beginning of the year | ? | Increase during the year | ? | Transfers to fixed assets | ? | Transfer to intangible assets | ? | 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 2019 | ? | Interest rate for capitalisation in 2019 (%) | ? | Sources of funding |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| The 6th generation AMOLED project - Mianyang | 44,500,000,000 | ? | 23,065,639,272 | ? | 11,849,171,781 | ? | (161,201,211) | ? | - | ? | 34,753,609,842 | ? | 78.90% | ? | 613,132,029 | ? | 556,855,158 | ? | 4.51% | ? | Self-raised funds and borrowings |
| The 6th generation LTPS / AMOLED project - Chengdu | 44,800,000,000 | ? | 15,759,483,392 | ? | 5,534,324,202 | ? | (1,800,721,546) | ? | (2,186,522) | ? | 19,490,899,526 | ? | 86.07% | ? | 837,160,130 | ? | 454,186,034 | ? | 4.84% | ? | Self-raised funds and borrowings |
| The 10.5th generation TFT-LCD project - Hefei | 42,937,000,000 | ? | 5,599,769,733 | ? | 1,098,716,081 | ? | (6,076,083,329) | ? | (194,872) | ? | 622,207,613 | ? | 86.17% | ? | - | ? | - | ? | - | ? | Self-raised funds and borrowings |
| The 10.5th generation TFT-LCD project - Wuhan | 44,000,000,000 | ? | 5,226,487,285 | ? | 20,161,031,012 | ? | (638,009,598) | ? | - | ? | 24,749,508,699 | ? | 58.63% | ? | 93,594,026 | ? | 93,594,026 | ? | 3.73% | ? | Self-raised funds and borrowings |
16 Intangible assets
(1) Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | Others | Total | ||
| ? | ? | ? | ? | ? | ? | ? | |||
| Original book value | ? | ? | ? | ? | ? | ? | |||
| Balance at the beginning of the year | 2,685,702,901 | ? | 3,290,629,308 | 902,371,299 | 1,226,628,617 | 8,105,332,125 | |||
| Additions during the year | ? | ? | ? | ? | ? | ? | |||
| - Purchase | 1,443,397,986 | ? | 428,922,849 | 25,771,138 | 79,110,712 | 1,977,202,685 | |||
| - Transfer from construction in progress | - | ? | - | 115,360,282 | - | 115,360,282 | |||
| Disposals during the year | - | ? | - | (892,159) | - | (892,159) | |||
| Transfers to assets held for sale during the year | (37,857,218) | - | - | - | (37,857,218) | ||||
| Other decreases | - | ? | (997,041) | - | - | (997,041) | |||
| ? | ? | ? | ? | ? | ? | ? | |||
| Balance at the end of the year | 4,091,243,669 | ? | 3,718,555,116 | 1,042,610,560 | 1,305,739,329 | 10,158,148,674 | |||
| ? | ? | ? | ? | ? | ? | ? | |||
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | |||
| Balance at the beginning of the year | 228,473,302 | ? | 1,285,634,672 | 535,554,303 | 117,990,454 | 2,167,652,731 | |||
| Charge during the year | 83,860,043 | ? | 316,063,422 | 117,440,369 | 66,138,252 | 583,502,086 | |||
| Disposals during the year | - | ? | - | (795,840) | - | (795,840) | |||
| Transfers to assets held for sale during the year | (8,627,132) | ? | - | - | - | (8,627,132) | |||
| ? | ? | ? | ? | ? | ? | ? | |||
| Balance at the end of the year | 303,706,213 | ? | 1,601,698,094 | 652,198,832 | 184,128,706 | 2,741,731,845 | |||
| ? | ? | ? | ? | ? | ? | ? | |||
| ? | ? | ? | ? | ? | ? | ? | |||
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ||
| At the end of the year | 3,787,537,456 | ? | 2,116,857,022 | ? | 390,411,728 | 1,121,610,623 | 7,416,416,829 | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ||
| At the beginning of the year | 2,457,229,599 | ? | 2,004,994,636 | ? | 366,816,996 | ? | 1,108,638,163 | 5,937,679,394 |
(2) Land use rights pending certificates of ownership
As at 31 December 2019, the company has land use rights pending certificates of ownershipRMB 614,842,056 in total.
17 Goodwill
(1) Changes in goodwill
| Name of investee | Balance at the beginning of the year | ? | Increase during the year | ? | Balance at the end of the year | |
| ? | ? | ? | ? | ? | ? | ? |
| Book value | ? | ? | ? | ? | ? | ? |
| Beijing Yinghe Century Co., Ltd. | ? | 42,940,434 | ? | - | ? | 42,940,434 |
| K-Tronics (Suzhou) Technology Co., Ltd. | ? | 8,562,464 | ? | - | ? | 8,562,464 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | ? | 4,423,876 | ? | - | ? | 4,423,876 |
| BOE Healthcare Investment & Management Co., Ltd. | ? | 146,460,790 | ? | - | ? | 146,460,790 |
| SES Imagotag SA Co.Ltd. | 706,406,821 | ? | - | ? | 706,406,821 | |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 908,794,385 | ? | - | ? | 908,794,385 |
| ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | 4,423,876 | ? | 196,766,653 | ? | 201,190,529 |
| ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | 904,370,509 | ? | (196,766,653) | ? | 707,603,856 |
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd. (“Yinghe Century”), Suzhou K-Tronics, BOE Healthcare Investment & Management Co., Ltd. (“Health Investment”) and SESImagotag SA Co.Ltd. is determined based on the present value of expected future cashflows. When predicting the present value of cash flow, the cash flow in the next 5 years isdetermined based on the financial budget approved by the management. The cash flow inthe years after the 5-year financial budget will remain stable. The pre-tax discount rate isdetermined with reference to comparable companies and related capital structures.
On 31 December 2019, as the present value of SES Imagotag SA Co.Ltd.’s future cash flowis lower than the carrying amount of the asset groups, the Group made impairment provisionof RMB 196,766,653 for goodwill in 2019.
18 Long-term deferred expenses
| ? | Balance at the beginning of the year | ? | Increase during the year | ? | Decrease during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Payment for public facilities construction and use | 98,072,789 | ? | - | ? | (15,370,223) | ? | 82,702,566 |
| Cost of operating lease assets improvement | 20,351,453 | ? | 26,109,654 | ? | (18,394,852) | ? | 28,066,255 |
| Others | 242,216,611 | ? | 90,153,351 | ? | (97,714,374) | ? | 234,655,588 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 360,640,853 | ? | 116,263,005 | ? | (131,479,449) | ? | 345,424,409 |
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
??
| ? | 2019 | ? | 2018 | ||||
| Item | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment of assets | 131,848,265 | ? | 29,587,380 | ? | 391,727,136 | ? | 69,662,802 |
| Changes in fair value of other equity instruments | 135,444,338 | ? | 20,316,651 | ? | - | ? | - |
| Depreciation of fixed assets | 147,798,525 | ? | 25,764,520 | ? | 125,811,735 | ? | 22,699,045 |
| Assessed value added by investing real estate in subsidiaries | 136,556,956 | ? | 34,139,239 | ? | 142,110,808 | ? | 35,527,702 |
| Accumulated losses | 361,764,556 | ? | 111,182,956 | ? | 230,110,593 | ? | 67,447,589 |
| Advance payments received | - | ? | - | ? | 290,000,000 | ? | 43,500,000 |
| Others | 214,882,405 | ? | 40,237,079 | ? | 219,548,492 | ? | 42,572,983 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 1,128,295,045 | ? | 261,227,825 | ? | 1,399,308,764 | ? | 281,410,121 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (13,074,064) | ? | ? | ? | (29,036,499) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 248,153,761 | ? | ? | ? | 252,373,622 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Revaluation due to business combinations involving entities not under common control | (2,594,143,798) | ? | (772,597,483) | ? | (2,777,250,385) | ? | (835,036,150) |
| Depreciation of fixed assets | (4,178,779,443) | ? | (643,417,497) | ? | (3,248,856,623) | ? | (517,769,740) |
| Changes in fair value of available-for-sale financial assets | - | ? | - | ? | (53,218,430) | ? | (8,058,902) |
| Long-term equity investments | (120,141,687) | ? | (18,021,253) | ? | (360,863,027) | ? | (54,129,454) |
| Interest on debentures | - | ? | - | ? | (71,525,943) | ? | (10,728,891) |
| Others | (161,910,113) | ? | (30,863,188) | ? | (223,118,577) | ? | (22,686,907) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (7,054,975,041) | ? | (1,464,899,421) | ? | (6,734,832,985) | ? | (1,448,410,044) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 13,074,064 | ? | ? | ? | 29,036,499 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (1,451,825,357) | ? | ? | ? | (1,419,373,545) |
(2) Details of unrecognised deferred tax assets
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Deductible temporary differences | ? | 9,708,406,691 | ? | 9,073,884,112 |
| Deductible losses | ? | 15,354,248,296 | ? | 6,752,930,780 |
| ? | ? | ? | ? | ? |
| Total | ? | 25,062,654,987 | ? | 15,826,814,892 |
As at 31 December 2019, the deductible temporary differences are mainly provisions for thesubsidiaries’ impairment of assets. Due to the uncertainty that there will be sufficient taxableincome to cover these deductible differences in future periods, the deferred income taxassets were not recognized in consideration of prudence.
(3) Expiration of deductible tax losses for unrecognized deferred tax assets:
?Year
| Year | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| 2019 | ? | -? | ? | 38,076,038 |
| 2020 | ? | 58,901,625 | ? | 59,149,932 |
| 2021 | ? | 80,449,618 | ? | 52,190,671 |
| 2022 | ? | 435,146,446 | ? | 528,642,251 |
| 2023 | ? | 605,118,016 | ? | 669,677,506 |
| 2024 | ? | 1,028,882,595 | ? | 125,649,689 |
| 2025 | ? | 494,894,618 | ? | 512,243,532 |
| 2026 | ? | 227,711,720 | ? | 233,283,462 |
| 2027 | ? | 133,673,301 | ? | 133,672,001 |
| 2028 | ? | 4,215,818,107 | ? | 4,296,683,816 |
| 2029 | ? | 7,359,029,807 | ? | -? |
| Others | (a) | 714,622,443 | ? | 103,661,882 |
| ? | ? | ? | ? | ? |
| Total | ? | 15,354,248,296 | ? | 6,752,930,780 |
(a) According to the applicable local tax laws, Loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
20 Other non-current assets
| ? | Note? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Deferred VAT for imported equipment | ? | 5,027,130,119 | ? | 3,187,164,914 |
| VAT on tax credits | ? | 2,482,410,097 | ? | 1,488,605,413 |
| Prepayments for fixed assets | ? | 1,159,943,991 | ? | 2,896,176,554 |
| Gains from transfer of exploration right | (a)? | 512,802,600 | ? | - |
| Prepayments for construction | ? | 43,162,425 | ? | 155,970,966 |
| Others | ? | 266,132,327 | ? | 165,084,206 |
| ? | ? | ? | ? | ? |
| Total | ? | 9,491,581,559 | ? | 7,893,002,053 |
(a)? On 31 December 2019, gains from transfer of exploration right are amount for thetransfer of exploration paid by the Group through Erdos BOE Energy Investment Co.,Ltd. to Ministry of Natural Resources of Inner Mongolia.
21 Short-term loans
??
| ? | 2019 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited/ collateralised guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 1,706,000,000 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 3,570,500,000 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 5,276,500,000 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 75,000,000 | ? | 6.9762 | ? | 523,215,000 | ? | Pledged |
| - USD | 74,983,524 | ? | 6.9762 | ? | 523,100,057 | ? | Credited |
| - JPY | 685,049,220 | ? | 0.0641 | ? | 43,902,064 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 1,090,217,121 | ? | ? |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 6,366,717,121 | ? | ? |
| ? | 2018 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited/ collateralised guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 110,033,961 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 1,399,800,000 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 1,509,833,961 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 314,573,510 | ? | 6.8632 | ? | 2,158,980,914 | ? | Pledged |
| - USD | 47,369,984 | ? | 6.8632 | ? | 325,109,671 | ? | Collateralised |
| - USD | 139,129,343 | ? | 6.8632 | ? | 954,872,507 | ? | Credited |
| - JPY | 313,000,000 | ? | 0.0619 | ? | 19,370,631 | ? | Collateralised |
| - JPY | 7,784,950,000 | ? | 0.0619 | ? | 481,787,201 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 3,940,120,924 | ? | ? |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 5,449,954,885 | ? | ? |
The interest rate of short-term loans for the Group ranged from 0.40% to 4.35% in 2019(2018: 1.28% to 4.95%).
As at 31 December 2019, no short-term loan was past due (2018: nil).
22 Bills payable
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 1,812,309,507 | ? | 326,575,254 |
| Commercial acceptance bills | ? | 216,608,473 | ? | 264,534,018 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,028,917,980 | ? | 591,109,272 |
There is no due but unpaid bill payable at the end of the year. The above bills are all duewithin one year.
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Payables to related parties | ? | 77,847,042 | ? | 30,361,810 |
| Payables to third parties | ? | 21,105,720,511 | ? | 22,183,594,806 |
| ? | ? | ? | ? | ? |
| Total | ? | 21,183,567,553 | ? | 22,213,956,616 |
(2) The Group’s accounts payable by currency are as follows:
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 14,353,247,507 | ? | ? | ? | ? | ? | 14,305,998,594 |
| - USD | 869,901,566 | ? | 6.9762 | ? | 6,068,607,305 | ? | 959,572,576 | ? | 6.8632 | ? | 6,585,738,505 |
| - JPY | 10,667,212,793 | ? | 0.0641 | ? | 683,768,340 | ? | 13,279,275,766 | ? | 0.0619 | ? | 821,987,170 |
| - Other foreign currencies | ? | ? | ? | ? | 77,944,401 | ? | ? | ? | ? | ? | 500,232,347 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 21,183,567,553 | ? | ? | ? | ? | ? | 22,213,956,616 |
As at 31 December 2019, the Group had no individually significant accounts payable ageingmore than one year.
24 Advance payments received
?
Item
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Advances from related parties | ? | 60,990 | ? | 1,111 |
| Advances from third parties | ? | 1,260,671,795 | ? | 1,218,933,632 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,260,732,785 | ? | 1,218,934,743 |
As at 31 December 2019, the Group’s significant advance payments received with ageing ofmore than one year were RMB 122,565,830, which were mainly advances for research anddevelopment.
25 Employee benefits payable
(1) Employee benefits payable:
| ? | Note | Balance at 1 January 2019 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,175,807,665 | ? | 11,808,187,563 | ? | (11,666,042,336) | ? | 2,317,952,892 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 34,353,845 | ? | 892,704,459 | ? | (896,248,589) | ? | 30,809,715 |
| Termination benefits | ? | 14,769,661 | ? | 21,224,469 | ? | (11,011,283) | ? | 24,982,847 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,224,931,171 | ? | 12,722,116,491 | ? | (12,573,302,208) | ? | 2,373,745,454 |
??
| ? | Note | Balance at 1 January 2018 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,167,235,414 | ? | 10,681,611,152 | ? | (10,673,038,901) | ? | 2,175,807,665 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 34,854,644 | ? | 860,558,928 | ? | (861,059,727) | ? | 34,353,845 |
| Termination benefits | ? | 14,976,886 | ? | 6,091,402 | ? | (6,298,627) | ? | 14,769,661 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,217,066,944 | ? | 11,548,261,482 | ? | (11,540,397,255) | ? | 2,224,931,171 |
(2) Short-term employee benefits
??
| ? | Balance at 1 January 2019 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 1,817,946,511 | ? | 9,760,123,875 | ? | (9,693,967,582) | ? | 1,884,102,804 |
| Staff welfare | - | ? | 726,894,238 | ? | (726,894,238) | ? | - |
| Social insurance | 31,310,324 | ? | 506,406,607 | ? | (505,393,082) | ? | 32,323,849 |
| Medical insurance | 27,150,184 | ? | 458,152,049 | ? | (456,765,159) | ? | 28,537,074 |
| Work-related injury insurance | 2,048,914 | ? | 24,547,049 | ? | (25,003,774) | ? | 1,592,189 |
| Maternity insurance | 2,111,226 | ? | 23,707,509 | ? | (23,624,149) | ? | 2,194,586 |
| Housing fund | 22,081,660 | ? | 534,751,562 | ? | (529,329,478) | ? | 27,503,744 |
| Labour union fee, staff and workers’ education fee | 274,477,650 | ? | 258,158,151 | ? | (187,489,314) | ? | 345,146,487 |
| Staff bonus and welfare fund | 7,282,591 | ? | - | ? | - | ? | 7,282,591 |
| Other short-term employee benefits | 22,708,929 | ? | 21,853,130 | ? | (22,968,642) | ? | 21,593,417 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,175,807,665 | ? | 11,808,187,563 | ? | (11,666,042,336) | ? | 2,317,952,892 |
??
| ? | Balance at 1 January 2018 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 1,840,923,550 | ? | 8,737,680,189 | ? | (8,760,657,228) | ? | 1,817,946,511 |
| Staff welfare | - | ? | 776,550,030 | ? | (776,550,030) | ? | - |
| Social insurance | 33,561,796 | ? | 436,106,436 | ? | (438,357,908) | ? | 31,310,324 |
| Medical insurance | 30,110,821 | ? | 384,231,011 | ? | (387,191,648) | ? | 27,150,184 |
| Work-related injury insurance | 1,419,661 | ? | 31,115,109 | ? | (30,485,856) | ? | 2,048,914 |
| Maternity insurance | 2,031,314 | ? | 20,760,316 | ? | (20,680,404) | ? | 2,111,226 |
| Housing fund | 17,201,305 | ? | 430,417,142 | ? | (425,536,787) | ? | 22,081,660 |
| Labour union fee, staff and workers’ education fee | 246,372,990 | ? | 242,263,166 | ? | (214,158,506) | ? | 274,477,650 |
| Staff bonus and welfare fund | 7,282,591 | ? | - | ? | - | ? | 7,282,591 |
| Other short-term employee benefits | 21,893,182 | ? | 58,594,189 | ? | (57,778,442) | ? | 22,708,929 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,167,235,414 | ? | 10,681,611,152 | ? | (10,673,038,901) | ? | 2,175,807,665 |
(3) Post-employment benefits - defined contribution plans
| ? | Balance at 1 January 2019 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 29,206,273 | ? | 835,731,675 | ? | (838,665,990) | ? | 26,271,958 |
| Unemployment insurance | 964,893 | ? | 30,896,288 | ? | (30,789,104) | ? | 1,072,077 |
| Annuity | 4,182,679 | ? | 26,076,496 | ? | (26,793,495) | ? | 3,465,680 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 34,353,845 | ? | 892,704,459 | ? | (896,248,589) | ? | 30,809,715 |
??
| ? | Balance at 1 January 2018 | ? | Increase during the year | ? | decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 28,831,475 | ? | 815,071,236 | ? | (814,696,438) | ? | 29,206,273 |
| Unemployment insurance | 1,155,250 | ? | 25,252,494 | ? | (25,442,851) | ? | 964,893 |
| Annuity | 4,867,919 | ? | 20,235,198 | ? | (20,920,438) | ? | 4,182,679 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 34,854,644 | ? | 860,558,928 | ? | (861,059,727) | ? | 34,353,845 |
26 Taxes payable
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Value-added tax | ? | 104,968,721 | ? | 112,292,699 |
| Corporate income tax | ? | 225,781,442 | ? | 387,053,187 |
| Individual income tax | ? | 46,299,098 | ? | 39,659,862 |
| City maintenance and construction tax | ? | 159,162,466 | ? | 205,222,860 |
| Education surcharges and local education surcharges | ? | 114,515,524 | ? | 148,544,558 |
| Others | ? | 80,268,878 | ? | 77,335,132 |
| ? | ? | ? | ? | ? |
| Total | ? | 730,996,129 | ? | 970,108,298 |
27 Other payables
??
| ? | Note | 31 December 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | 721,325,540 | ? | 1,016,761,921 |
| Dividends payable | 14,568,242 | ? | 23,648,778 | |
| Others | (1) | 23,834,695,828 | ? | 21,916,569,129 |
| ? | ? | ? | ? | ? |
| Total | ? | 24,570,589,610 | ? | 22,956,979,828 |
(1) Others
(a) The Group’s other payables by category are as follows:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Projects and equipment | ? | 19,265,984,958 | ? | 18,042,357,713 |
| Deferred VAT for imported equipment | ? | 2,277,269,457 | ? | 1,400,000,000 |
| Accrued water and electricity charges and freight | ? | 475,398,269 | ? | 606,071,394 |
| Deposits | ? | 565,971,653 | ? | 440,792,988 |
| External agency fee | ? | 95,525,591 | ? | 53,393,714 |
| Others | ? | 1,154,545,900 | ? | 1,373,953,320 |
| ? | ? | ? | ? | ? |
| Total | ? | 23,834,695,828 | ? | 21,916,569,129 |
The Group’s significant other payables aged over one year are payables of projectsand equipment.
(b) The Group’s other payables by currency are as follows:
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 14,900,017,469 | ? | ? | ? | ? | ? | 15,064,792,480 |
| USD | 939,445,424 | ? | 6.9762 | ? | 6,553,759,167 | ? | 724,117,103 | ? | 6.8632 | ? | 4,969,760,500 |
| JPY | 36,516,333,058 | ? | 0.0641 | ? | 2,340,696,949 | ? | 29,183,294,045 | ? | 0.0619 | ? | 1,806,445,901 |
| Other foreign currencies | ? | ? | ? | ? | 40,222,243 | ? | ? | ? | ? | ? | 75,570,248 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 23,834,695,828 | ? | ? | ? | ? | ? | 21,916,569,129 |
28 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 and long-term payables due within one year.
??
| ? | 2019 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited /collateralised guaranteed /pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 3,548,760,000 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | 5,660,431,884 | ? | Credited |
| - RMB | ? | ? | ? | ? | 27,187,500 | ? | Pledged |
| - USD | 1,192,400,000 | ? | 6.9762 | ? | 8,318,420,880 | ? | Collateralised |
| - EUR | 144,950,000 | ? | 7.8155 | ? | 1,132,856,725 | ? | Pledged |
| - EUR | 415,746 | ? | 7.8155 | ? | 3,249,263 | ? | Credited |
| Sub-total | 18,690,906,252 | ||||||
| Long-term payables | ? | ? | ? | ? | 158,374,767 | ? | Collateralised |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 18,849,281,019 | ? | ? |
| ? | 2018 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited /collateralised guaranteed /pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 37,743,750 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 1,702,180,000 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | 990,000,000 | ? | Credited |
| - USD | 378,624,409 | ? | 6.8632 | ? | 2,598,575,044 | ? | Collateralised |
| - EUR | 3,694,262 | ? | 7.8473 | ? | 28,989,985 | ? | Credited |
| - EUR | 3,950,000 | ? | 7.8473 | ? | 30,996,836 | ? | Pledged |
| Sub-total | 5,388,485,615 | ||||||
| Long-term payables | ? | ? | ? | ? | 209,077,589 | ? | Collateralised |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 5,597,563,204 | ? | ? |
The interest rate of RMB long-term loans due within one year for the Group ranged from 0%to 5.64% in 2019 (2018: from 0% to 5.88%).
29 Other current liabilities
The other current liabilities of the Group were warranty provision. The warranty provisionmainly relates 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.
30 Long-term loans
??
| ? | 2019 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited /collateralised guaranteed /pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 590,727,344 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 45,290,913,200 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | 760,000,000 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | 38,988,142,361 | ? | Credited |
| - USD | 5,603,270,000 | ? | 6.9762 | ? | 39,089,532,174 | ? | Collateralised |
| - EUR | 3,721,275 | ? | 7.8155 | ? | 29,083,625 | ? | Credited |
| - EUR | 214,075,000 | ? | 7.8155 | ? | 1,673,103,163 | ? | Pledged |
| Less: Long-term loans due within one year | ? | ? | ? | ? | 18,690,906,252 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 107,730,595,615 | ? | ? |
??
| ? | 2018 | ||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Credited /collateralised guaranteed /pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 640,180,000 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 32,190,024,533 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | 660,000,000 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | 27,697,000,000 | ? | Credited |
| - USD | 5,422,274,409 | ? | 6.8632 | ? | 37,214,153,724 | ? | Collateralised |
| - EUR | 7,172,652 | ? | 7.8473 | ? | 56,285,953 | ? | Credited |
| - EUR | 218,025,000 | ? | 7.8473 | ? | 1,710,919,269 | ? | Pledged |
| Less: Long-term loans due within one year | ? | ? | ? | ? | 5,388,485,615 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 94,780,077,864 | ? | ? |
The interest rate of RMB long-term loans for the Group ranged from 0% to 5.64% in 2019(2018: from 0% to 5.88%).
31 Debentures payable
(1) Debentures payable
| Item | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Debentures payable | 387,878,384 | ? | 10,288,666,233 |
| Less: Debentures payable due within one year | - | ? | - |
| ? | ? | ? | ? |
| Total | 387,878,384 | ? | 10,288,666,233 |
(2) The movements of debentures payable:
| Debenture | Par value | ? | Issuance date | ? | Maturity period | ? | Issuance amount | ? | Balance at the beginning of the year | ? | Increase during the year | ? | Interest at par value | ? | Amortisation of discounts or premium | ? | Translation differences | ? | Repayment during the period | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 16BOE01 | RMB10,000,000,000 | ? | 2016.03.21 | ? | 5 years | ? | RMB10,000,000,000 | ? | 9,976,533,425 | ? | - | ? | 68,547,672 | ? | 23,466,575 | ? | - | ? | (10,068,547,672) | ? | - |
| Euro PP | EUR10,000,000 | ? | 2016.12.29 | ? | 7 years | ? | EUR10,000,000 | ? | 78,470,471 | ? | - | ? | 2,704,800 | ? | 102,502 | ? | (898,623) | ? | (2,704,800) | ? | 77,674,350 |
| Euro PP | EUR30,000,000 | ? | 2017.03.29 | ? | 6 years | ? | EUR30,000,000 | ? | 233,662,337 | ? | - | ? | 8,114,400 | ? | 378,388 | ? | (895,244) | ? | (8,114,400) | ? | 233,145,481 |
| Euro PP | EUR10,000,000 | ? | 2019.07.22 | ? | 6 years | ? | EUR10,000,000 | ? | - | ? | 75,977,975 | ? | 1,560,633 | ? | 75,028 | ? | 1,005,550 | ? | (1,560,633) | ? | 77,058,553 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 合计 | ? | ? | ? | ? | ? | ? | ? | ? | 10,288,666,233 | ? | 75,977,975 | ? | 80,927,505 | ? | 24,022,493 | ? | (788,317) | ? | (10,080,927,505) | ? | 387,878,384 |
From 21 March 2016 to 22 March 2016, with the Approval document No. 469 [2016] of CSRC, the Group successfully issued a corporate bondof RMB 10 billion to qualified investors via Shenzhen Stock Exchange. The full name of the bond was Corporate Bond Issued Publicly by BOETechnology Group Co., Ltd. to Qualified Investors in 2016 (the First Phase), which referred to as 16BOE01. The total amount of the bond in thecurrent period is RMB 10 billion issued at a par value of RMB 100, with a maturity of 5 years from 21 March 2016 to 21 March 2021. Intereststarts to accrue on 21 March 2016 and the interest payments are made annually. The company will pay out the last interest payment with theprinciple amount of the bond when it becomes mature. The coupon rate is 3.15% which is fixed in the first 3 years, after which the company hasa right to raise the rate and so are the investors to sell back the bond to the company. On 30 January 2019, the company has decided that thecoupon rate remains unchanged and the investors may exercise the put option considering the market environment at the time. A number of96,705,976 bonds were sold back to the company at a total value of RMB 9,975,221,424.40 with interests included. In April 2019, the remaining3,294,024 bonds were honoured in advance whose amount is RMB 329,698,071.60 with interests included. The bond has been terminated onthe trading system of Shenzhen Stock Exchange on 3 April 2019.
SES issued two private placement bonds with a total face value of 40 million euro to institutional investors on 29 December 2016 and 29 March2017. The coupon rate of the bonds is 3.5% and the maturity date is 29 December 2023. Interest payments are made annually and the principleamount will be paid when the bonds become due.
SES issued a private placement bond with a total face value of 10 million euro to institutional investors on 22 July 2019. The coupon rate of thebond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually, and the principle amount will be paid when the bondbecome due.
32 Long-term payables
| Item | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Obligations under finance leases | (1) | 1,142,895,591 | ? | 1,625,169,828 |
| Less: Obligations under finance leases due within one year | ? | 158,374,767 | ? | 209,077,589 |
| ? | ? | ? | ? | ? |
| Total | ? | 984,520,824 | ? | 1,416,092,239 |
(1) Details of obligations under finance leases included in long-term payables
As at 31 December, the total future minimum lease payments under finance leases were asfollows:
?
Minimum lease payments
| Minimum lease payments | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 240,790,871 | ? | 310,816,661 |
| After 1 year but within 2 years (inclusive) | 211,473,668 | ? | 362,741,342 |
| After 2 years but within 3 years (inclusive) | 198,335,280 | ? | 345,762,549 |
| Over 3 years | 866,709,073 | ? | 1,096,208,635 |
| ? | ? | ? | ? |
| Sub-total | 1,517,308,892 | ? | 2,115,529,187 |
| ? | ? | ? | ? |
| Less: Unrecognised finance charges | 374,413,301 | ? | 490,359,359 |
| ? | ? | ? | ? |
| Total | 1,142,895,591 | ? | 1,625,169,828 |
The Group leased back some of its sold machinery equipment and constructions in progress.The sales of the assets are related to the leases, and the Group basically can ensure to buyback the asset after lease term. Therefore, the Group adopts the accounting treatment ofcollateral loans.
33 Provisions
?
Name of investee
| Name of investee | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Pending implementation of the agreement | 16,457,010 | ? | 16,457,010 |
In 2009, the Group ceased producing several products and stopped fulfilling the purchasecontract related to production. Due to the indemnity incurred accordingly, the Group accruedprovisions according to reasonable estimation of loss.
34 Deferred income
| Item | Balance at the beginning of the year | ? | Government grants newly increased during the year | ? | Amount included in other income | ? | Other changes | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Related to assets | 1,919,750,983 | ? | 615,717,141 | ? | (316,744,767) | ? | (259,201,083) | ? | 1,959,522,274 |
| Related to income | 267,807,550 | ? | 644,082,160 | ? | (665,011,418) | ? | (2,000,000) | ? | 244,878,292 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,187,558,533 | ? | 1,259,799,301 | ? | (981,756,185) | ? | (261,201,083) | ? | 2,204,400,566 |
35 Other non-current liabilities
?
Item
| Item | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Convertible debts | (1) | - | ? | 4,175,131,508 |
| Contribution of minority shareholders with redemption provisions | (2) | 3,699,127,228 | ? | 3,700,737,154 |
| Deferred VAT for imported equipment | ? | 4,409,269,015 | ? | 3,187,164,914 |
| Others | ? | 92,146,169 | ? | 271,839,746 |
| ? | ? | ? | ? | ? |
| Total | ? | 8,200,542,412 | ? | 11,334,873,322 |
(1) Convertible debts
Convertible debts mainly result from the Company’s capital commitment and conversionobligations to the minority shareholders of Hefei Xinsheng, the Company has repurchasedrelevant equities in cash in 2019.
(2) Contribution of minority shareholders with redemption provisions
The Contribution of minority shareholders with redemption provisions is mainly due to theredemption obligation of the company to the minority shareholders of Fuzhou BOE and BOESmart Retail (Hong Kong) Co., Ltd. The company recognizes the above minority shareholdercontribution as a financial liability which is subsequently measured at the cost ofamortization. The book balance on 31 December 2019 is RMB 3,699,127,228.
36 Share capital
?
?
| ? | Balance at The beginning of the year | ? | Balance at the end of the year |
| ? | ? | ? | ? |
| Total shares | 34,798,398,763 | ? | 34,798,398,763 |
37 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 | ? | Dividend rate | ? | Issuance price | ? | Quantity | ? | Amount | ? | Maturity date or renewal status | ? | Conditions for conversion | ? | Conversion status | |
| 19BOEY1 | 29 October 2019 | ? | Equity instrument | ? | 4.0% | ? | RMB 100/bond | ? | 80 million | ? | RMB 8 billion | ? | 3+N years | ? | N/A | ? | N/A |
(2) Major terms
On 29 October 2019, with the approval document No. 1801 [2019] of CSRC, the Companysuccessfully issued a renewable corporate bond to qualified investors. The full name of thebond was Renewable Corporate Bond Publicly Issued by BOE Technology Group Co., Ltd.(to qualified investors) in 2019 (the First Phase), which referred to as 19BOEY1.
The current bond has a base term of 3 years and takes every three interest-bearing years asa period. The Company is entitled to choose to extend the maturity by 1 period at the end ofeach period, or choose to fully redeem the bond at the end of the maturity. The nominalinterest rate of the bond is fixed during the first period, and then is reset once every period.The nominal interest rate in the first period is the initial benchmark interest rate plus the initialspread, and the nominal interest rate in the subsequent period is adjusted to the currentbenchmark interest rate plus the initial spread and 300 basis points. Therefore, when theCompany exercises the renewal option, the nominal interest rate will significantly increase,and the corresponding nominal interest will also increase sharply. The bond has an issuer’sright to defer the payment of interest. Unless a mandatory interest payment event occurs(including distributions to ordinary shareholders and decrease of registered capital). At eachinterest payment date of the bond, the Company may choose at its discretion whether todefer the payment of the current interest as well as all the deferred interests and the yieldsunder this term until the next interest payment date without being subjected to any limit onthe number of interest deferring attempts.
The actual issuance of the bonds for the current period amounted to RMB 8,000,000,000,and the Company considers that the renewable corporate bonds do not meet the definition offinancial liabilities, and therefore will charge the total amount of the issue to other equityinstruments at RMB 7,957,047,264 after deducting underwriting fees and other transactioncosts.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at
the end of the year:
| Outstanding financial instruments | At the beginning of the year | ? | Increase during the year | Accumulated interest | ? | At the end of the year | |||||||
| Quantity | ? | Carrying amount | ? | Quantity | ? | Carrying amount | Charge for the year | ? | Quantity | Carrying amount | |||
| 19BOEY1 | - | ? | - | ? | 80,000,000 | ? | 7,957,047,264 | 56,109,589 | ? | 80,000,000 | 8,013,156,853 | ||
(4) Relevant information of amounts attributable to holders of equity instruments
?
?
| ? | 2019 |
| Equity attributable to shareholders of the Company | 95,058,129,055 |
| - Equity attributable to ordinary shareholders of the Company | 87,044,972,202 |
| - Equity attributable to holders of the Company’s other equity instruments | 8,013,156,853 |
| Equity attributable to non-controlling shareholders | 45,999,567,919 |
| - Equity attributable to non-controlling ordinary shareholders | 45,999,567,919 |
| - Equity attributable to non-controlling shareholders of other equity instruments | - |
(5) Accrued interest on holders of other equity instruments
On 31 December 2019, as the above-mentioned issued renewable corporate bond iscumulative other equity instruments, the Company accrued RMB 56,109,589 of interest onrenewable corporate bonds from undistributed profits.
38 Capital reserve
?Item
| Item | ? | Share premiums | ? | Other capital reserves | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 37,546,517,053 | ? | 666,583,543 | ? | 38,213,100,596 |
| Add: Change in shareholding ratio of subsidiaries | ? | - | ? | 123,068,274 | ? | 123,068,274 |
| Other movements in equity of investee | ? | - | ? | 26,721,099 | ? | 26,721,099 |
| Less: Other equity movements arising from the disposal of equities transferred from associates | ? | - | ? | 9,647,605 | ? | 9,647,605 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 37,546,517,053 | ? | 806,725,311 | ? | 38,353,242,364 |
39 Other comprehensive income
| ? | Balance at the end of the previous year attributable to shareholders of the Company | ? | Changes in accounting policies | ? | ? | ? | Movements during the year | ? | ? | ||||||||
| Item | ? | ? | Balance of other comprehensive income at the beginning of the year after adjustment | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Net-of-tax amount attributable to the parent company | ? | Net-of-tax amount attributable to non-controlling interests | ? | 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 | - | ? | (240,595,947) | ? | (240,595,947) | ? | 343,106,828 | ? | 12,864,994 | ? | 330,241,834 | ? | - | ? | 50,430,448 | ? | 140,076,335 |
| Including: Other comprehensive income recognised under equity method | - | ? | (58,383,948) | ? | (58,383,948) | ? | 366,930,596 | ? | - | ? | 366,930,596 | ? | - | ? | - | ? | 308,546,648 |
| Changes in fair value of investments in other equity instruments | - | ? | (182,211,999) | ? | (182,211,999) | ? | (23,823,768) | ? | 12,864,994 | ? | (36,688,762) | ? | - | ? | 50,430,448 | ? | (168,470,313) |
| Items that may be reclassified to profit or loss | (125,258,252) | ? | 73,997,231 | ? | (51,261,021) | ? | (101,796,181) | ? | ? | ? | (93,381,953) | ? | (8,414,228) | ? | - | ? | (144,642,974) |
| Including: Other comprehensive income recognised under equity method | (58,383,948) | ? | 58,383,948 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Gains or losses arising from changes in fair value of available-for-sale financial assets | (25,305,733) | ? | 25,305,733 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Fair value changes in wealth management products | 9,692,450 | ? | (9,692,450) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Translation differences arising from translation of foreign currency financial statements | (51,261,021) | ? | - | ? | (51,261,021) | ? | (101,796,181) | ? | - | ? | (93,381,953) | ? | (8,414,228) | ? | - | ? | (144,642,974) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (125,258,252) | ? | (166,598,716) | ? | (291,856,968) | ? | 241,310,647 | ? | 12,864,994 | ? | 236,859,881 | ? | (8,414,228) | ? | 50,430,448 | ? | (4,566,639) |
40 Surplus reserve
| Item | Balance at the beginning of the year | ? | Increase during the year | ? | Decreases during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Statutory surplus reserve | 862,955,001 | ? | 368,556,446 | ? | (5,043,047) | ? | 1,226,468,400 |
| Discretionary surplus reserve | 289,671,309 | ? | - | ? | - | ? | 289,671,309 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,152,626,310 | ? | 368,556,446 | ? | (5,043,047) | ? | 1,516,139,709 |
| ? | |||||||
41 Retained earnings
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year (before adjustment) | ? | 11,817,881,286 | ? | 10,385,659,084 |
| Add: Changes in accounting policies | ? | 159,238,247 | ? | - |
| Retained earnings at the beginning of the year (after adjustment) | ? | 11,977,119,533 | ? | 10,385,659,084 |
| Add: Net profits for the year attributable to shareholders of the Company | ? | 1,918,643,871 | ? | 3,435,127,975 |
| Less: Appropriation for statutory surplus reserve | ? | 368,556,446 | ? | 262,985,835 |
| Dividends to ordinary shares | ? | 1,043,951,963 | ? | 1,739,919,938 |
| Interest of holders of other equity instruments | 56,109,589 | - | ||
| Transfer of other comprehensive income to retained earnings | ? | 45,387,401 | ? | - |
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 12,381,758,005 | ? | 11,817,881,286 |
According to the Annual Shareholders’ Meeting for 2018 held on 26 April 2019, the Companydistributed cash dividends to all shareholders on 31 May 2019, with RMB 0.3 every 10shares (2018: RMB 0.5) and a total dividend of RMB 1,043,951,963 (2018: RMB1,739,919,938) distributed.
As at 31 December 2019, the consolidated retained earnings attributable to the Companyincluded an appropriation of RMB 2,197,635,471 (2018: RMB 2,028,756,975) to surplusreserve made by the subsidiaries.
42 Operating income and operating costs
| ? | 2019 | ? | 2018 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 112,869,129,027 | ? | 96,547,463,221 | ? | 94,629,547,884 | ? | 75,771,556,938 |
| Other operating activities | 3,190,461,137 | ? | 1,898,806,075 | ? | 2,479,317,051 | ? | 1,534,667,350 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 116,059,590,164 | ? | 98,446,269,296 | ? | 97,108,864,935 | ? | 77,306,224,288 |
Details of operating income:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Operating income from principal activities | ? | ? | ? | ? |
| - Sale of goods | ? | 112,869,129,027 | ? | 94,629,547,884 |
| Other operating income | ? | ? | ? | ? |
| - Sales of raw materials | ? | 1,049,219,352 | ? | 936,524,913 |
| - Rental income of investment properties | ? | 1,164,355,875 | ? | 1,023,141,383 |
| - Others | ? | 976,885,910 | ? | 519,650,755 |
| ? | ? | ? | ? | ? |
| Total | ? | 116,059,590,164 | ? | 97,108,864,935 |
Information on income, expenses and profit of principal activities has been included in NoteXIII.
43 Taxes and surcharges
??
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Property tax | ? | 352,251,436 | ? | 311,354,873 |
| City maintenance and construction tax | ? | 190,993,833 | ? | 192,007,248 |
| Education surcharges and local education surcharges | ? | 136,854,543 | ? | 137,643,535 |
| Stamp duty | ? | 108,178,185 | ? | 84,381,357 |
| Land use tax | ? | 43,676,217 | ? | 28,005,681 |
| Others | ? | 29,146,391 | ? | 25,213,432 |
| ? | ? | ? | ? | ? |
| Total | ? | 861,100,605 | ? | 778,606,126 |
44 Selling and distribution expenses
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Warranty provisions | ? | 927,748,774 | ? | 1,068,015,463 |
| Staff cost | ? | 698,586,373 | ? | 582,456,239 |
| Logistics | ? | 589,504,713 | ? | 530,295,839 |
| Others | ? | 702,025,520 | ? | 710,289,428 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,917,865,380 | ? | 2,891,056,969 |
45 General and administrative expenses
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Staff cost | ? | 2,456,007,113 | ? | 2,304,932,925 |
| Repair expense | ? | 1,221,489,432 | ? | 1,155,436,163 |
| Depreciation and amortisation | ? | 586,695,417 | ? | 445,659,627 |
| Others | ? | 950,756,065 | ? | 1,053,155,482 |
| ? | ? | ? | ? | ? |
| Total | ? | 5,214,948,027 | ? | 4,959,184,197 |
46 Research and development costs
??
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Staff cost | 2,764,095,983 | ? | 2,337,224,942 |
| Material expenses | 1,517,000,923 | ? | 888,449,869 |
| Depreciation and amortisation | 1,234,104,120 | ? | 662,379,702 |
| Others | 1,184,772,214 | ? | 1,151,872,922 |
| ? | ? | ? | ? |
| Total | 6,699,973,240 | ? | 5,039,927,435 |
47 Financial expenses
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Interest expenses from loans | ? | 3,651,979,758 | ? | 4,566,725,543 |
| Less: Borrowing costs capitalised | ? | 1,126,843,549 | ? | 1,300,993,229 |
| Interest income from bank deposits | ? | (840,190,118) | ? | (748,004,557) |
| Net exchange losses | ? | 226,570,667 | ? | 544,018,382 |
| Other financial expenses | ? | 82,633,500 | ? | 134,949,751 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,994,150,258 | ? | 3,196,695,890 |
The interest rate per annum, at which the borrowing costs were capitalized by the Group,was 3.73% ~ 4.84% (2018: 3.88% ~ 5.06% for the year).
48 Other income
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Government grants related to assets | ? | 316,744,767 | ? | 514,836,515 |
| Government grants related to income | ? | 2,287,022,704 | ? | 1,485,737,116 |
| Others | ? | 1,891,240 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 2,605,658,711 | ? | 2,000,573,631 |
The amount of government subsidies received by the Group in 2019 and directly included inother income was RMB 1,622,011,286.
49 Investment income
?
?
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Income / (losses) from long-term equity investments accounted for using equity method | 200,020,686 | ? | (13,925,731) |
| Investment income / (losses) from disposal of long-term equity investments | 48,846,682 | ? | (3,948,640) |
| Investment income from holding available-for-sale financial assets | - | ? | 11,543,726 |
| Dividend income from investments in other equity instruments | 9,984,205 | ? | - |
| Including: Dividend income from investments in other equity instruments derecognised during the year | 471,354 | ? | - |
| Dividend income from investments in other equity instruments held at the balance sheet date | 9,512,851 | ? | - |
| Investment income from wealth management products on maturity | 83,769,118 | ? | 313,218,224 |
| ? | ? | ? | ? |
| Total | 342,620,691 | ? | 306,887,579 |
50 Gains from changes in fair value
?
Item
| Item | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Financial assets held for trading | 66,473,077 | ? | - |
| Gains from changes in fair value of derivative financial liabilities | 71,000,000 | ? | 2,061,153 |
| ? | ? | ? | ? |
| Total | 137,473,077 | ? | 2,061,153 |
51 Credit losses
| Item | 2019 |
| ? | ? |
| Accounts receivable | 22,016,906 |
| Other receivables | 6,245,721 |
| ? | ? |
| Total | 28,262,627 |
52 Impairment losses
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Losses of bad and doubtful debts | ? | - | ? | 4,499,724 |
| Impairment losses of inventories | ? | 1,986,350,231 | ? | 1,201,958,587 |
| Impairment losses of fixed assets | ? | 160,345,034 | ? | - |
| Impairment losses of Long-term equity investments | ? | 240,721,340 | ? | - |
| Impairment losses of goodwill | 196,766,653 | - | ||
| Impairment losses of Available-for-sale financial assets | ? | - | ? | 33,130,452 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,584,183,258 | ? | 1,239,588,763 |
53 Gains from asset disposals
?Item
| Item | 2019 | ? | 2018 | ? | Amount recognised in extraordinary gain and loss in 2019 |
| ? | ? | ? | ? | ? | ? |
| Gains from disposal of fixed assets | 79,029 | ? | 1,067,273 | ? | 79,029 |
| ? | ? | ? | ? | ? | ? |
| Total | 79,029 | ? | 1,067,273 | ? | 79,029 |
54 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
?
Item
| Item | 2019 | ? | 2018 | ? | Amount recognised in extraordinary gain and loss in 2019 |
| ? | ? | ? | ? | ? | ? |
| Government grants | 36,867,390 | ? | 73,136,030 | ? | 36,867,390 |
| Others | 171,562,808 | ? | 96,293,485 | ? | 171,562,808 |
| ? | ? | ? | ? | ? | ? |
| Total | 208,430,198 | ? | 169,429,515 | ? | 208,430,198 |
Government grants recognised in profit or loss for the current period
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Policy incentives and others | ? | 36,867,390 | ? | 73,136,030 |
(2) Non-operating expenses
??
| ? | 2019 | ? | 2018 | ? | Amount recognised in extraordinary gain and loss in 2019 |
| ? | ? | ? | ? | ? | ? |
| Donations provided | 9,985,603 | ? | 8,931,099 | ? | 9,985,603 |
| Losses from damage or scrapping of non-current assets | 31,048,028 | ? | 25,378,178 | ? | 31,048,028 |
| Others | 62,315,447 | ? | 21,000,974 | ? | 62,315,447 |
| ? | ? | ? | ? | ? | ? |
| Total | 103,349,078 | ? | 55,310,251 | ? | 103,349,078 |
55 Income tax expenses
?
?
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Current tax expense for the year based on tax law and regulations | ? | 956,184,825 | ? | 1,114,931,211 |
| Changes in deferred tax | (1) | 23,806,679 | ? | 127,484,883 |
| ? | ? | ? | ? | ? |
| Total | ? | 979,991,504 | ? | 1,242,416,094 |
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
??
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Origination and reversal of temporary differences | ? | 23,806,679 | ? | 127,484,883 |
(2) Reconciliation between income tax expense and accounting profit is as follows:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Profit before taxation | ? | 503,750,101 | ? | 4,122,290,167 |
| Expected income tax expense at tax rate of 15% | ? | 75,562,515 | ? | 618,343,525 |
| Add: Effect of different tax rates applied by subsidiaries | ? | 7,640,088 | ? | (8,605,091) |
| Effect of non-deductible costs, expense and losses | ? | 58,923,605 | ? | 57,787,173 |
| Tax effect of weighted deduction and tax preference | ? | (590,392,743) | ? | (326,776,754) |
| Utilisation of prior year tax losses | ? | (20,942,179) | ? | (42,090,199) |
| Tax effect of deductible losses of deferred tax assets not recognised | ? | 1,358,934,997 | ? | 801,853,138 |
| Tax effect of deductible temporary differences of deferred tax assets not recognised | ? | 106,073,260 | ? | 167,943,845 |
| Effect of tax rates changes on deferred tax | ? | (15,808,039) | ? | (26,039,543) |
| ? | ? | ? | ? | ? |
| Income tax expenses | ? | 979,991,504 | ? | 1,242,416,094 |
According to the Ministry of Finance, the State Administration of Taxation and the Ministry ofScience and Technology Finance and Taxation [2018] No. 99 Notice on Increasing the Pre-tax Deduction Ratio of Research and Development Expenses, in order to further encourageenterprises to increase investment in research and development, support scientific andtechnological innovation, enterprises actually carry out research and development activities.The research and development expenses which are not resulted in intangible assets but inthe current profits and losses, are deducted on the basis of the regulations truthfully. Besides,during January 1, 2018 and December 31 2020, extra deduction will be added to theresearch and development expenses before taxation according to 75% of the actual amount.
56 Basic earnings per share and diluted 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.
?
?
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Net profit attributable to the Company’s shareholders | 1,918,643,871 | 3,435,127,975 | |
| Less: Current interest of other equity instruments | 56,109,589 | - | |
| Consolidated net profit attributable to ordinary shareholders of the Company | 1,862,534,282 | ? | 3,435,127,975 |
| Weighted average number of ordinary shares outstanding (share) | 34,798,398,763 | ? | 34,798,398,763 |
| Basic earnings per share (RMB/share) | 0.05 | ? | 0.10 |
57 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net (loss)/profit | (476,241,403) | ? | 2,879,874,073 |
| Add: Credit loss | 28,262,627 | ? | - |
| Impairment loss | 2,584,183,258 | ? | 1,239,588,763 |
| Depreciation of fixed assets and investment properties | 18,357,209,097 | ? | 13,335,938,485 |
| Amortisation of intangible assets | 505,881,147 | ? | 439,474,291 |
| Amortisation of long-term deferred expenses | 123,883,157 | ? | 141,908,077 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (79,029) | ? | (3,694,057) |
| Losses from scrapping of fixed assets and intangible assets | 28,585,575 | ? | 25,378,178 |
| Financial expenses | 2,849,179,043 | ? | 2,568,053,826 |
| Gains from changes in fair value | (137,473,077) | ? | (2,061,153) |
| Investment income | (342,620,691) | ? | (306,887,579) |
| Change in deferred income | 276,854,045 | ? | 87,642,739 |
| Increase in deferred tax assets | (9,992,167) | ? | (97,760,872) |
| Increase in deferred tax liabilities | 33,798,846 | ? | 841,185,989 |
| Increase in inventories | (2,397,146,821) | ? | (3,709,307,660) |
| Decrease in operating receivables | 1,113,154,602 | ? | 828,109,193 |
| Increase in operating payables | 3,545,640,985 | ? | 7,416,604,903 |
| ? | ? | ? | ? |
| Net cash flows from operating activities | 26,083,079,194 | ? | 25,684,047,196 |
| (b) Net changes in cash and cash equivalents: | ? | ? | ? |
| ? | ? | ? | ? |
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 50,270,321,573 | ? | 43,350,696,520 |
| Less: Cash and cash equivalents at the beginning of the year | 43,350,696,520 | ? | 47,913,287,583 |
| ? | ? | ? | ? |
| Net increase/(decrease) in cash and cash equivalents | 6,919,625,053 | ? | (4,562,591,063) |
(2) Information on acquisition of subsidiaries during the year
Information on acquisition of subsidiaries:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Cash and cash equivalents paid during the year for acquiring subsidiaries during the year | ? | - | ? | - |
| Less: Cash and cash equivalents held by subsidiaries | ? | 33,640,033 | ? | 6,801,508,810 |
| ? | ? | ? | ? | ? |
| Net cash paid for the acquisition | ? | (33,640,033) | ? | (6,801,508,810) |
(3) Details of cash and cash equivalents
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Cash on hand | ? | 538,338 | ? | 537,805 |
| Bank deposits available on demand | ? | 50,269,207,607 | ? | 43,340,146,382 |
| Other monetary funds available on demand | ? | 575,628 | ? | 10,012,333 |
| ? | ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | ? | 50,270,321,573 | ? | 43,350,696,520 |
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
58 Assets with restrictive ownership title or right of use
?Item
| Item | Balance at the beginning of the year | ? | Increase during the year | ? | Decrease during the year | ? | Balance at the end of the year | ? | Reason for restriction |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 8,130,843,191 | ? | 6,330,578,381 | ? | (7,759,019,906) | ? | 6,702,401,666 | ? | Pledged as collateral and margin deposit |
| Bills receivable | 208,324,414 | ? | 65,247,847 | ? | (216,469,744) | ? | 57,102,517 | ? | Discounted with recourse, endorsed with resource and pledged for drawing bill |
| Financial assets held for trading | - | 24,000,000 | - | 24,000,000 | Pledged for drawing bill | ||||
| Investment properties | 217,435,561 | ? | - | ? | (174,038,890) | ? | 43,396,671 | ? | Mortgaged as collateral |
| Fixed assets | 98,251,866,706 | ? | 15,518,033,137 | ? | (20,762,127,016) | ? | 93,007,772,827 | ? | Mortgaged as collateral |
| Construction in progress | 34,117,974,254 | ? | 29,774,500,251 | ? | (6,809,015,524) | ? | 57,083,458,981 | ? | Mortgaged as collateral |
| Intangible assets | 1,216,927,485 | ? | 743,427,450 | ? | (425,969,092) | ? | 1,534,385,843 | ? | Mortgaged as collateral |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 142,143,371,611 | ? | 52,455,787,066 | ? | (36,146,640,172) | ? | 158,452,518,505 | ? | ? |
59 Details of provision for impairment of assets
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | Decrease during the year | ? | ? | ||||
| Item | Note | Balance at 31 December 2018 | ? | Impact of change in accounting policy | ? | Balance at 1 January 2019 | ? | Increase during the year | ? | Reversal | ? | Transferred out | ? | Translation differences | ? | Balance at the end of the year |
| ? | ? | RMB | ? | ? | ? | ? | ? | RMB | ? | RMB | ? | RMB | ? | RMB | ? | RMB |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for bad and doubtful debts | V.4, 6 | 319,662,342 | ? | 8,482,829 | ? | 328,145,171 | ? | 29,761,432 | ? | (1,498,805) | ? | (4,755,005) | ? | 4,988,616 | ? | 356,641,409 |
| Provision for impairment of inventories | V.7 | 1,691,635,384 | ? | - | ? | 1,691,635,384 | ? | 2,899,581,455 | ? | (913,231,224) | ? | (1,866,910,805) | ? | 1,544,179 | ? | 1,812,618,989 |
| Provision for impairment of available-for-sale financial assets | V.10 | 184,595,607 | ? | (184,595,607) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Provision for impairment of held-to-maturity investments | ? | 17,960,946 | ? | (17,960,946) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Provision for impairment of long-term equity investments | V.11 | 537,136,972 | ? | - | ? | 537,136,972 | ? | 240,721,340 | ? | - | ? | - | ? | - | ? | 777,858,312 |
| Provision for impairment of fixed assets | V.14 | 652,862,342 | ? | - | ? | 652,862,342 | ? | 160,345,034 | ? | - | ? | (21,511,406) | ? | - | ? | 791,695,970 |
| Provision for impairment of goodwill | V.17 | 4,423,876 | ? | - | ? | 4,423,876 | ? | 196,766,653 | ? | - | ? | - | ? | - | ? | 201,190,529 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,408,277,469 | ? | (194,073,724) | ? | 3,214,203,745 | ? | 3,527,175,914 | ? | (914,730,029) | ? | (1,893,177,216) | ? | 6,532,795 | ? | 3,940,005,209 |
For reasons of recognition of impairment losses, refer to the notes of relevant assets.
VI. 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 | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Research and development, design and manufacture of TFT-LCD | ? | USD 649,110,000 | ? | 82.49% | ? | 17.51% | ? | Founded by investment |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | Research and development, design, manufacture, and sale of new display devices and components | ? | RMB 25,000,000,000 | ? | 100% | ? | - | ? | Business combinations 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 | ? | RMB 9,000,000,000 | ? | 100% | ? | - | ? | Business combinations 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 | ? | RMB 17,882,913,500 | ? | 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 | ? | RMB 19,500,000,000 | ? | 99.97% | ? | 0.03% | ? | Business combinations involving entities not under common control |
| Ordos Yuansheng Optoelectronics Co., Ltd. | Ordos, China | ? | Ordos, China | ? | The production and operation of AMOLED and relevant products | ? | RMB 11,804,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Chongqing BOE Optoelectronics 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 | ? | RMB 19,226,000,000 | ? | 100% | ? | - | ? | Business combinations involving entities not under common control |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | ? | Fuzhou, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | RMB 17,600,000,000 | ? | 81.25% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Vision-electronic Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Research, manufacture and sales of terminal products of LCD monitor and TV etc. | ? | RMB 4,093,500,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sales of vacuum electronic products | ? | RMB 35,000,000 | ? | 55% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sales of vacuum tubes | ? | RMB 32,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Special Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development of display products and sales of electronic products | ? | RMB 100,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Engineering project management, real estate development, mobile vehicle parking lot services and marketing research | ? | RMB 233,105,200 | ? | 100% | ? | - | ? | Founded by investment |
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | ? | Suzhou, China | ? | Development, manufacture and sales of backlight and related parts and components for LCD | ? | RMB 826,714,059 | ? | 95.17% | ? | - | ? | Founded by investment |
| BOE Hyundai LCD Inc. | Beijing, China | ? | Beijing, China | ? | Development of display products and sales of electronic products | ? | USD 5,000,000 | ? | 75% | ? | - | ? | Founded by investment |
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | ? | Langfang, China | ? | Manufacture and sales of mobile flat screen display technical products and related services | ? | RMB 1,358,160,140 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE multimedia Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of computer software and Hardware, the numeral regards the audio frequency technology | ? | RMB 400,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Energy Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Design, consultation and services of solar battery, photovoltaic system, wing turbine system and photo-thermal system, and energy saving service | ? | RMB 850,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Life Technology Co., Ltd | Beijing, China | ? | Beijing, China | ? | Technology poromotion services, property management, sales of electronic products | ? | RMB 24,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Zhongxiangying Technologies Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology poromotion services, property management, sales of electronic products | ? | RMB 10,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Ordos City Haosheng Energy Investment Co., Ltd. | Ordos, China | ? | Ordos, China | ? | Investment in enegy | ? | RMB 30,000,000 | ? | - | ? | 100% | ? | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Processing, production, and sales of goods, primarily comprising sales of precision electronic metal parts and semiconductor devices, in addition to micromodules, microelectronic devices and electronic materials; import and export of goods | ? | RMB 11,250,000 | ? | 84% | ? | - | ? | Founded by investment |
| BOE Optoelectronics Holding Co., Ltd | Hong Kong, China | ? | British Virgin Islands | ? | Design, manufacturing and sales of electronic-information industry related products, investment and financing businesses | ? | USD 260,809,100 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Asahi Electronic Materials Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of Supports and glass bar for TV and CTV low melting sealing frit | ? | RMB 61,576,840 | ? | 100% | ? | - | ? | Business combinations involving entities not under common control |
| BOE Health Investment & Management Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment management and investment | ? | RMB 3,000,000,000 | ? | 100% | ? | - | ? | Business combinations involving entities not under common control |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing·Matsushita Color Innovation Co., Ltd | Beijing, China | ? | Beijing, China | ? | Color TV, display tube, color rear projection TV projection tube and electronic component materials, property management, parking services, etc. | ? | RMB 325,754,049 | ? | 88.80% | ? | - | ? | Business combinations involving entities not under common control |
| Hefei BOE Display Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | RMB 24,000,000,000 | ? | 8.33% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Technology Development Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, transfer, consultation and services of technologies | ? | RMB 1,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| BOE smart IOT Technology Co., Ltd | Beijing, China | ? | Beijing, China | ? | Development, transfer, consultation, services and promotion of technologies | ? | RMB 142,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | RMB 800,000,000 | ? | 75% | ? | - | ? | Founded by investment |
| Beijing BOE Land Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, construction, property management and supporting services of industrial plants and supporting facilities, information and consultation of real estates, lease of commercial facilities, service staff and other supporting facilities and public parking area services for vehicles | ? | RMB 55,420,000 | ? | 70% | ? | - | ? | Founded by investment |
| Beijing BOE Sales Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of communication devices, computer hardware and software and accessory devices and electronic products and equipment maintenance; development, transfer, consultation and services of technologies; import and export of goods, import and export agency, import and export of technologies; Consigned processing of electronic products and LCD | ? | RMB 50,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Kunming BOE Display Technology Co., Ltd. | Yunnan, China | ? | Yunnan, 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 complete machines; warehousing services; I-type Xuanmu investment and management of investment projects | ? | RMB 3,040,000,000 | ? | 69.43% | ? | - | ? | Founded by investment |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | ? | Mianyang, China | ? | research and development, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | ? | RMB 24,000,000,000 | ? | 68.72% | ? | - | ? | Business combinations involving entities not under common control |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 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 | ? | RMB 50,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Yiyun Science &Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology development, technology transfer, technical consulting, technical services; technology intermediary services; information system integration; basic software services; application software services; software development | ? | RMB 200,000,000 | ? | 95.92% | ? | - | ? | Business combinations involving entities not under common control |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (“Wuhan BOE”) | Wuhan, China | ? | Wuhan, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | RMB 19,523,000,000 | ? | 23.08% | ? | - | ? | Business combinations involving entities not under common control |
| Chongqing BOE Display Technology Co., Ltd. (Chongqing BOE Display) | 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 | ? | RMB 6,010,000,000 | ? | 38.46% | ? | - | ? | Business combinations involving entities not under common control |
| Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”) | Fuzhou, China | ? | Fuzhou, China | ? | Mainly engaged in the research and development, 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 leasing; machinery and equipment leasing | ? | RMB 50,000,000 | ? | 43.46% | ? | - | ? | Business combinations involving entities not under common control |
| SES Imagotag SA Co.Ltd. | Nanterre, France | ? | Nanterre, France | ? | Supports color electronic paper, segment LCD, TFT-LCD display, covering ESL multi-frequency protocol, Wi-Fi, BLE and NFC; multiple communication methods, integrated electronic paper supply chain resources and downstream software around electronic shelf labels Platform, image recognition and big data analytics resources to create a complete solution for the retail industry | ? | EUR 31,512,216 | ? | - | ? | 68.48% | ? | Business combinations involving entities not under common control |
The Company and the shareholder of Hefei Display Technology, Hefei Core Screen Industrial Investment Fund (Limited Partnership) signed aconcerted action agreement on November 30, 2016, Hefei Core Screen Industrial Investment Fund (Limited Partnership) agreed to act as aconcerted action according to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordance with theopinions of the Company. Therefore, the Company's voting right ratio to Hefei is 71.67%.
The Company and Shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,Ltd. signed a concerted action agreement on 25 December 2018. Wuhan Airport Economic Development Zone Industrial DevelopmentInvestment Group Co., Ltd. agreed to follow the Company's will to act as a concerted action, unconditionally and irrevocably exercising votingrights in accordance with the opinions of the company, the voting rights of the Company to Wuhan BOE is 61.95%.
The Company and shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. signed a concerted action agreement on 25 December2018, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi OptoelectronicIndustry Investment Co., Ltd. agreed to act as a concerted action according to the will of the Company, and exercise the voting rightsunconditionally and irrevocably in accordance with the opinions of the Company. Therefore, the proportion of voting rights displayed by theCompany on Chongqing BOE is 100%.
The Company and Shareholder of Fuzhou BOE Display, Fuqing City Invested-Construction Investment Group Co., Ltd and Fuzhou UrbanConstruction Investment Group Co., Ltd signed a concerted action agreement on 21 January 2019. Fuqing City Invested-ConstructionInvestment Group Co., Ltd and Fuzhou Urban Construction Investment Group Co., Ltd agreed to act as a concerted action according to the willof the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, theproportion of voting rights displayed by the Company on Fuzhou BOE Display is 100%.
(2) Material non-wholly owned subsidiaries
| Name of subsidiaries | Shareholding percentage of non-controlling interests | ? | Losses attributable 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 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Hefei Display Technology | 91.67% | ? | (2,244,850,606) | ? | - | ? | 19,288,976,939 |
| Mianyang BOE | 31.28% | ? | (60,432,308) | ? | - | ? | 6,574,587,034 |
(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:
??
| ? | ? | Hefei Display Technology | ? | Mianyang BOE | ? | |||||||||||||
| ? | ? | 2019 | ? | 2018 | ? | 2019 | ? | 2018 | ||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||||||
| Current assets | ? | 11,633,732,300 | ? | 11,725,102,123 | ? | 3,644,261,703 | ? | 2,773,489,555 | ||||||||||
| Non-current assets | ? | 33,264,338,502 | ? | 36,531,775,939 | ? | 39,751,190,014 | ? | 25,796,166,533 | ||||||||||
| ? | ? | ? | ? | ? | ? | |||||||||||||
| Total assets | ? | 44,898,070,802 | ? | 48,256,878,062 | ? | 43,395,451,717 | ? | 28,569,656,088 | ||||||||||
| ? | ? | ? | ? | ? | ? | |||||||||||||
| Current liabilities | ? | 9,069,027,029 | ? | 7,708,059,063 | ? | 4,971,407,195 | ? | 4,403,438,719 | ||||||||||
| Non-current liabilities | ? | 14,787,288,631 | ? | 16,968,627,760 | ? | 17,405,543,775 | ? | 7,155,140,937 | ||||||||||
| ? | ? | ? | ? | ? | ? | |||||||||||||
| Total liabilities | ? | 23,856,315,660 | ? | 24,676,686,823 | ? | 22,376,950,970 | ? | 11,558,579,656 | ||||||||||
| ? | ? | ? | ? | ? | ? | |||||||||||||
| Operating income | ? | 11,455,196,518 | ? | 3,318,954,798 | ? | 110,313,244 | ? | 479,530 | ||||||||||
| Net loss | ? | (2,448,838,884) | ? | (406,216,942) | ? | (252,575,687) | ? | (113,788,845) | ||||||||||
| Total comprehensive income | ? | (2,448,838,884) | ? | (412,759,853) | ? | (252,575,687) | ? | (113,788,845) | ||||||||||
| Cash flows from operating activities | ? | 912,437,769 | ? | 407,026,027 | ? | 184,012,366 | ? | (524,307,111) | ||||||||||
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 |
| ? | ? | ? | ? | ? |
| BOE Semi-conductor Co., Ltd. | ? | 80.77% | ? | 84.00% |
| Kunming BOE Display Technology Co., Ltd. | ? | 45.11% | ? | 69.43% |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | ? | 81.35% | ? | 68.72% |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | ? | 14.58% | ? | 23.08% |
| Fuzhou BOE Display Technology Co., Ltd. | ? | 65.77% | ? | 43.46% |
| SES Imagotag SA Co., Ltd. | ? | 73.93% | ? | 68.48% |
(2) Impact from transactions with 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 capital increase of the Company and its non-controllinginterests, which results to the increase of capital reserver by RMB 123,068,274 (Note V.38).
3 Interests in joint ventures or associates
Please see Note V.11 (2) for details of the summarized financial information of theassociates and joint ventures.
No material restrictions on transfers of funds from investees to the Group. The judgmentbasis 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.
VII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments inthe normal course of the Group’s 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 seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. 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 of risk management controls and procedures.
(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 are monitored by management onan ongoing 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,the external ratings of the customers and the record of previous transactions. Receivablesare due within 15 to 120 days from the date of billing. Debtors with balances that are pastdue are requested to settle all outstanding balances before any further credit is granted.Normally, the Group does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer rather than the industry, country or area in which the customers operate andtherefore significant concentrations of credit risk arise primarily when the Group hassignificant exposure to individual customers. At the balance sheet date, the Group and theCompany’s accounts receivable and other receivables due from the top five customersaccount for 43% and 0.07% of the total accounts receivable respectively (2018: 40% and
0.06%). In addition, the accounts receivable not overdue or impaired is mainly related tomany clients who don’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. As mentioned in Note XI, as at 31 December 2019 the Groupdoes not provide any external guarantees which would expose the Group or the Company tocredit 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 predeterminedlevels). The Group’s policy is to regularly monitor its liquidity requirements and its compliancewith lending covenants, to ensure that it maintains sufficient reserves of cash, readilyrealisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.
| ? | 2019 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand | ? | More than 1 year but less than 3 years | ? | More than 3 years but less than 5 years | ? | More than 5 years | ? | Total | ? | Carrying amount of balance sheet |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 6,458,040,008 | ? | - | ? | - | ? | - | ? | 6,458,040,008 | ? | 6,366,717,121 |
| Bills payable | 2,028,917,980 | ? | - | ? | - | ? | - | ? | 2,028,917,980 | ? | 2,028,917,980 |
| Accounts payable | 21,183,567,553 | ? | - | ? | - | ? | - | ? | 21,183,567,553 | ? | 21,183,567,553 |
| Other payables | 24,570,589,610 | ? | - | ? | - | ? | - | ? | 24,570,589,610 | ? | 24,570,589,610 |
| Non-current liabilities due within one year | 19,473,884,018 | ? | - | ? | - | ? | - | ? | 19,473,884,018 | ? | 18,849,281,019 |
| Long-term loans | 4,478,877,485 | ? | 8,296,257,569 | ? | 26,580,720,126 | ? | 94,478,027,383 | ? | 133,833,882,563 | ? | 107,730,595,615 |
| Long-term payables | - | ? | 409,808,948 | ? | 328,617,676 | ? | 538,091,397 | ? | 1,276,518,021 | ? | 984,520,824 |
| Debentures payable | 14,497,753 | ? | 28,995,505 | ? | 330,673,806 | ? | 3,556,053 | ? | 377,723,117 | ? | 387,878,384 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 78,208,374,407 | ? | 8,735,062,022 | ? | 27,240,011,608 | ? | 95,019,674,833 | ? | 209,203,122,870 | ? | 182,102,068,106 |
| ? | 2018 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand | ? | More than 1 year but less than 3 years | ? | More than 3 years but less than 5 years | ? | More than 5 years | ? | Total | ? | Carrying amount of balance sheet |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 5,542,824,867 | ? | - | ? | - | ? | - | ? | 5,542,824,867 | ? | 5,449,954,885 |
| Bills payable | 591,109,272 | ? | - | ? | - | ? | - | ? | 591,109,272 | ? | 591,109,272 |
| Accounts payable | 22,213,956,616 | ? | - | ? | - | ? | - | ? | 22,213,956,616 | ? | 22,213,956,616 |
| Other payables | 22,956,979,828 | ? | - | ? | - | ? | - | ? | 22,956,979,828 | ? | 22,956,979,828 |
| Non-current liabilities due within one year | 6,081,520,241 | ? | - | ? | - | ? | - | ? | 6,081,520,241 | ? | 5,597,563,204 |
| Long-term loans | 4,283,202,579 | ? | 9,376,015,293 | ? | 14,959,103,283 | ? | 92,225,178,032 | ? | 120,843,499,187 | ? | 94,780,077,864 |
| Long-term payables | - | ? | 708,503,891 | ? | 399,396,820 | ? | 696,811,815 | ? | 1,804,712,526 | ? | 1,416,092,239 |
| Debentures payable | 325,986,220 | ? | 10,651,972,440 | ? | 335,864,440 | ? | - | ? | 11,313,823,100 | ? | 10,288,666,233 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 61,995,579,623 | ? | 20,736,491,624 | ? | 15,694,364,543 | ? | 92,921,989,847 | ? | 191,348,425,637 | ? | 163,294,400,141 |
(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 of the fixed and floating rate interest-bearing instruments basedon the current 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:
??
| ? | 2019 | ? | 2018 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.20%~3.74% | ? | 26,721,273,607 | ? | 0.20% ~ 3.74% | ? | 21,898,508,469 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 0.40%-4.35% | ? | (4,643,502,121) | ? | 1.28% ~ 4.95% | ? | (2,927,190,124) |
| - Non-current liabilities due within one year | 0%-5.64% | ? | (9,071,034,895) | ? | 0% ~ 5.88% | ? | (2,967,991,325) |
| - Debentures payable | 3.50%~4.55% | ? | (387,878,384) | ? | 3.15% ~ 3.50% | ? | (10,288,666,233) |
| - Long-term payables | 4.24%~7.09% | ? | (984,520,824) | ? | 3.56% ~ 7.09% | ? | (1,416,092,239) |
| - Long-term loans | 0%-5.64% | ? | (59,667,474,395) | ? | 0% ~ 5.88% | ? | (58,484,576,750) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (48,033,137,012) | ? | ? | ? | (54,186,008,202) |
Variable rate instruments:
??
| ? | 2019 | ? | 2018 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.0001%~3.90% | ? | 30,250,911,294 | ? | 0.0001% ~ 3.90% | ? | 29,582,493,437 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 3.56%~3.92% | ? | (1,723,215,000) | ? | 3.44%-4.39% | ? | (2,522,764,761) |
| - Non-current liabilities due within one year | 1.04%-6.38% | ? | (9,619,871,357) | ? | 5.37% ~ 7.18% | ? | (2,629,571,879) |
| - Long-term loans | 3.00%~6.38% | ? | (48,063,121,220) | ? | 1.04% ~ 7.18% | ? | (36,295,501,114) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (29,155,296,283) | ? | ? | ? | (11,865,344,317) |
(b) Sensitivity analysis
As at 31 December 2019, it is estimated that a general increase/decrease of 100 basispoints in interest rates of variable rate instrument, with all other variables held constant,would decrease/increase the Group’s net profit and equity by RMB 251,370,000 (2018:
RMB 104,380,000).
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 thenet profit and equity is estimated as an annualised impact on interest expense orincome of such a change in interest rates. The analysis is performed on the same basisfor the previous year.
(4) Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loansand other assets and liabilities denominated in foreign currencies other than the functionalcurrency, the Group ensures that its net exposure is kept to an acceptable level by buying orselling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognized
foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 1,791,577,868 (2018 net liabilitiesexposure: USD 2,098,686,634), translated into RMB 12,498,405,521 (2018: RMB14,403,706,106), using the spot rate at the balance sheet date. Differences resultingfrom the translation of the financial statements denominated in foreign currency areexcluded.
(b) The following are the exchange rates for Renminbi against US dollar applied by the
Group:
| ? | Average rate | ? | Reporting date mid-spot rate | ||||
| ? | 2019 | ? | 2018 | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| USD | 6.9197 | ? | 6.6987 | ? | 6.9762 | ? | 6.8632 |
Assuming all other risk variables remained constant, a 5% strengthening/weakening ofthe Renminbi against the US dollar at 31 December would have increased/decreasedboth the Group’s equity and net profit by the amount RMB 197,336,145 (2018: RMB506,911,356).
The sensitivity analysis above assumes that the change in foreign exchange rates hadbeen applied to re-measure those financial instruments held by the Group whichexpose the Group to foreign currency risk at the balance sheet date. The analysisexcludes differences that would result from the translation of the financial statementsdenominated in foreign currency. The analysis is performed on the same basis for theprevious year.
(5) Other price risks
Other price risks include stock price risk, commodity price risk and others.
VIII. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the endof the 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 in whichfair value measurement is categorised is determined by the level of the fair value hierarchy ofthe lowest level input that is significant to the entire fair value measurement. The levels ofinputs are defined as follows:
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 2019 | ||||||
| Assets | Notes | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | - | - | 5,809,184,994 | ? | 5,809,184,994 | |||
| Including: Wealth management products | V.2 | - | - | 5,809,184,994 | ? | 5,809,184,994 | ||
| - Investments in other equity instruments | V.12 | 300,124,974 | - | 331,951,673 | ? | 632,076,647 | ||
| ? | ? | ? | ? | ? | ? | ? | ||
| Total assets measured at fair value on a recurring basis | ? | 300,124,974 | - | 6,141,136,667 | ? | 6,441,261,641 | ||
??
| ? | ? | 31 December 2018 | ||||||
| Assets | Notes | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Wealth management products | V.9 | - | ? | - | ? | 5,534,413,566 | ? | 5,534,413,566 |
| - Available-for-sale financial assets | V.10 | ? | ? | ? | ? | - | ? | - |
| Including: Debt instruments | ? | - | ? | - | ? | 12,866,432 | ? | 12,866,432 |
| Equity instruments | ? | 378,636,117 | ? | - | ? | - | ? | 378,636,117 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 378,636,117 | ? | - | ? | 5,547,279,998 | ? | 5,925,916,115 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Equity of redemption terms-Swap obligation | ? | - | ? | - | ? | (71,000,000) | ? | (71,000,000) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total liabilities measured at fair value on a recurring basis | ? | - | ? | - | ? | (71,000,000) | ? | (71,000,000) |
2 Basis of 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 3
Financial assets held for trading at recurring fair value within Level 3 are bank wealthmanagement products. For wealth management products measured at fair value, the fairvalue is determined based on the discounted cash flow method.
Investments in other equity instruments at recurring fair value within Level 3 are unlistedequity investments held by the Group, including:
(i) For those who raised a new round of financing in 2019, the Group used the financing priceas 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 of fairvalue for measurement.
On 31 December 2018, the fair value of available-for-sale equity instruments and available-for-sale debt instruments is determined by market price on the balance sheet date. The fairvalue of financial products is determined using discounted cash flow method,whose amortised cost is not significantly different from the fair value on the balance sheetdate. The fair value of Equity of redemption terms-Swap obligation is determined by MonteCarlo method.
4 During 2019, there were no changes in valuation technique of fair value. As at 31 December,
there were no significant discrepancies between the book value and fair value of all thefinancial assets and financial liabilities except the above assets measured at fair value andthe non-current assets held for sale presented in Note V.8.
IX. 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. | No. 12, Jiuxianqiao Road Chaoyang District, Beijing | ? | Operation and management of state-owned assets within authorization, etc. | ? | RMB 2,418,350,000 | ? | 0.79% | ? | 27.85% | ? | Yes |
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VI.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:
?
Name of entity
| Name of entity | Relationship with the Company |
| ? | ? |
| TPV Display Technology (China) Limited | Associate of the Group and the Company |
| Beijing Xindongneng Investment Management Co., Ltd. | Associate of the Group and the Company |
| Shenzhen Yunyinggu Technology Co., Ltd. | Associate of the Group and the Company |
| Beijing Nittan Electronic Co., Ltd. | Associate of the Group and the Company |
| Beijing Zhonglianhe Ultra HD Collaborative Technology Center Co., Ltd. | Associate of the Group |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | Associate of the Group |
| Cnoga Medical Ltd. | Associate of the Group |
4 Information on other related parties
| Name of other related parties | Related party relationship |
| ? | ? |
| Beijng NAURA Microelectronics Equipment Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Yandong Microelectronic Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Dongdian Industrial Development Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Sevenstar PV Group Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Sevenstar Semiconductor Technologies Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| NAURA Technology Group Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Zhaowei Electronic Group Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Zhaowei Technology Development Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing BBEF Science & Technology Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing C&W Intelligent Equipment Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| New Vision Micro.(Hong Kong) Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Ether Electronics Group Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Yansong Economic and Trade Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing BOE Investment Development Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Ripeness Sanyuan Instrumentation Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Electronics ST (Jiangsu) Technology Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Yandong Microelectronic Technology Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| Beijing Electronics Holding Jiuyi Industrial Development Co., Ltd. | Enterprises that are controlled by the Company’s ultimate holding company |
| BAIC Motor Corporation., Ltd. | Other related parties |
| China United Network Communications Limited | Other related parties |
| Hefei ESWIN IC Technology Co., Ltd | Other related parties |
| Chengdu ESWIN IC Design Co., Ltd. | Other related parties |
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial termsor agreements.
(1) Purchase of goods, equipments, and receiving of services (excluding remuneration of key
management personnel)
The Group
| Nature of transaction | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Purchase of goods | 480,284,012 | ? | 141,966,350 |
| Procurement of equipment | 397,005,152 | ? | 601,680,874 |
| Receiving services | 17,744,265 | ? | 19,901,930 |
| ? | ? | ? | ? |
| Total | 895,033,429 | ? | 763,549,154 |
The Company
?
Nature of transaction
| Nature of transaction | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Purchase of goods | 12,379,363 | ? | 11,854,329 |
| Receiving services | 844,688,884 | ? | 96,670,167 |
| Payment of interest expenses | 65,689,459 | ? | 544,410,236 |
| ? | ? | ? | ? |
| Total | 922,757,706 | ? | 652,934,732 |
(2) Sale of goods/rendering of services
The Goup
?
Nature of transaction
| Nature of transaction | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Sales of goods | 2,846,583 | ? | 45,676,373 |
| Rendering of services | 4,670,427 | ? | 10,166,253 |
| ? | ? | ? | ? |
| Total | 7,517,010 | ? | 55,842,626 |
The Company
| Nature of transaction | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Rendering of services | 4,635,072,473 | ? | 3,864,353,230 |
| Interest income received | 318,036 | ? | 511,825 |
| ? | ? | ? | ? |
| Total | 4,635,390,509 | ? | 3,864,865,055 |
(3) Leases
(a) As the lessor
The Group
?Type of assets leased
| Type of assets leased | Lease income recognized in 2019 | ? | Lease income recognized in 2018 |
| ? | ? | ? | ? |
| Investment properties | 1,176,283 | ? | 2,485,506 |
The Company
?Type of assets leased
| Type of assets leased | Lease income recognized in 2019 | ? | Lease income recognized in 2018 |
| ? | ? | ? | ? |
| Investment properties | 63,700,904 | ? | 17,972,397 |
(b) As the lessee
The Group
?
Type of assets leased
| Type of assets leased | Lease expense recognized in 2019 | ? | Lease expense recognized in 2018 |
| ? | ? | ? | ? |
| Fixed assets | 3,082,942 | ? | 2,441,711 |
The Company
| Type of assets leased | Lease expense recognized in 2019 | ? | Lease expense recognized in 2018 |
| ? | ? | ? | ? |
| Fixed assets | - | ? | 1,936,219 |
(4) Funding from related party
The Company
?Name of related party
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds from | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 500,000,000 | ? | 28/05/2019 | ? | 31/12/2020 |
| Subsidiary of the parent company | 500,000,000 | ? | 13/09/2015 | ? | Non-fixed term |
| Subsidiary of the parent company | 2,000,000,000 | ? | 09/06/2017 | ? | 31/12/2020 |
| Subsidiary of the parent company | 700,000,000 | ? | 13/04/2018 | ? | 31/12/2020 |
| Subsidiary of the parent company | 1,600,000,000 | ? | 27/05/2019 | ? | 31/12/2020 |
| Subsidiary of the parent company | 1,200,000,000 | ? | 30/09/2015 | ? | Non-fixed term |
| Subsidiary of the parent company | 650,000,000 | ? | 25/04/2018 | ? | 31/12/2020 |
| Subsidiary of the parent company | 3,500,000,000 | ? | 01/08/2018 | ? | 01/08/2023 |
| Subsidiary of the parent company | 1,500,000,000 | ? | 24/05/2019 | ? | 31/12/2020 |
| Subsidiary of the parent company | 200,000,000 | ? | 28/07/2017 | ? | 31/12/2020 |
| Subsidiary of the parent company | 1,600,000,000 | ? | 04/12/2017 | ? | 31/12/2020 |
| Subsidiary of the parent company | 3,800,000,000 | ? | 19/07/2018 | ? | 19/07/2023 |
| Subsidiary of the parent company | 800,000,000 | ? | 26/07/2019 | ? | 31/12/2020 |
| Subsidiary of the parent company | 4,000,000,000 | ? | 09/06/2017 | ? | 31/12/2020 |
| Subsidiary of the parent company | 1,000,000,000 | ? | 23/12/2016 | ? | 31/12/2020 |
| Subsidiary of the parent company | 3,000,000,000 | ? | 27/04/2018 | ? | 31/12/2020 |
| Subsidiary of the parent company | 2,370,579,024 | ? | 31/08/2018 | ? | 19/12/2023 |
| Subsidiary of the parent company | 3,000,000,000 | ? | 28/05/2018 | ? | 28/05/2023 |
| Subsidiary of the parent company | 1,200,000,000 | ? | 21/05/2019 | ? | 31/12/2020 |
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds to | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 50,000,000 | ? | 27/03/2015 | ? | 26/12/2021 |
| Subsidiary of the parent company | 30,000,000 | ? | 21/01/2016 | ? | 21/01/2022 |
| Subsidiary of the parent company | 5,000,000 | ? | 19/08/2016 | ? | Non-fixed term |
| Subsidiary of the parent company | 2,000,000 | ? | 16/12/2016 | ? | Non-fixed term |
| Subsidiary of the parent company | 100,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 150,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 50,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 800,000,000 | ? | 17/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 550,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 250,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 350,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 50,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 150,000,000 | ? | 25/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 400,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 120,000,000 | ? | 24/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 180,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
(5) Remuneration of key management personnel
The Group and the Company
?
Item
| Item | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Remuneration of key management personnel | 49,799,000 | ? | 65,765,000 |
6 Receivables from and payables to related parties
Receivables from related parties
The Group
??
| ? | 2019 | ? | 2018 | ||||
| Item | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | 1,960,247 | ? | - | ? | 52,246 | ? | - |
| Prepayments | 2,259,308 | ? | - | ? | 2,814,000 | ? | - |
| Other receivables | 603,515 | ? | - | ? | 12,148 | ? | - |
The Company
| ? | 2019 | ? | 2018 | ||||
| Item | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | 659,753,039 | ? | 14,979,329 | ? | 36,108,800 | ? | 473,228 |
| Prepayments | 833,053 | ? | - | ? | 79,660 | ? | - |
| Dividends receivable | 941,634,611 | ? | - | ? | 14,115,915 | ? | - |
| Other receivables | 3,889,934,009 | ? | 41,038,073 | ? | 1,967,828,693 | ? | - |
| Other non-current assets | 156,920,400 | ? | - | ? | 280,000,000 | ? | - |
| Non-current assets due within one year | - | ? | - | ? | 450,000,000 | ? | - |
Payables to related parties
The Group
?
Item
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 77,847,042 | ? | 30,361,810 |
| Advance payments received | ? | 60,990 | ? | 1,111 |
| Other payables | ? | 166,424,203 | ? | 294,554,788 |
The Company
?
Item
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 1,093,063 | ? | 3,119,036 |
| Advance payments received | ? | 2,108,152,470 | ? | 1,563,300,806 |
| Other payables | ? | 4,739,212,844 | ? | 7,690,814,090 |
| Other non-current liabilities | ? | 33,297,240,830 | ? | 20,954,104,125 |
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:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Procurement of equipment | ? | 133,794,504 | ? | 370,768,209 |
X. Capital management
The Group’s primary objectives when managing capital are 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 risk and by securing access tofinance 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. Factors for the Group’s consideration include: its futurefunding requirements, capital efficiency, actual and expected profitability, expected cashflows, and expected capital expenditure. Adjustments are made to the capital structure inlight 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 2018. 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 2019 and 31 December 2018, the Group’s asset-liability ratios are asfollows:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Asset-liability ratio | ? | 58.56% | ? | 60.41% |
Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.
XI. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
?The Group
| The Group | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | ? | 59,347,872,614 | ? | 61,515,573,632 |
| Contracts authorized but not entered into | ? | 102,974,551,619 | ? | 84,789,129,465 |
| ? | ? | ? | ? | ? |
| Total | ? | 162,322,424,233 | ? | 146,304,703,097 |
The Group’s contracts authorised but not entered into mainly included the fixed assets thatChongqing Display Technology, Fuzhou BOE Display, Health Investment and Wuhan BOEplanned to purchase in subsequent years and project equipment that the Group planned topurchase in subsequent years.
| The Company | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed Total | ? | 36,732,291,172 | ? | 39,666,849,756 |
The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Chongqing Display Technology, Fuzhou BOE Display,Health Investment and Wuhan BOE.
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under non-cancellableoperating leases of the Group‘s properties were payable as follows:
?Item
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 56,919,248 | ? | 53,187,055 |
| After 1 year but within 2 years (inclusive) | ? | 34,440,482 | ? | 30,220,405 |
| After 2 years but within 3 years (inclusive) | ? | 31,151,809 | ? | 21,345,206 |
| Over 3 years | ? | 61,129,358 | ? | 82,499,050 |
| ? | ? | ? | ? | ? |
| Total | ? | 183,640,897 | ? | 187,251,716 |
As at 31 December 2019, the Company had no significant operating lease commitments.
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2019, the Group did not have guarantees provided for externalenterprises.
(2) The Company as the guarantor
On 31 December 2019, Chengdu Optoelectronics used the land use right with the carryingamount of RMB 42,097,694, the construction in progress of RMB 14,770,912,709, themachinery and equipment of RMB 13,141,613,512 and its plant and buildings of RMB2,392,317,974 as collateral to obtain long-term loans of USD 712,000,000 and RMB14,000,000,000, the Company provides joint and several liability guarantee for the aboveloans. In addition, the Company also provides joint and several liability guarantee for theletter of credit issued but not accepted of USD 15,294,879 and JPY 569,940,000 and thelong-term guarantee letter of issued but not accepted of RMB 1,719,500,000.
On 31 December 2019, Yuansheng Optoelectronics used its plant and buildings with thecarrying amount of RMB 2,267,182,300, machinery and equipment of RMB 11,205,995,635and the land use right of RMB 46,724,309 as collateral to obtain long-term loans of RMB3,600,000,000, the Company provides joint and several liability guarantee for the aboveloans.
On 31 December 2019, Hefei Xinsheng used the land use right with the carrying amount ofRMB 116,727,860, its plant and buildings of RMB 3,551,280,865 and its equipment of RMB5,497,655,251 as collateral to obtain long-term loans due within 1 year of USD 418,260,000and the long-term loans of USD 402,180,000, the Company provides joint and severalliability guarantee for the above loans.
On 31 December 2019, Chongqing BOE Display used the land use right with the carryingamount of RMB 135,431,145 and its machineries and buildings of RMB 12,220,493,020 ascollateral, and also used its deposit receipt of USD 7,500,000 as pledge to obtain long-termloans of USD 952,030,000 and RMB 637,300,000, the Company provides joint and severalliability guarantee for the above loans.
On 31 December 2019, Fuzhou BOE used the land use right with the carrying amount ofRMB 211,688,367, the machinery and equipment of RMB 13,674,922,143 and theconstruction in progress of RMB 264,633,031 as collateral to obtain long-term loans of USD933,000,000 and RMB 5,250,670,000, the Company provides joint and several liabilityguarantee for the above loans. In addition, the Company also provides joint and severalliability guarantee for the long-term letter of guarantee issued but not accepted of RMB1,320,000,000.
On 31 December 2019, Hefei Display Technology used the land use right with the carryingamount of RMB 293,021,262, the plant and buildings of RMB 4,342,039,221 and machineryand equipment of RMB 21,939,732,132 as collateral to obtain long-term loans of USD1,470,800,000 and RMB 5,001,721,200, the Company provides joint and several liabilityguarantee for the above loans. In addition, the Company also provides joint and severalliability guarantee for the letter of credit issued but not accepted of JPY 2,729,040,000.
On 31 December 2019, Mianyang BOE used the land use right with the carrying amount ofRMB 392,595,952, the plant and buildings of RMB 472,566,951, the machinery andequipment of RMB 146,684,699 and the construction in progress of RMB 25,199,606,849 ascollateral to obtain long-term loans of USD 385,000,000 and RMB 12,300,000,000, thecompany provides joint and several liability guarantee for the above loans. In addition, thecompany also provides joint and several liability guarantee for the letter of credit issued butnot accepted of USD 164,363,778 and JPY 311,570,000 and the long-term letter ofguarantee issued but not accepted of RMB 1,800,000,000.
On 31 December 2019, Wuhan BOE used the machinery and equipment with the carryingamount of RMB 160,883,379, the land use right of RMB 260,167,834 and the construction inprogress of RMB 16,530,866,018 as collateral to obtain long-term loans of USD 330,000,000and RMB 4,000,000,000, the Company provides joint and several liability guarantee for theabove loans. In addition, the Company also provides joint and several liability guarantee forthe letter of credit issued but not accepted of USD 114,956,888 and JPY 9,515,590,800.
XII. Subsequent events
On 28 February 2020, the Company has completed the public issuance of corporate bonds(first phase) (plague prevention bonds) to qualified investors, the short name of the bond is“20BOEY1”, with a total of RMB 2 billion, and the nominal interest rate is 3.64%.
On 19 March 2020, the Company has completed the public issuance of corporate bonds(second phase) (plague prevention bonds) to qualified investors, the short name of the bondis “20BOEY2”, with a total of RMB 2 billion, and the nominal interest rate is 3.54%.
Both ‘20BOEY1’ and ‘20BOEY2’ have 3 interest-bearing years as a cycle. At the end of eachcycle, the Company has the right to extend the bond period by 1 cycle (i.e. 3 years) orchoose to fully pay the bond at the end of the cycle. The nominal interest rate of the bond isfixed in the first period, and then resets every period thereafter. The nominal interest rate inthe first period is the initial benchmark rate plus the initial spread, and the nominal interestrate in the subsequent period is adjusted to the current benchmark rate plus the initial spreadplus 300 basis points. Therefore, when the Company exercises the renewal option, thenominal interest rate will increase sharply, and the corresponding nominal interest will alsoincrease significantly. Both ‘20BOEY1’ and ‘20BOEY2’ set the right for the issuers to delaythe payment of interest. At every interest payment day, the Company can choose to delay thecurrent interest to next interest payment day along with the accumulated interests delayedunder this term, with no restrictions to how many times interests have been delayed, unlessmandatory interest payment event is triggered (including dividends-payment to oridinaryshareholders or reducing registered capital). The Company classified the bonds to otherequity instruments at the total issuing amount lessing the related transaction fees as thesebonds don not meet the definition of financial liabilities.
On 22 April 2020, the Company announced that they are planning to issue to qualifiedinvestors the corporate bonds (third phase) (plague prevention bonds), the short name of thebond is “20BOEY3”, with a total of no more than RMB 2 billion, the issue is now in progress.
XIII. Segment reporting
(1) Segment reporting considerations
The Group management reviews the operation performance and allocates resourcesaccording to the business segments below.
(a) Display and Sensor Devices — This business mainly leading the innovation and
development of TFT-LCD technologies, has been committed to speeding up thedevelopment of AMOLED, flexible display, VR/AR and other new display devices andsensors, promoting the development of gene sequencing, molecular antenna, multi-sign sensor, photoelectric sensing, fingerprint identification and security, and upgradinginformation exchange ports and related sensors on the basis of the display, so as tooffer better products and services in smart phones, tablet PCs, laptops, displays,televisions, industrial control, health care, VR/AR and other applications.
(b) Smart systems — This business mainly expanding its business in digital art exhibition,
supermarket retailing services, financial retailing services, smart equipment design andmanufacturing services, photovoltaic facilities construction and operation &maintenance, vehicle-based display and Internet of Vehicles (IoV). It provides smartsolutions for smart retailing, smart manufacturing services, smart energy and smartInternet of Vehicles.
(c) Healthcare service — This business mainly dedicate to integrate the accumulated four
core technologies - display, sensor, artificial intelligence and large data with medicaland life science, leading to the integration of medical-manufacturing innovation,building the innovation platform including artificial intelligence, life data detection, cellengineering, medical technology innovation transformation, focusing on thedevelopment of mobile health, digital hospitals, regenerative medicine and health parkfour business, providing intelligent port products and professional services for humanhealth.
(d) Others — Other service mainly includes technical development service and patent
maintenance service.
The main reason to separate the segments is that the Group independently managesthe port devices business, the smart IoT business, and healthcare service businessesand other businesses. Because the business segments manufacture and distributedifferent products, apply different manufacturing processes and specifies in grossprofit, the business segments are managed independently. The management evaluatesthe performance and allocates resources according to the profit of each businesssegment and does not take financing cost and investment income into account.
(2) Accounting policy for the measurements of segment profit or loss, assets and liabilities
For the purposes of assessing segment performance and allocating resources betweensegments, the Group’s management regularly reviews the assets, liabilities, revenue,expenses and financial performance, attributable to each reportable segment on thefollowing bases:
Segment assets include all tangible, intangible, other non-current and current assets, suchas accounts receivable, with the exception of deferred tax assets and other unallocatedcorporate assets. Segment liabilities include payables, bank borrowings and other long-termliabilities attributable to the individual segments, but exclude deferred tax liabilities and otherunallocated corporate liabilities.
Segment financial performance is operating income (including operating income fromexternal customers and inter-segment operating income) after deducting expenses,depreciation, amortisation, impairment losses, gains or losses from changes in fair value,investment gain, non-operating income and expenses and income tax expenses attributableto the individual segments. The transfer pricing of inter-segment sales are determined withreference to prices charged to external parties for similar orders.
| 2019 | |||||||||||||
| Port devices business | ? | Smart IoT business | ? | Healthcare business | ? | Others | ? | Elimination | ? | Remaining items? | ? | Total | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Operating income | 106,482,397,172 | 16,730,993,983 | 1,357,484,751 | 5,262,960,973 | (13,774,246,715) | - | 116,059,590,164 | ||||||
| Including: Operating income from external customers | 100,778,601,586 | 13,935,054,419 | 1,345,934,159 | - | - | - | 116,059,590,164 | ||||||
| Inter-segment operating income | 5,703,795,586 | 2,795,939,564 | 11,550,592 | 5,262,960,973 | (13,774,246,715) | - | - | ||||||
| Operating cost | 108,008,780,569 | 16,594,242,232 | 1,123,629,522 | 3,785,333,911 | (13,733,637,535) | (117,427,516) | 115,660,921,183 | ||||||
| Operating profit/(loss) | (1,526,383,397) | 136,751,751 | 233,855,229 | 1,477,627,062 | (40,609,180) | 117,427,516 | 398,668,981 | ||||||
| Total profit/(loss) | (1,393,005,461) | 104,921,003 | 242,071,137 | 1,472,945,085 | (40,609,179) | 117,427,516 | 503,750,101 | ||||||
| Income tax expense | 380,914,122 | 8,143,666 | 135,651,930 | 230,811,042 | 224,470,744 | - | 979,991,504 | ||||||
| Net profit/(Net loss) | (1,773,919,583) | 96,777,337 | 106,419,207 | 1,242,134,043 | (265,079,923) | 117,427,516 | (476,241,403) | ||||||
| ? | |||||||||||||
| Total assets | 350,305,878,604 | 19,415,889,134 | 5,441,026,033 | 173,127,013,027 | (208,125,757,251) | 248,153,761 | 340,412,203,308 | ||||||
| Total liabilities | 148,276,976,000 | 9,552,989,323 | 1,818,817,378 | 123,295,513,891 | (85,041,615,615) | 1,451,825,357 | 199,354,506,334 | ||||||
| ? | |||||||||||||
| Other items: | |||||||||||||
| - Impairment losses for the current period | 2,000,077,299 | 343,287,595 | 97,024 | 272,721,340 | (32,000,000) | - | 2,584,183,258 | ||||||
| - Depreciation and amortization expenses | 18,470,214,433 | 542,273,031 | 162,767,435 | 407,624,581 | (413,244,169) | - | 19,169,635,311 | ||||||
| - Long-term equity investments in associates | - | - | - | 2,718,037,934 | - | - | 2,718,037,934 | ||||||
| - Capital outlay | 45,706,204,449 | 1,945,555,530 | 1,388,008,828 | 1,448,025,153 | (264,404,946) | - | 50,223,389,014 | ||||||
| - Losses from investment in associates and joint ventures | - | - | - | 200,020,686 | - | - | 200,020,686 | ||||||
| - Net interest expenses | 2,015,878,182 | 251,235,580 | 28,042,780 | 468,441,166 | - | (155,827,999) | 2,607,769,709 | ||||||
| 2018 | |||||||||||||
| Port devices business | ? | Smart IoT business | ? | Healthcare business | ? | Others | ? | Elimination | ? | Remaining items | ? | Total | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Operating income | 86,688,426,362 | ? | 17,499,500,352 | ? | 1,151,844,468 | ? | 3,569,024,583 | ? | (11,799,930,830) | ? | - | ? | 97,108,864,935 |
| Including: Operating income from external customers | 81,265,815,692 | ? | 14,734,461,467 | ? | 1,108,587,776 | ? | - | ? | - | ? | - | ? | 97,108,864,935 |
| Inter-segment operating income | 5,422,610,670 | ? | 2,765,038,885 | ? | 43,256,692 | ? | 3,569,024,583 | ? | (11,799,930,830) | ? | - | ? | - |
| Operating cost | 83,077,714,485 | ? | 17,397,663,021 | ? | 862,984,461 | ? | 2,197,359,466 | ? | (11,483,372,588) | ? | 1,048,345,187 | ? | 93,100,694,032 |
| Operating profit/(loss) | 3,610,711,877 | ? | 101,837,331 | ? | 288,860,007 | ? | 1,371,665,117 | ? | (316,558,242) | ? | (1,048,345,187) | ? | 4,008,170,903 |
| Total profit/(loss) | 3,718,100,703 | ? | 106,837,228 | ? | 296,075,661 | ? | 1,366,180,004 | ? | (316,558,242) | ? | (1,048,345,187) | ? | 4,122,290,167 |
| Income tax expense | 624,917,163 | ? | 16,151,805 | ? | 90,102,577 | ? | 234,879,588 | ? | 276,364,961 | ? | - | ? | 1,242,416,094 |
| Net profit/(Net loss) | 3,093,183,540 | ? | 90,685,423 | ? | 205,973,084 | ? | 1,131,300,416 | ? | (592,923,203) | ? | (1,048,345,187) | ? | 2,879,874,073 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets | 306,849,853,351 | ? | 21,967,564,757 | ? | 5,852,144,685 | ? | 151,623,442,496 | ? | (182,516,887,526) | ? | 252,373,622 | ? | 304,028,491,385 |
| Total liabilities | 122,453,918,956 | ? | 13,679,315,017 | ? | 2,384,123,956 | ? | 103,650,272,046 | ? | (59,915,809,696) | ? | 1,419,373,545 | ? | 183,671,193,824 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Other items: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Impairment losses for the current period | 1,198,177,937 | ? | 39,528,417 | ? | 1,882,409 | ? | - | ? | - | ? | - | ? | 1,239,588,763 |
| - Depreciation and amortization expenses | 13,511,852,315 | ? | 507,380,278 | ? | 92,219,472 | ? | 238,099,764 | ? | (156,607,616) | ? | - | ? | 14,192,944,213 |
| - Long-term equity investments in associates | - | ? | - | ? | - | ? | 2,389,166,886 | ? | - | ? | - | ? | 2,389,166,886 |
| - Capital outlay | 55,330,404,250 | ? | 1,672,461,272 | ? | 815,566,097 | ? | 232,876,486 | ? | (283,237,527) | ? | - | ? | 57,768,070,578 |
| - Losses from investment in associates and joint ventures | - | ? | - | ? | - | ? | (13,925,731) | ? | - | ? | - | ? | (13,925,731) |
| - Net interest expenses | 2,409,003,425 | ? | 161,469,304 | ? | 9,616,358 | ? | 197,583,788 | ? | - | ? | 623,009,190 | ? | 3,400,682,065 |
(3) Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods.
The information of the Group’s external transactions based by locations is as follows:
| ? | ? | Operating income from external customers | ||
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Chinese mainland | ? | 59,444,025,767 | ? | 42,942,349,994 |
| Other Asian countries and regions | ? | 45,030,859,656 | ? | 44,256,356,951 |
| Europe | ? | 4,511,337,220 | ? | 3,488,264,284 |
| America | ? | 6,911,922,720 | ? | 6,354,884,816 |
| Other regions | ? | 161,444,801 | ? | 67,008,890 |
| ? | ? | ? | ? | ? |
| Total | ? | 116,059,590,164 | ? | 97,108,864,935 |
(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 whichthey are allocated, in the case of intangible assets and goodwill; and the location ofoperations, in the case of interests in associates and jointly controlled enterprises. Mostof the non-current assets in the Group are located in Chinese mainland.
(4) Major customers
Operating income of Display and Sensor Devices from which is over 10% of the Group’s totaloperating income ended up with two customers. The operating income from these customersrepresented RMB 30,980,334,746 (2018: RMB 16,287,833,781), which was approximately27% (2018: 17%) of the Group’s total operating income.
XIV. Notes of financial statements of the Company
1 Cash at bank and on hand
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash on hand: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | - | ? | ? | ? | ? | ? | 339 |
| USD | 5 | ? | 6.9762 | ? | 35 | ? | 5 | ? | 6.8632 | ? | 34 |
| HKD | 165 | ? | 0.8958 | ? | 148 | ? | 165 | ? | 0.8762 | ? | 145 |
| JPY | 51,325 | ? | 0.0641 | ? | 3,290 | ? | 51,325 | ? | 0.0619 | ? | 3,176 |
| KRW | 420,000 | ? | 0.0060 | ? | 2,520 | ? | 420,000 | ? | 0.0061 | ? | 2,562 |
| Other foreign currencies | ? | ? | ? | ? | 16,943 | ? | ? | ? | ? | ? | 16,337 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 22,936 | ? | ? | ? | ? | ? | 22,593 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank deposits: | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 1,355,519,593 | ? | ? | ? | ? | ? | 1,333,209,249 |
| USD | 333,055,313 | ? | 6.9762 | ? | 2,323,460,475 | ? | 363,428,749 | ? | 6.8632 | ? | 2,494,284,193 |
| HKD | 1,972,588 | ? | 0.8958 | ? | 1,767,044 | ? | 2,622,706 | ? | 0.8762 | ? | 2,298,015 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 3,680,747,112 | ? | ? | ? | ? | ? | 3,829,791,457 |
| ? | |||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 3,680,770,048 | ? | ? | ? | ? | ? | 3,829,814,050 |
Including: Total overseas deposits were equivalent to RMB 161,168 (2018: RMB 158,521).
2 Accounts receivable
(1) The Company’s accounts receivable by customer type:
?
?
| ? | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Amounts due from subsidiaries | ? | 659,753,039 | ? | 36,108,800 | ? | 36,108,800 |
| Amounts due from other customers | ? | 7,044,176 | ? | 3,733,689 | ? | 3,733,689 |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 666,797,215 | ? | 39,842,489 | ? | 39,842,489 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 20,264,100 | ? | 2,889,866 | ? | 2,889,866 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 646,533,115 | ? | 36,952,623 | ? | 36,952,623 |
(2) The ageing analysis of accounts receivable is as follows:
| Ageing | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 646,534,878 | ? | 3,889,195 |
| 1 to 2 years (inclusive) | ? | 2,866,370 | ? | - |
| 2 to 3 years (inclusive) | ? | - | ? | - |
| Over 3 years | ? | 17,395,967 | ? | 35,953,294 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 666,797,215 | ? | 39,842,489 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 20,264,100 | ? | 2,889,866 |
| ? | ? | ? | ? | ? |
| Total | ? | 646,533,115 | ? | 36,952,623 |
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by category
??
| ? | ? | 2019 | ||||||||
| ? | ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | ? | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | ? | 5,283,008 | ? | 1% | ? | 5,283,008 | ? | 100% | ? | - |
| - Customers with low credit risk | ? | 660,348,948 | ? | 99% | ? | 14,979,329 | ? | 2% | ? | 645,369,619 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | ? | 1,165,259 | ? | - | ? | 1,763 | ? | - | ? | 1,163,496 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 666,797,215 | ? | 100% | ? | 20,264,100 | ? | 3% | ? | 646,533,115 |
??
| ? | ? | 2018 | ||||||||
| ? | ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | ? | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivables that are collectively assessed for impairment based on credit risk characteristics | ? | 2,416,638 | ? | 6% | ? | 2,416,638 | ? | 100% | ? | - |
| Individually insignificant but assessed for impairment individually | ? | 37,425,851 | ? | 94% | ? | 473,228 | ? | 1% | ? | 36,952,623 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | 39,842,489 | ? | 100% | ? | 2,889,866 | ? | 7% | ? | 36,952,623 |
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | 2,889,866 | ? | 2,889,866 |
| Adjustment on initial application of the new financial instrument standards | ? | - | ? | -? |
| Balance at the beginning of the year after adjustment | ? | 2,889,866 | ? | 2,889,866 |
| Charge during the year | ? | 17,416,444 | ? | - |
| Written-off during the year | ? | 42,210 | ? | - |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 20,264,100 | ? | 2,889,866 |
For the year ended 31 December 2019, the Company had no individually significant write-offor recovery of doubtful debts which had been fully or substantially made in prior years.
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 535,748,206,amounting to 80% 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.
3 Other receivables
??
| ? | Note | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Interest receivable | ? | 11,884,080 | ? | 9,659,279 | ? | 9,659,279 |
| Dividends receivable | (1) | 941,634,611 | ? | 14,115,915 | ? | 14,115,915 |
| Others | (2) | 3,873,879,403 | ? | 1,992,053,266 | ? | 1,992,053,266 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 4,827,398,094 | ? | 2,015,828,460 | ? | 2,015,828,460 |
(1) Dividends receivable
?
?
| ? | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Yinghe Century | ? | 572,694,778 | ? | 8,204,147 | ? | 8,204,147 |
| Hefei BOE | ? | 350,000,000 | ? | - | ? | - |
| Beijing BOE Land Co., Ltd. | ? | 18,939,833 | ? | - | ? | - |
| Vacuum Electronics | ? | - | ? | 2,200,000 | ? | 2,200,000 |
| Beijing Electronics Zone Investment and Development Co., Ltd. | ? | - | ? | 3,711,768 | ? | 3,711,768 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 941,634,611 | ? | 14,115,915 | ? | 14,115,915 |
(2) Others
(a) The Company’s other receivables by customer type:
| Customer type | ? | 31 December 2019 | ? | 1 January 2019 | ? | 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? |
| Amounts due from subsidiaries | ? | 3,889,330,494 | ? | 1,967,828,693 | ? | 1,967,828,693 |
| Amounts due from other related parties | ? | 603,515 | ? | - | ? | - |
| Amounts due from other customers | ? | 28,545,610 | ? | 24,224,573 | ? | 24,224,573 |
| ? | ? | ? | ? | |||
| Sub-total | ? | 3,918,479,619 | ? | 1,992,053,266 | ? | 1,992,053,266 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 44,600,216 | ? | - | ? | -? |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,873,879,403 | ? | 1,992,053,266 | ? | 1,992,053,266 |
(b) The Company’s other receivables by currency:
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 3,918,456,962 | ? | ? | ? | ? | ? | 1,992,041,781 |
| HKD | 25,293 | ? | 0.8958 | ? | 22,657 | ? | 13,107 | ? | 0.8762 | ? | 11,485 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 3,918,479,619 | ? | ? | ? | ? | ? | 1,992,053,266 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 44,600,216 | ? | ? | ? | ? | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 3,873,879,403 | ? | ? | ? | ? | ? | 1,992,053,266 |
(c) The ageing analysis of other receivables of the Company is as follows:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 3,722,971,295 | ? | 1,649,255,313 |
| 1 to 2 years (inclusive) | ? | 59,484,488 | ? | 94,152,814 |
| 2 to 3 years (inclusive) | ? | 56,743,629 | ? | 11,422,640 |
| Over 3 years | ? | 79,280,207 | ? | 237,222,499 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 3,918,479,619 | ? | 1,992,053,266 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 44,600,216 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 3,873,879,403 | ? | 1,992,053,266 |
The ageing is counted starting from the date when other receivable are recognised.
(d) Others by method of provisioning
| ? | ? | 2019 | ||||||||
| ? | ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | ? | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 44,600,216 | 1% | 44,600,216 | 100% | - | |||||
| Collective assessment | ? | 3,873,879,403 | ? | 99% | ? | - | ? | - | ? | 3,873,879,403 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,918,479,619 | ? | 100% | ? | 44,600,216 | ? | 1% | ? | 3,873,879,403 |
(e) Movements of provisions for bad and doubtful debts
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Balance under the previous financial instrument standards | ? | - | ? | - |
| Adjustment on initial application of the new financial instrument standards | ? | - | ? | ? |
| Balance at the beginning of the year after adjustment | ? | - | ? | - |
| Charge for the year | ? | 45,142,306 | ? | - |
| Written-off during the year | ? | 542,090 | ? | - |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 44,600,216 | ? | - |
(d) Other receivables categorized by nature
?
Nature
| Nature | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Transaction amount | ? | 3,889,330,494 | ? | 305,938,861 |
| Rent | ? | - | ? | 227,919,843 |
| Royalty fee | ? | - | ? | 1,441,130,049 |
| Others | ? | 29,149,125 | ? | 17,064,513 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 3,918,479,619 | ? | 1,992,053,266 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 44,600,216 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 3,873,879,403 | ? | 1,992,053,266 |
(e) 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 RMB 3,681,661,508 in total, most of which are borrowings and royaltyfees. No provision is made for bad and doubtful debts after assessment.
4 Other current assets
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 17,011,521 | ? | 1,127,650 |
| Others | ? | 92,486,376 | ? | 46,677,446 |
| ? | ? | ? | ? | ? |
| Total | ? | 109,497,897 | ? | 47,805,096 |
5 Long-term equity investments
(1) The Company’s long-term equity investments by category:
??
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Investments in subsidiaries | ? | 157,203,548,708 | ? | 141,883,775,023 |
| Investments in associates and joint ventures | ? | 2,278,316,052 | ? | 1,675,958,462 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 159,481,864,760 | ? | 143,559,733,485 |
| ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | 92,000,000 | ? | 60,000,000 |
| ? | ? | ? | ? | ? |
| Total | ? | 159,389,864,760 | ? | 143,499,733,485 |
In previous year, the Company provided full impairment losses for investments in itssubsidiary, Special Display, which amounted to RMB 60,000,000. In 2019, the Companyprovided the impairment provision of RMB 32,000,000 for its subsidiary – VacuumTechnology.
(2) Investments in subsidiaries:
| Subsidiary | Balance at the beginning of the year | ? | Increase during the year | ? | Decrease 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,172,288,084 | ? | - | ? | - | ? | 4,172,288,084 | ? | - | ? | - |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 19,283,149,991 | ? | 3,420,000,000 | ? | - | ? | 22,703,149,991 | ? | - | ? | - |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,000,000,000 | ? | - | ? | - | ? | 9,000,000,000 | ? | - | ? | - |
| Beijing BOE Display Technology Co., Ltd. | 17,418,713,599 | ? | - | ? | - | ? | 17,418,713,599 | ? | - | ? | - |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 16,575,150,000 | ? | 3,507,829,185 | ? | - | ? | 20,082,979,185 | ? | - | ? | - |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,804,000,000 | ? | - | ? | - | ? | 11,804,000,000 | ? | - | ? | - |
| Chongqing BOE Optoelectronics Co., Ltd. | 19,565,354,599 | ? | - | ? | - | ? | 19,565,354,599 | ? | - | ? | - |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 14,300,042,079 | ? | - | ? | - | ? | 14,300,042,079 | ? | - | ? | - |
| Beijing BOE Vision-electronic Technology Co., Ltd. | 3,020,000,000 | ? | 845,344,500 | ? | - | ? | 3,865,344,500 | ? | - | ? | - |
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,250,000 | ? | - | ? | - | ? | 19,250,000 | ? | - | ? | - |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000 | ? | - | ? | - | ? | 32,000,000 | ? | - | ? | 32,000,000 |
| Beijing BOE Special Display Technology Co., Ltd. | 100,000,000 | ? | - | ? | - | ? | 100,000,000 | ? | 60,000,000 | ? | 60,000,000 |
| Beijing Yinghe Century Co., Ltd. | 333,037,433 | ? | - | ? | - | ? | 333,037,433 | ? | - | ? | - |
| BOE Optical Science and Technology Co., Ltd. | 658,961,914 | ? | - | ? | - | ? | 658,961,914 | ? | - | ? | - |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 31,038,525 | ? | - | ? | - | ? | 31,038,525 | ? | - | ? | - |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,353,651,020 | ? | - | ? | - | ? | 1,353,651,020 | ? | - | ? | - |
| Beijing BOE multimedia Technology Co., Ltd. | 400,000,000 | ? | - | ? | - | ? | 400,000,000 | ? | - | ? | - |
| Beijing BOE Energy Technology Co., Ltd. | 850,000,000 | ? | - | ? | - | ? | 850,000,000 | ? | - | ? | - |
| Beijing BOE Life Technology Co., Ltd. | 10,000,000 | ? | - | ? | - | ? | 10,000,000 | ? | - | ? | - |
| Beijing Zhongxiangying Technology Co., Ltd. | 10,000,000 | ? | - | ? | - | ? | 10,000,000 | ? | - | ? | - |
| Erdos Haosheng Energy Investment Co., Ltd. | 2,000,000 | ? | - | ? | (2,000,000) | ? | - | ? | - | ? | - |
| BOE Semi-conductor Co., Ltd. | 9,450,000 | ? | - | ? | - | ? | 9,450,000 | ? | - | ? | - |
| BOE Optoelectronics Holding Co., Ltd. | 2,768,662,024 | ? | - | ? | - | ? | 2,768,662,024 | ? | - | ? | - |
| Beijing Asahi Electronic Materials Co., Ltd. | 30,888,470 | ? | - | ? | - | ? | 30,888,470 | ? | - | ? | - |
| BOE Health Investment & Management Co., Ltd | 1,743,154,069 | ? | 1,210,000,000 | ? | - | ? | 2,953,154,069 | ? | - | ? | - |
| Hefei BOE Display Technology Co., Ltd. | 1,998,765,323 | ? | - | ? | - | ? | 1,998,765,323 | ? | - | ? | - |
| Technology Development | 1,000,000 | ? | - | ? | - | ? | 1,000,000 | ? | - | ? | - |
| BOE smart IOT Technology Co., Ltd | 50,000,000 | ? | 40,670,000 | ? | - | ? | 90,670,000 | ? | - | ? | - |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 600,000,000 | ? | - | ? | - | ? | 600,000,000 | ? | - | ? | - |
| Beijing BOE Land Co., Ltd. | 7,731,474 | ? | - | ? | - | ? | 7,731,474 | ? | - | ? | - |
| Beijing BOE Marketing Co., Ltd. | 30,500,000 | ? | - | ? | - | ? | 30,500,000 | ? | - | ? | - |
| BOE KOREA Co., Ltd. | 788,450 | ? | - | ? | - | ? | 788,450 | ? | - | ? | - |
| Kunming BOE Display Technology Co., Ltd. | 202,800,000 | ? | 467,200,000 | ? | - | ? | 670,000,000 | ? | - | ? | - |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 13,936,980,083 | ? | 760,000,000 | ? | - | ? | 14,696,980,083 | ? | - | ? | - |
| Sensing Technology | 50,000,000 | ? | - | ? | - | ? | 50,000,000 | ? | - | ? | - |
| Beijing BOE Yiyun Science &Technology Co., Ltd. | 90,000,000 | ? | - | ? | - | ? | 90,000,000 | ? | - | ? | - |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 1,230,860,516 | ? | 2,933,700,000 | ? | - | ? | 4,164,560,516 | ? | - | ? | - |
| Chongqing BOE Display Technology Co., Ltd. | 193,557,370 | ? | 2,115,300,000 | ? | - | ? | 2,308,857,370 | ? | - | ? | - |
| Fuzhou BOE Display Technology Co., Ltd. | - | ? | 21,730,000 | ? | - | ? | 21,730,000 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 141,883,775,023 | ? | 15,321,773,685 | ? | (2,000,000) | ? | 157,203,548,708 | ? | 60,000,000 | ? | 92,000,000 |
For information about the major subsidiaries of the Company, refer to Note VI. 1.
(3) Investments in associates:
| ? | ? | ? | Movements during the year | ? | ? | ? | |||||||||||
| Investee | Balance at the beginning of the year | ? | Increase in investments | ? | Decrease in investments | ? | Investment income recognized under equity method | ? | Other comprehensive income | ? | Changes in other equity movements | ? | Cash dividends or profit declared | ? | Balance at the end of the year | ? | Balance of provision for impairment at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Nissin Electronics Precision Component Co., Ltd. | 538,489 | ? | - | ? | - | ? | (1,698,667) | ? | - | ? | 1,643,426 | ? | - | ? | 483,248 | ? | - |
| Beijing Nittan Electronic Co., Ltd. | 61,733,085 | ? | - | ? | - | ? | 6,075,670 | ? | - | ? | - | ? | (3,000,000) | ? | 64,808,755 | ? | - |
| Erdos BOE Energy Investment Co., Ltd. | 9,458,312 | ? | - | ? | - | ? | (110,086) | ? | - | ? | - | ? | - | ? | 9,348,226 | ? | - |
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 435,828 | ? | - | ? | - | ? | 227,387 | ? | - | ? | - | ? | - | ? | 663,215 | ? | - |
| Beijing Infi-Hailin Venture Investment (Limited Partnership) | 82,336,933 | ? | - | ? | (10,000,000) | ? | (14,927,922) | ? | 16,975,941 | ? | - | ? | - | ? | 74,384,952 | ? | - |
| TPV Display Technology (China) Limited | 23,001,359 | ? | - | ? | - | ? | 1,544,305 | ? | - | ? | - | ? | - | ? | 24,545,664 | ? | - |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,455,174,877 | ? | - | ? | (129,089,011) | ? | 268,474,328 | ? | 349,954,655 | ? | - | ? | - | ? | 1,944,514,849 | ? | - |
| Beijing Xindongneng Investment Management Co., Ltd. | 5,188,862 | ? | - | ? | - | ? | 2,221,199 | ? | - | ? | - | ? | - | ? | 7,410,061 | ? | - |
| Shenzhen Yunyinggu Technology Co., Ltd. | 15,481,506 | ? | - | ? | (10,800,923) | ? | (17,043,172) | ? | - | ? | 25,077,673 | ? | - | ? | 12,715,084 | ? | - |
| Beijing Xloong Technologies Co., Ltd. | 22,609,211 | ? | - | ? | - | ? | (372,167) | ? | - | ? | - | ? | - | ? | 22,237,044 | ? | - |
| Beijing Innovation Industry Investment Co., Ltd | - | ? | 100,000,000 | ? | - | ? | 363,345 | ? | - | ? | - | ? | - | ? | 100,363,345 | ? | - |
| Beijing Electric Control Industry Investment Co., Ltd | - | ? | 17,000,000 | ? | - | ? | (158,391) | ? | - | ? | - | ? | - | ? | 16,841,609 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,675,958,462 | ? | 117,000,000 | ? | (149,889,934) | ? | 244,595,829 | ? | 366,930,596 | ? | 26,721,099 | ? | (3,000,000) | ? | 2,278,316,052 | ? | - |
6 Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Book value | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 95,016,083 | ? | 744,014,962 | ? | 216,319,003 | ? | 37,741,956 | ? | 1,093,092,004 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 699,922,964 | ? | 359,536,786 | ? | 5,429,461 | ? | 41,788,042 | ? | 1,106,677,253 |
| - Transfers from construction in progress | - | ? | - | ? | 77,517,509 | ? | - | ? | 77,517,509 |
| Other decreases | - | ? | (997,041) | ? | - | ? | - | ? | (997,041) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 794,939,047 | ? | 1,102,554,707 | ? | 299,265,973 | ? | 79,529,998 | ? | 2,276,289,725 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 26,780,283 | ? | 462,088,390 | ? | 89,534,990 | ? | 501,845 | ? | 578,905,508 |
| Charge during the year | 25,715,225 | ? | 133,757,561 | ? | 44,157,040 | ? | 122,127 | ? | 203,751,953 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 52,495,508 | ? | 595,845,951 | ? | 133,692,030 | ? | 623,972 | ? | 782,657,461 |
| ? | |||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 742,443,539 | ? | 506,708,756 | ? | 165,573,943 | ? | 78,906,026 | ? | 1,493,632,264 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 68,235,800 | ? | 281,926,572 | ? | 126,784,013 | ? | 37,240,111 | ? | 514,186,496 |
7 Deferred tax assets/deferred tax liabilities
??
| ? | 2019 | ? | 2018 | ||||
| Item | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Provisions for impairment losses of assets | 179,981,612 | ? | 26,997,242 | ? | 342,108,420 | ? | 51,316,263 |
| Changes in fair value of other equity instruments | 135,444,338 | 20,316,651 | |||||
| Depreciation of fixed assets | 111,653,214 | ? | 16,747,982 | ? | 87,117,936 | ? | 13,067,690 |
| Advance payments received | 1,906,248,410 | ? | 285,937,261 | ? | 1,551,798,448 | ? | 232,769,767 |
| Others | 155,622,634 | ? | 23,343,394 | ? | 151,182,178 | ? | 22,677,327 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 2,488,950,208 | ? | 373,342,530 | ? | 2,132,206,982 | ? | 319,831,047 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (13,074,064) | ? | ? | ? | (29,036,499) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 360,268,466 | ? | ? | ? | 290,794,548 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Interest on debentures | - | ? | - | ? | (71,525,943) | ? | (10,728,891) |
| Others | (87,160,432) | ? | (13,074,064) | ? | (122,050,720) | ? | (18,307,608) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (87,160,432) | ? | (13,074,064) | ? | (193,576,663) | ? | (29,036,499) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 13,074,064 | ? | ? | ? | 29,036,499 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | - | ? | ? | ? | - |
As at 31 December 2019, the Company estimated that the amount of taxable income isexpected to be available in the future period that the deductible temporary differences arereversed, thereby confirming the relevant deferred tax assets.
8 Advances payments received
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Advances from related parties | ? | 2,108,152,470 | ? | 1,563,300,806 |
| Advances from third parties | ? | 9,416,525 | ? | 13,734,709 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,117,568,995 | ? | 1,577,035,515 |
9 Employee benefits payable
(1) Employee benefits payable:
??
| ? | Note | Balance at 1 January 2019 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 191,160,309 | ? | 912,098,158 | ? | (861,874,008) | ? | 241,384,459 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 9,978,952 | ? | 83,250,064 | ? | (82,407,400) | ? | 10,821,616 |
| Termination benefits | ? | - | ? | 2,780,894 | ? | (2,780,894) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 201,139,261 | ? | 998,129,116 | ? | (947,062,302) | ? | 252,206,075 |
??
| ? | Note | Balance at 1 January 2018 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 271,338,126 | ? | 807,603,371 | ? | (887,781,188) | ? | 191,160,309 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 11,662,067 | ? | 77,656,828 | ? | (79,339,943) | ? | 9,978,952 |
| Termination benefits | ? | - | ? | 547,277 | ? | (547,277) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 283,000,193 | ? | 885,807,476 | ? | (967,668,408) | ? | 201,139,261 |
(2) Short-term employee benefits
??
| ? | ? | Balance at 1 January 2019 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | ? | 149,498,505 | ? | 664,206,819 | ? | (625,106,651) | ? | 188,598,673 |
| Staff welfare | ? | - | ? | 46,521,914 | ? | (46,521,914) | ? | - |
| Social insurance | ? | ? | ? | ? | ? | ? | ? | ? |
| Medical insurance | ? | 13,027,783 | ? | 44,619,713 | ? | (42,958,955) | ? | 14,688,541 |
| Work-related injury insurance | ? | 939,307 | ? | 2,862,644 | ? | (2,697,062) | ? | 1,104,889 |
| Maternity insurance | ? | 1,445,194 | ? | 3,536,732 | ? | (3,204,200) | ? | 1,777,726 |
| Housing fund | ? | 2,846,017 | ? | 54,005,271 | ? | (52,996,464) | ? | 3,854,824 |
| Labour union fee, staff and workers’ education fee | ? | 23,403,503 | ? | 26,939,926 | ? | (18,983,623) | ? | 31,359,806 |
| Others | ? | - | ? | 69,405,139 | ? | (69,405,139) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 191,160,309 | ? | 912,098,158 | ? | (861,874,008) | ? | 241,384,459 |
| ? | ? | Balance at 1 January 2018 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | ? | 232,610,577 | ? | 622,616,346 | ? | (705,728,418) | ? | 149,498,505 |
| Staff welfare | ? | - | ? | 37,159,393 | ? | (37,159,393) | ? | - |
| Social insurance | ? | ? | ? | ? | ? | ? | ? | ? |
| Medical insurance | ? | 13,533,102 | ? | 36,532,908 | ? | (37,038,227) | ? | 13,027,783 |
| Work-related injury insurance | ? | 963,123 | ? | 2,603,687 | ? | (2,627,503) | ? | 939,307 |
| Maternity insurance | ? | 1,363,607 | ? | 2,921,927 | ? | (2,840,340) | ? | 1,445,194 |
| Housing fund | ? | 3,136,970 | ? | 43,830,388 | ? | (44,121,341) | ? | 2,846,017 |
| Labour union fee, staff and workers’ education fee | ? | 19,730,747 | ? | 29,224,557 | ? | (25,551,801) | ? | 23,403,503 |
| Others | ? | - | ? | 32,714,165 | ? | (32,714,165) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 271,338,126 | ? | 807,603,371 | ? | (887,781,188) | ? | 191,160,309 |
(3) Post-employment benefits - defined contribution plans
??
| ? | ? | Balance at 1 January 2019 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | ? | 9,772,407 | ? | 73,613,317 | ? | (71,896,321) | ? | 11,489,403 |
| Unemployment insurance | ? | 206,545 | ? | 3,449,922 | ? | (3,354,369) | ? | 302,098 |
| Annuity | ? | - | ? | 6,186,825 | ? | (7,156,710) | ? | (969,885) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 9,978,952 | ? | 83,250,064 | ? | (82,407,400) | ? | 10,821,616 |
??
| ? | ? | Balance at 1 January 2018 | ? | Increase during the year | ? | Decrease during the year | ? | Balance at 31 December 2018 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | ? | 11,238,473 | ? | 69,320,207 | ? | (70,786,273) | ? | 9,772,407 |
| Unemployment insurance | ? | 249,227 | ? | 2,917,729 | ? | (2,960,411) | ? | 206,545 |
| Annuity | ? | 174,367 | ? | 5,418,892 | ? | (5,593,259) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 11,662,067 | ? | 77,656,828 | ? | (79,339,943) | ? | 9,978,952 |
10 Other payables
?
?
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | 95,859,218 | ? | 330,964,989 |
| Dividends payable | ? | 6,451,171 | ? | 6,451,171 |
| Others | (1) | 5,158,160,585 | ? | 7,872,319,930 |
| ? | ? | ? | ? | ? |
| Total | ? | 5,260,470,974 | ? | 8,209,736,090 |
(1) Others
(a) The Company’s other payables by category are as follows:
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Projects, equipment and intangible assets | ? | 345,872,758 | ? | 52,308,258 |
| External agency fee | ? | 18,171,708 | ? | 17,476,002 |
| Transaction amount with subsidiaries | ? | 4,739,139,471 | ? | 7,690,628,499 |
| Others | ? | 54,976,648 | ? | 111,907,171 |
| ? | ? | ? | ? | ? |
| Total | ? | 5,158,160,585 | ? | 7,872,319,930 |
(b) The Company’s other payables by currency:
??
| ? | 2019 | ? | 2018 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 2,257,788,363 | ? | ? | ? | ? | ? | 5,082,657,694 |
| USD | 414,300,937 | ? | 6.9762 | ? | 2,890,246,197 | ? | 406,452,150 | ? | 6.8632 | ? | 2,789,562,393 |
| JPY | 157,972,312? | ? | 0.0641? | ? | 10,126,025 | ? | 1,612,973 | ? | 0.0619 | ? | 99,843 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 5,158,160,585 | ? | ? | ? | ? | ? | 7,872,319,930 |
11 Long-term loans
??
| ? | ? | 2019 | ? | 2018 | ||||
| ? | ? | RMB | ? | Credited /collateralised guaranteed /pledged | ? | RMB | ? | Credited /collateralised guaranteed /pledged |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | 38,801,142,361 | ? | Credited | ? | 27,510,000,000 | ? | Credited |
| Less: Long-term loans due within one year | ? | 5,490,440,787 | ? | Credited | ? | 990,000,000 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 33,310,701,574 | ? | ? | ? | 26,520,000,000 | ? | ? |
The interest rate of RMB long-term loans for the Company ranged from 0% to 4.75% in 2019(2018: 0% to 4.75%).
12 Deferred income
| Item | Balance at the beginning of the year | ? | Increase during the year | ? | Amount included in other income | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| - related to assets | 5,416,944,049 | ? | - | ? | (901,541,269) | ? | 4,515,402,780 |
| - related to income | 107,005,792 | ? | 12,915,866 | ? | (7,931,182) | ? | 111,990,476 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 5,523,949,841 | ? | 12,915,866 | ? | (909,472,451) | ? | 4,627,393,256 |
13 Capital reserve
?
Item
| Item | ? | Share premiums | ? | Other capital reserves | ? | total |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 37,546,517,053 | ? | 44,449,138 | ? | 37,590,966,191 |
| Add: Changes in other equity of investees | ? | - | ? | 26,721,099 | ? | 26,721,099 |
| Less: Disposal of changes in other equity transferred from equity of associate | - | 9,647,605 | 9,647,605 | |||
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 37,546,517,053 | ? | 61,522,632 | ? | 37,608,039,685 |
14 Other comprehensive income
?
Item
| Item | Balance at the end of the previous year attributable to shareholders of the Company | ? | Changes in accounting policies | ? | ? | ? | Movements during the year | ? | Balance at the end of the year attributable to shareholders of the Company | ||||
| ? | ? | ? | Balance of other comprehensive income at the beginning of the year after adjustment | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Transfer of other comprehensive income to retained earnings | ? | |||
| Items that will not be reclassified to profit or loss | - | ? | (246,193,654) | ? | (246,193,654) | ? | 402,266,776 | ? | 12,864,994 | ? | 50,430,448 | ? | 193,638,576 |
| Including: Other comprehensive income recognised under equity method | - | ? | (58,164,332) | ? | (58,164,332) | ? | 366,930,596 | ? | - | ? | - | ? | 308,766,264 |
| Changes in fair value of investments in other equity instruments | - | ? | (188,029,322) | ? | (188,029,322) | ? | 35,336,180 | ? | 12,864,994 | ? | 50,430,448 | ? | (115,127,688) |
| Items that may be reclassified to profit or loss | (28,507,585) | ? | 28,507,585 | ? | - | ? | - | ? | - | ? | - | ? | - |
| Including: Other comprehensive income recognised under equity method | (58,164,332) | ? | 58,164,332 | ? | - | ? | - | ? | - | ? | - | ? | - |
| Gains or losses arising from changes in fair value of available-for-sale financial assets | 29,656,747 | ? | (29,656,747) | ? | - | ? | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (28,507,585) | ? | (217,686,069) | ? | (246,193,654) | ? | 402,266,776 | ? | 12,864,994 | ? | 50,430,448 | ? | 193,638,576 |
15 Retained earnings
| Item | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year (before adjustment) | ? | 2,392,243,713 | ? | 1,765,291,136 |
| Add: Changes in accounting policies | ? | 217,686,069 | ? | - |
| Retained earnings at the beginning of the year (after adjustment) | ? | 2,609,929,782 | ? | 1,765,291,136 |
| Add: Net profits for the year | ? | 3,685,564,456 | ? | 2,629,858,350 |
| Less: Appropriation for statutory surplus reserve | ? | 368,556,446 | ? | 262,985,835 |
| Dividends to ordinary shares | ? | 1,043,951,963 | ? | 1,739,919,938 |
| Interest of holders of other equity instruments | 56,109,589 | - | ||
| Transfer of other comprehensive income to retained earnings | ? | 45,387,401 | ? | - |
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 4,781,488,839 | ? | 2,392,243,713 |
16 Operating income
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Rental income of investment properties | ? | 122,723,329 | ? | 180,927,207 |
| Technology development income | ? | 4,103,362,231 | ? | 3,326,012,588 |
| Others | ? | 559,302,159 | ? | 541,409,893 |
| ? | ? | ? | ? | ? |
| Total | ? | 4,785,387,719 | ? | 4,048,349,688 |
17 Taxes and surcharges
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Property tax | ? | 33,323,560 | ? | 36,681,107 |
| Land use tax | ? | 2,849,332 | ? | 2,864,304 |
| Stamp duty | ? | 4,682,297 | ? | 2,218,487 |
| City maintenance and construction tax | ? | 353,192 | ? | 706,057 |
| Education surcharges and local education surcharges | ? | 252,276 | ? | 343,357 |
| Others | ? | 27,864 | ? | 1,316,562 |
| ? | ? | ? | ? | ? |
| Total | ? | 41,488,521 | ? | 44,129,874 |
18 Research and development costs
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Staff costs | ? | 544,087,165 | ? | 458,279,616 |
| Material expenses | ? | 74,036,997 | ? | 70,658,415 |
| Depreciation and amortisation | ? | 242,794,178 | ? | 186,406,973 |
| Commissioned and cooperative development | ? | 853,951,463 | ? | 103,980,007 |
| Others | ? | 469,881,484 | ? | 428,564,942 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,184,751,287 | ? | 1,247,889,953 |
19 Financial expenses
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Interest expenses from loans | ? | 934,776,554 | ? | 1,055,792,484 |
| Interest income from bank deposits | ? | (41,156,445) | ? | (44,583,524) |
| Net exchange losses | ? | 7,509,490 | ? | 1,797,658 |
| Other financial expenses | ? | 2,751,033 | ? | 1,414,091 |
| ? | ? | ? | ? | ? |
| Total | ? | 903,880,632 | ? | 1,014,420,709 |
20 Other income
?
?
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Government grants related to assets | 901,541,269 | ? | 913,120,098 |
| Government grants related to income | 43,858,943 | ? | 82,164,265 |
| ? | ? | ? | ? |
| Total | 945,400,212 | ? | 995,284,363 |
The amount of government subsidies received by the Company in 2019 and directly includedin other income was RMB 35,927,761.
21 Investment income
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Income from long-term equity investments accounted for using cost method | 1,889,790,465 | ? | 936,394,420 |
| Long-term equity investments gains/(loss) under equity method | 244,595,829 | ? | (12,001,705) |
| Investment income from disposal of long-term equity investments | 49,028,075 | ? | - |
| Investment income from available-for-sale financial assets during the holding period | - | ? | 3,917,184 |
| Dividend income from investments in other equity instruments | 2,354,733 | ? | - |
| Including: Dividend income from investments in other equity instruments derecognised during the year | 471,354 | ? | - |
| Dividend income from investments in other equity instruments held at the balance sheet date | 1,883,379 | ? | - |
| ? | ? | ? | ? |
| Total | 2,185,769,102 | ? | 928,309,899 |
22 Credit losses
?Item
| Item | 2019 |
| ? | ? |
| Accounts receivable | 17,416,444 |
| Other receivables | 45,142,306 |
| ? | ? |
| Total | 62,558,750 |
23 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
??
| Item | 2019 | ? | 2018 | ? | ||||
| ? | ? | ? | ? | |||||
| Others | 4,120,515 | ? | 4,336,405 | |||||
| ? | ? | ? | ? | |||||
| Total | 4,120,515 | ? | 4,336,405 | |||||
(2) Non-operating expenses
| Item | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Donations provided | 7,838,720 | ? | 7,830,588 |
| Others | 466,763 | ? | 837,822 |
| ? | ? | ? | ? |
| Total | 8,305,483 | ? | 8,668,410 |
| ? | |||
24 Income tax expenses
| ? | Note | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Current tax expense based on tax law and regulations | ? | 313,149,954 | ? | 372,322,173 |
| Changes in deferred tax | (1) | (82,338,912) | ? | (137,442,585) |
| ? | ? | ? | ? | ? |
| Total | ? | 230,811,042 | ? | 234,879,588 |
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
?
?
| ? | ? | 2019 | ? | 2018 |
| ? | ? | ? | ? | ? |
| Origination and reversal of temporary differences | ? | (82,338,912) | ? | (137,442,585) |
(2) Reconciliation between income tax expense and accounting profit is as follows:
?
Item
| Item | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Profit before taxation | 3,916,375,498 | ? | 2,864,737,938 |
| Expected income tax expense at tax rate of 15% | 587,456,325 | ? | 429,710,691 |
| Add: Non-deductible expenses | 5,063,076 | ? | 4,554,071 |
| Non-taxable income | (279,640,682) | ? | (139,246,485) |
| Tax deduction for R&D activities | (74,503,110) | ? | (60,138,689) |
| Others | (7,564,567) | ? | - |
| ? | ? | ? | ? |
| Income tax expenses | 230,811,042 | ? | 234,879,588 |
25 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit | 3,685,564,456 | ? | 2,629,858,350 |
| Add: Credit loss | 62,558,750 | ? | - |
| Impairment loss | 32,000,000 | - | |
| Depreciation of fixed assets and investment properties | 122,776,599 | ? | 125,672,901 |
| Amortisation of intangible assets | 180,015,643 | ? | 112,898,414 |
| Amortisation of long-term deferred expenses | 34,805,818 | ? | 34,008,232 |
| Financial expenses | 996,740,951 | ? | 1,041,426,618 |
| Investment income | (2,185,769,102) | ? | (928,309,899) |
| Increase in deferred tax assets | (69,473,918) | ? | (140,588,363) |
| (Increase) / decrease in inventories | (4,646,260) | ? | 3,462,706 |
| Decrease/ (increase) in operating receivables | 465,794,325 | ? | (315,481,253) |
| (Decrease) / increase in operating payables | (869,099,802) | ? | 898,567,740 |
| ? | ? | ? | ? |
| Net cash flows from operating activities | 2,451,267,460 | ? | 3,461,515,446 |
?(b) Net changes in cash and cash equivalents:
| (b) Net changes in cash and cash equivalents: | ? | ? | ? |
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 3,680,770,048 | ? | 3,829,814,050 |
| Less: Cash and cash equivalents at the beginning of the year | 3,829,814,050 | ? | 2,990,801,501 |
| ? | ? | ? | ? |
| Net (decrease) / increase in cash and cash equivalents | (149,044,002) | ? | 839,012,549 |
(2) Details of cash and cash equivalents
| ? | 2019 | ? | 2018 |
| ? | ? | ? | ? |
| Cash on hand | 22,936 | ? | 22,593 |
| Bank deposits available on demand | 3,680,747,112 | ? | 3,829,791,457 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 3,680,770,048 | ? | 3,829,814,050 |
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
26 Assets with restrictive ownership title
As at 31 December 2019, the Company has no assets with restrictive ownership title.
XV. Extraordinary gains and losses in 2019
??
| ? | 2019 | ? | 2018 | |
| ? | ? | ? | ? | ? |
| Investment income / (losses) from disposal of long-term equity investments | ? | 48,846,682 | ? | (3,948,640) |
| Losses from disposal of non-current assets | ? | (28,506,546) | ? | (21,684,121) |
| Government grants recognized in current profit or loss (except for government subsidies that are closely related to the normal business operations of the company and that are in compliance with national policies and are subject to constant or fixed amount according to certain standards) | ? | 2,640,634,861 | ? | 2,073,709,661 |
| Fair value changes in Financial assets held for trading, and investment income from the disposal of Financial assets held for trading and Available-for-sale financial assets | ? | 112,668,244 | ? | 315,279,377 |
| Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis | ? | 1,498,805 | ? | 1,779,710 |
| Other non-operating income and expenses besides items above | ? | 96,799,305 | ? | 63,734,628 |
| Other items qualified as extraordinary gain and loss | Note2 | 795,126,980 | ? | - |
| Less: Tax effect | ? | 285,904,312 | ? | 328,634,385 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,381,164,019 | ? | 2,100,236,230 |
| ? | ? | ? | ? | ? |
| Including: Extraordinary gains affecting net profit of equity shareholders of the Company | ? | 3,085,437,188 | ? | 1,917,425,622 |
| Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders | ? | 295,726,831 | ? | 182,810,608 |
Note 1:Extraordinary gain and loss item listed above are presented in the amount before
taxation.
Note 2:The company’s capital commitment and conversion obligations to the minority
shareholders of Hefei Xinsheng is included in financial liabilities in accordance withthe relevant accounting standards for financial instruments. During the reportingperiod, the Company and Hefei Heping Investment Co., Ltd. ("Hefei Heping") signedan "Equity Transfer Agreement", which agreed to transfer 15.3846% of the equity heldby Hefei Heping, after which, Hefei Xinsheng becomes a wholly-owned subsidiary ofthe company. According to the requirements of the Accounting Standard, thedifference of RMB 795,126,980 between the cash payment and the book value of thisfinancial liability is included in the current profit and loss.
XVI. 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 the Return on Net Assets andEarnings Per Share (2010 revised) issued by the CSRC and relevant accounting standards,the Group’s return on 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 | 2.16% | ? | 0.05 | ? | 0.05 |
| Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | (1.42%) | ? | (0.04) | ? | (0.04) |