京东方A(000725)_公司公告_京东方Ｂ：2021年年度审计报告（英文版）新浪财经

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京东方Ｂ：2021年年度审计报告（英文版）（下载公告）

公告日期:2022-03-31

BOE Technology Group Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTS FOR THE YEAR 1 JANUARY

2021 TO 31 DECEMBER 2021IF 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2204172号

The Shareholders of BOE Technology Group Co., Ltd.:

Opinion

We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.(“BOE”), which comprise the consolidated and company balance sheets as at 31 December2021, the consolidated and company income statements, the consolidated and companycash flow statements, the consolidated and company statements of changes in shareholders’equity for the year then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company financial position of BOE as at 31 December 2021, and theconsolidated and company 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2204172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 recognized when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be 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2204172号

Key Audit Matters (continued)

Revenue recognition (continued)
Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 44 to to the consolidated financial statements.
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2204172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” 15, 16.
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 2021, the book value of fixed assets and construction in progress amounted to RMB 258.816 billion. The judgement made by the management on the following aspects will affect the book value of fixed assets and construction in progress, including: ? Determine which type of expenditures are qualified for 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 capitalization conditions; check the commissioning expenses with relevant supporting documents on a sampling basis; ? On the basis of sampling, assess the timing for transferring construction in progress to fixed assets, through the inspection of commissioning situation and the documents for transferring construction in progress to fixed assets; ? Based on our understanding of industry practices and actual operating conditions of assets, we evaluate the management's estimation of the useful life and residual value of fixed assets.

Page 5 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2204172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” 15, 17.
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 2021, the book value of fixed assets and intangible assets amounted to RMB 237.905 billion, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 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 evaluate impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, 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2204172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” 15, 17.
The Key Audit Matter	How the matter was addressed in our audit
We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias.	Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; 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2204172号

Other Information

BOE’s management is responsible for the other information. The other information comprisesall the information included in 2021 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 BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing BOE’s financial reportingprocess.

Page 8 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2204172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, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

? Obtain an understanding of internal control relevant to the audit in order to design audit

procedures 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 uncertaintyexists related to events or conditions that may cast significant doubt on BOE’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause BOE to cease to continue as a going concern.

? Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Page 9 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2204172号

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

? Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within BOE to express an opinion on the financialstatements. We are responsible for the direction, supervision and performance of thegroup audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand, where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

KPMG Huazhen LLP Certified Public AccountantsRegistered in the People’s Republic of

China

Zhang Huan (Engagement Partner)

Beijing, China Chai Jing

30 March 2022

Page 1

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	V.1	80,986,835,088	?	73,694,296,095
Financial assets held for trading	V.2	10,028,172,853	?	4,367,201,833
Bills receivable	V.3	217,734,298	?	215,994,373
Accounts receivable	V.4	35,503,414,820	?	22,969,140,355
Prepayments	V.5	1,112,880,007	?	1,119,595,984
Other receivables	V.6	1,922,828,378	?	658,114,833
Inventories	V.7	27,724,806,939	?	17,875,454,490
Contract assets	V.8	75,698,324	?	49,897,395
Assets held for sale	V.9?	-	?	186,892,645
Non-current assets due within one year	?	7,700,735	?	-
Other current assets	V.10	3,578,919,710	?	7,848,869,252
?	?	?	?	?
Total current assets	?	161,158,991,152	?	128,985,457,255

???

The notes on pages 30 to 193 form part of these financial statements.

Page 2

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Assets (continued)	?	?	?	?
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term receivables		29,918,542	?	-
Long-term equity investments	V.11	6,040,948,317	?	3,693,170,224
Investments in other equity instruments	V.12	519,088,146	?	533,645,423
Other non-current financial assets	V.13	606,895,447	?	-
Investment properties	V.14	1,158,365,401	?	1,196,168,511
Fixed assets	V.15	226,695,489,704	?	224,866,586,069
Construction in progress	V.16	32,120,320,507	?	42,575,849,952
Right-of-use assets	V.62	753,164,237	?	-
Intangible assets	V.17	11,209,498,406	?	11,875,926,448
Goodwill	V.18	1,130,006,987	?	1,400,357,242
Long-term deferred expenses	V.19	636,530,502	?	299,634,100
Deferred tax assets	V.20	190,335,524	?	205,041,088
Other non-current assets	V.21	7,477,427,483	?	8,624,970,019
?	?	?	?	?
Total non-current assets	?	288,567,989,203	?	295,271,349,076
?
?	?	?	?	?
Total assets	?	449,726,980,355	?	424,256,806,331

The notes on pages 30 to 193 form part of these financial statements.

Page 3

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Short-term loans	V.22	2,072,057,332	?	8,599,569,471
Bills payable	V.23	827,958,031	?	1,231,533,895
Accounts payable	V.24	32,455,830,694	?	27,164,171,682
Advance payments received	V.25	146,140,084	?	124,040,749
Contract liabilities	V.26	3,765,081,554	?	3,440,720,535
Employee benefits payable	V.27	5,133,155,237	?	3,758,623,797
Taxes payable	V.28	2,200,249,305	?	1,077,686,869
Other payables	V.29	23,835,374,942	?	32,867,709,024
Non-current liabilities due within one year	V.30	28,874,958,714	?	24,500,550,121
Other current liabilities	V.31	4,051,532,509	?	2,194,716,852
?	?	?	?	?
Total current liabilities	?	103,362,338,402	?	104,959,322,995

???

The notes on pages 30 to 193 form part of these financial statements.

Page 4

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	V.32	116,078,666,587	?	132,452,767,135
Debentures payable	V.33	359,586,437	?	398,971,739
Lease liabilities	V.62	669,130,264	?	-
Long-term payables	V.34	906,592,838	?	2,114,175,683
Deferred income	V.35	6,416,089,611	?	4,246,231,468
Deferred tax liabilities	V.20	1,525,622,873	?	1,427,601,154
Other non-current liabilities	V.36	3,535,809,876	?	5,260,001,443
?	?	?	?	?
Total non-current liabilities	?	129,491,498,486	?	145,899,748,622
?
?	?	?	?	?
Total liabilities	?	232,853,836,888	?	250,859,071,617
?

The notes on pages 30 to 193 form part of these financial statements.

Page 5

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.37	38,445,746,482	?	34,798,398,763
Other equity instruments	V.38	14,146,997,427	?	14,146,997,427
Capital reserve	V.39	53,804,309,393	?	37,435,655,934
Less: Treasury shares	V.40	3,415,768,207	?	1,036,298,508
Other comprehensive income	V.41	113,551,147	?	(22,198,072)
Surplus reserve	V.42	2,889,590,205	?	2,444,416,669
Retained earnings	V.43	36,941,121,452	?	15,509,794,622
?	?	?	?	?
Total equity attributable to shareholders of the Company	?	142,925,547,899	?	103,276,766,835
?	?	?	?	?
Non-controlling interests	?	73,947,595,568	?	70,120,967,879
?	?	?	?	?
Total shareholders’ equity	?	216,873,143,467	?	173,397,734,714
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	449,726,980,355	?	424,256,806,331

???

These financial statements were approved by the Board of Directors of the Company on 30March 2022.

???


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 30 to 193 form part of these financial statements.

Page 6

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	XVI.1	5,609,364,822	?	4,375,497,010
Accounts receivable	XVI.2	4,828,855,275	?	3,974,212,308
Prepayments	?	12,669,107	?	12,185,651
Other receivables	XVI.3	15,449,830,610	?	16,345,474,583
Inventories	?	15,853,238	?	18,622,283
Other current assets	XVI.4	167,179,023	?	177,761,718
?	?	?	?	?
Total current assets	?	26,083,752,075	?	24,903,753,553

??
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term equity investments	XVI.5	210,945,821,235	?	182,135,057,208
Investments in other equity instruments	?	63,458,868	?	81,192,872
Investment properties	?	261,526,129	?	271,212,241
Fixed assets	?	961,944,766	?	1,009,178,229
Right-of-use assets	XVI.25	170,173,793	?	-
Construction in progress	?	551,352,449	?	418,343,961
Intangible assets	XVI.6	1,243,806,868	?	1,380,069,827
Long-term deferred expenses	?	441,560,097	?	105,439,681
Other non-current assets	?	1,744,751,520	?	2,611,437,988
?	?	?	?	?
Total non-current assets	?	216,384,395,725	?	188,011,932,007
?	?	?	?	?
?	?	?	?	?
Total assets	?	242,468,147,800	?	212,915,685,560

The notes on pages 30 to 193 form part of these financial statements.

Page 7

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Accounts payable	?	61,519,244	?	272,241,469
Advance payments received	XVI.8	20,038,334	?	18,286,458
Employee benefits payable	XVI.9	640,728,285	?	516,060,153
Taxes payable	?	244,586,957	?	87,179,892
Other payables	XVI.10	2,880,884,768	?	6,541,918,681
Non-current liabilities due within one year	?	10,909,326,195	?	7,847,210,073
Other current liabilities	?	29,190,783	?	1,977,977
?	?	?	?	?
Total current liabilities	?	14,786,274,566	?	15,284,874,703
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	XVI.11	32,208,500,000	?	38,360,714,121
Lease liabilities	XVI.25	129,343,868	?	-
Deferred income	XVI.12	2,906,951,707	?	3,633,342,446
Deferred tax liabilities	XVI.7	225,816,218	?	385,697,604
Other non-current liabilities	?	74,506,661,805	?	56,156,661,805
?	?	?	?	?
Total non-current liabilities	?	109,977,273,598	?	98,536,415,976
?
?	?	?	?	?
Total liabilities	?	124,763,548,164	?	113,821,290,679

???

The notes on pages 30 to 193 form part of these financial statements.

Page 8

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.37	38,445,746,482	?	34,798,398,763
Other equity instruments	V.38	14,146,997,427	?	14,146,997,427
Capital reserve	XVI.13	53,598,033,152	?	36,696,079,366
Less: Treasury shares	V.40	3,415,768,207	?	1,036,298,508
Other comprehensive income	XVI.14	89,024,650	?	90,713,133
Surplus reserve	V.42	2,889,590,205	?	2,444,416,669
Retained earnings	XVI.15	11,950,975,927	?	11,954,088,031
?	?	?	?	?
Total shareholders’ equity	?	117,704,599,636	?	99,094,394,881
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	242,468,147,800	?	212,915,685,560

These financial statements were approved by the Board of Directors of the Company on 30March 2022.


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 30 to 193 form part of these financial statements.

Page 9

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
I. Operation income	V.44	219,309,799,505	?	135,552,569,729
?	?	?	?	?
II. Less: Operating costs	V.44	155,985,225,295	?	110,409,882,204
Taxes and surcharges	V.45	1,424,205,826	?	1,078,900,085
Selling and distribution expenses	V.46	5,484,589,978	?	3,138,283,646
General and administrative expenses	V.47	6,693,373,589	?	4,600,271,642
Research and development expenses	V.48	10,668,844,187	?	7,638,602,711
Financial expenses	V.49	3,682,379,202	?	2,650,153,972
Including: Interest expenses	?	4,866,778,333	?	3,497,697,709
Interest income	?	1,050,431,325	?	873,376,712
Add: Other income	V.50	2,092,765,728	?	2,337,705,817
Investment income	V.51	1,347,489,345	?	897,891,109
Including: Income from investment in associates and joint ventures	?	1,245,036,895	?	444,407,986
Gains from changes in fair value	V.52	84,966,963	?	31,936,339
Credit (losses) /gains	V.53	(28,409,869)	?	1,827,519
Impairment loss	V.54	(4,478,251,852)	?	(3,280,425,399)
Gains from asset disposals	V.55	153,505,791	?	19,061,846
?	?	?	?	?
III. Operating profit	?	34,543,247,534	?	6,044,472,700
?	?	?	?	?
Add: Non-operating income	V.56	131,607,946	?	120,503,628
Less: Non-operating expenses	V.56	55,215,102	?	72,139,666

???

The notes on pages 30 to 193 form part of these financial statements.

Page 10

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
IV. Profit before income tax	?	34,619,640,378	?	6,092,836,662
?	?	?	?	?
Less: Income tax expenses	V.57	4,187,971,404	?	1,564,566,246
?	?	?	?
V. Net profit for the year	?	30,431,668,974	?	4,528,270,416
?	?	?	?	?
Shareholders of the Company	?	25,830,935,500	?	5,035,627,952
Non-controlling interests	?	4,600,733,474	?	(507,357,536)

The notes on pages 30 to 193 form part of these financial statements.

Page 11

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
VI. Other comprehensive income, net of tax	V.41	155,717,231	?	165,945,656
Other comprehensive income (net of tax) attributable to owners of the Company	?	190,988,004	?	177,438,725
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	68,869,497	?	136,381,254
2. Changes in fair value of investments in other equity instruments	?	(40,618,274)	?	(19,975,534)
(2) Items that may be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	(296,553)	?	11,835
2. Translation differences arising from translation of foreign currency financial statements	?	163,033,334	?	61,021,170
Other comprehensive income (net of tax) attributable to non-controlling interests	?	(35,270,773)	?	(11,493,069)
?	?	?	?	?

???

The notes on pages 30 to 193 form part of these financial statements.

Page 12

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
VII. Total comprehensive income for the year	?	30,587,386,205	?	4,694,216,072

?	?	?	?	?
Attributable to shareholders of the Company	?	26,021,923,504	?	5,213,066,677
Attributable to non-controlling interests	?	4,565,462,701	?	(518,850,605)
?	?	?	?	?
VIII. Earnings per share:	?	?	?	?
(1) Basic earnings per share	V.58	0.71	?	0.13
(2) Diluted earnings per share	V.58	0.71	?	0.13

These financial statements were approved by the Board of Directors of the Company on 30March 2022.


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 30 to 193 form part of these financial statements.

Page 13

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
I. Operation income	XVI.16	5,716,998,034	?	4,541,676,195
?	?	?	?	?
II. Less: Operating costs	?	16,459,454	?	22,304,841
Taxes and surcharges	XVI.17	36,630,410	?	40,889,596
General and administrative expenses	?	1,577,032,602	?	858,750,449
Research and development expenses	XVI.18	2,330,865,497	?	2,102,895,125
Financial expenses	XVI.19	798,736,264	?	916,538,545
Including: Interest expenses	?	892,768,026	?	970,259,855
Interest income	?	93,003,346	?	37,793,976
Add: Other income	XVI.20	948,922,174	?	970,989,167
Investment income	XVI.21	2,755,668,691	?	2,429,685,102
Including: Income from investment in associates and joint ventures	?	864,640,400	?	416,901,621
Credit losses	?	(5,247,340)	?	(5,376,889)
Losses from asset disposals	?	(773,327)	?	-
?	?	?	?	?
III. Operating profit	?	4,655,844,005	?	3,995,595,019
?	?	?	?	?
Add: Non-operating income	?	7,424,220	?	6,879,087
Less: Non-operating expenses	?	5,915,655	?	11,908,850
?	?	?	?	?
IV. Profit before income tax	?	4,657,352,570	?	3,990,565,256
?	?	?	?	?
Less: Income tax expenses	XVI.22	260,856,004	?	251,373,672
?	?	?	?	?
V. Net profit for the year	?	4,396,496,566	?	3,739,191,584

???

The notes on pages 30 to 193 form part of these financial statements.

Page 14

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
VI. Other comprehensive income, net of tax	XVI.14	53,550,302	?	136,131,965
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	68,869,497	?	136,381,254
2. Changes in fair value of investments in other equity instruments	?	(15,073,903)	?	(261,124)
(2) Items that may be reclassified to profit or loss	?	(245,292)	?	11,835
?	?	?	?	?
?	?	?	?	?
VII. Total comprehensive income for the year	?	4,450,046,868	?	3,875,323,549

???

These financial statements were approved by the Board of Directors of the Company on 30March 2022.

???


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 30 to 193 form part of these financial statements.

Page 15

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	219,962,740,822	?	152,737,944,370
Refund of taxes	?	13,173,129,922	?	11,677,125,705
Proceeds from other operating activities	?	5,925,158,408	?	5,178,686,102
?	?	?	?	?
Sub-total of cash inflows	?	239,061,029,152	?	169,593,756,177
?	?	?	?	?
Payment for goods and services	?	(145,205,421,170)	?	(115,414,695,545)
Payment to and for employees	?	(17,896,262,253)	?	(10,375,043,429)
Payment of various taxes	?	(5,149,971,194)	?	(2,493,092,709)
Payment for other operating activities	?	(8,538,818,211)	?	(2,059,151,036)
?	?	?	?	?
Sub-total of cash outflows	?	(176,790,472,828)	?	(130,341,982,719)
?
?	?	?	?	?
Net cash flows from operating activities	V.59(1)	62,270,556,324	?	39,251,773,458

The notes on pages 30 to 193 form part of these financial statements.

Page 16

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	33,071,343,623	?	23,039,182,987
Investment returns received	?	180,030,588	?	79,109,825
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	?	69,111,303	?	177,874,045
Net amount received from subsidiaries		-	?	954,155,710
Net proceeds from disposal of subsidiaries		-	?	336,086,996
Proceeds from other investing activities	?	3,438,995,631	?	945,857,001
?	?	?	?	?
Sub-total of cash inflows	?	36,759,481,145	?	25,532,266,564
?	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(35,669,946,105)	?	(44,215,334,543)
Payment for acquisition of investments	?	(41,638,460,294)	?	(20,725,326,161)
Net cash paid to acquire subsidiaries		(2,815,535)	?	(1,895,124,119)
Net payment for disposal of subsidiaries		(160,887,997)	?	-
Payment for other investing activities	?	-	?	(2,103,448,590)
?	?	?	?	?
Sub-total of cash outflows	?	(77,472,109,931)	?	(68,939,233,413)
?	?	?	?	?
?	?	?	?	?
Net cash flows from investing activities	?	(40,712,628,786)	?	(43,406,966,849)

The notes on pages 30 to 193 form part of these financial statements.

Page 17

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from investors	?	31,519,607,755	?	10,377,793,629
Including: Proceeds from non-controlling shareholders of subsidiaries	?	11,187,003,325	?	10,377,793,629
Proceeds from issuance of debentures	?	-	?	5,966,660,000
Proceeds from borrowings	?	31,028,727,811	?	50,709,738,711
Net amount of monetary movements for pledging loans	?	1,106,689,881	?	2,927,370,511
Proceeds from other financing activities	?	-	?	920,016,046
?	?	?	?	?
Sub-total of cash inflows	?	63,655,025,447	?	70,901,578,897

The notes on pages 30 to 193 form part of these financial statements.

Page 18

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
III. Cash flows from financing activities (continued):	?	?	?	?
Repayments of borrowings	?	(48,435,579,182)	?	(38,547,043,449)
Payment for dividends or interest	?	(10,261,666,002)	?	(6,520,054,957)
Including: Profits paid to non-controlling shareholders of subsidiaries	?	(34,862,550)	?	(88,810,446)
Payment for other financing activities	?	(17,139,649,816)	?	(2,016,750,534)
?	?	?	?	?
Sub-total of cash outflows	?	(75,836,895,000)	?	(47,083,848,940)
?
?	?	?	?	?
Net cash flows from financing activities	?	(12,181,869,553)	?	23,817,729,957
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	(817,308,273)	?	(1,868,121,768)
?
?	?	?	?	?
V. Net increase in cash and cash equivalents	V.59(1)	8,558,749,712	?	17,794,414,798
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	68,064,736,371	?	50,270,321,573
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	V.59(2)	76,623,486,083	?	68,064,736,371

These financial statements were approved by the Board of Directors of the Company on 30March 2022.


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 30 to 193 form part of these financial statements.

Page 19

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2021(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	5,868,891,208	?	3,125,955,887
Proceeds from other operating activities	?	406,266,493	?	77,211,104
?	?	?	?	?
Sub-total of cash inflows	?	6,275,157,701	?	3,203,166,991
?	?	?	?	?
Payment for goods and services	?	(1,038,043,873)	?	(952,364,398)
Payment to and for employees	?	(1,532,937,459)	?	(977,064,794)
Payment of various taxes	?	(495,289,004)	?	(513,631,723)
Payment for other operating activities	?	(2,504,787,813)	?	(644,659,863)
?	?	?	?	?
Sub-total of cash outflows	?	(5,571,058,149)	?	(3,087,720,778)
?
?	?	?	?	?
Net cash flows from operating activities	XVI.23(1)	704,099,552	?	115,446,213
?	?	?	?	?
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	890,504,898	?	931,412,417
Proceeds from disposal of subsidiaries	?	230,142,095	?	-?
Investment returns received	?	2,129,623,919	?	1,208,468,425
Net proceeds from disposal of fixed assets	?	13,445,008	?	303,987
Proceeds from other investing activities	?	2,075,919,565	?	470,877,944
?	?	?	?	?
Sub-total of cash inflows	?	5,339,635,485	?	2,611,062,773

???

The notes on pages 30 to 193 form part of these financial statements.

Page 20

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
II. Cash flows from investing activities (continued):	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(715,641,262)	?	(412,494,447)
Payment for acquisition of investments	?	(30,498,556,648)	?	(20,477,410,853)
Payment for other investing activities	?	(825,000,000)	?	(12,405,000,000)
?	?	?	?	?
Sub-total of cash outflows	?	(32,039,197,910)	?	(33,294,905,300)
?
?	?	?	?	?
Net cash flows from investing activities	?	(26,699,562,425)	?	(30,683,842,527)
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from issuance of debentures	?	-	?	5,966,660,000
Proceeds from investors	?	20,332,604,430	?	-?
Proceeds from borrowings	?	14,303,000,000	?	21,867,000,000
Proceeds from other financing activities	?	20,888,483,038	?	23,967,730,377
?	?	?	?	?
Sub-total of cash inflows	?	55,524,087,468	?	51,801,390,377
?	?	?	?	?
Repayments of borrowings	?	(17,355,376,312)	?	(15,767,047,454)
Payment for dividends and interest	?	(5,524,312,554)	?	(2,254,787,893)
Payment for other financing activities	?	(5,389,705,939)	?	(2,398,651,425)
?	?	?	?	?
Sub-total of cash outflows	?	(28,269,394,805)	?	(20,420,486,772)
?
?	?	?	?	?
Net cash flows from financing activities	?	27,254,692,663	?	31,380,903,605

???

The notes on pages 30 to 193 form part of these financial statements.

Page 21

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	2021	?	2020
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	(19,357,657)	?	(133,212,123)
?	?	?	?	?
?	?	?	?	?
V. Net (Decrease)/Increase in cash and cash equivalents	XVI.23(1)	1,239,872,133	?	679,295,168
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	4,360,065,216	?	3,680,770,048
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	XVI.23(2)	5,599,937,349	?	4,360,065,216

???

These financial statements were approved by the Board of Directors of the Company on 30March 2022.

???


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 30 to 193 form part of these financial statements.

Page 22

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2021(Expressed in Renminbi Yuan)

?	?	Equity 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		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
II. Changes in equity during the year	?	?		?		?		?	?	?		?		?		?	?		?
1. Total comprehensive income	?	-		-		-		-	?	190,988,004		-		25,830,935,500		26,021,923,504	4,565,462,701		30,587,386,205
2. Shareholders’ contributions of capital	?	?		?		?		?	?	?		?		?		?	?		?
(1) Contribution by ordinary shareholders	V.37	3,650,377,019		-		16,219,134,815		-	?	-		-		-		19,869,511,834	-		19,869,511,834
(2) Contribution by non-controlling interests	?	-		-		-		-	?	-		-		-		-	11,187,003,325		11,187,003,325
(3) Decrease of capital by non-controlling interests	?	-		-		322,947		-	?	-		-		-		322,947	(8,482,947)		(8,160,000)
(4) Repurchase of treasury shares	V.40	-		-		-		2,428,003,419	?	-		-		-		(2,428,003,419)	-		(2,428,003,419)
(5) Cancellation of treasury shares	V. 37/39/40	(3,029,300)		-		(14,270,384)		(17,299,684)	?	-		-		-		-	-		-
(6) Equity-settled share-based payments	XI	-		-		598,701,862		(31,234,036)	?	-		-		-		629,935,898	41,990,775		671,926,673
3. Appropriation of profits	?	?		?		?		?	?	?		?		?		?	?		?
(1) Appropriation for surplus reserve	V.42	-		-		-		-	?	-		439,649,657		(439,649,657)		-	-		-
(2) Accrued interest on holders of other equity instruments	V.38	-		533,600,000		-		-	?	-		-		(533,600,000)		-	-		-
(3) Payment for interest on holders of other equity instruments	V.38	-		(533,600,000)		-		-	?	-		-		-		(533,600,000)	-		(533,600,000)
(4) Distributions to shareholders	V.43	-		-		-		-	?	-		-		(3,476,073,919)		(3,476,073,919)	(34,862,550)		(3,510,936,469)

The notes on pages 30 to 193 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 2021 (continued)(Expressed in Renminbi Yuan)

Equity 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

(55,238,785)

5,523,879

49,714,906

5. Others

(1) Other movements in equity of associates

V. 11

51,030,550

(2) Acquisition of non-controlling interests

V.39

(772,223,591)

(12,066,861,731)

(12,839,085,322)

(3) Disposal of equities in subsidiaries

V.39

288,039,797

146,828,923

434,868,720

(4) Others

V.39

(2,082,537)

(4,450,807)

(6,533,344)

III. Balance at the end of the year

38,445,746,482

14,146,997,427

53,804,309,393

3,415,768,207

113,551,147

2,889,590,205

36,941,121,452

142,925,547,899

73,947,595,568

216,873,143,467

These financial statements were approved by the Board of Directors of the Company on 30 March 2022.


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 30 to 193 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(Expressed in Renminbi Yuan)

?	?	Equity 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)		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		10,663,566,927
(2) Contribution by holders of other equity instruments	V.38	-	5,967,915,094	?	-	-	?	-		-	-	5,967,915,094	?	-		5,967,915,094
(3) Repurchase of treasury shares	V.40	-	-	?	-	1,998,774,694	?	-		-	-	(1,998,774,694)	?	-		(1,998,774,694)
(4) Business combinations involving entities not under common control	?	-	-	?	-	-	?	-		-	-	-	?	14,293,193,400		14,293,193,400
(5) Changes in shareholding ratio of subsidiaries	V.39	-	-	?	76,020,559	-	?	-		-	-	76,020,559	?	(76,020,559)		-
(6) Equity-settled share-based payments	XI	-	-	?	(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)	?	-	-	?	-		-	-	(320,000,000)	?	-		(320,000,000)
(4) Distributions to shareholders	V.43	-	-	?	-	-	?	-		-	(695,967,975)	(695,967,975)	?	(88,810,446)		(784,778,421)

???

The notes on pages 30 to 193 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 2020 (continued)(Expressed in Renminbi Yuan)

Equity 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

(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 30 March 2022.


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 30 to 193 form part of these financial statements.

Page 26

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2021(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		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
II. Changes in equity during the year	?	?		?	?	?	?	?	?	?	?
1. Total comprehensive income	?	-		-	?	-	-	53,550,302	-	4,396,496,566	4,450,046,868
2. Shareholders’ contributions of capital	?	?		?	?	?	?	?	?	?	?
(1) Contribution by ordinary shareholders	V.37	3,650,377,019		-	?	16,219,134,815	-	-	-	-	19,869,511,834
(2) Repurchase of treasury shares	V.40	-		-	?	-	2,428,003,419	-	-	-	(2,428,003,419)
(3) Cancellation of treasury shares	V. 37/39/40	(3,029,300)		-	?	(14,270,384)	(17,299,684)	-	-	-	-?
(4) Equity-settled share-based payment	XI	-		-	?	640,692,637	(31,234,036)	-	-	-	671,926,673
3. Appropriation of profits	?	?		?	?	?	?	?	?	?	?
(1) Appropriation for surplus reserve	V.42	-		-	?	-	-	-	439,649,657	(439,649,657)	-
(2) Accrued interest on holders of other equity instruments	V.38	-		533,600,000	?	-	-	-	-	(533,600,000)	-
(3) Payment for interest on holders of other equity instruments	V.38	-		(533,600,000)	?	-	-	-	-	-	(533,600,000)
(4) Distributions to shareholders	V.43	-		-	?	-	-	-	-	(3,476,073,919)	(3,476,073,919)

???

The notes on pages 30 to 193 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 2021 (continued)(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

XVI.14/15

(55,238,785)

5,523,879

49,714,906

5. Others

(1) Other movements in equity of associates

XVI.5

53,544,976

(2) Others

2,851,742

III. Balance at the end of the year

38,445,746,482

14,146,997,427

53,598,033,152

3,415,768,207

89,024,650

2,889,590,205

11,950,975,927

117,704,599,636

These financial statements were approved by the Board of Directors of the Company on 30 March 2022.


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 30 to 193 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

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

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 payment

(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 30 to 193 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 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

XVI.14/15

(239,057,408)

23,905,741

215,151,667

5. Others

(1) Disposal of subsidiaries to equity method accounting

(3,454,053)

(31,086,473)

(34,540,526)

(2) Other movements in equity of associates

XVI.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 30 March 2022.


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 30 to 193 form part of these financial statements.

Page 30

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, Internet of Things (IoT) innovation business, sensor andapplication solutions, MLED and smart medicine & engineering. For information about thesubsidiaries 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,and has adopted the revised “Accounting Standard for Business Enterprises No. 21 –Leases” issued by the MOF in 2018, since 1 January 2021 (see Note III.28).

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 2021, 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.

Page 31

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. Theoperating cycle 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 aredenominated and settled. Some of the Company’s subsidiaries have functional currenciesthat are different from the Company’s functional currency. Their financial statements havebeen translated based 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 oneor more entities (or a group of assets or net assets). Business combination is classifiedas either 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 acquirerdetermines whether acquired set of assets constitute a business. The Group may elect toapply the simplified assessment method, the concentration test, to determine whether anacquired set of assets is not a business. If the concentration test is met and the set ofassets is determined not to be a business, no further assessment is needed. If theconcentration test is not met, the Group shall perform the assessment according to theguidance on the determination of a business.

When the set of assets the group acquired does not constitute a business, acquisitioncosts should be allocated to each identifiable assets and liabilities at their acquisition datefair values. It is not required to apply the accounting of business combination describedas below.

(1) Business combinations involving entities under common control

A business combination involving entities under common control is a businesscombination in which all of the combining entities are ultimately controlled by the sameparty or parties both before and after the business combination, and that control is nottransitory. The assets acquired and liabilities assumed are measured based on theircarrying amounts in the consolidated financial statements of the ultimate controlling partyat the combination date. The difference between the carrying amount of the net assetsacquired and the consideration paid for the combination (or the total par value of sharesissued) is adjusted against share premium in the capital reserve, with any excessadjusted against retained earnings. Any costs directly attributable to the combination arerecognised in profit or loss when incurred. The combination date is the date on which onecombining entity obtains control of other combining entities.

Page 32

(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 thesame party or parties both before and after the business combination. Where (1) theaggregate of the acquisition-date fair value of assets transferred (including the acquirer’spreviously held equity interest in the acquiree), liabilities incurred or assumed, and equitysecurities issued by the acquirer, in exchange for control of the acquiree, exceeds (2) theacquirer’s interest in the acquisition-date fair value of the acquiree’s identifiable netassets, the difference is recognised as goodwill (see Note III.17). If (1) is less than (2),the difference is recognised in profit or loss for the current period. The costs of issuingequity or debt securities as a part of the consideration for the acquisition are included inthe carrying amounts of these equity or debt securities upon initial recognition. Otheracquisition-related costs are expensed when incurred. Any difference between the fairvalue and the carrying amount of the assets transferred as consideration is recognised inprofit or loss. The acquiree’s identifiable asset, liabilities and contingent liabilities, if therecognition criteria are met, are recognised by the Group at their acquisition-date fairvalue. The acquisition date is the date on which the acquirer obtains control of theacquiree.

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 valueand the carrying amount as investment income or other comprehensive income for thecurrent period. In addition, any amount recognised in other comprehensive income andother changes in the owners’ equity under equity accounting in prior reporting periodsrelating to the previously-held equity interest that may be reclassified to profit or loss aretransferred to investment income at the date of acquisition (see Note III.11(2)(b)); Anypreviously-held equity interest that is designated as equity investment at fair valuethrough other comprehensive income, the other comprehensive income recognised inprior reporting periods is transferred to retained earnings and surplus reserve at the dateof acquisition.

Page 33

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 variablereturns from its involvement with the investee and has the ability to affect those returnsthrough its power over the investee. When assessing whether the Group has power, onlysubstantive rights (held by the Group and other parties) are considered. The financialposition, financial performance and cash flows of subsidiaries are included in theconsolidated financial statements from the date that control commences until the datethat control ceases.

Non-controlling interests are presented separately in the consolidated balance sheetwithin shareholders’ equity. Net profit or loss attributable to non-controlling shareholdersis presented separately in the consolidated income statement below the net profit lineitem. Total comprehensive income attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the totalcomprehensive income line item.

When the amount of loss for the current period attributable to the non-controllingshareholders of a subsidiary exceeds the non-controlling shareholders’ share of theopening owners’ equity of the subsidiary, the excess is still allocated against the non-controlling interests.

When the accounting period or accounting policies of a subsidiary are different fromthose of the Company, the Company makes necessary adjustments to the financialstatements of the subsidiary based on the Company’s own accounting period oraccounting policies. Intra-group balances and transactions, and any unrealised profit orloss arising from intra-group transactions, are eliminated when preparing the consolidatedfinancial statements. Unrealised losses resulting from intra-group transactions areeliminated in the same way as unrealised gains, unless they represent impairment lossesthat are recognised in the financial 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 figuresof the 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 andliabilities of the acquired subsidiaries are included in the scope of consolidation from thedate that control commences, based on the fair value of those identifiable assets andliabilities at the acquisition date.

Page 34

(3) Disposal of subsidiaries

When the Group loses control over a subsidiary, any resulting disposal gains or lossesare recognised as investment income for the current period. The remaining equityinterests is re-measured at its fair value at the date when control is lost, any resultinggains or losses are also recognised as investment income for the current period.

When the Group loses control of a subsidiary in multiple transactions in which it disposesof its long-term equity investment in the subsidiary in stages, the following are consideredto determine 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 oneother arrangement;- one arrangement considered on its own is not economically justified, but it iseconomically justified when considered together with other arrangements.

If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment insubsidiaries where 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 accountedfor as a single transaction. In the consolidated financial statements, the differencebetween the consideration received and the corresponding proportion of the subsidiary’snet assets (calculated continuously from the acquisition date) in each transaction prior tothe loss of control shall be recognised in other comprehensive income and transferred toprofit or loss when the parent eventually loses control of the subsidiary.

Page 35

(4) Changes in non-controlling interests

Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling shareholders or disposes of a portion of an interest in a subsidiary without achange in control, the difference between the proportion interests of the subsidiary’s netassets being acquired or disposed and the amount of the consideration paid or receivedis adjusted to the capital reserve (share premium) in the consolidated balance sheet, withany excess adjusted to retained earnings.

7 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits that can be readily withdrawon demand, and short-term, highly liquid investments that are readily convertible intoknown amounts 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 istranslated to Renminbi at the spot exchange rate at the date of the receipt. Other foreigncurrency transactions are, on initial recognition, translated to Renminbi at the spotexchange rates on the 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 aregenerally recognised in profit or loss, unless they arise from the re-translation of theprincipal and interest of specific borrowings for the acquisition and construction ofqualifying assets (see Note III.15). Non-monetary items that are measured at historicalcost in foreign currencies are translated to Renminbi using the exchange rate at thetransaction date. Non-monetary items that are measured at fair value in foreigncurrencies are translated using the exchange rate at the date the fair value is determined.The resulting exchange differences are recognised in profit or loss, except for thedifferences arising from the re-translation of equity investments at fair value through othercomprehensive income, which are recognised in other comprehensive income.

In translating the financial statements of a foreign operation, assets and liabilities offoreign operation are translated to Renminbi at the spot exchange rate at the balancesheet date. Equity items, excluding retained earnings and the translation differences inother comprehensive income, are translated to Renminbi at the spot exchange rates atthe transaction dates. Income and expenses of foreign operation are translated toRenminbi at the rates that approximate the spot exchange rates at the transaction dates.The resulting translation differences are recognised in other comprehensive income. Thetranslation differences accumulated in shareholders’ equity with respect to a foreignoperation are transferred to profit or loss in the period when the foreign operation isdisposed.

Page 36

9 Financial instruments

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

(1) Recognition and initial measurement of financial assets and financial liabilities

A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.

A financial or financial liability is measured initially at fair value. For financial assets andfinancial 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 transactionprice in accordance with Note III.20.

(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 inwhich a financial asset is managed and its contractual cash flow characteristics. Oninitial recognition, a financial asset is classified as measured at amortised cost, atfair value through other comprehensive income (“FVOCI”), or at fair value throughprofit or loss (“FVTPL”).

Financial assets are not reclassified subsequent to their initial recognition unlessthe Group changes its business model for managing financial assets in which caseall affected financial assets are reclassified on the first day of the first reportingperiod following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collectcontractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.

Page 37

A debt investment is measured at FVOCI if it meets both of the following conditionsand is not designated as at FVTPL:

- it is held within a business model whose objective is achieved by both collectingcontractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Groupmay irrevocably elect to present subsequent changes in the investment’s fair valuein other comprehensive income. This election is made on an investment-by-investment basis. The instrument meets the definition of equity from the perspectiveof the issuer.

All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.

The business model refers to how the Group manages its financial assets in orderto generate cash flows. That is, the Group’s business model determines whethercash flows will result from collecting contractual cash flows, selling financial assetsor both. The Group determines the business model for managing the financialassets according to the facts and based on the specific business objective formanaging the financial assets determined by the Group’s key managementpersonnel.

In assessing whether the contractual cash flows are solely payments of principaland interest, the Group considers the contractual terms of the instrument. For thepurposes of this assessment, ‘principal’ is defined as the fair value of the financialasset on initial recognition. ‘Interest’ is defined as consideration for the time value ofmoney and for the credit risk associated with the principal amount outstandingduring a particular period of time and for other basic lending risks and costs, as wellas a profit margin. The Group also assesses whether the financial asset contains acontractual term that could change the timing or amount of contractual cash flowssuch that it would not meet this condition.

Page 38

(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 incomecalculated using the effective interest method, impairment and foreign exchangegains and losses are recognised in profit or loss. Other net gains and losses arerecognised in other comprehensive income. On derecognition, gains and lossesaccumulated in other comprehensive income are reclassified to profit or loss.

- Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends arerecognised as income in profit or loss. Other net gains and losses arerecognised in other comprehensive income. On derecognition, gains and lossesaccumulated in other comprehensive income are reclassified to retainedearnings.

(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(including derivative financial liability) or it is designated as such on initial recognition.

Financial liabilities at FVTPL are subsequently measured at fair value and net gainsand losses, including any interest expense, are recognised in profit or loss, unless thefinancial liabilities are part of a hedging relationship.

Page 39

- Financial liabilities at amortised cost

These financial liabilities are subsequently measured at amortised cost using theeffective interest 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 andthe net amount is presented in the balance sheet when both of the following conditionsare satisfied:

- The Group currently has a legally enforceable right to set off the recognisedamounts；- 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 norretains substantially all of the risks and rewards of ownership of the financial asset, itdoes 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 contractualobligation (or part of it) is extinguished.

Page 40

(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; and- lease receivablesFinancial assets measured at fair value, including debt investments or equity securities atFVTPL, equity securities designated at FVOCI and derivative financial assets, are notsubject to the ECL assessment.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured asthe present value of all cash shortfalls (i.e. the difference between the cash flows due tothe entity in accordance with the contract and the cash flows that the Group expects toreceive).

The maximum period considered when estimating ECLs is the maximum contractualperiod (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 expectedlife of 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 lifeof the instrument is less than 12 months).

Loss allowances for trade receivables, lease receivables and contract assets are alwaysmeasured at an amount equal to lifetime ECL. ECLs on these financial assets areestimated using a provision matrix based on the Group’s historical credit loss experience,adjusted for factors that are specific to the debtors and an assessment of both the currentand forecast general economic conditions at the balance sheet date.

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Except for trade receivables, lease receivables and contract assets, the Group measuresloss allowance at an amount equal to 12-month ECL for the following financialinstruments, and at an amount equal to lifetime ECL for all other financial instruments.

- If the financial instrument is determined to have low credit risk at the balance sheetdate;- 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 alow risk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions inthe longer term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.

Significant increases in credit risk

In assessing whether the credit risk of a financial instrument has increased significantlysince initial 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,including forward-looking information. In particular, the following information is taken intoaccount:

- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor;and- existing or forecast changes in the technological, market, economic or legalenvironment that have a significant adverse effect on the debtor’s ability to meet itsobligation to the Group.

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.When the assessment is performed on a collective basis, the financial instruments aregrouped based on shared credit risk characteristics, such as past due status and creditrisk ratings.

The Group assumes that the credit risk on a financial asset has increased significantly if itis more than 30 days past due.

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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 theestimated future cash flows of the financial asset have occurred. Evidence that a financialasset is credit-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 principalpayments;- for economic or contractual reasons relating to the borrower’s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation;or- the disappearance of an active market for that financial asset because of financialdifficulties.

Presentation of allowance for ECL

ECLs are remeasured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount isrecognised as an impairment gain or loss in profit or loss. The Group recognises animpairment gain or loss for all financial instruments with a corresponding adjustment totheir carrying amount through a loss allowance account, except for debt investments thatare measured at FVOCI, for which the loss allowance is recognised in othercomprehensive income.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) tothe extent that there is no realistic prospect of recovery. A write-off constitutes aderecognition event. This is generally the case when the Group determines that thedebtor does not have assets or sources of income that could generate sufficient cashflows to repay the amounts subject to the write-off. However, financial assets that arewritten off could still be subject to enforcement activities in order to comply with theGroup’s procedures for recovery of amounts 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.

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(7) Equity instrument

The consideration received from the issuance of equity instruments net of transactioncosts is recognised in shareholders’ equity. Consideration and transaction costs paid bythe Company for repurchasing self-issued equity instruments are deducted fromshareholders’ 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 inthe balance sheet.

When treasury shares are cancelled, the share capital should be reduced to the extent ofthe total 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 treasuryshares cancelled is less than the total par value, the difference is credited to the capitalreserve (share premium).

When treasury shares are disposed of, any excess of proceeds above cost is recognisedin capital reserve (share premium); otherwise, the shortfall is deducted against capitalreserve (share premium), surplus reserve and retained earnings sequentially.

(8) Perpetual bonds

At initial recognition, the Group classifies the perpetual bonds issued or their componentsas financial assets, financial liabilities or equity instruments based on their contractualterms and their economic substance after considering the definition of financial assets,financial liabilities 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 interestsduring the instruments’ duration is treated as profit appropriation. When the perpetualbonds are redeemed according to the contractual terms, the redemption price is chargedto equity.

10 Inventories

(1) Classification and cost

Inventories include raw materials, work in progress, finished goods and reusablematerials. Reusable materials include low-value consumables, packaging materials andother materials, which can be used repeatedly but do not meet the definition of fixedassets.

Inventories are initially measured at cost. Cost of inventories comprises all costs ofpurchase, costs of conversion and other expenditure incurred in bringing the inventoriesto their present location and condition. In addition to the purchase cost of raw materials,work in progress and finished goods include direct labour costs and an appropriateallocation of production overheads.

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(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 lessthe estimated costs of completion and the estimated costs necessary to make the saleand relevant 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 quantitiesspecified in sales contracts, and the excess portion of inventories is measured based ongeneral selling prices.

Any excess of the cost over the net realisable value of each category of inventories isrecognised as a provision for obsolete inventories, and is recognised in profit or loss.

(4) Inventory count system

The Group maintains a perpetual inventory system.

11 Long-term equity investments

(1) Investment cost of long-term equity investments

(a) Long-term equity investments acquired through a business combination

- The initial cost of a long-term equity investment acquired through a businesscombination involving entities under common control is the Company’s share ofthe carrying amount of the subsidiary’s equity in the consolidated financialstatements of the ultimate controlling party at the combination date. Thedifference between the initial investment cost and the carrying amount of theconsideration given is adjusted to the share premium in the capital reserve, withany excess adjusted to retained earnings. For a long-term equity investment in asubsidiary acquired through a business combination achieved in stages which donot form a bundled transaction and involving entities under common control, theCompany determines the initial cost of the investment in accordance with theabove policies. The difference between this initial cost and the sum of thecarrying amount of previously-held investment and the consideration paid for theshares newly acquired is adjusted to capital premium in the capital reserve, withany excess adjusted to retained earnings.

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- For a long-term equity investment obtained through a business combination not

involving entities under common control, the initial cost comprises the aggregateof the 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 notinvolving entities under common control and achieved through multipletransactions in stages which do not form a bundled transaction, the initial costcomprises the carrying amount of the previously-held equity investment in theacquiree immediately before the acquisition date, and the additional investmentcost 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 businesscombination is initially recognised at the amount of cash paid if the Groupacquires the investment by cash, or at the fair value of the equity securitiesissued if an investment 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 beenincluded in the price or consideration paid in obtaining the investments, theCompany recognises its share of the cash dividends or profit distributions declaredby the investee as investment income for the current period.

The investments in subsidiaries are stated in the balance sheet at cost lessaccumulated impairment losses.

For the impairment of the investments in subsidiaries, refer to Note III.19.

In the Group’s consolidated financial statements, subsidiaries are accounted for inaccordance with the policies described in Note III.6.

(b) Investment in joint ventures and associates

A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.11(3)) and rights to the net assets of the arrangement.

An associate is an entity over which the Group has significant influence (see NoteIII.11(3)).

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An investment in a joint venture or an associate is accounted for using the equitymethod for subsequent measurement, unless the investment is classified as heldfor sale (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

interest in the fair value of the investee’s identifiable net assets at the date ofacquisition, the investment is initially recognised at cost. Where the initialinvestment cost is less than the Group’s interest in the fair value of the investee’sidentifiable net assets at the date of acquisition, the investment is initiallyrecognised at the investor’s share of the fair value of the investee’s identifiablenet assets, and the difference is recognised 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 incomeor losses 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 reducedby the 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 profitor loss, 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, othercomprehensive income and other changes in owners’ equity, the Grouprecognises investment income and other comprehensive income after makingappropriate adjustments to align the accounting policies or accounting periodswith those of the Group based on the fair value of the investee’s identifiable netassets at the date of acquisition. Unrealised profits and losses resulting fromtransactions between the Group and its associates or joint ventures areeliminated to the extent of the Group’s interest in the associates or jointventures. Unrealised losses resulting from transactions between the Group andits associates or joint ventures are eliminated in the same way as unrealisedgains but only to the extent that there is no impairment.

- The Group discontinues recognising its share of further losses of the investeeafter the carrying amount of the long-term equity investment and any long-terminterest that in substance forms part of the Group’s net investment in the jointventure or associate is reduced to zero, except to the extent that the Group hasan obligation to assume additional losses. If the joint venture or associatesubsequently reports net profits, the Group resumes recognising its share ofthose profits only after its share of the profits has fully covered the share oflosses not recognised.

For the impairment of the investments in joint ventures and associates, refer toNote III.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, whichexists only when decisions about the relevant activities (activities with significant impacton the returns of the arrangement) require the unanimous consent of the parties sharingcontrol.

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 policydecisions of 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 modeland stated 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-linemethod over its estimated useful life, unless the investment property is classified as heldfor sale (see Note III.29). For the impairment of the investment properties, refer to NoteIII.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%

???

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13 Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in the production ofgoods, supply of services or for administrative purposes with useful lives over one 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 setout in Note III.14.

Where the parts of an item of fixed assets have different useful lives or provide benefits tothe Group in a different pattern, thus necessitating use of different depreciation rates ormethods, each part is recognised as a separate fixed asset.

Any subsequent costs including the cost of replacing part of an item of fixed assets arerecognised as assets when it is probable that the economic benefits associated with thecosts will flow to the Group, and the carrying amount of the replaced part isderecognised. The costs of the day-to-day maintenance of fixed assets are recognised inprofit or loss as incurred.

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, unlessthe fixed asset is classified as held for sale (see Note III.29).

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

Class	Estimated useful life (years)	?	Residual value rate (%)	?	Depreciation rate (%)
?	?	?	?	?	?
Buildings	10 - 50 years	?	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, residual values and depreciation methods are reviewed at least at eachyear-end.

(3) For the impairment of the fixed assets, refer to Note III.19.

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(4) 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 amountof the 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,capitalised borrowing costs (see Note III.15), and any other costs directly attributable tobringing the asset 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 againstconstruction in progress.

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

15 Borrowing costs

Borrowing costs incurred directly attributable to the acquisition and construction of aqualifying asset are capitalised as part of the cost of the asset. Other borrowing costs arerecognised as financial expenses when incurred.

During the capitalisation period, the amount of interest (including amortisation of anydiscount or premium on borrowing) to be capitalised in each accounting period isdetermined as follows:

- Where funds are borrowed specifically for the acquisition and construction of a

qualifying asset, the amount of interest to be capitalised is the interest expensecalculated using effective interest rates during the period less any interest incomeearned from depositing the borrowed funds or any investment income on thetemporary investment of those funds before being used on the asset.

- To the extent that the Group borrows funds generally and uses them for the acquisition

and construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amountsof specific borrowings. The capitalisation rate is the weighted average of the interestrates applicable to the general-purpose borrowings. The capitalisation rate is theweighted average of the interest rates applicable to the general-purpose borrowings.

The effective interest rate is determined as the rate that exactly discounts estimatedfuture cash flow through the expected life of the borrowing or, when appropriate, a shorterperiod to the initially recognised amount of the borrowings.

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During the capitalisation period, exchange differences related to the principal and intereston a specific-purpose borrowing denominated in foreign currency are capitalised as partof the cost of the qualifying asset. The exchange differences related to the principal andinterest on foreign currency borrowings other than a specific-purpose borrowing arerecognised as a financial 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 whenexpenditure for the asset is being incurred, borrowing costs are being incurred andactivities of acquisition and construction that are necessary to prepare the asset for itsintended use are in progress, and ceases when the assets become ready for theirintended use. When the parts of the qualifying assets acquired or constructed that areeligible for capitalisation are completed separately, and each part is available for use inother parts of the construction process or can be sold externally, and for the purpose ofmaking the parts of the assets ready for use or necessary for the sales status, theacquisition or construction activities have been substantially completed, the Groupceases the capitalisation of the borrowing costs related to the parts of the assets.Capitalisation of borrowing costs is suspended when the acquisition and constructionactivities 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 andaccumulated impairment losses is amortised using the straight-line method over itsestimated useful life, unless the intangible asset is classified as held for sale (see NoteIII.29).

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 arereviewed at least at each year-end. An intangible asset is regarded as having anindefinite useful life and is not amortised when there is no foreseeable limit to the periodover which the asset is expected to generate economic benefits for the Group. At thebalance sheet date, the Group does not have any intangible assets with indefinite usefullives.

Expenditure on an internal research and development project is classified intoexpenditure incurred during the research phase and expenditure incurred during thedevelopment phase.

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Expenditure during the research phase is expensed when incurred. Expenditure duringthe development phase is capitalised if development costs can be measured reliably, theproduct or process is technically and commercially feasible, and the Group intends to andhas sufficient resources to complete the development. Capitalised development costs arestated in the balance sheet at cost less impairment losses (see Note III.19). Otherdevelopment expenditure is recognised as an expense in the period in which it isincurred.

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 assetgroups, any attributable goodwill is written off and included in the calculation of the profitor loss on disposal.

18 Long-term deferred expenses

Long-term deferred expenses are amortised using a straight-line method within thebenefit period. The respective amortisation periods for such expenses are as follows:

Item	Amortisation period (years)
?	?
Payment for public facilities construction and use	10 - 15 years
Leasehold improvements	2 - 10 years
Others	2 - 10 years

???

19 Impairment of assets other than inventories and financial assets

The carrying amounts of the following assets are reviewed at each balance sheet datebased on internal and external sources of information to determine whether there is anyindication of impairment:

- fixed assets- construction in progress- right-of-use assets- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, 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 groupor set of asset groups, which is expected to benefit from the synergies of the combinationfor the purpose of impairment testing.

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The recoverable amount of an asset (or asset group, set of asset groups) is the higher ofits fair value (see Note III.20) less costs to sell and its present value of expected futurecash flows.

An asset group is composed of assets directly related to cash generation and is thesmallest identifiable group of assets that generates cash inflows that are largelyindependent of the cash inflows from other assets or asset groups.

The present value of expected future cash flows of an asset is determined by discountingthe future cash flows, estimated to be derived from continuing use of the asset and fromits ultimate 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 anasset is less than its carrying amount. A provision for impairment of the asset isrecognised accordingly. Impairment losses related to an asset group or a set of assetgroups are allocated first to reduce the carrying amount of any goodwill allocated to theasset group or set of asset groups, and then to reduce the carrying amount of the otherassets in the asset group or set of asset groups on a pro rata basis. However, suchallocation would not reduce the carrying amount of an asset below the highest of its fairvalue less costs to sell (if measurable), its present value of expected future cash flows (ifdeterminable) 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 liabilityin an orderly transaction between market participants at the measurement date.

When measuring fair value, the Group takes into account the characteristics of theparticular asset or liability (including the condition and location of the asset andrestrictions, if any, on the sale or use of the asset) that market participants wouldconsider when pricing the asset or liability at the measurement date, and uses valuationtechniques that are appropriate in the circumstances and for which sufficient data andother information are available to measure fair value. Valuation techniques mainly includethe market approach, the income approach 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 settlethe related present obligation. Where the effect of the time value of money is material,provisions are determined by discounting the expected future cash flows. Factorspertaining to a contingency such as the risks, uncertainties and time value of money aretaken into account as a whole in reaching the best estimate. Where there is a continuousrange of possible outcomes for the expenditure required, and each possible outcome inthat range is as likely as any other, the best estimate is the mid-point of that range. Inother cases, the best estimate is determined according to the following circumstances:

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- 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 andadjusts the 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-basedpayments.

(2) Accounting treatment of share-based payments

- Equity-settled share-based payments

Where the Group uses shares or other equity instruments as consideration forservices received from the employees, the payment is measured at the fair value ofthe equity instruments granted to the employees at the grant date. If the equityinstruments granted do not vest until the completion of services for a period, or untilthe achievement of a specified performance condition, the Group recognises anamount at each balance sheet date during the vesting period based on the bestestimate of the number of equity instruments expected to vest according to the newlyobtained subsequent information of the changes of the number of the employeesexpected to vest the equity instruments. The Group measures the services received atthe grant-date fair value of the equity instruments and recognises the costs orexpenses as the services are received, with a corresponding increase in capitalreserve.

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 thecontract by transferring the control over relevant goods or services to the customers.

Where a contract has two or more performance obligations, the Group determines thestand-alone selling price at contract inception of the distinct good or service underlyingeach performance 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. Thestand-alone selling price is the price at which the Group would sell a promised good orservice separately to a customer. If a stand-alone selling price is not directly observable,the Group considers all information that is reasonably available to the entity, maximisesthe use of observable inputs to estimate the stand-alone selling price.

For the contract which the Group grants a customer the option to acquire additionalgoods or services (such as, loyalty points, discount coupons for future purchase, etc.,),the Group assesses whether the option provides a material right to the customer. If the

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option provides a material right, the Group recognises the option as a performanceobligation, and recognises revenue when those future goods or services are transferredor when the option expires. If the stand-alone selling price for a customer’s option toacquire additional goods or services is not directly observable, the Group estimates it,taking into account all relevant information, including the difference in the discount thatthe customer would receive when exercising the option or without exercising the option,and the likelihood that the option will be exercised.

For the contract with a warranty, the Group analyses the nature of the warranty provided,if the warranty provides the customer with a distinct service in addition to the assurancethat the product complies with agreed-upon specifications, the Group recognises for thepromised warranty as a performance obligation. Otherwise, the Group accounts for thewarranty in accordance 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 priceonly to the extent that it is highly probable that a significant reversal in the amount ofcumulative revenue recognised will not occur when the uncertainty associated with thevariable consideration is subsequently resolved. To determine the transaction price forcontracts in which a customer promises consideration in a form other than cash, theGroup measures the non-cash consideration at fair value. If the Group cannot reasonablyestimate the fair value of the non-cash consideration, the Group measures theconsideration indirectly by reference to the stand-alone selling price of the goods orservices promised to the customer in exchange for the consideration. Where the contractcontains a significant financing component, the Group recognises the transaction price atan amount that reflects the price that a customer would have paid for the promised goodsor services if the customer had paid cash for those goods or services when (or as) theytransfer to the customer. The difference between the amount of promised considerationand the cash selling price is amortised using an effective interest method over thecontract term. The Group does not adjust the consideration for any effects of a significantfinancing component if it expects, at contract inception, that the period between when theGroup transfers a promised good or service to a customer and when the customer paysfor that good or service will be one year or less.

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

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

Group has an enforceable right to payment for performance completed to date.

For performance obligation satisfied over time, the Group recognises revenue over timeby measuring the progress towards complete satisfaction of that performance obligation.When the outcome of that performance obligation cannot be measured reasonably, butthe Group expects to recover the costs incurred in satisfying the performance obligation,the Group recognises revenue only to the extent of the costs incurred until such time thatit can reasonably measure the outcome of the performance obligation.

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For performance obligation satisfied at a point in time, the Group recognises revenue atthe point 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 itobtains control of the specified good or service before that good or service is transferredto a customer. The Group is a principal if it controls the specified good or service beforethat good or service is transferred to a customer, and recognises revenue in the grossamount of consideration to which it has received (or receivable). Otherwise, the Group isan agent, and recognises revenue in the amount of any fee or commission to which itexpects to be entitled. The fee or commission is the net amount of consideration that theGroup retains after paying the other party the consideration, or is the established amountor 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 amountof which expected to be returned), and recognises a refund liability for the productsexpected to be returned. Meanwhile, an asset is recognised in the amount of carryingamount of the product expected to be returned less any expected costs to recover thoseproducts (including potential decreases in the value of returned products), and carryforward to cost in the amount of carrying amount of the transferred products less theabove costs. At the end of each reporting period, the Group updates its assessment offuture sales return. If there is any change, it is accounted for as a change in accountingestimate.

The Group determines whether the licence transfers to a customer either at a point intime or over time. If all of the following criteria are met, revenue is recognised forperformance obligations satisfied over time. Otherwise, revenue is recognised forperformance obligations satisfied at a point in time.

- the contract requires, or the customer reasonably expects, that the Group will

undertake activities that significantly affect the intellectual property to which the

customer has rights;- the rights granted by the licence directly expose the customer to any positive or

negative effects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as

those activities occur.

The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence 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)

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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 contractmodification as a separate contract.

- If the above criteria are not met, and the remaining goods or services are distinct from

the goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a termination of the existing contractand the creation of a new contract.

- If the above criteria are not met, and the remaining goods or services are not distinctfrom the goods or services transferred on the date of the contract modification, theGroup accounts for the contract modification as if it were a part of the existing contract.The effect that the contract modification has on the revenue is recognised as anadjustment to revenue in the reporting period.

A contract asset is the Group’s right to consideration in exchange for goods or servicesthat it has transferred to a customer when that right is conditional on something otherthan the passage of time. The Group recognises loss allowances for expected credit losson contract assets (see Note III.9(6)). Accounts receivable is the Group’s right toconsideration that is unconditional (only the passage of time is required). A contractliability is the Group’s obligation to transfer goods or services to a customer for which theGroup has received consideration (or an amount of consideration is due) from thecustomer.

The following is the description of accounting policies regarding revenue from the Group’s

principal 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 extentthat it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur. Therefore, the amount of revenue recognised isadjusted for the amount expected to be returned, which are estimated based on thehistorical data. The Group recognises a refund liability based on the amountexpected to be returned. An asset is initially measured by reference to the formercarrying amount of the product expected to be returned less any expected costs torecover those products (including potential decreases in the value to the Group ofreturned products). At each balance sheet date, the Group updates themeasurement of the refund liability for changes in expectations about the amount offunds. The above asset and liability are adjusted accordingly.

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(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 the Groupperforms. Otherwise, for performance obligation satisfied at a point in time, the Grouprecognises revenue at the point in time at which the customer obtains control of relevantservices.

24 Contract costs

Contract costs are either the incremental costs of obtaining a contract with a customer orthe costs 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 contractare expensed when incurred.

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

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

Assets recognised for the incremental costs of obtaining a contract and assetsrecognised for the costs to fulfil a contract (the “assets related to contract costs”) areamortised on a systematic basis that is consistent with the transfer to the customer of thegoods or services to which the assets relate and recognised in profit or loss for thecurrent 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 forthe goods 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.

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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 lossor included 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, theGroup participated in a defined contribution basic pension insurance plan andunemployment insurance plan in the social insurance system established and managedby government organisations, and annuity plan established by the Group in compliancewith the national policy of the corporation annuity. The Group makes contributions tobasic pension and unemployment insurance plans based on the applicable benchmarksand rates stipulated by the government. Annuity is accrued based on the gross salaries ofthe employees. Basic pension insurance contributions payable are recognised as aliability as the employee provides services, with a corresponding charge to profit or lossor included in the cost of assets where appropriate.

(3) Post-employment benefits – defined benefit plans

During the reporting period, the Group did not have defined benefit plans.

(4) Termination benefits

When the Group terminates the employment with employees before the employmentcontracts expire, or provides compensation under an offer to encourage employees toaccept voluntary redundancy, a provision is recognised with a corresponding expense inprofit or loss at the earlier of the following dates:

- When the Group cannot unilaterally withdraw the offer of termination benefits becauseof an employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it willcarry out the restructuring by starting to implement that plan or announcing its mainfeatures to those affected by it.

26 Government grants

Government grants are non-reciprocal transfers of monetary or non-monetary assetsfrom the government to the Group except for capital contributions from the government inthe capacity as an investor in the Group.

A government grant is recognised when there is reasonable assurance that the grant willbe received 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 atthe amount received or receivable. If a government grant is in the form of a transfer of anon-monetary asset, it is measured at fair value.

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Government grants related to assets are grants whose primary condition is that theGroup qualifying for them should purchase, construct or otherwise acquire long-termassets. Government grants related to income are grants other than those related toassets.

Those related to daily activities of the Company are included in other income or used towrite off related cost based on the nature of economic businesses, or included in non-operating income and expense in respect of those not related to daily activities of theCompany.

With respect to the government grants related to assets, if the Group first obtainsgovernment grants related to assets and then recognizes the long-term assets purchasedand constructed, deferred income is included in profit and loss based on a reasonableand systematic approach by stages when related assets are initially depreciated oramortized; or the deferred income is written off against the carrying amount of the assetwhen the asset becomes ready for its intended status or intended use. If the Groupobtains government grants related to the assets after relevant long-term assets are putinto use, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages within the remaining useful life of relevant assets, or thedeferred income is written off against the carrying amount of relevant asset when thegrants are obtained; the assets shall be depreciated or amortized based on the carryingamount after being offset and the remaining useful life of relevant assets.

A grant that compensates the Group for expenses or losses to be incurred in the future isrecognised as deferred income, and included in current income or offset against relatedexpenses in the periods in which the expenses or losses are recognised. Or included incurrent income or offset against the related expenses directly.

In respect of the policy-based preferential loan interest subsidy obtained by the Group, ifthe interest subsidy is appropriated to the lending bank which shall provide loans to theGroup at the policy-based preferential interest rate, the actual loan amount is used as theentry value and relevant borrowing costs are calculated on the basis of the loan principaland the preferential interest rate. If the interest subsidy is directly appropriated to theGroup, relevant borrowing costs shall be offset by corresponding interest subsidy. Ifborrowing costs are capitalized as part of the cost of the asset (see Note III. 15), theinterest subsidy shall be used to offset relevant asset costs.

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 Grouphas a legally enforceable right to set them off and also intends either to settle on a netbasis or to realise the asset and settle the liability simultaneously.

Deferred tax assets and deferred tax liabilities arise from deductible and taxabletemporary differences respectively, being the differences between the carrying amountsof assets and liabilities for financial reporting purposes and their tax bases, which includethe deductible losses and tax credits carried forward to subsequent periods. Deferred taxassets are recognised to the extent that it is probable that future taxable profits will beavailable against which deductible temporary differences can be utilised.

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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 andthat affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax isnot recognised for taxable temporary differences arising from the initial recognition ofgoodwill.

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 amountsof the assets and liabilities, using tax rates enacted at the balance sheet date that areexpected to 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, andis reduced to the extent that it is no longer probable that the related tax benefits will beutilised. Such reduction is reversed to the extent that it becomes probable that sufficienttaxable profits 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 andcurrent tax 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.

28 Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.

At inception of a contract, the Group assesses whether a contract is, or contains, a lease.A contract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset,the Group assesses whether:

- the contract involves the use of an identified asset. An identified asset may bespecified explicitly or implicitly specified in a contract and should be physically distinct,or capacity portion or other portion of an asset that is not physically distinct but itrepresents substantially all of the capacity of the asset and thereby provides thecustomer with the right to obtain substantially all of the economic benefits from the useof the asset. If the supplier has a substantive substitution right throughout the period ofuse, then the asset is not identified;- the lessee has the right to obtain substantially all of the economic benefits from use of

the asset throughout the period of use;- the lessee has the right to direct the use of the asset.

For a contract that contains more separate lease components, the lessee and the lessorseparate lease components and account for each lease component as a leaseseparately. For a contract that contains lease and non-lease components, the lessee and

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the lessor separate lease components from non-lease components. For a contract thatcontains lease and non-lease components, the lessee allocates the consideration in thecontract to each lease component on the basis of the relative stand-alone price of thelease component and the aggregate stand-alone price of the non-lease components. Thelessor allocates the consideration in the contract in accordance with the accounting policyin Note III.23.

(1) As a lessee

The Group recognises a right-of-use asset and a lease liability at the leasecommencement date. The right-of-use asset is initially measured at cost, whichcomprises the initial amount of the lease liability, any lease payments made at or beforethe commencement date (less any lease incentives received), any initial direct costsincurred and an estimate of costs to dismantle and remove the underlying asset or torestore the site on which it is located or restore the underlying asset to the conditionrequired by the terms and conditions of the lease.

The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset.Otherwise, the right-of-use asset is depreciated from the commencement date to theearlier of the end of the useful life of the right-of-use asset or the end of the lease term.Impairment losses of right-of-use assets are accounted for in accordance with theaccounting policy described in Note III.19.

The lease liability is initially measured at the present value of the lease payments that arenot paid at the commencement date, discounted using the interest rate implicit in thelease or, if that rate cannot be readily determined, the Group’s incremental borrowingrate.

A constant periodic rate is used to calculate the interest on the lease liability in eachperiod during the lease term with a corresponding charge to profit or loss or included inthe cost of assets where appropriate. Variable lease payments not included in themeasurement of the lease liability is charged to profit or loss or included in the cost ofassets where appropriate as incurred.

Under the following circumstances after the commencement date, the Group remeasureslease liabilities based on the present value of revised lease payments:

- there is a change in the amounts expected to be payable under a residual value

guarantee;- there is a change in future lease payments resulting from a change in an index or arate used to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,extension or termination option, or there is a change in the exercise of the extension ortermination option.

When the lease liability is remeasured, a corresponding adjustment is made to thecarrying amount of the right-of-use asset, or is recorded in profit or loss if the carryingamount of the right-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets.The Group recognises the lease payments associated with these leases in profit or loss

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or as the cost of the assets where appropriate using the straight-line method or othersystematic basis over the lease term.

(2) As a lessor

The Group determines at lease inception whether each lease is a finance lease or anoperating lease. A lease is classified as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset irrespective of whetherthe legal title to the asset is eventually transferred. An operating lease is a lease otherthan a finance lease.

When the Group is a sub-lessor, it assesses the lease classification of a sub-lease withreference to the right-of-use asset arising from the head lease, not with reference to theunderlying asset. If a head lease is a short-term lease to which the Group appliespractical expedient described above, then it classifies the sub-lease as an operatinglease.

Under a finance lease, at the commencement date, the Group recognises the financelease receivable and derecognises the finance lease asset. The finance lease receivableis initially measured at an amount equal to the net investment in the lease. The netinvestment in the lease is measured at the aggregate of the unguaranteed residual valueand the present value of the lease receivable that are not received at the commencementdate, discounted using the interest rate implicit in the lease.

The Group calculates and recognises interest income for each period of the lease termbased on a fixed periodic interest rate. The derecognition and impairment of the financelease receivable are recognised in accordance with the accounting policy in Note III.9.Variable lease payments not included in the measurement of net investment in the leaseare recognised as income as they are earned.

Lease receipts from operating leases is recognised as income using the straight-linemethod or other systematic basis over the lease term. The initial direct costs incurred inrespect of the operating lease are initially capitalised and subsequently amortised in profitor loss over the lease term on the same basis as the lease income. Variable leasepayments not included in lease receipts are recognised as income as they are earned.

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,together as a whole in a single transaction and liabilities directly associated with thoseassets that will be transferred in the transaction.

A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:

- According to the customary practices of selling such asset or disposal group in similar

transactions, the non-current asset or disposal group must be available for immediatesale in their present condition subject to terms that are usual and customary for salesof such assets or disposal groups;

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- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and

has obtained a firm purchase commitment. The sale is to be completed within oneyear.

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 (seenote III.9), deferred tax assets (see note III.27) . Any excess of the carrying amount overthe fair value (see Note III.20) less costs to sell is recognised as an impairment loss inprofit 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 cashflows and that are designated as being hedged and can be reliably measured. TheGroup’s hedged items include a firm commitment that is settled with a fixed amount offoreign currency and that exposes 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 hedgeditem. For a hedge of foreign currency risk, the foreign currency risk component of a non-derivative financial asset or non-derivative financial liability may also be designated as ahedging instrument provided that it is not an investment in an equity instrument for whichan entity has 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 hedginginstrument.- 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 thequantity of the hedged item that the entity actually hedges and the quantity of thehedging instrument that the entity actually uses to hedge that quantity of the hedgeditem.

When a hedging relationship no longer meets the hedge effectiveness requirements dueto the hedge ratio, but the risk management objective of the designated hedgingrelationship remains unchanged, the Group rebalances the hedging relationship.Rebalancing refers to the adjustments made to the designated quantities of the hedgeditem or the hedging instrument of an already existing hedging relationship for the purposeof maintaining a hedge ratio that complies with the hedge effectiveness requirements.

The Group discontinues applying hedge accounting in any of the following circumstances:

- The hedging relationship no longer meets the risk management objective on the basis

of which it qualified for hedge accounting.- The hedging instrument expires or is sold, terminated or exercised.

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- There is no longer an economic relationship between the hedged item and the hedging

instrument or the effect of credit risk starts to dominate the value changes that resultfrom that 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 ofthe gain 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 ofthe cash flow hedge reserve is adjusted to the lower of the following (in absoluteamounts):

- 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 thehedged item 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 assetor non-financial liability becomes a firm commitment for which fair value hedgeaccounting is applied, the Group removes that amount from the cash flow hedge reserveand includes it in the initial cost or other carrying amount of the asset or liability.

For cash flow hedges other than those covered above, that amount is reclassified fromthe cash flow hedge reserve to profit or loss as a reclassification adjustment in the sameperiod or 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 abovepolicy.- If the hedged future cash flows are no longer expected to occur, that amount is

immediately 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 balancesheet date but are disclosed in the notes separately.

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

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or joint control from another party, they are considered to be related parties. Relatedparties may be individuals or enterprises. Enterprises with which the Company is undercommon control only from the State and that have no other related party relationships arenot regarded 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 requirementsand internal reporting system after taking the materiality principle into account. Two ormore operating segments may be aggregated into a single operating segment if thesegments have the similar economic characteristics and are same or similar in respect ofthe nature of each segment’s products and services, the nature of production processes,the types or classes of customers for the products and services, the methods used todistribute the products or provide the services, and the nature of the regulatoryenvironment.

Inter-segment revenues are measured on the basis of the actual transaction prices forsuch transactions for segment reporting. Segment accounting policies are consistent withthose for the 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 amountsof assets, liabilities, income and expenses. Actual results may differ from theseestimates. Estimates as well as underlying assumptions and uncertainties involved arereviewed on an ongoing basis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised and in any future periods affected.

Except for accounting estimates relating to depreciation and amortisation of assets suchas fixed assets and intangible assets (see Notes III.13 and 16) and provision forimpairment of various types of assets (see Notes V.4, 6, 7, 8,11, 15, 16, 17 and18 andNotes XVI.2,3,5 and 6). Other significant accounting estimates are as follows:

(i) Note V.20 Recognition of deferred tax assets;(ii) Note V.31: Warranty provisions;(iii) Note IX. – Fair value measurements 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) –Disclosure of significant judgements and assumptions of control and

exercising significant influence over other entities.

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35 Changes in accounting policies

(1) Description and reasons of changes in accounting policies

In 2021, the Group has adopted the following accounting standards and implementationguidance and illustrative examples issued by the MOF, mainly include:

- CAS No.21 – Leases (Revised) (Caikuai [2018] No.35)(“New leases standard”)- The Accounting Treatment of COVID-19 Related Rent Concessions (Caikuai [2020]No.10) and Notice of Extending the Applicable Period of ‘Accounting Treatment ofCOVID-19 Related Rent Concessions’ (Caikuai [2021] No.9)- Implementation Q&As of fixed asset repair and maintenance expenses

(a) New standard on leases

New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006(“previous leases standard”). The Group has applied new leases standard since 01January 2021 and has adjusted the related accounting policies.

New leases standard refines the definition of a lease. The Group assesses whethera contract is or contains a lease in accordance with the definition in new leasesstandard. For contracts existed before the date of initial application, the Group haselected not to reassess whether a contract is or contains a lease at the date ofinitial application and surplus.

? As a lessee

Under previous leases standard, the Group classifies leases as operating orfinance leases based on its assessment of whether the lease transferssignificantly all of the risks and rewards incidental to ownership of theunderlying asset to the Group.

Under new leases standard, the Group no longer distinguishes betweenoperating leases and finance leases. The Group recognises right-of-use assetsand lease liabilities for all leases (except for short-term leases and leases oflow-value assets which are accounted for using practical expedient).

For a contract that contains lease and non-lease components, the Groupallocates the consideration in the contract to each lease component on thebasis of the relative stand-alone price of the lease component and theaggregate stand-alone price of the non-lease components.

The Group has elected to recognise the cumulative effect of adopting newleases standard as an adjustment to the opening balances of retained earningsand other related items in the financial statement in the initial year ofapplication. Comparative information has not been restated.

For leases classified as operating leases before the date of initial application,lease liabilities were measured at the present value of the remaining leasepayments, discounted using the Group’s incremental borrowing rate at the dateof initial application. Right-of-use assets are measured at:

- an amount equal to the lease liability, adjusted by the amount of any prepaidlease payments – the Group applied this approach to all leases.

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The Group also uses the following practical expedients to account for leasesclassified as operating leases before the date of initial application:

- accounted for the leases for which the lease term ends within 12 months ofthe date of initial application as short-term leases;- applied a single discount rate to leases with similar characteristics whenmeasuring lease liabilities;- determined the lease term according to the actual implementation or otherupdates of options before the date of initial application if the contractcontains options to extend or terminate the lease;- accounted for lease modifications before the initial year of application

according to the final arrangement of the change under new leases standardwithout retrospective adjustments.

For leases classified as finance leases before the date of initial application, theright-of-use asset and the lease liability are measured at the original carryingamount of the assets under finance lease and obligations under finance leasesat the date of initial application.

? As a lessor

The Group is not required to make any adjustments to the opening balances ofretained earnings and other related items in the financial statements in theinitial year of application and surplus for leases for which it acts as a lessor.The Group has applied new leases standard since the date of initial application.The Group applies the requirements of transaction price allocation under thenew revenue standard to allocate consideration in the contract to each leaseand non-lease component under new leases standard.

? Effect of the application of new leases standard since 1 January 2021 onfinancial statementsWhen measuring lease liabilities, the Group discounted lease payments usingits incremental borrowing rate at 1 January 2021. The weighted averageinterest rate used by the Group is 4.62%.

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The effects on each of the line items in the consolidated balance sheet and companybalance sheet as a1 January 2020 are analysed as follows:

?	The Group
?	31 December 2020	1 January 2021	Adjustments
Assets	?	?	?
?	?	?	?
Current assets:	?	?	?
Cash at bank and on hand	73,694,296,095	73,694,296,095	-
Financial assets held for trading	4,367,201,833	4,367,201,833	-
Bills receivable	215,994,373	215,994,373	-
Accounts receivable	22,969,140,355	22,969,140,355	-
Prepayments	1,119,595,984	1,104,522,441	(15,073,543)
Other receivables	658,114,833	658,114,833	-
Inventories	17,875,454,490	17,875,454,490	-
Contract assets	49,897,395	49,897,395	-
Assets held for sale	186,892,645	186,892,645	-
Other current assets	7,848,869,252	7,848,869,252	-
?	?	?	?
Total current assets	128,985,457,255	128,970,383,712	(15,073,543)
?	?	?	?
Non-current assets:	?	?	?
?	?	?	?
Long-term equity investments	3,693,170,224	3,693,170,224	-
Investments in other equity instruments	533,645,423	533,645,423	-
Investment properties	1,196,168,511	1,196,168,511	-
Fixed assets	224,866,586,069	224,770,354,605	(96,231,464)
Construction in progress	42,575,849,952	42,575,849,952	-
Right-of-use assets	-	618,678,956	618,678,956
Intangible assets	11,875,926,448	11,875,926,448	-
Goodwill	1,400,357,242	1,400,357,242	-
Long-term deferred expenses	299,634,100	285,653,485	(13,980,615)
Deferred tax assets	205,041,088	205,041,088	-
Other non-current assets	8,624,970,019	8,624,970,019	-
?	?	?	?
Total non-current assets	295,271,349,076	295,779,815,953	508,466,877
?	?	?	?
?
?	?	?	?
Total assets	424,256,806,331	424,750,199,665	493,393,334

Page 69

?	The Group
?	31 December 2020	?	1 January 2021	Adjustments
Liabilities and shareholders’ equity	?		?	?
?	?		?	?
Current liabilities	?		?	?
Short-term loans	8,599,569,471		8,599,569,471	-
Bills payable	1,231,533,895		1,231,533,895	-
Accounts payable	27,164,171,682		27,164,171,682	-
Advance payments received	124,040,749		124,040,749	-
Contract liabilities	3,440,720,535		3,440,720,535	-
Employee benefits payable	3,758,623,797		3,758,623,797	-
Taxes payable	1,077,686,869		1,077,686,869	-
Other payables	32,867,709,024		32,867,709,024	-
Non-current liabilities due within one year	24,500,550,121		24,546,750,328	46,200,207
Other current liabilities	2,194,716,852		2,194,716,852	-
?	?		?	?
Total current liabilities	104,959,322,995		105,005,523,202	46,200,207
?	?		?	?
Non-current liabilities:	?		?	?
Long-term loans	132,452,767,135		132,452,767,135	-
Debentures payable	398,971,739		398,971,739	-
Lease liabilities	-		549,031,243	549,031,243
Long-term payables	2,114,175,683		2,012,337,567	(101,838,116)
Deferred income	4,246,231,468		4,246,231,468	-
Deferred tax liabilities	1,427,601,154		1,427,601,154	-
Other non-current liabilities	5,260,001,443		5,260,001,443	-
?	?		?	?
Total non-current liabilities	145,899,748,622		146,346,941,749	447,193,127
?
?	?		?	?
Total liabilities	250,859,071,617		251,352,464,951	493,393,334
?
?	?		?	?
Shareholders’ equity:	?		?	?
Share capital	34,798,398,763		34,798,398,763	-
Other equity instruments	14,146,997,427		14,146,997,427	-
Capital reserve	37,435,655,934		37,435,655,934	-
Less: Treasury shares	1,036,298,508		1,036,298,508	-
Other comprehensive income for the year	(22,198,072)		(22,198,072)	-
Surplus reserve	2,444,416,669		2,444,416,669	-
Retained earnings	15,509,794,622		15,509,794,622	?
?	?		?	?
Total equity attributable to shareholders of the Company	103,276,766,835		103,276,766,835	-
?	?		?	?
Non-controlling interests	70,120,967,879		70,120,967,879	-
?	?		?	?
Total	173,397,734,714		173,397,734,714	-
?	?		?	?
?	?		?	?
Total liabilities and shareholders’ equity	424,256,806,331		424,750,199,665	493,393,334

Page 70

?	The Company
?	31 December 2020	?	1 January 2021	Adjustments
Assets	?		?	?
?	?		?	?
Current assets:	?		?	?
Cash at bank and on hand	4,375,497,010		4,375,497,010	-
Accounts receivable	3,974,212,308		3,974,212,308	-
Prepayments	12,185,651		12,185,651	-
Other receivables	16,345,474,583		16,345,474,583	-
Inventories	18,622,283		18,622,283	-
Other current assets	177,761,718		177,761,718	-
?	?		?	?
Total current assets	24,903,753,553		24,903,753,553	-
?	?		?	?
Non-current assets:	?		?	?
?	?		?	?
Long-term equity investments	182,135,057,208		182,135,057,208	-
Investments in other equity instruments	81,192,872		81,192,872	-
Investment properties	271,212,241		271,212,241	-
Fixed assets	1,009,178,229		1,002,750,947	(6,427,282)
Right-of-use assets	-		6,427,282	6,427,282
Construction in progress	418,343,961		418,343,961	?
Intangible assets	1,380,069,827		1,380,069,827	-
Long-term deferred expenses	105,439,681		105,439,681	-
Other non-current assets	2,611,437,988		2,611,437,988	-
?	?		?	?
Total non-current assets	188,011,932,007		188,011,932,007	-
?	?		?	?
?	?		?	?
Total assets	212,915,685,560		212,915,685,560	-

Page 71

?	The Company
?	31 December 2020	1 January 2021	?	Adjustments
Liabilities and shareholders’ equity	?	?		?
?	?	?		?
Current liabilities	?	?		?
Accounts payable	272,241,469	272,241,469		-
Advance payments received	18,286,458	18,286,458		-
Employee benefits payable	516,060,153	516,060,153		-
Taxes payable	87,179,892	87,179,892		-
Other payables	6,541,918,681	6,541,918,681		-
Non-current liabilities due within one year	7,847,210,073	7,847,210,073		-
Other current liabilities	1,977,977	1,977,977		-
?	?	?		?
Total current liabilities	15,284,874,703	15,284,874,703		-
?	?	?		?
Non-current liabilities:	?	?		?
Long-term loans	38,360,714,121	38,360,714,121		-
Deferred income	3,633,342,446	3,633,342,446		-
Deferred tax liabilities	385,697,604	385,697,604		?
Other non-current liabilities	56,156,661,805	56,156,661,805		-
?	?	?		?
Total non-current liabilities	98,536,415,976	98,536,415,976		-
?	?	?		?
?	?	?		?
Total liabilities	113,821,290,679	113,821,290,679		-
?
?	?	?		?
Shareholders’ equity:	?	?		?
Share capital	34,798,398,763	34,798,398,763		-
Other equity instruments	14,146,997,427	14,146,997,427		-
Capital reserve	36,696,079,366	36,696,079,366		-
Less: Treasury shares	1,036,298,508	1,036,298,508		?
Other comprehensive income for the year	90,713,133	90,713,133		-
Surplus reserve	2,444,416,669	2,444,416,669		-
Retained earnings	11,954,088,031	11,954,088,031		-
?	?	?		?
Total	99,094,394,881	99,094,394,881		-
?	?	?		?
?	?	?		?
Total liabilities and shareholders’ equity	212,915,685,560	212,915,685,560		-

Page 72

(b) Caikuai [2020] No.10 and Caikuai [2021] No.9

The Accounting Treatment of COVID-19 Related Rent Concessions Caikuai [2020] No.10provides a practical expedient under certain conditions for rent concessions occurring asa direct consequence of the Covid-19 pandemic. If an entity elects to apply the practicalexpedient, the entity does not need to assess whether a lease modification has occurredor to reassess the lease classification. Combining the requirements of Caikuai [2021]No.9, such practical expedient is only applicable to any reduction in lease payments duebefore 30 June 2022.

The adoption of the above regulations does not have significant effect on the financialposition and financial performance of the Group.

(i) Presentation of fixed asset repair and maintenance expenses

The routine fixed assets repair and maintenance expenses relating to production andprocessing activities that do not qualify for capitalisation as subsequent expenditures onfixed assets were directly recognised as "general and administrative expenses".According to the implementation question and answer on fixed asset repair andmaintenance expenses issued by the MOF, the above repair and maintenance expensesshould be recognised in profit and loss according to their functions or capitalised as thecosts of relevant asset when incurred. Repair and maintenance expenses relating to theproduction and conversion of inventories are accounted for in accordance with therecognition principle of inventory costs. The Group has applied the above changes inaccounting policies retrospectively.

(ii) Effects on financial reports

There are no effects on each of the line items in the consolidated balance sheet andcompany balance sheet as at 31 December 2021.

The effects on each of the line items in the consolidated income statement and companyincome statement as at 31 December 2021 are analysed as follows:

	Increase/(decrease) in the line items as a result of applying new accounting policies
	The Group
Operating costs	2,254,438,484
Selling and distribution expenses	812,078
General and administrative expenses	(2,276,273,447)
Research and development expenses	21,022,885
Profit before income tax	-
Less: Income tax expenses	-
Net profit	-
Attributable to: Shareholders of the Company	-
Non-controlling interests	-

Page 73

There are no effects on each of the line items in the consolidated balance sheet andcompany balance sheet as at 31 December 2020 and 1 January 2020.

The effects on each of the line items in the consolidated income statement and companyincome statement as at 31 December 2020 are analysed as follows:

	Increase/(decrease) in the line items as a result of applying new accounting policies
	The Group
Operating costs	1,586,759,448
Selling and distribution expenses	564,645
General and administrative expenses	(1,603,328,879)
Research and development expenses	16,004,786
Profit before income tax	-
Less: Income tax expenses	-
Net profit	-
Attributable to: Shareholders of the Company	-
Non-controlling interests	-

Page 74

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%, 13%
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% - 30%

???

2 Corporate income tax

The income tax rate applicable to the Company for the year is 15% (2020: 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 Tax Service, StateTaxation Administration. The Company is subject to corporate income tax rate of 15% sincethe date of certification with the valid period of three years.

The income tax rate applicable to other subsidiaries of the Group is 25% other than thefollowing subsidiaries and the overseas subsidiaries which subject to the local income taxrate.

The subsidiaries that are entitled to preferential tax treatments are as follows:

???

Company name

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

Page 75

Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics)	15%	?	High-tech Enterprise
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%		Encouraged enterprise in Western Regions
Beijing Smart-aero Display Technology Co., Ltd. (Smart-aero)	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 Display Technology Co., Ltd. (Hefei Technology)	15%		High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE)	15%		High-tech Enterprise
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 BOE Display Technology Co., Ltd. (Nanjing Technology)	15%		High-tech Enterprise
Chengdu CEC Panda Display Technology Co., Ltd. (Chengdu CEC Panda)	15%		High-tech Enterprise
BOE Regenerative Medical Technology Co., Ltd. (Regenerative Medical)	15%		High-tech Enterprise
Beijing Zhongxiangying Technology Co., Ltd. (Beijing Zhongxiangying)	15%		High-tech Enterprise
Chengdu BOE Intelligent Technology Co., Ltd. (Chengdu Intelligent Technology)	15%		Encouraged enterprise in Western Regions
Yunnan Invensight Optoelectronics Technology Co., Ltd. (Yunnan Invensight)	15%		High-tech Enterprise

???

Page 76

V. Notes to the consolidated financial statements

1 Cash at bank and on hand

?	2021					?	2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	336,429	?	?	?	?	?	277,055
USD	1,480	?	6.3757	?	9,438	?	1,493	?	6.5249	?	9,741
HKD	35,673	?	0.8176	?	29,166	?	55,494	?	0.8416	?	46,706
JPY	528,014	?	0.0554	?	29,252	?	58,474	?	0.0632	?	3,698
KRW	70,185	?	0.0054	?	379	?	490,445	?	0.0060	?	2,941
Other foreign currencies	?	?	?	?	47,311	?	?	?	?	?	60,900
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	451,975	?	?	?	?	?	401,041
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	51,889,193,811	?	?	?	?	?	39,618,620,160
USD	3,615,879,387	?	6.3757	?	23,053,762,209	?	4,051,241,539	?	6.5249	?	26,433,945,919
HKD	9,520,528	?	0.8176	?	7,783,984	?	21,037,675	?	0.8416	?	17,706,149
JPY	13,848,652,635	?	0.0554	?	767,215,356	?	15,628,343,064	?	0.0632	?	988,273,902
KRW	1,094,268,704	?	0.0054	?	5,909,051	?	521,128,601	?	0.0060	?	3,125,209
EUR	135,902,777	?	7.2197	?	981,177,279	?	136,705,809	?	8.0250	?	1,097,064,115
Other foreign currencies	?	?	?	?	55,392,165	?	?	?	?	?	46,443,965
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	76,760,433,855	?	?	?	?	?	68,205,179,419
?	?	?	?	?	?	?	?	?	?	?	?
Other monetary funds	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	3,857,498,365	?	?	?	?	?	3,949,848,676
USD	49,772,132	?	6.3757	?	317,332,183	?	218,704,451	?	6.5249	?	1,427,024,669
HKD	7	?	0.8176	?	6	?	15	?	0.8416	?	13
JPY	922,720,289	?	0.0554	?	51,118,704	?	1,769,656,282	?	0.0632	?	111,842,277
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	4,225,949,258	?	?	?	?	?	5,488,715,635
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	80,986,835,088	?	?	?	?	?	73,694,296,095

???

Including: Total overseas deposits were equivalent to RMB 7,197,634,319 (2020: RMB7,025,632,935).

As at 31 December 2021, other monetary funds included deposits with securities companiesby the Group amounting to RMB 73,244,093, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB 91,976,204 was pledged forissuance of bills payable, and an equivalent to RMB 4,060,728,961 was mainly deposits incommercial banks as security.

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.

Page 77

2 Financial assets held for trading

Item	31 December 2021	?	31 December 2020
?	?	?	?
Financial assets at fair value through profit or loss	?	?	?
- Structured deposit and wealth management products	10,028,172,853	?	4,367,201,833

???

3 Bills receivable

(1) Classification of bills receivable

???Item

Item	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Bank acceptance bills	?	217,734,298	?	215,994,373
?	?	?	?	?
Total	?	217,734,298	?	215,994,373

???

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 2021, the amount of the Group’s pledged bills was RMB 8,441,900(2020: Nil).

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

???

Item

Item	?	Amount derecognised	?	Amount not derecognised
?	?	as at 31 December 2021	?	as at 31 December 2021
?	?	?	?	?
Bank acceptance bills	?	130,058,540	?	15,460,955
?	?	?	?	?
Total	?	130,058,540	?	15,460,955

???

For the year ended 31 December 2021, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2020:

Nil).

Page 78

4 Accounts receivable

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

Item	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Amounts due from related parties	?	88,954,909	?	38,773,536
Amounts due from other customers	?	35,496,227,051	?	22,988,229,841
?	?	?	?	?
Sub-total	?	35,585,181,960	?	23,027,003,377
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	81,767,140	?	57,863,022
?	?	?	?	?
Total	?	35,503,414,820	?	22,969,140,355

???

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

????

?	2021					?	2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	12,064,153,278	?	?	?	?	?	8,322,396,079
USD	3,551,733,364	?	6.3757	?	22,644,786,409	?	2,136,679,897	?	6.5249	?	13,941,622,660
JPY	1,985,544	?	0.0554	?	109,999	?	36,855,786	?	0.0632	?	2,329,286
Other foreign currencies	?	?	?	?	876,132,274	?	?	?	?	?	760,655,352
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	35,585,181,960	?	?	?	?	?	23,027,003,377
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	81,767,140	?	?	?	?	?	57,863,022
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	35,503,414,820	?	?	?	?	?	22,969,140,355

???

Page 79

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

?	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Within 1 year (inclusive)	?	35,052,439,412	?	22,515,188,628
Over 1 year but within 2 years (inclusive)	?	190,180,631	?	256,800,012
Over 2 years but within 3 years (inclusive)	?	181,687,107	?	172,351,904
Over 3 years	?	160,874,810	?	82,662,833
?	?	?	?	?
Sub-total	?	35,585,181,960	?	23,027,003,377
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	81,767,140	?	57,863,022
?	?	?	?	?
Total	?	35,503,414,820	?	22,969,140,355

???

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

(4) Accounts receivable by provisioning method

????

?	31 December 2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	66,060,901	?	0%	?	46,406,137	?	70%	?	19,654,764
- Customers with low credit risk	1,209,167,604	?	4%	?	-	?	0%	?	1,209,167,604
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	34,309,953,455	?	96%	?	35,361,003	?	0%	?	34,274,592,452
?	?	?	?	?	?	?	?	?	?
Total	35,585,181,960	?	100%	?	81,767,140	?	0%	?	35,503,414,820

???

?	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

Page 80

(a) Criteria for collective assessment in 2021 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 2021:

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 2021	?	31 December 2020
?	?	?	?
Balance at the beginning of the year	57,863,022	?	348,005,298
Charge during the year	48,438,509	?	13,048,035
Recoveries during the year	(20,188,349)	?	(15,387,358)
Written-off during the year	(3,474,488)	?	(285,159,459)
Translation differences	(871,554)	?	(2,643,494)
?	?	?	?
Balance at the end of the year	81,767,140	?	57,863,022

???

(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 RMB16,114,382,450, representing 45% of the total accounts receivable, and no provision wasmade for bad and doubtful debts after assessment.

Page 81

5 Prepayments

(1) The Group’s prepayments by category:

?	?	31 December 2021	?	1 January 2021	?	31 December 2020
?	?	?	?	?	?	?
Prepayment for inventory	?	648,790,765	?	617,801,035	?	617,801,035
Prepayment for electricity, water, gas and power	?	299,002,465	?	230,580,992	?	230,580,992
Others	?	174,086,777	?	256,140,414	?	271,213,957
?	?	?	?	?	?	?
Total	?	1,112,880,007	?	1,104,522,441	?	1,119,595,984

???

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

????

?	31 December 2021			?	1 January 2021			?	31 December 2020
Ageing	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)
?	?	?	?	?	?	?	?	?	?	?	?
Within 1 year (inclusive)	1,088,149,020	?	98%	?	993,574,554	?	90%	?	1,008,648,097	?	90%
Over 1 year but within 2 years (inclusive)	9,828,654	?	1%	?	18,143,348	?	2%	?	18,143,348	?	2%
Over 2 years but within 3 years (inclusive)	2,531,759	?	0%	?	84,733,056	?	8%	?	84,733,056	?	8%
Over 3 years	12,370,574	?	1%	?	8,071,483	?	1%	?	8,071,483	?	-
?	?	?	?	?	?	?	?	?	?	?	?
Total	1,112,880,007	?	100%	?	1,104,522,441	?	100%	?	1,119,595,984	?	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 RMB749,974,172, representing 67% of the total prepayments.

Page 82

6 Other receivables

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Interest receivable	?	-	?	2,037,452
Dividends receivable	?	2,414,503	?	1,842,137
Others	(1)	1,920,413,875	?	654,235,244
?	?	?	?	?
Total	?	1,922,828,378	?	658,114,833

???

(1) Others

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

???Customer type

Customer type	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Amounts due from related parties	?	1,901,777	?	14,062,445
Amounts due from other customers	?	1,927,555,914	?	649,216,811
?	?	?	?	?
Sub-total	?	1,929,457,691	?	663,279,256
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,043,816	?	9,044,012
?	?	?	?	?
Total	?	1,920,413,875	?	654,235,244

???

Page 83

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

?	31 December 2021					?	31 December 2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	808,428,477	?	?	?	?	?	577,989,243
USD	170,390,641	?	6.3757	?	1,086,359,610	?	7,746,274	?	6.5249	?	50,543,663
JPY	-	?	-	?	-	?	35,289,875	?	0.0632	?	2,230,320
Other foreign currencies	?	?	?	?	34,669,604	?	?	?	?	?	32,516,030
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,929,457,691	?	?	?	?	?	663,279,256
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	9,043,816	?	?	?	?	?	9,044,012
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	1,920,413,875	?	?	?	?	?	654,235,244

???

????

?	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Within 1 year (inclusive)	?	1,637,506,264	?	336,023,652
Over 1 year but within 2 years (inclusive)	?	21,232,566	?	65,883,117
Over 2 years but within 3 years (inclusive)	?	24,183,841	?	18,983,553
Over 3 years	?	246,535,020	?	242,388,934
?	?	?	?	?
Sub-total	?	1,929,457,691	?	663,279,256
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,043,816	?	9,044,012
?	?	?	?	?
Total	?	1,920,413,875	?	654,235,244

???

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

Page 84

(d) Other receivables by provisioning method

?	31 December 2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	9,043,816	?	0%	?	9,043,816	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	1,920,413,875	?	100%	?	-	?	0%	?	1,920,413,875
?	?	?	?	?	?	?	?	?	?
Total	1,929,457,691	?	100%	?	9,043,816	?	0%	?	1,920,413,875

???

?	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

(e) Movements of provisions for bad and doubtful debts

???

?	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Balance at the beginning of the year	?	9,044,012	?	8,636,111
Charge during the year	?	275,661	?	572,266
Recoveries during the year	?	(115,952)	?	(60,462)
Written-off during the year	?	(159,905)	?	(103,903)
?	?	?	?	?
Balance at the end of the year	?	9,043,816	?	9,044,012

???

Page 85

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

Nature	?	31 December 2021	?	31 December 2020
?	?	?	?	?
VAT refunds and export tax rebate	?	253,311	?	41,149,236
Amounts due from equity transfer	?	200,000,000	?	200,000,000
Surety and deposits	Note	1,518,208,550	?	171,340,282
Others	?	210,995,830	?	250,789,738
?	?	?	?	?
Sub-total	?	1,929,457,691	?	663,279,256
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	9,043,816	?	9,044,012
?	?	?	?	?
Total	?	1,920,413,875	?	654,235,244

???

Note: As at 31 December 2021, an equivalent to RMB 1,056,493,338 of the surety anddeposits mainly represented production capacity surety paid by the Group to suppliers.

(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 RMB1,328,573,338, most of which were surety and amounts due from equity transfer. Noprovision is made for bad and doubtful debts after assessment.

Page 86

7 Inventories

(1) The Group’s inventories by category:

?	31 December 2021					?	31 December 2020
?	Book value	?	Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer ?	?	Carrying amount	?	Book value	?	Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
Raw materials	12,000,601,448	?	2,083,190,076	?	9,917,411,372	?	8,068,822,655	?	933,491,391	?	7,135,331,264
Work in progress	4,080,474,691	?	732,973,017	?	3,347,501,674	?	2,811,789,420	?	583,885,537	?	2,227,903,883
Finished goods	17,057,256,799	?	2,795,564,803	?	14,261,691,996	?	10,074,715,347	?	1,767,518,826	?	8,307,196,521
Consumables	130,472,966	?	-	?	130,472,966	?	162,817,575	?	-	?	162,817,575
Costs to fulfil a contract with a customer	67,728,931	?	-	?	67,728,931	?	42,205,247	?	-	?	42,205,247
?	?	?	?	?	?	?	?	?	?	?	?
Total	33,336,534,835	?	5,611,727,896	?	27,724,806,939	?	21,160,350,244	?	3,284,895,754	?	17,875,454,490

???

As at 31 December 2021, there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2020: Nil).

As at 31 December 2021, the Group had no inventory used as collateral (2020: Nil).

Page 87

(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	933,491,391	?	1,531,584,144	?	(332,196,932)	?	(49,688,527)	?	2,083,190,076
Work in progress	583,885,537	?	501,332,796	?	(273,342,622)	?	(78,902,694)	?	732,973,017
Finished goods	1,767,518,826	?	2,616,006,445	?	(605,753,391)	?	(982,207,077)	?	2,795,564,803
?	?	?	?	?	?	?	?	?	?
Total	3,284,895,754	?	4,648,923,385	?	(1,211,292,945)	?	(1,110,798,298)	?	5,611,727,896

???

Page 88

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:

?	?	2021
?	?	RMB
Balance at the beginning of the year	?	49,897,395
?	?	?
Transfers from contract assets recognised at the beginning of the year to receivables	?	(34,634,630)
Increase in contract assets resulting from no unconditional right obtained	?	62,760,207
Decrease from disposal of subsidiaries	?	(2,324,648)
?	?	?
Balance at 31 December 2021	?	75,698,324

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

?	2021	2020
?	?	?
Balance at the beginning of the year	207,800	-
Additions during the year	-?	207,800
Recoveries during the year	-?	-
Written-off during the year	?	?
Decrease from disposal of subsidiaries	(207,800)	-
?	?	?
Balance at the end of the year	-	207,800

Page 89

9 Assets held for sale

As at 31 December 2020, the Assets held for Sale by the Group were real estate and otherattachments of The Company's subsidiary, Gaochuang (Suzhou) Electronics Co., Ltd,located in Wujiang Economic and Technological Development Zone, and the disposal of therelevant assets was completed in March 2021, and the relevant proceeds ofRMB156,565,635 were recorded in the gain on asset disposal (Note V. 55).

10 Other current assets

?	?	31 December 2021	?	31 December 2020
?	?	?	?	?
VAT on tax credits	?	2,643,490,711	?	6,447,432,350
Input tax to be verified or deducted	?	575,209,816	?	1,068,285,033
Prepaid income taxes	?	20,739,659	?	23,710,045
Costs receivables for recovering products from a customer	?	126,447,496	?	131,986,424
Others	?	213,032,028	?	177,455,400
?	?	?	?	?
Total	?	3,578,919,710	?	7,848,869,252

???

11 Long-term equity investments

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

???

?	2021	?	2020
?	?	?	?
Investments in associates	7,066,228,472	?	4,722,215,043
?	?	?	?
Sub-total	7,066,228,472	?	4,722,215,043
?	?	?	?
Less: Provision for impairment	1,025,280,155	?	1,029,044,819
?	?	?	?
Total	6,040,948,317	?	3,693,170,224

???

Page 90

(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.

263,858

1,749,280

2,013,138

Beijing Nittan Electronic Co., Ltd.

71,396,821

9,399,420

(3,200,000)

77,596,241

Erdos BOE Energy Investment Co., Ltd.

906,163,137

502,802,600

(1,023,101)

1,724,197

1,409,666,833

Beijing Infi-Hailin Venture Investment Co., Ltd.

1,166,524

(1,166,524)

Beijing Infi-Hailin Venture Investment (Limited Partnership)

38,376,800

(38,376,800)

TPV Display Technology (China) Limited

24,828,264

3,631,573

28,459,837

Beijing Xindongneng Investment Fund (Limited Partnership)

2,058,142,325

(813,699,978)

805,886,583

38,588,937

2,088,917,867

Beijing Xindongneng Investment Management Co., Ltd.

7,921,626

2,718,868

(2,000,000)

8,640,494

Shenzhen Yunyinggu Technology Co., Ltd.

21,910,887

(3,878,846)

(188,015)

23,249,160

41,093,186

Beijing Xloong Technologies Co., Ltd.

19,766,940

551,530

773,082

21,091,552

Beijing Innovation Industry Investment Co., Ltd.

204,063,254

3,501,319

207,564,573

Beijing Electric Control Industry Investment Co., Ltd.

200,283,114

1,271,160

30,223,283

231,777,557

BOE Art Cloud Technology Co., Ltd. (formerly known as Hunan BOE Art Cloud Technology Co., Ltd.)

253,630,000

860,000

4,687,852

27,798,537

286,976,389

New on Technology Co., Ltd.

2,400,038

(263,848)

(94,195)

(62,966)

1,979,029

Cnoga Medical Co., Ltd.

266,520,324

(6,793,598)

(215,626)

(6,010,035)

253,501,065

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

2,426,909

(59,737)

2,367,172

Hefei Jiangcheng Technology Co., Ltd. (formerly known as Shenzhen Jiangcheng Technology Co., Ltd.)

5,011,461

(4,800,960)

(143,214)

(67,287)

BOE Houji Technology (Beijing) Co., Ltd.

917,633

10,128

927,761

Tianjin Xianzhilian Investment Centre (Limited Partnership)

474,207,278

117,000,000

379,433,402

(2,298,800)

968,341,880

BioChain (Beijing) Science & Technology, Inc.

200,203,487

150,000,000

(10,358,233)

339,845,254

Tianjin Xianzhilian Investment Management Centre (Limited Partnership)

991,163

11,757,469

(8,100,000)

4,648,632

Guoke BOE (Shanghai) Equity Investment Management Co., Ltd.

2,571,400

(1,387,888)

1,183,512

Beijing BOE Microbial Technology Co., Ltd.

22,500,000

(2,457,064)

20,042,936

Beijing YanDong MicroElectronic Co., Ltd.

1,000,000,000

9,985,276

1,009,985,276

Chongqing BOE Smart Private Equity Investment Fund Partnership (Limited Partnership)

60,000,000

(391,712)

59,608,288

Sub-total

4,722,215,043

1,855,734,000

(818,500,938)

1,245,036,895

68,530,010

51,030,550

(51,676,800)

(6,140,288)

7,066,228,472

Less: Provision for impairment

1,029,044,819

1,025,280,155

Total

3,693,170,224

6,040,948,317

Page 91

As at 31 December 2021, 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 2021,the accumulated unrecognised investment losses were RMB 20,352,876 (2020: RMB18,207,308). During year ended 31 December 2021, Beijing Infi-Hailin Venture InvestmentCo., Ltd. suffered continuous loss and the Group does not have an obligation to assumeadditional losses. Therefore, the Company discontinues recognising its share of furtherlosses after the carrying amount of long-term equity investment is reduced to zero. As at 31December 2021, the accumulated unrecognised investment losses were RMB 1,152,818(2020: Nil).The change in the carrying amount of the Group's long term equity investment was mainlydue to the exchange translation of foreign currencies for the year ended 31 December 2021.

12 Investments in other equity instruments

Item	31 December 2021	?	31 December 2020
?	?	?	?
Listed equity instruments investment	?	?	?
- Beijing Electronic City High Tech Group Co., Ltd.	56,638,836	?	74,372,840
- Bank of Chongqing Co., Ltd.	91,875,688	?	102,845,668
- New Century Medical Holding Co., Ltd.	19,810,485	?	36,995,513
?	?	?	?
Unlisted equity instruments investment	?	?	?
- 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.	31,878,500	?	32,624,500
—Danhua Capital II, L.P.	63,757,002	?	65,249,007
—Kateeva Inc.	76,157,736	?	77,939,931
—MOOV INC.	25,608,316	?	26,207,585
—ZGLUE INC.	-	?	-
—Nanosys INC	47,817,750	?	48,936,750
—Ceribell INC	8,288,403	?	8,482,363
—Baebies INC	28,012,830	?	28,668,368
—Illumina Fund I,L.P.	25,607,407	?	21,320,235
—ACQIS Technology, Inc.	1,275,140	?	1,304,980
—KA IMAGING INC.	1,834,716	?	1,877,651
- Beijing Dongfang Electronic Industry Co., Ltd.	-	?	-
—Qingdao Ultra HD Video Innovation Technology Co., Ltd.	500,000	?	-
—Beijing Horizon Robotics Technology Development Co., Ltd.	31,722,880	?	-
—Nanjing Xinjiayuan Technology Co., Ltd.	1,482,425	?	-
?	?	?	?
Total	519,088,146	?	533,645,423

???

Page 92

(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	?	1,924,620	?	(33,521,592)	?	-	?	Not applicable
- Bank of Chongqing Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	9,345,312	?	(28,208,687)	?	-	?	Not applicable
- New Century Medical Holding Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(121,038,365)	?	-	?	Not applicable
?	?	?	?	?	?	?	?	?	?
Unlisted equity instruments investment	?	?	?	?	?	?	?	?	?
- 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	?	1,629,959	?	-	?	-	?	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	?	9,351,967	?	(2,647,875)	?	-	?	Not applicable
—Danhua Capital II, L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(3,890,749)	?	-	?	Not applicable
—Kateeva Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(6,704,730)	?	-	?	Not applicable
—MOOV INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(2,254,523)	?	-	?	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	?	-	?	(2,531,250)	?	-	?	Not applicable

Page 93

—Ceribell INC	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(373,880)	?	-	?	Not applicable
—Baebies INC	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(1,110,724)	?	-	?	Not applicable
—Illumina Fund I,L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	2,443,891	?	(1,359,948)	?	-	?	Not applicable
—ACQIS Technology, Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(288,820)	?	-	?	Not applicable
—KA IMAGING INC.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(172,804)	?	-	?	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
—Qingdao Ultra HD Video Innovation Technology Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	-	?	-	?	Not applicable
—Beijing Horizon Robotics Technology Development Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(231,620)	?	-	?	Not applicable
—Nanjing Xinjiayuan Technology Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(517,575)	?	-	?	Not applicable
?	?	?	?	?	?	?	?	?	?
Total	?	?	24,695,749	?	(215,438,630)	?	-	?	?

???

13 Other non-current financial assets

???

Item

Item	2021	?	2020
Financial assets at fair value through profit or loss	606,895,447	?	-
Including: Investments in equity instruments	606,895,447	?	-
?	?	?	?
Total	606,895,447	?	-

Page 94

14 Investment properties

?	?	Land use rights	?	Buildings	?	Total
?	?	?	?	?	?	?
Cost	?	?	?	?	?	?
Balance at the beginning of the year	?	687,434,677	?	1,016,178,842	?	1,703,613,519
Additions during the year	?	-	?	6,653,127	?	6,653,127
?	?	?	?	?	?	?
Balance at the end of the year	?	687,434,677	?	1,022,831,969	?	1,710,266,646
?	?	?	?	?	?	?
Less: Accumulated depreciation or amortisation	?	?	?	?	?	?
Balance at the beginning of the year	?	154,651,171	?	352,793,837	?	507,445,008
Additions during the year	?	13,366,634	?	31,089,603	?	44,456,237
?	?	?	?	?	?	?
Balance at the end of the year	?	168,017,805	?	383,883,440	?	551,901,245
?	?	?	?	?	?	?
?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?
At the end of the year	?	519,416,872	?	638,948,529	?	1,158,365,401
?	?	?	?	?	?	?
At the beginning of the year	?	532,783,506	?	663,385,005	?	1,196,168,511

???

Page 95

15 Fixed assets

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

Item	Plant & buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at 31 December 2020	62,378,026,148	?	260,176,443,634	?	6,938,507,880	?	329,492,977,662
Changes in accounting policies (Note III.35)	(11,291,665)	?	(107,357,735)	?	-	?	(118,649,400)
?	?	?	?	?	?	?	-
Balance at 1 January 2021	62,366,734,483	?	260,069,085,899	?	6,938,507,880	?	329,374,328,262
Additions during the year	?	?	?	?	?	?	-
- Purchases	61,284,801	?	694,000,783	?	1,491,643,310	?	2,246,928,894
- Transfers from construction in progress	3,338,617,468	?	28,933,367,595	?	1,899,046,420	?	34,171,031,483
- Written-down against government interest discounts	-	?	(715,023,755)	?	-	?	(715,023,755)
Disposals or written-offs during the year	(12,131,793)	?	(368,463,329)	?	(298,965,375)	?	(679,560,497)
Translation differences	(8,320,089)	?	(38,961,046)	?	(3,113,936)	?	(50,395,071)
?	?	?	?	?	?	?	?
Balance at 31 December 2021	65,746,184,870	?	288,574,006,147	?	10,027,118,299	?	364,347,309,316
?	?	?	?	?	?	?	?
Less: Accumulated depreciation	?	?	?	?	?	?	?
Balance at 31 December 2020	6,303,863,217	?	93,623,727,489	?	3,437,354,358	?	103,364,945,064
Changes in accounting policies (Note III.35)	(4,864,383)	?	(17,553,553)	?	-	?	(22,417,936)
?	-	?	-	?	-	?	-
Balance at 1 January 2021	6,298,998,834	?	93,606,173,936	?	3,437,354,358	?	103,342,527,128
Charge during the year	1,615,323,566	?	29,005,403,497	?	2,458,754,061	?	33,079,481,124
Disposals or written-offs during the year	(3,152,667)	?	(432,699,340)	?	(190,092,327)	?	(625,944,334)
Translation differences	(3,100,250)	?	(33,026,947)	?	(1,203,407)	?	(37,330,604)
?	?	?	?	?	?	?	?
Balance at 31 December 2021	7,908,069,483	?	122,145,851,146	?	5,704,812,685	?	135,758,733,314
?	?	?	?	?	?	?	?
Less: Provision for impairment	?	?	?	?	?	?	?
Balance at 31 December 2020	1,073,381	?	1,182,586,123	?	77,787,025	?	1,261,446,529
Charge during the year	-	?	560,810,894	?	115,021,018	?	675,831,912
Disposals or written-offs during the year	(1,038,901)	?	(38,439,084)	?	(4,714,158)	?	(44,192,143)
?	?	?	?	?	?	?	?
Balance at 31 December 2021	34,480	?	1,704,957,933	?	188,093,885	?	1,893,086,298
?
?	?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?	?
At 31 December 2021	57,838,080,907	?	164,723,197,068	?	4,134,211,729	?	226,695,489,704
?	?	?	?	?	?	?	?
At 1 January 2021	56,066,662,268	?	165,280,325,840	?	3,423,366,497	?	224,770,354,605


At 31 December 2020	56,073,089,550	?	165,370,130,022	?	3,423,366,497	?	224,866,586,069

???

In 2021, 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 675,831,912 based on the evaluation results.

Page 96

(2) Fixed assets pending certificates of ownership

As at 31 December 2021, fixed assets pending certificates of ownership totalled RMB7,892,064,184 (31 December 2020: RMB 20,426,632,149) and certificates of ownership isstill being processed.

16 Construction in progress

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

?	2021					?	2020
Item	Book value	?	Provision for impairment	?	Carrying amount	?	Book value	?	Provision for impairment	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
The 6th generation AMOLED project - Mianyang	980,943,292	?	-	?	980,943,292	?	10,195,964,634	?	-	?	10,195,964,634
The 6th generation AMOLED project - Chongqing	24,786,048,849	?	-	?	24,786,048,849	?	11,920,916,965	?	-	?	11,920,916,965
The 10.5th generation TFT-LCD project - Wuhan	258,272,099	?	-	?	258,272,099	?	10,551,056,190	?	-	?	10,551,056,190
Others	6,139,550,091	?	44,493,824	?	6,095,056,267	?	9,907,912,163	?	?	?	9,907,912,163
?	?	?	?	?	?	?	?	?	?	?	?
Total	32,164,814,331	?	44,493,824	?	32,120,320,507	?	42,575,849,952	?	-	?	42,575,849,952

???

In 2021, some of the engineering projects of the Group is idle and cannot be further used.The Group evaluated the residual values of these engineering projects and made a provisionfor impairment of RMB 44,493,824 based on the evaluation results.

Page 97

(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

Transfers 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 2021

Interest rate for capitalisation in 2021 (%)

Sources of funding

The 6th generation AMOLED project - Mianyang

46,500,000,000

10,195,964,634

1,965,743,702

(11,150,619,328)

(30,145,716)

980,943,292

93.64%

114,281,964

0.76%

Self-raised funds and borrowings

The 6th generation AMOLED project - Chongqing

46,500,000,000

11,920,916,965

13,456,298,518

(591,166,634)

24,786,048,849

55.55%

185,790,742

184,548,034

2.87%

Self-raised funds and borrowings

The 10.5th generation TFT-LCD project - Wuhan

46,000,000,000

10,551,056,190

1,371,755,291

(11,664,402,291)

(137,091)

258,272,099

80.82%

25,450,610

3.24%

Self-raised funds and borrowings

???

Page 98

17 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	5,252,723,967	?	6,942,969,070	?	1,538,996,080	?	1,551,008,011	?	15,285,697,128
Additions during the year	?	?	?	?	?	?	?	?	?
- Purchases	286,798,820	?	117,964,109	?	42,232,491	?	-	?	446,995,420
- Transfers from construction in progress	-	?	-	?	115,841,974	?	-	?	115,841,974
- Additions due to business combinations involving entities not under common control	-	?	27,177,686	?	-	?	-	?	27,177,686
Disposals during the year	-	?	(34,421,757)	?	(20,198,855)	?	-	?	(54,620,612)
Translation differences	-	?	(73,738,930)	?	(22,630)	?	(798,220)	?	(74,559,780)
Written-down against interest discount	-	?	(957,450)	?	-	?	(251,116)	?	(1,208,566)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	5,539,522,787	?	6,978,992,728	?	1,676,849,060	?	1,549,958,675	?	15,745,323,250
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	398,056,104	?	1,950,769,869	?	808,673,901	?	252,270,806	?	3,409,770,680
Charge during the year	126,662,903	?	688,431,777	?	206,062,248	?	145,299,554	?	1,166,456,482
Disposals during the year	-	?	(11,363,776)	?	(14,836,853)	?	-	?	(26,200,629)
Translation differences	-	?	(13,996,705)	?	(11,252)	?	(193,732)	?	(14,201,689)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	524,719,007	?	2,613,841,165	?	999,888,044	?	397,376,628	?	4,535,824,844
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Carrying amount at the end of the year	5,014,803,780	?	4,365,151,563	?	676,961,016	?	1,152,582,047	?	11,209,498,406
?	?	?	?	?	?	?	?	?	?
Carrying amount at the beginning of the year	4,854,667,863	?	4,992,199,201	?	730,322,179	?	1,298,737,205	?	11,875,926,448

???

Page 99

18 Goodwill

(1) Changes in goodwill

Name of investee		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.	?	537,038,971	?	-	?	537,038,971
Nanjing BOE Display Technology Co., Ltd.	?	155,714,415	?	-	?	155,714,415
Hefei jiangcheng Technology Co., Ltd.		-	?	9,391,961	?	9,391,961
?	?	?	?	?	?	?
Sub-total	?	1,601,547,771	?	9,391,961	?	1,610,939,732
?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	?	(4,423,876)	?	-	?	(4,423,876)
SES Imagotag SA Co., Ltd.	?	(196,766,653)	?	(197,604,547)	?	(394,371,200)
BOE Healthcare Investment & Management Co., Ltd.	?	-	?	(82,137,669)	?	(82,137,669)
?	?	?	?	?	?	?
Sub-total	?	(201,190,529)	?	(279,742,216)	?	(480,932,745)
?	?	?	?	?	?	?
Carrying amount	?	1,400,357,242	?	(270,350,255)	?	1,130,006,987

???

Page 100

(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 BOE Display Technology Co., Ltd., Chengdu CECPanda and Hefei jiangcheng is determined based on the present value of expected futurecash flows. When predicting the present value of cash flow, the cash flow in the next 5 yearsis determined based on the financial budget approved by the management. The cash flow inthe years after the 5-year financial budget will remain stable. The pre-tax discount rate isdetermined with reference to comparable companies and related capital structures.

19 Long-term deferred expenses

?	Balance at 31 December 2020	?	Balance at 1 January 2021	?	Additions during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?	?	?
Payment for public facilities construction and use	67,332,342	?	67,332,342	?	-	?	(15,370,224)	?	51,962,118
Leasehold improvements	14,172,826	?	14,172,826	?	7,667,088	?	(11,513,972)	?	10,325,942
Others	218,128,932	?	204,148,317	?	492,857,377	?	(122,763,252)	?	574,242,442
?	?	?	?	?	?	?	?	?	?
Total	299,634,100	?	285,653,485	?	500,524,465	?	(149,647,448)	?	636,530,502

???

Page 101

20 Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets and liabilities

?	2021			?	2020
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	113,867,486	?	24,884,958	?	122,139,756	?	27,180,254
Changes in fair value of investments in other equity instruments	139,523,200	?	20,928,480	?	121,789,193	?	18,268,379
Depreciation of fixed assets	201,462,125	?	34,642,083	?	179,801,722	?	30,341,276
Assessed value added by investing real estate in subsidiaries	125,449,252	?	31,362,313	?	131,003,100	?	32,750,775
Accumulated losses	422,990,806	?	118,064,555	?	424,212,759	?	132,565,377
Government grant	209,807,147	?	31,471,072	?	34,989,313	?	5,248,397
Others	306,215,006	?	19,010,893	?	29,644,487	?	9,380,549
?	?	?	?	?	?	?	?
Sub-total	1,519,315,022	?	280,364,354	?	1,043,580,330	?	255,735,007

?	?	?	?	?	?	?	?
Amount offset	?	?	(90,028,830)	?	?	?	(50,693,919)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	190,335,524	?	?	?	205,041,088

?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Revaluation due to business combinations involving entities not under common control	(2,197,597,331)	?	(584,383,821)	?	(2,395,173,489)	?	(713,559,149)
Depreciation of fixed assets	(6,388,163,232)	?	(984,779,332)	?	(4,622,699,062)	?	(721,371,438)
Long-term equity investments	(120,141,687)	?	(18,021,253)	?	(120,141,687)	?	(18,021,253)
Others	(167,106,175)	?	(28,467,297)	?	(142,029,410)	?	(25,343,233)
?	?	?	?	?	?	?	?
Sub-total	(8,873,008,425)	?	(1,615,651,703)	?	(7,280,043,648)	?	(1,478,295,073)
?	?	?	?	?	?	?	?
Amount offset	?	?	90,028,830	?	?	?	50,693,919
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(1,525,622,873)	?	?	?	(1,427,601,154)

???

Page 102

(2) Details of unrecognised deferred tax assets

?	2021	?	2020
?	?	?	?
Deductible temporary differences	24,215,956,667	?	16,442,282,572
Deductible tax losses	19,433,679,291	?	25,680,094,343
?	?	?	?
Total	43,649,635,958	?	42,122,376,915

???

As at 31 December 2021, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to theuncertainty that there will be sufficient taxable income to cover these deductible differencesin future periods, the deferred income tax assets were not recognised in consideration ofprudence .

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

???

Year

Year	Note	2021	?	2020
?	?	?	?	?
2021	?	-	?	78,927,101
2022	?	316,585,394	?	416,996,721
2023	?	290,518,573	?	518,668,889
2024	?	458,962,394	?	1,129,623,213
2025	?	1,276,919,825	?	2,987,078,958
2026	?	1,785,437,184	?	848,779,232
2027	?	14,979,073	?	128,972,134
2028	?	2,221,266,958	?	5,149,658,963
2029	?	5,296,070,440	?	10,575,127,795
2030	?	4,368,141,751	?	2,846,283,820
2031	?	2,406,109,565	?	-
Others	(a)	998,688,134	?	999,977,517
?	?	?	?	?
Total	?	19,433,679,291	?	25,680,094,343

???

(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

21 Other non-current assets

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
VAT on tax credits	?	3,424,055,815	?	3,720,414,204
Deferred VAT for imported equipment	?	1,407,330,930	?	2,444,720,228
Prepayment for fixed assets	?	572,510,455	?	1,476,495,591
Gains from transfer of exploration right	(a)	-	?	512,802,600
Prepayments for construction	?	224,400,336	?	130,568,100
Surety	?	1,339,517,936	?	-?
Others	?	509,612,011	?	339,969,296
?	?	?	?	?
Total	?	7,477,427,483	?	8,624,970,019

???

(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. On 15 January 2021, theGroup entered into the Agreement on Capital and Share Increase of Erdos BOEEnergy Investment Co., Ltd. with other enterprise holding coal resources (“theAgreement”). The closing of the capital and share increase transaction was completedin December 2021. Under the Agreement, the Group's gains from transfer ofexploration right was converted to long-term equity investment in the Erdos BOEEnergy Investment Co., Ltd..

22 Short-term loans

????

?	31 December 2021
?	?	?	?	?	?	?	Credited/collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	1,352,433,750	?	Guaranteed
- RMB	?	?	?	?	140,148,195	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,492,581,945	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- USD	83,382,510	?	6.3757	?	531,621,869	?	Credited
- JPY	863,548,156	?	0.0554	?	47,853,518	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	579,475,387	?	?
?
?	?	?	?	?	?	?	?
Total	?	?	?	?	2,072,057,332	?	?

???

Page 104

?	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	?	?

The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2021(2020: 0.50% to 5.90%).

As at 31 December 2021, no short-term loan was past due (2020: Nil).

23 Bills payable

?	31 December 2021	?	31 December 2020
?	?	?	?
Bank acceptance bills	663,001,350	?	1,130,824,139
Commercial acceptance bills	164,956,681	?	100,709,756
?	?	?	?
Total	827,958,031	?	1,231,533,895

???

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

Page 105

24 Accounts payable

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

?	31 December 2021	?	31 December 2020
?	?	?	?
Payables to related parties	142,557,107	?	108,759,439
Payables to related parties	32,313,273,587	?	27,055,412,243
?	?	?	?
Total	32,455,830,694	?	27,164,171,682

???

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

????

?	2021					?	2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	23,743,766,250	?	?	?	?	?	18,877,719,728
- USD	1,093,846,298	?	6.3757	?	6,974,035,842	?	1,065,301,852	?	6.5249	?	6,950,988,054
- JPY	10,050,541,520	?	0.0554	?	556,800,000	?	7,851,845,994	?	0.0632	?	496,236,667
- Other foreign currencies	?	?	?	?	1,181,228,602	?	?	?	?	?	839,227,233
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	32,455,830,694	?	?	?	?	?	27,164,171,682

???

As at 31 December 2021, the Group had no significant accounts payable ageing more thanone year.

25 Advance payments received

???Item

Item	31 December 2021	?	31 December 2020
?	?	?	?
Advances from related parties	961,806	?	6,018,519
Advances from third parties	145,178,278	?	118,022,230
?	?	?	?
Total	146,140,084	?	124,040,749

???

Page 106

26 Contract liabilities

Item	31 December 2021	?	31 December 2020
?	?	?	?
Sale of goods	3,765,081,554	?	3,440,720,535

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:

???

?	2021
?	RMB
?	?
Balance at the beginning of the year	3,440,720,535
?	?
Revenue recognised that was included in the contract liability balance at the beginning of year	(3,195,107,678)
Increase of contract liabilities due to cash received at the end of the year	3,519,468,697
?	?
Balance at 31 December 2021	3,765,081,554

Page 107

27 Employee benefits payable

(1) Employee benefits payable:

?	Note	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	3,733,572,462	?	18,689,911,958	?	(17,324,878,925)	?	5,098,605,495
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	21,628,033	?	1,142,227,556	?	(1,129,619,734)	?	34,235,855
Termination benefits	?	3,423,302	?	26,091,251	?	(29,200,666)	?	313,887
?	?	?	?	?	?	?	?	?
Total	?	3,758,623,797	?	19,858,230,765	?	(18,483,699,325)	?	5,133,155,237

???

????

?	Note	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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

(2) Short-term employee benefits

???

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	3,184,794,255	?	15,851,656,348	?	(14,732,174,514)	?	4,304,276,089
Staff welfare	-	?	1,087,174,457	?	(1,087,174,457)	?	-
Social insurance	32,667,412	?	612,771,541	?	(602,343,269)	?	43,095,684
Medical insurance	29,551,408	?	563,695,980	?	(554,930,349)	?	38,317,039
Work-related injury insurance	1,614,132	?	32,393,361	?	(31,424,153)	?	2,583,340
Maternity insurance	1,501,872	?	16,682,200	?	(15,988,767)	?	2,195,305
Housing fund	27,141,059	?	679,488,225	?	(673,539,311)	?	33,089,973
Labour union fee, staff and workers’ education fee	467,724,919	?	445,370,010	?	(216,076,387)	?	697,018,542
Staff bonus and welfare fund	20,553,209	?	-	?	-	?	20,553,209
Other short-term employee benefits	691,608	?	13,451,377	?	(13,570,987)	?	571,998
?	?	?	?	?	?	?	?
Total	3,733,572,462	?	18,689,911,958	?	(17,324,878,925)	?	5,098,605,495

???

????

?	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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

Page 108

(3) Post-employment benefits - defined contribution plans

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Basic pension insurance	19,052,829	?	1,055,978,182	?	(1,044,746,071)	?	30,284,940
Unemployment insurance	1,110,934	?	38,192,020	?	(38,396,371)	?	906,583
Annuity	1,464,270	?	48,057,354	?	(46,477,292)	?	3,044,332
?	?	?	?	?	?	?	?
Total	21,628,033	?	1,142,227,556	?	(1,129,619,734)	?	34,235,855

???

????

?	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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

Page 109

28 Taxes payable

?	2021	?	2020
?	?	?	?
Value-added tax	101,448,944	?	40,678,414
Corporate income tax	1,266,575,648	?	442,103,385
Individual income tax	58,763,365	?	60,823,097
City construction tax	383,455,432	?	239,633,339
Education surcharges and local education surcharges	274,382,851	?	171,225,887
Others	115,623,065	?	123,222,747
?	?	?	?
Total	2,200,249,305	?	1,077,686,869

???

29 Other payables

???

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Interest payable	?	126,701	?	1,946,267
Dividends payable	?	6,561,972	?	6,451,171
Others	(1)	23,828,686,269	?	32,859,311,586
?	?	?	?	?
Total	?	23,835,374,942	?	32,867,709,024

???

Page 110

(1) Others

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

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Projects and equipment	?	16,494,274,603	?	22,081,009,426
Fund transaction (Note)	?	3,077,116,568	?	3,044,729,475
Equity acquisition	?	-	?	2,236,488,561
Deferred VAT for imported equipment	?	927,825,520	?	1,920,558,529
Repurchase obligation of restricted shares	V.40	835,215,390	?	875,333,536
Accrued water and electricity charges and freight	?	348,955,956	?	711,995,694
Security deposits	?	537,788,828	?	576,740,323
External agency fee	?	193,251,964	?	95,378,987
Others	?	1,414,257,440	?	1,317,077,055
?	?	?	?	?
Total	?	23,828,686,269	?	32,859,311,586

???

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

Note: The other payables by the Group as at 31 December 2021 are amounts and

interests due to original controlling shareholders of Nanjing BOE DisplayTechnology Co., Ltd. and Chengdu CEC Panda acquired in 2020, with interestrates of 2.175% and 0%.

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

????

?	31 December 2021					?	31 December 2020
?	Amount in original currency	?	Exchange rate	?	RMB / RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB / RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	16,157,489,471	?	?	?	?	?	25,021,226,671
USD	857,826,112	?	6.3757	?	5,469,241,942	?	834,593,184	?	6.5249	?	5,445,637,067
JPY	38,321,236,336	?	0.0554	?	2,122,996,493	?	36,887,427,437	?	0.0632	?	2,331,285,414
Other foreign currencies	?	?	?	?	78,958,363	?	?	?	?	?	61,162,434
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	23,828,686,269	?	?	?	?	?	32,859,311,586

???

Page 111

30 Non-current liabilities due within one year

As at 31 December, the non-current liabilities due within one year for the Group were long-term loans due within one year, lease liabilities,long-term payables and contribution of non-controlling interests with redemption provisions.

?	?	31 December 2021
?	?	?	?	?	?	RMB /	?	Credited /collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB equivalents	?	guaranteed /pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	27,993,413	?	Pledged
- RMB	?	?	?	?	?	7,544,963,177	?	Collateralised
- RMB	?	?	?	?	?	1,718,446	?	Guaranteed
- RMB	?	?	?	?	?	11,614,011,025	?	Credited
- USD	?	1,136,473,175	?	6.3757	?	7,245,812,022	?	Collateralised
- USD	?	63,796,480	?	6.3757	?	406,747,218	?	Guaranteed
- EUR	?	141,129,872	?	7.2197	?	1,018,915,337	?	Credited
- EUR	?	6,605,651	?	7.2197	?	47,690,819	?	Pledged
?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	?	27,907,851,457	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.34	?	?	?	?	520,546,343	?	?
Lease liabilities	V.62	?	?	?	?	92,788,055	?	?
Contribution of non-controlling interests with redemption provisions	V.36	?	?	?	?	353,772,859	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	28,874,958,714	?	?

???

????

?	?	1 January 2021
?	?	?	?	?	?	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	?	?	?	?	?	23,521,529,001	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.34	?	?	?	?	970,462,538	?	?
Lease liabilities	V.62	?	?	?	?	54,758,789	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	24,546,750,328	?	?

Page 112

?	?	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		?	?	?	?	23,521,529,001	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.34	?	?	?	?	979,021,120	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	24,500,550,121	?	?

The interest rate of RMB long-term loans due within one year for the Group ranged from 0%to 5.88% in 2021 (2020: from 0% to 5.88%).

31 Other current liabilities

Item

Item	?	31 December 2021	?	31 December 2020
?	?	?	?	?
Warranty provisions	?	3,595,808,261	?	1,615,534,790
Refund liability	?	141,997,964	?	144,834,876
Pending output VAT	?	216,565,073	?	278,791,002
Others	?	97,161,211	?	155,556,184
?	?	?	?	?
Total	?	4,051,532,509	?	2,194,716,852

The other current liabilities of the Group were warranty provision. The warranty provisionmainly relates to the expected after-sales repair warranty to the customers. The provision isestimated by the Management, based on historical claim experience and current actual salesoutcomes.

Page 113

32 Long-term loans

?	?	31 December 2021
?	?	?	?	?	?	RMB /	?	Credited /collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB equivalents	?	guaranteed /pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	537,167,163	?	Pledged
- RMB	?	?	?	?	?	54,546,276,790	?	Collateralised
- RMB	?	?	?	?	?	3,703,662,752	?	Guaranteed
- RMB	?	?	?	?	?	46,573,377,423	?	Credited
- USD	?	5,747,119,917	?	6.3757	?	36,641,912,455	?	Collateralised
- USD	?	101,494,400	?	6.3757	?	647,097,846	?	Guaranteed
- EUR	?	12,407,013	?	7.2197	?	89,574,912	?	Pledged
- EUR	?	172,784,008	?	7.2197	?	1,247,448,703	?	Credited
Less: Long-term loans due within one year	V.30	?	?	?	?	27,907,851,457	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	116,078,666,587	?	?

???

????

?	?	31 December 2020
?	?	?	?	?	?	RMB /	?	Credited /collateralised
?	Note	Amount in original currency	?	Exchange rate	?	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.30	?	?	?	?	23,521,529,001	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	132,452,767,135	?	?

The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2021(2020: from 0% to 5.90%).

33 Debentures payable

(1) Debentures payable

Item

Item	31 December 2021	?	31 December 2020
?	?	?	?
Debentures payable	359,586,437	?	398,971,739
Less: Debentures payable due within one year	-	?	-
?	?	?	?
Total	359,586,437	?	398,971,739

???

Page 114

(2) The movements of debenture 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

79,866,803

2,677,465

109,029

(2,677,465)

(8,020,678)

71,955,154

Euro PP

EUR 30,000,000

2017.03.29

6 years

EUR 30,000,000

239,802,540

8,032,395

402,717

(8,032,395)

(24,086,570)

216,118,687

Euro PP

EUR 10,000,000

2019.07.22

6 years

EUR 10,000,000

79,302,396

3,480,705

178,127

(3,480,705)

(7,967,927)

71,512,596

Total

398,971,739

14,190,565

689,873

(14,190,565)

(40,075,175)

359,586,437

???

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 115

34 Long-term payables

Item	Note	31 December 2021	?	1 January 2021	?	31 December 2020
?	?	?	?	?	?	?
Obligations under finance leases	(1)	1,427,139,181	?	2,982,800,105	?	3,093,196,803
Less: Obligations under finance leases due within one year	?	520,546,343	?	970,462,538	?	979,021,120
?	?	?	?	?	?	?
Total	?	906,592,838	?	2,012,337,567	?	2,114,175,683

???

On December 31, 2021, the Group sold and leased back some of its machinery andequipment and construction in progress. Since asset sales and lease transactions areinterrelated, and it is almost certain that they will be repurchased after the lease termexpires, the Group conducts accounting treatment according to mortgage loans andpresents them as long-term payables.

(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 wereas follows:

???

Minimum lease payments

Minimum lease payments	31 December 2020
?	?
Within 1 year (inclusive)	1,175,045,108
After 1 year but within 2 years (inclusive)	1,061,063,290
After 2 years but within 3 years (inclusive)	559,312,651
After 3 years	840,557,857
?	?
Sub-total	3,635,978,906
?	?
Less: Unrecognised finance charges	542,782,103
?	?
Total	3,093,196,803

Page 116

35 Deferred income

Item	Balance at the beginning of the year	?	Additions during the year	?	Amounts recognised in other income	?	Other changes	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
Related to assets	2,846,739,619	?	2,244,966,798	?	(507,320,798)	?	(719,112,322)	?	3,865,273,297
Related to income	1,399,491,849	?	2,212,967,205	?	(1,045,088,111)	?	(16,554,629)	?	2,550,816,314
?	?	?	?	?	?	?	?	?	?
Total	4,246,231,468	?	4,457,934,003	?	(1,552,408,909)	?	(735,666,951)	?	6,416,089,611

???

36 Other non-current liabilities

???

Item

Item	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Contribution of non-controlling interests with redemption provisions	(1)	3,020,160,654	?	3,710,474,960
Deferred VAT for imported equipment	?	479,505,410	?	1,472,958,998
Others	?	36,143,812	?	76,567,485
?	?	?	?	?
Total	?	3,535,809,876	?	5,260,001,443

???

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

The contribution of non-controlling interests with redemption provisions is mainly due tothe redemption obligation of the Company to the non-controlling interests of Fuzhou BOEand BOE Smart Retail (Hong Kong) Co., Ltd.(“Smart Retail”). The Company recognisesthe above non-controlling interests contribution as a financial liability which issubsequently measured at the cost of amortisation.

The put option of non-controlling interest held by the non-controlling shareholders ofSmart Retail is exercisable from 15 March 2022 to 7 May 2022. The Companyrecognised the financial liabilities for its redemption obligation for the above non-controlling interests contributions to non-current liabilities due within one year (NoteV.30).

Page 117

37 Share capital

?	Balance at the beginning of the year	?	Changes during the year					?	Balance at the end of the year
?	?	?	Issuance of new shares	?	Cancellation of treasury shares	?	Sub-total	?	?
?	?	?	?	?	?	?	?	?	?
Total shares	34,798,398,763	?	3,650,377,019	?	(3,029,300)	?	3,647,347,719	?	38,445,746,482

???

As approved by the CSRC Permit No. [2021] 2277, the Company has issued3,650,377,019 A shares through private placement, each at the issue price of RMB5.57.After the capital increase, the Company’s total share capital was increased to34,798,398,763 shares.

On 8 November 2021, repurchased and cancelled 3,029,300 shares of restricted sharesat China Securities Depository and Clearing Corporation Limited Shenzhen Branch on 8November 2021. After repurchase and cancellation, the total share capital of theCompany reduced from 38,448,775,782 to 38,445,746,482 shares.

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

4.00%

RMB 100/bond

80 million

RMB 8 billion

3+N years

Not applicable

20BOEY1

28 February 2020

Equity instrument

3.64%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

20BOEY2

19 March 2020

Equity instrument

3.54%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

20BOEY3

27 April 2020

Equity instrument

3.50%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

Total

140 million

RMB 14 billion

???

Page 118

(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 renewablecorporate bond to qualified investors. The full name of the bond was RenewableCorporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (to qualifiedinvestors) in 2019 (the First Phase), which referred to as 19BOEY1 (“2019 bond”); on 28February 2020, 19 March 2020 and 27 April 2020, the Company issued renewablecorporate bonds to qualified investors. The full name of these bonds was RenewableCorporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (to qualifiedinvestors) 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 threeinterest-bearing years as a period. The Company is entitled to choose to extend thematurity by 1 period at the end of the agreed base term or at the end of each extendedperiod, or choose to fully redeem the 2019 bond and 2020 bond at the end of the period.The nominal interest rate of the 2019 bond and 2020 bond is fixed during the first period,and then is reset once every period. The nominal interest rate in the first period is theinitial benchmark interest rate plus the initial spread, and the nominal interest rate in thesubsequent period is adjusted to the current benchmark interest rate plus the initialspread and 300 basis points. Therefore, when the Company exercises the renewaloption, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase sharply. The 2019 bond and 2020 bond have an issuer’s rightto defer the payment of interest. Unless a mandatory interest payment event occurs(including distributions to ordinary shareholders and decrease of registered capital). Ateach interest payment date of the bonds, the Company may choose at its discretionwhether to defer the payment of the current interest as well as all the deferred interestsand the yields under this term until the next interest payment date without beingsubjected to any limit on the number of interest deferring attempts.

The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14,000,000,000in total, 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 issuanceto other equity instruments after deducting underwriting fees and other transaction costs.

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

outstanding at the end of the year:

Outstanding financial instruments

At the beginning of the year

Additions during the year

Accumulated interest

At the end of the year

Quantity

Carrying amount

Quantity

Carrying amount

Charge for the year

Paid during the year

Quantity

Carrying amount

19BOEY1

80,000,000

8,014,033,565

320,000,000

(320,000,000)

80,000,000

8,014,033,565

20BOEY1

20,000,000

2,050,610,478

72,800,000

(72,800,000)

20,000,000

2,050,610,478

20BOEY2

20,000,000

2,045,184,865

70,800,000

(70,800,000)

20,000,000

2,045,184,865

20BOEY3

20,000,000

2,037,168,519

70,000,000

(70,000,000)

20,000,000

2,037,168,519

Total

140,000,000

14,146,997,427

533,600,000

(533,600,000)

140,000,000

14,146,997,427

???

Page 119

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

?	31 December 2021	?	31 December 2020
?	?	?	?
Attributable to shareholders of the Company	142,925,547,899	?	103,276,766,835
- Equity attributable to ordinary shareholders of the Company	128,778,550,472	?	89,129,769,408
- Equity attributable to holders of the Company’s other equity instruments	14,146,997,427	?	14,146,997,427
Equity attributable to non-controlling shareholders	73,947,595,568	?	70,120,967,879
- Equity attributable to non-controlling ordinary shareholders	73,947,595,568	?	70,120,967,879
- Equity attributable to non-controlling shareholders of other equity instruments	-	?	-

???

(5) Accrued interest on holders of other equity instruments

In 2021, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB 533,600,000 on renewablecorporate bonds from undistributed profits and paid interest of RMB 533,600,000 onrenewable corporate bonds.

39 Capital reserve

???

Item

Item	Note	Share premiums	?	Other capital reserves	?	Total
?	?	?	?	?	?	?
Balance at the beginning of the year	?	37,546,517,053	?	(110,861,119)	?	37,435,655,934
Add: Contribution by ordinary shareholders	?	16,219,134,815	?	-	?	16,219,134,815
Acquisition of non-controlling interests	?	(772,223,591)	?	-	?	(772,223,591)
Disposal of shares of subsidiaries	?	288,039,797	?	-	?	288,039,797
Non-controlling shareholders’ decrease of capital	?	322,947	?	-	?	322,947
Equity-settled share-based payment	XI.	-	?	598,701,862	?	598,701,862
Other movements in equity of associates	V. 11	-	?	51,030,550	?	51,030,550
Cancellation of treasury shares	?	(14,270,384)	?	-	?	(14,270,384)
Others	?	(32,510)	?	(2,050,027)	?	(2,082,537)
?	?	?	?	?	?	?
Balance at the end of the year	?	53,267,488,127	?	536,821,266	?	53,804,309,393

???

Page 120

40 Treasury shares

Item	Balance at the beginning of the year	?	Additions during the year	?	Reductions during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?
Treasury shares	1,036,298,508	?	2,428,003,419	?	(48,533,720)	?	3,415,768,207
?	?	?	?	?	?	?	?
Total	1,036,298,508	?	2,428,003,419	?	(48,533,720)	?	3,415,768,207

According to the Proposal of Repurchase of Certain Public Shares by the Companydeliberated and adopted in the thirty-first meeting of the ninth session of the Board ofDirectors meeting held on 27 August 2021, the Company completed repurchase ofshares through centralised price bidding before 2 September 2021. As at 31 December2021, the Company repurchased 460,419,000 A shares in total by paying totalconsideration of RMB 2,428,003,419.

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 atthe shareholders’ general meeting, or rights of profit appropriations, increasing sharecapital by transfer of reserves, allotment of share and pledge etc. The repurchasedshares will be used for implementing incentive plan. For shares failed to be used in thisway within 36 months after being repurchased, the shares will be cancelled by performingrelated procedures.

According to the Proposal of Repurchase and Cancellation of Certain Restricted Sharesby the Company deliberated and adopted in the thirty-first meeting of the ninth session ofthe Board of Directors meeting held on 27 August 2021, the Company completedrepurchase and cancellation of 3,029,300 restricted shares before 8 November 2021 atan average repurchased price of RMB 5.71/share. The corresponding reduction of thetreasury shares are RMB 17,299,684, the shortfall between the cancelled treasury sharesand the share capital of RMB 14,270,384 is deducted against Capital reserve—Sharepremium.

In 2021, the Company recognised RMB 31,234,036 of restricted share dividends againstOther payables—the Repurchased obligation of restricted shares (Note V. 29) andTreasury shares.

Page 121

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	61,411,897	25,353,887	(2,660,101)	28,251,223	(237,235)	(55,238,785)	34,424,335
Including: Other comprehensive income recognised under equity method	194,002,494	68,869,497	-	68,869,497	-	(55,238,785)	207,633,206
Changes in fair value of investments in other equity instruments	(132,590,597)	(43,515,610)	(2,660,101)	(40,618,274)	(237,235)	-	(173,208,871)
Items that may be reclassified to profit or loss	(83,609,969)	127,703,243	-	162,736,781	(35,033,538)	-	79,126,812
Including: Other comprehensive income recognised under equity method	11,835	(339,487)	-	(296,553)	(42,934)	-	(284,718)
Translation differences arising from translation of foreign currency financial statements	(83,621,804)	128,042,730	-	163,033,334	(34,990,604)	-	79,411,530
	?	?	?	?	?	?	?
Total	(22,198,072)	153,057,130	(2,660,101)	190,988,004	(35,270,773)	(55,238,785)	113,551,147

Page 122

42 Surplus reserve

Item	?	Balance at the beginning of the year	?	Additions during the year	?	Others changes during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?
Statutory surplus reserve	?	2,154,745,360	?	439,649,657	?	5,523,879	?	2,588,871,138
Discretionary surplus reserve	?	289,671,309	?	-	?	-	?	289,671,309
?	?	?	?	?	?	?	?	?
Total	?	2,444,416,669	?	439,649,657	?	5,523,879	?	2,889,590,205

???

43 Retained earnings

???

Item

Item	Note	2021	?	2020
?	?	?	?	?
Retained earnings at the beginning of the year	?	15,509,794,622	?	11,847,851,891
Add: Net profits for the year attributable to shareholders of the Company	?	25,830,935,500	?	5,035,627,952
Less: Appropriation for statutory surplus reserve	?	439,649,657	?	373,919,158
Interest on holders of other equity instruments	V.38	533,600,000	?	485,925,480
Dividends to ordinary shares	?	3,476,073,919	?	695,967,975
Transfer of other comprehensive income to retained earnings	(a)	(49,714,906)	?	(171,164,417)
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	?	36,941,121,452	?	15,509,794,622

???

According to the Annual Shareholders’ Meeting for 2020 held on 18 May 2021, theCompany distributed cash dividends to all shareholders on 3 June 2021, with RMB 1(2020: RMB 0.2) every 10 shares and a profit distribution amount of RMB 3,477,021,263.Considering the turnover rate, the corresponding dividends of the expected non-exercisable portions of restricted shares are RMB 947,344 with a profit distribution ofRMB 3,476,073,919 (2020: RMB 695,967,975).

As at 31 December 2021, the consolidated retained earnings attributable to the Companyincluded appropriation to surplus reserves made by the Company’s subsidiariesamounting to RMB 5,464,555,678 (2020: RMB2,958,648,210).

(a) The amounts transferred from other comprehensive income to retained earnings in2021 are RMB 49,714,906 of associates’ gains from disposal of other equityinstrument investments included in retained earnings.

Page 123

44 Operating income and operating costs

?	2021			?	2020
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	215,525,978,470	?	153,944,778,989	?	131,839,051,171	?	108,604,042,714
Other operating activities	3,783,821,035	?	2,040,446,306	?	3,713,518,558	?	1,805,839,490
?	?	?	?	?	?	?	?
Total	219,309,799,505	?	155,985,225,295	?	135,552,569,729	?	110,409,882,204

?	?	?	?	?	?	?	?
Including: Revenue from contracts with customers	218,440,488,700	?	155,800,468,061	?	134,406,942,755	?	109,989,259,599
Other income	869,310,805	?	184,757,234	?	1,145,626,974	?	420,622,605

???

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

45 Taxes and surcharges

???

?	2021	?	2020
?	?	?	?
Property tax	502,150,698	?	401,351,553
City maintenance and construction tax	386,889,711	?	266,845,054
Education surcharges and local education surcharges	278,848,244	?	192,450,398
Stamp duty	168,092,921	?	136,589,158
Land use tax	49,797,281	?	45,748,963
Others	38,426,971	?	35,914,959
?	?	?	?
Total	1,424,205,826	?	1,078,900,085

???

46 Selling and distribution expenses

???

?	2021	?	2020
?	?	?	?
Warranty provisions	3,417,085,420	?	1,616,634,833
Staff costs	1,350,848,641	?	965,992,069
Share-based payments	75,191,185	?	2,050,630
Others	641,464,732	?	553,606,114
?	?	?	?
Total	5,484,589,978	?	3,138,283,646

???

Page 124

47 General and administrative expenses

?	2021	?	2020
?	?	?	?
Staff costs	3,810,075,453	?	2,869,736,815
Repair expense	94,713,646	?	55,659,465
Depreciation and amortisation	931,978,993	?	726,690,746
Share-based payments	218,406,816	?	4,976,462
Others	1,638,198,681	?	943,208,154
?	?	?	?
Total	6,693,373,589	?	4,600,271,642

???

48 Research and development expenses

???

?	2021	?	2020
?	?	?	?
Staff costs	5,164,241,234	?	3,621,724,397
Material expenses	2,104,436,143	?	1,395,642,077
Depreciation and amortisation	1,972,135,608	?	1,501,402,837
Share-based payments	242,035,555	?	7,180,405
Others	1,185,995,647	?	1,112,652,995
?	?	?	?
Total	10,668,844,187	?	7,638,602,711

???

Page 125

49 Financial expenses

?	2021	?	2020
?	?	?	?
Interest expenses from loans	5,219,339,546	?	4,807,347,590
Less: Borrowing costs capitalised	352,561,213	?	1,309,649,881
Interest income from bank deposits	(1,050,431,325)	?	(873,376,712)
Net exchange gains	(248,019,022)	?	(73,110,352)
Other financial expenses	114,051,216	?	98,943,327
?	?	?	?
Total	3,682,379,202	?	2,650,153,972

???

The interest rate per annum, at which the borrowing costs were capitalised by the Group,was 0.76% - 3.24% (2020: 1.77% - 3.81%) for the year. For details, refer to Note V.16.Construction in progress.

50 Other income

????

?	2021	?	2020
?	?	?	?
Government grants related to assets	507,320,798	?	310,532,631
Government grants related to income	1,567,752,188	?	2,016,628,502
Others	17,692,742	?	10,544,684
?	?	?	?
Total	2,092,765,728	?	2,337,705,817

???

The amount of government subsidies related to income received by the Group in 2021and directly included in other income was RMB 522,664,077.

Page 126

51 Investment income

?	Note	2021	?	2020
?	?	?	?	?
Income from long-term equity investments accounted for using the equity method	V. 11	1,245,036,895	?	444,407,986
Investment income from disposal of long-term equity investments	?	37,327,797	?	280,374,469
Dividend income from investments in other equity instruments	V. 12	24,695,749	?	26,376,687
Including: Dividend income from investments in other equity instruments held at the balance sheet date	?	24,695,749	?	26,376,687
Investment income from disposal of financial assets held for trading	?	36,689,179	?	18,157,931
Interest income from debt investments	?	-	?	22,213,061
Investment income from disposal of debt investments	?	3,739,725	?	10,391,153
Gain from remeasurement of remaining equity interests to fair value upon the loss of control	?	-	?	95,969,822
?	?	?	?	?
Total	?	1,347,489,345	?	897,891,109

???

52 Gains from changes in fair value

???

Item

Item	2021	?	2020
?	?	?	?
Financial assets held for trading	84,966,963	?	31,936,339
?	?	?	?
Total	84,966,963	?	31,936,339

???

53 Credit losses

???Item

Item	2021	?	2020
?	?	?	?
Accounts receivable	28,250,160	?	(2,339,323)
Other receivables	159,709	?	511,804
?	?	?	?
Total	28,409,869	?	(1,827,519)

???

Page 127

54 Impairment losses

?	2021	?	2020
?	?	?	?
Impairment losses of inventories	3,437,630,440	?	2,509,374,165
Impairment losses of fixed assets	675,831,912	?	505,201,450
Impairment losses of construction in progress	83,037,514	?	-
Impairment losses of long-term equity investments	2,009,770	?	265,641,984
Impairment losses of goodwill	279,742,216	?	-
Impairment losses of contract assets	-	?	207,800
?	?	?	?
Total	4,478,251,852	?	3,280,425,399

???

55 Gains from asset disposals

???

Item

Item	2021	?	2020	?	Amount recognised in extraordinary gain and loss in 2021
?	?	?	?	?	?
Gains from the disposal of assets held for sale	156,565,635	?	-	?	156,565,635
(Losses) /gains from disposal of fixed assets	(4,596,757)	?	11,403,591	?	(4,596,757)
Gains from disposal of intangible assets	29,726	?	7,658,255	?	29,726
Losses from disposal of construction in progress	(94,570)	?	-	?	(94,570)
Gains from disposal of right-of-use assets	1,601,757	?	-	?	1,601,757
?	?	?	?	?	?
Total	153,505,791	?	19,061,846	?	153,505,791

???

Page 128

56 Non-operating income and non-operating expenses

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

Item	2021	?	2020	?	Amount recognised in extraordinary gain and loss in 2021
?	?	?	?	?	?
Government grants	2,464,320	?	4,946,559	?	2,464,320
Others	129,143,626	?	115,557,069	?	129,143,626
?	?	?	?	?	?
Total	131,607,946	?	120,503,628	?	131,607,946

???

Government grants recognised in profit or loss for the current period

???

Item

Item	2021	?	2020
?	?	?	?
Policy incentives and others	2,464,320	?	4,946,559

(2) Non-operating expenses

?	2021	?	2020	?	Amount recognised in extraordinary gain and loss in 2021
?	?	?	?	?	?
Donations provided	4,901,023	?	13,324,588	?	4,901,023
Losses from scrapping of non-current assets	18,096,305	?	22,698,482	?	18,096,305
Others	32,217,774	?	36,116,596	?	32,217,774
?	?	?	?	?	?
Total	55,215,102	?	72,139,666	?	55,215,102

???

Page 129

57 Income tax expenses

?	Note	2021	?	2020
?	?	?	?	?
Current tax expense based on tax law and regulations	?	4,072,640,975	?	1,547,783,003
Changes in deferred tax assets/liabilities	(1)	115,330,429	?	16,783,243
?	?	?	?	?
Total	?	4,187,971,404	?	1,564,566,246

???

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

????

?	2021	?	2020
?	?	?	?
Origination and reversal of temporary differences	115,330,429	?	16,783,243

???

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

???

?	2021	?	2020
?	?	?	?
Profit before taxation	34,619,640,378	?	6,092,836,662
Expected income tax expenses at tax rate of 15%	5,192,946,057	?	913,925,499
Add: Effect of different tax rates applied by subsidiaries	54,451,529	?	(26,770,857)
Effect of non-deductible costs, expenses and losses	236,708,708	?	89,724,266
Tax effect of weighted deduction and tax preference	(1,428,917,005)	?	(643,677,261)
Utilisation of prior year tax losses	(1,690,731,054)	?	(95,546,933)
Tax effect of deductible losses of deferred tax assets not recognised	815,217,892	?	515,687,922
Tax effect of deductible temporary differences of deferred tax assets not recognised	1,076,320,364	?	811,223,610
Effects of tax rate changes on deferred tax	(68,025,087)	?	-
?	?	?	?
Income tax expenses	4,187,971,404	?	1,564,566,246

???

Page 130

In order to further encourage enterprises to increase investment in research anddevelopment, support scientific and technological innovation, according to theAnnouncement on Further Improvements to the Policy of Weighted Pre-tax Deduction forR&D Expenses (MOF and STA Announcement [2021] No. 13), during the period from 1January 2021, the R&D expenses, which do not form intangible assets and are includedin the current profit or loss for the manufacturing enterprises, can be deducted inaccordance with provisions, with 100% of the actual amount is deducted before taxadditionally (2020: 75%). If intangible assets are formed, the 200% of R&D expenditurescan be deducted before tax during the aforementioned period with the aim of motivatingR&D activities (2020: 175%).

58 Basic earnings per share

Basic earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company by the weighted average number of ordinaryshares outstanding. The Group does not have any potential dilutive ordinary shares forthe listed years.

?	2021	?	2020
?	?	?	?
Consolidated net profit attributable to shareholders of the Company	25,830,935,500	?	5,035,627,952
Less: Current interest of other equity instruments	533,600,000	?	485,925,480
Less: Current dividends of restricted shareholders	31,234,036	?	-
Consolidated net profit attributable to ordinary shareholders of the Company	25,266,101,464	?	4,549,702,472
Weighted average number of ordinary shares outstanding(shares)	35,704,986,088	?	34,684,107,122
Basic earnings per share (RMB/share)	0.71	?	0.13

???

Weighted average number of ordinary shares is calculated as follows:

???

?	2021	?	2020
?	?	?	?
Issued ordinary shares at the beginning of the year	34,448,398,830	?	34,798,398,763
Add: Weighted average number of ordinary shares issued in current period	1,330,137,380	?	-
Less: Weighted average number of ordinary shares repurchased in current period	73,550,122	?	114,291,641
?	?	?	?
Weighted average number of ordinary shares at the end of the year	35,704,986,088	?	34,684,107,122

Page 131

59 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

?	2021	?	2020
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities:	?	?	?
?	?	?	?
Net profit	30,431,668,974	?	4,528,270,416
Add: Credit losses	28,409,869	?	(1,827,519)
Impairment loss	4,478,251,852	?	3,280,425,399
Depreciation of fixed assets, investment properties and right-of-use assets	33,432,161,074	?	21,680,555,167
Amortisation of intangible assets	1,185,263,603	?	758,817,609
Amortisation of long-term deferred expenses	130,732,527	?	123,440,347
Gains from disposal of fixed assets, intangible assets, and other long-term assets	(154,943,108)	?	(19,786,363)
Losses from scrapping of fixed assets and intangible assets	18,096,305	?	22,698,482
Financial expenses	4,521,336,008	?	3,835,299,300
Gains from changes in fair value	(84,966,963)	?	(31,936,339)
Investment income	(1,347,489,345)	?	(897,891,109)
Share-based payments	640,692,637	?	15,779,427
Change in deferred income	2,177,609,983	?	2,101,629,423
Change in deferred tax assets	14,705,564	?	43,112,673
Change in deferred tax liabilities	100,681,820	?	(26,272,475)
Increase in inventories	(13,339,890,401)	?	(6,687,901,867)
Decrease in operating receivables	(8,905,074,070)	?	2,870,511,767
Increase in operating payables	8,943,309,995	?	7,656,849,120
?	?	?	?
Net cash flows from operating activities	62,270,556,324	?	39,251,773,458

(b) Change in cash and cash equivalents:

(b) Change in cash and cash equivalents:	?	?	?
?	?	?	?
?	2021	?	2020
?	?	?	?
Cash and cash equivalents at the end of the year	76,623,486,083	?	68,064,736,371
Less: Cash and cash equivalents at the beginning of the year	68,064,736,371	?	50,270,321,573
?	?	?	?
Net increase in cash and cash equivalents	8,558,749,712	?	17,794,414,798

???

Page 132

(2) Details of cash and cash equivalents

?	2021	?	2020
?	?	?	?
Cash on hand	451,975	?	401,041
Bank deposits available on demand	76,549,790,015	?	68,063,719,329
Other monetary funds available on demand	73,244,093	?	616,001
?	?	?	?
Closing balance of cash and cash equivalents	76,623,486,083	?	68,064,736,371

???

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 subject torestrictions.

Page 133

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	5,488,099,634	?	4,346,124,249	?	(5,681,518,718)	?	4,152,705,165	?	Mainly deposits, pledged for drawing bills payable
Bills receivable	60,214,157	?	23,902,855	?	(60,214,157)	?	23,902,855	?	Endorsed with resource and pledged for drawing bill
Accounts receivable	44,682,510	?	-	?	(44,682,510)	?	-	?	Factored and discounted with recourse
Investment properties	42,959,088	?	-	?	(1,711,883)	?	41,247,205	?	Mortgaged as collateral
Fixed assets	168,972,932,363	?	33,155,613,526	?	(30,693,385,203)	?	171,435,160,686	?	Mortgaged as collateral
Construction in progress	21,137,162,080	?	1,054,881,215	?	(21,875,808,725)	?	316,234,570	?	Mortgaged as collateral
Intangible assets	1,769,040,417	?	-	?	(145,529,918)	?	1,623,510,499	?	Mortgaged as collateral
?	?	?	?	?	?	?	?	?	?
Total	197,515,090,249	?	38,580,521,845	?	(58,502,851,114)	?	177,592,760,980	?	?

???

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		Reversals	?	Transferred out	?	Reduction of disposals of subsidiaries	?	Translation differences		Balance at the end of the year
?	?	RMB	?	RMB		RMB		RMB		?		RMB		RMB
?	?	?	?	?		?		?		?		?		?
Provision for bad and doubtful debts	V. 4, 6	66,907,034	?	48,714,170		(20,304,301)		(3,634,393)		-		(871,554)		90,810,956
Provision for impairment of inventories	V. 7	3,284,895,754	?	4,648,923,385		(1,211,292,945)		(1,102,349,090)		-		(8,449,208)		5,611,727,896
Provision for impairment of long-term equity investments	V. 11	1,029,044,819	?	2,009,770		-		-		-		(5,774,434)		1,025,280,155
Provision for impairment of fixed assets	V. 15	1,261,446,529	?	675,831,912		-		(44,192,143)		-		-		1,893,086,298
Provision for impairment of construction in progress	V. 16	-	?	83,037,514		-		(38,543,690)		-		-		44,493,824
Provision for impairment of goodwill	V. 18	201,190,529	?	279,742,216		-		-		-		-		480,932,745
Provision for impairment of contact assets	V. 8	207,800	?	-		-		-		(207,800)		-		-
?	?	?	?	?		?		?		?		?		?
Total	?	5,843,692,465	?	5,738,258,967		(1,231,597,246)		(1,188,719,316)		(207,800)		(15,095,196)		9,146,331,874

???

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

Page 134

62 Leases

(1) As a lessee

Right-of-use assets

	Plant & buildings	Equipment	Others	Total
?	?	?	?	?
Cost	?	?	?	?
Balance at 1 January 2021	348,032,248	107,357,735	185,706,910	641,096,893
Additions during the year	260,335,669	-	7,595,813	267,931,482
Decreases during the year	(35,750,138)	-	(390,642)	(36,140,780)
Translation differences	(5,369,812)	-	(27,066)	(5,396,878)
?	?	?	?	?
Balance at 31 December 2021	567,247,967	107,357,735	192,885,015	867,490,717
?	?	?	?	?
Accumulated depreciation	?	?	?	?
Balance at 1 January 2021	4,864,383	17,553,554	-	22,417,937
Charge for the year	92,871,001	4,460,177	9,766,521	107,097,699
Decreases during the year	(14,948,166)	-	(143,906)	(15,092,072)
Translation differences	(99,665)	-	2,581	(97,084)
?	?	?	?	?
Balance at 31 December 2021	82,687,553	22,013,731	9,625,196	114,326,480
?	?	?	?	?
Provision for impairment	?	?	?	?
Balance at 1 January 2021 and 31 December 2021	-	-	-	-
?
?	?	?	?	?
Carrying amount	?	?	?	?
Carrying amount at 31 December 2021	484,560,414	85,344,004	183,259,819	753,164,237
?	?	?	?	?
Carrying amount at 1 January 2021	343,167,865	89,804,181	185,706,910	618,678,956
?

Page 135

Lease liabilities

Item	Note	31 December 2021	?	1 January 2021
?	?	?	?	?
Long-term lease liabilities	?	761,918,319	?	603,790,032
Less: lease liabilities due within one year	V.30	92,788,055	?	54,758,789
?	?	?	?	?
Total	?	669,130,264	?	549,031,243

In 2021, the Group, as the lessee, chooses the simplified treatment method for short-termlease expenses, low-value asset lease expenses and the amount of income obtainedfrom sublease of right-of-use assets is not significant.

Page 136

VI. Change of consolidation scope

1 Disposal of subsidiaries

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

Name of enterprise

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 Smart-aero Display Technology Co., Ltd.

88,028,400

100%

Transfer by agreement

29 July 2021

Received the consideration paid by the buyer

39,320,405

The Group recognised a gain of RMB39,320,405 on disposal of Beijing Smart-aero Display Technology Co., Ltd. resulting in loss of control,which has been included in investment income of consolidated financial statements.

2 Change of consolidation scope

The Company has no significant change of consolidation scope during the year.

Page 137

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%

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%

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%

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%

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 (separate business site); self-support and agency for the import and export of various goods and technologies, except those goods and technologies that are restricted by the country or prohibited from import and export; business management consulting and services; property leases; machinery and equipment leases; technology development, transfer, consulting and services related to LCD products (For business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of the relevant government authorities.).

RMB 17,600,000,000

83.24%

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%

Founded by investment

Shareholding (or

Page 138

similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Beijing BOE Vacuum Electronics Co., Ltd.

Beijing, China

Manufacture and sale of vacuum electronic products

RMB 33,250,000

57.89%

Founded by investment

Beijing BOE Vacuum Technology Co., Ltd.

Beijing, China

Manufacture and sale of electronic tubes

RMB 32,000,000

100%

Founded by investment

*Beijing Smart-Aero Display Technology Co., Ltd. (Formerly known as 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; market survey

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 BOE Multimedia Technology Co., Ltd.

Beijing, China

Technology development, technology transfer, technology consulting and technology services; sales of computer software, hardware and auxiliary equipment, digital video and audio technology products, electronic digital products, video telephone, mobile phones and spare parts, hardware (excluding electric bicycle), household appliances, photographic equipment, sporting goods, Class I medical devices, lamps, stationery, cosmetics, bathroom appliances, knitwear and textile, clothing, daily necessities, timepieces, glasses, toys and food; equipment maintenance; import and export of goods; basic software services; application software service; machinery and equipment leases; design, production, agency and publication of advertisements. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

RMB 400,000,000

100%

Founded by investment

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

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

Beijing BOE Life 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

Investment holding

USD 1,000,000,000

100%

Founded by investment

BOE (Korea) Co.,Ltd.

Korea

Wholesale and retail trade

KRW95,000,000

100%

Founded by investment

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.

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

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

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

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. (“Yunnan Chuangshijie”)

Kunming, China

Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases

RMB 3,040,000,000

79.10%

Founded by investment

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 26,000,000,000

83.46%

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 4,651,482,400

100%

Founded by investment

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

47.14%

Business combinations involving entities not under common control

Chongqing BOE Display Technology Co., Ltd.

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 21,124,724,750

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 141

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

60.20%

Business combinations involving entities not under common control

Hefei BOE Xingyu Technology Co., Ltd. (“Hefei Xingyu”)

Hefei, China

R&D, production and sales of Mini LED backlight components and Mini LED display module components

USD 115,380,000

53.86%

Founded by investment

BOE Education Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology services, technology transfer and technology promotion; software development; basic software services; application software services; computer system services; sales of stationery items, sporting goods, household appliances and electronic products; business management; market research; economic and trade consulting; business management consulting; education consulting; public relations services; corporate image planning; exhibition and presentation activities; conference services; research and experimental development in the natural sciences; research and experimental development in engineering and technology; agricultural scientific research and experimental development; medical research and experimental development; copyright agency; arts and crafts creation services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

RMB 55,000,000

100%

Founded by investment

Page 142

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

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

Beijing, China

Technology development, technology services; application software services; basic software services; sales of daily necessities, fresh fruit, fresh vegetables, primary edible agricultural products, household appliances, electronic products and sporting goods; trade agency; translation services; conference services; organisation of cultural and artistic interchange activities (excluding shows); exhibition and presentation activities; design, production, agency and publication of advertisements; enterprise management; market research; real estate information consulting; warehousing services; public relations services; health management, health consulting (excluding diagnosis and treatment activities subject to the approval); ticket agency; hotel booking agency; airline ticket sales agency; railway and passenger ticket agency services; tourism consulting; hotel management; automobile leases; property management; public parking services for motor vehicle; landscaping management; cleaning services; import and export of goods, import and export agency, import and export of technologies; car decoration; operation of sporting events (excluding high-risk sports); accommodation (branch operation only); catering services (branch operation only); beauty services, hairdressing services (branch operation only); medical services (branch operation only); family services (branch operation only); inbound tourism business; sales of food; internet information services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

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

BOE Smart Technology Co., Ltd.

Beijing, China

Provision of hardware and software integrated system solutions for the IoT market segment; intelligent city, intelligent transport, intelligent finance, intelligent park and the display terminal products such as the intelligent all-in-one machines

RMB 6,521,250,000

100%

Founded by investment

Page 143

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Nanjing BOE Display Technology Co., Ltd. (formerly known as “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

80.83%

Business combinations involving entities not under common control

Chengdu CEC Panda Display Technology Co., Ltd.

Chengdu, 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

35.03%

Business combinations involving entities not under common control

BOE Mled Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology transfer, technology services; software development; basic software services; application software services; computer system services; internet data services (data centres in Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services; general construction contracting, professional contracting, labour subcontracting; installation, maintenance and lease of equipment; literary and artistic creation; computer animation design; product design; enterprise management; enterprise management consulting; sales of computer, software and auxiliary equipment, electronic products

RMB 950,000,000

100%

Founded by investment

Page 144

* Beijing Smart-Aero Display Technology Co., Ltd. was disposed on 29 July 2021, see Note

VI.1.

The Company signed an agreement of acting in concert with Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) agreed to act as a person acting in concert accordingto the wishes of the Company, and exercised the voting rights unconditionally and irrevocablyin accordance with the opinions of the Company. Therefore, the Company’s voting right ratioto Hefei Display Technology is 100%.

The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE,Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,Ltd. and Hubei Changbai Industrial Investment Fund Partnership (Limited Partnership) (湖北省长柏产业投资基金合伙企业（有限合伙）) on 25 December 2018 and 5 February 2021.Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,Ltd. and Hubei Changbai Industrial Investment Fund Partnership (limited Partnership) agreedto follow the Company’s will to act as the persons acting in concert, unconditionally andirrevocably exercising voting rights in accordance with the opinions of the Company, thevoting rights of the Company to Wuhan BOE is 100%.

The Company signed an agreement of acting in concert with shareholders of ChongqingBOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25December 2018. The Company signed an agreement of acting in concert with ChongqingJingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. TheCompany signed an agreement of acting in concert with Chongqing Jianxin Junheng PrivateEquity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing StrategicEmerging Industry Equity Investment Fund Partnership (Limited Partnership), ChongqingYuzi Optoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity InvestmentFund Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity FundPartnership(Limited Partnership) agreed to act as persons acting in concert according to thewill of the Company, and exercise the voting rights unconditionally and irrevocably inaccordance with the opinions of the Company. Therefore, the proportion of voting rights ofthe Company to Chongqing BOE is 100%.

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

Page 145

The Company signed an agreement of acting in concert with shareholders of Chengdu CECPanda and Chengdu Advanced Manufacturing Industry Investment Co., Ltd., ChengduAirport Xingcheng Investment Group Co., Ltd., on 17 December 2020. The Company signedan agreement of acting in concert with Nanjing Panda Information Industry Group Co., Ltd.and China Electronics Corporation on 31 December 2020. The Company signed anagreement of acting in concert with Chengdu Xihanggang Industrial Development InvestmentCo., Ltd. (成都西航港工业发展投资有限公司) on 18 November 2021. Chengdu AdvancedManufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment GroupCo., Ltd., Chengdu Xihanggang Industrial Development Investment Co., Ltd., Nanjing PandaInformation Industry Group Co., Ltd. and China Electronics Corporation agreed to act aspersons 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 to Chengdu CEC Panda is 96.75%.

(2) Material non-wholly owned subsidiaries

Name of the subsidiary	Proportion of ownership interest held by non-controlling interests	?	(Income) / losses attributable to non-controlling interests for 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%	?	3,038,524,882	?	-	?	22,422,308,280
Mianyang BOE	16.54%	?	268,300,651	?	-	?	3,933,910,508
Wuhan BOE	52.86%	?	(1,712,453,524)	?	-	?	14,904,450,980

???

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

The following table sets out the key financial information of the above subsidiaries withoutoffsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:

????

?	Hefei Display Technology			?	Mianyang BOE			?	Wuhan BOE
?	2021	?	2020	?	2021	?	2020	?	2021	?	2020
?	?	?	?	?	?	?	?	?	?	?	?
Current assets	15,797,281,551	?	13,917,088,962	?	9,246,943,007	?	5,001,552,767	?	12,711,279,779	?	11,748,881,218
Non-current assets	24,332,972,509	?	28,144,487,136	?	43,427,820,893	?	45,771,813,314	?	37,827,474,491	?	34,698,575,568
?	?	?	?	?	?	?	?	?	?	?	?
Total assets	40,130,254,060	?	42,061,576,098	?	52,674,763,900	?	50,773,366,081	?	50,538,754,270	?	46,447,456,786
?	?	?	?	?	?	?	?	?	?	?	?
Current liabilities	7,432,659,554	?	8,775,178,650	?	7,343,085,123	?	8,221,423,949	?	7,311,202,489	?	5,369,267,140
Non-current liabilities	8,237,784,012	?	12,162,697,407	?	21,547,455,635	?	19,783,319,398	?	15,031,465,931	?	15,257,510,868
?	?	?	?	?	?	?	?	?	?	?	?
Total liabilities	15,670,443,566	?	20,937,876,057	?	28,890,540,758	?	28,004,743,347	?	22,342,668,420	?	20,626,778,008
?	?	?	?	?	?	?	?	?	?	?	?
Operating income	19,853,911,826	?	15,153,402,394	?	15,201,712,170	?	1,406,636,788	?	15,927,142,620	?	1,775,338,449
Net profit / (loss)	3,314,633,885	?	3,927,966	?	(997,825,728)	?	(830,258,844)	?	2,363,022,009	?	(158,596,684)
Total comprehensive income	3,314,633,885	?	3,927,966	?	(997,825,728)	?	(830,258,844)	?	2,363,022,009	?	(158,596,684)
Cash inflows / (outflows) in operating activities	8,612,667,782	?	3,819,978,355	?	3,591,201,933	?	(1,016,864,877)	?	5,734,190,509	?	2,934,840,804

Page 146

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
?	?	?	?
Vacuum Electronics	55.00%	?	57.89%
Yunnan Chuangshijie	79.96%	?	79.10%
Mianyang BOE	66.67%	?	83.46%
Wuhan BOE	23.08%	?	47.14%
Hefei Xingyu	43.40%	?	53.86%
SES Imagotag SA Co., Ltd.	68.48%	?	60.20%

???

(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 483,893,357. 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.

Page 147

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.

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.

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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 7 to 120 days from the date of billing. Debtors with balances that are past dueare 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 to individual customers. At the balance sheet date, 39% and 0.001%(2020: 33% and 0.02%) of the Contract assets total accounts receivable were due from thefive largest customers of the Group and the Company, respectively. 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 2021 the Groupdoes not provide any external guarantees which would expose the Group or the Company tocredit 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:

?	2021 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	2,156,682,843	?	-	?	-	?	-	?	2,156,682,843	?	2,072,057,332
Bills payable	827,958,031	?	-	?	-	?	-	?	827,958,031	?	827,958,031
Accounts payable	32,455,830,694	?	-	?	-	?	-	?	32,455,830,694	?	32,455,830,694
Other payables	23,835,374,942	?	-	?	-	?	-	?	23,835,374,942	?	23,835,374,942
Non-current liabilities due within one year	29,209,146,646	?	-	?	-	?	-	?	29,209,146,646	?	28,874,958,714
Long-term loans	4,195,689,815	?	19,625,783,023	?	10,743,655,014	?	102,812,410,156	?	137,377,538,008	?	116,078,666,587
Debentures payable	13,392,544	?	305,465,507	?	74,023,980	?	-	?	392,882,031	?	359,586,437
Lease liabilities	-	?	284,759,263	?	138,423,079	?	333,385,847	?	756,568,189	?	669,130,264
Long-term payables	-	?	373,905,903	?	211,205,405	?	457,906,633	?	1,043,017,941	?	906,592,838
?	?	?	?	?	?	?	?	?	?	?	?
Total	92,694,075,515	?	20,589,913,696	?	11,167,307,478	?	103,603,702,636	?	228,054,999,325	?	206,080,155,839

???

????

?	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

Page 150

3 Interest rate risk

Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings of the fixed and floating rate interest-bearing instruments basedon the current market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure. The Group does not enter into financialderivatives to hedge interest rate risk.

(a.) As at 31 December, the Group held the following interest-bearing financial instruments:

Fixed rate instruments:

?	2021			?	2020
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.30% ~ 3.99%	?	36,894,761,961	?	0.20% ~ 3.74%	?	41,745,509,216
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	0.50% ~ 5.90%	?	(2,068,800,511)	?	0.50% ~ 5.90%	?	(6,327,791,477)
- Non-current liabilities due within one year	0% ~ 6.86%	?	(9,407,794,957)	?	0% ~ 5.29%	?	(12,025,528,359)
- Long-term loans	0% ~ 5.90%	?	(28,644,395,246)	?	0% ~ 5.90%	?	(49,498,675,910)
- Debentures payable	3.50% ~ 4.55%	?	(359,586,437)	?	3.50% ~ 4.55%	?	(398,971,739)
- Long-term payables	4.65% ~ 6.86%	?	(906,592,838)	?	4.17% ~ 7.02%	?	(2,114,175,683)
?
Total	?	?	(4,492,408,028)	?	?	?	(28,619,633,952)

???

Floating rate instruments:

????

?	2021			?	2020
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.0001% ~ 2.70%	?	41,471,269,422	?	0.0001% ~ 3.90%	?	31,800,233,366
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	-	?	-	?	2.02% ~ 2.55%	?	(2,263,424,127)
- Non-current liabilities due within one year	1.66% ~ 5.88%	?	(18,827,495,477)	?	2.78% ~ 5.88%	?	(12,128,797,769)
- Long-term loans	2.30% ~ 5.88%	?	(87,317,668,185)	?	1.11% ~ 5.39%	?	(82,790,180,032)
?	?	?	?	?	?	?	?
Total	?	?	(64,673,894,240)	?	?	?	(65,382,168,562)

???

Page 151

(b) Sensitivity analysis

As at 31 December 2021, it is estimated that a general increase / decrease of 100basis points in interest rates of variable rate instrument, with all other variables heldconstant, would decrease / increase the Group’s net profit and equity by RMB549,530,000 (2020: RMB 557,440,000).

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 owner’s equity is estimated as an annualised impact on interest expenseor income of such a change in interest rates. The analysis is performed on the samebasis for the previous year.

4 Foreign currency risk

In respect of cash at bank and on hand, accounts receivable and payable, short-term loansand other assets and liabilities denominated in foreign currencies other than the functionalcurrency, the Group ensures that its net exposure is kept to an acceptable level by buying orselling foreign currencies at spot rates when necessary to address short-term imbalances.

(a) The Group’s exposure as at 31 December to currency risk arising from recognized

foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 177,293,137 (2020 net liabilitiesexposure: USD 2,618,785,628), translated into RMB 1,130,367,854 (2020: RMB17,087,314,344), 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
?	2021	?	2020	?	2021	?	2020
?	?	?	?	?	?	?	?
USD	6.4503	?	6.7506	?	6.3757	?	6.5249

???

Assuming all other risk variables remained constant, a 5% strengthening / weakeningof the Renminbi against the US dollar at 31 December would have decreased /increased both the Group’s equity and net profit by the amount RMB 164,148,318(2020: increased / decreased RMB 333,959,173).

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.

Page 152

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;

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

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

?	?	31 December 2021
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	V. 2	-	?	-	?	10,028,172,853	?	10,028,172,853
Including: Structured deposit and wealth-management products	?	-	?	-	?	10,028,172,853	?	10,028,172,853
- Investments in other equity instruments	V. 12	168,325,009	?	-	?	350,763,137	?	519,088,146
- Other non-current financial assets	V. 13	-	?	-	?	606,895,447	?	606,895,447
Including: Investments in other equity instruments	?	-	?	-	?	606,895,447	?	606,895,447
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	168,325,009	?	-	?	10,985,831,437	?	11,154,156,446

???

????

?	?	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 deposit 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

Page 153

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.

4 During 2021, there were no changes in valuation technique of fair value. As at 31 December,

the Group held no assets and liabilities measured at fair value. All financial assets andfinancial liabilities of the Group are carried at amounts not materially different from their fairvalue.

Page 154

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	?	0.71%	?	17.87%	?	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 Nissin Electronics Precision Component Co., Ltd.	Associate of the Group and the Company
Beijing Nittan Electronic Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud Technology Co., Ltd.	Associate of the Group and the Company
TPV Display Technology (China) Limited	Associate of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd.	Associate of the Group and the Company
Shenzhen Yunyinggu Technology Co., Ltd.	Associate of the Group and the Company
Biochain (Beijing) Science-Technology.Inc.	Associate of the Group
Beijing BOE Microbial Technology Co., Ltd.	Associate of the Group
Hefei Xin Jing Yuan Electronic Materials Co., Ltd.	Associate of the Group
Beijing YanDong MicroElectronic Co., Ltd.	Associate of the Group
Qingdao Ultra HD Video Innovation Technology Co., Ltd.	Associate of the Group
BOE Houji Technology (Beijing) Co., Ltd.	Associate of the Group
Changzhou Xiruojia Medical Technology Co., Ltd.	Subsidiary of associate of the Group
Beijing Borcheng Medical Laboratory Co. Ltd.	Subsidiary of associate of the Group

???

Page 155

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
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 Electrical Control Jiuyi Industrial Development Company	Under the same control of the ultimate holding company
Beijing Smart-Aero Display Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electrical Energy Technology (Jiangsu) 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
NAURA Technology Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Naura Microelectronics Equipment 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
761 Workshop (Beijing) Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Ripeness Sanyuan Instrumentation 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 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 Yandong Microelectronic Co., Ltd.	Under the same control of the ultimate holding company
Beijing Sevenstar-Hitech Electronic Equipment Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Automation Equipment Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Electronics (Group) Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Technology Co., Ltd.	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 Senju Electronic Materials Co., Ltd.	Associate of enterprise that is under the same control of the ultimate holding company
Beijing Yizhuang Environmental Technology Group Co., Ltd.	Other related parties
Beijing Asahi Electronic Materials Co., Ltd.	Other related parties
China Minsheng Banking Corp., Ltd.	Other related parties

Page 156

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	2021	?	2020
?	?	?	?
Purchase of goods	965,818,931	?	698,585,167
Procurement of equipment	255,199,826	?	169,998,650
Receiving of services	24,377,762	?	17,527,375
?	?	?	?
Total	1,245,396,519	?	886,111,192

???

The Company

???Nature of transaction

Nature of transaction	2021	?	2020
?	?	?	?
Purchase of goods	9,164,606	?	14,438,544
Receiving of services	249,160,057	?	544,225,068
?	?	?	?
Total	258,324,663	?	558,663,612

???

(2) Sale of goods/rendering of services

The Group

???Nature of transaction

Nature of transaction	2021	?	2020
?	?	?	?
Sale of goods	416,546,796	?	20,817,125
Rendering of services	10,267,108	?	4,762,316
?	?	?	?
Total	426,813,904	?	25,579,441

???

Page 157

The Company

Nature of transaction	Lease income recognised in 2021	?	Lease income recognised in 2020
?	?	?	?
Sale of goods	23,488,144	?	3,366,359
Rendering of services	5,561,607,938	?	4,406,612,262
Interest income received	17,015,526	?	4,044,123
?	?	?	?
Total	5,602,111,608	?	4,414,022,744

???

(3) Leases

(a) As the lessor

The Group

???Type of assets leased

Type of assets leased	Lease income recognised in 2021	?	Lease income recognised in 2020
?	?	?	?
Investment properties	5,114,048	?	1,092,879

???

The Company

???Type of assets leased

Type of assets leased	Lease income recognised in 2021	?	Lease income recognised in 2020
?	?	?	?
Investment properties	70,534,069	?	66,764,268

???

(b) As the lessee

The Group

???Type of assets leased

Type of assets leased	Lease expense recognised in 2021	?	Lease expense recognised in 2020
?	?	?	?
Fixed assets	2,804,351	?	2,329,933

???

Page 158

(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	?	28/05/2019	?	31/12/2023
Subsidiary of the parent company	300,000,000	?	08/07/2020	?	31/12/2023
Subsidiary of the parent company	60,000,000	?	31/12/2021	?	31/12/2023
Subsidiary of the parent company	2,000,000,000	?	09/06/2017	?	31/12/2023
Subsidiary of the parent company	700,000,000	?	13/04/2018	?	31/12/2023
Subsidiary of the parent company	2,000,000,000	?	27/05/2019	?	31/12/2023
Subsidiary of the parent company	360,000,000	?	24/04/2020	?	31/12/2023
Subsidiary of the parent company	2,500,000,000	?	06/07/2020	?	31/12/2023
Subsidiary of the parent company	1,700,000,000	?	12/10/2020	?	31/12/2023
Subsidiary of the parent company	1,700,000,000	?	28/12/2020	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	09/03/2021	?	31/12/2023
Subsidiary of the parent company	500,000,000	?	30/06/2021	?	31/12/2023
Subsidiary of the parent company	1,200,000,000	?	30/09/2015	?	31/12/2023
Subsidiary of the parent company	650,000,000	?	25/04/2018	?	31/12/2023
Subsidiary of the parent company	3,500,000,000	?	01/08/2018	?	31/12/2023
Subsidiary of the parent company	1,500,000,000	?	24/05/2019	?	31/12/2023
Subsidiary of the parent company	2,000,000,000	?	03/07/2020	?	31/12/2023
Subsidiary of the parent company	3,000,000,000	?	05/11/2020	?	31/12/2023
Subsidiary of the parent company	900,000,000	?	11/12/2020	?	31/12/2023
Subsidiary of the parent company	4,000,000,000	?	25/03/2021	?	31/12/2023
Subsidiary of the parent company	300,000,000	?	29/12/2021	?	31/12/2023
Subsidiary of the parent company	200,000,000	?	28/07/2017	?	31/12/2023
Subsidiary of the parent company	1,600,000,000	?	04/12/2017	?	31/12/2023
Subsidiary of the parent company	3,800,000,000	?	19/07/2018	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	26/07/2019	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	20/08/2020	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	23/06/2021	?	31/12/2023
Subsidiary of the parent company	60,000,000	?	31/12/2021	?	31/12/2023
Subsidiary of the parent company	4,000,000,000	?	09/06/2017	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	23/12/2016	?	31/12/2023
Subsidiary of the parent company	3,000,000,000	?	27/04/2018	?	31/12/2023
Subsidiary of the parent company	2,500,000,000	?	31/08/2018	?	31/12/2023
Subsidiary of the parent company	500,000,000	?	21/05/2019	?	31/12/2023
Subsidiary of the parent company	2,300,000,000	?	28/12/2020	?	31/12/2023
Subsidiary of the parent company	1,200,000,000	?	06/07/2020	?	31/12/2023
Subsidiary of the parent company	2,500,000,000	?	30/03/2021	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	30/12/2021	?	31/12/2023
Subsidiary of the parent company	3,000,000,000	?	28/05/2018	?	31/12/2023
Subsidiary of the parent company	1,300,000,000	?	21/05/2019	?	31/12/2023
Subsidiary of the parent company	1,000,000,000	?	18/03/2021	?	31/12/2023
Subsidiary of the parent company	350,000,000	?	05/07/2021	?	31/12/2023
Subsidiary of the parent company	5,400,000,000	?	07/12/2020	?	31/12/2023
Subsidiary of the parent company	650,000,000	?	16/03/2021	?	31/12/2023
Subsidiary of the parent company	4,500,000,000	?	23/06/2021	?	31/12/2023
Subsidiary of the parent company	600,000,000	?	29/12/2021	?	31/12/2023
?	?	?	?	?	?
Total	73,830,000,000	?	?	?	?

???

Page 159

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds provided	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	50,000,000	?	27/03/2015	?	26/12/2024
Subsidiary of the parent company	30,000,000	?	21/01/2016	?	21/01/2022
Subsidiary of the parent company	40,000,000	?	20/01/2020	?	20/01/2022
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	100,000,000	?	24/12/2019	?	13/12/2022
Subsidiary of the parent company	50,000,000	?	28/04/2020	?	13/12/2022
Subsidiary of the parent company	290,000,000	?	24/11/2020	?	24/11/2023
Subsidiary of the parent company	900,000,000	?	05/11/2020	?	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	?	13/12/2022
Subsidiary of the parent company	650,000,000	?	20/12/2019	?	13/12/2022
Subsidiary of the parent company	100,000,000	?	24/12/2019	?	13/12/2022
Subsidiary of the parent company	770,000,000	?	19/02/2020	?	17/02/2023
Subsidiary of the parent company	800,000,000	?	30/04/2020	?	17/02/2023
Subsidiary of the parent company	1,490,000,000	?	21/10/2020	?	20/10/2023
Subsidiary of the parent company	482,000,000	?	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	350,000,000	?	20/12/2019	?	13/12/2022
Subsidiary of the parent company	50,000,000	?	24/12/2019	?	13/12/2022
Subsidiary of the parent company	200,000,000	?	08/07/2021	?	28/06/2026
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	?	13/12/2022
Subsidiary of the parent company	180,000,000	?	24/12/2019	?	13/12/2022
Subsidiary of the parent company	70,000,000	?	28/04/2020	?	13/12/2022
Subsidiary of the parent company	130,000,000	?	28/04/2020	?	17/12/2022
Subsidiary of the parent company	500,000,000	?	20/11/2020	?	20/11/2023
Subsidiary of the parent company	340,000,000	?	19/02/2020	?	17/02/2023
Subsidiary of the parent company	170,000,000	?	28/02/2020	?	17/02/2023
Subsidiary of the parent company	300,000,000	?	08/07/2021	?	28/06/2026
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	1,408,000,000	?	24/11/2020	?	24/11/2023
Subsidiary of the parent company	300,000,000	?	08/07/2021	?	28/06/2026
?	?	?	?	?	?
Total	15,170,000,000	?	?	?	?

???

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(5) Remuneration of key management personnel

The Group and the Company

Item	2021	?	2020
?	?	?	?
Remuneration of key management personnel	110,629,000	?	56,368,000

???

The remuneration of key management personnel above does not include the one withrespect to 2021 share-based payments scheme.

6 Receivables from and payables to related parties

Receivables from related parties

The Group

????

?	2021			?	2020
tem	Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?	?	?	?	?	?	?	?
Accounts receivable	88,954,909	?	4,883,531	?	38,773,536	?	-
Contract Assets	122,743	?	-	?	-	?	-
Prepayments	1,118,145	?	-	?	7,678,237	?	-
Other receivables	1,901,777	?	-	?	14,062,445	?	-

???

The Company

????

?	2021			?	2020
Item	Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?	?	?	?	?	?	?	?
Accounts receivable	4,827,924,553	?	-	?	3,988,518,583	?	14,979,329
Prepayments	165,134	?	-	?	153,768	?	-
Dividends receivable	219,715,564	?	-	?	460,261,502	?	-
Other receivables	15,067,301,618	?	2,964,404	?	15,724,164,267	?	46,377,509
Other non-current assets	1,740,000,000	?	-	?	2,606,920,400	?	-

???

Page 161

Payables to related parties

The Group

Item	2021	?	2020
?	?	?	?
Accounts payable	142,557,107	?	108,759,439
Advance payments received	961,806	?	6,018,519
Contract liabilities	3,717,500	?	1,604,187
Other payables	178,187,139	?	183,204,239

???

The Company

???Item

Item	2021	?	2020
?	?	?	?
Accounts payable	18,924,459	?	236,990,054
Advance payments received	3,212,352	?	8,735,465
Other payables	1,364,404,865	?	3,051,622,542
Other non-current liabilities	74,506,661,805	?	56,156,661,805

???

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:

????

?	2021	?	2020
?	?	?	?
Procurement of equipment	72,274,623	?	254,763,625

???

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XI. Share-based payments

On 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. The plans are presented 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 reserved grant date was 27 August 2021, the actual numberof grantees was 110, and the number of grants is 33,000,000 shares, this grant wascompleted on 22 October 2021.

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

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

(b) Restricted share incentive plan

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

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

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

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As at 31 December 2021, the total costs recognised by the Group’s equity-settled share-based payments in the consolidated financial statement was RMB 640,692,637, and theaccumulated amount of capital reserve paid by equity-settled share-based paymentsamounted to RMB 645,945,833. In the Company’s financial statements, the Companyrecognised its long-term equity investment of RMB 500,606,924 in its subsidiary at the fairvalue of the equity instruments at the grant date, and recognised expenses arising fromshare-based payments of RMB 140,142,667, as well as a capital reserve of RMB640,692,637.

Based on relevant provisions of the restricted share incentive plan for the service period, ifthe granted object resigns before the release date, the Company will repurchase therestricted shares that have not been released at the subscription price of the granted object.Please refer to Note V. 29 (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); the fair value of equity instruments at the reservedgrant date is determined based on the difference between the assessed fair value ofthe exercisable share options at each reserved grant date and the subscription price inRMB (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share, respectively).

Restricted shares:

The fair value of equity instruments at the grant date is determined based on thedifference between the fair value of shares at the grant date and the subscription priceat 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 are grantedoptions and the completion of performance indicators, and the number of equityinstruments expected to vest is revised accordingly. On the vesting date, the estimatednumber is equal to the number of equity instruments that are ultimately vested.

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.

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 cash

Page 164

flows, 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 2020. 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 2021 and 31 December 2020, the Group’s asset-liability ratios are asfollows:

?	2021	?	2020
?	?	?	?
Asset-liability ratio	51.78%	?	59.13%

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	2021	?	2020
?	?	?	?
Contracts entered into but not performed or partially performed	36,353,906,810	?	58,885,156,561
Contracts authorized but not entered into	84,007,549,386	?	74,192,859,943
?	?	?	?
Total	120,361,456,196	?	133,078,016,504

???

The Group’s contracts authorised but not entered into mainly included the fixed assets thatChongqing BOE Display, Fuzhou BOE Display, Mianyang BOE, Kunming BOE, Suzhou K-Tronics, Health Investment and Wuhan BOE planned to purchase in subsequent years andproject equipment that the Group planned to purchase in subsequent years.

???

The Company

The Company	2021	?	2020
?	?	?	?
Contracts entered into but not performed or partially performed	25,226,123,138	?	39,391,365,336

???

The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Chongqing BOE Display, Fuzhou BOE Display, BOESmart Technology Co., Ltd. and Health Investment.

Page 165

2 Guarantee

(1) The Group as the guarantor

As at 31 December 2021, the Group did not have guarantees provided for external

enterprises.

(2) The Company as the guarantor

At 31 December 2021, Chengdu Optoelectronics pledged its land use right with carryingamount of RMB 40,257,358, construction in progress with carrying amount of RMB251,614,208, machinery and equipment with carrying amount of RMB 29,981,934,456 andplants and buildings with carrying amount of RMB 2,381,654,025 as collaterals to obtainlong-term loans of USD 859,740,000 and RMB 14,595,100,000. 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 RMB395,000,000.

At 31 December 2021, Yuansheng Optoelectronics pledged its land use rights with carryingamount of RMB 44,564,690, machinery and equipment with carrying amount of RMB7,217,890,323 and plant and buildings with carrying amount of RMB 2,101,390,080 ascollaterals to obtain long-term loans of RMB 1,554,550,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2021, Chongqing BOE Display pledged its land use right with carryingamount of RMB 163,285,716 as collaterals to obtain long-term loans of USD 804,000,000and RMB 2,626,000,000. The Company provides joint-liability guarantee for the above loans.In addition, the Company provides joint-liability guarantee for the letters of credit issued butnot accepted of USD 4,200,889 and JPY 128,251,000.

At 31 December 2021, Chongqing BOE pledged its land use rights with carrying amount ofRMB 129,192,476, machinery and equipment with carrying amount of RMB 4,192,400,886and plant and buildings with carrying amount of RMB 3,568,105,312 as collaterals to obtainlong-term loans of USD 167,240,000 and RMB 131,040,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2021, Fuzhou BOE pledged its land use right with carrying amount of RMB202,793,121, with machinery and equipment carrying amount of RMB 8,484,825,161 andplants and buildings with carrying amount of RMB 2,988,060,054 as collaterals to obtainlong-term loans of USD 423,000,000 and RMB 1,879,740,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2021, Hefei Display Technology pledged its land use rights with carryingamount of RMB 280,258,086, machinery and equipment with carrying amount of RMB15,686,591,945 and plant and buildings with carrying amount of RMB 4,136,421,272 ascollaterals to obtain long-term loans of USD 897,620,000 and RMB 4,799,254,080. TheCompany provides joint-liability guarantee for the above loans.

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At 31 December 2021, Mianyang BOE pledged its land use rights with carrying amount ofRMB 380,709,305, machinery and equipment with carrying amount of RMB 27,823,641,613and plant and buildings with carrying amount of RMB 5,003,805,171 as collaterals to obtainlong-term loans of USD 911,350,000 and RMB 13,579,379,340. 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 6,242,363 and the long-term letter of guarantee issued but not accepted of RMB 480,000,000.

At 31 December 2021, Wuhan BOE pledged its land use right with carrying amount of RMB249,533,924, machinery and equipment with carrying amount of RMB 26,124,061,091 andplants and buildings with carrying amount of RMB 4,738,970,130 as collaterals to obtainlong-term loans of USD 1,232,000,000 and RMB 7,673,000,000. 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 JPY 1,557,350,000.

At 31 December 2021, Chengdu Hospital obtain long-term loans of RMB 1,153,092,146. TheCompany provides joint-liability guarantee for the above loans.

At 31 December 2021, Nanjing BOE Display pledged its plant and buildings with carryingamount of RMB 4,238,396,675 as collaterals to obtain long-term loans of USD 196,200,000.The Company guarantees 60% of the above loan (i.e., USD 117,720,000) by means of acounter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machineryand equipment with carrying amount of RMB 407,414,018 as collaterals to obtain financelease loans of RMB 255,000,000. The Company provides joint-liability guarantee for theabove loans. In addition, the Company provided joint-liability guarantee by means of counterguarantee for its short-term borrowings of RMB 1,350,000,000 and long-term borrowings ofRMB 1,200,000,000.

XIV. Subsequent events

On 25 March 2021, BOE Technology Group Co., Ltd. publicly issued the renewablecorporate bonds (digital economy) (phase I) to professional investors with a bondabbreviation “22BOEY1”, with a total of RMB 2 billion, and the nominal interest rate is 3.50%.

XV. Segment reporting

1 Segment reporting considerations

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

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

display devices and strives to offer TFT-LCD, AMOLED, Oxide, Microdisplay and otherintelligent interface devices. 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.

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(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates

manufacturing models for system solution design, providing customers with competitivesmart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low powerconsumption products, IoT, 3D displays, etc. With artificial intelligence and big data astechnical support, it focuses on products and services that integrate software andhardware, providing integrated solutions in IoT segments such as smart finance, smartparks, smart administration, smart transportation, urban light space, smart energy, aswell as product line areas such as all-in-one machines and large sizes.

manufacturing models for system solution design. It focuses on various fields such asmedical bio-detection, transportation and construction, consumer electronics,microwave communication and industrial sensing, providing customers with integrateddesign and manufacturing of sensor devices and system solution services. Specificproducts and solutions include flat panel X-ray detectors (FPXD), digital microfluidicchips, PDLC glass, fingerprint identification systems, industrial sensors, etc.

(d) MLED — The MLED integrates design and manufacturing of devices and provides

Mini-LED backlight products with strong reliability and high dynamic range that allowprecisely brightness adjustment for smartphones, tablet PCs, laptops, monitors, TVscar displays, wearables and other products; besides, it provides Mini/Micro-LED displayproducts with high brightness, strong reliability and high contrast for use in outdoordisplay, commercial display, transparent display, special display and other scenarios.

(e) Smart medicine and engineering — The smart medicine and engineering provides

professional healthcare services and features the innovative integration of medical andengineering by integrating technology and medical science. Adhering to people-centredthought, this business focuses on family, community and hospital and emphasisesdeveloping four business units, such as health management, health technology, digitalhospital and technology services. It strives to create interconnection among testingequipment, medical personnel and customers through healthcare IoT platform andbuild an intelligent health management ecosystem to provide customers with one-stophealth services of "prevention-diagnosis and treatment-health care”.

(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, IoT innovation business, sensor and application solutions, MLEDand smart medicine and engineering and other businesses. As these businesssegments manufacture and sale different products, apply different manufacturingprocesses and specifies in gross profit, the business segments are managedindependently. The management evaluates the performance and allocates resourcesaccording to the profit of each business segment and does not take financing cost andinvestment income into account.

Page 168

2 Accounting policies for the measurements of reporting segments

For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and costs attributable to eachreportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.

2021

Display business

IoT innovation business

Sensor & application solutions

MLED

Smart medicine & engineering

Others

Offsetting

Total

Operating income

202,219,268,075

28,379,332,761

216,187,403

451,525,233

1,846,551,592

11,308,029,354

(25,111,094,913)

219,309,799,505

Operating costs

148,920,717,889

25,108,953,836

166,800,549

436,645,746

1,370,997,955

3,100,671,887

(23,119,562,567)

155,985,225,295

2020

Display business

IoT innovation business

Sensor & application solutions

MLED

Smart medicine & engineering

Others

Offsetting

Total

Operating income

123,077,882,346

19,178,428,559

119,817,921

1,522,460,282

7,372,351,461

(15,718,370,840)

135,552,569,729

Operating costs

102,650,861,838

16,883,719,082

75,405,672

724,268,025

2,213,785,494

(12,138,157,907)

110,409,882,204

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 2020 according to segmentreporting in 2021.

Page 169

3 Secondary segment reporting (regional segments)

(a) The geographical information is based on the location of customers receiving services

or goods

The following table sets out information about the geographical location of the Group’soperating income from external customers:s

?	Operating income from external customers
?	2021	?	2020
?	?	?	?
Mainland China	93,850,467,813	?	65,241,679,286
Other Asian countries and regions	96,116,878,840	?	54,895,384,319
Europe	5,478,685,805	?	4,804,966,123
America	23,770,495,392	?	10,316,934,261
Other regions	93,271,655	?	293,605,740
?	?	?	?
Total	219,309,799,505	?	135,552,569,729

???

(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 joint ventures. Most of the non-current assets in the Group are located in the Chinese mainland.

4 Major customers

The Group has no customer (2020: 2 customers), the operating income from which is over10% of the Group’s total operating income (2020: the operating income from thesecustomers represented RMB 35,420,533,749, which was approximately 26% of the Group’stotal operating income).

Page 170

XVI. Notes to the Company’s financial statements

1 Cash at bank and on hand

?	2021					?	2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
USD	5	?	6.3757	?	32	?	5	?	6.5249	?	31
HKD	165	?	0.8176	?	135	?	165	?	0.8416	?	139
JPY	1,325	?	0.0554	?	73	?	51,325	?	0.0632	?	3,244
KRW	-	?	0.0054	?	-	?	420,000	?	0.0060	?	2,520
GBP	347	?	8.6064	?	2,986	?	-	?	-	?	-
CHF	400	?	6.9776	?	2,791	?	-	?	-	?	-
SGD	1,381	?	4.7179	?	6,515	?	-	?	-	?	-
Other foreign currencies	?	?	?	?	22	?	?	?	?	?	16,662
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	12,554	?	?	?	?	?	22,596
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	5,524,816,219	?	?	?	?	?	2,694,966,600
USD	1,183,006	?	6.3757	?	7,542,493	?	257,341,260	?	6.5249	?	1,679,125,986
HKD	4,337,000	?	0.8176	?	3,545,931	?	1,641,906	?	0.8416	?	1,381,828
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	5,535,904,643	?	?	?	?	?	4,375,474,414
?	?	?	?	?	?	?	?	?	?	?	?
Other monetary funds	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	73,447,625	?	?	?	?	?	-
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	73,447,625	?	?	?	?	?	-
?
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	5,609,364,822	?	?	?	?	?	4,375,497,010

???

Including: Total overseas deposits were equivalent to RMB 146,479 (2020: RMB150,742) .

On 31 December 2021, the Company’s other monetary funds of RMB72,454,721 wereinvestment deposits for share repurchase placed in the securities company’s account thatcan be readily withdraw on demand. Others are restricted monetary funds, which representmargin deposits of RMB992,904 placed in the commercial banks (2020: nil).

Page 171

2 Accounts receivable

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

?	31 December 2021	?	31 December 2020
?	?	?	?
Amounts due from subsidiaries	4,827,924,553	?	3,988,518,583
Amounts due from other customers	5,195,374	?	5,995,278
?	?	?	?
Sub-total	4,833,119,927	?	3,994,513,861
?	?	?	?
Less: Provision for bad and doubtful debts	4,264,652	?	20,301,553
?	?	?	?
Total	4,828,855,275	?	3,974,212,308

???

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

???Ageing

Ageing	2021	?	2020
?	?	?	?
Within 1 year (inclusive)	4,506,053,150	?	3,813,737,996
Over 1 year but within 2 years (inclusive)	184,286,182	?	163,379,898
Over 2 years but within 3 years (inclusive)	141,556,611	?	-
Over 3 years	1,223,984	?	17,395,967
?	?	?	?
Sub-total	4,833,119,927	?	3,994,513,861
?	?	?	?
Less: Provision for bad and doubtful debts	4,264,652	?	20,301,553
?	?	?	?
Total	4,828,855,275	?	3,974,212,308

???

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

Page 172

(3) Accounts receivable by provisioning method

?	2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	4,090,353	?	0%	?	4,090,353	?	100%	?	-
- Customers with low credit risk	4,828,194,553	?	100%	?	-	?	0%	?	4,828,194,553
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	835,021	?	0%	?	174,299	?	21%	?	660,722
?	?	?	?	?	?	?	?	?	?
Total	4,833,119,927	?	100%	?	4,264,652	?	0%	?	4,828,855,275

???

????

?	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

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

???

?	2021	?	2020
?	?	?	?
Balance at the beginning of the year	20,301,553	?	20,264,100
Charge during the year	135,218	?	37,453
Reversal during the year	(136)	?	-
Written-off during the year	(16,171,983)	?	-
?	?	?	?
Balance at the end of the year	4,264,652	?	20,301,553

???

Page 173

(5) Five largest accounts receivable by debtor at the end of the year

The five largest accounts receivable of the Company amounted to RMB 4,426,651,135,amounting to 91.59% of the total accounts receivable at the end of the year, and noprovisions for bad and doubtful debts were made at the end of the year.

3 Other receivables

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Dividends receivable	(1)	219,715,564	?	460,261,502
Others	(2)	15,230,115,046	?	15,885,213,081
?	?	?	?	?
Total	?	15,449,830,610	?	16,345,474,583

???

(1) Dividends receivable

????

?	31 December 2021	?	31 December 2020
?	?	?	?
Chongqing BOE Optoelectronics Technology Co., Ltd.	-	?	400,000,000
Beijing Electronics Zone Investment and Development Co., Ltd.	-	?	1,842,137
BOE (Korea) Co.,Ltd.	5,474,703	?	6,125,106
Beijing Matsushita Colour Innovation Co., Ltd.	214,240,861	?	52,294,259
?	?	?	?
Total	219,715,564	?	460,261,502

Page 174

(2) Others

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

Customer type	31 December 2021	?	31 December 2020
?	?	?	?
Amounts due from subsidiaries	15,065,482,829	?	15,710,102,798
Amounts due from other related parties	1,818,789	?	14,061,469
Amounts due from other customers	169,615,338	?	210,988,466
?	?	?	?
Sub-total	15,236,916,956	?	15,935,152,733
?	?	?	?
Less: Provision for bad and doubtful debts	6,801,910	?	49,939,652
?	?	?	?
Total	15,230,115,046	?	15,885,213,081

???

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

As at 31 December 2021 and 31 December 2020, there is no other receivables inforeign currency.

????

?	2021	?	2020
?	?	?	?
Within 1 year (inclusive)	5,896,130,713	?	12,252,487,143
Over 1 year but within 2 years (inclusive)	6,954,523,850	?	3,610,709,401
Over 2 years but within 3 years (inclusive)	2,348,713,430	?	19,445,996
Over 3 years	37,548,963	?	52,510,193
?	?	?	?
Sub-total	15,236,916,956	?	15,935,152,733
?	?	?	?
Less: Provision for bad and doubtful debts	6,801,910	?	49,939,652
?	?	?	?
Total	15,230,115,046	?	15,885,213,081

???

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

Page 175

(d) Other receivables by provisioning method

?	2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Individual assessment	6,801,910	?	0%	?	6,801,910	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	15,230,115,046	?	100%	?	-	?	0%	?	15,230,115,046
?	?	?	?	?	?	?	?	?	?
Total	15,236,916,956	?	100%	?	6,801,910	?	0%	?	15,230,115,046

?	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

(e) Movements of provisions for bad and doubtful debts

?	2021	?	2020
?	?	?	?
Balance at the beginning of the year	49,939,652	?	44,600,216
Charge for the year	5,112,258	?	5,339,436
Written-off during the year	(48,250,000)	?	-
?	?	?	?
Balance at the end of the year	6,801,910	?	49,939,652

???

Page 176

(f) Other receivables categorised by nature

Nature of other receivables	2021	?	2020
?	?	?	?
Transaction amount	15,065,482,829	?	15,844,170,864
Others	171,434,127	?	90,981,869
?	?	?	?
Sub-total	15,236,916,956	?	15,935,152,733
?	?	?	?
Less: Provision for bad and doubtful debts	6,801,910	?	49,939,652
?	?	?	?
Total	15,230,115,046	?	15,885,213,081

???

(g) 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 13,723,863,214 in total, most of which are borrowings. No provisionis made for bad and doubtful debts after assessment.

4 Other current assets

????

?	2021	?	2020
?	?	?	?
VAT on tax credits	1,170,039	?	45,621,676
Others	166,008,984	?	132,140,042
?	?	?	?
Total	167,179,023	?	177,761,718

???

Page 177

5 Long-term equity investments

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

?	2021	?	2020
?	?	?	?
Investments in subsidiaries	207,777,846,290	?	179,426,966,866
Investments in associates and joint ventures	3,199,974,945	?	2,800,090,342
?	?	?	?
Sub-total	210,977,821,235	?	182,227,057,208
?	?	?	?
Less: Provision for impairment	32,000,000	?	92,000,000
?	?	?	?
Total	210,945,821,235	?	182,135,057,208

???

The Company disposed of its subsidiary, Beijing Smart-aero Display Technology Co., Ltd inthe current year, written off the corresponding prior years impairment provision of RMB60,000,000. The closing balance represents the Company's impairment provision for itssubsidiary Beijing BOE Vacuum Technology Co., Ltd. in the prior year of RMB 32,000,000.

Page 178

(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.	4,172,973,427	?	-	?	25,769,527	?	-	?	4,198,742,954	?	-	?	-
Chengdu BOE Optoelectronics Technology Co., Ltd.	25,004,494,319	?	-	?	51,109,541	?	-	?	25,055,603,860	?	-	?	-
Hefei BOE Optoelectronics Technology Co., Ltd.	9,000,846,416	?	-	?	31,233,392	?	-	?	9,032,079,808	?	-	?	-
Beijing BOE Display Technology Co., Ltd.	17,421,341,981	?	-	?	98,826,758	?	-	?	17,520,168,739	?	-	?	-
Hefei Xinsheng Optoelectronics Technology Co., Ltd.	20,084,018,610	?	-	?	38,714,569	?	-	?	20,122,733,179	?	-	?	-
Ordos Yuansheng Optoelectronics Co., Ltd.	11,804,123,592	?	-	?	4,751,033	?	-	?	11,808,874,625	?	-	?	-
Chongqing BOE Optoelectronics Technology Co., Ltd.	19,565,866,421	?	-	?	18,956,983	?	-	?	19,584,823,404	?	-	?	-
Fuzhou BOE Optoelectronics Technology Co., Ltd.	14,300,602,919	?	366,344,118	?	20,846,744	?	-	?	14,687,793,781	?	-	?	-
Beijing BOE Vision Electronic Technology Co., Ltd.	4,093,536,288	?	-	?	1,377,040	?	-	?	4,094,913,328	?	-	?	-
Beijing BOE Vacuum Electronics Co., Ltd.	19,258,410	?	-	?	319,127	?	-	?	19,577,537	?	-	?	-
Beijing BOE Vacuum Technology Co., Ltd.	32,000,000	?	-	?	-	?	-	?	32,000,000	?	32,000,000	?	32,000,000
*Beijing Smart-aero Display Technology Co., Ltd. (Beijing BOE Special Display Technology Co., Ltd. (Special Display))	100,113,695	?	-	?	2,387,595	?	(102,501,290)	?	-	?	60,000,000	?	-
Beijing Yinghe Century Co., Ltd.	333,275,229	?	-	?	8,909,335	?	-	?	342,184,564	?	-	?	-
BOE Optical Science and technology Co., Ltd.	659,042,674	?	-	?	3,125,597	?	-	?	662,168,271	?	-	?	-
BOE Hyundai LCD (Beijing) Display Technology Co., Ltd.	31,181,960	?	-	?	5,442,881	?	-	?	36,624,841	?	-	?	-
BOE (Hebei) Mobile Technology Co., Ltd.	1,353,691,563	?	-	?	1,248,631	?	-	?	1,354,940,194	?	-	?	-
Beijing BOE Multimedia Technology Co., Ltd.	400,000,000	?	-	?	-	?	-	?	400,000,000	?	-	?	-
Beijing BOE Energy Technology Co., Ltd.	850,110,069	?	-	?	4,176,824	?	-	?	854,286,893	?	-	?	-
Beijing BOE Life Technology Co., Ltd.	10,000,000	?	-	?	-	?	-	?	10,000,000	?	-	?	-
Beijing Zhongxiangying Technologies Co., Ltd.	50,014,864	?	50,000,000	?	564,055	?	-	?	100,578,919	?	-	?	-
BOE Semi-conductor Co., Ltd.	9,450,000	?	-	?	-	?	-	?	9,450,000	?	-	?	-
BOE Optoelectronics Holding Co., Ltd	3,211,961,538	?	-	?	-	?	-	?	3,211,961,538	?	-	?	-
Beijing Asahi Electronic Materials Co., Ltd.	-	?	-	?	-	?	-	?	-	?	-	?	-
BOE Healthcare Investment & Management Co., Ltd.	6,093,167,584	?	1,189,500,000	?	512,827	?	-	?	7,283,180,411	?	-	?	-
Hefei BOE Display Technology Co., Ltd.	1,999,338,939	?	-	?	21,476,569	?	-	?	2,020,815,508	?	-	?	-
Beijing BOE Technology Development Co., Ltd.	1,018,591	?	-	?	705,496	?	-	?	1,724,087	?	-	?	-
BOE Wisdom IOT Technology Co., Ltd.	142,344,796	?	-	?	13,097,140	?	(142,000,000)	?	13,441,936	?	-	?	-
Hefei BOE Zhuoyin Technology Co., Ltd.	600,066,764	?	-	?	2,185,232	?	-	?	602,251,996	?	-	?	-
Beijing BOE Land Co., Ltd.	7,752,973	?	-	?	815,800	?	-	?	8,568,773	?	-	?	-
Beijing BOE Sales Co., Ltd.	30,513,199	?	-	?	500,872	?	-	?	31,014,071	?	-	?	-
BOE KOREA Co., Ltd	873,317	?	-	?	3,027,670	?	-	?	3,900,987	?	-	?	-
Kunming BOE Display Technology Co., Ltd.	1,290,918,433	?	220,820,000	?	3,206,556	?	-	?	1,514,944,989	?	-	?	-
Mianyang BOE Optoelectronics Technology Co., Ltd.	15,977,360,915	?	6,339,085,322	?	13,426,135	?	-	?	22,329,872,372	?	-	?	-
Beijing BOE Sensing Technology Co., Ltd.	50,348,624	?	159,000,000	?	12,595,578	?	-	?	221,944,202	?	-	?	-
Wuhan BOE Optoelectronics Technology Co., Ltd.	5,998,882,896	?	6,500,000,000	?	12,385,063	?	-	?	12,511,267,959	?	-	?	-
Chongqing BOE Display Technology Co., Ltd.	3,958,981,997	?	5,119,594,750	?	7,085,277	?	-	?	9,085,662,024	?	-	?	-
Fuzhou BOE Display Technology Co., Ltd.	21,748,591	?	-	?	705,497	?	-	?	22,454,088	?	-	?	-
Beijing Matsushita Colour Innovation Co., Ltd.	64,903	?	-	?	2,462,787	?	-	?	2,527,690	?	-	?	-
BOE Innovation Investment Co., Ltd.	440,000,000	?	2,524,000,000	?	-	?	-	?	2,964,000,000	?	-	?	-
Hefei BOE Xingyu Technology Co., Ltd.	219,197,471	?	114,429,600	?	2,104,359	?	-	?	335,731,430	?	-	?	-
BOE Education Technology Co., Ltd.	25,073,981	?	-	?	2,807,284	?	-	?	27,881,265	?	-	?	-
Dongfang Chengqi (Beijing) Business Technology Co., Ltd.	8,000,000	?	-	?	-	?	-	?	8,000,000	?	-	?	-
BOE Smart Technology Co., Ltd.	1,440,000,000	?	382,000,000	?	-	?	-	?	1,822,000,000	?	-	?	-
Nanjing BOE Display Technology Co., Ltd.	5,591,221,400	?	-	?	672,372	?	-	?	5,591,893,772	?	-	?	-
Chengdu CEC Panda Display Technology Co., Ltd.	3,020,000,000	?	4,530,000,000	?	673,783	?	-	?	7,550,673,783	?	-	?	-
BOE Mled Technology Co., Ltd.	-	?	600,000,000	?	366,251	?	-	?	600,366,251	?	?	?	-
Others*	2,187,517	?	-	?	82,034,744	?	-	?	84,222,261	?	-	?	-
?	?	?	?	?	?	?	?	?	?	?	?	?	?
Total	179,426,966,866	?	28,094,773,790	?	500,606,924	?	(244,501,290)	?	207,777,846,290	?	92,000,000	?	32,000,000

???

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

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

Page 179

(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.	263,858		-	-		1,749,280	-		-	-	2,013,138		-
Beijing Nittan Electronic Co., Ltd.	71,396,821		-	-		9,399,420	-		-	(3,200,000)	77,596,241		-
Erdos BOE Energy Investment Co., Ltd.	8,163,137		66,920,400	-		(700,727)	-		1,724,197	-	76,107,007		-
Beijing Infi-Hailin Venture Investment Co., Ltd.	1,166,524		-	-		(1,166,524)	-		-	-	-		-
Beijing Infi-Hailin Venture Investment (Limited Partnership)	-		-	-		38,376,800	-		-	(38,376,800)	-		-
TPV Display Technology (China) Co., Ltd.	24,828,264		-	-		3,631,573	-		-	-	28,459,837		-
Beijing Xindongneng Investment Fund (Limited Partnership)	2,058,142,325		-	(813,699,978)		805,886,583	38,588,937		-	-	2,088,917,867		-
Beijing Xindongneng Investment Management Co., Ltd.	7,921,626		-	-		2,718,868	-		-	(2,000,000)	8,640,494		-
Shenzhen Yunyinggu Technology Co., Ltd.	21,910,887		-	-		(3,878,846)	(188,015)		23,249,160	-	41,093,186		-
Beijing Xloong Technologies Co., Ltd.	19,766,940		-	-		551,530	-		773,082	-	21,091,552		-
Beijing Innovation Industry Investment Co., Ltd.	204,063,254		-	-		3,501,319	-		-	-	207,564,573		-
Beijing Electric Control Industry Investment Co., Ltd.	200,283,114		-	-		1,271,160	30,223,283		-	-	231,777,557		-
BOE Art Cloud technology Co., ltd（formerly known as Hunan BOE Art Cloud Science & Technology Co., Ltd）	182,183,592		860,000	-		4,687,852	-		27,798,537	-	215,529,981		-
Guoke BOE (Shanghai) Equity Investment Management Co., Ltd.	-		2,571,400	-		(1,387,888)	-		-	-	1,183,512		-
Chengdu BOE Motor Electronics Co., Ltd	-		200,000,000	-		-	-		-	-	200,000,000		-
	?		?	?		?	?		?	?	?		?
Total	2,800,090,342		270,351,800	(813,699,978)		864,640,400	68,624,205		53,544,976	(43,576,800)	3,199,974,945		-

???

Page 180

6 Intangible assets

?	Land use rights	?	Patent and proprietary technology	?	Computer software	?	Others	?	Total
?	?	?	?	?	?	?	?	?	?
Original book value	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	794,939,047	?	1,102,554,707	?	374,157,427	?	84,327,578	?	2,355,978,759
Additions during the year	?	?	?	?	?	?	?	?	?
- Purchases	-	?	-	?	7,233,761	?	-	?	7,233,761
- Transfers from construction in progress	-	?	-	?	64,683,648	?	-	?	64,683,648
- Written-down against interest discount	-?	?	(957,451)	?	-?	?	(251,116)	?	(1,208,567)
Disposals during the year	-	?	-	?	(5,109,010)	?	(700,000)	?	(5,809,010)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	794,939,047	?	1,101,597,256	?	440,965,826	?	83,376,462	?	2,420,878,591
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	80,233,914	?	696,189,217	?	198,599,703	?	886,098	?	975,908,932
Charge during the year	27,738,406	?	50,605,804	?	68,853,437	?	54,449,488	?	201,647,135
Disposals during the year	-	?	-	?	(286,011)	?	(198,333)	?	(484,344)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	107,972,320	?	746,795,021	?	267,167,129	?	55,137,253	?	1,177,071,723
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Original book value	?	?	?	?	?	?	?	?	?
Carrying amount at the end of the year	686,966,727	?	354,802,235	?	173,798,697	?	28,239,209	?	1,243,806,868
?	?	?	?	?	?	?	?	?	?
Carrying amount at the beginning of the year	714,705,133	?	406,365,490	?	175,557,724	?	83,441,480	?	1,380,069,827

???

Page 181

7 Deferred tax assets/deferred tax liabilities

?	2021			?	2020
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	66,183,860	?	9,927,579	?	185,358,501	?	27,803,775
Changes in fair value of investments in other equity instruments	139,523,200	?	20,928,480	?	121,789,193	?	18,268,379
Depreciation of fixed assets	156,677,700	?	23,501,655	?	145,995,720	?	21,899,358
Government grant	209,807,147	?	31,471,072	?	34,989,313	?	5,248,397
Others	59,527,066	?	8,929,060	?	2,710,340	?	406,551
?	?	?	?	?	?	?	?
Sub-total	631,718,973	?	94,757,846	?	490,843,067	?	73,626,460
?	?	?	?	?	?	?	?
Amount offset	?	?	(94,757,846)	?	-	?	(73,626,460)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	-	?	-	?	-
?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Revaluation due to business combinations involving entities not under common control	(2,050,000,000)	?	(307,500,000)	?	(2,975,000,000)	?	(446,250,000)
Others	(87,160,432)	?	(13,074,064)	?	(87,160,432)	?	(13,074,064)
?	?	?	?	?	?	?	?
Sub-total	(2,137,160,432)	?	(320,574,064)	?	(3,062,160,432)	?	(459,324,064)
?	?	?	?	?	?	?	?
Amount offset	?	?	94,757,846	?	?	?	73,626,460
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(225,816,218)	?	?	?	(385,697,604)

???

8 Advance payments received

???Item

Item	31 December 2021	?	31 December 2020
?	?	?	?
Advances from related parties	3,212,352	?	8,735,465
Advances from third parties	16,825,982	?	9,550,993
?	?	?	?
Total	20,038,334	?	18,286,458

???

Page 182

9 Employee benefits payable

(1) Employee benefits payable

?	Note	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	508,025,207	?	1,559,623,213	?	(1,434,788,182)	?	632,860,238
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	8,034,946	?	87,996,947	?	(88,163,846)	?	7,868,047
Termination benefits	?	-	?	3,169,947	?	(3,169,947)	?	-
?	?	?	?	?	?	?	?	?
Total	?	516,060,153	?	1,650,790,107	?	(1,526,121,975)	?	640,728,285

???

????

?	Note	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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

(2) Short-term employee benefits

???

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	439,436,511	?	1,343,203,955	?	(1,250,864,537)	?	531,775,929
Staff welfare	-	?	47,055,395	?	(47,055,395)	?	-
Social insurance		?		?		?
Medical insurance	14,821,943	?	47,844,895	?	(48,311,394)	?	14,355,444
Work-related injury insurance	1,075,426	?	2,391,672	?	(2,301,795)	?	1,165,303
Maternity insurance	1,237,219	?	43,829	?	(15,208)	?	1,265,840
Housing fund	5,838,542	?	57,975,653	?	(57,534,667)	?	6,279,528
Labour union fee, staff and workers’ education fee	45,615,566	?	61,107,814	?	(28,705,186)	?	78,018,194
?	?	?	?	?	?	?	?
Total	508,025,207	?	1,559,623,213	?	(1,434,788,182)	?	632,860,238

???

????

?	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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
?	?	?	?	?	?	?	?
Total	241,384,459	?	1,190,821,753	?	(924,181,005)	?	508,025,207

Page 183

(3) Post-employment benefits - defined contribution plans

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Basic pension insurance	8,016,479	?	76,624,857	?	(76,525,687)	?	8,115,649
Unemployment insurance	371,484	?	2,832,656	?	(2,882,072)	?	322,068
Annuity	(353,017)	?	8,539,434	?	(8,756,087)	?	(569,670)
?	?	?	?	?	?	?	?
Total	8,034,946	?	87,996,947	?	(88,163,846)	?	7,868,047

???

????

?	Balance at 1 January 2020	?	Accrued during the year	?	Decrease 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

10 Other payables

???

?	Note	31 December 2021	?	31 December 2020
?	?	?	?	?
Dividends payable	?	6,561,972	?	6,451,171
Others	(1)	2,874,322,796	?	6,535,467,510
?	?	?	?	?
Total	?	2,880,884,768	?	6,541,918,681

???

(1) Others

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

????

?	Note	2021	?	2020
?	?	?	?	?
Amounts due to/from subsidiaries	?	1,364,404,865	?	3,050,656,626
Equity acquisition fee	?	-	?	2,236,488,561
Repurchase obligation of restricted shares	V. 40	835,215,390	?	875,333,536
Purchase of projects, equipment and intangible assets	?	462,535,293	?	257,829,238
Others	?	212,167,248	?	115,159,549
?	?	?	?	?
Total	?	2,874,322,796	?	6,535,467,510

???

Page 184

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

?	2021					?	2020
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	2,536,057,636	?	?	?	?	?	5,042,463,687
USD	52,998,757	?	6.3757	?	337,904,175	?	228,735,332	?	6.5249	?	1,492,475,170
JPY	-	?	0.0554	?	-	?	8,364,763	?	0.0632	?	528,653
EUR	50,000	?	7.2197	?	360,985	?	-	?	?	?	-
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	2,874,322,796	?	?	?	?	?	6,535,467,510

???

11 Long-term loans

????

?	2021			?	2020
?	?	?	Credited/ collateralised	?	?	?	Credited/ collateralised
?	RMB	?	guaranteed/ pledged	?	RMB	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	43,079,530,231	?	Credited	?	46,207,924,194	?	Credited
Less: Long-term loans due within one year	10,871,030,231	?	Credited	?	7,847,210,073	?	Credited
?	?	?	?	?	?	?	?
Total	32,208,500,000	?	?	?	38,360,714,121	?	?

???

The interest rate of RMB long-term loans for the Company ranged from 0% to 3.77%in 2021 (2020: 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	3,612,222,226	?	-	?	(902,698,413)	?		?	2,709,523,813
- related to income	21,120,220	?	285,932,854	?	(8,025,180)	?	(101,600,000)	?	197,427,894
?	?	?	?	?	?	?	?	?	?
Total	3,633,342,446	?	285,932,854	?	(910,723,593)	?	(101,600,000)	?	2,906,951,707

???

13 Capital reserve

???Item

Item	Share premium	?	Other capital reserves	?	Total
?	?	?	?	?	?
Balance at the beginning of the year	37,546,517,053	?	(850,437,687)	?	36,696,079,366
Add:Common stock invested by shareholders	16,219,134,815	?	-	?	16,219,134,815
Other movements in equity of associates	-	?	53,544,976	?	53,544,976
Equity-settled share-based payments	-	?	640,692,637	?	640,692,637
Cancellation of treasury shares	(14,270,384)	?	-	?	(14,270,384)
Others	-	?	2,851,742	?	2,851,742
?	?	?	?	?	?
Balance at the end of the year	53,751,381,484	?	(153,348,332)	?	53,598,033,152

???

Page 185

14 Other comprehensive income

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	90,701,298	?	51,135,493	?	(2,660,101)	?	55,238,785	?	89,258,107
Including: Other comprehensive income recognised under equity method	194,222,110	?	68,869,497	?	-	?	55,238,785	?	207,852,822
Changes in fair value of investments in other equity instruments	(103,520,812)	?	(17,734,004)	?	(2,660,101)	?	-	?	(118,594,715)
Items that may be reclassified to profit or loss	11,835	?	(245,292)	?	-	?	-	?	(233,457)
?	?	?	?	?	?	?	?	?	?
Total	90,713,133	?	50,890,201	?	(2,660,101)	?	55,238,785	?	89,024,650

15 Retained earnings

Item

Item	2021	?	2020
?	?	?	?
Retained earnings at the beginning of the year	11,954,088,031	?	9,586,643,866
Add: Net profits for the year	4,396,496,566	?	3,739,191,584
Less: Appropriation for statutory surplus reserve	439,649,657	?	373,919,158
Interest on holders of other equity instruments	533,600,000	?	485,925,480
Dividends to ordinary shares	3,476,073,919	?	695,967,975
Transfer of other comprehensive income to retained earnings	(49,714,906)	?	(215,151,667)
Effect of accounting for disposal of subsidiaries to equity method	-	?	31,086,473
?	?	?	?
Retained earnings at the end of the year	11,950,975,927	?	11,954,088,031

???

16 Operating income

????

?	2021	?	2020
Item	Income	?	Income
?	?	?	?
Principal activities	5,664,683,841	?	3,850,224,763
Other operating activities	52,314,193	?	691,451,432
?	?	?	?
Total	5,716,998,034	?	4,541,676,195
?	?	?	?
Including：Revenue from contracts	5,594,507,267	?	4,418,761,325
Other income	122,490,767	?	122,914,870

???

Page 186

17 Taxes and surcharges

?	2021	?	2020
?	?	?	?
Property tax	27,275,020	?	29,195,630
Land use tax	2,834,360	?	2,834,360
Stamp duty	4,748,723	?	7,909,675
City maintenance and construction tax	875,253	?	405,990
Education surcharges and local education surcharges	625,180	?	289,993
Others	271,874	?	253,948
?	?	?	?
Total	36,630,410	?	40,889,596

???

18 Research and development expenses

????

?	2021	?	2020
?	?	?	?
Staff cost	896,654,452	?	686,052,717
Material expenses	76,712,945	?	70,093,725
Depreciation and amortisation	317,570,050	?	221,602,752
Commissioned and cooperative development	240,981,951	?	533,483,606
Technology usage fee	210,374,149	?	103,450,913
Share-based payment	82,093,408	?	3,062,249
Others	506,478,542	?	485,149,163
?	?	?	?
Total	2,330,865,497	?	2,102,895,125

???

19 Financial expenses

???

?	2021	?	2020
?	?	?	?
Interest expenses from loans	892,768,026	?	970,259,855
Interest income from bank deposits	(93,003,346)	?	(37,793,976)
Net exchange (income)/losses	(4,245,509)	?	(17,019,010)
Other financial expenses	3,217,093	?	1,091,676
?	?	?	?
Total	798,736,264	?	916,538,545

???

Page 187

20 Other income

?	2021	?	2020
?	?	?	?
Government grants related to assets	902,698,413	?	903,180,554
Government grants related to income	43,514,609	?	67,808,613
?	2,709,152	?	-
Total	?	?	?
Government grants related to assets	948,922,174	?	970,989,167

???

The amount of government grants received by the Company in 2021 and directlyincluded in other income was RMB 35,489,429.

21 Investment income

????

?	2021	?	2020
?	?	?	?
Income from long-term equity investments accounted for using cost method	1,841,946,602	?	1,608,291,389
Income from long-term equity investments accounted for using equity method	864,640,400	?	416,901,621
Investment income from disposal of long-term equity investments	45,527,110	?	401,239,648
Dividend income from investments in other equity instruments	3,554,579	?	3,252,444
Including: Dividend income from investments in other equity instruments held at the balance sheet date	3,554,579	?	3,252,444
?	?	?	?
Total	2,755,668,691	?	2,429,685,102

???

22 Income tax expenses

????

?	Note	2021	?	2020
?	?	?	?	?
Current tax expense for the period based on tax law and regulations	?	418,134,244	?	449,586,180
Changes in deferred tax assets/liabilities	(1)	(157,278,240)	?	(198,212,508)
?	?	?	?	?
Total	?	260,856,004	?	251,373,672

???

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

????

?	2021	?	2020
?	?	?	?
Origination and reversal of temporary differences	(157,278,240)	?	(198,212,508)

Page 188

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

Item	2021	?	2020
?	?	?	?
Profit before taxation	4,657,352,570	?	3,990,565,256
Expected income tax expense at tax rate of 15%	698,602,886	?	598,584,788
Add: Non-deductible expenses	22,551,281	?	47,469,071
Non-taxable income	(362,122,686)	?	(304,718,886)
Tax deduction for R&D activities	(107,936,270)	?	(89,961,301)
Others	9,760,793	?	-
?	?	?	?
Income tax expenses	260,856,004	?	251,373,672

???

23 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

????

?	2021	?	2020
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities：	?	?	?
?	?	?	?
Net profit	4,396,496,566	?	3,739,191,584
Add: Credit losses	5,247,340	?	5,376,889
Depreciation of fixed assets and investment properties	186,180,161	?	135,264,681
Amortisation of intangible assets	175,887,643	?	165,094,127
Amortisation of long-term deferred expenses	74,101,005	?	36,414,535
Loss on disposal of fixed assets, intangible assets and other long-term assets	773,327	?	-
Financial expenses	796,624,497	?	1,044,078,606
Investment income	(2,755,668,691)	?	(2,429,685,102)
Share-based payment	139,972,018	?	3,747,294
Changes in deferred revenue tax assets and liabilities	(159,881,386)	?	(196,164,236)
Increase in gross inventories	2,769,045	?	(4,686,882)
Increase in operating receivables	(83,241,004)	?	(1,521,836,219)
Decrease in operating payables	(2,075,160,969)	?	(861,349,064)
?	?	?	?
Net cash inflow from operating activities	704,099,552	?	115,446,213

???

Page 189

(b) Net changes in cash and cash equivalents:：	?	?	?
?	2021	?	2020
?	?	?	?
Cash and cash equivalents at the end of the year	5,599,937,349	?	4,360,065,216
Less: Cash and cash equivalents at the beginning of the year	4,360,065,216	?	3,680,770,048
?	?	?	?
Net increase/(decrease) in cash and cash equivalents	1,239,872,133	?	679,295,168

???

(2) Details of cash and cash equivalents

????

?	2021	?	2020
?	?	?	?
Cash on hand	12,554	?	22,596
Bank deposits available on demand	5,527,470,074	?	4,360,042,620
Funds in other currencies readily available for payment	72,454,721	?	-
?	?	?	?
Closing balance of cash and cash equivalents	5,599,937,349	?	4,360,065,216

???

Note: Cash and cash equivalents disclosed above exclude other monetary fund withrestricted usage.

24 Assets with restrictive ownership title

???Item

Item	Balance at 1 January 2021	?	Accrued during the year	?	Decreased during the year	?	Balance at 31 December 2021	Restricted reason
?	?	?	?	?	?	?	?	?
Cash at bank and on hand	-		992,904	?	-	?	992,904	Margin deposit?

Page 190

25 Leases

(1) The company’s lease as a lessee

Right-of-use asset

	Houses and buildings
?	?
Book value	?
Balance at the beginning of the year	11,291,665
Additions during the year	207,543,094
Decrease during the year	-
?	?
Balance at the end of the year	218,834,759
?	?
Accumulated amortisation	?
Balance at the beginning of the year	4,864,383
Charge during the year	43,796,583
Decrease during the year	-
?	?
Balance at the end of the year	48,660,966
?	?
Impairment provision	?
Balance at the beginning of the year Balance at the end of the year	-
?
?	?
Carrying amounts	?
Balance at the end of the year	170,173,793
?	?
Balance at the beginning of the year	6,427,282

Page 191

Lease liability

Item	Balance at the end of the year	?	Balance at the beginning of the year
?	?	?	?
Long-term lease liabilities	167,639,832	?	-
Less:lease liabilities due within one year	38,295,964	?	-
?	?	?	?
Total	129,343,868	?	-
?

In 2021, the Company, as the lessee, chooses the simplified treatment method forshort-term lease expenses, low-value asset lease expenses and the amount ofincome obtained from sublease of right-of-use assets is not significant.

XVII. Extraordinary gains and losses in 2021

?	?	2021	?	2020
?	?	?	?	?
Investment income from disposal of long-term equity investments	?	37,327,797	?	376,344,290
Losses from disposal of non-current assets	?	136,846,803	?	(2,912,119)
Government grants recognised through profit or loss (excluding those having close relationships with the Company’s normal operation and enjoyed in fixed amount or quantity according to uniform national standard)	?	2,077,537,306	?	2,332,107,692
Changes in fair value of financial assets held for trading and investment income from disposal of financial assets held for trading	?	121,656,142	?	82,698,484
Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis	?	20,304,301	?	15,447,820
Other non-operating income and expenses besides items above	?	90,587,512	?	65,391,368
Less: Tax effect	?	191,362,477	?	185,966,533
	?	?	?	?
?	?	2,292,897,384	?	2,683,111,002
?	?	?	?	?
Including: Extraordinary gains affecting net profit of equity shareholders of the Company	?	1,893,395,748	?	2,365,173,118
Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders	?	399,501,636	?	317,937,884

Notes:Extraordinary gain and loss item listed above are presented in the amountbefore taxation.

Page 192

XVIII. Return on net assets and earnings per share

In accordance with “Regulation on the Preparation of Information Disclosures byCompanies Issuing Securities No.9 – Calculation and Disclosure of the Return onNet Assets and Earnings Per Share” (2010 revised) issued by the CSRC andrelevant accounting standards, the Group’s return on net assets and earnings pershare 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	23.84%	?	0.71	?	0.71
Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	22.05%	?	0.65	?	0.65

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 asdividing consolidated net profit excluding extraordinary gain and loss attributable toordinary shareholders of the Company by the weighted average number of ordinaryshares outstanding:

???

Page 193

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 netprofit attributable to ordinary shareholders of the Company by the weighted averageamount of consolidated net assets:

?	2021	?	2020
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	25,266,101,464	?	4,549,702,472
Weighted average amount of consolidated net assets	106,001,028,458	?	88,422,792,378
Weighted average return on net assets	23.84%	?	5.15%

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

?	2021	?	2020
?	?	?	?
Consolidated net assets at the beginning of the year	89,129,769,408	?	87,044,972,202
Effect of consolidated net profit attributable to ordinary shareholders of the Company	12,633,050,732	?	2,274,851,236
Effect of non-public issuance of shares	6,623,170,611	?	-
Effect of repurchase of treasury shares	(594,867,425)	?	(666,258,231)
Distribution of profits to ordinary shareholders	(1,738,036,960)	?	(347,983,988)
Effect of change in shareholding ratio of subsidiaries	(464,228,319)	?	24,957,407
Effect of movements in amounts attributable to ordinary shareholders of the Company	412,170,410	?	92,253,752
?	?	?	?
Weighted average amount of consolidated net assets	106,001,028,458	?	88,422,792,378

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

Weighted average return on net assets excluding extraordinary gain and loss iscalculated as dividing consolidated net profit excluding extraordinary gain and lossattributable to ordinary shareholders of the Company by the weighted averageamount of consolidated net assets:

?	2021	?	2020
?	?	?	?
Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	23,372,705,716	?	2,184,529,354
Weighted average amount of consolidated net assets	106,001,028,458	?	88,422,792,378
Weighted average return on net assets excluding extraordinary gain and loss	22.05%	?	2.47%

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