Stock Code: 000725, 200725 Stock Name: BOE-A, BOE-B Announcement No. 2021-033
BOE TECHNOLOGY GROUP CO., LTD.ANNUAL REPORT 2020 (SUMMARY)Part I Important Notes
This Summary is based on the full Annual Report of BOE Technology Group Co., Ltd. (together with its consolidated subsidiaries,the “Company”, except where the context otherwise requires). In order for a full understanding of the Company’s operating results,financial position and future development plans, investors should carefully read the aforesaid full text, which has been disclosedtogether with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management ofBOE Technology Group Co., Ltd. hereby guarantee the factuality, accuracy and completeness of the contents of this Report and itssummary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President, Ms. Sun Yun, Chief Financial Officer, and Ms.Yang Xiaoping, head of the financial department (equivalent to financial manager) hereby guarantee that the Financial Statementscarried in this Report are factual, accurate and complete.All the directors of the Company except for the following attended in person the Board meeting for the review of this Report and itssummary.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Pan Jinfeng | Director | Due to work | Li Yantao |
| Song Jie | Director | Due to work | Li Yantao |
| Sun Yun | Director | Due to work | Liu Xiao Dong |
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan for the ordinary shareholders for the Reporting Period. Based on 34,770,212,630shares, a cash dividend of RMB1.00 (tax inclusive) per 10 shares is to be distributed to all the shareholders, with no bonus issue fromeither profit or capital reserves.Board-approved final cash and/or stock dividend plan for preference shareholders:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese versions shall prevail.Part II Key Corporate Information
1. Stock Profile
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Contact information | Board Secretary | Securities Representative | |
| Name | Liu Hongfeng | Su Xuefei | |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | |
| Fax | 010－64366264 | 010－64366264 | |
| Tel. | 010－64318888 ext. | 010－64318888 ext. | |
| E-mail address | liuhongfeng@boe.com.cn | suxuefei@boe.com.cn | |
2. Principal Activities or Products in the Reporting Period
BOE is an IoT company that provides smart ports and professional services for information interaction and human health. After yearsof innovation-driven development, the Group recorded revenue of over RMB100 billion for the first time in 2019, establishing itsstatus as a global leader in the semiconductor display sector. In 2020, the Group established a strategic goal of becoming aninnovative IoT enterprise with absolute advantages in a number of segments. It furthered management changes based on analysis andbusiness model study of the development trends of the semiconductor display and IoT markets. By building platforms at multiplelevels and on all fronts, it integrated ecological chain, expedited integrated development, and built a multi-layer strategic businessstructure on the basis of core capacities and extension of industrial value chain. Under its strategic thinking, the Group hasestablished a "1+4+N" BG structure extended to the semiconductor display chain and the value chain of many IoT scenarios based onits core capacities in display and sensor."1" means the Semiconductor Display business, which is the key driver of the Group's business growth and has taken up the leadingposition on the industrial chain thanks to core technical capability reserves. The business has the intellectual capital and resourcereserves to propel the fast growth of other businesses."4" means Sensor and Solution business, Mini-LED business, Intelligence System and Innovation business, and Smart MedicalEngineering business, which the Group is concentrating resources to develop for their enormous potential, on the back of the corecapacities in the Semiconductor Display business and the predictions of future technology and market development. These businesseshave gathered momentum for building of core capacities and are poised to be the principal businesses as the Group goes forward."N" means specific businesses integrated into IoT scenarios, including Intelligent Car Networking, Smart Retail, Smart Finance,Smart Medicine and Engineering, Industrial IoT, and Smart City Public Service, and Digital Art. It is an extended business layer onthe basis of the core capacities in value chains of "1" and "4". Under the principle of "core capacities empowerment and outwarddevelopment", this business layer will penetrate deep into the IoT scenarios and market segments to boost business growth and corecapacities upgrading.To promote the development of the "1+4" BG structure, the Group strengthens investment business dominated by industrial funds,
with the primary objective of ensuring the security of the supply chain and building industrial clusters and ecological alliances tofacilitate the better and faster development of "1+4+N" businesses. In the meanwhile, the Group builds customer touchpointsfocusing on product and market innovation cooperation with strategic partners, suppliers, customers, investors and even allenterprises and individuals with innovative mindset and ability, who are not only a crucial driving force for rapid market expansionand supply chain security but also a key window for gaining insights into market changes, understanding product and customer needs,and swiftly responding to characteristics and specific market segments.As an open platform, the Smart System Innovation Center is open to all layers of the "1+4" BG structure, especially to strategictechnology and market partners, upstream and downstream industrial partners, investors, and internal and external entities andindividuals with innovative ideas, channels and market methods. This platform facilitates cooperation to expand market and customerbase and jointly create products and value for win-win outcomes.The specifics are as follows:
1. Display business
Display business offers TFT-LCD, AMOLED, Microdisplay and other intelligent interface devices designed and manufactured inan integrated way, to create an integrated platform of panels, modules, whole products and services. Display business providescustomers with high-quality display devices such as smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronicshelf label (ESL), tiled display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare,mobile payment, and interactive whiteboards, as well as the most competitive intelligent services in 3C display, smart IoT, systemplatform, and other fields.
2. Sensor and Solution business
Sensor and Solution business offers B2B customers integrated design and manufacturing services of sensor devices for use inmedical detection, household detection, communication & transportation, smart homes, etc., as well as sensor system solutionsregarding medical imaging, biological detection, smart screens, microwave communication, fingerprint identification and the like,with products including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification systems,etc.
3. Mini-LED business
Mini-LED business renders Mini-LED backlight products with high reliability and high dynamic range of dimming for mobile phones,tablet PCs, laptops, monitors, TVs, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and highdynamic range for outdoor, commercial and other purposes. All these products are designed and manufactured in an integrated manner.
4. Intelligence System and Innovation business
Intelligence System and Innovation business offers overall system solutions under integrated design and backed by AI and big data,such as smart government affairs, city beautification, smart transportation, smart finance, smart education, smart park, smart energyand other IoT solutions, for products and services combining hardware and software.
5. Smart Medical Engineering business
Smart Medical Engineering business adopts the professional healthcare service model to combine technologies with medicine andintegrate medicine and engineering with innovation, so as to provide families, communities and hospitals with the four core servicesof health management, health technology, digital hospital, and technology services. The health IoT platform connects testingequipment, medical workers and customers to build a smart health management ecosystem where customers enjoy health servicesincluding prevention, treatment, therapy and nursing.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
| Item | 2020 | 2019 | 2020-over-2019 change (%) | 2018 |
| Operating revenue | 135,552,569,729.00 | 116,059,590,164.00 | 16.80% | 97,108,864,935.00 |
| Net profit attributable to the listed company’s shareholders | 5,035,627,952.00 | 1,918,643,871.00 | 162.46% | 3,435,127,975.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 2,670,454,834.00 | -1,166,793,317.00 | - | 1,517,702,353.00 |
| Net cash generated from/used in operating activities | 39,251,773,458.00 | 26,083,079,194.00 | 50.49% | 25,684,047,196.00 |
| Basic earnings per share (RMB/share) | 0.13 | 0.05 | 160.00% | 0.10 |
| Diluted earnings per share (RMB/share) | 0.13 | 0.05 | 160.00% | 0.10 |
| Weighted average return on equity (%) | 5.15% | 2.16% | 2.99% | 4.00% |
| Item | 31 December 2020 | 31 December 2019 | Change of 31 December 2020 over 31 December 2019 (%) | 31 December 2018 |
| Total assets | 424,256,806,331.00 | 340,412,203,308.00 | 24.63% | 304,028,491,385.00 |
| Equity attributable to the listed company’s shareholders | 103,276,766,835.00 | 95,058,129,055.00 | 8.65% | 85,856,748,703.00 |
(2) Key Financial Information by Quarter
Unit: RMB
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 23,887,380,060.00 | 32,863,949,005.00 | 38,149,823,526.00 | 40,651,417,138.00 |
| Net profit attributable to the listed company’s shareholders | 566,676,460.00 | 568,773,865.00 | 1,340,387,777.00 | 2,559,789,850.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | -502,352,271.00 | 326,023,686.00 | 1,064,128,213.00 | 1,782,655,206.00 |
| Net cash generated from/used in operating activities | 5,223,671,919.00 | 4,493,003,615.00 | 13,751,838,874.00 | 15,783,259,050.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
√ Yes □ No
The quarterly operating revenue is re-presented according to the approved data, which has no impact on other financial indicators.
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the Period-end | 1,012,008 (including 973,560 A-shareholders and 38,448 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,329,925(including1,292,791 A-shareholders and 37,134 B-shareholders) | |||||
| Top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Restricted shares held | Shares in pledge or frozen | |||
| Status | Shares | |||||||
| Beijing State-owned Capital Operation and Management Center | State-owned legal person | 11.68% | 4,063,333,333 | 0 | N/A | 0 | ||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 5.88% | 2,047,015,619 | 0 | N/A | 0 | ||
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | 0 | N/A | 0 | ||
| Hefei Jianxin Investment Co., Ltd. | State-owned legal person | 2.30% | 800,000,000 | 0 | N/A | 0 | ||
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 2.10% | 730,885,417 | 0 | N/A | 0 | ||
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | State-owned legal person | 1.93% | 669,956,235 | 0 | N/A | 0 | ||
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | Other | 1.09% | 379,856,777 | 0 | N/A | 0 | ||
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 1.05% | 364,706,898 | 0 | N/A | 0 | ||
| China Merchants Bank- Galaxy Innovation Growth Mixed Type Securities Investment Fund | Other | 0.88% | 307,000,000 | 0 | N/A | 0 | ||
| Industrial and Commercial Bank of China-GF Double Engines Upgrade Mixed Type Securities Investment Fund | Other | 0.88% | 306,718,505 | 0 | N/A | 0 | ||
| Related or acting-in-concert parties among the shareholders above | 1. After the non-public offering of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd, by entering into the Agreement on Exercise of Voting Right respectively, agreed to maintain unanimous with Beijing BOE Investment & Development Co., Ltd. when exercising the voting rights of the shareholders by all shares of the Company held by them. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |||||||
| Shareholders involved in securities margin trading (if any) | The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 164,694,800 shares due to engaging in securities financing. | |||||||
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for theCompany to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders ofIntelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capitalcontribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, ZhaoCaiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%,Wang Yanjun 3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng
1.667%, Wang Aizhen 1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and ManagementCenter transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through aShares Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposaland earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in aVoting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of theremaining 30% stake directly held by it in the Company.
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full?Yes.
(1) Bond Profile
| Bond name | Abbr. | Bond code | Maturity | Balance (RMB’0,000) | Coupon rate | Bond name |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 | 800,000 | 4.00% |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 20BOEY1 | 149046 | 27 February 2020 | 28 February 2023 | 200,000 | 3.64% |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 20BOEY2 | 149065 | 18 March 2020 | 19 March 2023 | 200,000 | 3.54% |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2024 | 200,000 | 3.50% |
(2) Latest Rating and Rating Change
| Bond name | Corporate credit rating | Outlook on corporate rating | Credit rating of corporate bonds | Letter of credit rating | Date of report disclosure |
| 19BOEY1 | AAA | Stable | AAA | LH[2019]No.2141 | 23 October 2019 |
| 20BOEY1 | AAA | Stable | AAA | LH[2020]No.236 | 25 February 2020 |
| 20BOEY2 | AAA | Stable | AAA | LHPZ[2020]No.376 | 16 March 2020 |
| 20BOEY3 | AAA | Stable | AAA | LHPZ[2020]No.692 | 22 April 2020 |
On 19 June 2020, United Credit Ratings Co., Ltd. issued the Follow-up Rating Report of the 2020 for the Renewable CorporateBonds of BOE Technology Group Co., Ltd. According to the Report, the issuer was still granted with a corporate long-term creditrating of AAA with rating outlook rated as Stable; the bond credit rating remained AAA. The Follow-up Rating Report waspublished on http://www.cninfo.com.cn/ and the website of United Ratings at www.unitedratings.com.cn. on 22 June 2020.It is estimated that China Lianhe Credit Rating Co., Ltd. will issue the Follow-up Rating Report of the 2021 for the RenewableCorporate Bonds of BOE Technology Group Co., Ltd. in June 2021. The Company will disclose the tracking rating analysis reporton www.szse.cn in time. And please investors pay attention to it.
(3) Selected Financial Information of the Company for the Past Two Years
Unit: RMB'0,000
| Item | 2020 | 2019 | Change |
| Debt/asset ratio | 59.13% | 58.56% | 0.57% |
| Debt/EBITDA ratio | 19.23% | 16.26% | 2.97% |
| Interest cover (times) | 2.27 | 1.14 | 99.12% |
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
In 2020, the world experienced profound changes unseen in a century. The sudden outbreak of COVID-19 hit hard the globaleconomy, triggering a global economic recession, which, coupled with further intensifying trade frictions between China and theUnited States, brought great challenges to the development and operation of companies. On the other hand, China was speeding upefforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulationsreinforcing each other. Online education, online entertainment, telecommuting, telemedicine and other application scenarios spurredthe pandemic saw exponential growth. 5G, AI and other new technologies were integrated with traditional industries at a faster pace.Digital transformation presented strategic opportunities to the market. In the meanwhile, the semiconductor display sector reboundedin the midst of accelerating industry integration. In a complex development environment in China and globally, BOE identifiedopportunities from the crisis in the face of the changing situation. By actively responding to challenges and grasping developmentopportunities, it saw its operating revenue continued to grow to approximately RMB135.553 billion for the whole year, up about
16.80% year on year, and achieved a net profit of RMB5.036 billion.
1. Fast development of the five businesses
Display business: BOE further consolidated its leading position in the semiconductor display sector, which generated operatingrevenue of about RMB131.971 billion in this business during the Reporting Period, up about 16.03% year on year. The Company'smarket position in display devices steadily improved, and product sales volume rose by 18% year on year. The market share of fivemainstream products, such as smartphone LCD screens, tablet PC displays, laptop displays, display screens and TV displays,continued to rank first globally. The market share of innovative application products expanded rapidly, and that of wearables, ESL,electronic tags, tiled display screens and IoT financial applications ranked first in the world. Flexible OLED products grew faster,with year-on-year sales growth of above 100%. BOE completed the acquisition of Gen-8.5 LCD production line of Nanjing CECPanda and Gen-8.6 LCD production line of Chengdu CEC Panda, thus improving its technology and product mixes and competitiveedges.Sensor and Solution business: For medical imaging and smart screens, breakthroughs were made in market development, customerbase expansion, R&D of new products and new technologies, and they witnessed moderate growth, generating operating revenue ofabout RMB120 million in this business during the Reporting Period, up about 90.95% year on year. The shipments of medicalimaging products went up by more than 70% year on year, propelled by more breakthroughs in overseas market expansion; inparticular, shipments to South Korea rose by over 30%. BOE established a partnership with leading medical equipment companies inEurope and the US and the largest detector company in the world. Smart screens were delivered for Beijing-Xiong'an Tourist Area,Beijing-Zhangjiakou Tourist Area, maglev, and other projects, and passenger vehicle skylight, Metro display screens and otherprojects were launched. BOE led the formulation of national standards for electronic dyed glass to pave the way for morebreakthroughs.Mini-LED business: BOE integrated its competitive resources to make early layout for the next-generation display technology. Thus,it has established Mini-LED business as an integral part of its BG structure. The Company made breakthroughs in products,technologies and markets. It has produced 75-inch glass double backlight lighting product and promoted it to some influentialcustomers. The world's first largest needle-type die bonding machine, co-developed by BOE, was installed and commissioned,leading to substantial increase in die bonding speed. Glass straight side lines, die bonding and assembly and other key technologies
were developed. The development and marketing of P0.9 AM glass product are progressing steadily.Intelligence System and Innovation business: BOE made breakthroughs in business landscape and headway in market expansion.Operating revenue of this business posted about RMB1.328 billion during the Reporting Period, up about 61.72% year on year. Greatbreakthroughs were made in building an innovation center network. With Beijing as the core, the Company built innovation centersnationwide in Chongqing and Chengdu with the focus on six major economic circles, according to the general plan of "one horizontaland one vertical". As for urban beautification, BOE has completed a series of projects including Twin Towers in Chengdu andWanda Square in Wuhan, which are new engines and new landmarks for boosting the economic development of the cities. Smartfinance solutions have been provided for more than 1,500 banking outlets. BOE joined hands with Jindezhen Ceramic Culture Groupto create a new-generation model street and with Universal Studios to create an international top theme park, and these projects havefurther enhanced the international recognition of BOE brand. The Company launched C-series and E-series smart whole products.Smart transportation solutions were offered to build a number of benchmark projects, including Taiyuan Metro Line 2.Smart Medical Engineering business: BOE continued to offer closed-loop full-lifecycle health services with health management asthe core, smart terminals as tools and digital hospitals as support. Health management, health technology, digital hospitals and otherbusinesses saw rapid development. This business generated operating revenue of approximately RMB1.522 billion during theReporting Period, a year-on-year increase of around 12.15%. Regarding health management, BOE also integrated digital human APPinto mobile health APP. Neonatal stem cell storage increased by 180%. Revenue from health technology grew by over 90% year onyear. Health IoT solutions integrating software and hardware such as smart health care and smart emergency were launched inZhejiang, Guangxi, Shandong and Beijing on a trial basis. The market of methylation testing products was expanded in an orderlymanner, and more than 10 dealers have been acquired. The performance of Hefei Hospital, a digital hospital, experienced significantimprovement, with outpatients and discharges up 120% and 200% respectively and operations by more than 185% over last year.
2. Further improved technological innovation capacities
BOE continued to apply for and obtain more patents, with more than 9,000 new patent applications in the year. In particular, theCompany filed over 4,500 new patent applications in respect of flexible OLED, sensor, AI, big data and other innovative fields. Newpatent authorizations amounted to 5,500, including over 2,300 overseas authorizations. Besides, the Company led the formulationand amendment of 36 external technical standards, and group standards led by BOE such as IEC international standards for LCDmulti-screen display terminals and 8K TV display interface specifications were officially released. The flexible AMOLED R&D andindustrialization project won the special prize of Beijing Annual Science and Technology Progress Award. Five AI technologies ofBOE including character recognition and behavior recognition took the first place in international industry competitions. As forinnovation in product and technology applications, TV BD Cell won the SID Global Display Industry Award 2020, as its applicationwas extended to vehicles, hospitals and broadcasting level display. InP-based red quantum dot light-emitting diode and green devicessaw considerable efficiency improvement, continuing to lead the industry. The face recognition algorithm for masked people had apass rate of above 95%, among the highest in the industry. In biochip development, BOE completed R&D of a nucleic acid detectionsystem prototype that was fully automatic microfluidic.
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
√ Applicable □ Not applicable
Unit: RMB
| Product category | Operating revenue | Operating profit | Gross profit margin | YoY change in operating revenue (%) | YoY change in operating profit (%) | YoY change in gross profit margin (%) |
| Display business | 131,970,602,256.00 | 4,137,868,453.00 | 18.34% | 16.03% | 663.28% | 4.79% |
4. Business Seasonality to which Special Attention should Be Paid
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the ListedCompany’s Ordinary Shareholders or Their Compositions
□ Applicable √ Not applicable
6. Possibility of Delisting
□ Applicable √ Not applicable
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
√ Applicable □ Not applicable
The Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No.14-Revenue in 2017. And theCompany starts to implement the said standards since 1 January 2020 and adjusted relevant contents of accounting policies, whichcaused no significant influence on the Company’s financial status and operating results.The Ministry of Finance issued the InterpretationNo. 13 of the Accounting Standards for Enterprises (C.K. [2019] No.
21)("Interpretation No. 13") in 2019. The Group started to adoptInterpretation No. 13 on 1 January 2020 and adjusted its accountingpoliciesaccordingly, which caused no significant impact on the Group's financialposition and operating results.The Ministry of Finance issued the Provisions onAccounting Processing of Rent Concessions Associated with the COVID-19Pandemic(C.K. [2020] No. 10) in 2020. The Group started to adopt the said Provisions on24 June 2020 and could, pursuant to theProvisions, adjust relevant rentconcessions that occurred between 1 January 2020 and the adoption date of theProvisions, whichcaused no significant impact on the Group's financialposition and operating results.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
√ Applicable □ Not applicable
Five new subsidiaries were established in the current period, including Hefei BOE Xingyu Technology Co., Ltd., BOE EducationalTechnology Co., Ltd., Oriental Chengqi (Beijing) Business Technology Co., Ltd., BOE Innovation Investment Co., Ltd., and BOESmart Technology Co., Ltd. The Company holds a 43.40% interest in Hefei BOE Xingyu Technology Co., Ltd., with subscribedshareholding of 65.00%, and the 100% in all the others.Two subsidiaries were combined involving entities under different control during the year, namely Nanjing CEC Panda FPDTechnology Co., Ltd., with 80.831% shareholding and Chengdu CEC Panda Display Technology Co., Ltd., with 35.0348%shareholding.This year, Beijing Asahi Electronic Materials Co., Ltd. was disposed, with 100% shareholding at the beginning of the period and 0shareholding at the end of the period.This year, the control of one subsidiary was lost due to the capital increase of other shareholders and amending the company's articlesof association. The subsidiary was Hunan BOE Yiyun Technology Co., Ltd., with 95.92% shareholding at the beginning of the periodand 48.99% shareholding at the end of the period.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 9
thApril 2021