京东方A(000725)_公司公告_京东方Ｂ：2020年年度审计报告（英文版）新浪财经

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京东方Ｂ：2020年年度审计报告（英文版）（下载公告）

公告日期:2021-04-13

BOE Technology Group Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTS FOR THE YEAR 1 JANUARY

2020 TO 31 DECEMBER 2020IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH

TRANSLATION, THE CHINESE VERSION WILL PREVAIL

Page 1 of 9

AUDITOR’S REPORT

毕马威华振审字第2102796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 company’s balance sheetas at 31 December 2020, the consolidated and company’s income statement, theconsolidated and company’s cash flow statement, and the consolidated and company’sstatement of changes in shareholders’ equity for the year then ended, and notes to thefinancial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company’s financial position of BOE as at 31 December 2020, and itsconsolidated and company’s financial performance and cash flows of BOE for the year thenended in accordance with Accounting Standards for Business Enterprises issued by theMinistry 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.

Page 2 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796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” 23 and “V. Notes to the consolidated financial statements” 44.
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 control according to the trading terms, and recognises revenue accordingly. Depending on the trading terms, the income is usually recognised when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be recognised in a correct period.	Our audit procedures to evaluate revenue recognition included the following: ? Evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ? Check key sales contracts/orders on a sampling basis to identify relevant trading terms, and evaluate whether the accounting policies for revenue recognition of BOE Group meet the requirements of the Enterprise Accounting Standards; ? On a sampling basis and according to different trading terms, reconcile the revenue recorded in the current year to relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, delivery receipts, etc. to evaluate whether revenue is recognised 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 the appropriate period;

Page 3 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796号

Key Audit Matters (continued)

Revenue recognition (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 23 and “V. Notes to the consolidated financial statements” 44.
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.

Page 4 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796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 2020, the book value of fixed assets and construction in progress amounted to RMB 267,442 million. 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 capitalisation; ? 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 capitalised commissioning expenses for the current year are in compliance with relevant capitalisation 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.

Page 5 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796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 device. Due to the fluctuation of supply-demand relationship of display device and the influence of technology upgrading, the profit level of different production lines suffer dramatic fluctuation. As at 31 December 2020, the book value of fixed assets and intangible assets amounted to RMB 236,743 million, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2020 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate.	Our audit procedures to 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 our own valuation experts’ work, assess if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry;

Page 6 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796号

Key Audit Matters (continued)

Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16.
The Key Audit Matter	How the matter was addressed in our audit
We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias.	Our audit procedures to 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 consistent with relevant accounting policy.

Page 7 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796号

Other Information

BOE’s management is responsible for the other information. The other information comprisesall the information included in 2020 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.

Page 8 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796号

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.

? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the BOE’s ability to continueas a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause BOE to cease to continue as a going concern.

? Evaluate the overall presentation, structure and content of the financial statements, including

the disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

Page 9 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2102796号

Auditor’s Responsibilities for the Audit of the Financial Statement (continued)

? Obtain sufficient appropriate audit evidence regarding the financial information of the entitiesor business activities within BOE to express an opinion on the financial statements. We areresponsible for the instruction, supervision and execution of Conch Group’s audit, and assumefull 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 Accountants Registered

in the People’s Republic of China

Zhang Huan (Engagement Partner)

Beijing China Chai Jing

9 April 2021

Page 1

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	V. 1	73,694,296,095	?	56,972,723,239
Financial assets held for trading	V. 2	4,367,201,833	?	5,809,184,994
Bills receivable	V. 3	215,994,373	?	331,145,492
Accounts receivable	V. 4	22,969,140,355	?	18,135,687,806
Prepayments	V. 5	1,119,595,984	?	626,985,706
Other receivables	V. 6	658,114,833	?	706,171,112
Inventories	V. 7	17,875,454,490	?	12,396,194,762
Contract assets	V. 8	49,897,395	?	-
Assets held for sale	V. 9	186,892,645	?	173,910,820
Other current assets	V. 10	7,848,869,252	?	9,296,637,067
?	?	?	?	?
Total current assets	?	128,985,457,255	?	104,448,640,998

The notes on pages 31 to 174 form part of these financial statements.

Page 2

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Assets (continued)	?	?	?	?
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term equity investments	V. 11	3,693,170,224	?	2,718,037,934
Investments in other equity instruments	V. 12	533,645,423	?	632,076,647
Investment properties	V. 13	1,196,168,511	?	1,241,242,850
Fixed assets	V. 14	224,866,586,069	?	125,786,241,938
Construction in progress	V. 15	42,575,849,952	?	87,376,782,527
Intangible assets	V. 16	11,875,926,448	?	7,416,416,829
Goodwill	V. 17	1,400,357,242	?	707,603,856
Long-term deferred expenses	V. 18	299,634,100	?	345,424,409
Deferred tax assets	V. 19	205,041,088	?	248,153,761
Other non-current assets	V. 20	8,624,970,019	?	9,491,581,559
?	?	?	?	?
Total non-current assets	?	295,271,349,076	?	235,963,562,310
?	?	?	?	?
?	?	?	?	?
Total assets	?	424,256,806,331	?	340,412,203,308

The notes on pages 31 to 174 form part of these financial statements.

Page 3

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Short-term loans	V. 21	8,599,569,471	?	6,366,717,121
Bills payable	V. 22	1,231,533,895	?	2,028,917,980
Accounts payable	V. 23	27,164,171,682	?	21,183,567,553
Advance payments received	V. 24	124,040,749	?	1,260,732,785
Contract liabilities	V. 25	3,440,720,535	?	-
Employee benefits payable	V. 26	3,758,623,797	?	2,373,745,454
Taxes payable	V. 27	1,077,686,869	?	730,996,129
Other payables	V. 28	32,867,709,024	?	24,570,589,610
Non-current liabilities due within one year	V. 29	24,500,550,121	?	18,849,281,019
Other current liabilities	V. 30	2,194,716,852	?	1,013,738,515
?	?	?	?	?
Total current liabilities	?	104,959,322,995	?	78,378,286,166

The notes on pages 31 to 174 form part of these financial statements.

Page 4

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	V. 31	132,452,767,135	?	107,730,595,615
Debentures payable	V. 32	398,971,739	?	387,878,384
Long-term payables	V. 33	2,114,175,683	?	984,520,824
Provisions	V. 34	-	?	16,457,010
Deferred income	V. 35	4,246,231,468	?	2,204,400,566
Deferred tax liabilities	V. 19	1,427,601,154	?	1,451,825,357
Other non-current liabilities	V. 36	5,260,001,443	?	8,200,542,412
?	?	?	?	?
Total non-current liabilities	?	145,899,748,622	?	120,976,220,168
?	?	?	?	?
?	?	?	?	?
Total liabilities	?	250,859,071,617	?	199,354,506,334
?	?	?	?	?

The notes on pages 31 to 174 form part of these financial statements.

Page 5

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V. 37	34,798,398,763	?	34,798,398,763
Other equity instruments	V. 38	14,146,997,427	?	8,013,156,853
Capital reserve	V. 39	37,435,655,934	?	38,353,242,364
Less: Treasury shares	V. 40	1,036,298,508	?	-
Other comprehensive income	V. 41	(22,198,072)	?	(4,566,639)
Surplus reserve	V. 42	2,444,416,669	?	1,516,139,709
Retained earnings	V. 43	15,509,794,622	?	12,381,758,005
?	?	?	?	?
Total equity attributable to shareholders of the Company	?	103,276,766,835	?	95,058,129,055
?	?	?	?	?
Non-controlling interests	?	70,120,967,879	?	45,999,567,919
?	?	?	?	?
Total shareholders’ equity	?	173,397,734,714	?	141,057,696,974
?	?	?	?	?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	424,256,806,331	?	340,412,203,308

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 6

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	XV. 1	4,375,497,010	?	3,680,770,048
Bills receivable	?	-	?	84,230,531
Accounts receivable	XV. 2	3,974,212,308	?	646,533,115
Prepayments	?	12,185,651	?	77,682,682
Other receivables	XV. 3	16,345,474,583	?	4,827,398,094
Inventories	?	18,622,283	?	13,935,401
Other current assets	XV. 4	177,761,718	?	109,497,897
?	?	?	?	?
Total current assets	?	24,903,753,553	?	9,440,047,768

The notes on pages 31 to 174 form part of these financial statements.

Page 7

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Assets (continued)	?	?	?	?
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term equity investments	XV. 5	182,135,057,208	?	159,389,864,760
Investments in other equity instruments	?	81,192,872	?	79,405,724
Investment properties	?	271,212,241	?	280,525,802
Fixed assets	?	1,009,178,229	?	949,104,308
Construction in progress	?	418,343,961	?	358,933,667
Intangible assets	XV. 6	1,380,069,827	?	1,493,632,264
Long-term deferred expenses	?	105,439,681	?	109,216,398
Deferred tax assets	XV. 7	-	?	360,268,466
Other non-current assets	?	2,611,437,988	?	162,516,190
?	?	?	?	?
Total non-current assets	?	188,011,932,007	?	163,183,467,579
?	?	?	?	?
?	?	?	?	?
Total assets	?	212,915,685,560	?	172,623,515,347

The notes on pages 31 to 174 form part of these financial statements.

Page 8

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Short-term loans	?	-	?	1,220,000,000
Accounts payable	?	272,241,469	?	27,919,341
Advance payments received	XV. 8	18,286,458	?	2,117,568,995
Employee benefits payable	XV. 9	516,060,153	?	252,206,075
Taxes payable	?	87,179,892	?	107,287,957
Other payables	XV. 10	6,541,918,681	?	5,260,470,974
Non-current liabilities due within one year	?	7,847,210,073	?	5,490,440,787
Other current liabilities	?	1,977,977	?	1,423,133
?	?	?	?	?
Total current liabilities	?	15,284,874,703	?	14,477,317,262
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	XV. 11	38,360,714,121	?	33,310,701,574
Deferred income	XV. 12	3,633,342,446	?	4,627,393,256
Deferred tax liabilities	XV. 7	385,697,604	?	-
Other non-current liabilities	?	56,156,661,805	?	33,297,240,830
?	?	?	?	?
Total non-current liabilities	?	98,536,415,976	?	71,235,335,660
?	?	?	?	?
?	?	?	?	?
Total liabilities	?	113,821,290,679	?	85,712,652,922

The notes on pages 31 to 174 form part of these financial statements.

Page 9

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V. 37	34,798,398,763	?	34,798,398,763
Other equity instruments	V. 38	14,146,997,427	?	8,013,156,853
Capital reserve	XV. 13	36,696,079,366	?	37,608,039,685
Less: Treasury shares	V. 40	1,036,298,508	?	-
Other comprehensive income	XV. 14	90,713,133	?	193,638,576
Surplus reserve	V. 42	2,444,416,669	?	1,516,139,709
Retained earnings	XV. 15	11,954,088,031	?	4,781,488,839
?	?	?	?	?
Total shareholders’ equity	?	99,094,394,881	?	86,910,862,425
?	?	?	?	?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	212,915,685,560	?	172,623,515,347

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 10

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
I. Operating income	V. 44	135,552,569,729	?	116,059,590,164
?	?	?	?	?
II. Less: Operating costs	V. 44	108,823,122,756	?	98,446,269,296
Taxes and surcharges	V. 45	1,078,900,085	?	861,100,605
Selling and distribution expenses	V. 46	3,137,719,001	?	2,917,865,380
General and administrative expenses	V. 47	6,203,600,521	?	5,214,948,027
Research and development expenses	V. 48	7,622,597,925	?	6,699,973,240
Financial expenses	V. 49	2,650,153,972	?	1,994,150,258
Including: Interest expenses	?	3,497,697,709	?	2,525,136,209
Interest income	?	873,376,712	?	840,190,118
Add: Other income	V. 50	2,337,705,817	?	2,605,658,711
Investment income	V. 51	897,891,109	?	342,620,691
Including: Income from investment in associates and joint ventures	?	444,407,986	?	200,020,686
Gains from changes in fair value	V. 52	31,936,339	?	137,473,077
Credit losses	V. 53	1,827,519	?	(28,262,627)
Impairment losses	V. 54	(3,280,425,399)	?	(2,584,183,258)
Gains from asset disposals	V. 55	19,061,846	?	79,029
?	?	?	?	?
III. Operating profit	?	6,044,472,700	?	398,668,981
?	?	?	?	?
Add: Non-operating income	V. 56	120,503,628	?	208,430,198
Less: Non-operating expenses	V. 56	72,139,666	?	103,349,078

The notes on pages 31 to 174 form part of these financial statements.

Page 11

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
IV. Profit before income tax	?	6,092,836,662	?	503,750,101
?	?	?	?	?
Less: Income tax expenses	V. 57	1,564,566,246	?	979,991,504
?	?	?	?	?
V. Net profit/(losses) for the year	?	4,528,270,416	?	(476,241,403)
?	?	?	?	?
Attributable to: Shareholders of the Company	?	5,035,627,952	?	1,918,643,871
Non-controlling interests	?	(507,357,536)	?	(2,394,885,274)

The notes on pages 31 to 174 form part of these financial statements.

Page 12

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
VI. Other comprehensive income, net of tax	V. 41	165,945,656	?	228,445,653

Other comprehensive income (net of tax) attributable to owners of the Company	?	177,438,725	?	236,859,881
(1) Items that will not be reclassified to profit or loss	?	?	?	?
a. Other comprehensive income recognised under equity method	?	136,381,254	?	366,930,596
b. Changes in fair value of investments in other equity instruments	?	(19,975,534)	?	(36,688,762)
(2) Items that may be reclassified to profit or loss	?	?	?	?
a. Other comprehensive income recognised under equity method	?	11,835	?	-
b. Translation differences arising from translation of foreign currency financial statements	?	61,021,170	?	(93,381,953)
Other comprehensive income (net of tax) attributable to non-controlling interests	?	(11,493,069)	?	(8,414,228)

The notes on pages 31 to 174 form part of these financial statements.

Page 13

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
VII. Total comprehensive income for the year	?	4,694,216,072	?	(247,795,750)
?	?	?	?	?
Attributable to shareholders of the Company	?	5,213,066,677	?	2,155,503,752
Attributable to non-controlling interests	?	(518,850,605)	?	(2,403,299,502)
?	?	?	?	?
VIII. Earnings per share	?	?	?	?
(1) Basic earnings per share	V. 58	0.13	?	0.05
(2) Diluted earnings per share	V. 58	0.13	?	0.05

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 14

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
I. Operating income	XV. 16	4,541,676,195	?	4,785,387,719
?	?	?	?	?
II. Less: Operating costs	?	22,304,841	?	29,852,957
Taxes and surcharges	XV. 17	40,889,596	?	41,488,521
General and administrative expenses	?	858,750,449	?	741,464,420
Research and development expenses	XV. 18	2,102,895,125	?	2,184,751,287
Financial expenses	XV. 19	916,538,545	?	903,880,632
Including: Interest expenses	?	970,259,855	?	934,776,554
Interest income	?	37,793,976	?	41,156,445
Add: Other income	XV. 20	970,989,167	?	945,400,212
Investment income	XV. 21	2,429,685,102	?	2,185,769,102
Including: Income from investment in associates and joint ventures	?	416,901,621	?	244,595,829
Credit losses	?	(5,376,889)	?	(62,558,750)
Impairment losses	?	-	?	(32,000,000)
?	?	?	?	?
III. Operating profit	?	3,995,595,019	?	3,920,560,466
?	?	?	?	?
Add: Non-operating income	?	6,879,087	?	4,120,515
Less: Non-operating expenses	?	11,908,850	?	8,305,483
?	?	?	?	?
IV. Profit before income tax	?	3,990,565,256	?	3,916,375,498
?	?	?	?	?
Less: Income tax expenses	XV. 22	251,373,672	?	230,811,042
?	?	?	?	?
V. Net profit	?	3,739,191,584	?	3,685,564,456

The notes on pages 31 to 174 form part of these financial statements.

Page 15

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
VI. Other comprehensive income, net of tax	XV. 14	136,131,965	?	389,401,782
(1) Items that will not be reclassified to profit or loss	?	?	?	?
a. Other comprehensive income recognised under equity method	?	136,381,254	?	366,930,596
b. Changes in fair value of investments in other equity instruments	?	(261,124)	?	22,471,186
(2) Items that may be reclassified to profit or loss	?	11,835	?	-?
?	?	?	?	?
VII. Total comprehensive income for the year	?	3,875,323,549	?	4,074,966,238

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 16

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	152,737,944,370	?	131,939,100,428
Refund of taxes	?	11,677,125,705	?	9,211,921,444
Proceeds from other operating activities	?	5,178,686,102	?	4,372,301,569
?	?	?	?	?
Sub-total of cash inflows	?	169,593,756,177	?	145,523,323,441
?	?	?	?	?
Payment for goods and services	?	(115,414,695,545)	?	(103,103,588,751)
Payment to and for employees	?	(10,375,043,429)	?	(11,274,232,340)
Payment of various taxes	?	(2,493,092,709)	?	(2,151,136,164)
Payment for other operating activities	?	(2,059,151,036)	?	(2,911,286,992)
?	?	?	?	?
Sub-total of cash outflows	?	(130,341,982,719)	?	(119,440,244,247)
?	?	?	?	?
?	?	?	?	?
Net cash inflow from operating activities	V. 59(1)	39,251,773,458	?	26,083,079,194

The notes on pages 31 to 174 form part of these financial statements.

Page 17

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	23,039,182,987	?	33,515,656,910
Investment returns received	?	79,109,825	?	93,386,997
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	?	177,874,045	?	19,822,394
Net amount received from subsidiaries	V. 59(2)	954,155,710	?	33,640,033
Net proceeds from disposal of subsidiaries	?	336,086,996	?	-
Proceeds from other investing activities	?	945,857,001	?	2,287,178,748
?	?	?	?	?
Sub-total of cash inflows	?	25,532,266,564	?	35,949,685,082
?	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(44,215,334,543)	?	(49,415,897,698)
Payment for acquisition of investments	?	(20,725,326,161)	?	(33,949,914,820)
Net payment for acquisition of subsidiaries and other business units	?V. 59(2)	(1,895,124,119)	?	-
Payment for other investing activities	?	(2,103,448,590)	?	-
?	?	?	?	?
Sub-total of cash outflows	?	(68,939,233,413)	?	(83,365,812,518)
?	?	?	?	?
?	?	?	?	?
Net cash outflow from investing activities	?	(43,406,966,849)	?	(47,416,127,436)

The notes on pages 31 to 174 form part of these financial statements.

Page 18

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
III. Cash flows from financing activities:	?	?	?	?
Proceeds from investors	?	10,377,793,629	?	14,066,343,889
Including: Proceeds from non-controlling shareholders of subsidiaries	?	10,377,793,629	?	14,066,343,889
Proceeds from issuance of debentures	?	5,966,660,000	?	8,075,977,975
Proceeds from borrowings	?	50,709,738,711	?	53,575,950,243
Net amount of monetary movements for pledging loans	?	2,927,370,511	?	-
Proceeds from other financing activities	?	920,016,046	?	6,000,000
?	?	?	?	?
Sub-total of cash inflows	?	70,901,578,897	?	75,724,272,107

The notes on pages 31 to 174 form part of these financial statements.

Page 19

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
III. Cash flows from financing activities (continued):	?	?	?	?
Repayments of borrowings	?	(38,547,043,449)	?	(36,944,543,462)
Payment for dividends or interest	?	(6,520,054,957)	?	(6,746,163,635)
Including: Profits paid to non-controlling shareholders of subsidiaries	?	(88,810,446)	?	(10,911,242)
Net amount of monetary movements for pledging loans	?	-	?	(287,261,600)
Payment for other financing activities	?	(2,016,750,534)	?	(3,967,658,080)
?	?	?	?	?
Sub-total of cash outflows	?	(47,083,848,940)	?	(47,945,626,777)
?	?	?	?	?
?	?	?	?	?
Net cash inflow from financing activities	?	23,817,729,957	?	27,778,645,330
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	(1,868,121,768)	?	474,027,965
?	?	?	?	?
?	?	?	?	?
V. Net increase in cash and cash equivalents	V. 59(1)	17,794,414,798	?	6,919,625,053
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	50,270,321,573	?	43,350,696,520
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	V. 59(3)	68,064,736,371	?	50,270,321,573

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 20

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	3,125,955,887	?	6,487,868,213
Proceeds from other operating activities	?	77,211,104	?	53,961,183
?	?	?	?	?
Sub-total of cash inflows	?	3,203,166,991	?	6,541,829,396
?	?	?	?	?
Payment for goods and services	?	(952,364,398)	?	(1,576,266,273)
Payment to and for employees	?	(977,064,794)	?	(942,542,615)
Payment of various taxes	?	(513,631,723)	?	(528,982,127)
Payment for other operating activities	?	(644,659,863)	?	(1,042,770,921)
?	?	?	?	?
Sub-total of cash outflows	?	(3,087,720,778)	?	(4,090,561,936)
?	?	?	?	?
?	?	?	?	?
Net cash inflow from operating activities	XV. 23(1)	115,446,213	?	2,451,267,460
?	?	?	?	?
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	931,412,417	?	191,270,404
Investment returns received	?	1,208,468,425	?	1,006,558,146
Net proceeds from disposal of fixed assets	?	303,987	?	2,791,799
Proceeds from other investing activities	?	470,877,944	?	3,334,425,767
?	?	?	?	?
Sub-total of cash inflows	?	2,611,062,773	?	4,535,046,116

The notes on pages 31 to 174 form part of these financial statements.

Page 21

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
II. Cash flows from investing activities (continued):	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(412,494,447)	?	(1,158,649,934)
Payment for acquisition of investments	?	(20,477,410,853)	?	(15,438,773,685)
Payment for other investing activities	?	(12,405,000,000)	?	(5,866,921,400)
?	?	?	?	?
Sub-total of cash outflows	?	(33,294,905,300)	?	(22,464,345,019)
?
?	?	?	?	?
Net cash outflow from investing activities	?	(30,683,842,527)	?	(17,929,298,903)
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from issuance of debentures	?	5,966,660,000	?	8,000,000,000
Proceeds from borrowings	?	21,867,000,000	?	19,341,142,361
Proceeds from other financing activities	?	23,967,730,377	?	14,869,430,596
?	?	?	?	?
Sub-total of cash inflows	?	51,801,390,377	?	42,210,572,957
?	?	?	?	?
Repayments of borrowings	?	(15,767,047,454)	?	(17,830,000,000)
Payment for dividends and interest	?	(2,254,787,893)	?	(2,289,037,712)
Payment for other financing activities	?	(2,398,651,425)	?	(6,801,944,858)
?	?	?	?	?
Sub-total of cash outflows	?	(20,420,486,772)	?	(26,920,982,570)
?
?	?	?	?	?
Net cash inflow from financing activities	?	31,380,903,605	?	15,289,590,387

The notes on pages 31 to 174 form part of these financial statements.

Page 22

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

?	Note	2020	?	2019
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	(133,212,123)	?	39,397,054
?	?	?	?	?
?	?	?	?	?
V. Net (decrease)/increase in cash and cash equivalents	XV. 23(1)	679,295,168	?	(149,044,002)
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	3,680,770,048	?	3,829,814,050
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	XV. 23(2)	4,360,065,216	?	3,680,770,048

These financial statements were approved by the Board of Directors of the Company on 9April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 23

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

I. Balance at the beginning 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

Add: Changes in accounting policies

III. 35

533,906,114

(533,906,114)

Adjusted balance at the beginning of the year

34,798,398,763

8,013,156,853

38,353,242,364

(4,566,639)

2,050,045,823

11,847,851,891

95,058,129,055

45,999,567,919

141,057,696,974

II. Changes in equity during the year

1. Total comprehensive income

177,438,725

5,035,627,952

5,213,066,677

(518,850,605)

4,694,216,072

2. Shareholders’ contributions of capital

(1) Contribution by non-controlling interests

10,663,566,927

(2) Contribution by holders of other equity instruments

V. 38

5,967,915,094

(3) Repurchase of treasury shares

V. 40

1,998,774,694

(1,998,774,694)

(4) Business combinations involving entities not under common control

VI. 1

14,293,193,400

(5) Changes in shareholding ratio of subsidiaries

V. 39

76,020,559

(76,020,559)

(6) Equity-settled share-based payments

(946,466,251)

(962,476,186)

16,009,935

1,201,528

17,211,463

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 42

373,919,158

(373,919,158)

(2) Accrued interest on holders of other equity instruments

V. 38

485,925,480

(485,925,480)

(3) Payment for interest on holders of other equity instruments

V. 38

(320,000,000)

(4) Distributions to shareholders

V. 43

(695,967,975)

(88,810,446)

(784,778,421)

The notes on pages 31 to 174 form part of these financial statements.

Page 24

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

V. 41/43

(195,070,158)

23,905,741

171,164,417

5. Others

(1) Disposal of subsidiaries to equity method accounting

VI. 2

(46,470,087)

(3,454,053)

3,454,053

(46,470,087)

(146,654,227)

(193,124,314)

(2) Other movements in equity of associates

V. 11

7,011,400

(3) Others

(7,682,051)

7,508,922

(173,129)

(6,226,058)

(6,399,187)

III. Balance at the end of the year

34,798,398,763

14,146,997,427

37,435,655,934

1,036,298,508

(22,198,072)

2,444,416,669

15,509,794,622

103,276,766,835

70,120,967,879

173,397,734,714

These financial statements were approved by the Board of Directors of the Company on 9 April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 25

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)

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

I. 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 of capital

(1) Contributed by non-controlling interests

14,066,343,889

(2) Non-controlling interests’ decrease of capital

(40,233,450)

(3) Contribution by holders of other equity instruments

7,957,047,264

(4) Business combinations involving entities not under common control

11,310,000

(5) Change in shareholding ratio of subsidiaries

123,068,274

(123,068,274)

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 43

368,556,446

(368,556,446)

(2) Accrued interest on holders of other equity instruments

56,109,589

(56,109,589)

(3) Distributions to shareholders

(1,043,951,963)

(10,911,242)

(1,054,863,205)

The notes on pages 31 to 174 form part of these financial statements.

Page 26

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)

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

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

V. 43

50,430,448

(5,043,047)

(45,387,401)

5. Others

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 9 April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 27

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2020(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Total

I. Balance at the beginning of the year

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

Add: Changes in accounting policies

III. 35

533,906,114

4,805,155,027

5,339,061,141

Adjusted balance at the beginning of the year

34,798,398,763

8,013,156,853

37,608,039,685

193,638,576

2,050,045,823

9,586,643,866

92,249,923,566

II. Changes in equity during the year

1. Total comprehensive income

136,131,965

3,739,191,584

3,875,323,549

2. Shareholders’ contributions of capital

(1) Contribution by holders of other equity instruments

V. 38?

5,967,915,094

(2) Repurchase of treasury shares

V. 40?

1,998,774,694

(1,998,774,694)

(3) Equity-settled share-based payments

(945,264,723)

(962,476,186)

17,211,463

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 42

373,919,158

(373,919,158)

(2) Accrued interest on holders of other equity instruments

V. 38

485,925,480

(485,925,480)

(3) Payment for interest on holders of other equity instruments

V. 38?

(320,000,000)

(4) Distributions to shareholders

V. 43

(695,967,975)

The notes on pages 31 to 174 form part of these financial statements.

Page 28

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

XV. 14/15

(239,057,408)

23,905,741

215,151,667

5. Others

(1) Disposal of subsidiaries to equity method accounting

VI. 2

(3,454,053)

(31,086,473)

(34,540,526)

(2) Other movements in equity of associates

XV. 5?

33,304,404

III. Balance at the end of the year

34,798,398,763

14,146,997,427

36,696,079,366

1,036,298,508

90,713,133

2,444,416,669

11,954,088,031

99,094,394,881

These financial statements were approved by the Board of Directors of the Company on 9 April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 29

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Other comprehensive income

Surplus reserve

Retained earnings

Total

I. 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

3. Appropriation of profits

(1) Appropriation for surplus reserve

368,556,446

(368,556,446)

(2) Accrued interest on holders of other equity instruments

56,109,589

(56,109,589)

(3) Distributions to shareholders

(1,043,951,963)

The notes on pages 31 to 174 form part of these financial statements.

Page 30

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)

Share capital

Other equity instruments

Capital reserve

Other comprehensive income

Surplus reserve

Retained earnings

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

50,430,448

(5,043,047)

(45,387,401)

5. Others

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 9 April 2021.


Chen Yanshun Chairman of the Board	Liu Xiaodong Chief Executive Officer	Sun Yun Chief Financial Officer	Yang Xiaoping The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 31 to 174 form part of these financial statements.

Page 31

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 ofthe Company and the Company’s ultimate holding company is Beijing Electronics HoldingsCo., Ltd. (“Electronics Holdings”).

The Company and its subsidiaries (referred to as the “Group”) comprise five main businesssegments: display business, smart systems innovation business, smart medicine &engineering integration business, sensor and application solutions business and Mini-LEDbusiness. For information about the subsidiaries of the Company, refer to Note VII.

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. In addition, it has adopted the revised “Accounting Standard forBusiness Enterprises No. 14 – Revenue” issued by the MOF in 2017 since 1 January 2020(see Note III.35), and has not adopted the revised “Accounting Standard for BusinessEnterprises No. 21 – Leases” issued by the MOF in 2018.

Certain overseas subsidiaries of the Group have adopted the revised “Accounting Standardfor Business Enterprises No. 21 – Leases”, issued by the MOF in 2018. The adoption of theabove standards does not have a material impact on the Group’s consolidated financialposition and consolidated financial 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”) issued by the MOF. These financial statements present truly andcompletely the consolidated financial position and financial position of the Company as at 31December 2020, and the consolidated financial performance and financial performance andthe consolidated cash flows and cash flows of the Company for the year then ended.

These financial statements also comply with the disclosure requirements of “Regulation 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.

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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

A transaction constitutes a business combination when the Group obtains control of one ormore entities (or a group of assets or net assets). Business combination is classified aseither business combinations involving enterprises under common control or businesscombinations not involving enterprises under common control.

For a transaction not involving enterprises under common control, the acquirer determineswhether acquired set of assets constitute a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is not a business. If the concentration test is met and the set of assets isdetermined not to be a business, no further assessment is needed. If the concentration testis not met, the Group shall perform the assessment according to the guidance on thedetermination of a business.

When the set of assets the group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable assets and liabilities at their acquisition date fairvalues. It is not required to apply the accounting of business combination described asbelow.

(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 recognised in profit or loss when incurred.The combination date is the date on which one combining entity obtains control of othercombining entities.

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(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 isrecognised as goodwill (see Note III.17). If (1) is less than (2), the difference is recognised inprofit or loss for the current period. The costs of issuing equity or debt securities as a part ofthe consideration for the acquisition are included in the carrying amounts of these equity ordebt securities upon initial recognition. Other acquisition-related costs are expensed whenincurred. Any difference between the fair value and the carrying amount of the assetstransferred as consideration is recognised in profit or loss. The acquiree’s identifiable asset,liabilities and contingent liabilities, if the recognition criteria are met, are recognised by theGroup at their acquisition-date fair value. The acquisition date is the date on which theacquirer 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 opening

Page 34

owners’ equity of the subsidiary, the excess is still allocated against the non-controllinginterests.

Page 35

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 ultimatecontrolling 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 economicallyjustified 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 of

Page 36

control shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.

Page 37

(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 rates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.

9 Financial instruments

Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments (see Note III.11),receivables, payables, loans and borrowings, debentures payable and share capital.

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(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.

A financial asset or financial liability is measured initially at fair value. For financial assetsand financial liabilities at fair value through profit or loss, any related directly attributabletransaction costs are charged to profit or loss; for other categories of financial assets andfinancial liabilities, any related directly attributable transaction costs are included in theirinitial costs. A trade receivable, without significant financing component or practicalexpedient applied for one year or less contracts, is initially measured at the transaction pricein accordance with Note III.23.

(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 collect

contractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

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 solely

payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis.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.

Page 39

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, reclassified, through the amortisationprocess or in order 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.

Page 40

(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；- 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 the

risks 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 not

retain control over the transferred asset.

Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognised in profit or loss:

- the carrying amount of the financial asset transferred measured at the date of

derecognition;- the sum of the consideration received from the transfer and, when the transferred financial

asset is a debt investment at FVOCI, any cumulative gain or loss that has been

recognised directly in other comprehensive income for the part derecognised.

The Group derecognises a financial liability (or part of it) only when its contractual obligation(or part of it) is extinguished.

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(6) Impairment

The Group recognises loss allowances for expected credit loss (ECL) on:

- financial assets measured at amortised cost;- contract assets;- Debt investments at FVOCI

Financial assets measured at fair value, including debt investments or equity securities atFVPL, 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 and contract assets are always measured at anamount equal to lifetime ECL. ECLs on these financial assets are estimated using a provisionmatrix based on the Group’s historical credit loss experience, adjusted for factors that arespecific to the debtors and an assessment of both the current and forecast general economicconditions at the balance sheet date.

Except for trade receivables and contract assets, the Group measures loss allowance at anamount equal to 12-month ECL for the following financial instruments, and at an amountequal to lifetime ECL for all 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.

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Significant increases in credit risk

In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.

When determining whether the credit risk of a financial asset has increased significantlysince initial recognition 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 or

internal 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, the

Group 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 financial

difficulties.

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.

Page 43

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.

Page 44

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.

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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 combination

is 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.29). 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.

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In the Group’s consolidated financial statements, investments in subsidiaries areaccounted for in accordance with the policies described in Note III.6.

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(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.29).

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 afterthe 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.

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For the impairment of the investments in joint ventures and associates, refer to NoteIII.19.

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(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.29). 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	20 - 40 years	?	0% - 10.0%	?	2.3% - 5.0%

13 Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in production of goods,for 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.

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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.29).

The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as follows:

Class	Estimated useful life (years)	?	Residual value rate (%)	?	Depreciation rate (%)
?	?	?	?	?	?
Plant & buildings	10 - 50 years	?	3% - 10%	?	1.8% - 9.7%
Equipment	2 - 25 years	?	0 - 10%	?	3.6% - 50%
Others	2 - 10 years	?	0 - 10%	?	9.0% - 50%

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. 28(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.

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Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.19).

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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 acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings.

The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognised amount of the borrowings.

During the capitalisation period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalised as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.

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 orcan be 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 capitalisation 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 less estimated residual value and accumulatedimpairment losses is amortised using the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale (see Note III.29).

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The respective amortisation periods for intangible assets are as follows:

Item	Amortisation period (years)
?	?
Land use rights	20 - 50 years
Patent and proprietary technology	5 - 20 years
Computer software	3 - 10 years
Others	5 - 20 years

Useful lives and amortisation methods of intangible asset with finite useful life are reviewedat least at each year-end. An intangible asset is regarded as having an indefinite useful lifeand is not amortised when there is no foreseeable limit to the period over which the asset isexpected to generate economic benefits for the Group. At the balance sheet date, the Groupdoes not have any intangible 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

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

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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, which is expected to benefit from the synergies of the combination forthe purpose 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.20) 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.

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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 Share-based payments

(1) Classification of share-based payments

Share-based payment transactions in the Group are equity-settled share-based payments.

(2) Accounting treatment of share-based payments

- Equity-settled share-based payments

Where the Group uses shares or other equity instruments as consideration for servicesreceived from the employees, the payment is measured at the fair value of the equityinstruments granted to the employees at the grant date. If the equity instruments granteddo not vest until the completion of services for a period, or until the achievement of aspecified performance condition, the Group recognises an amount at each balance sheetdate during the vesting period based on the best estimate of the number of equityinstruments expected to vest according to the newly obtained subsequent information ofthe changes of the number of the employees expected to vest the equity instruments. TheGroup measures the services received at the grant-date fair value of the equityinstruments and recognises the costs or expenses as the services are received, with acorresponding increase in capital reserve.

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23 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 when the Group satisfies the performance obligation in the contractby transferring the control over relevant goods or services to the customers.

Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of thetransaction price that is allocated to each performance obligation. The stand-alone sellingprice is the price at which the Group would sell a promised good or service separately to acustomer. If a stand-alone selling price is not directly observable, the Group considers allinformation that is reasonably available to the entity, maximises the use of observable inputsto estimate the stand-alone selling price.

For the contract which the Group grants a customer the option to acquire additional goods orservices (such as, loyalty points, discount coupons for future purchase, etc.,), the Groupassesses whether the option provides a material right to the customer. If the option providesa material right, the Group recognises the option as a performance obligation, andrecognises revenue when those future goods or services are transferred or when the optionexpires. If the stand-alone selling price for a customer’s option to acquire additional goods orservices is not directly observable, the Group estimates it, taking into account all relevantinformation, including the difference in the discount that the customer would receive whenexercising the option or without exercising the option, and the likelihood that the option willbe exercised.

For the contract with a warranty, the Group analyses the nature of the warranty provided, ifthe warranty provides the customer with a distinct service in addition to the assurance thatthe product complies with agreed-upon specifications, the Group recognises for the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS No.13 – Contingencies.

The transaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties. The Group recognises the transaction price onlyto the extent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved. To determine the transaction price for contracts inwhich a customer promises consideration in a form other than cash, the Group measures thenon-cash consideration at fair value. If the Group cannot reasonably estimate the fair valueof the non-cash consideration, the Group measures the consideration indirectly by referenceto the stand-alone selling price of the goods or services promised to the customer inexchange for the consideration. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the pricethat a customer would have paid for the promised goods or services if the customer had paidcash for those goods or services when (or as) they transfer to the customer. The differencebetween the amount of promised consideration and the cash selling price is amortised usingan effective interest method over the contract term. The Group does not adjust theconsideration for any effects of a significant financing component if it expects, at contract

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inception, that the period between when the Group transfers a promised good or service to acustomer and when the customer pays for that good or service will be one year or less.

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The Group satisfies a performance obligation over time if one of the following criteria is met;or otherwise, a performance obligation is satisfied at a point in time:

- the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance;or- the Group’s performance does not create an asset with an alternative use to it and theGroup has an enforceable right to payment for performance completed to date.

For performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.

For performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the Groupconsiders the following indicators:

- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards of

ownership of the goods to the customer; and- the customer has accepted the goods or services.

The Group determines whether it is a principal or an agent, depending on whether it obtainscontrol of the specified good or service before that good or service is transferred to acustomer. The Group is a principal if it controls the specified good or service before that goodor service is transferred to a customer, and recognises revenue in the gross amount ofconsideration to which it has received (or receivable). Otherwise, the Group is an agent, andrecognises revenue in the amount of any fee or commission to which it expects to be entitled.The fee or commission is the net amount of consideration that the Group retains after payingthe other party the consideration, or is the established amount or proportion.

For the sale of a product with a right of return, the Group recognises revenue when theGroup obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount ofwhich expected to be returned), and recognises a refund liability for the products expected tobe returned. Meanwhile, an asset is recognised in the amount of carrying amount of theproduct expected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products), and carry forward to cost in theamount of carrying amount of the transferred products less the above costs. At the end ofeach reporting period, the Group updates its assessment of future sales return. If there is anychange, it is accounted for as a change in accounting estimate.

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The Group determines whether the licence transfers to a customer either at a point in time orover time. If all of the following criteria are met, revenue is recognised for performanceobligations satisfied over time. Otherwise, revenue is recognised for performance obligationssatisfied at a point in time.

- the contract requires, or the customer reasonably expects, that the Group will undertakeactivities that significantly affect the intellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negativeeffects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as thoseactivities occur.

The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence of intellectual property only when (or as) the later of the followingevents occurs:

- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied).

For a change in the scope or price of a contract that is approved by the parties to thecontract, the Group accounts for the contract modification according to the followingsituations:

- The addition of promised goods or services are distinct and the price of the contractincreases by an amount of consideration reflects stand-alone selling prices of theadditional promised goods or services, the Group shall account for a contract modificationas a separate contract.

- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on the date of the contract modification, the Group accountsfor the contract modification as if it were a termination of the existing contract and thecreation of a new contract.

- If the above criteria are not met, and the remaining goods or services are not distinct fromthe goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a part of the existing contract. Theeffect that the contract modification has on the revenue is recognised as an adjustment torevenue in the reporting period.

A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.9(6)). Accounts receivable is the Group’s right to consideration that isunconditional (only the passage of time is required). A contract liability is the Group’sobligation to transfer goods or services to a customer for which the Group has receivedconsideration (or an amount of consideration is due) from the customer.

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The following is the description of accounting policies regarding revenue from the Group’sprincipal activities:

(1) Sale of goods

The sales contracts/orders signed between the Group and its customers usuallycontain various trading terms. Depending on the trading terms, customers obtaincontrol of the goods when the goods are delivered and received, or when they arereceived by the carrier. Revenue of sale of goods is recognised at that point in time.

For the transfer of goods with a right of return, revenue is recognised to the extent thatit is highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur. Therefore, the amount of revenue recognised is adjusted forthe amount expected to be returned, which are estimated based on the historical data.The Group recognises a refund liability based on the amount expected to be returned.An asset is initially measured by reference to the former carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value to the Group of returned products). At each balancesheet date, the Group updates the measurement of the refund liability for changes inexpectations about the amount of funds. The above asset and liability are adjustedaccordingly.

(2) Rendering of services

The Group recognises the revenue from rendering of services within a certain period oftime according to the progress of the performance as the customer simultaneouslyreceives and consumes the benefits provided by the Group’s performance as theGroup performs. Otherwise, for performance obligation satisfied at a point in time, theGroup recognises revenue at the point in time at which the customer obtains control ofrelevant services.

24 Contract costs

Contract costs are either the incremental costs of obtaining a contract with a customer or thecosts to fulfil a contract with a customer.

Incremental costs of obtaining a contract are those costs that the Group incurs to obtain acontract with a customer that it would not have incurred if the contract had not beenobtained. The Group recognises as an asset the incremental costs of obtaining a contractwith a customer if it expects to recover those costs. Other costs of obtaining a contract areexpensed when incurred.

If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:

- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.

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Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognised in profit or loss for the current period.

The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:

- remaining amount of consideration that the Group expects to receive in exchange for thegoods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet been

recognised as expenses.

25 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 accrued at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.

(2) Post-employment benefits – defined contribution plans

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 ofan 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.

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26 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 recognises the long-term assets purchasedand constructed, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages when related assets are initially depreciated or amortised; orthe deferred income is written off against the carrying amount of the asset when the assetbecomes ready for its intended status or intended use. If the Group obtains governmentgrants related to the assets after relevant long-term assets are put into use, deferred incomeis included in profit and loss based on a reasonable and systematic approach by stageswithin the remaining useful life of relevant assets, or the deferred income is written offagainst the carrying amount of relevant asset when the grants are obtained; the assets shallbe depreciated or amortised 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 recognised 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 arecapitalised as part of the cost of the asset (see Note III.15), the interest subsidy shall be usedto offset relevant asset costs.

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27 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 currenttax assets;

- they relate to income taxes levied by the same tax authority on either:

- the same taxable entity; or

- different taxable entities which intend either to settle the current tax liabilities andcurrent tax assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred taxliabilities or deferred tax assets are expected to be settled or recovered.

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28 Operating leases and finance leases

A lease is classified as either a finance lease or an operating lease. A lease is classified as afinance lease if it transfers substantially all the risks and rewards incidental to ownership ofan underlying asset 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.

29 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.

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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.27)) 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.

30 Hedge accounting

Hedge accounting is a method which recognises in profit or loss (or other comprehensiveincome) 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’shedged items include fixed-rate borrowings that expose the Group to the risk of changes infair value, a firm commitment that is settled with a fixed amount of foreign currency and thatexposes the 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 the

economic 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 hedginginstrument that 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.

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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 hedgeditem from 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

cash flow 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 isimmediately reclassified from the cash flow hedge reserve to profit or loss as areclassification adjustment.

31 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.

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32 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.

33 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. Segment accounting policies are consistent with those forthe consolidated financial statements.

34 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 ofvarious types of assets (see Notes V.4, 6, 7, 8, 11, 14, 15, 16 and 17 and Notes XV.2, 3, 5and 6). Other significant accounting estimates are as follows:

(i) Note V.19: – Recognition of deferred tax assets;(ii) Note V.30 – Warranty provisions;(iii) Note IX – Valuation of fair value of financial instruments; and(iv) Note XI: – Share-based payments.

Significant judgements made by the Group in the application of accounting policies are asfollows:

(i) Note VII.1(1) –Significant judgements and assumptions in determining control over

other entity.

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35 Changes in accounting policies

(1) Description and reasons of changes in accounting policies

In 2020, the Group has adopted the following accounting standards issued by the MOFrecently:

- CAS No.14 - Revenue (Revised) (“new revenue standard”)- CAS Bulletin No.13 (Caikuai [2019] No.21)- The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai [2020] No.10)

(a) New revenue standard

New revenue standard replaces CAS No.14 – Revenue and CAS No.15 - ConstructionContracts issued by the MOF in 2006 (“previous revenue standard”).

Under previous revenue standard, the Group recognised revenue when the risks andrewards had passed to the customers. The Group's revenue from sales of goods wasrecognised when the following conditions were met: the significant risks and rewards ofownership of the goods had been transferred to the customer, the amount of revenueand related costs could be reliably measured, the relevant economic benefits wouldprobably flow to the Group and the Group retained neither continuing managerialinvolvement to the degree usually associated with ownership nor effective control overthe goods sold. Revenue from rendering of services and revenue from constructioncontracts were recognised by reference to the stage of completion of the transaction atthe balance sheet date.

Under new revenue standard, revenue is recognised when the customer obtainscontrol of the promised goods or services in the contract:

- Revenue is recognised when the Group satisfies the performance obligation in thecontract by transferring the control over relevant goods or services to the customers.The Group satisfies a performance obligation over time if certain criteria is met; orotherwise, a performance obligation is satisfied at a point in time. Where a contracthas two or more performance obligations, the Group determines the stand-aloneselling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price inproportion to those stand-alone selling prices. The Group recognises as revenue theamount of the transaction price that is allocated to each performance obligation. Thetransaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer,excluding amounts collected on behalf of third parties. The Group recognises thetransaction price only to the extent that it is highly probable that a significant reversalin the amount of cumulative revenue recognised will not occur when the uncertaintyassociated with the variable consideration is subsequently resolved. Where thecontract contains a significant financing component, the Group recognises thetransaction price at an amount that reflects the price that a customer would havepaid for the promised goods or services if the customer had paid cash for thosegoods or services when (or as) they transfer to the customer. The differencebetween the amount of promised consideration and the cash selling price isamortised using an effective interest method over the contract term.

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- The Group have adjusted the relevant accounting policies in accordance with the

specific provisions on specific matters or transactions under new revenue standard,such as contract costs, warranties, principal versus agent considerations, sale with aright of return, customer options for additional goods or services, licensing,repurchase agreements, advance receipts, non-refundable upfront fee, etc.

- Under new revenue standard, the Group presents a contract asset or a contractliability in the balance sheet based on the relationship between the Group'sperformance and the customer's payment. At the same time, the Group providesmore disclosures on revenue and related information based on the disclosurerequirements under new revenue standard, such as relevant accounting policies,significant judgements (measurement of variable consideration, the method used toallocate the transaction price to each performance obligation, the assumption usedfor estimating stand-alone selling price of each performance obligation, etc.),information of contracts with customers (revenue recognised in current period,contract balance, performance obligation, etc.), information of assets related tocontract costs, etc.

The effect of adopting new revenue standard on the Group’s accounting policies are asfollows:

- When there is a third party participating in sales of goods to customers, underprevious revenue standard, the Group determines whether it is a principal or anagent by comprehensively taking into account whether it has pricing rights andassumes any inventory risk and credit risk and other factors. Under new revenuestandard, the Group determines according to the following conditions: 1) the entitytransfers to the customer after having obtained the control of the goods or otherassets from a third party; 2) the entity can engage a third party to provide services tothe customer on its behalf; 3) after obtaining control of the goods from a third party,the entity integrates the goods with other goods by providing a significant service toform a compound output to transfer to the customer.

- The transportation costs related to sales contract assumed by the Group arepresented as selling expenses under previous revenue standard. According to theaccounting requirements of new revenue standard, transportation is a necessaryactivity when the Group is fulfilling the sales contract, and therefore the related costsare the costs to fulfil a contract, which will be adjusted to be presented underoperating costs after the adoption of new revenue standard.

- For advance from customers for transfer of goods (or rendering of services), under

previous revenue standard, the Group will include it in “Advance from customers”.Under new revenue standard, the Group presents its obligation to transfer goods forwhich the Group has received consideration from the customer in the balance sheetas a “contract liability” since 1 January 2020, depending on the relationship betweenthe entity's performance and the customer's payment. Comparative figures are notrestated.

- For the transfer of products with a right of return, under previous revenue standardthe Group made a reasonable estimation of the return based on experience, thenadjusted revenue and corresponding cost for the amount expected to be returnedand recognised the difference as a liability. Under new revenue standard, the Grouprecognises a refund liability based on the amount expected to be returned. Theproduct expected to be returned is initially recognised as an asset for the right torecover returned goods.

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- For the revenue from granting of a licence of intellectual property to subsidiaries of

the Group, under previous revenue standard, the company recognises revenueaccording to the period and method of charging as stipulated in the relevantcontracts or agreements. Under new revenue standard, if all of the following criteriaare met, revenue is recognised for performance obligations satisfied over time.Otherwise, revenue is recognised for performance obligations satisfied at a point intime: 1) the contract requires, or the customer reasonably expects, that the Groupwill undertake activities that significantly affect the intellectual property to which thecustomer has rights; 2) the rights granted by the licence directly expose thecustomer to any positive or negative effects of the Group’s activities; and 3) thoseactivities do not result in the transfer of a good or a service to the customer as thoseactivities occur. When the Company grants a licence of intellectual property tosubsidiaries, the revenue shall be recognised at a point in time.

The Group has recognised the cumulative effect of initial application as an adjustmentto the opening balance of retained earnings and the amount of other relevant items inthe financial statements at 1 January 2020, and comparative information has not beenrestated. The Group only adjusted the cumulative effect of contracts that were notcompleted before 1 January 2020 to the opening balance of retained earnings and theamount of other relevant items in the financial statements at 1 January 2020.

The following tables provide information of the impact on each of the line items in theconsolidated income statement and company income statement, and the consolidatedbalance sheet and company balance sheet, as well as the consolidated cash flowstatement and company cash flow statement for the year ended 31 December 2020had the previous policies still been applied in the year.

- The effects on each of the line items in the consolidated income statement andcompany income statement for the year ended 31 December 2020 are analysed asfollows:

?	Decrease in the line items for the year as a result of applying new accounting policies
?	The Group	?	The Company
?	?	?	?
Operating income from principal activities	(9,117,107,992)	?	(1,200,000,000)
Operating cost of principal activities	(8,446,207,600)	?	-
Selling and distribution expenses	(670,900,392)	?	-
Profit before income tax	-		(1,200,000,000)
Income tax expenses	-		(180,000,000)
Net profit for the year	-		(1,020,000,000)

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- The effects on each of the line items in the consolidated balance sheet and

company balance sheet as at 31 December 2020 are analysed as follows:

?	Decrease/(increase) in the line items as a result of applying new accounting policies
?	The Group	?	The Company
?	?	?	?
Assets	?	?	?
Accounts receivable	(49,897,395)	?	1,723,155,949
Contract assets	49,897,395	?	-
Other current assets	131,986,424	?	-
Deferred tax assets	-		(315,937,260)
Other non-current assets	-		2,250,000,000
?	?	?	?
Liabilities	?	?	?
Advance from customers	(3,719,511,537)	?	(1,108,092,452)
Contract liabilities	3,440,720,535	?	-
Other current liabilities	410,777,426	?	-
Deferred tax liabilities	-		(446,250,000)
?	?	?	?
Shareholders’ equity
Surplus reserve	-		431,906,114
Retained earnings	-		3,887,155,027

The impact of the adoption of new revenue standard on each of the line items in theconsolidated balance sheet and company balance sheet as at 1 January 2020 areanalysed as follows:

?	The Group
?	31 December 2019	?	1 January 2020	?	Adjustments
Assets	?	?	?	?	?
?	?	?	?	?	?
Current assets	?	?	?	?	?
Cash at bank and on hand	56,972,723,239	?	56,972,723,239	?	-
Financial assets held for trading	5,809,184,994	?	5,809,184,994	?	-
Bills receivable	331,145,492	?	331,145,492	?	-
Accounts receivable	18,135,687,806	?	18,107,976,861	?	(27,710,945)
Contract assets	-	?	27,710,945	?	27,710,945
Prepayments	626,985,706	?	626,985,706	?	-
Other receivables	706,171,112	?	706,171,112	?	-
Inventories	12,396,194,762	?	12,396,194,762	?	-
Assets held for sale	173,910,820	?	173,910,820	?	-
Other current assets	9,296,637,067	?	9,375,901,777	?	79,264,710
?	?	?	?	?	?
Total current assets	104,448,640,998	?	104,527,905,708	?	79,264,710
?	?	?	?	?	?
Non-current assets	?	?	?	?	?
?	?	?	?	?	?
Long-term equity investments	2,718,037,934	?	2,718,037,934	?	-
Investments in other equity instruments	632,076,647	?	632,076,647	?	-
Investment properties	1,241,242,850	?	1,241,242,850	?	-
Fixed assets	125,786,241,938	?	125,786,241,938	?	-
Construction in progress	87,376,782,527	?	87,376,782,527	?	-
Intangible assets	7,416,416,829	?	7,416,416,829	?	-
Goodwill	707,603,856	?	707,603,856	?	-
Long-term deferred expenses	345,424,409	?	345,424,409	?	-
Deferred tax assets	248,153,761	?	248,153,761	?	-
Other non-current assets	9,491,581,559	?	9,491,581,559	?	-
?	?	?	?	?	?
Total non-current assets	235,963,562,310	?	235,963,562,310	?	-
?	?	?	?	?	?

Total assets	340,412,203,308	?	340,491,468,018	?	79,264,710

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?	The Group
?	31 December 2019	?	1 January 2020	?	Adjustments
Liabilities and shareholders’ equity	?	?	?	?	?
?	?	?	?	?	?
Current liabilities	?	?	?	?	?
Short-term loans	6,366,717,121	?	6,366,717,121	?	-
Bills payable	2,028,917,980	?	2,028,917,980	?	-
Accounts payable	21,183,567,553	?	21,183,567,553	?	-
Advance payments received	1,260,732,785	?	123,152,835	?	(1,137,579,950)
Contract liabilities	-	?	1,083,074,827	?	1,083,074,827
Employee benefits payable	2,373,745,454	?	2,373,745,454	?	-
Taxes payable	730,996,129	?	730,996,129	?	-
Other payables	24,570,589,610	?	24,570,589,610	?	-
Non-current liabilities due within one year	18,849,281,019	?	18,849,281,019	?	-
Other current liabilities	1,013,738,515	?	1,147,508,348	?	133,769,833
?	?	?	?	?	?
Total current liabilities	78,378,286,166	?	78,457,550,876	?	79,264,710
?	?	?	?	?	?
Non-current liabilities	?	?	?	?	?
Long-term loans	107,730,595,615	?	107,730,595,615	?	-
Debentures payable	387,878,384	?	387,878,384	?	-
Long-term payables	984,520,824	?	984,520,824	?	-
Provisions	16,457,010	?	16,457,010	?	-
Deferred income	2,204,400,566	?	2,204,400,566	?	-
Deferred tax liabilities	1,451,825,357	?	1,451,825,357	?	-
Other non-current liabilities	8,200,542,412	?	8,200,542,412	?	-
?	?	?	?	?	?
Total non-current liabilities	120,976,220,168	?	120,976,220,168	?	-
?	?	?	?	?	?
?	?	?	?	?	?
Total liabilities	199,354,506,334	?	199,433,771,044	?	79,264,710
?	?	?	?	?	?
?	?	?	?	?	?
Shareholders’ equity	?	?	?	?	?
Share capital	34,798,398,763	?	34,798,398,763	?	-
Other equity instruments	8,013,156,853	?	8,013,156,853	?	-
Capital reserve	38,353,242,364	?	38,353,242,364	?	-
Other comprehensive income	(4,566,639)	?	(4,566,639)	?	-
Surplus reserve	1,516,139,709	?	2,050,045,823	?	533,906,114
Retained earnings	12,381,758,005	?	11,847,851,891	?	(533,906,114)
?	?	?	?	?	?
Total equity attributable to shareholders of the Company	95,058,129,055	?	95,058,129,055	?	-
?	?	?	?	?	?
Non-controlling interests	45,999,567,919	?	45,999,567,919	?	-
?	?	?	?	?	?
Total shareholders’ equity	141,057,696,974	?	141,057,696,974	?	-
?	?	?	?	?	?
?	?	?	?	?	?
Total liabilities and shareholders’ equity	340,412,203,308	?	340,491,468,018	?	79,264,710

Page 76

?	The Company
?	31 December 2019	?	1 January 2020	?	Adjustments
Assets	?	?	?	?	?
?	?	?	?	?	?
Current assets	?	?	?	?	?
Cash at bank and on hand	3,680,770,048	?	3,680,770,048	?	-
Bills receivable	84,230,531	?	84,230,531	?	-
Accounts receivable	646,533,115	?	1,698,906,221	?	1,052,373,106
Prepayments	77,682,682	?	77,682,682	?	-
Other receivables	4,827,398,094	?	4,827,398,094	?	-
Inventories	13,935,401	?	13,935,401	?	-
Other current assets	109,497,897	?	109,497,897	?	-
?	?	?	?	?	?
Total current assets	9,440,047,768	?	10,492,420,874	?	1,052,373,106
?	?	?	?	?	?
Non-current assets	?	?	?	?	?
?	?	?	?	?	?
Long-term equity investments	159,389,864,760	?	159,389,864,760	?	-
Investments in other equity instruments	79,405,724	?	79,405,724	?	-
Investment properties	280,525,802	?	280,525,802	?	-
Fixed assets	949,104,308	?	949,104,308	?	-
Construction in progress	358,933,667	?	358,933,667	?	-
Intangible assets	1,493,632,264	?	1,493,632,264	?	-
Long-term deferred expenses	109,216,398	?	109,216,398	?	-
Deferred tax assets	360,268,466	?	-	?	(360,268,466)
Other non-current assets	162,516,190	?	3,337,516,190	?	3,175,000,000
?	?	?	?	?	?
Total non-current assets	163,183,467,579	?	165,998,199,113	?	2,814,731,534
?	?	?	?	?	?
?	?	?	?	?	?
Total assets	172,623,515,347	?	176,490,619,987	?	3,867,104,640

Page 77

?	The Company
?	31 December 2019	?	1 January 2020	?	Adjustments
Liabilities and shareholders’ equity	?	?	?	?	?
?	?	?	?	?	?
Current liabilities	?	?	?	?	?
Short-term loans	1,220,000,000	?	1,220,000,000	?	-
Accounts payable	27,919,341	?	27,919,341	?	-
Advance payments received	2,117,568,995	?	9,476,543	?	(2,108,092,452)
Contract liabilities	-	?	51,148,261	?	51,148,261
Employee benefits payable	252,206,075	?	252,206,075	?	-
Taxes payable	107,287,957	?	107,287,957	?	-
Other payables	5,260,470,974	?	5,260,470,974	?	-
Non-current liabilities due within one year	5,490,440,787	?	5,490,440,787	?	-
Other current liabilities	1,423,133	?	4,492,029	?	3,068,896
?	?	?	?	?	?
Total current liabilities	14,477,317,262	?	12,423,441,967	?	(2,053,875,295)
?	?	?	?	?	?
Non-current liabilities	?	?	?	?	?
Long-term loans	33,310,701,574	?	33,310,701,574	?	-
Deferred income	4,627,393,256	?	4,627,393,256	?	-
Deferred tax liabilities	-	?	581,918,794	?	581,918,794
Other non-current liabilities	33,297,240,830	?	33,297,240,830	?	-
?	?	?	?	?	?
Total non-current liabilities	71,235,335,660	?	71,817,254,454	?	581,918,794
?	?	?	?	?	?
?	?	?	?	?	?
Total liabilities	85,712,652,922	?	84,240,696,421	?	(1,471,956,501)
?	?	?	?	?	?
?	?	?	?	?	?
Shareholders’ equity	?	?	?	?	?
Share capital	34,798,398,763	?	34,798,398,763	?	-
Other equity instruments	8,013,156,853	?	8,013,156,853	?	-
Capital reserve	37,608,039,685	?	37,608,039,685	?	-
Other comprehensive income	193,638,576	?	193,638,576	?	-
Surplus reserve	1,516,139,709	?	2,050,045,823	?	533,906,114
Retained earnings	4,781,488,839	?	9,586,643,866	?	4,805,155,027
?	?	?	?	?	?
Total shareholders’ equity	86,910,862,425	?	92,249,923,566	?	5,339,061,141
?	?	?	?	?	?
?	?	?	?	?	?
Total liabilities and shareholders’ equity	172,623,515,347	?	176,490,619,987	?	3,867,104,640

Page 78

(b) CAS Bulletin No.13

CAS Bulletin No.13 amends the three elements that constitute a business, providesspecific guidance on the determination of a business, and introduces an optionalconcentration test when the acquirer determines whether the acquired operatingactivities or asset portfolios not involving enterprises under common control constitutea business.

In addition, CAS Bulletin No.13 has further clarified that related parties of an entity alsoinclude the joint venture(s) or associate(s) of the other members (including the parentand subsidiaries) in the same group that includes the entity, and the other jointventure(s) or associate(s) of the investors who exercise joint control over the entity, etc.

CAS Bulletin No.13 takes effect on 1 January 2020. The Group has adopted theaccounting policy change prospectively. The adoption of CAS Bulletin No.13 does nothave any significant effect on the financial position, financial performance or relatedparty disclosures of the Group.

Caikuai [2020] No.10 provides a practical expedient under certain conditions for rentconcessions occurring as a direct consequence of the Covid-19 pandemic. If an entityelects to apply the practical expedient, the entity does not need to assess whether alease modification has occurred or to reassess the lease classification.

Caikuai [2020] No.10 takes effect on 24 June 2020 (the implementation date). Theentity is allowed to adjust the related rent concessions that occurred between 1January 2020 and the implementation date. The adoption of Caikuai [2020] No.10 doesnot have any significant effect on the financial position or financial performance of theGroup.

Page 79

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%, 13%, 16%
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	?	15% - 33%

2 Corporate income tax

The income tax rate applicable to the Company for the year is 15% (2019: 15%).

Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.28, corporate income tax for key advanced and high-tech enterprises supported by the Stateis applicable to a preferential tax rate of 15%.

On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No.GR202011004594, 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.

Page 80

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 Electronics Co., 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
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 BOE Vacuum Technology Co., Ltd. (Vacuum Technology)	15%	?	High-tech Enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy)	15%	?	High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE)	15%	?	High-tech Enterprise
Hefei BOE Vision-Electronic Technology Co., Ltd. (Hefei Technology)	15%	?	High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE)	15%	?	Encouraged enterprise in Western Regions
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT)	15%	?	High-tech Enterprise
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
Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE)	15%	?	High-tech Enterprise
Nanjing CEC Panda FPD Technology Co., Ltd. (Nanjing CEC Panda)	15%	?	High-tech Enterprise
Chengdu CEC Panda Display Technology Co., Ltd. (Chengdu CEC Panda)	15%	?	Encouraged enterprise in Western Regions
BOE Regenerative Medical Technology Co., Ltd. (Regenerative Medical)	15%	?	High-tech Enterprise

Page 81

V. Notes to the consolidated financial statements

1 Cash at bank and on hand

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	277,055	?	?	?	?	?	352,736
USD	1,493	?	6.5249	?	9,741	?	1,927	?	6.9762	?	13,443
HKD	55,494	?	0.8416	?	46,706	?	96,829	?	0.8958	?	86,739
JPY	58,474	?	0.0632	?	3,698	?	51,485	?	0.0641	?	3,300
KRW	490,445	?	0.0060	?	2,941	?	490,690	?	0.0060	?	2,944
Other foreign currencies	?	?	?	?	60,900	?	?	?	?	?	79,176
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	401,041	?	?	?	?	?	538,338
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	39,618,620,160	?	?	?	?	?	22,108,949,641
USD	4,051,241,539	?	6.5249	?	26,433,945,919	?	3,793,451,398	?	6.9762	?	26,463,875,643
HKD	21,037,675	?	0.8416	?	17,706,149	?	17,880,803	?	0.8958	?	16,017,623
JPY	15,628,343,064	?	0.0632	?	988,273,902	?	11,996,438,527	?	0.0641	?	768,971,710
KRW	521,128,601	?	0.0060	?	3,125,209	?	700,598,718	?	0.0060	?	4,203,592
EUR	136,705,809	?	8.0250	?	1,097,064,115	?	110,515,896	?	7.8155	?	863,736,985
Other foreign currencies	?	?	?	?	46,443,965	?	?	?	?	?	43,452,413
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	68,205,179,419	?	?	?	?	?	50,269,207,607
?	?	?	?	?	?	?	?	?	?	?	?
Other monetary funds	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	3,949,848,676	?	?	?	?	?	3,728,439,717
USD	218,704,451	?	6.5249	?	1,427,024,669	?	421,172,173	?	6.9762	?	2,938,181,313
HKD	15	?	0.8416	?	13	?	3,156	?	0.8958	?	2,827
JPY	1,769,656,282	?	0.0632	?	111,842,277	?	567,260,199	?	0.0641	?	36,353,437
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	5,488,715,635	?	?	?	?	?	6,702,977,294
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	73,694,296,095	?	?	?	?	?	56,972,723,239

Including: Total overseas deposits were equivalent to RMB 7,025,632,935 (2019: RMB5,864,466,250).

As at 31 December 2020, other monetary funds were pledged by the Group amounting toRMB 99,133,679 for long-term loans, and USD 152,091,672 were pledged for short-termloans. The rest of other restricted monetary funds, amounting to RMB 4,396,583,003, werethe deposits in commercial banks as security.

As at 31 December 2019, other monetary funds were pledged by the Group amounting toUSD 342,000,000 for short-term loans, and RMB 151,840,291 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.

2 Financial assets held for trading

Item

Item	31 December 2020	?	31 December 2019
?	?	?	?
Financial assets at fair value through profit or loss	?	?	?
- Structured deposit and wealth management products	4,367,201,833	?	5,809,184,994

Page 82

3 Bills receivable

(1) Classification of bills receivable

Item	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Bank acceptance bills	?	215,994,373	?	331,145,492
?	?	?	?	?
Total	?	215,994,373	?	331,145,492

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 2020, there is no pledged bills for the Group (2019: Nil).

(3) Outstanding endorsed or discounted bills that have not matured at the end of the year

??Item

Item	?	Amount derecognised as at 31 December 2020	?	Amount not derecognised as at 31 December 2020
?	?	?	?	?
Bank acceptance bills	?	4,370,824	?	60,214,157
?	?	?	?	?
Total	?	4,370,824	?	60,214,157

For the year ended 31 December 2020, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2019:

Nil).

4 Accounts receivable

(1) The Group’s accounts receivable by customer type:

Item

Item	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Amounts due from related parties	?	38,773,536	?	1,960,247
Amounts due from other customers	?	22,988,229,841	?	18,481,732,857
?	?	?	?	?
Sub-total	?	23,027,003,377	?	18,483,693,104
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	57,863,022	?	348,005,298
?	?	?	?	?
Total	?	22,969,140,355	?	18,135,687,806

Page 83

(2) The Group’s accounts receivable by currency type:

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	8,322,396,079	?	?	?	?	?	8,041,480,485
USD	2,136,679,897	?	6.5249	?	13,941,622,660	?	1,438,995,152	?	6.9762	?	10,038,717,980
JPY	36,855,786	?	0.0632	?	2,329,286	?	25,172,988	?	0.0641	?	1,613,589
Other foreign currencies	?	?	?	?	760,655,352	?	?	?	?	?	401,881,050
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	23,027,003,377	?	?	?	?	?	18,483,693,104
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	57,863,022	?	?	?	?	?	348,005,298
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	22,969,140,355	?	?	?	?	?	18,135,687,806

(3) The ageing analysis of accounts receivable is as follows:

???

?	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Within 1 year (inclusive)	?	22,515,188,628	?	17,872,807,760
Over 1 year but within 2 years (inclusive)	?	256,800,012	?	233,485,656
Over 2 years but within 3 years (inclusive)	?	172,351,904	?	68,549,411
Over 3 years	?	82,662,833	?	308,850,277
?	?	?	?	?
Sub-total	?	23,027,003,377	?	18,483,693,104
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	57,863,022	?	348,005,298
?	?	?	?	?
Total	?	22,969,140,355	?	18,135,687,806

The ageing is counted starting from the date when accounts receivable are recognised.

(4) Accounts receivable by provisioning method

???

?	31 December 2020
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	60,093,972	?	0%	?	41,752,588	?	69%	?	18,341,384
- Customers with low credit risk	1,036,981,635	?	5%	?	-	?	0%	?	1,036,981,635
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	21,929,927,770	?	95%	?	16,110,434	?	0%	?	21,913,817,336
?	?	?	?	?	?	?	?	?	?
Total	23,027,003,377	?	100%	?	57,863,022	?	0%	?	22,969,140,355

???

?	31 December 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

Page 84

(a) Criteria for collective assessment in 2020 and details:

Customer group	?	Basis
?	?	?
Customers with high credit risk	?	With special matters, litigations or the deterioration of customers’ credit status
Customers with low credit risk	?	Banks, insurance companies, large state-owned enterprises and public institutions
Customers with moderate credit risk	?	Customers not included in Groups above

(b) Assessment of ECLs on accounts receivable in 2020:

At all times the Group measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of overduedays and the expected loss rate. According to the Group’s historical experience,different loss models are applicable to different customer groups.

(5) Movements of provisions for bad and doubtful debts:

?	31 December 2020	?	31 December 2019
?	?	?	?
Balance at the beginning of the year	348,005,298	?	325,211,590
Charge during the year	13,048,035	?	23,510,271
Recoveries during the year	(15,387,358)	?	(1,493,365)
Written-off during the year	(285,159,459)	?	(4,211,814)
Translation differences	(2,643,494)	?	4,988,616
?	?	?	?
Balance at the end of the year	57,863,022	?	348,005,298

(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 RMB7,874,647,846, representing 34% 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:

???

?	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Prepayment for inventory	?	617,801,035	?	107,673,472
Prepayment for electricity and water	?	230,580,992	?	271,295,136
Others	?	271,213,957	?	248,017,098
?	?	?	?	?
Total	?	1,119,595,984	?	626,985,706

Page 85

(2) The ageing analysis of prepayments is as follows:

?	31 December 2020			?	31 December 2019
Ageing	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)
?	?	?	?	?	?	?	?
Within 1 year (inclusive)	1,008,648,097	?	90%	?	459,763,565	?	73%
Over 1 year but within 2 years (inclusive)	18,143,348	?	2%	?	148,351,079	?	24%
Over 2 years but within 3 years (inclusive)	84,733,056	?	8%	?	17,719,439	?	3%
Over 3 years	8,071,483	?	-	?	1,151,623	?	-
?	?	?	?	?	?	?	?
Total	1,119,595,984	?	100%	?	626,985,706	?	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 RMB712,385,803, representing 64% of the total prepayments.

6 Other receivables

?	Note	31 December 2020	?	31 December 2019
?	?	?	?	?
Interest receivable	?	2,037,452	?	215,977,831
Dividends receivable	?	1,842,137	?	-
Others	(1)	654,235,244	?	490,193,281
?	?	?	?	?
Total	?	658,114,833	?	706,171,112

(1) Others

(a) The Group’s other receivable by customer type:

Customer type

Customer type	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Amounts due from related parties	?	14,062,445	?	603,515
Amounts due from other customers	?	649,216,811	?	498,225,877
?	?	?	?	?
Sub-total	?	663,279,256	?	498,829,392
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,044,012	?	8,636,111
?	?	?	?	?
Total	?	654,235,244	?	490,193,281

Page 86

(b) The Group’s other receivable by currency type:

?	31 December 2020					?	31 December 2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	577,989,243	?	?	?	?	?	457,159,067
USD	7,746,274	?	6.5249	?	50,543,663	?	3,966,373	?	6.9762	?	27,670,211
JPY	35,289,875	?	0.0632	?	2,230,320	?	42,000,525	?	0.0641	?	2,692,234
Other foreign currencies	?	?	?	?	32,516,030	?	?	?	?	?	11,307,880
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	663,279,256	?	?	?	?	?	498,829,392
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	9,044,012	?	?	?	?	?	8,636,111
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	654,235,244	?	?	?	?	?	490,193,281

???

?	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Within 1 year (inclusive)	?	336,023,652	?	209,994,098
Over 1 year but within 2 years (inclusive)	?	65,883,117	?	25,165,256
Over 2 years but within 3 years (inclusive)	?	18,983,553	?	14,546,942
Over 3 years	?	242,388,934	?	249,123,096
?	?	?	?	?
Sub-total	?	663,279,256	?	498,829,392
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,044,012	?	8,636,111
?	?	?	?	?
Total	?	654,235,244	?	490,193,281

The ageing is counted starting from the date when other receivables are recognised.

(d) Other receivables by provisioning method

???

?	31 December 2020
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	9,044,012	?	1%	?	9,044,012	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	654,235,244	?	99%	?	-	?	0%	?	654,235,244
?	?	?	?	?	?	?	?	?	?
Total	663,279,256	?	100%	?	9,044,012	?	1%	?	654,235,244

???

?	31 December 2019
?	Book value			?	Provision for impairment			?	?
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

Page 87

(e) Movements of provisions for bad and doubtful debts

?	?	31 December 2020	?	31 December 2019
?	?	?	?	?
Balance at the beginning of the year	?	8,636,111	?	2,933,581
Charge during the year	?	572,266	?	6,251,161
Recoveries during the year	?	(60,462)	?	(5,440)
Written-off during the year	?	(103,903)	?	(543,191)
?	?	?	?	?
Balance at the end of the year	?	9,044,012	?	8,636,111

(f) The Group’s other receivables categorised by nature

Nature

Nature	?	31 December 2020	?	31 December 2019
?	?	?	?	?
VAT refunds and export tax rebate	?	41,149,236	?	10,648,330
Amount due from equity transfer	?	200,000,000	?	200,000,000
Surety and deposits	?	171,340,282	?	178,899,557
Others	?	250,789,738	?	109,281,505
?	?	?	?	?
Sub-total	?	663,279,256	?	498,829,392
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,044,012	?	8,636,111
?	?	?	?	?
Total	?	654,235,244	?	490,193,281

(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 RMB359,386,051, most of which are amount due from equity transfer and deposits. Noprovision is made for bad and doubtful debts after assessment.

Page 88

7 Inventories

(1) The Group’s inventories by category:

?	31 December 2020					?	1 January 2020/31 December 2019
?	Book value	?	Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer	?	Carrying amount	?	Book value	?	Provision for impairment of inventories	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
Raw materials	8,068,822,655	?	933,491,391	?	7,135,331,264	?	4,663,835,151	?	288,351,560	?	4,375,483,591
Work in progress	2,811,789,420	?	583,885,537	?	2,227,903,883	?	1,750,768,537	?	372,043,796	?	1,378,724,741
Finished goods	10,074,715,347	?	1,767,518,826	?	8,307,196,521	?	7,671,273,928	?	1,152,223,633	?	6,519,050,295
Consumables	162,817,575	?	-	?	162,817,575	?	122,936,135	?	-	?	122,936,135
Costs to fulfil a contract with a customer	42,205,247	?	-	?	42,205,247	?	-	?	-	?	-
?	?	?	?	?	?	?	?	?	?	?	?
Total	21,160,350,244	?	3,284,895,754	?	17,875,454,490	?	14,208,813,751	?	1,812,618,989	?	12,396,194,762

As at 31 December 2020, there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2019: Nil).

As at 31 December 2020, the Group had no inventory used as collateral (2019: Nil).

Page 89

(2) An analysis of provision for impairment of inventories of the Group is as follows:

?	Balance at the beginning of the year	?	Charge during the year	?	Decrease during the year			?	Balance at the end of the year
?	?	?	?	?	Reversals	?	Write-off	?	?
?	?	?	?	?	?	?	?	?	?
Raw materials	288,351,560	?	843,256,105	?	(143,418,140)	?	(54,698,134)	?	933,491,391
Work in progress	372,043,796	?	462,312,355	?	(204,781,587)	?	(45,689,027)	?	583,885,537
Finished goods	1,152,223,633	?	2,521,348,291	?	(969,342,859)	?	(936,710,239)	?	1,767,518,826
?	?	?	?	?	?	?	?	?	?
Total	1,812,618,989	?	3,826,916,751	?	(1,317,542,586)	?	(1,037,097,400)	?	3,284,895,754

Page 90

8 Contract assets

(1) The Group’s contract assets by customer type:

(2) Significant changes in the contract assets during the year:

Significant changes in the contract assets of the Group are as follows:

?	?	2020
?	?	RMB
Balance under previous revenue standard	?	-
Adjustment on initial application of the new revenue standard	?	27,710,945
?	?	?
Balance at the beginning of the year after adjustment	?	27,710,945
?	?	?
Transfers from contract assets recognised receivables	?	(24,932,485)
Increase in contract assets resulting from no unconditional right obtained	?	47,118,935
?	?	?
Balance at 31 December 2020	?	49,897,395

(3) Additions, recoveries or reversals of provision for contract asset during the year:

?	2020
?	?
Balance at the beginning of the year	-
Additions during the year	207,800
Recoveries during the year	-
Written-off during the year	-
?	?
Balance at the end of the year	207,800

9 Assets held for sale

2020

	Non-current assets held for sale
	Carrying amount	?	Fair value
?	?	?	?
Fixed assets	157,662,559	?	328,796,100
Intangible assets	29,230,086	?	55,251,000
?	?	?	?
Total of assets held for sale	186,892,645	?	384,047,100

Page 91

In March 2018, K-Tronics (Suzhou) Technology Co., Ltd., a subsidiary of the Company,entered into the Recovery Agreement of Land and Properties with Management Committeeof Wujiang Economic and Technological Development Zone to sell properties and otherattachments located in Wujiang Economic and Technological Development Zone. As at 31December 2020, the carrying amount of the assets held for sale above is RMB 186,892,645.K-Tronics (Suzhou) Technology Co., Ltd. and the Management Committee of WujiangEconomic and Technological Development Zone agreed that the recovery price of thesubject matter is RMB 384,047,100, which is determined according to the evaluation report.The disposal of relevant assets was completed in March 2021.

10 Other current assets

?	?	31 December 2020	?	1 January 2020	?	31 December 2019
?	?	?	?	?	?	?
VAT on tax credits	?	6,447,432,350	?	5,979,120,265	?	5,979,120,265
Input tax to be verified or deducted	?	1,068,285,033	?	1,984,055,118	?	1,984,055,118
Prepaid income taxes	?	23,710,045	?	45,154,225	?	45,154,225
Wealth management products	?	2,611,572	?	1,162,273,445	?	1,162,273,445
Costs receivables for recovering products from a customer	?	131,986,424	?	79,264,710	?	-
Others	?	174,843,828	?	126,034,014	?	126,034,014
?	?	?	?	?	?	?
Total	?	7,848,869,252	?	9,375,901,777	?	9,296,637,067

11 Long-term equity investments

(1) The Group’s long-term equity investments by category:

???

?	2020	?	2019
?	?	?	?
Investments in associates	4,722,215,043	?	3,495,896,246
?	?	?	?
Sub-total	4,722,215,043	?	3,495,896,246
?	?	?	?
Less: Provision for impairment	1,029,044,819	?	777,858,312
?	?	?	?
Total	3,693,170,224	?	2,718,037,934

Page 92

(2) Movements of long-term equity investments during the year are as follows:

Movements during the year

Investee

Balance at the beginning of the year

Increase in capital

Decrease in capital

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.

483,248

(219,390)

263,858

Beijing Nittan Electronic Co., Ltd.

64,808,755

8,588,066

(2,000,000)

71,396,821

Erdos BOE Energy Investment Co., Ltd.

907,348,226

(1,185,089)

906,163,137

Beijing Infi-Hailin Venture Investment Co., Ltd.

663,215

503,309

1,166,524

Beijing Infi-Hailin Venture Investment (Limited Partnership)

74,384,952

(79,000,000)

(210,320)

5,702,455

(877,087)

TPV Display Technology (China) Limited

24,545,664

282,600

24,828,264

Beijing Xindongneng Investment Fund (Limited Partnership)

1,944,514,849

(427,412,416)

410,089,641

130,950,251

2,058,142,325

Beijing Xindongneng Investment Management Co., Ltd.

7,410,061

2,511,565

(2,000,000)

7,921,626

Shenzhen Yunyinggu Technology Co., Ltd.

12,715,084

(5,368,560)

60,150

14,504,213

21,910,887

Beijing Xloong Technologies Co., Ltd.

22,237,044

(2,470,104)

19,766,940

Beijing Innovation Industry Investment Co., Ltd.

100,363,345

100,000,000

3,699,909

204,063,254

Beijing Electric Control Industry Investment Co., Ltd.

16,841,609

183,000,000

679,994

(319,767)

81,278

200,283,114

Hunan BOE Yiyun Science & Technology Co., Ltd.

253,630,000

New on Technology Co., Ltd.

2,727,606

(366,860)

39,292

2,400,038

Cnoga Medical Co., Ltd.

307,506,903

(15,779,857)

(6,697,004)

(18,509,718)

266,520,324

Beijing Zhonglianhe Ultra HD Collaborative Technology Centre Co., Ltd.

2,715,260

(288,351)

2,426,909

Shenzhen Jiangcheng Technology Co., Ltd.

6,630,425

(1,278,128)

(340,836)

5,011,461

BOE Houji Technology (Beijing) Co., Ltd.

1,200,000

(282,367)

917,633

Tianjin Xianzhilian Investment Centre (Limited Partnership)

429,000,000

45,207,278

474,207,278

BioChain (Beijing) Science & Technology, Inc.

200,000,000

203,487

200,203,487

Tianjin Xianzhilian Investment Management Centre (Limited Partnership)

900,000

91,163

991,163

Sub-total

3,495,896,246

1,167,730,000

(506,412,416)

444,407,986

136,393,089

7,011,400

(4,000,000)

(18,811,262)

4,722,215,043

Less: Provision for impairment

777,858,312

1,029,044,819

Total

2,718,037,934

3,693,170,224

Page 93

As at 31 December 2020, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. sufferedcontinuous loss and the Group does not have an obligation to assume additional losses.Therefore, the Company discontinues recognising its share of further losses after thecarrying amount of long-term equity investment is reduced to zero. As at 31 December 2020,the accumulated unrecognised investment losses were RMB 18,207,308 (2019: RMB17,817,673).

12 Investments in other equity instruments

Item	31 December 2020	?	31 December 2019
?	?	?	?
Listed equity instruments investment	?	?	?
- Beijing Electronic City High Tech Group Co., Ltd.	74,372,840	?	72,585,692
- Bank of Chongqing Co., Ltd.	102,845,668	?	105,407,103
- CSC Securities Co., Ltd.	-	?	68,545,920
- New Century Medical Holding Co., Ltd.	36,995,513	?	53,586,259
?	?	?	?
Unlisted equity instruments investment	?	?	?
- Teralane Semiconductor Inc.	-	?	-
- 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
- Danhua Capital, L. P.	32,624,500	?	26,160,750
- Danhua Capital II, L.P.	65,249,007	?	64,529,850
- Kateeva Inc.	77,939,931	?	83,330,709
- DEPICT INC.	-	?	-
- Meta Company	-	?	-
- MOOV INC.	26,207,585	?	28,020,288
- ZGLUE INC.	-	?	10,464,288
- Nanosys INC.	48,936,750	?	52,321,500
- Ceribell INC.	8,482,363	?	9,069,052
- Baebies INC.	28,668,368	?	30,651,239
- Illumina Fund I, L.P.	21,320,235	?	17,181,203
- ACQIS Technology, Inc.	1,304,980	?	1,395,242
- KA IMAGING INC.	1,877,651	?	2,007,520
- Beijing Dongfang Electronic Industry Co., Ltd.	-	?	-
?	?	?	?
Total	533,645,423	?	632,076,647

Note*: In 2020, the Company disposed of its shares in CSC Securities Co., Ltd. and

derecognised its investments in Teralane Semiconductor Inc., DEPICT INC. and MetaCompany, with gains and or losses accumulated in other comprehensive incomereclassified to retained earnings, totalling RMB 55,855,250. See Note V.41.

Page 94

(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	?	?						?	?
- Beijing Electronic City High Tech Group Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	1,842,137	?	(15,787,588)	?	-	?	Not applicable
- Bank of Chongqing Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	5,804,204	?	(17,238,707)	?	-	?	Not applicable
- CSC Securities Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	-	?	1,768,891	?	Disposals
- New Century Medical Holding Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(103,853,337)	?	-	?	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	?	Disposals
- 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	?	1,410,307	?	-	?	-	?	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
- Danhua Capital, L. P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	2,544,309	?	(1,901,875)	?	-	?	Not applicable
- Danhua Capital II, L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	13,800,800	?	(2,398,744)	?	-	?	Not applicable
- Kateeva Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(4,922,536)	?	-	?	Not applicable
- DEPICT INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	-	?	13,049,800	?	Disposals
- Meta Company	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	-	?	29,168,559	?	Disposals
- MOOV INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(1,655,254)	?	-	?	Not applicable
- ZGLUE INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(10,405,488)	?	-	?	Not applicable
- Nanosys INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(1,412,250)	?	-	?	Not applicable
- Ceribell INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(179,920)	?	-	?	Not applicable
- Baebies INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(455,186)	?	-	?	Not applicable
- Illumina Fund I, L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	974,930	?	(831,445)	?	-	?	Not applicable
- ACQIS Technology, Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(258,980)	?	-	?	Not applicable
- KA IMAGING INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(129,869)	?	-	?	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	?	?	26,376,687	?	(161,611,179)	?	55,855,250	?	?

Page 95

13 Investment properties

?	?	Land use rights	?	Buildings	?	Total
?	?	?	?	?	?	?
Cost	?	?	?	?	?	?
Balance at the beginning of the year	?	687,434,677	?	1,015,816,127	?	1,703,250,804
Additions during the year	?	-	?	362,715	?	362,715
?	?	?	?	?	?	?
Balance at the end of the year	?	687,434,677	?	1,016,178,842	?	1,703,613,519
?	?	?	?	?	?	?
Less: Accumulated depreciation or amortisation	?	?	?	?	?	?
Balance at the beginning of the year	?	140,772,403	?	321,235,551	?	462,007,954
Additions during the year	?	13,878,768	?	31,558,286	?	45,437,054
?	?	?	?	?	?	?
Balance at the end of the year	?	154,651,171	?	352,793,837	?	507,445,008
?	?	?	?	?	?	?
?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?
At the end of the year	?	532,783,506	?	663,385,005	?	1,196,168,511
?	?	?	?	?	?	?
At the beginning of the year	?	546,662,274	?	694,580,576	?	1,241,242,850

Page 96

14 Fixed assets

(1) Analysis of the Group’s fixed assets are as follows:

Item	Plant & buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at the beginning of the year	39,066,346,904	?	164,514,903,439	?	5,055,062,392	?	208,636,312,735
Additions during the year	?	?	?	?	?	?	?
- Purchases	106,424,539	?	251,499,388	?	1,147,743,024	?	1,505,666,951
- Transfers from construction in progress	11,166,278,131	?	70,039,183,590	?	714,148,657	?	81,919,610,378
- Additions due to business combinations involving entities not under common control	12,057,991,192	?	26,025,800,334	?	147,032,752	?	38,230,824,278
Disposals or written-offs during the year	(18,533,992)	?	(631,239,330)	?	(123,488,328)	?	(773,261,650)
Translation differences	(480,626)	?	(23,703,787)	?	(1,990,617)	?	(26,175,030)
?	?	?	?	?	?	?	?
Balance at the end of the year	62,378,026,148	?	260,176,443,634	?	6,938,507,880	?	329,492,977,662
?	?	?	?	?	?	?	?
Less: Accumulated depreciation	?	?	?	?	?	?	?
Balance at the beginning of the year	5,124,055,712	?	74,655,780,434	?	2,278,538,681	?	82,058,374,827
Charge during the year	1,189,328,945	?	19,439,177,557	?	1,249,871,496	?	21,878,377,998
Disposals or written-offs during the year	(9,053,218)	?	(468,884,836)	?	(87,743,009)	?	(565,681,063)
Translation differences	(468,222)	?	(2,345,666)	?	(3,312,810)	?	(6,126,698)
?	?	?	?	?	?	?	?
Balance at the end of the year	6,303,863,217	?	93,623,727,489	?	3,437,354,358	?	103,364,945,064
?	?	?	?	?	?	?	?
Less: Provision for impairment	?	?	?	?	?	?	?
Balance at the beginning of the year	1,073,381	?	784,836,694	?	5,785,895	?	791,695,970
Charge during the year	-	?	432,986,334	?	72,215,116	?	505,201,450
Disposals or written-offs during the year	-	?	(35,236,905)	?	(213,986)	?	(35,450,891)
?	?	?	?	?	?	?	?
Balance at the end of the year	1,073,381	?	1,182,586,123	?	77,787,025	?	1,261,446,529
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?	?
At the end of the year	56,073,089,550	?	165,370,130,022	?	3,423,366,497	?	224,866,586,069
?	?	?	?	?	?	?	?
At the beginning of the year	33,941,217,811	?	89,074,286,311	?	2,770,737,816	?	125,786,241,938

In 2020, some of the equipment of the Group is idle and there is no clear use plan. TheGroup evaluated the recoverable amount of these equipment and made a full provision forimpairment of RMB 505,201,450 based on the evaluation results.

Page 97

(2) Fixed assets acquired under finance leases

31 December 2020

31 December 2019

Item

Original book value

Accumulated depreciation

Provision for impairment

Carrying amount

Original book value

Accumulated depreciation

Provision for impairment

Carrying amount

Plant & buildings

11,291,665

4,864,383

6,427,282

11,291,665

4,610,694

6,680,971

Machinery & equipment

3,234,619,899

16,817,720

3,217,802,179

111,358,145

10,816,754

100,541,391

Total

3,245,911,564

21,682,103

3,224,229,461

122,649,810

15,427,448

107,222,362

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

As at 31 December 2020, fixed assets pending certificates of ownership totalled RMB20,426,632,149 (31 December 2019: RMB 8,208,580,798) and certificates of ownership isstill being processed.

15 Construction in progress

(1) Analysis of the Group’s construction in progress is as follows:

???

?	2020					?	2019
Item	Book value	?	Provision for impairment	?	Carrying amount	?	Book value	?	Provision for impairment	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
The 6th generation AMOLED project - Mianyang	10,195,964,634	?	-	?	10,195,964,634	?	34,753,609,842	?	-	?	34,753,609,842
The 6th generation LTPS/AMOLED project - Chengdu	1,609,674,328	?	-	?	1,609,674,328	?	19,490,899,526	?	-	?	19,490,899,526
The 6th generation AMOLED project - Chongqing	11,920,916,965	?	-	?	11,920,916,965	?	1,462,975,936	?	-	?	1,462,975,936
The 10.5th generation TFT-LCD project - Wuhan	10,551,056,190	?	-	?	10,551,056,190	?	24,749,508,699	?	-	?	24,749,508,699
Others	8,298,237,835	?	-	?	8,298,237,835	?	6,919,788,524	?	-	?	6,919,788,524
?	?	?	?	?	?	?	?	?	?	?	?
Total	42,575,849,952	?	-	?	42,575,849,952	?	87,376,782,527	?	-	?	87,376,782,527

Page 98

(2) Movements of major construction projects in progress during the year

Item

Budget

Balance at the beginning of the year

Additions 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 2020

Interest rate for capitalisation in 2020 (%)

Sources of funding

The 6th generation AMOLED project - Mianyang

46,500,000,000

34,753,609,842

5,358,315,087

(29,648,604,321)

(267,355,974)

10,195,964,634

89.04%

1,198,529,778

585,397,750

3.42%

Self-raised funds and borrowings

The 6th generation LTPS/AMOLED project - Chengdu

46,500,000,000

19,490,899,526

4,552,866,676

(22,409,432,296)

(24,659,578)

1,609,674,328

91.85%

367,526,893

1.77%

Self-raised funds and borrowings

The 6th generation AMOLED project - Chongqing

46,500,000,000

1,462,975,936

10,460,532,891

(2,591,862)

11,920,916,965

26.05%

1,242,708

2.04%

Self-raised funds and borrowings

The 10.5th generation TFT-LCD project - Wuhan

46,000,000,000

24,749,508,699

9,659,161,031

(23,848,967,181)

(8,646,359)

10,551,056,190

77.36%

115,596,222

317,760,483

3.81%

Self-raised funds and borrowings

Page 99

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	4,091,243,669	?	3,718,555,116	?	1,042,610,560	?	1,305,739,329	?	10,158,148,674
Additions during the year	?	?	?	?	?	?	?	?	?
- Purchases	299,431,151	?	248,991,522	?	27,684,102	?	2,383,123	?	578,489,898
- Transfers from construction in progress	62,430,272	?	-	?	413,899,417	?	-	?	476,329,689
- Non-controlling shareholders’ contribution of capital	-	?	-	?	-	?	285,773,298	?	285,773,298
- Additions due to business combinations involving entities not under common control	804,621,761	?	2,978,191,033	?	56,802,736	?	-	?	3,839,615,530
Disposals during the year	(5,002,886)	?	(2,768,601)	?	(2,000,735)	?	(42,887,739)	?	(52,659,961)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	5,252,723,967	?	6,942,969,070	?	1,538,996,080	?	1,551,008,011	?	15,285,697,128
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	303,706,213	?	1,601,698,094	?	652,198,832	?	184,128,706	?	2,741,731,845
Charge during the year	95,749,974	?	350,459,099	?	158,475,804	?	86,677,458	?	691,362,335
Disposals during the year	(1,400,083)	?	(1,387,324)	?	(2,000,735)	?	(18,535,358)	?	(23,323,500)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	398,056,104	?	1,950,769,869	?	808,673,901	?	252,270,806	?	3,409,770,680
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Carrying amounts
At the end of the year	4,854,667,863	?	4,992,199,201	?	730,322,179	?	1,298,737,205	?	11,875,926,448
?	?	?	?	?	?	?	?	?	?
At the beginning of the year	3,787,537,456	?	2,116,857,022	?	390,411,728	?	1,121,610,623	?	7,416,416,829

(2) Land use rights pending certificates of ownership

As at 31 December 2020, intangible assets pending certificates of ownership totalled RMB4,694,121 (31 December 2019: RMB 614,842,056).

Page 100

17 Goodwill

(1) Changes in goodwill

Name of investee	Note	Balance at the beginning of the year	?	Additions 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
Chengdu CEC Panda Display Technology Co., Ltd.	(a)	-	?	537,038,971	?	537,038,971
Nanjing CEC Panda FPD Technology Co., Ltd.	(b)	-	?	155,714,415	?	155,714,415
?	?	?	?	?	?	?
Sub-total	?	908,794,385	?	692,753,386	?	1,601,547,771
?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	?	(4,423,876)	?	-	?	(4,423,876)
SES Imagotag SA Co., Ltd.	?	(196,766,653)	?	-	?	(196,766,653)
?	?	?	?	?	?	?
Sub-total	?	(201,190,529)	?	-	?	(201,190,529)
?	?	?	?	?	?	?
Carrying amount	?	707,603,856	?	692,753,386	?	1,400,357,242

(a) As disclosed in Note VI.1, the Group obtained the control of Chengdu CEC Panda on

17 December 2020. The excess of the combination cost over the Group’s interest inthe fair value of Chengdu CEC Panda’s identifiable assets and liabilities, amounting toRMB 537,038,971, was recognised as goodwill attributable to Chengdu CEC Panda.

(b) As disclosed in Note VI.1, the Group obtained the control of Nanjing CEC Panda on 24

December 2020. The excess of the combination cost over the Group’s interest in thefair value of Nanjing CEC Panda’s identifiable assets and liabilities, amounting to RMB155,714,415, was recognised as goodwill attributable to Nanjing CEC Panda.

(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”) andSES Imagotag SA Co., Ltd., Nanjing CEC Panda and Chengdu CEC Panda is determinedbased on the present value of expected future cash flows. When predicting the present valueof cash flow, the cash flow in the next 5 years is determined based on the financial budgetapproved by the management. The cash flow in the years after the 5-year financial budgetwill remain stable. The pre-tax discount rate is determined with reference to comparablecompanies and related capital structures.

Page 101

18 Long-term deferred expenses

?	Balance at the beginning of the year	?	Additions during the year	?	Decrease during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?
Payment for public facilities construction and use	82,702,566	?	-	?	(15,370,224)	?	67,332,342
Cost of operating lease assets improvement	28,066,255	?	5,227,728	?	(19,121,157)	?	14,172,826
Others	234,655,588	?	84,706,547	?	(101,233,203)	?	218,128,932
?	?	?	?	?	?	?	?
Total	345,424,409	?	89,934,275	?	(135,724,584)	?	299,634,100

19 Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets and liabilities

???

?	2020			?	2019
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	122,139,756	?	27,180,254	?	131,848,265	?	29,587,380
Changes in fair value of investments in other equity instruments	121,789,193	?	18,268,379	?	135,444,338	?	20,316,651
Depreciation of fixed assets	179,801,722	?	30,341,276	?	147,798,525	?	25,764,520
Assessed value added by investing real estate in subsidiaries	131,003,100	?	32,750,775	?	136,556,956	?	34,139,239
Accumulated losses	424,212,759	?	132,565,377	?	361,764,556	?	111,182,956
Others	64,633,800	?	14,628,946	?	214,882,405	?	40,237,079
?	?	?	?	?	?	?	?
Sub-total	1,043,580,330	?	255,735,007	?	1,128,295,045	?	261,227,825
?	?	?	?	?	?	?	?
Amount offset	?	?	(50,693,919)	?	?	?	(13,074,064)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	205,041,088	?	?	?	248,153,761
?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Revaluation due to business combinations involving entities not under common control	(2,395,173,489)	?	(713,559,149)	?	(2,594,143,798)	?	(772,597,483)
Depreciation of fixed assets	(4,622,699,062)	?	(721,371,438)	?	(4,178,779,443)	?	(643,417,497)
Long-term equity investments	(120,141,687)	?	(18,021,253)	?	(120,141,687)	?	(18,021,253)
Others	(142,029,410)	?	(25,343,233)	?	(161,910,113)	?	(30,863,188)
?	?	?	?	?	?	?	?
Sub-total	(7,280,043,648)	?	(1,478,295,073)	?	(7,054,975,041)	?	(1,464,899,421)
?	?	?	?	?	?	?	?
Amount offset	?	?	50,693,919	?	?	?	13,074,064
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(1,427,601,154)	?	?	?	(1,451,825,357)

Page 102

(2) Details of unrecognised deferred tax assets

?	2020	?	2019
?	?	?	?
Deductible temporary differences	16,442,282,572	?	9,708,406,691
Deductible tax losses	25,680,094,343	?	15,354,248,296
?	?	?	?
Total	42,122,376,915	?	25,062,654,987

As at 31 December 2020, 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 recognised in consideration of prudence. The change of unrecogniseddeferred tax assets for the year was mainly due to consideration of RMB 8,253,348,675generated by the acquisition of Nanjing CEC Panda and Chengdu CEC Panda.

(3) Expiration of deductible tax losses for unrecognised deferred tax assets

Year

Year	Note	2020	?	2019
?	?	?	?	?
2020	?	-	?	58,901,625
2021	?	78,927,101	?	80,449,618
2022	?	416,996,721	?	435,146,446
2023	?	518,668,889	?	605,118,016
2024	?	1,129,623,213	?	1,028,882,595
2025	?	2,987,078,958	?	494,894,618
2026	?	848,779,232	?	227,711,720
2027	?	128,972,134	?	133,673,301
2028	?	5,149,658,963	?	4,215,818,107
2029	?	10,575,127,795	?	7,359,029,807
2030	?	2,846,283,820	?	-
Others	(a)	999,977,517	?	714,622,443
?	?	?	?	?
Total	?	25,680,094,343	?	15,354,248,296

(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.

Page 103

20 Other non-current assets

?	Note	31 December 2020	?	1 January 2020/ 31 December 2019
?	?	?	?	?
VAT on tax credits	?	3,720,414,204	?	2,482,410,097
Deferred VAT for imported equipment	?	2,444,720,228	?	5,027,130,119
Prepayment for fixed assets	?	1,476,495,591	?	1,159,943,991
Gains from transfer of exploration right	(a)	512,802,600	?	512,802,600
Prepayments for construction	?	130,568,100	?	43,162,425
Others	?	339,969,296	?	266,132,327
?	?	?	?	?
Total	?	8,624,970,019	?	9,491,581,559

(a) On 31 December 2020, gains from transfer of exploration right are amount for the

transfer 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

	31 December 2020
	?	?	?	?		?	Credited/ collateralised
	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	600,623,333	?	Collateralised
- RMB	?	?	?	?	1,853,305,416	?	Guaranteed
- RMB	?	?	?	?	2,872,713,095	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	5,326,641,844	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- USD	346,986,252	?	6.5249	?	2,264,050,596	?	Guaranteed
- USD	132,229,237	?	6.5249	?	862,782,549	?	Credited
- JPY	2,310,305,559	?	0.0632	?	146,094,482	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	3,272,927,627	?	?
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Total	?	?	?	?	8,599,569,471	?	?

Page 104

?	2019
?	?	?	?	?		?	Credited/ collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	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	?	?

The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2020(2019: 0.40% to 4.35%).

As at 31 December 2020, no short-term loan was past due (2019: Nil).

22 Bills payable

?	31 December 2020	?	31 December 2019
?	?	?	?
Bank acceptance bills	1,130,824,139	?	1,812,309,507
Commercial acceptance bills	100,709,756	?	216,608,473
?	?	?	?
Total	1,231,533,895	?	2,028,917,980

There is no due but unpaid bill payable at the end of the year. The bills above are all duewithin one year.

Page 105

23 Accounts payable

(1) The Group’s accounts payable by category are as follows:

?	31 December 2020	?	31 December 2019
?	?	?	?
Payables to related parties	108,759,439	?	77,847,042
Payables to third parties	27,055,412,243	?	21,105,720,511
?	?	?	?
Total	27,164,171,682	?	21,183,567,553

(2) The Group’s accounts payable by currency are as follows:

???

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	18,877,719,728	?	-?	?	?	?	14,353,247,507
- USD	1,065,301,852	?	6.5249	?	6,950,988,054	?	869,901,566	?	6.9762	?	6,068,607,305
- JPY	7,851,845,994	?	0.0632	?	496,236,667	?	10,667,212,793	?	0.0641	?	683,768,340
- Other foreign currencies	?	?	?	?	839,227,233	?	-?	?	?	?	77,944,401
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	27,164,171,682	?	?	?	?	?	21,183,567,553

As at 31 December 2020, the Group had no individually significant accounts payable ageingmore than one year.

24 Advance payments received

Item

Item	31 December 2020	?	1 January 2020	?	31 December 2019
?	?	?	?	?	?
Advances from related parties	6,018,519	?	60,990	?	60,990
Advances from third parties	1180,022,230	?	123,091,845	?	1,260,671,795
?	?	?	?	?	?
Total	124,040,749	?	123,152,835	?	1,260,732,785

Page 106

25 Contract liabilities

Item	31 December 2020	?	1 January 2020	?	31 December 2019
?	?	?	?	?	?
Sale of goods	3,440,720,535	?	1,083,074,827	?	-

Contract liabilities primarily relate to the Group’s advances from goods purchase and salecontracts. The Group receives a certain proportion of advances as agreed in contract whenentering into the contract with customers. The revenue related to the contracts will berecognised until the Group satisfies its performance obligation.

Significant changes in the contract liabilities of the Group are as follows:

?	2020
?	RMB
?	?
Balance under previous revenue standard	-
Adjustment on initial application of the new revenue standard	1,083,074,827
?	?
Balance at the beginning of the year after adjustment	1,083,074,827
?	?
Revenue recognised that was included in the contract liability balance at the beginning of year	(985,358,861)
Increase of contract liabilities due to cash received at the end of the year	3,343,004,569
?	?
Balance at 31 December 2020	3,440,720,535

26 Employee benefits payable

(1) Employee benefits payable:

?	Note	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	2,317,952,892	?	14,505,206,045	?	(13,089,586,475)	?	3,733,572,462
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	30,809,715	?	603,373,645	?	(612,555,327)	?	21,628,033
Termination benefits	?	24,982,847	?	6,049,760	?	(27,609,305)	?	3,423,302
?	?	?	?	?	?	?	?	?
Total	?	2,373,745,454	?	15,114,629,450	?	(13,729,751,107)	?	3,758,623,797

Page 107

?	Note	Balance at 1 January 2019	?	Accrued during the year	?	Decreased 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

(2) Short-term employee benefits

???

?	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	1,884,102,804	?	12,377,361,943	?	(11,076,670,492)	?	3,184,794,255
Staff welfare	-	?	813,811,158	?	(813,811,158)	?	-
Social insurance	32,323,849	?	428,892,729	?	(428,549,166)	?	32,667,412
Medical insurance	28,537,074	?	397,973,661	?	(396,959,327)	?	29,551,408
Work-related injury insurance	1,592,189	?	17,318,426	?	(17,296,483)	?	1,614,132
Maternity insurance	2,194,586	?	13,600,642	?	(14,293,356)	?	1,501,872
Housing fund	27,503,744	?	572,216,189	?	(572,578,874)	?	27,141,059
Labour union fee, staff and workers’ education fee	345,146,487	?	294,743,728	?	(172,165,296)	?	467,724,919
Staff bonus and welfare fund	7,282,591	?	13,270,618	?	-	?	20,553,209
Other short-term employee benefits	21,593,417	?	4,909,680	?	(25,811,489)	?	691,608
?	?	?	?	?	?	?	?
Total	2,317,952,892	?	14,505,206,045	?	(13,089,586,475)	?	3,733,572,462

???

?	Balance at 1 January 2019	?	Accrued during the year	?	Decreased 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

Page 108

(3) Post-employment benefits - defined contribution plans

?	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?
Basic pension insurance	26,271,958	?	547,052,137	?	(554,271,266)	?	19,052,829
Unemployment insurance	1,072,077	?	23,115,986	?	(23,077,129)	?	1,110,934
Annuity	3,465,680	?	33,205,522	?	(35,206,932)	?	1,464,270
?	?	?	?	?	?	?	?
Total	30,809,715	?	603,373,645	?	(612,555,327)	?	21,628,033

???

?	Balance at 1 January 2019	?	Accrued during the year	?	Decreased 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

27 Taxes payable

?	2020	?	2019
?	?	?	?
Value-added tax	40,678,414	?	104,968,721
Corporate income tax	442,103,385	?	225,781,442
Individual income tax	60,823,097	?	46,299,098
City construction tax	239,633,339	?	159,162,466
Education surcharges and local education surcharges	171,225,887	?	114,515,524
Others	123,222,747	?	80,268,878
?	?	?	?
Total	1,077,686,869	?	730,996,129

Page 109

28 Other payables

?	Note	31 December 2020	?	31 December 2019
?	?	?	?	?
Interest payable	?	1,946,267	?	721,325,540
Dividends payable	?	6,451,171	?	14,568,242
Others	(1)	32,859,311,586	?	23,834,695,828
?	?	?	?	?
Total	?	32,867,709,024	?	24,570,589,610

(1) Others

(a) The Group’s other payables by category are as follows:

?	Note	31 December 2020	?	31 December 2019
?	?	?	?	?
Projects and equipment	?	22,081,009,426	?	19,265,984,958
Fund transaction (Note)	?	3,044,729,475	?	25,236,605
Equity acquisition	VI. 1	2,236,488,561	?	338,596
Deferred VAT for imported equipment	?	1,920,558,529	?	2,277,269,457
Repurchase obligation of restricted shares	V. 40	875,333,536	?	-
Accrued water and electricity charges and freight	?	711,995,694	?	475,398,269
Security deposits	?	576,740,323	?	565,971,653
External agency fee	?	95,378,987	?	95,525,591
Others	?	1,317,077,055	?	1,128,970,699
?	?	?	?	?
Total	?	32,859,311,586	?	23,834,695,828

The Group’s significant other payables aged over one year are payables of projectsand equipment.

Note: The other payables by the Group to CEC Panda as at 31 December 2020 areamounts and interests due to original controlling shareholders of Nanjing CEC Pandaand Chengdu CEC Panda acquired this year, with interest rates of 2.175% and 0%.

Page 110

(b) The Group’s other payables by currency are as follows:

?	31 December 2020					?	31 December 2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	25,021,226,671	?	?	?	?	?	14,900,017,469
USD	834,593,184	?	6.5249	?	5,445,637,067	?	939,445,424	?	6.9762	?	6,553,759,167
JPY	36,887,427,437	?	0.0632	?	2,331,285,414	?	36,516,333,058	?	0.0641	?	2,340,696,949
Other foreign currencies	?	?	?	?	61,162,434	?	?	?	?	?	40,222,243
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	32,859,311,586	?	?	?	?	?	23,834,695,828

29 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.

???

?	?	31 December 2020
?	?	?	?	?	?	RMB/	?	Credited /collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB equivalents	?	Guaranteed /pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	28,108,784	?	Pledged
- RMB	?	?	?	?	?	5,654,665,718	?	Collateralised
- RMB	?	?	?	?	?	1,562,733	?	Guaranteed
- RMB	?	?	?	?	?	8,650,207,807	?	Credited
- USD	?	1,397,735,847	?	6.5249	?	9,120,086,628	?	Collateralised
- EUR	?	415,746	?	8.0250	?	3,336,362	?	Credited
- EUR	?	7,920,370	?	8.0250	?	63,560,969	?	Pledged
?	?	?	?	?	?	?	?	?
Sub-total	V. 31	?	?	?	?	23,521,529,001	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V. 33	?	?	?	?	979,021,120	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	24,500,550,121	?	?

Page 111

?	?	31 December 2019
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	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	V. 31	?	?	?	?	18,690,906,252	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V. 33	?	?	?	?	158,374,767	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	18,849,281,019	?	?

The interest rate of RMB long-term loans due within one year for the Group ranged from 0%to 5.88% in 2020 (2019: from 0% to 5.64%).

30 Other current liabilities

Item

Item	?	31 December 2020	?	1 January 2020	?	31 December 2019
?	?	?	?	?	?	?
Warranty provisions	?	1,615,534,790	?	940,668,393	?	940,668,393
Refund liability	?	144,834,876	?	79,264,710	?	-
Pending output VAT	?	278,791,002	?	64,391,101	?	9,885,978
Others	?	155,556,184	?	63,184,144	?	63,184,144
?	?	?	?	?	?	?
Total	?	2,194,716,852	?	1,147,508,348	?	1,013,738,515

The other current liabilities of the Group were warranty provision accrued. The warrantyprovision mainly relates to the expected after-sales repair warranty to the customers. Theprovision is estimated by the management, based on historical claim experience and currentactual sales outcomes.

Page 112

31 Long-term loans

?	?	31 December 2020
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	564,470,036	?	Pledged
- RMB	?	?	?	?	?	58,205,922,053	?	Collateralised
- RMB	?	?	?	?	?	3,245,238,880	?	Guaranteed
- RMB	?	?	?	?	?	48,593,938,457	?	Credited
- USD	?	6,647,918,240	?	6.5249	?	43,377,001,724	?	Collateralised
- EUR	?	67,323,142	?	8.0250	?	540,268,215	?	Pledged
- EUR	?	180,368,445	?	8.0250	?	1,447,456,771	?	Credited
Less: Long-term loans due within one year	V. 29	?	?	?	?	23,521,529,001	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	132,452,767,135	?	?

???

?	?	31 December 2019
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	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	V. 29	?	?	?	?	18,690,906,252	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	107,730,595,615	?	?

The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2020(2019: from 0% to 5.64%). The increase in the upper limit of the interest rate of RMB long-term loans in 2020 is mainly due to the higher interest rate of Nanjing CEC Panda, which isnewly included in the scope of consolidated financial statements.

32 Debentures payable

(1) Debentures payable

??Item

Item	31 December 2020	?	31 December 2019
?	?	?	?
Debentures payable	398,971,739	?	387,878,384
Less: Debentures payable due within one year	-	?	-
?	?	?	?
Total	398,971,739	?	387,878,384

Page 113

(2) The movements of debentures payable:

Debenture

Face value

Issuance date

Maturity period

Issuance amount

Balance at the beginning of the year

Increase during the year

Interest at face value

Amortisation of discounts or premium

Repayment during the period

Translation differences

Balance at the end of the year

Euro PP

EUR 10,000,000

2016.12.29

7 years

EUR 10,000,000

77,674,350

2,764,825

108,611

(2,764,825)

2,083,842

79,866,803

Euro PP

EUR 30,000,000

2017.03.29

6 years

EUR 30,000,000

233,145,481

8,294,475

401,058

(8,294,475)

6,256,001

239,802,540

Euro PP

EUR 10,000,000

2019.07.22

6 years

EUR 10,000,000

77,058,553

3,594,273

175,447

(3,594,273)

2,068,396

79,302,396

Total

387,878,384

14,653,573

685,116

(14,653,573)

10,408,239

398,971,739

SES Imagotag SA Co., Ltd. issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29December 2016 and 29 March 2017. The coupon rate of the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments aremade annually and the principle amount will be paid when the bonds become due.

SES Imagotag SA Co., Ltd. issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019.The coupon rate of the bond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually, and the principle amount willbe paid when the bond becomes due.

Page 114

33 Long-term payables

Item	Note	31 December 2020	?	31 December 2019
?	?	?	?	?
Obligations under finance leases	(1)	3,093,196,803	?	1,142,895,591
Less: Obligations under finance leases due within one year	?	979,021,120	?	158,374,767
?	?	?	?	?
Total	?	2,114,175,683	?	984,520,824

(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	31 December 2020	?	31 December 2019
?	?	?	?
Within 1 year (inclusive)	1,175,045,108	?	240,790,871
After 1 year but within 2 years (inclusive)	1,061,063,290	?	211,473,668
After 2 years but within 3 years (inclusive)	559,312,651	?	198,335,280
After 3 years	840,557,857	?	866,709,073
?	?	?	?
Sub-total	3,635,978,906	?	1,517,308,892
?	?	?	?
Less: Unrecognised finance charges	542,782,103	?	374,413,301
?	?	?	?
Total	3,093,196,803	?	1,142,895,591

The Group leased back some of its sold machinery, equipment and constructions inprogress. The sales of the assets are related to the leases, and the Group basically canensure to buy back the asset after lease term. Therefore, the Group adopts the accountingtreatment of collateral loans.

Page 115

34 Provisions

Name of investee	31 December 2020	?	31 December 2019
?	?	?	?
Pending implementation of the agreement	-	?	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.

35 Deferred income

??Item

Item	Balance at the beginning of the year	?	Additions during the year	?	Amounts recognised in other income	?	Other changes	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
Related to assets	1,959,522,274	?	1,420,632,945	?	(310,532,631)	?	(222,882,969)	?	2,846,739,619
Related to income	244,878,292	?	1,628,055,408	?	(471,110,335)	?	(2,331,516)	?	1,399,491,849
?	?	?	?	?	?	?	?	?	?
Total	2,204,400,566	?	3,048,688,353	?	(781,642,966)	?	(225,214,485)	?	4,246,231,468

36 Other non-current liabilities

??Item

Item	Note	31 December 2020	?	31 December 2019
?	?	?	?	?
Contribution of non-controlling interests with redemption provisions	(1)	3,710,474,960	?	3,699,127,228
Deferred VAT for imported equipment	?	1,472,958,998	?	4,409,269,015
Others	?	76,567,485	?	92,146,169
?	?	?	?	?
Total	?	5,260,001,443	?	8,200,542,412

(1) Contribution of non-controlling interests with redemption provisions

The contribution of non-controlling interests with redemption provisions is mainly due to theredemption obligation of the Company to the non-controlling interests of Fuzhou BOE andBOE Smart Retail (Hong Kong) Co., Ltd. The Company recognises the above non-controllinginterests contribution as a financial liability which is subsequently measured at the cost ofamortisation. The carrying amount as at 31 December 2020 is RMB 3,710,474,960.

Page 116

37 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

38 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

Outstanding financial instruments

Issuance date

Accounting classification

Interest 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

Not Applicable

20BOEY1

28 February 2020

Equity instrument

3.6%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not Applicable

20BOEY2

19 March 2020

Equity instrument

3.5%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not Applicable

20BOEY3

27 April 2020

Equity instrument

3.5%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not Applicable

Total

140 million

RMB 14 billion

(2) Major terms

On 29 October 2019, with the approval document No. 1801 [2019] of the China SecuritiesRegulatory Commission (“CSRC”), the Company successfully issued a renewable corporatebond to qualified investors. The full name of the bond was Renewable Corporate BondPublicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (the FirstPhase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020and 27 April 2020, the Company issued renewable corporate bonds to qualified investors.The full name of these bonds was Renewable Corporate Bond Publicly Issued by BOETechnology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1、20BOEY2、20BOEY3 respectively (“2020 bond”).

Both 2019 bond and 2020 bond have a base term of 3 years and take every three interest-bearing years as a period. The Company is entitled to choose to extend the maturity by 1period at the end of the agreed base term or at the end of each extended period, or chooseto fully redeem the 2019 bond and 2020 bond at the end of the period. The nominal interestrate of the 2019 bond and 2020 bond is fixed during the first period, and then is reset onceevery period. The nominal interest rate in the first period is the initial benchmark interest rateplus the initial spread, and the nominal interest rate in the subsequent period is adjusted tothe current benchmark interest rate plus the initial spread and 300 basis points. Therefore,when the Company exercises the renewal option, the nominal interest rate will significantlyincrease, and the corresponding nominal interest will also increase sharply. The 2019 bondand 2020 bond have an issuer’s right to defer the payment of interest. Unless a mandatoryinterest payment event occurs (including distributions to ordinary shareholders and decreaseof registered capital). At each interest payment date of the bonds, the Company may chooseat its discretion whether to defer the payment of the current interest as well as all thedeferred interests and the yields under this term until the next interest payment date withoutbeing subjected to any limit on the number of interest deferring attempts.

Page 117

The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14,000,000,000 intotal, and the Company considers that the renewable corporate bonds do not meet thedefinition of financial liabilities, and therefore will charge the total amount of the issue to otherequity instruments after deducting underwriting fees and other transaction costs.

(3) Movement of the financial instruments (including and perpetual bonds) that remain

outstanding at the end of the year:

Outstanding financial instruments	At the beginning of the year			Additions during the year			Accumulated interest		At the end of the year
Outstanding financial instruments	Quantity	?	Carrying amount	Quantity	?	Carrying amount	Charge for the year	Paid during the year	Quantity	?	Carrying amount
?	?		?	?		?	?	?	?		?
19BOEY1	80,000,000		8,013,156,853	-		-	320,876,712	(320,000,000)	80,000,000		8,014,033,565
20BOEY1	-		-	20,000,000		1,989,179,245	61,431,233	-	20,000,000		2,050,610,478
20BOEY2	-		-	20,000,000		1,989,320,755	55,864,110	-	20,000,000		2,045,184,865
20BOEY3	-		-	20,000,000		1,989,415,094	47,753,425	-	20,000,000		2,037,168,519

Total	80,000,000		8,013,156,853	60,000,000		5,967,915,094	485,925,480	(320,000,000)	140,000,000		14,146,997,427

(4) Relevant information of amounts attributable to holders of equity instruments

???

?	31 December 2020	?	31 December 2019
?	?	?	?
Attributable to shareholders of the Company	103,276,766,835	?	95,058,129,055
- Equity attributable to ordinary shareholders of the Company	89,129,769,408	?	87,044,972,202
- Equity attributable to holders of the Company’s other equity instruments	14,146,997,427	?	8,013,156,853
Equity attributable to non-controlling shareholders	70,120,967,879	?	45,999,567,919
- Equity attributable to non-controlling ordinary shareholders	70,120,967,879	?	45,999,567,919
- Equity attributable to non-controlling shareholders of other equity instruments	-	?	-

(5) Accrued interest on holders of other equity instruments

In 2020, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB 485,925,480 on renewablecorporate bonds from undistributed profits and paid interest of RMB 320,000,000 onrenewable corporate bonds.

Page 118

39 Capital reserve

Item	Note	Share premiums	?	Other capital reserves	?	Total
?	?	?	?	?	?	?
Balance at the beginning of the year	?	37,546,517,053	?	806,725,311	?	38,353,242,364
Add: Change in shareholding ratio of subsidiaries	?	-	?	76,020,559	?	76,020,559
Equity-settled share-based payments	XI	-	?	(946,466,251)	?	(946,466,251)
Other movements in equity of associates	V. 11	-	?	7,011,400	?	7,011,400
Less: Disposal of subsidiaries to equity method accounting	?	-	?	46,470,087	?	46,470,087
Others	?	-	?	7,682,051	?	7,682,051
?	?	?	?	?	?	?
Balance at the end of the year	?	37,546,517,053	?	(110,861,119)	?	37,435,655,934

40 Treasury shares

??Item

Item	At the beginning of the year	?	Additions during the year	?	Reductions during the year	?	At the end of the year
?	?	?	?	?	?	?	?
Treasury shares	-	?	1,998,774,694	?	(962,476,186)	?	1,036,298,508
?	?	?	?	?	?	?	?
Total	-	?	1,998,774,694	?	(962,476,186)	?	1,036,298,508

According to the Proposal of Repurchase of Certain Public Shares by the Companydeliberated and adopted in the fifteenth meeting of the ninth session of the Board of Directorsmeeting held on 27 August 2020, the Company completed repurchase of shares throughcentralised price bidding before 3 September 2020. The Company repurchased 349,999,933A shares in total by paying total consideration of RMB 1,998,774,694.

The repurchased shares are placed with the designated securities account for the use ofCompany’s repurchase, during which the Company is not entitled to have voting rights at theshareholders’ general meeting, or rights of profit appropriations, increasing share capital bytransfer of reserves, allotment of share and pledge etc. The repurchased shares will be usedfor implementing incentive plan. For shares failed to be used in this way within 36 monthsafter being repurchased, the shares will be cancelled by performing related procedures.

As disclosed in Note XI, there is a vesting period for the restricted share incentive plansgranted by the Group in 2020. If the incentive object resigns during the vesting period, theCompany will repurchase the unlocked restricted shares at the exercise price. Therefore, theCompany recognized a total of RMB 875,333,536 in restricted share subscription funds fromrestricted share incentive objects as other payables—the Repurchased obligation ofrestricted shares (Note V. 28 (1)) and Treasury Shares. The difference of RMB 962,476,186between the amount paid by the Company to repurchase the above-mentioned TreasuryShares from the public market and the repurchase obligation is transferred to the Capitalreserve-Other capital reserve.

Page 119

41 Other comprehensive income

Movements during the year

Item

Balance at the end of previous year attributable to shareholders of the Company

Before-tax amount

Less: Income tax expenses

Net-of-tax amount attributable to shareholders of the Company

Net-of-tax amount attributable to non-controlling interests

Less: Transfer of other comprehensive income to retained earnings

Balance at the end of the year attributable to shareholders of the Company

Items that will not be reclassified to profit or loss

140,076,335

118,453,992

2,048,272

116,405,720

(195,070,158)

61,411,897

Including: Other comprehensive income recognised under equity method

308,546,648

136,381,254

(250,925,408)

194,002,494

Changes in fair value of investments in other equity instruments

(168,470,313)

(17,927,262)

2,048,272

(19,975,534)

55,855,250

(132,590,597)

Items that may be reclassified to profit or loss

(144,642,974)

49,539,936

61,033,005

(11,493,069)

(83,609,969)

Including: Other comprehensive income recognised under equity method

11,835

Translation differences arising from translation of foreign currency financial statements

(144,642,974)

49,528,101

61,021,170

(11,493,069)

(83,621,804)

Total

(4,566,639)

167,993,928

2,048,272

177,438,725

(11,493,069)

(195,070,158)

(22,198,072)

Page 120

42 Surplus reserve

Item	Balance at the beginning of the year	?	Add: Changes in accounting policies	?	Balance at the beginning of the year after adjustment	?	Additions during the year	?	Other changes during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?	?	?
Statutory surplus reserve	1,226,468,400	?	533,906,114	?	1,760,374,514	?	373,919,158	?	20,451,688	?	2,154,745,360
Discretionary surplus reserve	289,671,309	?	?	?	289,671,309	?	-	?	-	?	289,671,309
?	?	?	?	?	?	?	?	?	?	?	?
Total	1,516,139,709	?	533,906,114	?	2,050,045,823	?	373,919,158	?	20,451,688	?	2,444,416,669

43 Retained earnings

Item

Item	Note	2020	?	2019
?	?	?	?	?
Retained earnings at the beginning of the year (before adjustment)	?	12,381,758,005	?	N/A
Add: Changes in accounting policies	?	(533,906,114)	?	N/A
Retained earnings at the beginning of the year (after adjustment)	?	11,847,851,891	?	11,977,119,533
Add: Net profits for the year attributable to shareholders of the Company	?	5,035,627,952	?	1,918,643,871
Less: Appropriation for statutory surplus reserve	?	373,919,158	?	368,556,446
Interest on holders of other equity instruments	V. 38	485,925,480	?	56,109,589
Dividends to ordinary shares	?	695,967,975	?	1,043,951,963
Transfer of other comprehensive income to retained earnings	(a)	(171,164,417)	?	45,387,401
Effect of accounting for disposal of subsidiaries to equity method	?	(3,454,053)	?	-
Others		(7,508,922)		-
?	?	?	?	?
Retained earnings at the end of the year	?	15,509,794,622	?	12,381,758,005

According to the Annual Shareholders’ Meeting for 2019 held on 29 May 2020, the Companydistributed cash dividends to all shareholders on 3 July 2020, with RMB 0.2 every 10 shares(2019: RMB 0.3) and a total dividend of RMB 695,967,975 (2019: RMB 1,043,951,963)distributed.

As at 31 December 2020, the consolidated retained earnings attributable to the Companyincluded appropriation to surplus reserves made by the Company’s subsidiaries amountingto RMB 2,958,648,210 (2019: RMB 2,197,635,471).

(a) The amounts transferred from other comprehensive income to retained earnings in

2020 includes RMB 225,832,867 of associates’ gains from disposal of other equityinstrument investments included in retained earnings and RMB 54,668,450 of theGroup losses from disposals of other equity instrument investments included inretained earnings.

Page 121

44 Operating income and operating costs

?	2020			?	2019
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	131,839,051,171	?	107,017,283,266	?	112,869,129,027	?	96,547,463,221
Other operating activities	3,713,518,558	?	1,805,839,490	?	3,190,461,137	?	1,898,806,075
?	?	?	?	?	?	?	?
Total	135,552,569,729	?	108,823,122,756	?	116,059,590,164	?	98,446,269,296

Including: Income related to the new revenue standard	134,406,942,755	?	108,402,500,151	?	Not applicable	?	Not applicable
Revenue related to the lease standard	1,145,626,974	?	420,622,605	?	Not applicable	?	Not applicable

Details of operating income:

???

?	2019
?	?
Operating income from principal activities	?
- Sale of goods	112,869,129,027
Other operating income	?
- Sales of raw materials	1,049,219,352
- Rental income of investment properties	1,164,355,875
- Others	976,885,910
?	?
Total	116,059,590,164

Information on income of principal activities has been included in Note XIV.

45 Taxes and surcharges

?	2020	?	2019
?	?	?	?
Property tax	401,351,553	?	352,251,436
City maintenance and construction tax	266,845,054	?	190,993,833
Education surcharges and local education surcharges	192,450,398	?	136,854,543
Stamp duty	136,589,158	?	108,178,185
Land use tax	45,748,963	?	43,676,217
Others	35,914,959	?	29,146,391
?	?	?	?
Total	1,078,900,085	?	861,100,605

Page 122

46 Selling and distribution expenses

?	2020	?	2019
?	?	?	?
Warranty provisions	1,616,634,833	?	927,748,774
Staff costs	965,992,069	?	698,586,373
Logistics	73,934,798	?	589,504,713
Others	481,157,301	?	702,025,520
?	?	?	?
Total	3,137,719,001	?	2,917,865,380

47 General and administrative expenses

???

?	2020	?	2019
?	?	?	?
Staff cost	2,869,736,815	?	2,456,007,113
Repair expense	1,658,988,344	?	1,221,489,432
Depreciation and amortisation	726,690,746	?	586,695,417
Others	948,184,616	?	950,756,065
?	?	?	?
Total	6,203,600,521	?	5,214,948,027

48 Research and development expenses

?	2020	?	2019
?	?	?	?
Staff cost	3,621,724,397	?	2,764,095,983
Material expenses	1,395,642,077	?	1,517,000,923
Depreciation and amortisation	1,501,402,837	?	1,234,104,120
Others	1,103,828,614	?	1,184,772,214
?	?	?	?
Total	7,622,597,925	?	6,699,973,240

49 Financial expenses

?	2020	?	2019
?	?	?	?
Interest expenses from loans	4,807,347,590	?	3,651,979,758
Less: Borrowing costs capitalised	1,309,649,881	?	1,126,843,549
Interest income from bank deposits	(873,376,712)	?	(840,190,118)
Net exchange (gains)/losses	(73,110,352)	?	226,570,667
Other financial expenses	98,943,327	?	82,633,500
?	?	?	?
Total	2,650,153,972	?	1,994,150,258

The capitalization rate used by the Group to determine the capitalization amount ofborrowing costs was1.77% - 3.81% (2019: 3.73% - 4.84%) for the year.

Page 123

50 Other income

?	2020	?	2019
?	?	?	?
Government grants related to assets	310,532,631	?	316,744,767
Government grants related to income	2,016,628,502	?	2,287,022,704
Others	10,544,684	?	1,891,240
?	?	?	?
Total	2,337,705,817	?	2,605,658,711

The amount of government subsidies received by the Group in 2020 and directly included inother income was RMB 1,545,518,167.

51 Investment income

???

?	Note	2020	?	2019
?	?	?	?	?
Income from long-term equity investments accounted for using the equity method	V. 11	444,407,986	?	200,020,686
Investment income from disposal of long-term equity investments	?	280,374,469	?	48,846,682
Dividend income from investments in other equity instruments	V. 12	26,376,687	?	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	?	26,376,687	?	9,512,851
Investment income from disposal of financial assets held for trading	?	18,157,931	?	46,195,167
Interest income from debt investments		22,213,061		19,869,375
Investment income from disposal of debt investments		10,391,153		17,704,576
Gain from remeasurement of remaining equity interests to fair value upon the loss of control	VI. 2	95,969,822	?	-
?	?	?	?	?
Total	?	897,891,109	?	342,620,691

Page 124

52 Gains from changes in fair value

Item	2020	?	2019
?	?	?	?
Financial assets held for trading	31,936,339	?	66,473,077
Gains from changes in fair value of derivative financial liabilities	-	?	71,000,000
?	?	?	?
Total	31,936,339	?	137,473,077

53 Credit losses

??Item

Item	2020	?	2019
?	?	?	?
Accounts receivable	(2,339,323)	?	22,016,906
Other receivables	511,804	?	6,245,721
?	?	?	?
Total	(1,827,519)	?	28,262,627

54 Impairment losses

???

?	2020	?	2019
?	?	?	?
Impairment losses of inventories	2,509,374,165	?	1,986,350,231
Impairment losses of fixed assets	505,201,450	?	160,345,034
Impairment losses of long-term equity investments	265,641,984	?	240,721,340
Impairment losses of goodwill	-	?	196,766,653
Impairment losses of contract assets	207,800	?	-
?	?	?	?
Total	3,280,425,399	?	2,584,183,258

55 Gains from asset disposals

Item

Item	2020	?	2019	?	Amount recognised in extraordinary gain and loss in 2020
?	?	?	?	?	?
Gains from disposal of fixed assets	11,403,591	?	79,029	?	11,403,591
Gains from disposal of intangible assets	7,658,255	?	-	?	7,658,255
?	?	?	?	?	?
Total	19,061,846	?	79,029	?	19,061,846

Page 125

56 Non-operating income and non-operating expenses

(1) Non-operating income by item is as follows:

Item	2020	?	2019	?	Amount recognised in extraordinary gain and loss in 2020
?	?	?	?	?	?
Government grants	4,946,559	?	36,867,390	?	4,946,559
Others	115,557,069	?	171,562,808	?	115,557,069
?	?	?	?	?	?
Total	120,503,628	?	208,430,198	?	120,503,628

Government grants recognised in profit or loss for the current period

??Item

Item	2020	?	2019
?	?	?	?
Policy incentives and others	4,946,559	?	36,867,390

(2) Non-operating expenses

?	2020	?	2019	?	Amount recognised in extraordinary gain and loss in 2020
?	?	?	?	?	?
Donations provided	13,324,588	?	9,985,603	?	13,324,588
Losses from scrapping of non-current assets	22,698,482	?	31,048,028	?	22,698,482
Others	36,116,596	?	62,315,447	?	36,116,596
?	?	?	?	?	?
Total	72,139,666	?	103,349,078	?	72,139,666

Page 126

57 Income tax expenses

?	Note	2020	?	2019
?	?	?	?	?
Current tax expense for the period based on tax law and regulations	?	1,547,783,003	?	956,184,825
Changes in deferred tax assets/liabilities	(1)	16,783,243	?	23,806,679
?	?	?	?	?
Total	?	1,564,566,246	?	979,991,504

(1) The analysis of changes in deferred tax assets/liabilities is set out below:

???

?	2020	?	2019
?	?	?	?
Origination and reversal of temporary differences	16,783,243	?	23,806,679

(2) Reconciliation between income tax expenses and accounting profit:

???

?	2020	?	2019
?	?	?	?
Profit before taxation	6,092,836,662	?	503,750,101
Expected income tax expense at tax rate of 15%	913,925,499	?	75,562,515
Add: Effect of different tax rates applied by subsidiaries	(26,770,857)	?	7,640,088
Effect of non-deductible costs, expense and losses	89,724,266	?	58,923,605
Effect of weighted pre-tax deduction and tax preference	(643,677,261)	?	(590,392,743)
Utilisation of prior year tax losses	(95,546,933)	?	(20,942,179)
Effect of deductible losses of deferred tax assets not recognised	515,687,922	?	1,358,934,997
Effect of deductible temporary differences of deferred tax assets not recognised	811,223,610	?	106,073,260
Effect of tax rates changes on deferred tax	-	?	(15,808,039)
?	?	?	?
Income tax expenses	1,564,566,246	?	979,991,504

Page 127

According to Notice on Increasing the Pre-tax Deduction Ratio of Research andDevelopment Expenses (Caishui [2018] No. 99) issued by the Ministry of Finance, the StateAdministration of Taxation and the Ministry of Science and Technology Finance andTaxation, in order to further encourage enterprises to increase investment in research anddevelopment, support scientific and technological innovation, the research and developmentexpenses incurred from the research and development activities carried out by enterprises,which do not form intangible assets and are included in the current profits and losses, can bededucted in accordance with provisions, with 75% of the actual amount is deducted beforetax additionally during the period from 1 January 2018 to 31 December 2020.

58 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.

?	2020	?	2019
?	?	?	?
Net profit attributable to the Company’s shareholders	5,035,627,952	?	1,918,643,871
Less: Current interest of other equity instruments	485,925,480	?	56,109,589
Consolidated net profit attributable to ordinary shareholders of the Company	4,549,702,472	?	1,862,534,282
Weighted average number of ordinary shares outstanding (share)	34,684,107,122	?	34,798,398,763
Basic earnings per share (RMB/share)	0.13	?	0.05

Weighted average number of ordinary shares is calculated as follows:

?	2020	?	2019
?	?	?	?
Issued ordinary shares at the beginning of the year	34,798,398,763	?	34,798,398,763
Less: Weighted average number of ordinary shares for the period	114,291,641	?	-
?	?	?	?
Weighted average number of ordinary shares at the end of the year	34,684,107,122	?	34,798,398,763

Page 128

59 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

?	2020	?	2019
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities:	?	?	?
?	?	?	?
Net profits/(losses)	4,528,270,416	?	(476,241,403)
Add: Credit losses	(1,827,519)	?	28,262,627
Impairment losses	3,280,425,399	?	2,584,183,258
Depreciation of fixed assets and investment properties	21,680,555,167	?	18,357,209,097
Amortisation of intangible assets	758,817,609	?	505,881,147
Amortisation of long-term deferred expenses	123,440,347	?	123,883,157
Gains from disposal of fixed assets, intangible assets, and other long-term assets	(19,786,363)	?	(79,029)
Losses from scrapping of fixed assets and intangible assets	22,698,482	?	28,585,575
Financial expenses	3,835,299,300	?	2,849,179,043
Gains from changes in fair value	(31,936,339)	?	(137,473,077)
Investment income	(897,891,109)	?	(342,620,691)
Share-based payments	15,779,427	?	-
Change in deferred income	2,101,629,423	?	276,854,045
Change in deferred tax assets	43,112,673	?	(9,992,167)
Change in deferred tax liabilities	(26,272,475)	?	33,798,846
Increase in inventories	(6,687,901,867)	?	(2,397,146,821)
Decrease in operating payables	2,870,511,767	?	1,113,154,602
Increase in operating payables	7,656,849,120	?	3,545,640,985
?	?	?	?
Net cash flows from operating activities	39,251,773,458	?	26,083,079,194

(b) Net changes in cash and cash equivalents:

(b) Net changes in cash and cash equivalents:	?	?	?
?	?	?	?
?	2020	?	2019
?	?	?	?
Cash and cash equivalents at the end of the year	68,064,736,371	?	50,270,321,573
Less: Cash and cash equivalents at the beginning of the year	50,270,321,573	?	43,350,696,520
?	?	?	?
Net increase in cash and cash equivalents	17,794,414,798	?	6,919,625,053

Page 129

(2) Information on acquisition of subsidiaries during the year

Information on acquisition of subsidiaries:

?	2020	?	2019
?	?	?	?
Cash and cash equivalents paid during the year for acquiring subsidiaries during the year	6,374,732,839	?	-
Less: Cash and cash equivalents held by subsidiaries	5,433,764,430	?	33,640,033
?	?	?	?
Net cash paid for acquisition of subsidiaries	940,968,409	?	(33,640,033)

(3) Details of cash and cash equivalents

???

?	2020	?	2019
?	?	?	?
Cash on hand	401,041	?	538,338
Bank deposits available on demand	68,063,719,329	?	50,269,207,607
Other monetary funds available on demand	616,001	?	575,628
?	?	?	?
Closing balance of cash and cash equivalents	68,064,736,371	?	50,270,321,573

Note: The cash and cash equivalents disclosed above do not include the interest accrued

on bank deposits at the end of the period and the use of other currency funds subjectto restrictions.

Page 130

60 Assets with restrictive ownership title or right of use

Item	Balance at the beginning of the year	?	Additions during the year	?	Decreases during the year	?	Balance at the end of the year	?	Reason for restriction
?	?	?	?	?	?	?	?	?	?
Cash at bank and on hand	6,702,401,666	?	5,550,402,351	?	(6,764,704,383)	?	5,488,099,634	?	Pledged as collateral and margin deposit
Bills receivable	57,102,517	?	95,039,227	?	(91,927,587)	?	60,214,157	?	Discounted with recourse, endorsed with resource and pledged for drawing bills payable
Financial assets held for trading	24,000,000	?	65,254,917	?	(89,254,917)	?	-	?	Pledged for drawing bills payable
Accounts receivable	-	?	44,682,510	?	-	?	44,682,510	?	Factored and discounted with recourse
Investment properties	43,396,671	?	21,673,570	?	(22,111,153)	?	42,959,088	?	Mortgaged as collateral
Fixed assets	93,007,772,827	?	93,804,470,252	?	(17,839,310,716)	?	168,972,932,363	?	Mortgaged as collateral, leaseback assets
Construction in progress	57,083,458,981	?	24,302,781,621	?	(60,249,078,522)	?	21,137,162,080	?	Mortgaged as collateral
Intangible assets	1,534,385,843	?	278,789,101	?	(44,134,527)	?	1,769,040,417	?	Mortgaged as collateral
?	?	?	?	?	?	?	?	?	?
Total	158,452,518,505	?	124,163,093,549	?	(85,100,521,805)	?	197,515,090,249	?	?

61 Details of provision for impairment of assets

???

Reductions during the year

Item

Note

Balance at the beginning of the year

Additions during the year

Reversal

Transferred out

Translation differences

Balance at the end of the year

RMB

Provision for impairment

V.4, 6

356,641,409

13,620,301

(15,447,820)

(285,263,362)

(2,643,494)

66,907,034

Provision for impairment of inventories

V. 7

1,812,618,989

3,826,916,751

(1,317,542,586)

(1,031,978,594)

(5,118,806)

3,284,895,754

Provision for impairment of long-term equity investments

V. 11

777,858,312

265,641,984

(14,455,477)

1,029,044,819

Provision for impairment of fixed assets

V. 14

791,695,970

505,201,450

(35,450,891)

1,261,446,529

Provision for impairment of goodwill

V. 17

201,190,529

Provision for impairment of contract assets

V. 8

207,800

Total

3,940,005,209

4,611,588,286

(1,332,990,406)

(1,352,692,847)

(22,217,777)

5,843,692,465

For reasons of recognition of impairment losses, refer to the notes of relevant assets.

Page 131

VI. Change of consolidation scope

1 Business combinations involving entities not under common control

(1) Business combinations involving entities not under common control occurred during the year

(a) Acquisition of Chengdu CEC Panda

In 2020, the Company increased investment in Chengdu CEC Panda by RMB7,550,000,000 with one-time subscription and instalment payment. After the completionof capital increase, the Company held 35.0348% of equity interest in Chengdu CECPanda. On 17 December 2020, the Company entered into Agreement of Acting inConcert with shareholders of Chengdu CEC Panda and obtained control of ChengduCEC Panda. See Note VII.1. On 23 December 2020, Chengdu CEC Panda completedindustrial and commercial modification registration procedures. As at 31 December2020, the Company has paid a capital increase of RMB 3,020,000,000, with RMB4,530,000,000 outstanding.

Chengdu CEC Panda is a company established in Chengdu on 7 December 2015 andis mainly engaged in research and development, production and sales of TFT-LCDpanels and modules, liquid crystal display monitors, televisions, instruments, machineryequipment and accessories as well as provision of technical services. Before theacquisition, Chengdu CEC Panda was jointly established by Nanjing HuadongElectronic Information & Technology CO., Ltd., Chengdu Xihanggang IndustrialDevelopment Investment Co., Ltd., Chengdu Advanced Manufacturing IndustryInvestment Co., Ltd., Chengdu Shuangliu Xingrong Optoelectronic Display IndustryEquity Investment Centre (Limited Partnership), Sichuan Province Integrated CircuitAnd Information Security Industry Investment Fund Co., Ltd. and Nanjing CEC PandaInformation Industry Group Co., Ltd.

(b) Acquisition of Nanjing CEC Panda

In 2020, the Company acquired 80.831% of equity interest in Nanjing CEC Panda withthe consideration of RMB 5,591,221,400. As at 15 December 2020, the Company haspaid 60% of equity acquisition fee (i.e. RMB 3,354,732,839). On 24 December 2020,Nanjing CEC Panda completed industrial and commercial modification registrationprocedures. So far, the Company has completed the acquisition of certain equity inNanjing CEC Panda. As at 31 December 2020, the outstanding equity acquisition feeamounted to RMB 2,236,488,561.

Nanjing CEC Panda is a company established in Nanjing 21 November 2012 and ismainly engaged in research and development, production and sales of TFT-LCDpanels and colour filter, LCD whole-widget module and accessory products. Before theacquisition, the parent company of Nanjing CEC Panda is Nanjing Huadong ElectronicInformation & Technology CO., Ltd. and the ultimate holding company is ChinaElectronics Corporation.

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(2) Acquisition cost and goodwill

?	Chengdu CEC Panda			?	Nanjing CEC Panda
Acquisition cost	Carrying amount	?	Fair value	?	Carrying amount	?	Fair value
?	?	?	?	?	?	?	?
Cash	3,020,000,000	?	3,020,000,000	?	3,354,732,839	?	3,354,732,839
Other payables	?	?	?	?	2,236,488,561	?	2,236,488,561
Equity interests held before acquisition date	-	?	-	?	-	?	-
?	?	?	?	?	?	?	?
Total acquisition cost	?	?	3,020,000,000	?	?	?	5,591,221,400
?	?	?	?	?	?	?	?
Less: Share of the fair value of the identifiable net assets acquired	?	?	2,482,961,029	?	?	?	5,435,506,985
?	?	?	?	?	?	?	?
Amount of acquisition cost more than share of the fair value of the identifiable net assets acquired	?	?	537,038,971	?	?	?	155,714,415

(3) Identifiable assets and liabilities of the acquiree at the acquisition date

?	Chengdu CEC Panda			?	Nanjing CEC Panda
?	Carrying amount	?	Fair value	?	Carrying amount	?	Fair value
?	?	?	?	?	?	?	?
Assets	?	?	?	?	?	?	?
Current assets	5,780,578,892	?	5,792,754,330	?	3,057,319,669	?	3,058,434,669
Non-current assets	25,888,187,662	?	26,763,545,261	?	15,092,623,128	?	16,246,434,439
?	?	?	?	?	?	?	?
Liabilities	?	?	?	?	?	?	?
Current liabilities	6,841,880,080	?	6,841,880,080	?	8,661,587,395	?	8,691,981,056
Non-current liabilities	10,227,290,745	?	10,227,290,745	?	3,888,355,404	?	3,888,355,404
?	?	?	?	?	?	?	?
Net assets	14,599,595,729	?	15,487,128,766	?	5,599,999,998	?	6,724,532,648
Less: Non-controlling interests	12,264,740,503	?	13,004,167,737	?	1,073,464,000	?	1,289,025,663
?	?	?	?	?	?	?	?
Net assets acquired	2,334,855,226	?	2,482,961,029	?	4,526,535,998	?	5,435,506,985

The Company assessed the fair value of the identifiable assets and liabilities of ChengduCEC Panda and Nanjing CEC Panda at the acquisition date. If there is an active market forthe above identifiable assets, the quoted prices in the active market are used to establishtheir fair value; if there is no active market, their fair values are estimated based on themarket prices of the same or similar types of assets which have an active market; if there isno active market for the same asset or similar types of assets, valuation techniques are usedto determine the fair value. For the above identifiable liabilities, the payable amount or thepresent value of the payable amount is its fair value.

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2 Disposal of subsidiaries

(1) Disposal of investments in subsidiaries through a single transaction resulting in loss of control

Entity name

disposal price

Shareholding being disposed (%)

Disposal method

Date of losing control

Basis for determining date of losing control

Difference between consideration received and the related share of net assets in consolidated financial statements

Proportion of remaining shareholding on the date of losing control

Carrying amount of remaining equity interests on the date of losing control

Fair value of remaining equity interests on the date of losing control

Gain or loss from remeasurement of remaining equity interests to fair value

Method and key assumptions for determining the fair value of remaining equity interests

Investment income or loss transferred from other comprehensive income related to previous equity investments in subsidiaries

Beijing Asahi Electronic Materials Co., Ltd.

425,000,000

100%

Listing transfer

22 December 2020

Completion of industrial and commercial modification registration

251,411,452

Hunan BOE Yiyun Science & Technology Co., Ltd.

5.44%

Diluted by other shareholders’ capital contribution

29 December 2020

Change of articles of association of the Company

(17,507,070)

48.99%

157,660,178

253,630,000

95,969,822

Subscription price of the latest capital increase

46,470,087

The Group has a gain of RMB 251,411,452 on the loss of its control over Beijing Asahi Electronic Materials Co., Ltd., which has been includedin investment income of consolidated financial statements.

The Group lost its control over Hunan BOE Yiyun Science & Technology Co., Ltd. (formerly Beijing BOE Yiyun Technology Co., Ltd.) for thecapital increase of other shareholders. The Company accounted for its investment in Hunan BOE Yiyun Science & Technology Co., Ltd.(formerly Beijing BOE Yiyun Technology Co., Ltd.) in the company financial statements by using equity method instead of cost method (seeNote XV.5). In the consolidated financial statements, the long-term equity investments is re-measured at its fair value at the date when control islost (see Note V.51).

3 Other reasons for change of consolidation scope

The Company has set up five new subsidiaries this year, which are BOE Education Technology Co., Ltd., Dongfang Chengqi (Beijing) BusinessTechnology Co., Ltd., BOE Innovation Investment Co., Ltd., BOE Smart Technology Co., Ltd., and Hefei BOE Xingyu Technology Co., Ltd.

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VII. 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

Research and development (“R&D”), design and manufacturing of TFT-LCD

USD 649,110,000

82.49%

17.51%

Founded by investment

Chengdu BOE Optoelectronics Technology Co., Ltd.

Chengdu, China

R&D, design, manufacturing, and sale of new display devices and components

RMB 25,000,000,000

100.00%

Business combinations involving entities not under common control

Hefei BOE Optoelectronics Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products.

RMB 9,000,000,000

100.00%

Business combinations involving entities not under common control

Beijing BOE Display Technology Co., Ltd.

Beijing, China

Development of TFT-LCD, manufacturing and sale of LCD

RMB 17,882,913,500

97.17%

2.83%

Founded by investment

Hefei Xinsheng Optoelectronics Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary 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

Manufacture and sales of AM-OLED products and auxiliary products.

RMB 11,804,000,000

100.00%

Founded by investment

Chongqing BOE Optoelectronics Technology Co., Ltd.

Chongqing, China

R&D, production and sales of semi-conducting display devices, complete machine and related products; import & export of goods and technology consulting.

RMB 19,226,000,000

100.00%

Business combinations involving entities not under common control

Fuzhou BOE Optoelectronics Technology Co., Ltd.

Fuzhou, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products.

RMB 17,600,000,000

81.25%

Business combinations involving entities not under common control

Beijing BOE Video Technology Co., Ltd. (“BOE Video”)

Beijing, China

Manufacture of LCD TV, LCD; technology development of terminal products and systems such as TFT-LCD display and TV

RMB 4,093,500,000

100.00%

Founded by investment

Beijing BOE Vacuum Electronics Co., Ltd.

Beijing, China

Manufacture and sale of vacuum electronic products

RMB 35,000,000

55.00%

Founded by investment

Beijing BOE Vacuum Technology Co., Ltd.

Beijing, China

Manufacture and sale of electronic tubes.

RMB 32,000,000

100.00%

Founded by investment

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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

Development of display products and sale of electronic products.

RMB 100,000,000

100%

Founded by investment

Beijing Yinghe Century Co., Ltd.

Beijing, China

Management of engineering projects; real estate development; public parking lot for motor vehicles service; office lease.

RMB 233,105,200

100%

Founded by investment

BOE Optical Science and technology Co., Ltd.

Suzhou, China

R&D, production and sales of LCD, back light for display and related components.

RMB 826,714,059

95.17%

Founded by investment

BOE Hyundai LCD (Beijing) Display Technology Co., Ltd.

Beijing, China

Development, manufacture and sale of liquid display for mobile termination.

USD 5,000,000

75%

Founded by investment

BOE (Hebei) Mobile Technology Co., Ltd.

Langfang, China

Manufacture and sale of mobile flat screen display technical products and related services.

RMB 1,358,160,140

100%

Founded by investment

Beijing Asahi Electronic Materials Co., Ltd.*

Beijing, China

Sales of TV bracket glass rod and CTV low-melting-point solder glass.

RMB 61,576,840

100%

Business combinations involving entities not under common control

Beijing BOE Multimedia Technology Co., Ltd.

Beijing, China

Sales of computer software and hardware, digital video-audio products

RMB 400,000,000

100%

Founded by investment

Page 136

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 Energy Technology

Beijing, China

Design, consultancy and service of solar cell, photovoltaic system, wind power system and solar thermal system as well as the assembly units; energy-saving service.

RMB 850,000,000

100%

Founded by investment

Beijing BOE Life Technology Co., Ltd. (Formerly Beijing Zhongpingxun Technology Co., Ltd.)

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 24,000,000

100%

Founded by investment

Beijing Zhongxiangying Technologies Co., Ltd.

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 100,000,000

100%

Founded by investment

Ordos City Haosheng Energy Investment Co., Ltd.

Ordos, China

Energy investment

RMB 30,000,000

100%

Founded by investment

BOE Semi-conductor Co., Ltd.

Beijing, China

Processing, manufacturing and sales of precision electronic components, semi-conductor devices, micro modules, microelectronic devices and electronic materials; import & export of goods

RMB 11,250,000

84%

Founded by investment

BOE Optoelectronics Holding Co., Ltd

Hong Kong

British Virgin Islands

Design, manufacturing and sales of electronic-information industry related products, investment and financing businesses

USD 1,000,000,000

100%

Founded by investment

Page 137

Shareholding (or similar equity interest) percentage

Name of the Subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Healthcare Investment & Management Co., Ltd.

Beijing, China

Investment management and project investment

RMB 7,300,000,000

100%

Business combinations involving entities not under common control

Beijing?Matsushita Colour CRT Co., Ltd. (“Matsushita Colour CRT”)

Beijing, China

Colour TV set, display tube, colour RPTV projection tube and materials of electronic components; property management and 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

Investment, R & D and production of products related to TFT-LCD and the supporting facility

RMB 24,000,000,000

8.33%

Business combinations involving entities not under common control

Beijing BOE Technology Development Co., Ltd.

Beijing, China

Development, transfer, consulting and service of technology

RMB 1,000,000

100%

Founded by investment

BOE Wisdom IOT Technology Co., Ltd. (“Wisdom IOT Technology”)

Beijing, China

Development, transfer, consulting, service and promotion of technology

RMB 142,000,000

100%

Founded by investment

Hefei BOE Zhuoyin Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products

RMB 800,000,000

75%

Founded by investment

Beijing BOE Real Estate Co., Ltd.

Beijing, China

Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service

RMB 55,420,000

70%

Founded by investment

Beijing BOE Marketing Co., Ltd.

Beijing, China

Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices

RMB 50,000,000

100%

Founded by investment

Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. (Formerly Kunming BOE Display Technology Co., Ltd.)

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 whole widget; warehousing services;

RMB 3,040,000,000

79.96%

Founded by investment

Page 138

Shareholding (or similar equity interest) percentage

Name of the Subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Mianyang BOE Optoelectronics Technology Co., Ltd.

Mianyang, China

R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc.

RMB 24,000,000,000

66.67%

Business combinations involving entities not under common control

Beijing BOE Sensing Technology Co., Ltd.

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

Hunan BOE Yiyun Science & Technology Co., Ltd. (Formerly Beijing BOE Yiyun Science & Technology Co., Ltd.)

Changsha, China

Technology development, technology transfer, technical consulting, technical services; technology intermediary services; information system integration; basic software services; application software services; software development

RMB 400,000,000

48.99%

Business combinations involving entities not under common control

Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE)

Wuhan, China

Investing, researching, manufacturing and selling TFT-LCD products and accessory products

RMB 26,000,000,000

23.08%

Business combinations involving entities not under common control

Chongqing BOE Display Technology Co., Ltd. (Chongqing BOE Display)

Chongqing, China

R&D, manufacture and sales of semiconductor display devices, whole widget 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

R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical services; business management consulting; property management; house rental; machinery and equipment rental

RMB 50,000,000

43.46%

Business combinations involving entities not under common control

Page 139

Shareholding (or similar equity interest) percentage

Name of the Subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

SES Imagotag SA Co., Ltd.

Nanterre, France

Support colour 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 31,516,216

68.48%

Business combinations involving entities not under common control

Hefei BOE Xingyu Technology Co., Ltd.

Hefei, China

Investment, R&D, manufacturing and sales of direct display, sensors related to the display, back light source for LCD and supporting components; enterprise management consulting and service; house rental; equipment rental; technology development, transfer and consulting services.

USD 115,380,000

43.40%

Founded by investment

BOE Education Technology Co., Ltd.

Beijing, China

Technology development, software development, sales of stationery, sports goods and household appliances; enterprise management, economic and trade consulting, education consulting, public relations services; natural science, engineering technology, agricultural science research and experimental development; copyright agency and process beauty creation services.

RMB 55,000,000

100%

Founded by investment

Dongfang Chengqi (Beijing) Business Technology Co., Ltd.

Beijing, China

Technology development; sales of primary edible agricultural products; translation services, conference services; business management, real estate information consulting; ticketing agents, tourism consulting, warehousing services, public relations services, car rental; import and export of goods, technology import and export; beauty services, medical services; inbound tourism business; Internet information services.

RMB 10,000,000

100%

Founded by investment

BOE Innovation Investment Co., Ltd.

Beijing, China

Project investment and investment management

RMB 800,000,000

100%

Founded by investment

Page 140

Shareholding (or similar equity interest) percentage

Name of the Subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Smart Technology Co., Ltd.

Beijing, China

Information system integration services; technology development, technology transfer; software development; Internet data services; real estate brokerage business; motor vehicle public parking services; conference services; project management; property management; lease of office space and commercial space; labour subcontracting; import and export of goods, technology import and export; human resource services.

RMB 800,000,000

100%

Founded by investment

Nanjing CEC Panda FPD Technology Co., Ltd.

Nanjing, China

R&D, production and sale of TFT-LCD panels, colour filters and LCD whole-widget modules; providing products and business-related services, as well as other business activities related to the above; import and export of proprietary and agent commodities and technologies.

RMB 17,500,000,000

80.831%

Business combinations involving entities not under common control

Chengdu CEC Panda Display Technology Co., Ltd.

Sichuan, China

R&D, production and sales of TFT-LCD panels and modules, liquid crystal display monitors, televisions, instruments, machinery equipment and accessories as well as provision of technical services; foreign trade in form of import and export of goods and technology.

RMB 21,550,000,000

35.0348%

Business combinations involving entities not under common control

* Beijing Asahi Electronic Materials Co., Ltd. and Hunan BOE Yiyun Science & Technology Co., Ltd. are disposed of on 22 December 2020and 29 December 2020 respectively. See Note VI.2.

The Company signed an agreement of acting in concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) on 30November 2016. Hefei Core Screen Industrial Investment Fund (Limited Partnership) agreed to act as a person acting in concert according tothe wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordance with the opinions of the Company.Therefore, the Company’s voting right ratio to Hefei Display Technology is 71.67%.

Page 141

The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE, Wuhan Airport Economic Development ZoneIndustrial Development Investment Group Co., Ltd. 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 person acting in concert, unconditionally and irrevocably exercisingvoting rights in accordance with the opinions of the Company, the voting rights of the Company to Wuhan BOE is 69.23%.

The Company signed an agreement of acting in concert with shareholders of Chongqing BOE Display, Chongqing Strategic Emerging IndustryEquity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25 December2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi OptoelectronicIndustry Investment Co., Ltd. agreed to act as persons acting in concert 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 of the Company toChongqing BOE is 100%.

The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE Display, Fuqing City Invested-ConstructionInvestment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-ConstructionInvestment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. agreed to act as persons acting in concert according tothe will of the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company.Therefore, the proportion of voting rights of the Company to Fuzhou BOE Display is 100%.

The Company signed an agreement of acting in concert with shareholders of Chengdu CEC Panda, Chengdu Advanced Manufacturing IndustryInvestment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co.,Ltd. on 17 December 2020. Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment GroupCo., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. agreed to act as persons acting in concert according to the will ofthe Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, theproportion of voting rights of the Company to Chengdu CEC Panda is 100%.

Page 142

(2) Material non-wholly owned subsidiaries

Name of the Subsidiary	Proportion of ownership interest held by non-controlling interests	?	Profit/(loss) allocated to non-controlling interests during the year	?	Dividend declared to non-controlling shareholders during the year	?	Balance of non-controlling interests at the end of the year
?	?	?	?	?	?	?	?
Hefei Display Technology	91.67%	?	3,600,766	?	-	?	19,364,095,828
Mianyang BOE	33.33%	?	(270,861,155)	?	-	?	7,588,781,957
Wuhan BOE	76.92%	?	(115,879,453)	?	-	?	19,861,266,116
Chongqing BOE Display	61.54%	?	(88,748,272)	?	-	?	6,245,130,676

(3) Key financial information about material non-wholly owned subsidiaries

The following table sets out the key financial information of the above subsidiaries without offsetting internal transactions, but with adjustmentsmade for the fair value adjustment at the acquisition date and any differences in accounting policies:

???

Hefei Display Technology

Mianyang BOE

Wuhan BOE

Chongqing BOE Display

2020

2019

2020

2019

2020

2019

2020

2019

Current assets

13,917,088,962

11,633,732,300

5,001,552,767

3,644,261,703

11,748,881,218

3,684,026,094

4,511,835,708

5,182,267,756

Non-current assets

28,144,487,136

33,264,338,502

45,771,813,314

39,751,190,014

34,698,575,568

27,439,008,544

13,507,596,306

1,634,796,122

Total assets

42,061,576,098

44,898,070,802

50,773,366,081

43,395,451,717

46,447,456,786

31,123,034,638

18,019,432,014

6,817,063,878

Current liabilities

8,775,178,650

9,069,027,029

8,221,423,949

4,971,407,195

5,369,267,140

5,661,729,075

6,962,326,548

716,978,520

Non-current liabilities

12,162,697,407

14,787,288,631

19,783,319,398

17,405,543,775

15,257,510,868

7,429,662,481

909,021,819

97,980,000

Total liabilities

20,937,876,057

23,856,315,660

28,004,743,347

22,376,950,970

20,626,778,008

13,091,391,556

7,871,348,367

814,958,520

Operating income

15,153,402,394

11,455,196,518

1,406,636,788

110,313,244

1,775,338,449

130,054,586

355,365

169,027

Net profit/(loss)

3,927,966

(2,448,838,884)

(830,258,844)

(252,575,687)

(158,596,684)

(13,172,938)

(144,212,337)

(1,354,276)

Total comprehensive income

3,927,966

(2,448,838,884)

(830,258,844)

(252,575,687)

(158,596,684)

(13,172,938)

(144,212,337)

(1,925,302)

Cash inflow/(outflow) in operating activities

3,819,978,355

912,437,769

(1,016,864,877)

184,012,366

2,934,840,804

890,669,009

43,940,351

118,933,310

Page 143

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
?	?	?	?
Yunnan Chuangshijie Optoelectronic Technology Co., Ltd.	69.43%	?	79.96%
Mianyang BOE Optoelectronics Technology Co., Ltd.	68.72%	?	66.67%

(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 in the increase of capital reserves by RMB 76,020,559. See NoteV.39.

3 Interests in associates

Please see Note V.11(2) for details of the summarised financial information of theassociates.

No material restrictions on transfers of funds from investees to the Group. The judgementbasis of the Company and its subsidiaries to hold lower than 20% of the voting rights of otherentities but have significant influence on the entity is due to the fact that the Company and itssubsidiaries have seats in the board of directors of the entity, and the Company andsubsidiaries of the Company may have significant influence on the entity through therepresentation of the directors in the process of formulating financial and operating policies.

VIII. 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.

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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 or country/region in which the customers operate.Therefore, significant concentrations of credit risk primarily arise when the Group hassignificant exposure of the total accounts receivable and contract assets to individualcustomers. At the balance sheet date, the Group and the Company’s accounts receivabledue from the top five customers account for 33% and 0.02% of the total accounts receivableand contract assets respectively (2019: 43% and 0.07%). In addition, the accountsreceivable not overdue or impaired is mainly related to many clients who don’t have paymentin 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 XIII, as at 31 December 2020, the Groupdoes not provide any external guarantees which would expose the Group to credit risk.

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(2) Liquidity risk

Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Company and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands, subject toapproval by the Company’s board when the borrowings exceed certain predetermined levelsof authority. The Group’s policy is to regularly monitor its liquidity requirements and itscompliance with lending covenants, to ensure that it maintains sufficient reserves of cash,readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.

The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at the balance sheet date) and the earliest date the Group can be required to pay:

?	2020 Contractual undiscounted cash flow									?	?
?	Within 1 year or 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	8,778,542 ,209	?	-	?	-	?	-	?	8,778,542,209	?	8,599,569,471
Bills payable	1,231,533,895	?	-	?	-	?	-	?	1,231,533,895	?	1,231,533,895
Accounts payable	27,164,171,682	?	-	?	-	?	-	?	27,164,171,682	?	27,164,171,682
Other payables	32,867,709,024	?	-	?	-	?	-	?	32,867,709,024	?	32,867,709,024
Non-current liabilities due within one year	25,053,537,286	?	-	?	-	?	-	?	25,053,537,286	?	24,500,550,121
Long-term loans	4,957,036,602	?	28,885,981,505	?	24,623,632,349	?	97,458,835,686	?	155,925,486,142	?	132,452,767,135
Debentures payable	14,886,375	?	350,772,750	?	85,932,140	?	-	?	451,591,265	?	398,971,739
Long-term payables	-	?	1,620,375,941	?	304,011,108	?	536,546,749	?	2,460,933,798	?	2,114,175,683
?	?	?	?	?	?	?	?	?	?	?	?
Total	100,067,417,073	?	30,857,130,196	?	25,013,575,597	?	97,995,382,435	?	253,933,505,301	?	229,329,448,750

???

?	2019 Contractual undiscounted cash flow									?	?
?	Within 1 year or 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
Debentures payable	14,497,753	?	28,995,505	?	330,673,806	?	3,556,053	?	377,723,117	?	387,878,384
Long-term payables	-	?	409,808,948	?	328,617,676	?	538,091,397	?	1,276,518,021	?	984,520,824
?	?	?	?	?	?	?	?	?	?	?	?
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

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(3) Interest rate risk

Interest-bearing financial instruments at floating 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:

?	2020			?	2019
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.20%~3.74%	?	41,745,509,216	?	0.20% ~ 3.74%	?	26,721,273,607
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	0.50%~5.90%	?	(6,327,791,477)	?	0.40% - 4.35%	?	(4,643,502,121)
- Non-current liabilities due within one year	0%~5.29%	?	(12,025,528,359)	?	0% - 5.64%	?	(9,071,034,895)
- Long-term loans	0%~5.90%	?	(49,498,675,910)	?	0% - 5.64%	?	(59,667,474,395)
- Debentures payable	3.50%~4.55%	?	(398,971,739)	?	3.50% - 4.55%	?	(387,878,384)
- Long-term payables	4.17%~7.02%	?	(2,114,175,683)	?	4.24% ~ 7.09%	?	(984,520,824)
?	?	?	?	?	?	?	?
Total	?	?	(28,619,633,952)	?	?	?	(48,033,137,012)

Floating rate instruments:

???

?	2020			?	2019
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.0001%~3.90%	?	31,800,233,366	?	0.0001% ~ 3.90%	?	30,250,911,294
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	2.02%~2.55%	?	(2,263,424,127)	?	3.56% ~ 3.92%	?	(1,723,215,000)
- Non-current liabilities due within one year	2.78%~5.88%	?	(12,128,797,769)	?	1.04% - 6.38%	?	(9,619,871,357)
- Long-term loans	1.11%~5.39%	?	(82,790,180,032)	?	3.00% ~ 6.38%	?	(48,063,121,220)
?	?	?	?	?	?	?	?
Total	?	?	(65,382,168,562)	?	?	?	(29,155,296,283)

(b) Sensitivity analysis

As at 31 December 2020, it is estimated that a general increase/decrease of 100 basispoints in interest rates of floating rate instrument, with all other variables held constant,would decrease/increase the Group’s net profit and equity by RMB 557,440,000 (2019:

RMB 251,370,000).

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.

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(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 recognised

foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 2,618,785,628 (2019 net liabilitiesexposure: USD 1,791,577,868), translated into RMB 17,087,314,344 (2019: RMB12,498,405,521), 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			?	Balance sheet date mid-spot rate
?	2020	?	2019	?	2020	?	2019
?	?	?	?	?	?	?	?
USD	6.7506	?	6.9197	?	6.5249	?	6.9762

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 333,959,173 (2019: RMB197,336,145).

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 and commodity price risk.

IX. 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 atfair value at each balance sheet date on a recurring or non-recurring basis. The level inwhich fair value measurement is categorised is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. Thelevels 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;

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Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.

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1. Fair value of assets measured at fair value at the end of the year

?	?	31 December 2020
Assets	Note	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	?	-	?	-	?	4,367,201,833	?	4,367,201,833
Including: Structured deposits and wealth management products	V. 2	-	?	-	?	4,367,201,833	?	4,367,201,833
- Investments in other equity instruments	V. 12	214,214,021	?	-	?	319,431,402	?	533,645,423
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	214,214,021	?	-	?	4,686,633,235	?	4,900,847,256

???

?	?	31 December 2019
Assets	Note	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: Structured deposits and 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

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 2020, the Group used the financing

price as the best estimates of their fair value;

(ii) For other investments in other equity instruments, since the operating environment,

operating conditions and financial status of the investee have not changed significantlyduring the year, the Group uses the book investment cost as a reasonable estimate offair value for measurement.

During 2020, 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.9.

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X. 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 authorisation, etc.	?	RMB 3,139,210,000	?	0.79%	?	18.85%	?	Yes

2 Information about the subsidiaries of the Company

For information about the subsidiaries of the Company, refer to Note VII.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
?	?
Beijing Nittan Electronic Co., Ltd.	Associate of the Group and the Company
TPV Display Technology (China) Limited	Associate of the Group and the Company
Shenzhen Yunyinggu Technology Co., Ltd.	Associate of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd.	Associate of the Group and the Company
BOE Houji Technology (Beijing) Co., Ltd.	Associate of the Group
Beijing Zhonglianhe Ultra HD Collaborative Technology Centre Co., Ltd.	Associate of the Group
Hefei Xin Jing Yuan Electronic Materials Co., Ltd.	Associate of the Group
Changzhou Xiruojia Medical Technology Co., Ltd.	Subsidiary of associate of the Group

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4 Information on other related parties

Name of other related parties	Related party relationship
?	?
Beijing Zhengdong Electronic Power Group Co., Ltd.	Under the same control of the ultimate holding company
Beijng NAURA Microelectronics Equipment Co., Ltd.	Under the same control of the ultimate holding company
Sevenstar Semiconductor Technologies Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Intelligent Equipment Co., Ltd.	Under the same control of the ultimate holding company
Beijing BBEF Science & Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Co., Ltd.	Under the same control of the ultimate holding company
Beijing Ether Electronics Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development Company	Under the same control of the ultimate holding company
Beijing BOE Investment Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Yansong Economic and Trade Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd.	Under the same control of the ultimate holding company
Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhaowei Electronic (Group) Co., Ltd.	Under the same control of the ultimate holding company
761 Workshop (Beijing) Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electric Control Industry Investment Co., Ltd.	Under the same control of the ultimate holding company
Beijing Feiyu Micro Electronics Co., Ltd.	Under the same control of the ultimate holding company
Beijing Senju Electronic Materials Co., Ltd.	Associate of enterprise that is under the same control of the ultimate holding company
New Vision Microelectronics (Hong Kong) Limited	Associate of enterprise that is under the same control of the ultimate holding company
Beijing Electric Vehicle Co., Ltd.	Other related parties
China United Network Communications Limited	Other related parties
Hefei Yisiwei Integrated Circuit Co., Ltd.	Other related parties
Chengdu ESWIN IC Design Co., Ltd.	Other related parties
Haining Yisiwei IC Design Co., Ltd.	Other related parties

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5 Transactions with related parties

The transactions below with related parties were conducted under normal commercial termsor agreements.

(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key

management personnel)

The Group

Nature of transaction	2020	?	2019
?	?	?	?
Purchase of goods	698,585,167	?	480,284,012
Procurement of equipment	169,998,650	?	397,005,152
Receiving of services	17,527,375	?	17,744,265
?	?	?	?
Total	886,111,192	?	895,033,429

The Company

Nature of transaction

Nature of transaction	2020	?	2019
?	?	?	?
Purchase of goods	14,438,544	?	12,379,363
Receiving of services	544,225,068	?	844,688,884
Payment of interest expenses	-	?	65,689,459
?	?	?	?
Total	558,663,612	?	922,757,706

(2) Sale of goods/rendering of services

The Group

??Nature of transaction

Nature of transaction	2020	?	2019
?	?	?	?
Sale of goods	20,817,125	?	2,846,583
Rendering of services	4,762,316	?	4,670,427
?	?	?	?
Total	25,579,441	?	7,517,010

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The Company

Nature of transaction	2020	?	2019
?	?	?	?
Sale of goods	3,366,359	?	-
Rendering of services	4,406,612,262	?	4,635,072,473
Interest income received	4,044,123	?	318,036
?	?	?	?
Total	4,414,022,744	?	4,635,390,509

(3) Leases

(a) As the lessor

The Group

??Type of assets leased

Type of assets leased	Lease income recognised in 2020	?	Lease income recognised in 2019
?	?	?	?
Investment properties	1,092,879	?	1,176,283

The Company

??Type of assets leased

Type of assets leased	Lease income recognised in 2020	?	Lease income recognised in 2019
?	?	?	?
Investment properties	66,764,268	?	63,700,904

(b) As the lessee

The Group

Type of assets leased

Type of assets leased	Lease expense recognised in 2020	?	Lease expense recognised in 2019
?	?	?	?
Fixed assets	2,329,933	?	3,082,942

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(4) Funding from related party

The Company

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds received	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	500,000,000	?	28/5/2019	?	31/12/2025
Subsidiary of the parent company	300,000,000	?	8/7/2020	?	8/7/2025
Subsidiary of the parent company	2,000,000,000	?	9/6/2017	?	31/12/2025
Subsidiary of the parent company	700,000,000	?	13/4/2018	?	31/12/2025
Subsidiary of the parent company	2,000,000,000	?	27/5/2019	?	31/12/2025
Subsidiary of the parent company	360,000,000	?	24/4/2020	?	31/12/2025
Subsidiary of the parent company	2,500,000,000	?	6/7/2020	?	6/7/2025
Subsidiary of the parent company	1,700,000,000	?	12/10/2020	?	12/10/2025
Subsidiary of the parent company	1,700,000,000	?	28/12/2020	?	28/12/2025
Subsidiary of the parent company	1,200,000,000	?	30/9/2015	?	31/12/2025
Subsidiary of the parent company	650,000,000	?	25/4/2018	?	31/12/2025
Subsidiary of the parent company	3,500,000,000	?	1/8/2018	?	31/12/2025
Subsidiary of the parent company	1,500,000,000	?	24/5/2019	?	31/12/2025
Subsidiary of the parent company	2,000,000,000	?	3/7/2020	?	3/7/2025
Subsidiary of the parent company	2,500,000,000	?	5/11/2020	?	5/11/2025
Subsidiary of the parent company	500,000,000	?	11/12/2020	?	11/12/2025
Subsidiary of the parent company	200,000,000	?	28/7/2017	?	31/12/2025
Subsidiary of the parent company	1,600,000,000	?	4/12/2017	?	31/12/2025
Subsidiary of the parent company	3,800,000,000	?	19/7/2018	?	31/12/2025
Subsidiary of the parent company	1,000,000,000	?	26/7/2019	?	31/12/2025
Subsidiary of the parent company	1,000,000,000	?	20/8/2020	?	20/8/2025
Subsidiary of the parent company	4,000,000,000	?	9/6/2017	?	31/12/2025
Subsidiary of the parent company	1,000,000,000	?	23/12/2016	?	31/12/2025
Subsidiary of the parent company	3,000,000,000	?	27/4/2018	?	31/12/2025
Subsidiary of the parent company	2,490,000,000	?	31/8/2018	?	31/12/2025
Subsidiary of the parent company	500,000,000	?	21/5/2019	?	31/12/2025
Subsidiary of the parent company	2,000,000,000	?	28/12/2020	?	28/12/2025
Subsidiary of the parent company	1,200,000,000	?	6/7/2020	?	6/7/2025
Subsidiary of the parent company	3,000,000,000	?	28/5/2018	?	31/12/2025
Subsidiary of the parent company	1,300,000,000	?	21/5/2019	?	31/12/2025
Subsidiary of the parent company	2,500,000,000	?	28/9/2020	?	28/9/2025
Subsidiary of the parent company	3,280,000,000	?	7/12/2020	?	7/12/2025
?	?	?	?	?	?
Total	55,480,000,000	?	?	?	?

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Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds provided	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	50,000,000	?	27/3/2015	?	26/12/2021
Subsidiary of the parent company	30,000,000	?	21/1/2016	?	21/1/2022
Subsidiary of the parent company	15,000,000	?	20/1/2020	?	20/1/2022
Subsidiary of the parent company	200,000,000	?	12/10/2020	?	12/10/2030
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	200,000,000	?	27/4/2020	?	19/12/2022
Subsidiary of the parent company	50,000,000	?	28/4/2020	?	17/12/2022
Subsidiary of the parent company	300,000,000	?	24/11/2020	?	24/11/2023
Subsidiary of the parent company	1,200,000,000	?	5/11/2020	?	28/10/2023
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	650,000,000	?	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	770,000,000	?	19/2/2020	?	17/2/2023
Subsidiary of the parent company	800,000,000	?	30/4/2020	?	17/2/2023
Subsidiary of the parent company	1,490,000,000	?	21/10/2020	?	20/10/2023
Subsidiary of the parent company	500,000,000	?	24/11/2020	?	24/11/2023
Subsidiary of the parent company	250,000,000	?	13/12/2019	?	13/12/2022
Subsidiary of the parent company	450,000,000	?	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
Subsidiary of the parent company	70,000,000	?	28/4/2020	?	24/12/2022
Subsidiary of the parent company	130,000,000	?	28/4/2020	?	17/12/2022
Subsidiary of the parent company	500,000,000	?	20/11/2020	?	20/11/2023
Subsidiary of the parent company	800,000,000	?	19/2/2020	?	17/2/2023
Subsidiary of the parent company	170,000,000	?	28/2/2020	?	17/2/2023
Subsidiary of the parent company	1,700,000,000	?	20/11/2020	?	20/11/2023
Subsidiary of the parent company	1,800,000,000	?	29/10/2020	?	28/10/2023
Subsidiary of the parent company	1,480,000,000	?	24/11/2020	?	24/11/2023
?	?	?	?	?	?
Total	15,805,000,000	?	?	?	?

(5) Remuneration of key management personnel

The Group and the Company

Item

Item	2020	?	2019
?	?	?	?
Remuneration of key management personnel	56,368,000	?	49,799,000

The remuneration of key management personnel above does not include the one withrespect to 2020 share-based payments scheme.

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6 Receivables from and payables to related parties

Receivables from related parties

The Group

?	2020			?	2019
Item	Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?	?	?	?	?	?	?	?
Accounts receivable	38,773,536	?	-	?	1,960,247	?	-
Prepayments	7,678,237	?	-	?	2,259,308	?	-
Other receivables	14,062,445	?	-	?	603,515	?	-

The Company

???

?	2020			?	2019
Item	Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?	?	?	?	?	?	?	?
Accounts receivable	3,988,518,583	?	14,979,329	?	659,753,039	?	14,979,329
Prepayments	153,768	?	-	?	833,053	?	-
Dividends receivable	460,261,502	?	-	?	941,634,611	?	-
Other receivables	15,724,164,267	?	46,377,509	?	3,889,934,009	?	41,038,073
Other non-current assets	2,606,920,400	?	-	?	156,920,400	?	-

Payables to related parties

The Group

Item

Item	2020	?	2019
?	?	?	?
Accounts payable	108,759,439	?	77,847,042
Advance payments received	6,018,519	?	60,990
Contract liabilities	1,604,187	?	-
Other payables	183,204,239	?	166,424,203

The Company

Item

Item	2020	?	2019
?	?	?	?
Accounts payable	236,990,054	?	1,093,063
Advance payments received	8,735,465	?	2,108,152,470
Other payables	3,051,622,542	?	4,739,212,844
Other non-current liabilities	56,156,661,805	?	33,297,240,830

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:

?	2020	?	2019
?	?	?	?
Procurement of equipment	254,763,625	?	133,794,504

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XI. Share-based payments

At 17 December 2020, the Board of Directors of the Company approved the implementationof share options and restricted share incentive plans. The shares for the share options andrestricted share incentive plans are from the Company’s Renminbi A-share ordinary sharesrepurchased from secondary market. Vesting plans of share options and restricted shareincentive plans are as follows:

(a) Share option incentive plan

The share option incentive plan is classified into initial grant and reserved grant. Theinitial grant date was 21 December 2020, and the implementation was completed on 25December 2020. The actual number of grantees was 1,988, with a number of grants of596,229,700 shares; the number of reserved grants was 33,000,000 shares. The grantdate, grant recipients, and implementation completion date, etc. are to be confirmed.

The share options are exercised in three phases after 24 months from the grant date.The exercise ratios for each phase are 34%, 33%, and 33%, respectively. Thecorresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.

When the Company’s performance meets the corresponding criteria, the proportion ofexercisable rights of the above-mentioned share options is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. In accordance with the plan, the Company will deregister thecurrent exercisable shares of the options obtained by the incentive objects if theexercise criteria stipulated in this plan are not met.

(b) Restricted share incentive plan

The grant date of restricted share incentive plan was 21 December 2020, and theimplementation was completed on 29 December 2020. The actual number of granteeswas 793, with a number of grants of 321,813,800 share.

The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 monthsfrom the grant date, respectively. During the lock-up period, restricted shares grantedto the incentive object under this plan shall not be transferred, used for guarantee ordebt repayment before the lock-up release. Lock-up restricted shares are released inthree phases after 24 months from the grant date. The release ratios for each phaseare 34%, 33%, and 33%, respectively. The corresponding release dates are 2 years, 3years, and 4 years from the grant date. The actual number released shall be based onperformance assessment result for the previous year.

When the Company’s performance meets the corresponding criteria, the releaseproportion of the above-mentioned restricted shares is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. The Company will repurchase the locked restricted shares at thegranted price of the incentive objects if the release criteria stipulated in this plan are notmet, and the incentive object shall not release the restricted shares for the currentperiod.

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The incentive objects involved in this share option and restricted share incentive plans arequalified employees of the Company and its subsidiaries. The Company acts as a settlementcompany, and the Company and its subsidiaries act as service recipients. As at 31December 2020, the total costs recognised by the Group’s equity-settled share-basedpayments in the consolidated financial statement was RMB 17,211,463, and theaccumulated amount of capital reserve paid by equity-settled share-based paymentsamounted to RMB 16,009,935. In the Company’s financial statements, the Companyrecognised its long-term equity investment of RMB 13,407,214 in its subsidiary at the fairvalue of the equity instruments at the grant date, and recognised expenses arising fromshare-based payments of RMB 3,804,249, as well as a capital reserve of RMB 17,211,463.

As at 31 December 2020, the company received a total of RMB 875,333,536 in restrictedshare subscription funds from restricted share incentive objects. Based on relevantprovisions of the restricted share incentive plan for the service period, if the granted objectresigns before the release date, the Company will repurchase the restricted shares that havenot been released at the subscription price of the granted object. Please refer to Note V. 28

(1) for the repurchased obligation set out in other payables.

(1) Method for determining the fair value of equity instruments at the grant date

Share options:

The fair value of equity instruments at the grant date is determined based on thedifference between the assessed fair value of the exercisable share options at eachgrant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share andRMB 2.09/share, respectively).

Restricted shares:

The fair value of equity instruments at the grant date is determined based on thedifference between the fair value of shares at the grant date and the subscriptionprice at RMB 2.68/share.

(2) Basis of determining the number of equity instruments expected to vest

At each balance sheet date during the vesting period, the best estimation is madeaccording to the latest information, such as the number of employees who aregranted options and the completion of performance indicators, and the number ofequity instruments expected to vest is revised accordingly. On the vesting date, theestimated number is equal to the number of equity instruments that are ultimatelyvested.

XII. 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.

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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 2019. 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 2020 and 31 December 2019, the Group’s asset-liability ratios are asfollows:

?	2020	?	2019
?	?	?	?
Asset-liability ratio	59.13%	?	58.56%

Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.

XIII. Commitments and contingencies

1 Significant commitments

(1) Capital commitments

The Group

The Group	2020	?	2019
?	?	?	?
Contracts entered into but not performed or partially performed	58,885,156,561	?	59,347,872,614
Contracts authorised but not entered into	74,192,859,943	?	102,974,551,619
?	?	?	?
Total	133,078,016,504	?	162,322,424,233

The Group’s contracts authorised but not entered into mainly included the fixed assets thatChongqing BOE Display, Fuzhou BOE Display, Health Investment and Wuhan BOE plannedto purchase in subsequent years and project equipment that the Group planned to purchasein subsequent years.

The Company

The Company	2020	?	2019
?	?	?	?
Contracts entered into but not performed or partially performed	39,391,365,336	?	36,732,291,172

The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Chongqing BOE Display, Fuzhou BOE Display andHealth Investment.

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(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	2020	?	2019
?	?	?	?
Within 1 year (inclusive)	76,151,901	?	56,919,248
After 1 year but within 2 years (inclusive)	38,471,518	?	34,440,482
After 2 years but within 3 years (inclusive)	21,725,645	?	31,151,809
After 3 years	33,043,339	?	61,129,358
?	?	?	?
Total	169,392,403	?	183,640,897

As at 31 December 2020, the Company had no significant operating lease commitments.

2 Guarantee

(1) The Group as the guarantor

As at 31 December 2020, the Group did not have guarantees provided for externalenterprises.

(2) The Company as the guarantor

At 31 December 2020, Chengdu Optoelectronics pledged its land use right with carryingamount of RMB 41,177,526, construction in progress with carrying amount of RMB1,221,864,173, machinery and equipment with carrying amount of RMB 32,627,157,411 andplants and buildings with carrying amount of RMB 2,432,658,572 as collaterals to obtainlong-term loans of USD 901,460,000 and RMB 15,717,800,000. The Company providesjoint-liability guarantee for the above loans. In addition, the Company provides joint-liabilityguarantee for the letters of credit issued but not accepted of USD 449,008 and JPY27,540,000 and the long-term letter of guarantee issued but not accepted of RMB1,118,500,000.

At 31 December 2020, Yuansheng Optoelectronics pledged its plants and buildings withcarrying amount of RMB 2,184,506,985, machinery and equipment with carrying amount ofRMB 9,074,094,053 and land use right with carrying amount of RMB 45,644,499 ascollaterals to obtain long-term loans of RMB 1,922,730,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2020, Chongqing BOE Display pledged its land use right with carryingamount of RMB 166,784,696 as collaterals to obtain long-term loans of USD 124,000,000and RMB 1,000,000. The Company provides joint-liability guarantee for the above loans. Inaddition, the Company provides joint-liability guarantee for the short-term loan of USD170,000,000 and the letters of credit issued but not accepted of USD 301,146,607 and JPY18,938,564,000.

At 31 December 2020, Hefei Xinsheng pledged its land use right with carrying amount ofRMB 113,894,779, plants and buildings with carrying amount of RMB 3,016,644,938 andequipment with carrying amount of RMB 3,528,523,204 as collaterals to obtain long-termloans of USD 268,120,000. The Company provides joint-liability guarantee for the aboveloans.

Page 161

Page 162

At 31 December 2020, Chongqing BOE pledged its land use right with carrying amount ofRMB 132,311,810 and machinery and equipment and buildings with carrying amount of RMB10,742,935,343 as collaterals to obtain long-term loans of USD 562,240,000 and RMB255,600,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2020, Fuzhou BOE pledged its land use right with carrying amount of RMB207,436,937, plants and buildings with carrying amount of RMB 3,069,470,678 andmachinery and equipment with carrying amount of RMB 10,668,568,525 as collaterals toobtain long-term loans of USD 729,000,000 and RMB 3,450,060,000. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the long-term letter of guarantee issued but not accepted of RMB720,000,000.

At 31 December 2020, Hefei Display Technology pledged its land use right with carryingamount of RMB 286,639,674, buildings with carrying amount of RMB 3,919,531,110 andmachinery and equipment with carrying amount of RMB 18,739,242,411 as collaterals toobtain long-term loans of USD 1,342,090,000 and RMB 6,118,214,080. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the letters of credit issued but not accepted of JPY 899,600,000.

At 31 December 2020, Mianyang BOE pledged its land use right with carrying amount ofRMB 384,360,333, buildings with carrying amount of RMB 111,133,982, machinery andequipment with carrying amount of RMB 23,758,696,685 and construction in progress withcarrying amount of RMB 9,712,245,614 as collaterals to obtain long-term loans of USD802,000,000 and RMB 13,182,730,000. The Company provides joint-liability guarantee forthe above loans. In addition, the Company provides joint-liability guarantee for the letters ofcredit issued but not accepted of USD 22,911,342 and JPY 3,424,770,000 and the long-termletter of guarantee issued but not accepted of RMB 1,690,000,000.

At 31 December 2020, Wuhan BOE pledged its machinery and equipment with carryingamount of RMB 18,290,634,775, land use right with carrying amount of RMB 254,850,879and construction in progress with carrying amount of RMB 10,092,665,066 as collaterals toobtain long-term loans of USD 1,158,000,000 and RMB 7,673,000,000. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the letters of credit issued but not accepted of USD 2,440,000 and JPY3,340,856,000.

At 31 December 2020, Chengdu Hospital obtain long-term loans of RMB 999,092,146. TheCompany provides joint-liability guarantee for the above loans.

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XIV. Segment reporting

(1) Segment reporting considerations

The Group management reviews the operation performance and allocates resourcesaccording to the business segments below.

(a) Display business — The display business integrates design and manufacturing of

display devices and strives to offer TFT-LCD, AMOLED, Microdisplay and otherintelligent interface devices, which develops a platform that integrates panels, modules,whole widget and services. This business focuses on providing high-qualitysmartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),tiled display screens, industrial control, wearable devices, VR/AR devices, electronictags, white goods, healthcare, mobile payment, interactive whiteboards and otherintelligent display devices for customers. Besides, this business provides the mostcompetitive whole-widget smart manufacturing services for 3C display, smart IoTs,system platform and other fields.

(b) Smart systems innovation business — The smart systems innovation business

integrates designs of system solutions. Supported by AI and big data technologies, thisbusiness focuses on soft and hard products and services and offers integrated IoTsolutions of smart government affairs, urban beautification, smart transportation, smartfinance, smart education, smart park and smart energy.

business provides professional healthcare services and features the innovativeintegration of medical and engineering by integrating technology and medical science.Adhering to people-centred thought, this business focuses on family, community andhospital and emphasizes developing four core businesses, such as healthmanagement, health technology, digital hospital and technology services. It strives tocreate interconnection among testing equipment, medical personnel and customersthrough healthcare IoT platform and build an intelligent health management ecosystemto provide customers with one-stop health services of "prevention-diagnosis andtreatment-health care”.

(d) Sensor and application solutions business — The sensor and application solutions

business integrates design and manufacturing of B2B system solutions. This businessfocuses on medical detection, household detection, communication and transportation,smart homes and other fields to provide customers with integrated design andmanufacturing services of sensor devices; besides, this business provides sensorsystem solutions of medical imaging, biological detection, smart screens, microwavecommunication, fingerprint identification and the like, with products including flat panelX-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identificationsystems, etc.

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(e) Mini-LED business — The Mini-LED business integrates design and manufacturing of

devices and provides Mini-LED backlight products with strong reliability and highdynamic range that allow precisely brightness adjustment for smartphones, tablet PCs,laptops, monitors, TVs and other products; besides, it provides Mini/Micro-LED displayproducts with high brightness, strong reliability and high dynamic range for use inoutdoor display, commercial display and other scenarios.

(f) 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 display business, smart systems innovation business, smart medicine &engineering integration business, sensor and application solutions business, Mini-LEDbusiness and other businesses. As these business segments manufacture anddistribute different products, apply different manufacturing processes and specify ingross profit, these business segments are managed independently. The managementevaluates the performance and allocates resources according to the profit of eachbusiness segment and does not take financing cost and investment income intoaccount.

(2) Accounting policies for the measurements of reportable segments

For the purposes of assessing segment performance, the Group’s management regularlyreviews the revenue and expenses attributable to each reportable segment. Inter-segmentsales are determined with reference to prices charged to external parties for similar orders.

Page 165

2020

Display business

Smart systems innovation business

Smart medicine & engineering integration business

Sensor and application solutions business

Mini-LED business

Others

Elimination

Total

Operating income

131,970,602,256

1,328,060,494

1,522,460,282

119,817,921

7,372,351,461

(6,760,722,685)

135,552,569,729

Operating costs

107,769,219,236

981,563,055

724,268,025

75,405,672

2,213,785,494

(2,941,118,726)

108,823,122,756

2019

Display business

Smart systems innovation business

Smart medicine & engineering integration business

Sensor and application solutions business

Mini-LED business

Others

Elimination

Total

Operating income

113,741,071,151

821,226,259

1,357,484,752

62,748,635

7,320,141,513

(7,243,082,146)

116,059,590,164

Operating costs

98,329,154,262

498,624,217

668,875,829

30,963,371

1,681,836,505

(2,763,184,888)

98,446,269,296

The Company develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities ofeach reportable segment respectively by business. Besides, the Group restates comparative information in 2019 according to segmentreporting in 2020.

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(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
?	2020	?	2019
?	?	?	?
Chinese mainland	65,241,679,286	?	59,444,025,767
Other Asian countries and regions	54,895,384,319	?	45,030,859,656
Europe	4,804,966,123	?	4,511,337,220
America	10,316,934,261	?	6,911,922,720
Other regions	293,605,740	?	161,444,801
?	?	?	?
Total	135,552,569,729	?	116,059,590,164

(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 the Chinese mainland.

(4) Major customers

Operating income of display business from which is over 10% of the Group’s total operatingincome ended up with 2 customers (2019: 2 customers). The operating income from thesecustomers represented RMB 35,420,533,749 (2019: RMB 30,980,334,746), which wasapproximately 26% (2019: 27%) of the Group’s total operating income.

XV. Notes to the Company’s financial statements

1 Cash at bank and on hand

???

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
USD	5	?	6.5249	?	31	?	5	?	6.9762	?	35
HKD	165	?	0.8416	?	139	?	165	?	0.8958	?	148
JPY	51,325	?	0.0632	?	3,244	?	51,325	?	0.0641	?	3,290
KRW	420,000	?	0.0060	?	2,520	?	420,000	?	0.0060	?	2,520
Other foreign currencies	?	?	?	?	16,662	?	?	?	?	?	16,943
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	22,596	?	?	?	?	?	22,936
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	2,694,966,600	?	?	?	?	?	1,355,519,593
USD	257,341,260	?	6.5249	?	1,679,125,986	?	333,055,313	?	6.9762	?	2,323,460,475
HKD	1,641,906	?	0.8416	?	1,381,828	?	1,972,588	?	0.8958	?	1,767,044
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	4,375,474,414	?	?	?	?	?	3,680,747,112
?	?	?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	4,375,497,010	?	?	?	?	?	3,680,770,048

Including: Total overseas deposits were equivalent to RMB 150,742 (2019: RMB 161,168).

Page 167

2 Accounts receivable

(1) The Company’s accounts receivable by customer type:

?	31 December 2020	?	31 December 2019
?	?	?	?
Amounts due from subsidiaries	3,988,518,583	?	659,753,039
Amounts due from other customers	5,995,278	?	7,044,176
?	?	?	?
Sub-total	3,994,513,861	?	666,797,215
?	?	?	?
Less: Provision for bad and doubtful debts	20,301,553	?	20,264,100
?	?	?	?
Total	3,974,212,308	?	646,533,115

(2) The ageing analysis of accounts receivable is as follows:

??Ageing

Ageing	2020	?	2019
?	?	?	?
Within 1 year (inclusive)	3,813,737,996	?	646,534,878
Over 1 year but within 2 years (inclusive)	163,379,898	?	2,866,370
Over 2 years but within 3 years (inclusive)	-	?	-
Over 3 years	17,395,967	?	17,395,967
?	?	?	?
Sub-total	3,994,513,861	?	666,797,215
?	?	?	?
Less: Provision for bad and doubtful debts	20,301,553	?	20,264,100
?	?	?	?
Total	3,974,212,308	?	646,533,115

The ageing is counted starting from the date when accounts receivable are recognised.

(3) Accounts receivable by provisioning method

???

?	2020
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	5,283,008	?	0%	?	5,283,008	?	100%	?	-
- Customers with low credit risk	3,988,518,583	?	100%	?	14,979,329	?	0%	?	3,973,539,254
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	712,270	?	0%	?	39,216	?	6%	?	673,054
?	?	?	?	?	?	?	?	?	?
Total	3,994,513,861	?	100%	?	20,301,553	?	1%	?	3,974,212,308

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?	2019
?	Book value			?	Provision for impairment			?	?
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	?	0%	?	1,763	?	0%	?	1,163,496
?	?	?	?	?	?	?	?	?	?
Total	666,797,215	?	100%	?	20,264,100	?	3%	?	646,533,115

(4) Additions and recoveries of provision for bad and doubtful debts during the year:

?	2020	?	2019
?	?	?	?
Balance at the beginning of the year	20,264,100	?	2,889,866
Charge during the year	37,453	?	17,416,444
Written-off during the year	-	?	42,210
?	?	?	?
Balance at the end of the year	20,301,553	?	20,264,100

For the year ended 31 December 2020, 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 3,706,332,124,amounting to 93% 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 2020	?	31 December 2019
?	?	?	?	?
Dividends receivable	(1)	460,261,502	?	941,634,611
Others	(2)	15,885,213,081	?	3,885,763,483
?	?	?	?	?
Total	?	16,345,474,583	?	4,827,398,094

Page 169

(1) Dividends receivable

?	31 December 2020	?	31 December 2019
?	?	?	?
Yinghe Century	-	?	572,694,778
Hefei BOE	-	?	350,000,000
Beijing BOE Land Co., Ltd.	-	?	18,939,833
Chongqing BOE Optoelectronics Technology Co., Ltd.	400,000,000	?	-
Beijing Electronics Zone Investment and Development Co., Ltd.	1,842,137	?	-
BOE (Korea) Co., Ltd.	6,125,106	?	-
Beijing Matsushita Colour Innovation Co., Ltd.	52,294,259	?	-
?	?	?	?
Total	460,261,502	?	941,634,611

(2) Others

(a) The Company’s other receivables by customer type:

Customer type

Customer type	31 December 2020	?	31 December 2019
?	?	?	?
Amounts due from subsidiaries	15,710,102,798	?	3,889,330,494
Amounts due from other related parties	14,061,469	?	603,515
Amounts due from other customers	210,988,466	?	28,545,610
?	?	?	?
Sub-total	15,935,152,733	?	3,918,479,619
?	?	?	?
Less: Provision for bad and doubtful debts	49,939,652	?	44,600,216
?	?	?	?
Total	15,885,213,081	?	3,873,879,403

(b) The Company’s other receivables by currency:

???

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	15,935,152,733	?	?	?	?	?	3,930,341,042
HKD	-	?	-	?	-	?	25,293	?	0.8958	?	22,657
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	15,935,152,733	?	?	?	?	?	3,930,363,699
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	49,939,652	?	?	?	?	?	44,600,216
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	15,885,213,081	?	?	?	?	?	3,885,763,483

Page 170

?	2020	?	2019
?	?	?	?
Within 1 year (inclusive)	12,252,487,143	?	3,734,855,375
Over 1 year but within 2 years (inclusive)	3,610,709,401	?	59,484,488
Over 2 years but within 3 years (inclusive)	19,445,996	?	56,743,629
Over 3 years	52,510,193	?	79,280,207
?	?	?	?
Sub-total	15,935,152,733	?	3,930,363,699
?	?	?	?
Less: Provision for bad and doubtful debts	49,939,652	?	44,600,216
?	?	?	?
Total	15,885,213,081	?	3,885,763,483

The ageing is counted starting from the date when other receivables are recognised.

(3) Other receivables by provisioning method

???

?	2020
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Individual assessment	49,939,652	?	0%	?	49,939,652	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	15,885,213,081	?	100%	?	-	?	0%	?	15,885,213,081
?	?	?	?	?	?	?	?	?	?
Total	15,935,152,733	?	100%	?	49,939,652	?	0%?	?	15,885,213,081

?	2019
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Individual assessment	44,600,216	?	1%	?	44,600,216	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	3,873,879,403	?	99%	?	-	?	0%	?	3,885,763,483
?	?	?	?	?	?	?	?	?	?
Total	3,918,479,619	?	100%	?	44,600,216	?	1%?	?	3,885,763,483

(e) Movements of provisions for bad and doubtful debts

?	2020	?	2019
?	?	?	?
Balance at the beginning of the year	44,600,216	?	-
Charge for the year	5,339,436	?	45,142,306
Written-off during the year	-	?	542,090
?	?	?	?
Balance at the end of the year	49,939,652	?	44,600,216

Page 171

(d) Other receivables categorised by nature

Nature of other receivables	2020	?	2019
?	?	?	?
Transaction amount	15,844,170,864	?	3,889,330,494
Others	90,981,869	?	41,033,205
?	?	?	?
Sub-total	15,935,152,733	?	3,930,363,699
?	?	?	?
Less: Provision for bad and doubtful debts	49,939,652	?	44,600,216
?	?	?	?
Total	15,885,213,081	?	3,885,763,483

(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 14,636,627,155 in total, most of which are borrowings. No provisionis made for bad and doubtful debts after assessment.

4 Other current assets

?	2020	?	2019
?	?	?	?
VAT on tax credits	45,621,676	?	17,011,521
Others	132,140,042	?	92,486,376
?	?	?	?
Total	177,761,718	?	109,497,897

5 Long-term equity investments

(1) The Company’s long-term equity investments by category:

???

?	2020	?	2019
?	?	?	?
Investments in subsidiaries	179,426,966,866	?	157,203,548,708
Investments in associates and joint ventures	2,800,090,342	?	2,278,316,052
?	?	?	?
Sub-total	182,227,057,208	?	159,481,864,760
?	?	?	?
Less: Provision for impairment	92,000,000	?	92,000,000
?	?	?	?
Total	182,135,057,208	?	159,389,864,760

In previous year, the Company made provision for impairment of investment losses in itssubsidiaries, Special Display and Vacuum Technology, which amounted to RMB 60,000,000and RMB 32,000,000 respectively.

Page 172

(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
?	?	?	Increase in investments	?	Share-based payments	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?	?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	4,172,288,084	?	-	?	685,343	?	-	?	4,172,973,427	?	-	?	-
Chengdu BOE Optoelectronics Technology Co., Ltd.	22,703,149,991	?	2,300,000,000	?	1,344,328	?	-	?	25,004,494,319	?	-	?	-
Hefei BOE Optoelectronics Technology Co., Ltd.	9,000,000,000	?	-	?	846,416	?	-	?	9,000,846,416	?	-	?	-
Beijing BOE Display Technology Co., Ltd.	17,418,713,599	?	-	?	2,628,382	?	-	?	17,421,341,981	?	-	?	-
Hefei Xinsheng Optoelectronics Technology Co., Ltd.	20,082,979,185	?	-	?	1,039,425	?	-	?	20,084,018,610	?	-	?	-
Ordos Yuansheng Optoelectronics Co., Ltd.	11,804,000,000	?	-	?	123,592	?	-	?	11,804,123,592	?	-	?	-
Chongqing BOE Optoelectronics Technology Co., Ltd.	19,565,354,599	?	-	?	511,822	?	-	?	19,565,866,421	?	-	?	-
Fuzhou BOE Optoelectronics Technology Co., Ltd.	14,300,042,079	?	-	?	560,840	?	-	?	14,300,602,919	?	-	?	-
Beijing BOE Vision Electronic Technology Co., Ltd.	3,865,344,500	?	228,155,500	?	36,288	?	-	?	4,093,536,288	?	-	?	-
Beijing BOE Vacuum Electronics Co., Ltd.	19,250,000	?	-	?	8,410	?	-	?	19,258,410	?	-	?	-
Beijing BOE Vacuum Technology Co., Ltd.	32,000,000	?	-	?	-	?	-	?	32,000,000	?	32,000,000	?	32,000,000
Beijing BOE Special Display Technology Co., Ltd.	100,000,000	?	-	?	113,695	?	-	?	100,113,695	?	60,000,000	?	60,000,000
Beijing Yinghe Century Co., Ltd.	333,037,433	?	-	?	237,796	?	-	?	333,275,229	?	-	?	-
BOE Optical Science and technology Co., Ltd.	658,961,914	?	-	?	80,760	?	-	?	659,042,674	?	-	?	-
BBOE Hyundai LCD Inc.	31,038,525	?	-	?	143,435	?	-	?	31,181,960	?	-	?	-
BOE (Hebei) Mobile Technology Co., Ltd.	1,353,651,020	?	-	?	40,543	?	-	?	1,353,691,563	?	-	?	-
Beijing BOE Multimedia Technology Co., Ltd.	400,000,000	?	-	?	-	?	-	?	400,000,000	?	-	?	-
Beijing BOE Energy Technology Co., Ltd.	850,000,000	?	-	?	110,069	?	-	?	850,110,069	?	-	?	-
Beijing BOE Life Technology Co., Ltd.	10,000,000	?	-	?	-	?	-	?	10,000,000	?	-	?	-
Beijing Zhongxiangying Technologies Co., Ltd.	10,000,000	?	40,000,000	?	14,864	?	-	?	50,014,864	?	-	?	-
BOE Semi-conductor Co., Ltd.	9,450,000	?	-	?	-	?	-	?	9,450,000	?	-	?	-
BOE Optoelectronics Holding Co., Ltd.	2,768,662,024	?	443,299,514	?	-	?	-	?	3,211,961,538	?	-	?	-
Beijing Asahi Electronic Materials Co., Ltd.	30,888,470	?	-	?	-	?	(30,888,470)	?	-	?	-	?	-
BOE Healthcare Investment & Management Co., Ltd.	2,953,154,069	?	3,140,000,000	?	13,515	?	-	?	6,093,167,584	?	-	?	-
Hefei BOE Display Technology Co., Ltd.	1,998,765,323	?	-	?	573,616	?	-	?	1,999,338,939	?	-	?	-
Beijing BOE Technology Development Co., Ltd.	1,000,000	?	-	?	18,591	?	-	?	1,018,591	?	-	?	-
BOE Wisdom IOT Technology Co., Ltd.	90,670,000	?	51,330,000	?	344,796	?	-	?	142,344,796	?	-	?	-
Hefei BOE Zhuoyin Technology Co., Ltd.	600,000,000	?	-	?	66,764	?	-	?	600,066,764	?	-	?	-
Beijing BOE Land Co., Ltd.	7,731,474	?	-	?	21,499	?	-	?	7,752,973	?	-	?	-
Beijing BOE Sales Co., Ltd.	30,500,000	?	-	?	13,199	?	-	?	30,513,199	?	-	?	-
BOE KOREA Co., Ltd.	788,450	?	-	?	84,867	?	-	?	873,317	?	-	?	-
Kunming BOE Display Technology Co., Ltd.	670,000,000	?	620,830,000	?	88,433	?	-	?	1,290,918,433	?	-	?	-
Mianyang BOE Optoelectronics Technology Co., Ltd.	14,696,980,083	?	1,280,000,000	?	380,832	?	-	?	15,977,360,915	?	-	?	-
Beijing BOE Sensing Technology Co., Ltd.	50,000,000	?	-	?	348,624	?	-	?	50,348,624	?	-	?	-
Hunan BOE Yiyun Science & Technology Co., Ltd.	90,000,000	?	100,000,000	?	-	?	(190,000,000)	?	-	?	-	?	-
Wuhan BOE Optoelectronics Technology Co., Ltd.	4,164,560,516	?	1,833,990,000	?	332,380	?	-	?	5,998,882,896	?	-	?	-
Chongqing BOE Display Technology Co., Ltd.	2,308,857,370	?	1,649,934,000	?	190,627	?	-	?	3,958,981,997	?	-	?	-
Fuzhou BOE Display Technology Co., Ltd.	21,730,000	?	-	?	18,591	?	-	?	21,748,591	?	-	?	-
Beijing Matsushita Colour Innovation Co., Ltd.	-	?	-	?	64,903	?	-	?	64,903	?	-	?	-
BOE Innovation Investment Co., Ltd.	-	?	440,000,000	?	-	?	-	?	440,000,000	?	-	?	-
Hefei BOE Xingyu Technology Co., Ltd.	-	?	219,139,000	?	58,471	?	-	?	219,197,471	?	-	?	-
BOE Education Technology Co., Ltd.	-	?	25,000,000	?	73,981	?	-	?	25,073,981	?	-	?	-
Dongfang Chengqi (Beijing) Business Technology Co., Ltd.	-	?	8,000,000	?	-	?	-	?	8,000,000	?	-	?	-
BOE Smart Technology Co., Ltd.	-	?	1,440,000,000	?	-	?	-	?	1,440,000,000	?	-	?	-
Nanjing CEC Panda FPD Technology Co., Ltd.	-	?	5,591,221,400	?	-	?	-	?	5,591,221,400	?	-	?	-
Chengdu CEC Panda Display Technology Co., Ltd.	-	?	3,020,000,000	?	-	?	-	?	3,020,000,000	?	-	?	-
Others*	-	?	-	?	2,187,517	?	-	?	2,187,517	?	-	?	-
?	?	?	?	?	?	?	?	?	?	?	?	?	?
Total	157,203,548,708	?	22,430,899,414	?	13,407,214	?	(220,888,470)	?	179,426,966,866	?	92,000,000	?	92,000,000

*Others are the equity incentive funds paid for subsidiaries of the subsidiaries of BOE Groupto be accrued.

For information about the major subsidiaries of the Company, refer to Note VII. 1.

Page 173

(3) Investments in associates:

?	?	?	Movements during the year											?	?	?	?
Investee	Balance at the beginning of the year	?	Increase in investments	?	Decrease in investments	?	Investment income under equity method	?	Other comprehensive income	?	Other equity movements	?	Declared distribution of cash dividends or profits	?	Balance at the end of the year	?	Balance of provision for impairment at the end of the year
?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?
Beijing Nissin Electronics Precision Component Co., Ltd.	483,248	?	-	?	-	?	(219,390)	?	-	?	-	?	-	?	263,858	?	-
Beijing Nittan Electronic Co., Ltd.	64,808,755	?	-	?	-	?	8,588,066	?	-	?	-	?	(2,000,000)	?	71,396,821	?	-
Erdos BOE Energy Investment Co., Ltd.	9,348,226	?	-	?	-	?	(1,185,089)	?	-	?	-	?	-	?	8,163,137	?	-
Beijing Infi-Hailin Venture Investment Co., Ltd.	663,215	?	-	?	-	?	503,309	?	-	?	-	?	-	?	1,166,524	?	-
Beijing Infi-Hailin Venture Investment (Limited Partnership)	74,384,952	?	-	?	(79,000,000)	?	(210,320)	?	5,702,455	?	(877,087)	?	-	?	-	?	-
TPV Display Technology (China) Limited	24,545,664	?	-	?	-	?	282,600	?	-	?	-	?	-	?	24,828,264	?	-
Beijing Xindongneng Investment Fund (Limited Partnership)	1,944,514,849	?	-	?	(427,412,416)	?	410,089,641	?	130,950,251	?	-	?	-	?	2,058,142,325	?	-
Beijing Xindongneng Investment Management Co., Ltd.	7,410,061	?	-	?	-	?	2,511,565	?	-	?	-	?	(2,000,000)	?	7,921,626	?	-
Shenzhen Yunyinggu Technology Co., Ltd.	12,715,084	?	-	?	-	?	(5,368,560)	?	60,150	?	14,504,213	?	-	?	21,910,887	?	-
Beijing Xloong Technologies Co., Ltd.	22,237,044	?	-	?	-	?	(2,470,104)	?	-	?	-	?	-	?	19,766,940	?	-
Beijing Innovation Industry Investment Co., Ltd.	100,363,345	?	100,000,000	?	-	?	3,699,909	?	-	?	-	?	-	?	204,063,254	?	-
Beijing Electric Control Industry Investment Co., Ltd.	16,841,609	?	183,000,000	?	-	?	679,994	?	(319,767)	?	81,278	?	-	?	200,283,114	?	-
Hunan BOE Yiyun Science & Technology Co., Ltd.	-	?	190,000,000	?	-	?	(27,412,408)	?	-	?	19,596,000	?	-	?	182,183,592	?	-
?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?	?
Total	2,278,316,052	?	473,000,000	?	(506,412,416)	?	389,489,213	?	136,393,089	?	33,304,404	?	(4,000,000)	?	2,800,090,342	?	-

Page 174

6 Intangible assets

?	Land use rights	?	Patent and proprietary technology	?	Computer software	?	Others	?	Total
?	?	?	?	?	?	?	?	?	?
Book value	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	794,939,047	?	1,102,554,707	?	299,265,973	?	79,529,998	?	2,276,289,725
Additions during the year		?		?		?		?
- Purchases	-	?	-	?	11,893,193	?	4,797,580	?	16,690,773
- Transfers from construction in progress	-	?	-	?	62,998,261	?	-	?	62,998,261
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	794,939,047	?	1,102,554,707	?	374,157,427	?	84,327,578	?	2,355,978,759
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	52,495,508	?	595,845,951	?	133,692,030	?	623,972	?	782,657,461
Charge during the year	27,738,406	?	100,343,266	?	64,907,673	?	262,126	?	193,251,471
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	80,233,914	?	696,189,217	?	198,599,703	?	886,098	?	975,908,932
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?	?	?	?
At the end of the year	714,705,133	?	406,365,490	?	175,557,724	?	83,441,480	?	1,380,069,827
?	?	?	?	?	?	?	?	?	?
At the beginning of the year	742,443,539	?	506,708,756	?	165,573,943	?	78,906,026	?	1,493,632,264

7 Deferred tax assets/deferred tax liabilities

???

?	31 December 2020			?	31 December 2019
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	185,358,501	?	27,803,775	?	179,981,612	?	26,997,242
Changes in fair value of investments in other equity instruments	121,789,193	?	18,268,379	?	135,444,338	?	20,316,651
Depreciation of fixed assets	145,995,720	?	21,899,358	?	111,653,214	?	16,747,982
Advance payments received	-	?	-	?	1,906,248,410	?	285,937,261
Others	37,699,653	?	5,654,948	?	155,622,634	?	23,343,394
?	?	?	?	?	?	?	?
Sub-total	490,843,067	?	73,626,460	?	2,488,950,208	?	373,342,530
?	?	?	?	?	?	?	?
Amount offset		?	(73,626,460)	?	?	?	(13,074,064)
?	?	?	?	?	?	?	?
Balance after offsetting		?	-	?	?	?	360,268,466
?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Royalty fees due from subsidiaries	(2,975,000,000)	?	(446,250,000)	?	-	?	-
Others	(87,160,432)	?	(13,074,064)	?	(87,160,432)	?	(13,074,064)
?	?	?	?	?	?	?	?
Sub-total	(3,062,160,432)	?	(459,324,064)	?	(87,160,432)	?	(13,074,064)
?	?	?	?	?	?	?	?
Amount offset	?	?	73,626,460	?	?	?	13,074,064
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(385,697,604)	?	?	?	-

Page 175

8 Advance payments received

Item	31 December 2020	?	1 January 2020	?	31 December 2019
?	?	?	?	?	?
Advances from related parties	8,735,465	?	110,018	?	2,108,152,470
Advances from third parties	9,550,993	?	9,366,525	?	9,416,525
?	?	?	?	?	?
Total	18,286,458	?	9,476,543	?	2,117,568,995

9 Employee benefits payable

(1) Employee benefits payable:

???

?	Note	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	241,384,459	?	1,190,821,753	?	(924,181,005)	?	508,025,207
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	10,821,616	?	66,029,897	?	(68,816,567)	?	8,034,946
Termination benefits	?	-	?	6,942,728	?	(6,942,728)	?	-
?	?	?	?	?	?	?	?	?
Total	?	252,206,075	?	1,263,794,378	?	(999,940,300)	?	516,060,153

???

?	Note	Balance at 1 January 2019	?	Accrued during the year	?	Decreased 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

(2) Short-term employee benefits

???

?	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	188,598,673	?	1,014,874,667	?	(764,036,829)	?	439,436,511
Staff welfare	-	?	45,099,922	?	(45,099,922)	?	-
Social insurance	?	?		?		?
Medical insurance	14,688,541	?	38,992,104	?	(38,858,702)	?	14,821,943
Work-related injury insurance	1,104,889	?	2,639,691	?	(2,669,154)	?	1,075,426
Maternity insurance	1,777,726	?	672,235	?	(1,212,742)	?	1,237,219
Housing fund	3,854,824	?	55,069,148	?	(53,085,430)	?	5,838,542
Labour union fee, staff and workers’ education fee	31,359,806	?	33,473,986	?	(19,218,226)	?	45,615,566
Others	-	?	-	?	-	?	-
?	?	?	?	?	?	?	?
Total	241,384,459	?	1,190,821,753	?	(924,181,005)	?	508,025,207

Page 176

?	Balance at 1 January 2019	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2019
?	?	?	?	?	?	?	?
Salaries, bonuses, 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

(3) Post-employment benefits - defined contribution plans

???

?	Balance at 1 January 2020	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2020
?	?	?	?	?	?	?	?
Basic pension insurance	11,489,403	?	55,939,880	?	(59,412,804)	?	8,016,479
Unemployment insurance	302,098	?	2,775,842	?	(2,706,456)	?	371,484
Annuity	(969,885)	?	7,314,175	?	(6,697,307)	?	(353,017)
?	?	?	?	?	?	?	?
Total	10,821,616	?	66,029,897	?	(68,816,567)	?	8,034,946

???

?	Balance at 1 January 2019	?	Accrued during the year	?	Decreased 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

10 Other payables

?	Note	2020	?	2019
?	?	?	?	?
Dividends payable	?	6,451,171	?	6,451,171
Others	(1)	6,535,467,510	?	5,254,019,803
?	?	?	?	?
Total	?	6,541,918,681	?	5,260,470,974

Page 177

(1) Others

(a) The Company’s other payables by category are as follows:

?	Note	2020	?	2019
?	?	?	?	?
Amounts due to/from subsidiaries	?	3,050,656,626	?	4,739,139,471
Equity acquisition fee	VI. 1	2,236,488,561	?	-
Repurchase obligation of restricted shares	V. 40	875,333,536	?	-
Purchase of projects, equipment and intangible assets	?	257,829,238	?	345,872,758
Others	?	115,159,549	?	169,007,574
?	?	?	?	?
Total	?	6,535,467,510	?	5,254,019,803

(b) The Company’s other payables by currency:

???

?	2020					?	2019
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	5,042,463,687	?	?	?	?	?	2,257,788,363
USD	228,735,332	?	6.5249	?	1,492,475,170	?	414,300,937	?	6.9762	?	2,890,246,197
JPY	8,364,763	?	0.0632	?	528,653	?	157,972,312	?	0.0641	?	10,126,025
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	6,535,467,510	?	?	?	?	?	5,158,160,585

11 Long-term loans

???

?	2020			?	2019
?	?	?	Credited/ collateralised	?	?	?	Credited/ collateralised
?	RMB	?	guaranteed/ pledged	?	RMB	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	46,207,924,194	?	Credited	?	38,801,142,361	?	Credited
Less: Long-term loans due within one year	7,847,210,073	?	Credited	?	5,490,440,787	?	Credited
?	?	?	?	?	?	?	?
Total	38,360,714,121	?	?	?	33,310,701,574	?	?

The interest rate of RMB long-term loans for the Company ranged from 0% to 4.75% in 2020(2019: 0% to 4.75%).

12 Deferred income

??Item

Item	Balance at the beginning of the year	?	Additions during the year	?	Amounts recognised in other income	?	Other changes	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
- related to assets	4,515,402,780	?	1,696,830	?	(903,180,554)	?	(1,696,830)	?	3,612,222,226
- related to income	111,990,476	?	11,567,200	?	(12,437,456)	?	(90,000,000)	?	21,120,220
?	?	?	?	?	?	?	?	?	?
Total	4,627,393,256	?	13,264,030	?	(915,618,010)	?	(91,696,830)	?	3,633,342,446

Page 178

13 Capital reserve

Item	Share premium	?	Other capital reserves	?	Total
?	?	?	?	?	?
Balance at the beginning of the year	37,546,517,053	?	61,522,632	?	37,608,039,685
Add: Other movements in equity of associates	-	?	33,304,404	?	33,304,404
Equity-settled share-based payments	-	?	(945,264,723)	?	(945,264,723)
?	?	?	?	?	?
Balance at the end of the year	37,546,517,053	?	(850,437,687)	?	36,696,079,366

14 Other comprehensive income

??Item

Item	?	?	Movements during the year					?	?
?	Balance at the beginning of the year	?	Before-tax amount	?	Less: Income tax expense	?	Add: Transfer of other comprehensive income to retained earnings	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
Items that will not be reclassified to profit or loss	193,638,576	?	138,168,402	?	2,048,272	?	(239,057,408)	?	90,701,298
Including: Other comprehensive income recognised under equity method	308,766,264	?	136,381,254	?	-	?	(250,925,408)	?	194,222,110
Changes in fair value of investments in other equity instruments	(115,127,688)	?	1,787,148	?	2,048,272	?	11,868,000	?	(103,520,812)
Items that may be reclassified to profit or loss	-	?	11,835	?	-	?	-	?	11,835
?	?	?	?	?	?	?	?	?	?
Total	193,638,576	?	138,180,237	?	2,048,272	?	(239,057,408)	?	90,713,133

15 Retained earnings

Item

Item	2020	?	2019
?	?	?	?
Retained earnings at the beginning of the year (before adjustment)	4,781,488,839	?	Not applicable
Add: Changes in accounting policies	4,805,155,027	?	Not applicable

Retained earnings at the beginning of the year (after adjustment)	9,586,643,866	?	2,609,929,782
Add: Net profits for the year	3,739,191,584	?	3,685,564,456
Less: Appropriation for statutory surplus reserve	373,919,158	?	368,556,446
Interest on holders of other equity instruments	485,925,480	?	56,109,589
Dividends to ordinary shares	695,967,975	?	1,043,951,963
Transfer of other comprehensive income to retained earnings	(215,151,667)	?	45,387,401
Effect of accounting for disposal of subsidiaries to equity method	31,086,473	?	-
?	?	?	?
Retained earnings at the end of the year	11,954,088,031	?	4,781,488,839

Page 179

16 Operating income

?	2020	?	2019
Item	Income	?	Income
?	?	?	?
Principal activities	3,850,224,763	?	4,103,362,231
Other operating activities	691,451,432	?	682,025,488
?	?	?	?
Total	4,541,676,195	?	4,785,387,719

Including: Income related to the new revenue standard	4,418,761,325	?	Not applicable
Revenue related to the lease standard	122,914,870	?	Not applicable

Details of operating income:

?	?	2019
?	?	?
Operating income from principal activities	?	?
- Technology development income	?	4,103,362,231
Other operating income	?	?
- Rental income of investment properties	?	122,723,329
- Others	?	559,302,159
?	?	?
Total	?	4,785,387,719

17 Taxes and surcharges

?	2020	?	2019
?	?	?	?
Property tax	29,195,630	?	33,323,560
Land use tax	2,834,360	?	2,849,332
Stamp duty	7,909,675	?	4,682,297
City maintenance and construction tax	405,990	?	353,192
Education surcharges and local education surcharges	289,993	?	252,276
Others	253,948	?	27,864
?	?	?	?
Total	40,889,596	?	41,488,521

Page 180

18 Research and development expenses

?	2020	?	2019
?	?	?	?
Staff cost	686,052,717	?	544,087,165
Material expenses	70,093,725	?	74,036,997
Depreciation and amortisation	221,602,752	?	242,794,178
Commissioned and cooperative development	533,483,606	?	853,951,463
Others	591,662,325	?	469,881,484
?	?	?	?
Total	2,102,895,125	?	2,184,751,287

19 Financial expenses

???

?	2020	?	2019
?	?	?	?
Interest expenses from loans	970,259,855	?	934,776,554
Interest income from bank deposits	(37,793,976)	?	(41,156,445)
Net exchange (income)/losses	(17,019,010)	?	7,509,490
Other financial expenses	1,091,676	?	2,751,033
?	?	?	?
Total	916,538,545	?	903,880,632

20 Other income

?	2020	?	2019
?	?	?	?
Government grants related to assets	903,180,554	?	901,541,269
Government grants related to income	67,808,613	?	43,858,943
?	?	?	?
Total	970,989,167	?	945,400,212

The amount of government grants received by the Company in 2020 and directly included inother income was RMB 55,371,157.

Page 181

21 Investment income

?	2020	?	2019
?	?	?	?
Income from long-term equity investments accounted for using cost method	1,608,291,389	?	1,889,790,465
Income from long-term equity investments accounted for using equity method	416,901,621	?	244,595,829
Investment income from disposal of long-term equity investments	401,239,648	?	49,028,075
Dividend income from investments in other equity instruments	3,252,444	?	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	3,252,444	?	1,883,379
?	?	?	?
Total	2,429,685,102	?	2,185,769,102

22 Income tax expenses

?	Note	2020	?	2019
?	?	?	?	?
Current tax expense for the period based on tax law and regulations	?	449,586,180	?	313,149,954
Changes in deferred tax assets/liabilities	(1)	(198,212,508)	?	(82,338,912)
?	?	?	?	?
Total	?	251,373,672	?	230,811,042

(1) The analysis of changes in deferred tax assets/liabilities is set out below:

?	2020	?	2019
?	?	?	?
Origination and reversal of temporary differences	(198,212,508)	?	(82,338,912)

(2) Reconciliation between income tax expenses and accounting profit:

??Item

Item	2020	?	2019
?	?	?	?
Profit before taxation	3,990,565,256	?	3,916,375,498
Expected income tax expense at tax rate of 15%	598,584,788	?	587,456,325
Add: Non-deductible expenses	47,469,071	?	5,063,076
Non-taxable income	(304,718,886)	?	(279,640,682)
Tax deduction for R&D activities	(89,961,301)	?	(74,503,110)
Others	-	?	(7,564,567)
?	?	?	?
Income tax expenses	251,373,672	?	230,811,042

Page 182

23 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

?	2020	?	2019
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities:	?	?	?
?	?	?	?
Net profit	3,739,191,584	?	3,685,564,456
Add: Credit losses	5,376,889	?	62,558,750
Impairment losses	-	?	32,000,000
Depreciation of fixed assets and investment properties	135,264,681	?	122,776,599
Amortisation of intangible assets	165,094,127	?	180,015,643
Amortisation of long-term deferred expenses	36,414,535	?	34,805,818
Financial expenses	1,044,078,606	?	996,740,951
Investment income	(2,429,685,102)	?	(2,185,769,102)
Changes in deferred revenue tax assets and liabilities	(196,164,236)	?	(69,473,918)
Increase in gross inventories	(4,686,882)	?	(4,646,260)
(Increase)/Decrease in operating receivables	(1,521,836,219)	?	465,794,325
Decrease in operating payables	(857,601,770)	?	(869,099,802)
?	?	?	?
Net cash inflow from operating activities	115,446,213	?	2,451,267,460

??
??

(2) Details of cash and cash equivalents

?	2020	?	2019
?	?	?	?
Cash on hand	22,596	?	22,936
Bank deposits available on demand	4,360,042,620	?	3,680,747,112
?	?	?	?
Closing balance of cash and cash equivalents	4,360,065,216	?	3,680,770,048

Note: Cash and cash equivalents disclosed above exclude other monetary fund with

restricted usage.

24 Assets with restrictive ownership title

As at 31 December 2020, the Company has no assets with restrictive ownership title.

Page 183

XVI. Extraordinary gains and losses in 2020

?	?	2020	?	2019
?	?	?	?	?
Investment income from disposal of long-term equity investments	?	376,344,290	?	48,846,682
Losses from disposal of non-current assets	?	(2,912,119)	?	(28,506,546)
Government grants recognised through profit or loss (excluding those 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)	?	2,332,107,692	?	2,640,634,861
Gains or losses arising from changes in fair value of financial assets held for trading, and investment income from disposal of financial assets held for trading	?	82,698,484	?	112,668,244
Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis	?	15,447,820	?	1,498,805
Other non-operating income and expenses besides items above	?	65,391,368	?	96,799,305
Other items qualified as extraordinary gain and loss	Note 2	-	?	795,126,980
Less: Tax effect	?	185,966,533	?	285,904,312
?	?	?	?	?
Total	?	2,683,111,002	?	3,381,164,019
?	?	?	?	?
Including: Extraordinary gains affecting net profit of equity shareholders of the Company	?	2,365,173,118	?	3,085,437,188
Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders	?	317,937,884	?	295,726,831

Note 1: Extraordinary gain and loss items listed above are presented in the amount before

taxation.

Note 2: The Company’s capital commitment and conversion obligations to non-controlling

interests of Hefei Xinsheng are included in financial liabilities in accordance with therelevant accounting standards for financial instruments. In 2019, the Companysigned an "Equity Transfer Agreement" with Hefei Heping Investment Co., Ltd.("Hefei Heping") that the Company agreed to receive 15.3846% of equity interest inHefei Xinsheng held by Hefei Heping, after which, Hefei Xinsheng becomes awholly-owned subsidiary of the Company. According to the requirements of theAccounting Standard, the difference of RMB 795,126,980 between the cashpayment and the book value of this financial liability is included in the current profitand loss.

Page 184

XVII. 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	5.15%	?	0.13	?	0.13
Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	2.47%	?	0.06	?	0.06

1 Calculation of earnings per share

(1) Basic earnings per share

For calculation of the basic earnings per share, refer to Note V.58.

(2) Basic earnings per share excluding extraordinary gain and loss

Basic earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average number of ordinary sharesoutstanding:

???

Page 185

2 Calculation of weighted average return on net assets

(1) Weighted average return on net assets

Weighted average return on net assets is calculated as dividing consolidated net profitattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:

?	2020	?	2019
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	4,549,702,472	?	1,862,534,282
Weighted average amount of consolidated net assets	88,422,792,378	?	86,381,158,426
Weighted average return on net assets	5.15%	?	2.16%

Calculation of weighted average amount of consolidated net assets is as follows:

?	2020	?	2019
?	?	?	?
Consolidated net assets at the beginning of the year	87,044,972,202	?	85,849,388,234
Effect of consolidated net profit attributable to ordinary shareholders of the Company	2,274,851,236	?	931,267,141
Effect of repurchase of treasury shares	(666,258,231)	?	-
Distribution of profits to ordinary shareholders	(347,983,988)	?	(521,975,982)
Effect of change in shareholding ratio of subsidiaries	24,957,407	?	4,049,092
Effect of movements in amounts attributable to ordinary shareholders of the Company	92,253,752	?	183,465,298
?	?	?	?
Weighted average amount of consolidated net assets	88,422,792,378	?	86,446,193,783

(2) Weighted average return on net assets excluding extraordinary gain and loss

Weighted average return on net assets excluding extraordinary gain and loss is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:

?	2020	?	2019
?	?	?	?
Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	2,184,529,354	?	(1,222,902,906)
Weighted average amount of consolidated net assets	88,422,792,378	?	86,446,193,783
Weighted average return on net assets excluding extraordinary gain and loss	2.47%	?	(1.41%)

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