ANNUAL REPORT 2021
March 2022
Driving High-Quality Development with Innovation as the
EngineChen Yanshun, Chairman of BOE
Time flies, and a new year has once again begun. On behalf of all staff at BOE, I would liketo express our most sincere gratitude and heartfelt respect to all our shareholders who havebeen following, accompanying and supporting us along this journey.For BOE, the year 2021 witnessed both progress and accomplishments. In the face of theever-changing international political and economic situation and unpredictable industrialenvironment, after striving with resolute fortitude, BOE successfully achieved the bestbusiness performance since the Company’s incorporation. As a result, our annual revenueexceeded RMB200 billion for the first time, reaching RMB219.31 billion, an increase of
61.79% year-on-year, with net profit attributable to the Company as the parent reachingRMB25.831 billion, an increase of 412.96% year-on-year. In terms of mainstreamsemiconductor Display Devices business, our market share in the five major application areasof mobile phones, tablet devices, laptop PCs, monitors and televisions continued to rank firstin the world. In addition, in December we achieved the milestone of successfully shipping 10million flexible AMOLED products in a single month. Meanwhile, our IoT Innovationbusiness also continued to make breakthroughs, with annual revenue exceeding RMB28.379billion, a significant year-on-year increase, with outstanding development achievements ininnovative devices, smart terminals, system solutions, Intelligent Car Networking, SmartRetail, Industrial IoT and other areas. Finally, in 2021, BOE was awarded the Fourth ChinaQuality Award and ranked among the top 500 global brands of Brand Finance for the firsttime, further enhancing its brand reputation and influence.Since its incorporation, BOE has adhered to the business philosophy of innovation-drivenhigh-quality development, and continued to stimulate organizational vitality throughinnovation, so as to build and deepen its global competitive advantage. These achievementscould not have been made without our unwavering “three insistences” in innovation.Insisting on technology and product innovation to serve the public with technology. Over
the years, through respecting technology, BOE has continued to maintain high investment inR&D. In 2021, the Company’s R&D expenses exceeded RMB10 billion for the first time, anincrease of 31.72% year-on-year. BOE has also insisted on the global patent layout strategy of“quality-orientation while developing quantity and quality simultaneously.” We have rankedamong the top 10 in international patent applications for six consecutive years, and among thetop 20 global organizations granted US patents for four consecutive years, at number 11 in2021. Last year, we officially launched the first technology brand in China’s semiconductordisplay industry, which not only marks a material milestone in the development of China’ssemiconductor display industry, but also ushers in a new era of “technology + branding.” Thisis expected to lead the industry, customers and consumers into a new “visual world” that isbrilliant, as well as perceptible and tangible.Insisting on management innovation to optimize business operations by digital means.Digital technology is rapidly accelerating, and has become a key technological force indriving economic and social development. Based on the strategic need to support the rapiddevelopment of the enterprise by digital means, BOE has integrated internal resources andcreated a special professional organization to promote the Company’s digital transformationand ensure the effective implementation of the digital transformation work, while alsocontinuously investing resources in digitalization at the Company level. Aiming at theconstruction of “a digital, visual BOE,” we vigorously improve our digital management leveland spare no effort to promote our efficient digital operation by building an end-to-endprocedure system, optimizing operation mechanism, strengthening IT system support, andrevitalizing data assets.Insisting on model innovation to create an industry model of value creation. Throughoutits development, BOE has been actively exploring the innovation and optimization ofbusiness model and corporate structure, and is committed to maximizing operationalefficiency with the most effective development model for our feedback shareholders andsociety as a whole. In 2021, for the Internet of Things (IoT) era, we proposed a developmentstrategy of the “Screen-Connected IoT”. This signifies our commitment to maximize our corecompetencies accumulated in the semiconductor display field over the years, seize theindustrial opportunity of the ubiquitous presence of screens in the digital era, and continue toenhance our value creation capability by integrating additional functions into screens, placing
the screen in more scenarios, and deriving more shipping forms of screens while continuouslyempowering thousands of scenarios. Based on the “Screen-Connected IoT” strategy, we havealso innovated the “1+4+N” development structure, the significance of which is as follows: “1”stand for the mother ship platform with the capabilities and resources of Display Devicesbusiness as the core, which is the source and origin of BOE’s transformation and development;“4” indicates the four cruiser layers of IoT innovation, namely Sensor and Solution business,the MLED business and the Smart Medical Engineering business, which are also the fourmain fronts of our IoT transformation; and “N” is the landing ship layer based on the “1+4”core technology products, namely the subdivided application scenarios of IoT that we arecontinuously exploring and cultivating, along with the specific focus of BOE’s IoTtransformation development. Based on the “1+4+N” development structure, we will continueto promote the implementation of the “Screen-Connected IoT” development strategy, enhanceour value creation capabilities, and continuously achieve high-quality development at ourcompany.BOE’s vision is to be the most respected company on earth, including becoming “the worldleader in semiconductor display industry” and “a global leading player in related smartsystems products and services”. We know full well that realizing this great vision requires aprocess and generations of BOE employees to continue forging ahead and accumulatingexperience. After two decades of professional cultivation, we have developed into a leader inthe semiconductor display industry. In the future, we will actively play a leading role in theindustry chain, continue to practice leading responsibilities, and spare no effort to promote thetransformation of the display industry from cyclical to growth-oriented, thereby leading thehealthy development of the industry. We have made proper arrangements in Mini/Micro LED,Micro OLED, quantum dot and light field display technologies, and will continue toguarantee resources investment to create a 30-year leading technology system, while engagingin the construction of “industrial ecological toughness,” so to ensure that the industry chainremains safe and controllable. We will also comprehensively compound BOE’s systemiccompetitive advantages in the global semiconductor display field, consolidate our industryposition, and continuously enhance our influence in the industry.In the current development of the IoT industry, the fourth wave of the industrial revolution issweeping across the globe with real economy+IoT becoming a significant trend, providing us
with broad market space. Whiling leading the semiconductor display industry into a new era,BOE has determined IoT transformation as its strategic direction, and will firmly implement it.Focusing on digital and intelligent transformation, we will continue to drive integration acrossthe business ecosystem, build an intelligent manufacturing network across the entire businesschain, and drive innovation in new paths such as intelligent systems, intelligent medicalengineering, and Industrial Internet. By accelerating the integration of software and hardwareand system integration capabilities, continuously optimizing business models and establishinga well-suited operation system, we are well positioned to build a series of benchmark projectsto set a model for the industry. With the development strategy of “Screen of Things”, we willbeef up the in-depth integration of “display technology+IoT application”, i.e., to create morescenarios for display, build more screen functions, create more business forms, and empowermore and more businesses and industries. We will strengthen our capability in eachspecialized segment scenario, significantly increase the performance contribution of the IoTInnovation business to the Company, and resolutely work toward our goal of becoming aglobal leading player in related smart systems products and services, with an aim to drivehigh-quality development of BOE and even the digital economy. I firmly believe that BOE’sfuture will indeed be even more glorious!At the same time, we could not have made such achievements without the long-term trust andsupport of our shareholders. To share the fruits of development with our investors, BOEattaches great importance to the return of investors, in terms of both dividends and repos, andcontinuously provides cash dividends. Over the past three years, we have adhered to taking noless than 30% of the net profit attributable to the Company as the parent for shareholderdividends. For 2021, our Board of Directors proposed a dividend of RMB2.1 for every 10shares, with total dividends expected to be RMB7,963 million, accounting for 30.83% of netprofit attributable to the Company as the parent. At the same time, we completed RMB2,428million of share repos, with the total shareholder returns expected to account for 40.22% ofnet profit attributable to the Company as the parent.Looking ahead to 2022, as this era of change will continue accelerating and the globaleconomic recovery faces uncertainty, both enterprises and individuals will find themselves inan increasingly complex and unpredictable world. Only with stamina and diligence can onemake progress. In the face of challenges and opportunities, we at BOE will continue to insist
on our innovation-driven concept, promote our “Screen-Connected IoT” strategy to achieveimmense results and benefits, and promote the Company to achieve long-term stable andhigh-quality development. In other words, we will keep our heads in the clouds, but our feeton the ground.We look forward to the continuous collaboration and unwavering support of investors as wecontinue down our road of development. Together, let’s make progress and create a brightfuture for everyone.
BOE Technology Group Co., Ltd. Annual Report 2021
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as thedirectors, supervisors and senior management of BOE Technology Group Co., Ltd.(hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy andcompleteness of the contents of this Report and its summary, and shall be jointly andseverally liable for any misrepresentations, misleading statements or material omissionstherein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President, Ms.Sun Yun, Chief Financial Officer, and Ms. Yang Xiaoping, head of the financialdepartment (equivalent to financial manager) hereby guarantee that the FinancialStatements carried in this Report are factual, accurate and complete.All the directors of the Company except for the following attended in person the Boardmeeting for the review of this Report and its summary.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Song Jie | Director | Due to work | Sun Yun |
Any plans for the future and other forward-looking statements mentioned in this Reportshall NOT be considered as absolute promises of the Company to investors. Investors,among others, shall be sufficiently aware of the risk and shall differentiate between plansand forecasts and promises.The Board has approved a final dividend plan for the Reporting Period. Based on37,917,560,430 shares (the total share capital minus the shares in the share repurchaseaccount), a cash dividend of RMB2.10 (tax inclusive) per 10 shares is to be distributed toall the shareholders, with no bonus issue from either profit or capital reserves.This Report has been prepared as per the Chinese Accounting Standards for BusinessEnterprises and other relevant regulations. KPMG Huazhen LLP has issued anindependent auditor’s report with unmodified unqualified opinion for the Company.This Report and its summary have been prepared in both Chinese and English. Shouldthere be any discrepancies or misunderstandings between the two versions, the Chineseversions shall prevail.
BOE Technology Group Co., Ltd. Annual Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 7
Part II Corporate Information and Key Financial Information ...... 12
Part III Management Discussion and Analysis ...... 18
Part IV Corporate Governance ...... 50
Part V Environmental and Social Responsibility ...... 89
Part VI Significant Events ...... 95
Part VII Share Changes and Shareholder Information ...... 114
Part VIII Preferred Shares ...... 129
Part IX Bonds ...... 130
Part X Financial Statements ...... 136
BOE Technology Group Co., Ltd. Annual Report 2021
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head ofthe financial department (equivalent to financial manager);(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified publicaccountants;(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod; and(IV) This Report disclosed in other securities markets.All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 30 March 2022
BOE Technology Group Co., Ltd. Annual Report 2021
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| SZSE, the Stock Exchange | The Shenzhen Stock Exchange |
| The Stock Listing Rules | The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2020) |
| The Compliance in Operation of Main Board Listed Companies | Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation of Listed Companies—Compliance in Operation of Main Board Listed Companies |
| The Articles of Association | The Articles of Association of BOE Technology Group Co., Ltd. |
| The Company Law | The Company Law of the People’s Republic of China |
| The Securities Law | The Securities Law of the People’s Republic of China |
| KPMG | KPMG Huazhen LLP |
| OLED | Organic Light Emitting Diode |
| LED | Light-emitting Diode |
| MLED | Mini/Micro LED |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| Oxide | A compound of oxygen and another chemical element |
| Microdisplay | Microdisplay technology |
| IoT | Internet of Things |
| X-ray | A type of radiation that can pass through objects that are not transparent and make it possible to see inside them |
| Mini/Micro LED | Submillimeter/Micro Light Emitting Diode |
| IEC | International Electrotechnical Commission |
| EPQ | A drive technology |
| HSR | A frequency multiplication technology |
| α-Si | Amorphous Silicon |
| 1G1D | A display screen design form |
BOE Technology Group Co., Ltd. Annual Report 2021
| BD Cell | BOE Dual Cell |
| BP | Back Plate |
| FHD | Full High Definition at 1920*1080 |
| EPD | Electrophoretic Display |
| P0.9 | Point 0.9mm |
| COG | Chip (Mini LED) On Glass |
| SMD | Surface Mount Technology |
| COB | Chip (Mini LED) On Board (PCB) |
| BT2020 | HD digital video color standards issued by ITU in 2012 |
| DCI-P3 | Digital Cinema Initiatives - Protocol 3, wide color gamut standards released by the American film industry, which are widely used color standards for digital movies |
| Adobe RGB | Color gamut standards issued by Adobe, and RGB stands for red, green and blue |
| BLU | Backlight Unit |
| dB | Decibel |
| AM | Active Matrix |
| MNT | Monitor, generally referring to the 27~34 inch model |
| MNT Gaming | Monitor Gaming |
| ARM | Advanced RISC Machines, a 32 bits RISC processor structure, widely used in embedded system design |
| sRGB | standard Red Green Blue, one of the earliest color gamut standards |
| NTSC | Color gamut standards issued by the National Television Standards Committee of America, usually used to test the color range that a TV screen is able to cover |
| AIoT | Artificial Intelligence & Internet of Things |
| Pitch | Distance between two points |
| mm | Millimeter |
| nit | Unit for brightness |
BOE Technology Group Co., Ltd. Annual Report 2021
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Changed stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Chen Yanshun | ||
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China | ||
| Zip code | 100015 | ||
| Past changes of registered address | N/A | ||
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | ||
| Zip code | 100176 | ||
| Company website | www.boe.com | ||
| Email address | web.master@boe.com.cn | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | - |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | - |
| Tel. | 010-64318888 ext. | - |
| Fax | 010-64366264 | - |
| E-mail address | liuhongfeng@boe.com.cn | - |
III Media for Information Disclosure and Place where this Report Is Lodged
| Stock exchange website where this Report is disclosed | http://www.szse.cn |
BOE Technology Group Co., Ltd. Annual Report 2021
| Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK), http://www.cninfo.com.cn/ |
| Place where this Report is lodged | Board Secretary’s Office |
IV Changes to Company Registered Information
| Unified social credit code | No change |
| Change to principal activity of the Company since going public (if any) | No change |
| Every change of controlling shareholder since incorporation (if any) | No change |
V Other Information
The independent audit firm hired by the Company:
| Name | KPMG Huazhen LLP |
| Office address | 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing |
| Accountants writing signatures | Zhang Huan and Chai Jing |
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
√ Applicable □ Not applicable
| Name | Office address | Representatives | Supervision period |
| China Securities Co., Ltd. | Room 2203, North Tower, Shanghai Securities Plaza, 528 Pudong South Road, Pudong New Area, Shanghai | Han Yong and Liao Ling | 20 August 2021-31 December 2022 |
| Hua Ying Securities Company Limited | Rooms 01-06, Wuxi Finance Center, 10 Jinrong First Road, Wuxi Economic Development Zone | Wang Qian and Wu Yi | 20 August 2021-31 December 2022 |
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Change of accounting policy.
| Item | 2021 | 2020 | 2021-over-2020 change (%) | 2019 | ||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 219,309,799,505.00 | 135,552,569,729.00 | 135,552,569,729.00 | 61.79% | 116,059,590,164.00 | 116,059,590,164.00 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Net profit attributable to the listed company’s shareholders (RMB) | 25,830,935,500.00 | 5,035,627,952.00 | 5,035,627,952.00 | 412.96% | 1,918,643,871.00 | 1,918,643,871.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 23,937,539,752.00 | 2,670,454,834.00 | 2,670,454,834.00 | 796.38% | -1,166,793,317.00 | -1,166,793,317.00 |
| Net cash generated from/used in operating activities (RMB) | 62,270,556,324.00 | 39,251,773,458.00 | 39,251,773,458.00 | 58.64% | 26,083,079,194.00 | 26,083,079,194.00 |
| Basic earnings per share (RMB/share) | 0.71 | 0.13 | 0.13 | 446.15% | 0.05 | 0.05 |
| Diluted earnings per share (RMB/share) | 0.71 | 0.13 | 0.13 | 446.15% | 0.05 | 0.05 |
| Weighted average return on equity (%) | 23.84% | 5.15% | 5.15% | 18.69% | 2.16% | 2.16% |
| Item | 31 December 2021 | 31 December 2020 | Change of 31 December 2021 over 31 December 2020 (%) | 31 December 2019 | ||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 449,726,980,355.00 | 424,256,806,331.00 | 424,256,806,331.00 | 6.00% | 340,412,203,308.00 | 340,412,203,308.00 |
| Equity attributable to the listed company’s shareholders (RMB) | 142,925,547,899.00 | 103,276,766,835.00 | 103,276,766,835.00 | 38.39% | 95,058,129,055.00 | 95,058,129,055.00 |
Reason for accounting policy change and correction of accounting error:
In accordance with the Q&A on the implementation of fixed asset repair charge issued by the Ministry of Finance, the Grouprecorded routine repair charges of fixed assets that do not meet the subsequent expense conditions after the capitalization of fixedassets in current profit or loss or the cost of underlying assets as incurred in accordance with the objects to be benefited, and treatedsuch repair charges related to the production and processing of inventories in accordance with the principles for determining the costof inventories. The Group has changed the relevant accounting policy using the retrospective adjustment method. The above changein accounting policy has no impact on the various items of major accounting data and financial indicators for 2020.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there wasuncertainty about the Company’s ability to continue as a going concern.
BOE Technology Group Co., Ltd. Annual Report 2021
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 49,655,379,519.00 | 57,629,947,507.00 | 55,993,022,701.00 | 56,031,449,778.00 |
| Net profit attributable to the listed company’s shareholders | 5,182,037,171.00 | 7,579,987,797.00 | 7,253,390,635.00 | 5,815,519,897.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 4,484,934,082.00 | 7,176,682,690.00 | 6,937,108,280.00 | 5,338,814,700.00 |
| Net cash generated from/used in operating activities | 14,522,832,708.00 | 18,222,355,631.00 | 12,006,193,144.00 | 17,519,174,841.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | 2021 | 2020 | 2019 | Note |
BOE Technology Group Co., Ltd. Annual Report 2021
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 174,174,600.00 | 373,432,171.00 | 20,340,136.00 | N/A |
| Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents | 0.00 | 0.00 | 0.00 | N/A |
| Government subsidies charged to current profit or loss (exclusive of government subsidies consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) | 2,077,537,306.00 | 2,332,107,692.00 | 2,640,634,861.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 0.00 | 0.00 | 0.00 | N/A |
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on assets entrusted to other entities for investment or management | 0.00 | 0.00 | 0.00 | N/A |
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | 0.00 | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair prices | 0.00 | 0.00 | 0.00 | N/A |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary | 121,656,142.00 | 82,698,484.00 | 112,668,244.00 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| course of business) | ||||
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 20,304,301.00 | 15,447,820.00 | 1,498,805.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in investment property of which subsequent measurement is carried out using the fair value method | 0.00 | 0.00 | 0.00 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current profit or loss | 0.00 | 0.00 | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | 0.00 | 0.00 | N/A |
| Non-operating income and expense other than the above | 90,587,512.00 | 65,391,368.00 | 96,799,305.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | 0.00 | 795,126,980.00 | N/A |
| Less: Income tax effects | 191,362,477.00 | 185,966,533.00 | 285,904,312.00 | N/A |
| Non-controlling interests effects (net of tax) | 399,501,636.00 | 317,937,884.00 | 295,726,831.00 | N/A |
| Total | 1,893,395,748.00 | 2,365,173,118.00 | 3,085,437,188.00 | -- |
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2021
Part III Management Discussion and AnalysisI Industry Overview for the Reporting PeriodIn 2021, the prosperity of the semiconductor display industry remained at a high level. In the first half of the year, as telecommuting,telemedicine, online education, online entertainment and other home economy stimulated the continued growth of the demand fordisplay products, and with the lack of cores and materials, capacity shortages and other factors, the prosperity of the semiconductordisplay industry continued to improve. Since the beginning of the third quarter, with a slowdown in the demand for display productsstimulated by the global home economy, as well as the shipping congestion, rising raw material prices and logistics costs, thedownstream willingness to stock up was affected, TV products saw a structural adjustment, while the market quotation of was relativelystable by virtue of the demand from high-end business and supply concentration. In terms of industrial development, semiconductordisplay technology continued to show diversified development trends, OLED and small spacing LED were poised to become the newgrowth pole of the industry, with OLED in smart phones, smart watches and other small-size areas to further penetrate, and smallspacing LED accelerating the commercialization process under the help of brand enterprises.The "14th Five-Year Plan" included "accelerating digital development and building a digital China" as a separate chapter, making itclear that China has entered an era of digital economy represented by massive data, advanced computing power and algorithms. IoT isone of the important infrastructures in the digital economy era. 5G, artificial intelligence, edge computing, big data and othertechnology applications are accelerating iterative development, speeding up the construction of the ecology of the Internet ofEverything (IoE) and promoting the rapid development of demand-side scenarios. Currently, the development of demand-sidescenarios is dominated by exploratory implementation in the consumer services market, such as smart screens, smart whole products,smart homes and other smart terminal products, which have achieved first-mover advantages supported by mature technology andgrowing demand for intelligence, with product shipments and market scale continuing to expand. As the technology gradually maturesand the potential for integration applications is released, there will be a large number of IoT technologies integrated into industrial,agricultural, transportation, education, medical and other scenarios, advancing the rapid development of the industrial IoT, IntelligentCar Networking, smart finance, smart industrial parks, smart energy, smart healthcare and other IoT application industries.At the same time, the 14th Five-Year Plan also clarified that it is necessary to comprehensively promote the construction of a healthyChina and provide people with health services on all fronts, further promoting the Internet medical platform as a trend; theapplication of cloud computing, IoT and big data technology has accelerated the implementation of health management applicationscenarios, which, together with the pandemic, has facilitated the closed-loop management of online and offline services and theintegration of "drug + medicine + insurance + healthcare". As aging continues to intensify, active response to aging has become anational strategy, ushering in a golden period of development for the massive health industry.
II Principal Activity of the Company in the Reporting PeriodBOE Technology Group Co., Ltd. is an loT company providing intelligent interface products and professional services forinformation interaction and human health. After years of professional cultivation, the Company has developed into a global leader inthe field of semiconductor display and a global innovative enterprise in the field of the Internet of Things. Based on a deepunderstanding of the intrinsic laws of the market and practical exploration, and in order to further enhance the Company’s valuecreation capability, BOE has proposed the development strategy of " Screen-Connected IoT " based on its core genes and capabilities,seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage of "screen" to integrate screens intomore market segments and application scenarios by integrating more functions, inserting more scenarios, and deriving more forms.By doing so, BOE will realize the user perception revolution of "screen as terminal" in the digital era, build an industrial ecology of
BOE Technology Group Co., Ltd. Annual Report 2021
"screen as platform and screen as system", and reshape the value growth model. At the same time, based on the strategic design of "Screen-Connected IoT ", BOE will bring a new connotation to the "1+4+N" development structure under the new developmentpattern."1" is the mother ship platform with the capabilities and resources of Display Devices business as the core, which is the core capacityand quality resources accumulated by BOE, as well as the source and origin of the Company's transformation and development."4" is the cruiser layers, which is a high-potential channel and direction of development selected based on BOE's core competence andvalue chain extension, as well as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, theSensor and Solution business, the MLED business and the Smart Medical Engineering business."N" is the landing ship layer based on the "1+4" core technology products, which are the subdivided application scenarios of IoT thatare continuously explored and cultivated by BOE, as well as the specific focus of the Company's IoT transformation development.The Company's core business includes:
1. Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providinginterface devices applying TFT-LCD, AMOLED, Oxide, Microdisplay and other technologies, focusing on providing customers withhigh-quality display devices such as smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL),tiled display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare, mobile payment,and interactive whiteboards.
2. IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers withcompetitive TVs, monitors, laptops, tablets, low-power, IoT, 3D display and other smart terminal products. Backed by AI and bigdata, it focuses on products and services combining hardware and software, and provides smart finance, smart parks, smartgovernment, smart transportation, urban light space, smart energy The company also provides total solutions in the field of IoTsegments such as smart finance, smart industrial parks, smart government affairs, smart transportation, city light space, smart energyand other IoT solutions, as well as overall solutions for areas such as whole and large-size products.
3. Sensor and Solution business
The Sensor and Solution business offers integrated design and manufacturing services for system solutions, focuses on medicalbiological detection, transportation and construction, consumer electronics, microwave communications, industrial sensing and otherfields, and provides customers with integrated design and manufacturing of sensor devices and system solution services, with specificproducts and solutions including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identificationsystems and industrial sensors.
4. MLED business
MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of mobile phones,tablet PCs, laptops, monitors, TVs, vehicles, wearable devices, etc., as well as Mini/Micro-LED display products with highbrightness, high reliability and high contrast for segment markets of outdoor, commercial, transparent, specialized and other displays.All these products are designed and manufactured in an integrated manner.
5. Smart Medical Engineering business
The Smart Medical Engineering business adopts the professional service model to combine technologies with medicine and integratemedicine and engineering with innovation, so as to provide families, communities and hospitals with the four major human-centeredservices of health management, health technology, digital hospital, and technology services. It connects testing equipment, healthcareworkers and customers through the health IoT platform to build a smart health management ecosystem where customers enjoy healthservices including prevention, treatment, therapy and nursing.
BOE Technology Group Co., Ltd. Annual Report 2021
III Core Competitiveness Analysis
1. Excellent management team
Since the Company implemented the strategy of "conducting overseas acquisitions and taking root in domestic markets" and enteredthe semiconductor display industry at a high starting point, it has developed into a leading enterprise in the global semiconductordisplay industry after more than 20 years of concentrated efforts. The Company's management team has solid professionalknowledge, rich industry experience, leading management level and keen strategic vision. Thanks to their efforts, the Companycontinued to grow stronger in the semiconductor display field, and grasped future development opportunities to firmly promote theCompany's IoT transformation, and rendered a lot of achievements. In the context of the complex global political and economicsituation, repeated outbreaks and the shortage of upstream resources and materials, the Company's management overcame manydifficulties and led the team to turn the downturn into growth opportunities and actively seize the market, achieving the best businessperformance in the Company's history throughout the year.
2. Perfect technology R&D system and technology leading strength
Through the short-, medium- and long-term technology R&D mechanism, the Company productizes technology rapidly and activelylay out forward-looking technology directions while realizing the incubation of technology value to ensure that the Company'stechnological strength continues to lead. In terms of patents, the number of new patent applications exceeded 9,000, including morethan 90% for inventions and 33% for overseas patents. More than 6,000 new patents were granted, of which over 2,000 were foroverseas patents, and the Company was ranked among the Top 20 Organizations Granted US Patent in the world for four consecutiveyears (ranked 11th in 2021). In terms of technical standards, the Company led the formulation and revision of 42 external technicalstandards throughout the year. BOE led the application for the IEC international standard, Basic Rating and Characteristics ofFlexible Display Devices, and two national standards, General Requirements for IoT Electronic Tag System and Electronic DyeLiquid Crystal Dimming Glass, which were approved, achieving a breakthrough in the international standard of product specificationin the field of flexible display of China. In terms of products and technology applications, BOE has created the world's first α-Si1G1D 8K 288Hz technology equipped with EPQ screen technology and HSR frequency doubling technology, with its BD Celltechnology breaking through a million contrast ratios in broadcast-grade monitor applications and achieving world premieres in thevehicle and medical areas. BOE's 65-inch Black Shine whole product is equipped with the first technology applications such asintelligent computing and intelligent drawing, reducing the writing latency to less than 50 milliseconds, winning the C-IDEA DesignAward and the "Technology Innovation Award" of the China Video Industry Association. It also launched the industry's first processof glass plating of thick copper for the Mini LED BP segment, achieving a rapid increase in the yield of BP substrates. In addition, itsoverall solution for the first self-developed next-generation high-throughput gene sequencing (NGS) achieved the leading recoveryrate and conversion rate of reagents in the industry.In December 2021, BOE officially launched the first technology brand in China's semiconductor display field - high-end liquid crystaldisplay technology "ADS PRO", high-end flexible display technology "f-OLED " and high-end glass-based LED display technology"α-MLED", ushering in a new era of "technology + brand" dual-value drive.
3. Leading lean management level and operational efficiency
BOE continuously optimized its operation mechanism, promoted the centralization and scale of products, continued to strengthenplatform linkages and connections and leveraged its advantages of intensification, continuously enhancing the efficiency ofproduction lines. BOE's 5th generation of TFT-LCD production line in Beijing achieved new results in transformation and a newbreakthrough in the proportion of innovative application products; the 5.5th generation of TFT-LCD production line in Ordosachieved full production and full sales with a significant increase in performance; the 8.5th generation of TFT-LCD production linein Fuzhou achieved a record high in terms of the production capacity; the 10.5th generation of TFT-LCD production line in Hefeiachieved an industry high yield for FHD products; the operating quality of the 6th generation of AMOLED production line inChengdu and Mianyang saw a steady improvement, and the 6th generation of AMOLED production line in Chongqing hassuccessfully achieved mass production and delivery of products.
BOE Technology Group Co., Ltd. Annual Report 2021
BOE continued to rank first in terms of quality performance of customers, with 28 of the core LCD customers making it to top twoand 24 to number one. Six customers of whole products ranked first throughout the year. In 2021, BOE was awarded the 4th ChinaQuality Award for its management model of innovation-driven high-quality development.
4. Further advanced digital transformation
BOE continued to comprehensively advance digital transformation, with the top goal of building "a digital, visual BOE". TheCompany promoted and implemented a series of digital change key measures to build an end-to-end digital management system of"agile response, efficient coordination, and full coverage", so as to stimulate organizational vitality, strengthen IT system support,revitalize data assets, and realize efficient digital operation. The Company continued to improve management efficiency and businessefficiency, and all tasks are progressing in an orderly manner.IV Core Business Analysis
1. Overview
In 2021, as the overall situation in the world was unpredictable, the global pandemic was still unmitigated and the continuous mutationsof viruses brought about new uncertainties and challenges, the global economic recovery momentum was still unconsolidated. After thelongest prosperity cycle in the history of the semiconductor display industry, market demand growth has slowed down and technologydevelopment continues to diversify. At the same time, 5G, AI and other technology applications accelerated iterative development,speeding up the construction of the IoE ecology. Besides, the intensifying global aging brought about a broad development opportunityfor the massive health industry.BOE actively responded to the complex and changing development environment, overcame challenges and seized opportunities,achieving its best ever results with significant growth in revenue and net profit. The Company achieved annual operating revenue ofapproximately RMB219.31 billion, up approximately 61.79% year on year, while achieving net profit attributable to shareholders ofthe listed company of approximately RMB25.83 billion, a significant increase of approximately 412.96% year on year. Specificoperational aspects:
1. Display Devices business
BOE further consolidated its leading position in the semiconductor display sector, which generated revenue of approximatelyRMB202,219 million during the Reporting Period, up approximately 64.30% year on year. Its market position further steadilyimproved, and product sales volume rose by 9% and sales area rose by 37% year on year. The market share of five mainstreamproducts, such as smartphone LCD screens, tablet PC displays, laptop displays, display screens and TV displays, continued to rankfirst globally. The sale area of innovative application products saw an increase of 26% year on year. In terms of flexible OLED, theCompany's shipments rapidly increased, and a breakthrough in business development was made, with the single-month shipmentsexceeding 10 million for the first time in December 2021.
2. IoT Innovation business
BOE has made breakthroughs in business landscape and headway in market expansion, and achieved revenue of approximatelyRMB28,379 million during the Reporting Period, up approximately 47.98% year on year. In terms of smart terminals, BOEcontinued to promote high-end product transformation for the TV smart terminal, achieving a year-on-year increase of 13% in sales.It achieved the introduction of leading customers for the high-end products of the display smart terminal, with a year-on-yearincrease of 29% in sales. EPD retail price tag sales increased by 50% year on year and innovative application scenarios such as theconference table card and passive name tag were expanded. Besides, BOE launched 81-inch and 105-inch 5K UHD wide-screenmonitors in terms of the IoT terminal commercial displays, and made market breakthroughs in applications such as smart whiteboards and light energy boards. In terms of system solutions, the smart whole products achieved full coverage from 55 inches to 135inches, with sales doubling year on year; the sales of large-size products and splicing products grew rapidly, with year-on-yeargrowth of over 5 times and 3 times, respectively; the smart finance screen was successfully shortlisted for centralized purchase by
BOE Technology Group Co., Ltd. Annual Report 2021
bank customers; the smart industrial park created 10 subdivided smart benchmark projects including cultural tourism, commerce andindustry; the smart government affairs created the first outdoor 8K UHD large screen in Guangzhou and other benchmark projects,and won the tender for the "100 Cities and 1000 Screens" project, setting a benchmark for the promotion of UHD screens in thecountry; the smart transportation business has gradually covered many transportation scenarios in nearly 20 cities, including Beijing,Shenzhen, Taiyuan and Qingdao.
3. Sensor and Solution business
BOE has made breakthroughs in market development, customer introduction and new product R&D, and achieved revenue ofapproximately RMB216 million during the Reporting Period, up approximately 80.43% year on year. Among them, BOE's medicalimaging products accounted for more than 40% of the domestic leading detector manufacturers, and it kept good cooperation withleading customers in Europe, the United States and South Korea. BOE developed the passenger car post-market for traffic windows,achieving mass production and delivery of products, exceeded 1,000 square meters of delivery area for glass curtain wall for the firsttime, and officially launched industrial sensor readers, filling the industry's domestic reader gap.
4. MLED business
BOE has made breakthroughs in multiple areas of products, technology and markets, and achieved revenue of approximatelyRMB452 million during the Reporting Period. Applying BOE's unique glass active drive technology, it released 75-inch and 86-inchTV backlight products and 34-inch monitor backlight products, and achieved the world premiere of P0.9 display products. Itlaunched the industry's first PCB 55-inch Mini LED splicing backlight product for entering the high-end security market, achievedmass production and delivery of Mini LED backlight notebook products and mass production and import of Mini LED VR productsfor leading brand customers.
5. Smart Medical Engineering business
BOE continued to improve the digital hospital and health management professional capabilities, and achieved revenue ofapproximately RMB1,847 million during the Reporting Period, up approximately 21.29% year on year. The health managementplatform obtained the license qualification of "BOE Intelligent Internet Hospital" and expanded three partner hospitals and sixpartner doctor teams. The intelligent hospital solution achieved the first project delivery, and a number of projects of the smarthealthcare solution were implemented in Beijing, Chengdu and other places. The digital hospital business grew significantly, the totaloutpatient visits increased by 130% year on year and the total discharges doubled, including over 100,000 visits to the Chengdu BOEHospital since its opening in April and the smooth opening of the Suzhou BOE Hospital in October. The stock of regenerativemedical neonatal stem cells boosted by over 50% year on year.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| Item | 2021 | 2020 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 219,309,799,505.00 | 100% | 135,552,569,729.00 | 100% | 61.79% |
| By operating division | |||||
| Display devices | 202,219,268,075.00 | 92.21% | 123,077,882,346.00 | 90.80% | 64.30% |
| IoT innovation | 28,379,332,761.00 | 12.94% | 19,178,428,559.00 | 14.15% | 47.98% |
BOE Technology Group Co., Ltd. Annual Report 2021
| Sensor and solution | 216,187,403.00 | 0.10% | 119,817,921.00 | 0.09% | 80.43% |
| MLED | 451,525,233.00 | 0.21% | — | — | — |
| Smart medical engineering | 1,846,551,592.00 | 0.84% | 1,522,460,282.00 | 1.12% | 21.29% |
| Others and offset | -13,803,065,559.00 | -6.30% | -8,346,019,379.00 | -6.16% | — |
| By product category | |||||
| Display devices | 202,219,268,075.00 | 92.21% | 123,077,882,346.00 | 90.80% | 64.30% |
| IoT innovation | 28,379,332,761.00 | 12.94% | 19,178,428,559.00 | 14.15% | 47.98% |
| Sensor and solution | 216,187,403.00 | 0.10% | 119,817,921.00 | 0.09% | 80.43% |
| MLED | 451,525,233.00 | 0.21% | — | — | — |
| Smart medical engineering | 1,846,551,592.00 | 0.84% | 1,522,460,282.00 | 1.12% | 21.29% |
| Others and offset | -13,803,065,559.00 | -6.30% | -8,346,019,379.00 | -6.16% | — |
| By operating segment | |||||
| Mainland China | 93,850,467,813.00 | 42.79% | 65,241,679,286.00 | 48.13% | 43.85% |
| Other regions in Asia | 96,116,878,840.00 | 43.83% | 54,895,384,319.00 | 40.50% | 75.09% |
| Europe | 5,478,685,805.00 | 2.50% | 4,804,966,123.00 | 3.54% | 14.02% |
| America | 23,770,495,392.00 | 10.84% | 10,316,934,261.00 | 7.61% | 130.40% |
| Other regions | 93,271,655.00 | 0.04% | 293,605,740.00 | 0.22% | -68.23% |
| By marketing model | |||||
| Direct sales | 219,309,799,505.00 | 100.00% | 135,552,569,729.00 | 100.00% | 61.79% |
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
| Display devices | 202,219,268,075.00 | 148,920,717,889.00 | 26.36% | 64.30% | 45.07% | 9.76% |
| IoT innovation | 28,379,332,761.00 | 25,108,953,836.00 | 11.52% | 47.98% | 48.72% | -0.45% |
| By product category | ||||||
| Display devices | 202,219,268,075.00 | 148,920,717,889.00 | 26.36% | 64.30% | 45.07% | 9.76% |
| IoT innovation | 28,379,332,761.00 | 25,108,953,836.00 | 11.52% | 47.98% | 48.72% | -0.45% |
BOE Technology Group Co., Ltd. Annual Report 2021
| By operating segment | ||||||
| Mainland China | 93,850,467,813.00 | 66,047,036,922.00 | 29.63% | 43.85% | 26.26% | 9.81% |
| Other regions in Asia | 96,116,878,840.00 | 68,072,102,152.00 | 29.18% | 75.09% | 51.79% | 10.87% |
| America | 23,770,495,392.00 | 17,261,312,475.00 | 27.38% | 130.40% | 94.39% | 13.45% |
| By marketing model | ||||||
| Direct sales | 219,309,799,505.00 | 155,985,225,295.00 | 28.87% | 61.79% | 41.28% | 10.32% |
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable√ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
| Operating division | Item | Unit | 2021 | 2020 | Change (%) |
| TFT-LCD | Sales volume | K ㎡ | 75,969 | 55,653 | 37.00% |
| Output | K ㎡ | 79,091 | 55,628 | 42.00% | |
| Inventory | K ㎡ | 6,000 | 2,555 | 135.00% | |
| AMOLED | Sales volume | K ㎡ | 836 | 501 | 67.00% |
| Output | K ㎡ | 855 | 537 | 59.00% | |
| Inventory | K ㎡ | 62 | 40 | 55.00% |
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
The sales volume, output and inventory of TFT-LCD increased in 2021 primarily due to new entities added to the consolidatedfinancial statements of 2021 and the transfer of new production line to fixed assets.The sales volume, output and inventory of AMOLED increased in 2021 primarily due to the transfer of new production line to fixedassets.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
| By operating division | Item | 2021 | 2020 | Change (%) | ||
| Cost of sales | As % of total cost of sales | Cost of sales | As % of total cost of | |||
BOE Technology Group Co., Ltd. Annual Report 2021
| (%) | sales (%) | |||||
| Display devices | Materials, labor costs, depreciation, etc. | 148,920,717,889.00 | 95.47% | 102,650,861,838.00 | 92.97% | 45.07% |
| IoT innovation | Materials, labor costs, depreciation, etc. | 25,108,953,836.00 | 16.10% | 16,883,719,082.00 | 15.29% | 48.72% |
| Sensor and solution | Materials, labor costs, depreciation, etc. | 166,800,549.00 | 0.11% | 75,405,672.00 | 0.07% | 121.20% |
| MLED | Materials, labor costs, depreciation, etc. | 436,645,746.00 | 0.28% | — | — | — |
| Smart medical engineering | Materials, labor costs, depreciation, etc. | 1,370,997,955.00 | 0.88% | 724,268,025.00 | 0.66% | 89.29% |
| Others and offset | Materials, labor costs, depreciation, etc. | -20,018,890,680.00 | -12.84% | -9,924,372,413.00 | -8.99% | — |
Unit: RMB
| By product category | Item | 2021 | 2020 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display devices | Materials, labor costs, depreciation, etc. | 148,920,717,889.00 | 95.47% | 102,650,861,838.00 | 92.97% | 45.07% |
| IoT innovation | Materials, labor costs, depreciation, etc. | 25,108,953,836.00 | 16.10% | 16,883,719,082.00 | 15.29% | 48.72% |
| Sensor and solution | Materials, labor costs, depreciation, etc. | 166,800,549.00 | 0.11% | 75,405,672.00 | 0.07% | 121.20% |
| MLED | Materials, labor costs, depreciation, etc. | 436,645,746.00 | 0.28% | — | — | — |
| Smart medical engineering | Materials, labor costs, depreciation, etc. | 1,370,997,955.00 | 0.88% | 724,268,025.00 | 0.66% | 89.29% |
| Others and offset | Materials, labor costs, depreciation, etc. | -20,018,890,680.00 | -12.84% | -9,924,372,413.00 | -8.99% | — |
Note: The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid theleakage of these secrets, which could result in damage to the interests of the Company and its investors, cost of sales is onlypresented with respect to the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
BOE Technology Group Co., Ltd. Annual Report 2021
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 82,895,383,535.00 |
| Total sales to top five customers as % of total sales of the Reporting Period (%) | 37.80% |
| Total sales to related parties among top five customers as % of total sales of the Reporting Period (%) | 0.00% |
Information about top five customers:
| No. | Customer | Sales revenue contributed for the Reporting Period (RMB) | As % of total sales revenue (%) |
| 1 | Customer A | 19,853,271,622.00 | 9.05% |
| 2 | Customer B | 18,794,700,191.00 | 8.57% |
| 3 | Customer C | 17,115,227,423.00 | 7.80% |
| 4 | Customer D | 13,964,581,869.00 | 6.37% |
| 5 | Customer E | 13,167,602,430.00 | 6.00% |
| Total | -- | 82,895,383,535.00 | 37.80% |
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 23,863,826,743.00 |
| Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) | 17.89% |
| Total purchases from related parties among top five suppliers as % of total purchases of the Reporting Period (%) | 0.00% |
Information about top five suppliers:
| No. | Supplier | Purchase in the Reporting Period (RMB) | As % of total purchases (%) |
| 1 | Supplier A | 8,879,944,222.00 | 6.66% |
| 2 | Supplier B | 5,573,211,870.00 | 4.18% |
| 3 | Supplier C | 3,232,676,412.00 | 2.42% |
| 4 | Supplier D | 3,094,661,979.00 | 2.32% |
| 5 | Supplier E | 3,083,332,260.00 | 2.31% |
BOE Technology Group Co., Ltd. Annual Report 2021
| Total | -- | 23,863,826,743.00 | 17.89% |
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
| Item | 2021 | 2020 | Change (%) | Reason for any significant change |
| Selling expense | 5,484,589,978.00 | 3,138,283,646.00 | 74.76% | Increased operating revenue and changes to the consolidation scope |
| Administrative expense | 6,693,373,589.00 | 4,600,271,642.00 | 45.50% | Increased operating revenue and changes to the consolidation scope |
| Finance costs | 3,682,379,202.00 | 2,650,153,972.00 | 38.95% | New project being put into operation and changes to the consolidation scope |
| R&D expense | 10,668,844,187.00 | 7,638,602,711.00 | 39.67% | Greater R&D investments |
4. R&D Investments
√ Applicable □ Not applicable
| Names of main R&D projects | Project objectives | Project progress | Objectives to be achieved | Expected impact on the future development of the Company |
| Development of BD Cell broadcast monitors | To make technological breakthroughs in the professional broadcast monitors of BOE and meet ultra-high optical specifications. | Under mass production. | To realize mass production, exceed the megapixel contrast, and meet professional requirements for brightness and color gamut. | To make technological breakthroughs in this aspect, establish a favorable technological and brand image, and improve product profitability. |
| High refresh rate technology | To provide solutions with ultra-high refresh rates to professional fields, such as e-sports and sports events, so that images will become smoother. | Under mass production. | The complete series of products will include mobiles, tablet PCs, laptops, displays, and TV panels. Refresh rates will be raised significantly. Flagship products, such as multiple client laptops and displays, will be under mass production. | To occupy the high-end e-sports market, optimize the product structure, and raise the profitability of product portfolios, based on BOE's independent and advanced technologies. |
| High contrast technology | To raise the contrast of LCD products to strengthen image quality. | In progress. | To significantly enhance the contrast of LCD products and reach a leading level in the | The increase in contrast will be important for the improvement in the image quality of panels. Higher |
BOE Technology Group Co., Ltd. Annual Report 2021
| industry. | contrast will expose users to the better image quality of high-end products and strengthen product competitiveness. | |||
| High color gamut technology | To restore true environmental colors through a high color gamut. | Under mass production. | To reach 90% in BT2020 and 100% in both DCI-P3 and Adobe, in terms of the standards for different color gamut. | To utilize BOE's unique, organic, and eco-friendly backlight technology to achieve an ultra-high color gamut, and consider the high color gamut as an important process of the ADS Pro brand, laying a favorable brand foundation for product marketing. |
| Low-carbon and eco-friendly technology | To reduce the power consumption of displays, prolong standby time, respond to the strategy of peak carbon emissions and carbon neutrality, and turn products more energy-saving and eco-friendly. | Under mass production. | To significantly improve the light transmittance of the complete series of products, strengthen the luminous efficacy of the backlight, and simultaneously reduce power consumption. | For consumers, the reduction of power consumption can prolong the standby time of portable products. For customers, the reduction of power consumption can meet different product standards. For corporate responsibilities, more eco-friendly products with lower carbon emissions will be manufactured, and a green environment will be created. |
| Healthy display technology | To offer healthier and eye-protecting displays for educational and office scenarios. | Under mass production. | To achieve functions, such as low blue light, adaptive control of brightness/color temperature, rotatory polarization, high frequency, and total reflection. | Healthy displays have attracted increasing attention. Healthy and eye-protecting products have been long-anticipated, such as mobiles and tablet PCs for learning and office laptops and displays. The gradual improvement in this technology will prominently reinforce companies' competitiveness in education and work. |
| Development of low-temperature polycrystalline oxide (LTPO) integration technology | To enhance the battery life of the machine through low-frequency technology. | The product client has been launched. | 1. The refresh rate will enable the free switch between high and low frequencies. 2. The flickering will be less than 45dB, invisible to the naked eye. | This product has been launched on the Magic 4 series. The technological competitiveness of this product will be enhanced by promoting LTPO as a standard configuration of flagship mobiles, foldable products, intelligent watches. |
| Development of | To make the hole closer to | The product | The border of the punch-hole | Provide customers with more |
BOE Technology Group Co., Ltd. Annual Report 2021
| technology to narrow the hole border of punch-hole displays | the top border and make the hole border narrower and the whole machine design more aesthetic. | client has been launched. | module of the display with a hole diameter of 2.8mm will be 0.45mm. The screen-to-body ratio will be raised to make the display more aesthetic. | aesthetic product design and strengthen product competitiveness by quickly proposing mature plans for independent design and processes. |
| Development of foldable OLED laptop screens | To develop foldable OLED laptop screens. | Under mass production. | 1. To achieve 200,000 times folds of screens in a large size. 2. To successfully achieve the mass production of foldable laptops. | To provide the world's largest foldable products, meet customers' performance requirements, expand new applications, and establish the image of f-OLED. |
| Development of under-display ultrasonic fingerprint scanning technology | To reserve relevant technologies, and provide new solutions of fingerprint identification when a "depolarization chip" or a high pixel density is adopted for screens in the future. | R&D has been completed | 1. To meet the functional requirement of fingerprint after OLEDs are equipped with fingerprint identification: The signal to noise ratio (SNR) > 4. To pass reliability tests. 2. To complete the acceptance of displays and the 20*30mm fingerprint identification processes | 1. To fully complete the development of bar-style products and foldable displays + ultrasonic fingerprint. 2. To achieve faster and more precise fingerprint identification and reach the flagship level in fingerprint identification. 3. To realize integrated delivery of BOE's displays + ultrasonic fingerprint and raise the added value of products. |
| Development of COG MLED backlight TVs | Glass MLED BLU products feature a bigger size, fewer panels, and lower flickering. Besides, its advantages also include ultra-high partition, contrast, and brightness. The conventional direct-type backlight indicators will be significantly improved to provide TV customers with extreme experiences. Meanwhile, efforts will be made to meet the requirements in the high-end TV market. | The product client has been launched. | 1. To address the issue of a high reliability risk regarding the PCB direct-type backlight multiple panels of conventional TV products. 2. To grasp the process route of glass MLED backlight products. 3. To provide customers with 75-inch and 86-inch MLED backlight products with 1,000-grade partition, ultra-high brightness of 1,500nit, ultra-high reliability, and 1 million-grade contrast. | To set the partition grade, based on high-precision glass processes, AM-driven and high-precision die bonding processes, to develop advantages, such as fewer panels, high optical consistency, multiple partitions, and low flickering, exert effort for the application of glass MLED backlight products in the high-end TV market, and lay a solid foundation for the expansion of subsequent industries. |
| Development of COG P0.9 MLED products | To produce AM-driven tiled display screens, based on P0.9, complete glass MLED display scheme modules with high luminous efficacy | Under mass production. | 1. To solve the issues of conventional PCB LED products, such as high flickering, high power consumption, and a high reliability risk. | BOE manufactures MLED products featuring superior advantages, such as seamless tiling, extreme images, and healthy and low flickering, by utilizing its industry-leading side |
BOE Technology Group Co., Ltd. Annual Report 2021
| and low flickering, and smoothly conduct mass production and delivery. | 2. To grasp the process route of glass MLED products. 3. To provide customers with MLED products that feature high brightness, high reliability, 1 million-grade contrast, seamless tiling, healthy and low flickering, and extreme darkness. | processes and technology, a major technological breakthrough of LED chips from milliampere to microampere, and self-developed AM-driven schemes, and offer customers extreme experiences. Meanwhile, thanks to the high-precision semiconductor processes, our products will enjoy the innate advantage of small pitch iteration. | ||
| Development of COG MLED backlight MNT products | To satisfy high-end requirements in the MNT Gaming market and expand the presence in the glass AM MNT, by developing glass MLED backlight products featuring ultra-high brightness, ultra-high partition, and ultrathin modules. | Under mass production. | 1. To materialize MNT products corresponding to single panels and address the issues of PCB direct-type backlight of conventional MNT products, such as multiple panels and a high reliability risk. 2. To provide customers with MLED backlight products that are 1,000-grade partition, ultra-high brightness of 1,250nit, ultra-high reliability, and 1 million-grade contrast. 3. To invest in the MNT gaming market. | BOE has invested in MNT products, based on its AM-driven schemes, high-precision glass processes, and high-precision die bonding processes. MLED e-sports application products are commensurate with the high-end requirements of the e-sports market, attributable to the high brightness, color gamut, and contrast of glass MLED technology. |
| Development of COB P1.25MLED products | To produce PM-driven tiled display screens, based on P1.25, complete the PCB MLED display scheme modules, and smoothly conduct mass production and delivery. | Under mass production. | 1. To integrate the upstream resource pool of COB products. 2. To grasp the COB process route of BOE's factory. 3. To provide customers with models with high luminous efficacy and high visual effects and systematic COB products. | COB's market penetration rate has gradually increased since 2021. BOE, based on its own process routes, has quickly entered the fine-pitch COB market to make favorable preparation for the subsequent market perception, market input, and technology progress. |
| Development of POB MLED backlight tiled commercial display products | To develop 55-inch POB MLED backlight products with high brightness, 100-grade partition, and thin modules to meet requirements of TVs, commercial displays, and the tiled display screen | Under mass production. | 1. To integrate the upstream resource pool of MLED backlight POB products. 2. To provide customers with cost-effective medium- and high-end tiled display screen products. | With respect to POB MLED products, BOE has systematically integrated core resources and designed systematic plans for products, laying a foundation for entry into the large-size mainstream markets, such as TVs and commercial displays. |
BOE Technology Group Co., Ltd. Annual Report 2021
| market. | ||||
| The R&D project of a mobile smart terminal platform centering on ARM architecture | To center on the Group's strategic vision of the " Screen-Connected IoT ", regard display technology as the core, give full play to the key resources of display devices and the leading display technology, and expand and upgrade the building of a smart terminal platform ecosystem centering on ARM architecture. | R&D has been completed | To have independent R&D capabilities of smart terminal architecture with ARM architecture as the core platform and tablet PC projects. | Adhere to the Group's strategy of " Screen-Connected IoT ", develop the R&D capabilities of smart terminal tablet PCs, realize mutual empowerment between the Group's whole machine and device businesses, and facilitate the business expansion of the Group's smart terminals in the next 3-5 years. |
| The R&D project of a PC platform centering on X86 architecture | To center on the Group's strategic vision of " Screen-Connected IoT ", regard display technology as the core, give full play to the key resources of display devices and the leading display technology, and combine the development capabilities of the soft and hard systems of terminal machines to establish advantages in the terminal product market. | R&D has been completed | To have independent R&D capabilities of laptop products with X86 architecture as the core platform, and relevant products. | Adhere to the Group's strategy of " Screen-Connected IoT ", develop the R&D capabilities of laptop products, establish new terminal production lines, expand the product boundary through the expansion of the technological boundary, and facilitate the business expansion of the Group's smart terminals in the next 3-5 years. |
| The project of oversea authorization of intelligent TVs | To enrich the intelligent TV production line, strengthen the competitiveness of overseas intelligent TVs, and expand the overseas sales of intelligent TVs. | Under mass production. | To obtain the authorization of the three mainstream smart product platforms in the world, complete product development and certification, and achieve mass production and delivery. | Connect internal and external ecosystems intelligent TV projects, bridge the channel from devices to terminals to systems, and utilize the machine system ecosystem to drive the internal ecosystem transformation. |
| The project of quantum dot e-sports displays with a high refresh rate | To give priority to analyzing the improvement in color gamut coverage through quantum dots and restore true colors. | The product client has been launched. | To complete the development of the key indicators of displays. The color gamut coverage will reach DCI-P3 95%, Adobe RGB 99%, sRGB 99%, and NTSC 95%. The refresh rate will reach 165Hz. The response time will be within 1ms. | The first application of quantum dots to the Company's display products and the mass production have enriched the categories of the Company's product line of high-end e-sports display products, and laid a solid foundation for the subsequent and sustainable technological |
BOE Technology Group Co., Ltd. Annual Report 2021
| improvement, branding, and marketing. | ||||
| The project of development of smart whole products U1 | To complete the development of the industry's first Mini LED smart whole products, provide customers with whole products integrating software and hardware strengths with satisfying interactive experiences, good stability, and rich functions, and meet user requirements under multiple scenarios. | The product client has been launched. | To provide high-end customers with intelligent, convenient, and effective application services in scenarios, such as offices, meetings, and painting. To allow the product to have precise light control based on 5,000+ partitions, reach the contrast of 1,000,000: 1 and the color gamut coverage of NTSC 95%. The TUV Rheinland certification for low blue light, the C-IDEA Design Award, and the "Science and Technology Award" of the China Video Industry Association (CVIA) were obtained in 2021. | To optimize users' interactive experience of writing through display and touch technologies, provide multiple intelligent office functions, intensify the office efficiency of users, reinforce the brand competitiveness of BOE, and improve channel delivery sustainably. |
| The project of a smart park digital platform | To develop an IoT application integration platform universal to the scenario of parks to quickly integrate system applications, display products, AIoT services, and ecological hardware terminals, and offer customers comprehensive solutions of park management, operations, and services. | R&D has been completed | To complete the building of the smart park digital platform, achieve functions, such as security and protection management, equipment management, environmental space management, property operations, and investment attraction, which face owners, merchants, and tourists in the park, complete the R&D of innovative functions, such as intelligent video services and system procedure automation, and realize bulk copy and implementation. | The smart park digital platform is an implementation of the strategy of "Screen-Connected IoT" in the industrial park industry, which strengthens BOE's competitiveness in digital solutions for industrial parks. The platform is designated to serve as a new business growth point. |
| The project of an intelligent comprehensive financial management platform | To develop sub-systems, such as comprehensive information release systems, precision marketing systems, intelligent edge computing systems, and outlet portrait analysis systems, for the scenario of bank outlets, combine smart | The product client has been launched. | To realize the three-tier management function of banks, covering the head office, branches, and sub-branches, and empower banks with the following six digital capabilities during the whole process of customer service: Deepening customers' impression, enhancing | This platform provides bank outlets with comprehensive digital service capabilities, through intelligent systems and products integration soft and hard strengths. It is an implementation of the strategy of "Screen-Connected IoT" in the financial industry, designated to enhance BOE's competitiveness in |
BOE Technology Group Co., Ltd. Annual Report 2021
| terminals to provide bank outlets with comprehensive services of digital operations and management, and reinforce the management and operations of outlets. | customer experiences, utilizing big data, conducting precision marketing, connecting online and offline services, and strengthening comprehensive operations and management. | digital solutions in the financial industry and deepen brand influences. |
Particulars about R&D personnel:
| Item | 2021 | 2020 | Change (%) |
| Number of R&D personnel | 19,708 | 19,694 | 0.07% |
| R&D personnel as % of total employees | 24.80% | 25.76% | -0.96% |
| Educational background of R&D personnel | —— | —— | —— |
| Bachelor’s degree | 11,780 | 11,425 | 3.11% |
| Master’s degree | 6,035 | 6,233 | -3.18% |
| Age structure of R&D personnel | —— | —— | —— |
| Below 30 | 9,335 | 9,986 | -6.52% |
| 30~40 | 9,530 | 8,736 | 9.09% |
Particulars about R&D investments:
| Item | 2021 | 2020 | Change (%) |
| R&D investments (RMB) | 12,436,495,134.00 | 9,441,596,318.00 | 31.72% |
| R&D investments as % of operating revenue | 5.67% | 6.97% | -1.30% |
| Capitalized R&D investments (RMB) | 2,067,727,404.00 | 1,939,420,807.00 | 6.62% |
| Capitalized R&D investments as % of total R&D investments | 16.63% | 20.54% | -3.91% |
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
| Item | 2021 | 2020 | Change (%) |
| Subtotal of cash generated from operating activities | 239,061,029,152.00 | 169,593,756,177.00 | 40.96% |
BOE Technology Group Co., Ltd. Annual Report 2021
| Subtotal of cash used in operating activities | 176,790,472,828.00 | 130,341,982,719.00 | 35.64% |
| Net cash generated from/used in operating activities | 62,270,556,324.00 | 39,251,773,458.00 | 58.64% |
| Subtotal of cash generated from investing activities | 36,759,481,145.00 | 25,532,266,564.00 | 43.97% |
| Subtotal of cash used in investing activities | 77,472,109,931.00 | 68,939,233,413.00 | 12.38% |
| Net cash generated from/used in investing activities | -40,712,628,786.00 | -43,406,966,849.00 | —— |
| Subtotal of cash generated from financing activities | 63,655,025,447.00 | 70,901,578,897.00 | -10.22% |
| Subtotal of cash used in financing activities | 75,836,895,000.00 | 47,083,848,940.00 | 61.07% |
| Net cash generated from/used in financing activities | -12,181,869,553.00 | 23,817,729,957.00 | -151.15% |
| Net increase in cash and cash equivalents | 8,558,749,712.00 | 17,794,414,798.00 | -51.90% |
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities increased 58.64% year on year, primarily driven by the expansion of the Company'soperating revenue and the improvement of operating results.Net cash generated from financing activities decreased 151.15% year on year, primarily driven by the repayment of borrowings andthe buyback of minority interests in subsidiary.Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this ReportingPeriod
√ Applicable □Not applicable
The net cash generated from operating activities was higher than the net profit primarily because the depreciation amount of displayequipment is high.V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Source/Reason | Recurrent or not |
| Return on investment | 1,347,489,345.00 | 3.89% | Income recognized from associates | Not |
| Gain/loss on changes in fair value | 84,966,963.00 | 0.25% | N/A | Not |
| Asset impairments | -4,478,251,852.00 | -12.94% | Inventory valuation allowances established based | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| on market conditions | ||||
| Non-operating income | 131,607,946.00 | 0.38% | N/A | Not |
| Non-operating expense | 55,215,102.00 | 0.16% | N/A | Not |
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| Item | 31 December 2021 | 1 January 2021 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 80,986,835,088.00 | 18.01% | 73,694,296,095.00 | 17.35% | 0.66% | N/A |
| Accounts receivable | 35,503,414,820.00 | 7.89% | 22,969,140,355.00 | 5.41% | 2.48% | Increased operating revenue |
| Contract assets | 75,698,324.00 | 0.02% | 49,897,395.00 | 0.01% | 0.01% | N/A |
| Inventories | 27,724,806,939.00 | 6.16% | 17,875,454,490.00 | 4.21% | 1.95% | Increased operating revenue and new project being put into mass production |
| Investment property | 1,158,365,401.00 | 0.26% | 1,196,168,511.00 | 0.28% | -0.02% | N/A |
| Long-term equity investments | 6,040,948,317.00 | 1.34% | 3,693,170,224.00 | 0.87% | 0.47% | N/A |
| Fixed assets | 226,695,489,704.00 | 50.41% | 224,770,354,605.00 | 52.92% | -2.51% | N/A |
| Construction in progress | 32,120,320,507.00 | 7.14% | 42,575,849,952.00 | 10.02% | -2.88% | N/A |
| Right-of-use assets | 753,164,237.00 | 0.17% | 618,678,956.00 | 0.15% | 0.02% | N/A |
| Short-term borrowings | 2,072,057,332.00 | 0.46% | 8,599,569,471.00 | 2.02% | -1.56% | N/A |
| Contract liabilities | 3,765,081,554.00 | 0.84% | 3,440,720,535.00 | 0.81% | 0.03% | N/A |
| Long-term borrowings | 116,078,666,587.00 | 25.81% | 132,452,767,135.00 | 31.18% | -5.37% | N/A |
| Lease liabilities | 669,130,264.00 | 0.15% | 549,031,243.00 | 0.13% | 0.02% | N/A |
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 4,367,201,833.00 | 84,966,963.00 | 0.00 | 0.00 | 37,245,240,063.00 | 30,990,344,616.00 | 0.00 | 10,635,068,300.00 |
| 2.Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Investments in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Investments in other equity instruments | 533,645,423.00 | 0.00 | -215,438,631.00 | 0.00 | 39,270,175.00 | 0.00 | 0.00 | 519,088,146.00 |
| Subtotal of financial assets | 4,900,847,256.00 | 84,966,963.00 | -215,438,631.00 | 0.00 | 37,284,510,238.00 | 30,990,344,616.00 | 0.00 | 11,154,156,446.00 |
| Investment property | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total of the above | 4,900,847,256.00 | 84,966,963.00 | -215,438,631.00 | 0.00 | 37,284,510,238.00 | 30,990,344,616.00 | 0.00 | 11,154,156,446.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes:
N/A
BOE Technology Group Co., Ltd. Annual Report 2021
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 4,152,705,165.00 | Mainly include security deposits, put in pledge for the issuance of notes payable |
| Notes receivable | 23,902,855.00 | Endorsed and transferred with right of recourse, and put in pledge for the issuance of notes payable |
Inventories
| Inventories | 0.00 | N/A |
| Fixed assets | 171,435,160,686.00 | As collateral for guarantee |
| Intangible assets | 1,623,510,499.00 | As collateral for guarantee |
Construction in progress
| Construction in progress | 316,234,570.00 | As collateral for guarantee |
| Investment property | 41,247,205.00 | As collateral for guarantee |
| Total | 177,592,760,980.00 | -- |
VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | Change (%) |
| 2,501,899,622.00 | 933,268,059.00 | 168.08% |
BOE Technology Group Co., Ltd. Annual Report 2021
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Funding source |
| Domestic/overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 74,372,840.00 | 0.00 | -33,521,592.00 | 0.00 | 0.00 | 1,924,620.00 | 56,638,836.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 102,845,668.00 | 0.00 | -28,208,687.00 | 0.00 | 0.00 | 9,345,312.00 | 91,875,688.00 | Other equity instrument investment | Self-funded |
BOE Technology Group Co., Ltd. Annual Report 2021
| Domestic/overseas stock | HK01518 | New Century Healthcare | 140,848,850.00 | Fair value method | 36,995,513.00 | 0.00 | -121,038,365.00 | 0.00 | 0.00 | 0.00 | 19,810,485.00 | Other equity instrument investment | Self-funded |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 351,093,653.00 | -- | 214,214,021.00 | 0.00 | -182,768,644.00 | 0.00 | 0.00 | 11,269,932.00 | 168,325,009.00 | -- | -- | ||
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | ||||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | ||||||||||||
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
| Counterparty | Relationship with the Company | Related-party transaction or not | Type of derivative | Initial investment amount | Start date | End date | Beginning investment amount | Purchased in the Reporting Period | Sold in the Reporting Period | Impairment allowance (if any) | Ending investment amount | Ending investment amount as % of the Company’s ending net asset value | Actual gain/loss in the Reporting Period |
| Financial institutions | Not related parties | Not | Foreign exchange | 118,687.93 | 1 Jan. 2021 | 31 Dec. 2021 | 118,687.93 | 35,540.25 | 77,082.21 | - | 77,145.97 | 0.54% | -307.53 |
BOE Technology Group Co., Ltd. Annual Report 2021
| forward contract | |||||||||||
| Total | 118,687.93 | -- | -- | 118,687.93 | 35,540.25 | 77,082.21 | - | 77,145.97 | 0.54% | -307.53 | |
| Funding source | Self-funded | ||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||
| Disclosure date of the announcement about the board’s consent for the derivatives investment (if any) | N/A | ||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the derivatives investment (if any) | N/A | ||||||||||
| Analysis of risks and control measures associated with the derivative investments held in the Reporting Period (including but not limited to market, liquidity, credit, operational and legal risks, etc.) | As of the end of the reporting period, the financial derivatives held by the company are foreign exchange forward contracts, and the risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the financial derivatives are as follows: the company controls the types of derivative transactions, reasonably matches the scale of derivative transactions, and the transactions must match the company's production, operation and development planning, mainly for the purpose of cost locking and risk prevention. | ||||||||||
| Changes in market prices or fair value of derivative investments in the Reporting Period (fair value analysis should include measurement methods and related assumptions and parameters) | The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation of the external financial institutions. | ||||||||||
| Significant changes in accounting policies and specific accounting principles adopted for derivative investments in the Reporting Period compared to the last reporting period | No major changes | ||||||||||
| Opinion of independent directors on derivative investments and risk control | N/A | ||||||||||
BOE Technology Group Co., Ltd. Annual Report 2021
5. Use of Funds Raised
√ Applicable □ Not applicable
(1) Overall Usage of Funds Raised
√ Applicable □ Not applicable
Unit: RMB’0,000
| Year | Way of raising | Total funds raised | Total funds used in the Current Period | Accumulative fund used | Total funds with usage changed | Accumulative funds with usage changed | Proportion of accumulative funds with usage changed | Total unused funds | The usage and destination of unused funds | Amount of funds raised idle for over two years |
| 2021 | Private placement of stocks | 2,033,260 | 1,749,817 | 1,749,817 | 0 | 0 | 0.00% | 283,443 | Continuously used for the construction of equity investment project | 0 |
| Total | -- | 2,033,260 | 1,749,817 | 1,749,817 | 0 | 0 | 0.00% | 283,443 | -- | 0 |
| Explanation of overall usage of funds raised | ||||||||||
| The cumulative amount of raised funds through private placement of stocks was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the Reporting Period, the raised funds were used according to project investment plans, conforming to the relevant promise. | ||||||||||
(2) Commitment Projects of Fund Raised
√ Applicable □ Not applicable
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Changed or not (including partial changes) | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the Reporting Period | Accumulative investment amount as of the period-end (2) | Investment schedule as the period-end (3)＝(2)/(1) | Date of reaching intended use of the project | Realized income in the Reporting Period | Whether reached anticipated income | Whether occurred significant changes in project feasibility |
| Committed investment project | ||||||||||
| Fuzhou BOE Optoelectronics | Not | 300,000 | 300,000 | 300,000 | 300,000 | 100.00% | - | - | N/A | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| Technology Co., Ltd. | ||||||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 650,000 | 650,000 | 650,000 | 650,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 600,000 | 600,000 | 420,330 | 420,330 | 70.06% | - | - | N/A | Not |
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Not | 100,000 | 100,000 | 0 | 0 | 0.00% | - | - | N/A | Not |
| Chengdu BOE Hospital Co., Ltd. | Not | 50,000 | 50,000 | 46,227 | 46,227 | 92.45% | - | - | N/A | Not |
| Supplementation of working capital | Not | 286,951 | 286,951 | 286,951 | 286,951 | 100.00% | - | - | N/A | Not |
| Subtotal of committed investment project | -- | 1,986,951 | 1,986,951 | 1,703,508 | 1,703,508 | -- | -- | - | -- | -- |
| Super raised funds arrangement | ||||||||||
| N/A | ||||||||||
| Total | -- | 1,986,951 | 1,986,951 | 1,703,508 | 1,703,508 | -- | -- | - | -- | -- |
| Condition and reason for not reaching the schedule and anticipated income (by specific items) | No such cases in the Reporting Period. | |||||||||
| Notes of condition of significant changes occurred in project feasibility | Naught | |||||||||
| Amount, usage and schedule of super raise fund | N/A | |||||||||
| Changes in implementation address of investment project | N/A | |||||||||
| Adjustment of implementation mode of investment project | N/A | |||||||||
| Advance investments in projects financed | Applicable | |||||||||
| As at 31 December 2021, the Company had replaced the prior invested funds of the committed investment | ||||||||||
BOE Technology Group Co., Ltd. Annual Report 2021
| with raised funds and swaps of such advance investments with subsequent raised funds | projects with the raised funds from the non-public offering of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited, and RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd. |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | Applicable |
| As at 31 December 2021, the balance of the raised funds from the non-public offering of shares was RMB2,875.9032 million, representing the unused raised funds and interest income generated during the deposit period. | |
| Usage and destination of unused funds | As of December 31, 2021, the unspent raised funds will be paid for the purposes specified in the Issuance Report and Listing Notice. |
| Problems incurred in fund using and disclosure or other condition | Naught |
(3) Changes in Items of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
IX Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, Production, and sales of semi-conductor display device, complete machine, and relevant products; import and export business and technology consulting of goods. | 19,226,000,000.00 | 48,094,827,703.00 | 38,313,768,144.00 | 33,808,468,804.00 | 12,344,357,092.00 | 10,497,372,366.00 |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 17,600,000,000.00 | 30,885,047,739.00 | 22,399,433,702.00 | 18,248,612,653.00 | 5,241,728,412.00 | 4,569,140,153.00 |
| Hefei BOE Display Technology Co., Ltd. | Subsidiary | Investment construction, R&D, and production of relevant products of TFT-LCD and its matching products. | 24,000,000,000.00 | 40,130,254,060.00 | 24,459,810,494.00 | 19,853,911,826.00 | 3,375,737,558.00 | 3,314,633,885.00 |
| Beijing BOE Display Technology Co., Ltd. | Subsidiary | Technical Development of TFT-LCD and manufacturing and sales of LCD | 17,882,913,500.00 | 38,687,063,601.00 | 23,067,372,410.00 | 33,711,487,459.00 | 3,744,769,932.00 | 3,263,994,432.00 |
BOE Technology Group Co., Ltd. Annual Report 2021
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
| Name of subsidiary | How the subsidiary was acquired or disposed of | Effects on the overall operations and performance |
| Beijing Smart-Aero Display Technology Co., Ltd. | Negotiating transfer | No significant effects |
Other information on principal subsidiaries and joint stock companies:
N/AX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospects
1. "1+4+N" development structure
Display Devices business: The Company will focus on optimizing the structure of LCD products and speed up the establishment ofa comprehensive leading position in the innovative application market; accelerate the improvement of OLED technology capability,continue to optimize the product structure and further strengthen the building of competitive advantages; proactively leverage theadvantages of the industry leader and continue to spearhead the healthy development of the industry.IoT Innovation business: The Company will enhance the designed capacity of smart terminal software and hardware integrationsystem, strengthen the conversion of new technology to mass production and the technical reserve of innovative business, andcontinue to develop strategic customers, strengthen cooperation with eco-partners, strengthen the implementation of benchmarkprojects, enhance brand influence, and accelerate the growth of business scale.Sensor and Solution business: The Company will continue to deepen the development of medical biology, smart screens, consumerelectronics, microwave communications, and industrial sensors, to provide customers with high-performance products and services.MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinateddevelopment of SMD/COB, strengthen the collaboration with upstream and downstream resources, continuously enrich the productmix, enhance product competitiveness, expand applications and expedite the development of business landscape.Smart Medical Engineering business: The Company will optimize the whole-cycle O+O health service closed-loop system,improve the unified membership management system, connect platform services, and enhance the core competitiveness of the digitalhospital, while steadily promoting the building of Beijing Life Science and Technology Industrial Base.In other business areas, based on the "1+4" capability distribution to reach the demand side and market side, the Company willachieve large-scale application scenarios, which is the specific focus of BOE's IoT transformation and the frontier position to win thechallenge of transformation, such as smart retail, and Zhongxiangying. Additionally, the Company will continue to deepen itsadvantageous track to accelerate the growth of core capabilities and the opening of emerging application markets, thereby launchinga new era of high quality and high speed growth of BOE.
2. Digital transformation
With the aim of building "a digital, visible BOE", the Company will firmly promote a series of digital transformation to furtherimprove operational efficiency and business performance, and boost long-term, stable and high-quality development.
3. "Double carbon" task
The Company will further implement the concept of green development and undertake "double carbon" task in an orderly manner by
BOE Technology Group Co., Ltd. Annual Report 2021
means of green management, green products, green manufacturing, green recycling, green investment and green actions.XII Communications with the Investment Community such as Researches, Inquiries andInterviews
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 2021-03-11 | Company Conference Room | By phone | Institution | Penghua Fund, China International Fund | Main content: 1. Main situation of the industry; 2. Major operating information of the Company. Materials provided: public materials including Interim Report 2020, Third Quarterly Report 2020, Performance Forecast for 2020 | www.cninfo.com.cn |
| 2021-03-11 | Company Conference Room | By phone | Institution | Akira Investment | ||
| 2021-04-14 | Company Conference Room | By phone, One-site visit | Institution | 196 institutions including Acuitykp | Main content: 1. Performance results of the Company 2. Main situation of the industry; 3. The Company's major operating information; 4. Technologies and innovations. Materials provided: public materials including Annual Report 2020, Performance Forecast for Q1 2021 | |
| 2021-04-19 | Company Conference Room | By phone | Institution | Turiya Capital | ||
| 2021-04-20 | Company Conference Room | One-site visit | Institution | China Merchants Capital | ||
| 2021-04-22-2021-04-23 | Company Conference Room | One-site visit | Institution | 74 institutions including SDIC Chuangyi Industrial Fund | ||
| 2021-04-30 | Company | By phone | Institution | 141 institutions | Main content: | www.cninfo.com.cn |
BOE Technology Group Co., Ltd. Annual Report 2021
| Conference Room | including Acuitykp | 1. Performance results of the Company 2. Main situation of the industry; 3. The Company's major operating information; 4. Technologies and innovations. Materials provided: public materials including Annual Report 2020, First Quarterly Report 2021 | |
2021-05-06
| 2021-05-06 | Company Conference Room | One-site visit | Institution | Four institutions including China Reform Central Enterprise Operation and Investment Fund | ||
| 2021-05-10 | Company Conference Room | One-site visit | Institution | 20 institutions including National Manufacturing Transformation and Upgrade Fund | ||
| 2021-05-19 | Company Conference Room | One-site visit | Institution | Three institutions including Shanghai Shanxi Investment Management Co., Ltd. | ||
| 2021-05-20 | Company Conference Room | One-site visit | Institution | 18 institutions including AVIC Trust | ||
| 2021-05-28 | Company Conference Room | By phone | Institution | Black Rock Asset Management | ||
| 2021-05-31 | Company Conference Room | One-site visit | Institution | CCB International | ||
| 2021-06-01 | Company Conference Room | One-site visit | Institution | 15 institutions including China Mobile Capital Holding Co., Ltd. | www.cninfo.com.cn | |
| 2021-06-02 | Company Conference Room | One-site visit | Institution | Taikang Asset Management | ||
| 2021-06-08 | Company Conference Room | One-site visit | Institution | Seven institutions including Allianz GI |
BOE Technology Group Co., Ltd. Annual Report 2021
| 2021-06-08 | Company Conference Room | By phone | Institution | Xingyin Investment | ||
| 2021-06-09 | Company Conference Room | By phone | Institution | FIL Investment Management (Hong Kong) Limited | ||
| 2021-06-09 | Company Conference Room | One-site visit | Institution | Huaxia Wealth Management, Huaxia Bank | ||
| 2021-06-10 | Company Conference Room | One-site visit | Institution | UG INVESTMENT ADVISERS LTD | ||
| 2021-06-10 | Company Conference Room | One-site visit | Institution | Huatai Securities Co., Ltd. | ||
| 2021-06-16 | Company Conference Room | One-site visit | Institution | Nine institutions including Silk Road Fund Co., Ltd. | ||
| 2021-06-25 | Company Conference Room | One-site visit | Institution | 28 other institutions including CICC Capital Operation Co., Ltd. | Main content: 1. Performance results and major operating information of the Company; 2. Answer questions from investors. Materials provided: public materials including Annual Report 2020, First Quarterly Report 2021. | www.cninfo.com.cn |
| 2021-06-29 | Company Conference Room | One-site visit | Institution | Seven institutions including Fosun Hi-tech | ||
| 2021-07-05 | Company Conference Room | One-site visit | Institution | Ten institutions including Jiangxi Copper Corporation Ltd. | ||
| 2021-07-13 | Company Conference Room | By phone | Institution | 117 institutions including Bofa | Main content: 1. Performance results and major operating information of the Company; | www.cninfo.com.cn |
| 2021-07-14 | Company Conference Room | By phone | Institution | Five institutions including Manulife |
BOE Technology Group Co., Ltd. Annual Report 2021
| 2021-07-14 | Company Conference Room | By phone | Institution | Guangzhou Gongkong Capital Management Co., Ltd., Huaying Securities | 2. Answer questions from investors. Materials provided: public materials including Annual Report 2020, First Quarterly Report 2021, Performance Forecast for H1 2021 | |
| 2021-07-14 | Company Conference Room | One-site visit | Institution | Six institutions including Beijing Win Integrity Investment Management Co., L td. | ||
| 2021-10-29 | Company Conference Room | By phone | Institution | 117 institutions including Bofa | Main content: 1. Performance results and major operating information of the Company; 2. Answer questions from investors. Materials provided: public materials including Annual Report 2020, First Quarterly Report 2021, Interim Report 2021, Third Quarterly Report 2021 | www.cninfo.com.cn |
| 2021-12-07 | Company Conference Room | By phone | Institution | Mobius Capital | ||
| 2021-12-14 | Company Conference Room | By phone | Institution | Black Rock Asset Management |
BOE Technology Group Co., Ltd. Annual Report 2021
Part IV Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting PeriodThe Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance forListed Companies, etc., and requirements of Guidelines of the Main-Board for the Standardized Operation of Companies, tocontinuously improve the corporate governance of the Company, to perfect internal control system as well as to promote corporategovernance level of the Company.During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with therequirement of related laws and Company rules and regulations perform their obligations; ensure the standardization andeffectiveness of corporate governance. During the Reporting Period, the Company revised the Articles of Association and Rules ofProcedure of the Board and newly set up Financing Business Management System, Implementing Rules for the Enterprise AnnuityPlan Further promote the standardization of the corporate governance level. During the Reporting Period, the Company continued topromote the Company’s governance in many ways. Actively arranged the Company's new directors, supervisors to join specialtraining organized by the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propagandainside the Company. The Company preserved the related party fund transaction, external guarantee and regularly self-inspection ofthe shareholding and its changes of the directors, supervisors and senior executives, through maintaining and perfecting the ShenzhenStock Exchange Investors Interactive Platform to strengthen the communication of the investors.In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliancewith various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegalrelated-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow theconcept of “honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws andregulations. The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile,on the basis of ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internetvoting for minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevantlaws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and nobehaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulationsand the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They allperformed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept aconstant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They
BOE Technology Group Co., Ltd. Annual Report 2021
also took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientificdecision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles ofAssociation and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors,namely, the Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and AuditCommittee. The Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of dutyperformance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevantmatters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior managementstaffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rightsof the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance withthe Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’sactivities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Main-Board for theStandardized Operation of Companies, Companies Publicly Issuing Securities Information Disclosure Standards on the Contents andFormats No.2 - Content And Format of the Annual Report, the Articles of Association and Management Methods for InformationDisclosure and other requirements, the Company disclosed information in a timely and fair manner and ensured the factuality,accuracy and completeness of the information disclosed.The Company places great emphasis on communication with investors and has set up a dedicated team for investor relations. Itmaintains active interaction with investors by means of shareholder meetings, online performance presentations, investor open days,the SZSE online interactive platform called Hudongyi, investor hotlines and investor mailboxes. It also engages in communicationwith investors, answers their questions, heeds their suggestions, and facilitates the exercise of shareholders' rights. The Companyaims to promote the open, transparent, efficient and consistent communication between the Company, investors and analyst ofsecurities, made them known more about the strategy, operation and development of the Company. As unremitting effort was madeto establish the investor relations communication platform, the Company innovated and developed the investor relations mini APP.While the communication will become more convenient between the investor and the Company via the digital platform, thecompliance and fairness of the investor relations work can also be guaranteed. In terms of investor protection, the Company uses acombination of online and offline means to strengthen its publicity and education efforts for investors. The Company has opened upnew media channels such as "Weibo, WeChat and news apps" and released publicity information of activities such as "NationalInvestor Protection Promotion Day". The "Investor Protection" column is set up under the "Investor Relations" section of theCompany's official website, and a series of articles on investor education are released in conjunction with hot topics. In addition, theCompany cooperates with brokerage firms and provides educational lectures and training to investors, which are well received byinvestors
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period, based on the development demand, the Company revised some governance systems which had beendisclosed on Cninfo and details were presented in the following table:
| Disclosure date | Name of system | Established/Revised |
| 13 April 2021 | Composition and Rules of Procedure for Execution Committee under the Board of Directors | Revised |
13 April 2021
| 13 April 2021 | Measures for Administration of External Investments | Revised |
BOE Technology Group Co., Ltd. Annual Report 2021
| 14 December 2021 | Articles of Association | Revised |
Indicate by tick market whether there is any material in-compliance with laws, administrative regulations and the regulatorydocuments issued by the CSRC governing the governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller inBusiness, Personnel, Asset, Organization and Financial AffairsThe Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production andbusiness departments and management system, the Company had the capability to make its own decisions, assume sole responsibilityfor its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operatingmanagement team. Chief of Executive Committee, President, Chief Financial Officer, Secretary of the Board as well as other seniormanagement staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive anyremuneration in the controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independentlyowned the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets likeland use rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated anyassets of the Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and theactual controller, with independent and sound organs and corporate governance structure. The Company had not handled any officialaffairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between thecontrolling shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company hadalso formulated a standard and independent finance accounting system as well as financial measurement system, established thecorporate financial management archives and deployed relevant administrative personnel for them, opened independent account inbank, and paid tax independently.III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Meeting resolutions |
BOE Technology Group Co., Ltd. Annual Report 2021
| The 1st Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 36.16% | 26 January 2021 | 27 February 2021 | The following proposals were deliberated and approved, i.e. Proposal on the Company's Compliance with the Conditions for Non-public Offering of A Shares, Proposal on the Program of the Company's Non-public Offering of A Shares, Proposal on Preliminary Plan for the Company's Non-public Offering of A Shares in 2021, Proposal on Feasibility Analysis Report on the Use of Funds Raised from the Company's Non-public Offering of A Shares in 2021, Proposal on the Signing of the Conditional Subscription Agreement for the Company's Non-public Offering of A Shares and Related Transactions between the Company and Jingguorui Fund, Proposal on the Non-requirement to Prepare a Report on the Use of Previously Raised Funds, Proposal on the Company's Dividend Return Plan for Shareholders for the Next Three Years (2021-2023), Proposal of the Company on the Risk Warning and Remedies for Diluted Immediate Returns due to Non-public Offering of A Shares, Proposal on the Commitments of Directors, Senior Management, Controlling Shareholders and de facto controllers of the Company regarding the Remedies for Diluted Immediate Returns Due to the Company's Non-public Offering of A Shares in 2021, Proposal to Approve the Audit Report and Asset Appraisal Report in Connection with the Non-public Offering, Proposal on Independence of Appraisal Institution, Reasonableness of Appraisal Assumptions, Relevance of Appraisal Methodology to the Purpose of Appraisal and Fairness of Appraisal Pricing, Proposal to Request the Company's General Meeting to Authorize the Board of Directors to Handle Specific Matters of the Non-public Offering of A Shares. |
| The 2020 Annual General Meeting | Annual General Meeting | 32.33% | 18 May 2021 | 19 May 2021 | The following reports and proposals were deliberated and approved, i.e., Report on the Work of the Board of Directors for 2020, Report on the Work of the Board of Supervisors for 2020, Full Annual Report and Summary for 2020, Financial Final Report for 2020 and Business Plan for 2021, Proposal for the Distribution of Profits for 2020, Proposal on Borrowing and Credit Line, Proposal |
BOE Technology Group Co., Ltd. Annual Report 2021
| on the Development of Capital Guaranteed Wealth Management and Structured Deposit Business, Proposal on the Intended Appointment of an Audit Agency for 2021, Proposal for the Election of Mr. Zhang Xinmin as an Independent Director of the Ninth Session of the Board of Directors. | |||||
| The 2nd Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 20.53% | 16 September 2021 | 17 September 2021 | The Proposal on the Repurchase and Write-off of Certain Restricted Shares was deliberated and approved. |
| The 3rd Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 21.66% | 14 December 2021 | 15 December 2021 | The Proposal on the By-election of Non-Independent Directors of the Ninth Session of the Board of Directors of the Company, the Proposal on the By-election of Supervisors of the Ninth Session of the Board of Supervisors of the Company, and the Proposal on the Amendment of the Articles of Association of the Company were deliberated and approved. |
BOE Technology Group Co., Ltd. Annual Report 2021
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting Rights
□ Applicable √ Not applicable
V Directors, Supervisors and Senior Management
1. Basic Information
| Name | Office title | Incumbent/Former | Gender | Age | Start of tenure | End of tenure | Beginning shareholding (share) | Stock options | Number of granted restricted shares (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Other increase/decrease (share) | Ending shareholding (share) | Reason for change |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Incumbent | Male | 56 | 28 June 2019 | 27 June 2022 | 2,900,000 | 0 | 2,000,000 | 0 | 0 | 0 | 2,900,000 | N/A |
| Pan Jinfeng | Vice Chairman of the Board | Incumbent | Male | 42 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | Incumbent | Male | 57 | 28 June 2019 | 27 June 2022 | 2,480,000 | 0 | 1,800,000 | 0 | 0 | 0 | 2,480,000 | N/A |
| Song Jie | Director | Incumbent | Male | 54 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Yun | Director, member of Executive Committee, | Incumbent | Female | 52 | 28 June 2019 | 27 June 2022 | 1,989,481 | 0 | 1,500,000 | 0 | 0 | 0 | 1,989,481 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| Executive vice president, CFO | ||||||||||||||
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, CEO of the Display Business | Incumbent | Male | 46 | 28 June 2019 | 27 June 2022 | 1,860,700 | 0 | 1,500,000 | 0 | 0 | 0 | 1,860,700 | N/A |
| Ye Feng | Director | Incumbent | Male | 56 | 14 December 2021 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Hu Xiaolin | Independent director | Incumbent | Male | 43 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Li Xuan | Independent director | Incumbent | Male | 53 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Tang Shoulian | Independent director | Incumbent | Male | 69 | 30 May 2020 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Zhang Xinmin | Independent director | Incumbent | Male | 59 | 18 May 2021 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Yang Xiangdong | Chairman of the Supervisory Committee | Incumbent | Male | 60 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Fuqing | Supervisor | Incumbent | Male | 48 | 14 December 2021 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wei Shuanglai | Supervisor | Incumbent | Male | 54 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Chen Xiaobei | Supervisor | Incumbent | Female | 49 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Shi Hong | Supervisor | Incumbent | Female | 39 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| Xu Yangping | Employee supervisor | Incumbent | Male | 47 | 28 June 2019 | 27 June 2022 | 35,000 | 0 | 0 | 0 | 0 | 0 | 35,000 | N/A |
| He Daopin | Employee supervisor | Incumbent | Male | 52 | 28 June 2019 | 27 June 2022 | 32,600 | 0 | 0 | 0 | 0 | 0 | 32,600 | N/A |
| Yan Jun | Employee supervisor | Incumbent | Male | 50 | 28 June 2019 | 27 June 2022 | 32,000 | 0 | 0 | 0 | 0 | 0 | 32,000 | N/A |
| Teng Jiao | Employee supervisor | Incumbent | Male | 39 | 28 June 2019 | 27 June 2022 | 55,200 | 0 | 0 | 0 | 0 | 0 | 55,200 | N/A |
| Yao Xiangjun | Member of Executive Committee, Executive vice president | Incumbent | Male | 44 | 28 June 2019 | 27 June 2022 | 1,265,000 | 0 | 1,000,000 | 0 | 0 | 0 | 1,265,000 | N/A |
| Zhang Zhaohong | Member of Executive Committee, Executive vice president, CEO of LED business | Incumbent | Male | 51 | 28 June 2019 | 27 June 2022 | 1,498,800 | 0 | 1,000,000 | 0 | 0 | 0 | 1,498,800 | N/A |
| Zhong Huifeng | Member of Executive Committee, Executive vice president, Chief Performance Officer | Incumbent | Male | 51 | 28 June 2019 | 27 June 2022 | 1,310,000 | 0 | 1,000,000 | 0 | 0 | 0 | 1,310,000 | N/A |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead | Incumbent | Female | 49 | 28 June 2019 | 27 June 2022 | 1,360,000 | 0 | 1,000,000 | 0 | 0 | 0 | 1,360,000 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| counsel | ||||||||||||||
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | Incumbent | Male | 51 | 28 June 2019 | 27 June 2022 | 1,057,000 | 0 | 750,000 | 0 | 0 | 0 | 1,057,000 | N/A |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | Incumbent | Male | 48 | 28 June 2019 | 27 June 2022 | 758,800 | 0 | 650,000 | 0 | 0 | 0 | 758,800 | N/A |
| Zhang Yu | Vice president, Chief Reform and IT Management Officer, Chief Human Resource Officer | Incumbent | Male | 51 | 22 March 2021 | 27 June 2022 | 751,600 | 0 | 634,000 | 0 | 0 | 0 | 751,600 | N/A |
| Liu Hongfeng | Vice president, Secretary of the Board | Incumbent | Male | 43 | 22 March 2021 | 27 June 2022 | 1,024,500 | 0 | 750,000 | 0 | 0 | 0 | 1,024,500 | N/A |
| Wang Chenyang | Director | Former | Male | 52 | 28 June 2019 | 15 October 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Li Yantao | Director | Former | Male | 40 | 28 June 2019 | 24 November 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Huacheng | Independent director | Former | Male | 58 | 28 June 2019 | 18 May 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Jing | Director | Former | Female | 50 | 14 December | 17 March 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| 2021 | ||||||||||||||
| Xu Tao | Supervisor | Former | Male | 57 | 28 June 2019 | 24 November 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | N/A |
| Total | -- | -- | -- | -- | -- | -- | 18,410,681 | 0 | 13,584,000 | 0 | 0 | 0 | 18,410,681 | -- |
Indicate by tick mark whether any directors or supervisors left or any senior management were disengaged during the Reporting Period
√ Yes □ No
1. Mr. Wang Huacheng, an independent director of the Company, resigned from his position as an independent director and other positions of the relevant committees of the Board of Directorsas he had served as an independent director of the Company for six consecutive years. He would not hold any position in the Company after his resignation. After Mr. Wang Huacheng resignedfrom his position as an independent director, the number of independent directors on the Board of Directors of the Company was three, which did not satisfy the ratio of one-third representationof the independent directors on the Board of Directors, therefore, Mr. Wang Huacheng would continue his duties as an independent director and serve the relevant committees of the Board ofDirectors until a new independent director was elected at the General Meeting of the Company on 18 May2021.
2. The Board of Directors of the Company received a resignation letter from Mr. Wang Chenyang, a non-independent director of the Company, on October 15, 2021. Mr. Wang Chenyangsubmitted his resignation as a non-independent director of the Company and related positions of the special committee of the Board of Directors due to work arrangement, and will not hold anyposition in the Company after his resignation.
3. The Board of Directors of the Company received a resignation letter from Mr. Li Yantao, a non-independent director of the Company, on 24 November 2021. Mr. Li Yantao submitted hisresignation as a non-independent director of the Company and related positions of the special committee of the Board of Directors due to work arrangement, and will not hold any position in theCompany after his resignation.
4. The Board of Supervisors of the Company received the resignation from Supervisor Mr. Xu Tao on 24 November 2021. Mr. Xu Tao submitted his resignation as a supervisor of the Companydue to work arrangement, and will not hold any position in the Company after his resignation.
BOE Technology Group Co., Ltd. Annual Report 2021
Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Wang Huacheng | Independent director | Left for term expiration | 18 May 2021 | Left for term expiration |
| Zhang Xinmin | Independent director | Elected | 18 May 2021 | Elected |
| Wang Chenyang | Director | Left | 15 October 2021 | Resign |
| Li Yantao | Director | Left | 24 November 2021 | Resign |
| Xu Tao | Supervisor | Left | 24 November 2021 | Resign |
| Wang Jing | Director | Elected | 14 December 2021 | Elected |
| Ye Feng | Director | Elected | 14 December 2021 | Elected |
| Sun Fuqing | Supervisor | Elected | 14 December 2021 | Elected |
| Wang Jing | Director | Left | 17 March 2022 | Resign |
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors andsenior managementDirectorMr. Chen Yanshun, Master of Economics, senior accountant, he had served in the Company from the year of 1993, has taken theposts of Secretary of the Board of the 1
st
Board of Directors of the Company, Secretary of the 2
ndBoard of Directors and VicePresident, Executive Director of the 3
rd Board of Directors and Senior Vice President, Executive Director of the 4
th,
thand the 6
th
Board of Directors and President, and Vice Chairman of the 7
th
Board of Directors and President, Vice Chairman of the 8
th
Board ofDirectors, Chairman of Executive Committee (CEO), Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd,and Chairman of the Board of many subordinate subsidiaries such as Hefei BOE Optoelectronics Technology Co., Ltd. andChongqing BOE Optoelectronics Technology Co., Ltd.Now he takes the posts of Chairman of the 9
thBoard of Directors of the Company and Chief of Executive Committee, BOEOptoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd. and BOE Technology (Hong Kong) Co., Ltd., ViceChairman of Beijing BOE Investment Development Co., Ltd., Chairman of the Board of Beijing Kechuang Intelligent TechnologyDevelopment Co., Ltd. and BOE Smart Technology Co., Ltd. Meanwhile, he serves as Vice Chairman of China InformationTechnology Industry Federation（CITIF）, Vice Chairman of China Optics & Optoelectronics Manufactures Association（COEMA）,Chairman of China Optics & Optoelectronics Manufactures Association LCB（CODA）, Chief Supervisor of The Listed CompaniesAssociation of Beijing, and was awarded as National Model Worker in 2020 and honored as the Economic Figure of the Year byChina News Weekly in 2021.
Mr. Pan Jinfeng, senior management, MBA, senior economist. He once acted as a staff and a staff of Corporate PlanningDepartment of Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Manager, Manager of OperationDepartment, Manager of Zhaowei Building Project Department, Assistant of GM, Deputy GM, GM of Zhaowei IndustrialCorporation of Beijing Zhaowei Electronics (Group) Co., Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group)Co., Ltd., Deputy Secretary of Party Committee, Director, GM of Beijing Yiheng Electronics Group Co., Ltd., Assistant of GM and
BOE Technology Group Co., Ltd. Annual Report 2021
Deputy GM of Beijing Electronics Holding Co., Ltd.Now, he acts as the Vice Chairman of the 9
thBoard of Directors of the Company, Secretary of CPC, Director and GM of BeijingElectronics Holding Co., Ltd. & Deputy Chairman of the Board of NAURA Technology Group Co., Ltd., Chairman of the Board ofBeijing Electronic Zone High-Tech Group Co.,Ltd. and BE New Energy Technology (Jiangsu) Co., Ltd., Director of BeijingElectronics Holding & SK Technology Co., Ltd. and Chairman of the Board of Beijing Integrated Circuit Equipment InnovationCenter Co. Ltd. and BE Aisite (Jiangsu) Technology Co., Ltd. & Vice Chairman of Beijing Youth Federation and Chairman ofBeijing Electronic Chamber of Commerce.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. Hesuccessively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.,Ltd., Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOEVision-electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., DeputyChairman of the Board of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of TPV Display Technology (China)Limited and Fuzhou BOE Optoelectronics Technology Co., Ltd., Chairman of the Board of Beijing BOE Sensor Technology Co.,Ltd., Director of the 7
th Board of Directors, Executive Vice President, COO, Director of the 8
thBoard of Directors, Deputy Chairmanof Executive Committee, President & COO of the Company.Now he takes the posts of Vice Chairman of the 9
th
Board of Director, President, Deputy Chairman of Executive Committee of theCompany, Chairman of Mianyang BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd.,Wuhan BOE Optoelectronics Technology Co., Ltd., Yunnan Chuangshijie Optoelectronics Technology Co., Ltd., and Fuzhou BOEDisplay Technology Co., Ltd., Executive Director of Beijing BOE Technology Development Co., Ltd. and Director of Hefei BOEDisplay Technology Co., Ltd.
Ms. Wang Jing, BA in Finance, LLM, MBA, Senior Economist. Previously, she served as a clerk in the Securities Department andDeputy Director of the Securities Office of Beijing Lightbus Corp. Ltd., a cadre in the Comprehensive Department of BeijingMunicipal Economic Reform Commission, Assistant Manager and Deputy Manager of Financing Department of Beijing EnterprisesHolding Limited (Hong Kong headquarter), Manager of Enterprise Management Department of Beijing Holdings InvestmentManagement Limited, Deputy General Manager of Beijing Jingtai Investment Management Center of Jingtai Group, Manager ofEnterprise Management Department of Jingtai Group, Assistant General Manager of Jingtai Group, Chairman and General Managerof Lugang International Logistics Co., Ltd., General Manager of Investment Management Department of Beijing State-ownedCapital Operation and Management Center, Deputy General Manager of Beijing State-owned Capital Operation and ManagementCenter, Director of the Ninth Session of the Board of Directors of the Company.Currently, she is a Deputy General Manager of Beijing State-owned Capital Operation and Management Company Limited (formerlyBeijing State-owned Capital Operation and Management Center), a Director of Beijing Jingguorui Investment ManagementCompany Limited, a Director of Beijing Equity Investment Development and Management Company Limited, a Supervisor ofBeijing Municipal Government Investment Guidance Fund Management Company Limited, a Supervisor of Beijing Guoyi HospitalCompany Limited.
Mr. Song Jie, Senior Economist, MBA of Peking University, Countries travelled visiting scholar of University of Sydney from Feb,2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation, Officer ofProject examination and approval of Beijing Economic and Technological Development Zone Management Committee, Officer ofForeign Investment Service Center, the Director of Yi Da Tong Paging Center, Deputy General Manager of Chinese Human GenomeResearch Center, Beijing (SinoGenoMax Co., Ltd.), Project Manager of East Zone Sewage project of Beijing Yizhuang Investment
BOE Technology Group Co., Ltd. Annual Report 2021
Holdings Co., Limited, Director of the 7
th
Board of Directors of the Company, Director of the 8
thBoard of Directors of the Company.Now he is the Director of the 9
th
Board of Directors of the Company, GM of Beijing Yizhuang Investment Co., Limited.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of FinanceDepartment of the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8
th
Board of Directors,Director of Erdos Yuansheng Optoelectronics Co., Ltd., Beijing BOE Video Technology Co., Ltd., Beijing BOE Multimedia Scienceand Technology Co., Ltd., BOE Health Investment Management Co., Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd.and Supervisor of Beijing Orient Vacuum Electric Co., Ltd.Now she is Director of the 9
thBoard of Directors, Member of Executive Committee, Executive Vice President and CFO of theCompany, Director of Beijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Director of BOE SmartTechnology Co., Ltd., Chairman of the Board of BOE Innovation Investment Co., Ltd.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003 and served as SectionChief, Head of Product Technology, Deputy Director of Technology, Executive Deputy General Manager of BOE, General Managerof TPC SBU, and General Manager of Chongqing BOE Display Technology Co., Ltd.He is currently a Director, a member of the Executive Committee, and Executive Vice President of the Ninth Session of the Board ofDirectors, Chief Executive Officer of the Display Business, Executive Director and Chairman of the Board of Directors of BOEVaritronix Limited, and Chairman of Beijing Zhongxiangying Technology Co., Ltd.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong MachineryFactory, a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice Presidentof Beijing Beiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of BeijingDahua Radio Instrument Company, Ltd.He is currently a Director of the Ninth Session of the Board of Directors, a full-time Director assigned by Beijing Electronic HoldingCo., Ltd., a Director of Beijing Zhaowei Electronics (Group) Co., Ltd., and a Director of NAURA Technology Group.
Independent DirectorMr. Hu Xiaolin, doctor, associate professor of Tsinghua University, artificial intelligence professor, used to be the independentdirector of the 8th Board of Directors of the Company.Now he serves as the Independent Director of the 9th Board of Directors of the Company and Hefei Chipmore Technology Co., Ltd,Editorial Board Member of IEEE Transactions on Image Processing and Cognitive Neurodynamics.
Mr. Li Xuan, Doctor of Law, Associate Professor, was formerly the Deputy Director of the Law Department of Central Universityof Finance and Economics, Deputy Dean of the Law School and Director of the Office of Legal Affairs; government legal advisor ofthe National Mine Safety Administration; Independent Director of China Minzu Securities Co., Ltd. and China Shengmu OrganicMilk Limited. (Listed in Hong Kong Exchanges and Clearing Limited), Independent Director of the 8
thBoard of Directors of theCompany.He is currently an Independent Director of the Ninth Session of the Board of Directors of the Company, an Independent Director ofBeijing Yandong Microelectronics Company Limited, an Independent Director of Beijing Dabeinong Technology Group Co., Ltd.,an Independent Supervisor of China National Building Material Co., Ltd. (listed on the Hong Kong Stock Exchange), Chief ofCentral University of Finance and Economics Master of Laws (J.M) Education Center, Executive Dean of Public Policy-MakingResearch Center of China University of Political Science and Law, Deputy Chief of Committee for Social and Legal Affairs of
BOE Technology Group Co., Ltd. Annual Report 2021
Beijing Municipal Committee of the CDL, vice chairman of Case Study Association of China Law Society, Executive Director ofLawyer Law Research Institute, a people's supervisor of Beijing and part-time arbitrator and lawyer.
Mr. Tang Shoulian, professor, holds a master's degree.He has served as Director of Finance Office, Dean of School of Management and Humanities, Secretary of Party Committee ofSchool of Economics and Management, Executive Dean of School of Economics and Management, and Standing Committee ofAcademic Committee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications(BUPT). He has served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry andInformation Technology, a permanent member of the Chinese Association of Market Development, a standing member of theInformation Law Research Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, astanding member of the Commerce Statistical Society of China, and a reviewer of the Management Science Department of theNational Natural Science Foundation of China.He is currently an Independent Director of the 9
thBoard of Directors.
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of theUniversity of International Business and Economics, and a member of CPC's Standing Committee and Vice President of theUniversity of International Business and Economics.He is currently an Independent Director of the Ninth Session of the Board of Directors of the Company, an Independent Director ofMinmetals Development Co., Ltd., an Independent Director of Fudian Bank Co., Ltd., an Independent Director of PomegranateInvestment Group Limited, an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoralsupervisor of the International Business School at the University of International Business and Economics, a member of the BusinessAdministration Discipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the ChinaCommercial Accounting Institute, and an expert who enjoys special allowance from the State Council.
SupervisorMr. Yang Xiangdong, postgraduate. He once worked as chief of Technology Security Section, minister of Sales Department andminister of Materials Department in Beijing TV Accessories Third Factory, Deputy GM of Beijing Jile Electronics Group Co., Ltd.,Deputy GM of Beijing Sevenstar Electronics Co., Ltd., and Deputy GM of Beijing North Microelectronics Co., Ltd., Chairman of the8th Supervisory Committee (convener),Now he serves as the Chairman of the 9th Supervisory Committee, assigned full-time Chairman of Supervisory Committee of BeijingElectronics Holdings Co., Ltd., Chairman of Supervisory Committee of Beijing Zhaowei Electronic (Group) Co., Ltd., Chairman ofSupervisory Committee of Beijing Seven Star Huadian Technology Group Co., Ltd., Chairman of Supervisory Committee ofKingstronic (Beijing) Limited, Supervisor of Beijing Electronics Holding & SK Technology Co., Ltd., Supervisor of BeijingElectronics New Energy Technology (Jiangsu) Co., Ltd. and supervisor of BEST, Supervisor of Beijing Electronic InformationTechnician College.
Mr. Sun Fuqing, Master of Engineering, Senior Accountant. He was formerly Assistant Financial Manager of Beijing C & WElectronics (Group) Co., Ltd., Manager of Finance Department of Beijing Tianlong Co., Ltd., Deputy Chief of Finance Departmentof Beijing Electronics Holding Co., Ltd., Vice Dean of Beijing Information Technology College, CFO of Beijing Dahua RadioInstrument Factory, Deputy Party Secretary, Director and General Manager of Beijing Yiheng Electron Group Co., Ltd., and DeputyDirector of Adjustment Guarantee Center of Beijing Electronics Holding Co., Ltd.He is currently a Supervisor of the Ninth Session of the Board of Supervisors of the Company, Chief Controller of FinancialManagement Department of Beijing Electronics Holdings Limited, and is also a Director of Beijing Electric Control Jiuyi Industrial
BOE Technology Group Co., Ltd. Annual Report 2021
Development Company Limited, Chairman and General Manager of Beijing BOE Investment Development Company Limited, and aDirector of Beijing Capitel Co., Ltd.
Mr. Wei Shuanglai, MBA, senior Engineer. He once acted as a staff of Beijing BBEF Electronics Group Co., Ltd., deputy directorof Technology Center, director of General Labor Office, Deputy GM of Beijing BBEF Digital Broadcasting and Television Co., Ltd.,president assistant & minister of Television Department, Executive President & Strategic Director, Deputy GM & ExecutivePresident, Deputy Secretary of Party Committee, Director, GM in Beijing BBEF Science & Technology Co., Ltd., Vice Minister ofTechnology Industry Department, Minister of Market Department, Head of Smart Equipment and System Business Department andOperations Management Department in Beijing Electronics Holding Co., Ltd. and Deputy GM of Beijing Zhaowei Electronics(Group) Co., Ltd.Now, he acts as the Supervisor of the 9
thSupervisory Committee of the Company, Director of Special Business Department ofBeijing Electronics Holding Co., Ltd. & Director of Beijing Zhaowei Electronics (Group) Co., Ltd.and Beijing Dahua ElectronicInstrument Corporation
Ms. Chen Xiaobei, bachelor, economist. She once acted as deputy director of general office, director of General Office (PartyCommittee Office), Board Secretary and Supervisor in Hefei Construction and Investment Holding (Group) Co., Ltd.Now, she acts as the Supervisor of the 9
thSupervisory Committee of the Company, Member of the Party Committee, Director,Deputy GM and Board Secretary in Hefei Construction and Investment Holding (Group) Co., Ltd.
Ms. Shi Hong, Master of Economics, Senior Economist, Supervisor of the 7
thSupervisory Committee of the Company, Supervisor ofthe 8
th
Supervisory Committee of the Company.Now he is the Supervisor of the 9
thSupervisory Committee of the Company, Vice GM and Director of Beijing Yizhuang InvestmentCo., Ltd. & Chairman of the Board of Yizhuang Equity Investment Fund Management (Tianjin) Co., Ltd., Vice Chairman of theBoard of Schneider (Beijing) LV Appliance Co.,Ltd., Member of Investment Decision Committee of China Reform FundManagement Co., Ltd. Director of Beijing Jinyuan Jingkai Limited Liability Company for Sewage Treatment and Supervisor ofBeijing Boda Xinyuan House Real Estate Development Co., Ltd..
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s LegalDepartment, and Employee Supervisor of the 7
th
Supervisory Committee of the Company, Employee Supervisor of the 8
th
Supervisory Committee of the CompanyNow he acts as Employee Supervisor of the 9
th
Supervisory Committee of the Company, Chief of the Group’s Legal Center, SeniorChief Officer and the Director of Board of Directors of Gaochuang (Suzhou) Electronics Co., Ltd, Director of Beijing BOE EnergyTechnology Co., Ltd., Director of Orient Chengqi (Beijing) Business Technology Co., Ltd., Nanjing BOE Display Technology Co.,Ltd., Qingdao BOE Smart Technology Co., Ltd., Chengdu BOE Smart Technology Co., Ltd., Chongqing BOE Smart TechnologyCo., Ltd., Suzhou BOE Smart Technology Co., Ltd., Yunnan BOE Smart Technology Co., Ltd., Shenzhen BOE Smart TechnologyCo., Ltd., Guangzhou BOE Smart Technology Co., Ltd., BEHC Industrial Investment Co., Ltd. and Erdos BOE Energy InvestmentCo., Ltd., Supervisor of BOE Smart Technology Co., Ltd., BOE Innovation Investment Co., Ltd., Tianjin BOE InnovationInvestment Co., Ltd., Beijing BOE Vacuum Electric Appliance Co., Ltd., Beijing BOE Technology Development Co., Ltd., BOEJingxin Technology Co., Ltd., Hefei BOE Ruisheng Technology Co., Ltd., BOE Digital Technology Co., Ltd., Beijing BOE ZhiweiBiological Technology Co., Ltd., BOE Smart Technology Co., Ltd, BOE Environmental Energy Technology Co., Ltd., Hefei BOENursing Hospital Co., Ltd. and BOE Smart Internet Hospital (Chengdu) Co., Ltd.
Mr. He Daopin, master. He once worked as Production Supervisor, Purchasing Supervisor, Financial Manager, Vice General
BOE Technology Group Co., Ltd. Annual Report 2021
Manager of Beijing Oriental Aristocratic Paper Co., Ltd., Vice General Manager, General Manager of Industrial Gas UnderwritingCompany of Business Department of Park of the Company, Management Representative of Business Department of Park, Chief ofHR and Administrative Department, Chief of Property Department and Chief of Labor Union, Deputy Chief, Chief of Party MassWork Department of the Company, Corporate Cultural Center, Employee Supervisor of the 8
th
Supervisory Committee of theCompany,He now serves as Employee Supervisor of the 9
thSupervisory Committee of the Company, Head of the North China RegionalCorporate Culture Center, Chairman of Labor Union and Secretary of Committee for Discipline Inspection of Beijing BOE DisplayTechnology Co., Ltd. & Chief of Corporate Culture of the Display BG, Chief of Corporate Culture of Beijing BOE DisplayTechnology Co., Ltd. and Vice Chairman of Labor Union of the Group.
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister ofCorporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd. andDeputy Director of General Office of the Group.Now he acts as the Employee Supervisor of the 9
thSupervisory Committee, Deputy Head of Party Mass/Corporate Culture Center,Deputy Secretary of Discipline and Inspection Committee, Deputy Chairman of Labor Union in the Company.
Mr. Teng Jiao, bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department, Minister ofPerformance Analysis of the Company and Minister of Accounting Department of Beijing BOE Display Technology Co., Ltd.,Director of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd., Beijing BOE HealthTechnology Co., Ltd. and Hefei BOE Hospital Co., Ltd., Supervisor of Beijing BOE CHATANI Electronics Co.,Ltd. and NanjingBOE Information Technology Co., Ltd.Now, he acts as the Employee Supervisor of the 9
th
Supervisory Committee, Head of Finance Organization Accounting TaxationCenter, Senior Director of the Company, Director of Beijing BOE Vacuum Electric Co., Ltd., Director of Beijing BOE MatsushitaColor CRT Innovation Co., Ltd., Chengdu BOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou)Electronics Co., Ltd., BOE Optical Science and Technology Co., Ltd. and BOE Environmental Energy Technology Co., Ltd.
Senior ManagementMr. Yao Xiangjun, MBA, Chinese CPA. He once worked as Minister and Chief Inspector of Financing Departmentof the Company, CFO of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Business Planning Center, ChiefStrategic Officer of the Company, CEO of Intelligent System Business Group, Chairman of the Board of Beijing BOE VideoTechnology Co., Ltd., Hefei BOE Video Technology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOEOptical Science and Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd. and BOE Smart IoTTechnology Co., Ltd.Now he serves as member of Executive Committee, Executive Vice President of the Company, Director of SES-imgotag, andChairman of the Board of BOE Yiyun Technology Co., Ltd., and BOE Smart Retail (Hong Kong) Co., Limited.
Mr. Zhang Zhaohong, bachelor of inorganic nonmetallic materials, engineer. He joined in the Company in 1992, he once worked asCEO of the Display BG of BOE, Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd., Chengdu BOEOptoelectronics Technology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Erdos Yuansheng Optoelectronics Co., Ltd.,and Fuzhou BOE Optoelectronics Technology Co., Ltd., Director of Wuhan BOE Optoelectronics Technology Co., Ltd., Chairman ofthe Board of Beijing BOE Display Technology Co., Ltd., Chairman of the Board of BOE Health Investment Management Co., Ltd.,Beijing BOE Health Technology Co., Ltd. and BOE Hyundai LCD Inc.Now he serves as the member of Executive Committee, Executive Vice President and CEO of the MLED BG, Chairman of the Board
BOE Technology Group Co., Ltd. Annual Report 2021
of BOE Jingxin Technology Co., Ltd.
Mr. Zhong Huifeng, Master Degree, awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever tookposts of Securities Affairs Representative and Manager of Security Department of the 2
nd
Board of Directors, Secretary to the Boardof the 3
rd, 4
th and 5th Board of Directors of the Company, Employee Supervisor of the 6
thSupervisory Committee and EmployeeSupervisor of the 7
thSupervisory Committee, Supervisor of Beijing Orient Top Victory Electronics Co., Ltd.. and Vice Secretary ofthe CPC, Secretary of Discipline Inspection Commission, Principal of Labor Union, CHO of the Company and President of BOEUniversity, Member of the Third National Committee of China’s Defense of Posts and Telecommunications Union.Now he acts as member of Executive Committee, Executive Vice President and Chief Performance Officer of the Company, Directorof Beijing BOE Investment Development Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of LegalAffairs Department of the Company, and as Secretary of the 5
th and 6thBoard of Directors.Now she is member of Executive Committee, Executive Vice President, Chief Counsel and Director of Beijing BOE Land Co., Ltd.and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Xie Zhongdong, Master, CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si WaterConservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C, Chief andDeputy Auditor of Auditing & Supervision Division of the Company, Vice Chief and Chief of Auditing & Supervision Division ofBeijing BOE Optoelectronics Technology Co., Ltd.Now he acts as member of Executive Committee, Senior Vice President, Chief Audit Officer and Chief Risk Control Officer of theCompany & Vice President of Beijing Internal Audit Association, Supervisor of Beijing BOE Optoelectronics Technology Co., Ltd.,Beijing BOE Display Technology Co., Ltd., Erdos Yuansheng Optoelectronics Co., Ltd., Chongqing BOE OptoelectronicsTechnology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Chengdu BOE Optoelectronics Technology Co., Ltd.,Chongqing BOE Display Technology Co., Ltd., Beijing BOE Sensor Technology Co., Ltd., Beijing BOE Video Technology Co.,Ltd., Gaochuang (Suzhou) Electronics Co., Ltd., Hefei BOE Video Technology Co., Ltd. and BOE Health Investment ManagementCo., Ltd., Hefei BOE Display Technology Co., Ltd., Fuzhou BOE Optoelectronics Technology Co., Ltd., Nanjing BOE DisplayTechnology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOE Optical Science and Technology Co., Ltd.,Beijing BOE CHATANI Electronics Co.,Ltd., Nanjing BOE IT Co., Ltd., Hefei BOE Display Light Sources Co., Ltd., ChongqingBOE Display Lighting Co., Ltd., BOE Smart IoT Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd.,Hefei BOE Hospital Co., Ltd., Chengdu BOE Hospital Co., Ltd., Beijing BOE Health Technology Co., Ltd., BOE RegenerativeMedical Technologies Co. Ltd., Suzhou BOE Hospital Co., Ltd., Beijing BOE Life Technology Co., Ltd., Beijing BOE Hospital Co.,Ltd., Beijing BOE Marketing Co., Ltd., BOE Indonesia Co., Ltd. and Beijing BOE Living Technology Co., Ltd.
Mr. Miao Chuanbin, Master degree, once worked as Manager of Market Department Beijing Wireless Power Plant PutaiTechnology Company, Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plan,Deputy General Manager of Beijing Ether-led Electronic Group Co., Ltd., Secretary of Party Committee Work Department,Enterprise Minister of Culture of Beijing Electronics Holdings Co., Ltd, Employee Supervisor of the 7
thSupervisory Committee ofthe Company, Employee Supervisor of the 8
thSupervisory Committee of the Company,.Now he is the member of Executive Committee, vice president, CCO of the Company, Deputy Secretary of CPC, Secretary of theCommission for Discipline Inspection, Union Chairman of the Company, Deputy Chairman of Beijing Industry (National Defense)Labor Union, member of Beijing Electronic Union, member of Beijing Industrial Movement Theory Research Association and
BOE Technology Group Co., Ltd. Annual Report 2021
member of the Commission for Discipline Inspection in Beijing Electronics Holding Co., Ltd.
Mr. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,General Manager of Hefei Office, Supervisor of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of HefeiXinjingyuan Electronic Materials Co., Ltd.and Hefei BOE Optoelectronics Technology Co., Ltd.He is currently the Vice President, Chief Human Resources Officer and Chief Reform and IT Management Officer of the Companyand Supervisor of Hefei BOE Zhuoyin Technology Co., Ltd. He was awarded the "National Model Worker" in 2020.
Mr. Liu Hongfeng, master. He once worked as the Deputy Chief of the Finance Department of the Company, the Deputy Chief andChief of the BOD Office, the Securities Representative and the Secretary of the 7
thBoard of the Company.Now he is a vice president and the Secretary of the 9th Board of Directors of the Company, as well as a director of Beijing NissinElectronics Precision Component Co., Ltd. and Supervisor of Beijing Yinghe Century Land Co., Ltd.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
| Name | Shareholding entity | Office held in the shareholding entity | Start of tenure | End of tenure | Remuneration or allowance from the shareholding entity |
| Pan Jinfeng | Beijing Electronics Holdings Co., Ltd. | GM | 11 December 2020 | -- | Yes |
| Wang Jing | Beijing State-owned Capital Operation and Management Company Limited | Vice GM | 1 January 2014 | - | Yes |
| Ye Feng | Beijing Electronics Holdings Co., Ltd. | Full-time Director Dispatched | 31 August 2021 | - | Yes |
| Yang Xiangdong | Beijing Electronics Holdings Co., Ltd. | Full-time Chairman of the Supervisory Committee Dispatched | 17 April 2015 | -- | Yes |
| Sun Fuqing | Beijing Electronics Holdings Co., Ltd. | Finance Minister | 24 August 2021 | - | Yes |
| Wei Shuanglai | Beijing Electronics Holdings Co., Ltd. | Minister of Special Business Department | 26 November 2021 | - | Yes |
| Notes to post-holding in shareholder’s unit | The documents for holding the posts of shareholders entities haven’t listed the expiry date. | ||||
Offices held concurrently in other entities:
BOE Technology Group Co., Ltd. Annual Report 2021
√Applicable □Not applicable
| Name | Other entity | Office held in the entity | Start of tenure | End of tenure | Remuneration or allowance from the entity |
| Song Jie | Beijing Yizhuang Investment Co., Ltd. | GM | - | - | Yes |
| Hu Xiaolin | Tsinghua University | Associate professor | -- | -- | Yes |
| Li Xuan | The Central University of Finance and Economics | Post-graduate Tutor | -- | -- | Yes |
| Zhang Xinmin | University of International Business and Economics | Professor, Doctor Advisor | - | - | Yes |
| Chen Xiaobei | Hefei Construction Investment Holding (Group) Co., Ltd. | Director, member of CPC Committee, Deputy GM, Secretary of the Board | - | - | Yes |
| Shi Hong | Beijing Yizhuang Investment Co., Ltd. | Vice GM | - | - | Yes |
| Notes to post-holding in other unit | Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed. | ||||
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior ManagementProposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1
st
Extraordinary GeneralMeeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2million (before tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisorsas well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period, the total after-tax remuneration received by directors, supervisors and senior managers in thecompany amounted to RMB 67.1152 million, and the withholding of individual income tax by the company amounted to RMB
43.5138 million. Allowance for independent directors is RMB0.2 million (before tax) per year in 2021. For details please referred tothe statement below.Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
| Name | Office title | Gender | Age | Incumbent/Former | Total after-tax remuneration received from the Company in 2021 | Individual income tax withheld by the | Any remuneration from related party |
BOE Technology Group Co., Ltd. Annual Report 2021
| Company in 2021 | |||||||
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Male | 56 | Incumbent | 346.12 | 213.70 | No |
| Pan Jinfeng | Vice Chairman of the Board | Male | 42 | Incumbent | 0 | 0 | - |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | Male | 57 | Incumbent | 769.78 | 560.32 | No |
| Song Jie | Director | Male | 54 | Incumbent | 0 | 0 | - |
| Sun Yun | Director, member of Executive Committee, Executive vice president, CFO | Female | 52 | Incumbent | 707.63 | 509.56 | No |
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, CEO of the Display Business | Male | 46 | Incumbent | 846.64 | 621.50 | No |
| Ye Feng | Director | Male | 56 | Incumbent | 0 | 0 | - |
| Hu Xiaolin | Independent director | Male | 43 | Incumbent | 16.00 | 4.00 | - |
| Li Xuan | Independent director | Male | 53 | Incumbent | 16.00 | 4.00 | - |
| Tang Shoulian | Independent director | Male | 69 | Incumbent | 16.00 | 4.00 | - |
| Zhang Xinmin | Independent director | Male | 59 | Incumbent | 9.87 | 2.36 | - |
| Yang Xiangdong | Chairman of the Supervisory Committee | Male | 60 | Incumbent | 0 | 0 | - |
| Sun Fuqing | Supervisor | Male | 48 | Incumbent | 0 | 0 | - |
| Wei Shuanglai | Supervisor | Male | 54 | Incumbent | 0 | 0 | - |
| Chen Xiaobei | Supervisor | Female | 49 | Incumbent | 0 | 0 | - |
| Shi Hong | Supervisor | Female | 39 | Incumbent | 0 | 0 | - |
| Xu Yangping | Employee supervisor | Male | 47 | Incumbent | 188.93 | 86.33 | No |
| He Daopin | Employee supervisor | Male | 52 | Incumbent | 138.73 | 48.30 | No |
| Yan Jun | Employee supervisor | Male | 50 | Incumbent | 109.49 | 25.18 | No |
| Teng Jiao | Employee supervisor | Male | 39 | Incumbent | 231.86 | 121.49 | No |
| Yao Xiangjun | Member of Executive Committee, Executive vice | Male | 44 | Incumbent | 371.54 | 231.55 | No |
BOE Technology Group Co., Ltd. Annual Report 2021
| president | |||||||
| Zhang Zhaohong | Member of Executive Committee, Executive vice president, CEO of LED business | Male | 51 | Incumbent | 371.35 | 234.34 | No |
| Zhong Huifeng | Member of Executive Committee, Executive vice president, Chief Performance Officer | Male | 51 | Incumbent | 541.17 | 373.32 | No |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | Female | 49 | Incumbent | 546.46 | 377.61 | No |
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | Male | 51 | Incumbent | 334.77 | 204.45 | No |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | Male | 48 | Incumbent | 262.20 | 145.07 | No |
| Zhang Yu | Vice president, Chief Reform and IT Management Officer, Chief Human Resource Officer | Male | 51 | Incumbent | 432.20 | 285.38 | No |
| Liu Hongfeng | Vice president, Secretary of the Board | Male | 43 | Incumbent | 448.47 | 297.45 | No |
| Wang Chenyang | Director | Male | 52 | Former | 0 | 0 | - |
| Li Yantao | Director | Male | 40 | Former | 0 | 0 | - |
| Wang Huacheng | Independent director | Male | 58 | Former | 6.31 | 1.47 | - |
| Wang Jing | Director | Female | 50 | Former | 0 | 0 | - |
| Xu Tao | Supervisor | Male | 57 | Former | 0 | 0 | - |
| Total | -- | -- | -- | -- | 6711.52 | 4351.38 | -- |
VI Performance of Duty by Directors in the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Date of the meeting | Disclosure date | Meeting resolutions |
BOE Technology Group Co., Ltd. Annual Report 2021
| The 21st Meeting of the 9th Board of Directors | 2021-01-15 | 2021-01-16 | The following proposals were deliberated and approved, i.e. Proposal on the Company's Compliance with the Conditions for Non-public Offering of A Shares, Proposal on the Program of the Company's Non-public Offering of A Shares, Proposal on Preliminary Plan for the Company's Non-public Offering of A Shares in 2021, Proposal on Feasibility Analysis Report on the Use of Funds Raised from the Company's Non-public Offering of A Shares in 2021, Proposal on the Signing of the Conditional Subscription Agreement for the Company's Non-public Offering of A Shares and Related Transactions between the Company and Jingguorui Fund, Proposal on the Non-requirement to Prepare a Report on the Use of Previously Raised Funds, Proposal on the Company's Dividend Return Plan for Shareholders for the Next Three Years (2021-2023), Proposal of the Company on the Risk Warning and Remedies for Diluted Immediate Returns due to Non-public Offering of A Shares, Proposal on the Commitments of Directors, Senior Management, Controlling Shareholders and de facto controllers of the Company regarding the Remedies for Diluted Immediate Returns Due to the Company's Non-public Offering of A Shares in 2021, Proposal to Approve the Audit Report and Asset Appraisal Report in Connection with the Non-public Offering, Proposal on Independence of Appraisal Institution, Reasonableness of Appraisal Assumptions, Relevance of Appraisal Methodology to the Purpose of Appraisal and Fairness of Appraisal Pricing, Proposal to Request the Company's General Meeting to Authorize the Board of Directors to Handle Specific Matters of the Non-public Offering of A Shares, Proposal on Convening Extraordinary Shareholders’ Meeting. |
| The 22nd Meeting of the 9th Board of Directors | 2021-01-21 | - | Proposal on the Signing of Patent License Agreement was deliberated and approved |
| The 23rd Meeting of the 9th Board of Directors | 2021-01-26 | 2021-01-27 | Proposal on the Transfer of Part of the Equity of Mianyang BOE Optoelectronics Co., Ltd. was deliberated and passed. |
| The 24th Meeting of the 9th Board of Directors | 2021-03-22 | 2021-03-23 | The following proposals were deliberated and approved: Proposal on Investment in High-Generation Thin Film Transistor Liquid Crystal Display (TFT-LCD) Production Line Expansion Project of Wuhan BOE Optoelectronics Co., Ltd., Proposal for the Appointment of Mr. Zhang Yu as a Member of Senior Management, and Proposal for the Appointment of Ms. Su Xuefei as the Representative of Securities Affairs. |
| The 25th Meeting of the 9th Board of Directors | 2021-04-09 | 2021-04-13 | The following reports and proposals were deliberated and approved, i.e., Report on the Work of the Board of Directors for 2020, Report on the Work of the Board of Directors for 2020, Full Annual Report and Summary for 2020, Financial Final Report for 2020 and Business Plan for 2021, Proposal for the Distribution of Profits for 2020, Special Statement on Non-operating Funds Utilization and Other Related Financial Transactions in 2020, Proposal on Estimated Daily Related Transactions for 2021, Proposal for Change in Accounting Policy, Proposal on Borrowing and Credit Line, Proposal on the Development of Capital Guaranteed |
BOE Technology Group Co., Ltd. Annual Report 2021
| Wealth Management and Structured Deposit Business, Special Report on the Deposit and Actual Use of Raised Funds for 2020, Proposal on the Intended Appointment of an Audit Agency for 2021, 2020 Annual Internal Control Evaluation Report, 2020 Annual Corporate Social Responsibility Report, Proposal for Authorizing the Chairman of the Board to Exercise his/her Powers, Proposal for Revising the Composition and Rules of Procedure of the Executive Committee, Proposal for Revising the Management Measures for External Investment, Proposal for the Election of Mr. Zhang Xinmin as an Independent Director of the Ninth Session of the Board of Directors, and Proposal for Holding the 2020 Annual General Meeting of Shareholders. | |||
| The 26th Meeting of the 9th Board of Directors | 2021-04-29 | - | Proposal for Deliberation on the Full Text and Body of the First Quarter Report for 2021 was deliberated and approved. |
| The 27th Meeting of the 9th Board of Directors | 2021-05-13 | - | The following proposals were deliberated and approved: Proposal on Waiver of Pre-emptive Right to Acquire Equity Interests of Chengdu CEC Panda Display Technology Co., Ltd. Held by Chengdu Aerotropolis Xingcheng Construction Management Co., Ltd. |
| The 28th Meeting of the 9th Board of Directors | 2021-05-24 | 2021-05-25 | The following proposals were deliberated and approved: Proposal on Adjustment of the Program of the Company's Non-public Offering of A Shares, Proposal on the Preliminary Plan for the Company's Non-public Offering of A Shares in 2021 (Revised Draft), Proposal on Feasibility Analysis Report on the Use of Funds Raised from the Company's Non-public Offering of A Shares in 2021 (Revised Draft), Proposal on the Signing of the Conditional Subscription Agreement for the Company's Non-public Offering of A Shares and Related Transactions between the Company and Jingguorui Fund, Proposal of the Company on the Risk Warning and Remedies for Diluted Immediate Returns due to Non-public Offering of A Shares (Revised Draft), Proposal to Approve the Audit Report and Asset Appraisal Report in Connection with the Non-public Offering, Proposal on Independence of Appraisal Institution, Reasonableness of Appraisal Assumptions, Relevance of Appraisal Methodology to the Purpose of Appraisal and Fairness of Appraisal Pricing, and Proposal on Election of Members of the Special Committee of the Board of Directors. |
| The 29th Meeting of the 9th Board of Directors | 2021-06-11 | - | Proposal on the Integration of Equity interest in the Sensor and Solution Business was deliberated and approved. |
| The 30th Meeting of the 9th Board of Directors | 2021-07-05 | - | Proposal on the Transfer of 100% Equity Interests in Beijing Ruizhihang Display Technology Co. Ltd. and Related Transactions was deliberated and approved. |
| The 31st Meeting of the 9th Board of Directors | 2021-08-27 | 2021-08-31 | The following proposals were deliberated and approved: Proposal for Deliberation on the Full Text and Summary of the Semi-Annual Report for 2021, Proposal for Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2021, Proposal for Replacing Self-financing Funds |
BOE Technology Group Co., Ltd. Annual Report 2021
| Previously Invested in Fund-raising Projects with Raised Funds, Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, Proposal for the Repurchase and Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on the Awarding of Reserved Stock Options to Incentive Objects, Proposal on the Repurchase of Part of the Company's Shares from the Public, Proposal on Investment in Beijing Yandong Microelectronics Company Limited and Related Transactions, Proposal on Investment in BOE IoT Mobile Display Port Device Production Base Project, and Proposal for Convening the Second Extraordinary General Meeting in 2021. | |||
| The 32nd Meeting of the 9th Board of Directors | 2021-09-24 | - | The following proposals were deliberated and approved: Proposal on the Remuneration and Appraisal results of the Chairman of the Executive Committee of the Company in 2020, and Proposal on Prepayment of Deposit to Novatek Microelectronics. |
| The 33rd Meeting of the 9th Board of Directors | 2021-10-28 | 2021-10-29 | The following proposals were deliberated and approved: Proposal on Deliberation on the Third Quarter Report of 2021, and Proposal on Investment in the Project of Chengdu Vehicle Display Base of BOE. |
| The 34th Meeting of the 9th Board of Directors | 2021-11-01 | - | The following proposals were deliberated and approved: Proposal on the Company's Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee in 2021, and Proposal on the Investment Project for the Production Expansion of Corresponding F1 Products of BOE in Mianyang. |
| The 35th Meeting of the 9th Board of Directors | 2021-11-25 | 2021-11-26 | The following proposals were deliberated and approved: Proposal on the By-election of Non-Independent Directors of the Ninth Session of the Board of Directors of the Company, Proposal on the Amendment of the Articles of Association of the Company, and Proposal for Convening the Third Extraordinary General Meeting in 2021. |
| The 36th Meeting of the 9th Board of Directors | 2021-12-28 | 2021-12-29 | The Proposal on the Intended Participation in the Establishment of Beijing Jingguoguan Equity Investment Fund (Limited Partnership) and Related Transactions was deliberated and approved. |
2. Attendance of Directors at Board Meetings and General Meetings
| Attendance of directors at board meetings and general meetings | |||||||
| Director | Total number of board meetings the director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings (yes/no) | General meetings attended |
| Chen Yanshun | 16 | 2 | 14 | 0 | 0 | No | 4 |
| Pan Jinfeng | 16 | 0 | 15 | 1 | 0 | No | 0 |
| Liu Xiaodong | 16 | 2 | 14 | 0 | 0 | No | 3 |
| Wang Jing | 1 | 0 | 1 | 0 | 0 | No | 0 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Song Jie | 16 | 0 | 15 | 1 | 0 | No | 0 |
| Sun Yun | 16 | 1 | 14 | 1 | 0 | No | 3 |
| Gao Wenbao | 16 | 2 | 14 | 0 | 0 | No | 2 |
| Ye Feng | 1 | 0 | 1 | 0 | 0 | No | 0 |
| Hu Xiaolin | 16 | 1 | 15 | 0 | 0 | No | 3 |
| Li Xuan | 16 | 1 | 15 | 0 | 0 | No | 4 |
| Tang Shoulian | 16 | 1 | 15 | 0 | 0 | No | 4 |
| Zhang Xinmin | 9 | 0 | 9 | 0 | 0 | No | 3 |
| Wang Chenyang | 12 | 1 | 11 | 0 | 0 | No | 0 |
| Li Yantao | 14 | 1 | 13 | 0 | 0 | No | 3 |
| Wang Huacheng | 7 | 1 | 6 | 0 | 0 | No | 1 |
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
√ Yes □ No
Suggestions from directors adopted or not adopted by the CompanyThe Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of theCompany to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governancestructure. The Company's Board of Directors is composed of four executive directors, four non-executive directors, and fourindependent directors. All of them are equipped with good professional background, and necessary knowledge, skills and quality tofulfill their responsibilities. They learned about and kept a constant focus on BOE’s production and operation, financial status, andinfluence and risks of significant events. They also took the initiative to search for information needed in their decision-making so asto ensure efficient operation and scientific decision-making of the Board of Directors. The executive directors of the Company areresponsible for the operations management of the Company. They understand the business and operational status of the Company,and with rich management experience, they can make decisions efficiently. Non-executive directors are shareholder directors. As thecommunication bridge between shareholders and the management of the Company, they can combine the suggestions of shareholderswith long-term interests of the Company, and participate in the decision-making process of significant events of the Company toprotect the interests of shareholders. Independent directors are experts and scholars in the fields of technology, finance, law, and etc.They can express their opinions and views according to their expertise and advantages. During the Reporting Period, in accordancewith Company Law, Securities Law, Stock Listing Rules, Guidance on Establishing Independent Director System for ListedCompanies, Articles of Association, Rules of Procedure for the Board of Directors and Independent Director Policy, directors of theCompany paid special attention to the standardized operation of the Company, performed their duties diligently, issued much
BOE Technology Group Co., Ltd. Annual Report 2021
precious professional advice in terms of the perfection of policies and routine operating decision-making, etc., and issued theirindependent and fair opinions as independent directors on the related-party transactions, engagement of audit firm, dividend plan,recruitment of senior management, and other events needing their opinions occurred in the Reporting Period, as well as played theirdue roles in perfecting the supervisory mechanism of the Company, protecting the legal right of the Company and the wholeshareholders.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
| Committee | Members | Number of meetings convened | Convened date | Content | Important opinions and suggestions raised | Other information about the performance of duty | Details about issues with objections (if any) |
| Strategy Committee under Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Liu Xiaodong, Ms. Sun Yun, Mr. Gao Wenbao | 17 | 2021-01-05 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-01-11 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A | |||
| 2021-01-15 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A | |||
| 2021-03-11 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board | -- | -- | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| for review, etc. | ||||
| 2021-03-30 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-04-19 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-04-26 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-05-14 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-05-31 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-06-24 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board | -- | -- | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| for review, etc. | ||||
| 2021-08-17 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-09-14 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-10-28 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-11-01 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-11-15 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A |
| 2021-11-18 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board | -- | -- | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| for review, etc. | |||||||
| 2021-12-17 | Working out the operating strategies of the Company, planning its significant investment and financing projects, monitoring its major operation activities and other matters to be reported to the Board for review, etc. | -- | -- | N/A | |||
| Risk Control and Audit Committee under Board of Directors | Convener (Director): Mr. Wang Huacheng; Members: Mr. Song Jie, Mr. Li Xuan, Mr. Li Yantao, Mr. Tang Shoulian | 3 | 2021-02-01 | The periodic reports of the Company, internal control, financial auditing, risk management and auditing supervision, etc. | -- | -- | N/A |
| 2021-03-31 | The periodic reports of the Company, internal control, financial auditing, risk management and auditing supervision, etc. | -- | -- | N/A | |||
| 2021-04-19 | The periodic reports of the Company, internal control, financial auditing, risk management and auditing supervision, etc. | -- | -- | N/A | |||
| Convener (Director): Mr. Zhang Xinmin; Members: Mr. Song Jie, Mr. Li Xuan, Mr. Li Yantao, Mr. Tang Shoulian | 2 | 2021-08-17 | The periodic reports of the Company, internal control, financial auditing, risk management and auditing supervision, etc. | -- | -- | N/A | |
| 2021-10-18 | The periodic reports of the Company, internal control, financial auditing, risk management and auditing supervision, etc. | -- | -- | N/A | |||
| Nomination & Remuneration & Appraisal Committee under Board of Directors | Convener (Director): Mr. Li Xuan; Members: Mr. Wang Chenyang, Mr. Wang Huacheng, Mr. Hu Xiaolin, Mr. Tang Shoulian | 2 | 2021-02-18 | Matters related to equity incentive, election of directors and engagement of senior management, etc. | -- | -- | N/A |
| 2021-03-29 | Matters related to equity incentive, election of directors and engagement of senior management, etc. | -- | -- | N/A | |||
| Convener (Director): Mr. Li Xuan; | 2 | 2021-08-12 | Matters related to equity incentive, election of directors and engagement of senior management, | -- | -- | N/A |
BOE Technology Group Co., Ltd. Annual Report 2021
| Members: Mr. Wang Chenyang, Mr. Hu Xiaolin, Mr. Tang Shoulian, Mr. Zhang Xinmin | etc. | |||||
| 2021-09-07 | Matters related to equity incentive, election of directors and engagement of senior management, etc. | -- | -- | N/A | ||
| Convener (Director): Mr. Li Xuan; Members: Mr. Hu Xiaolin, Mr. Tang Shoulian, Mr. Zhang Xinmin | 2 | 2021-10-18 | Matters related to equity incentive, election of directors and engagement of senior management, etc. | -- | -- | N/A |
| 2021-11-03 | Matters related to equity incentive, election of directors and engagement of senior management, etc. | -- | -- | N/A |
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the ReportingPeriod.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.V Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent at the period-end | 2,462 |
| Number of in-service employees of major subsidiaries at the period-end | 56,315 |
| Total number of in-service employees | 79,461 |
| Total number of paid employees in the Reporting Period | 79,461 |
| Number of retirees to whom the Company as the parent or its major subsidiaries need to pay retirement pensions | 14 |
| Functions | |
| Function | Employees |
| Production | 48,675 |
| Sales | 2,644 |
| Technical | 24,745 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Financial | 775 |
| Administrative | 274 |
| Manager | 1,895 |
| Other | 453 |
| Total | 79,461 |
| Educational backgrounds | |
| Educational background | Employees |
| Doctor | 394 |
| Master | 8,893 |
| Bachelor | 20,656 |
| College | 23,089 |
| Technical secondary school | 10,141 |
| Other | 16,288 |
| Total | 79,461 |
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to theexternal competitive compensation and internal fairness, strengthening the control of the group as well as considering the differenceamong all business groups and subsidiaries.
3. Employee Training Plans
Since its establishment in 2015, BOE University (BOEU) has been adhering to the philosophy of "education before career", tappingand developing excellent cultural and wisdom assets to help various professionals grow. It has been cultivating a new generation ofprofessional executives and business leaders, focusing on improving organizational performance and promoting the achievement ofcorporate strategic goals. BOEU is committed to providing targeted training programs for the Group's industrialists, professionals,managers and leaders, and helping BOE share its corporate philosophy and culture with similar SMEs, upstream and downstreamindustrial chain and eco-chain partners to achieve mutual benefits and win-win results. After six years of efforts, BOEU is steadilyexploring and developing towards the vision of "becoming an internationally competitive and respectable industrial university".In 2021, BOEU formulated a working policy of "innovative breakthrough, organization empowering, promoting strategy, andsynergistic interaction", continuously upgraded and optimized the training project of key talents throughout the year, strengthened thetransformation of the leaders' concepts and accelerated the cultivation of back-up leaders, in order to make ideology and talentpreparation for the implementation of strategic transformation.
1. Innovation on training ways: Innovation and transformation were made on the training method of leaders. Digital coverage andscenario practice were adopted for pilot, which was recognized by the trainees, business leaders and the CHRO organizations;
2. Innovation on teaching mode: BOEU explored a brand-new teaching method. It accumulated experience on teaching method,course and case development, training product and delivery mode, and completed the teaching tasks by adopting multiple modesincluding the combination of training and practice, the combination of cultivation and evaluation, online, the combination of onlineand offline, and case study, so as to meet the needs of diversified training.
BOE Technology Group Co., Ltd. Annual Report 2021
3. Accumulation of intellectual capital. Through the building of discipline system such as the building of internal teaching team,independent courses, and case pool of BOE, the internal and external resources were flexibly used to mutually make up theirdeficiencies, which laid a solid foundation on implementing the concept of "let the most excellent person cultivate more excellentpersons", and achieved the extraction and flexible use of intellectual assets.
4. Output of the influence of cultural values: The top-up programme and benchmark visiting programme of University of ElectronicScience and Technology of China were conducted. Meanwhile, the cooperation and communication with partners of industrial chainsand university-enterprise alliances were deepened, so as to deliver the influence of cultural values of the Company, and promote themutual development, innovation and win-win result with the partners of industrial chains and global ecological partners.
4. Labor Outsourcing
□ Applicable √ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□ Applicable √ Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that theCompany has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders arepositive.
□ Applicable √ Not applicable
Final dividend plan for the Reporting Period
√ Applicable □ Not applicable
| Bonus shares for every 10 shares (share) | 0 |
| Dividend for every 10 shares (RMB) (tax inclusive) | 2.1 |
| Total shares as the basis for the profit distribution proposal (share) | 37,917,560,430 |
| Cash dividends (RMB) (tax inclusive) | 7,962,687,690.30 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 2,427,517,910.23 |
| Total cash dividends (including those in other forms) (RMB) | 10,390,205,600.53 |
| Attributable profit (RMB) | 11,950,975,927 |
| Total cash dividends (including those in other forms) as % of total profit distribution (%) | 130.49% |
| Cash dividend policy adopted | |
| If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends shall be 20% or above. | |
| Details about the proposal for profit distribution and converting capital reserve into share capital | |
| Based on the total shares of 37,917,560,430 after the deduction of shares held through the special account for repurchase, the Company planned to distribute, with the undistributed profit, a cash dividend of RMB2.10 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted into share capital. The said proposal is in | |
BOE Technology Group Co., Ltd. Annual Report 2021
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
√ Applicable □ Not applicable
1. Equity incentive
The Company disclosed the Announcement on the Resolution of the 15
th Meeting of the 9
thBoard of Directors (Announcement No.:
2020-047) and the 2020 Stock Option and Restricted Stock Grant Program and other related announcements on 29 August 2020, inwhich the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. The source of the stock is the Company's A-shares repurchased from the secondary market. Thetotal stock options and restricted stock incentive plan stock interests shall not exceed 981,150,000 shares, including 639,900,000stock options and 341,250,000 restricted stock shares, representing approximately 2.82% of the total 34,798,398,763 shares of theCompany's share capital at the time of the announcement of this draft incentive plan. On 30 October 2020, the Company received theApproval on the Implementation of the Equity Incentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned AssetsSupervision and Administration Commission of People's Government of Beijing Municipality forwarded by Beijing ElectronicsHolding Co., Ltd, the actual controller, and the State-owned Assets Supervision and Administration Commission of People'sGovernment of Beijing Municipality approved in principle the implementation of this incentive plan by the Company. The Companydisclosed the Announcement on the Adjustment of the List of Incentive Subjects and the Number of Equities Granted under the 2020Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-081) and the Announcement on the First Grant ofStock Options and Restricted Shares to Incentive Subjects (Announcement No.: 2020-082) on 22 December 2020 to determine thatthe grant date/authorization date of the Incentive Scheme is 21 December 2020, and 596,229,700 stock options will be granted to1,988 incentive recipients and 321,813,800 restricted shares will be granted to 793 incentive recipients. The Company disclosed theAnnouncement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock Incentive Scheme(Announcement No.: 2020-086) on 31 December 2020. The conditions for the grant under the Incentive Scheme of the Companyhave been fulfilled and the first registration of the grant has been completed. The completion date of the registration of the first grantof options under the Stock Option Incentive Scheme was 25 December 2020. The option ticker was 037100 and the option ticker isEastern JLC1; the listing date of the restricted shares granted was 29 December 2020. The Company disclosed the Announcement onGranting Reserved Stock Option to Incentive Recipients of the 2020 Stock Option and Restricted Stock Incentive Scheme(Announcement No.: 2021-066) on 30 August 2021. The conditions for the granting of reserved stock option under the IncentiveScheme of the Company have been fulfilled. The granting date of the reserved stock option was 27 August 2021, and 33,000,000stock options were granted to 110 incentive recipients. The Company disclosed the Announcement on Completion of Registration ofthe Reserved and Granted Stock Option of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.:
2021-084) on 23 October 2021. The registration of the granting of reserved stock was completed, and the completion date of thisregistration was 22 October 2021. The option code is 037179 and the abbreviation of the option is Eastern JLC2.
BOE Technology Group Co., Ltd. Annual Report 2021
Equity incentives for directors, supervisors and senior management in the Reporting Period:
√Applicable □Not applicable
Unit: share
| Name | Office title | Share options held at the period-begin | Share options granted in the Reporting Period | Shares feasible to exercise during the Reporting Period | Shares exercised during the Reporting Period | Exercise price of exercised shares during the Reporting Period (RMB/share) | Share options held at the period-end | Market price at the period-end (RMB/share) | Number of restricted shares held at the period-begin | Number of released shares for the Reporting Period | Number of restricted shares newly granted during the Reporting Period | The grant price of restricted shares (RMB/share) | Number of restricted shares held at the period-end |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 2,000,000 | 0 | 0 | 0 | 2,000,000 |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,800,000 | 0 | 0 | 0 | 1,800,000 |
| Sun Yun | Director, member of Executive Committee, Executive vice president, CFO | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,500,000 | 0 | 0 | 0 | 1,500,000 |
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, CEO of the Display Business | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,500,000 | 0 | 0 | 0 | 1,500,000 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Yao Xiangjun | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,000,000 | 0 | 0 | 0 | 1,000,000 |
| Zhang Zhaohong | Member of Executive Committee, Executive vice president, CEO of MLED Business | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,000,000 | 0 | 0 | 0 | 1,000,000 |
| Zhong Huifeng | Member of Executive Committee, Executive vice president, Chief Performance Officer | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,000,000 | 0 | 0 | 0 | 1,000,000 |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 1,000,000 | 0 | 0 | 0 | 1,000,000 |
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 750,000 | 0 | 0 | 0 | 750,000 |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 650,000 | 0 | 0 | 0 | 650,000 |
| Zhang Yu | Senior Vice president, Chief Human Resource Officer | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 634,000 | 0 | 0 | 0 | 634,000 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Liu Hongfeng | Vice President, Secretary of the Board | 0 | 0 | 0 | 0 | 0 | 0 | 5.05 | 750,000 | 0 | 0 | 0 | 750,000 |
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 13,584,000 | 0 | 0 | -- | 13,584,000 |
| Note (if any) | The restricted shares granted to the directors and senior management of the Company are restricted for a period of 24 months, 36 months and 48 months from the grant date of this equity incentive on 21 December 2020. As at the end of the Reporting Period, all equity incentives received by the directors and senior management of the Company were unlocked shares. | ||||||||||||
Appraisal of and Incentive for Senior ManagementAccording to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company areappointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessmentwill be implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets, and the appointmentperiod assessment is based on medium- and long-term targets, and the salary and rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Optionand Restricted Stock Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement ofrelevant conditions.
2. Implementation of Employee Stock Ownership Plans
□ Applicable √ Not applicable
3. Other Incentive Measures for Employees
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The establishment of internal control regulation was carried out according to the requirements of the establishment of internal controlregulation of listed companies and the innovation reform of the second stage of SOPIC of the Company. Meanwhile, digital reformwas synchronized, and the internal control system (three manuals) was revised and perfected, so as to guarantee the implementationof innovation reform and promote the compliance and efficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
| Subsidiary | Integration plan | Integration progress | Problem | Countermeasures taken | Settlement progress | Follow-up settlement plan |
| N/A | - | - | - | - | - | - |
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on InternalControl
1. Internal Control Self-Evaluation Report
| Disclosure date of the internal control self-evaluation report | 31 March 2022 | |
| Index to the disclosed internal control self-evaluation report | On 31 March 2022, the Company disclosed 2021 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details. | |
| Evaluated entities’ combined assets as % of consolidated total assets | 97.52% | |
| Evaluated entities’ combined operating revenue as % of consolidated operating revenue | 95.38% | |
| Identification standards for internal control weaknesses | ||
| Type | Weaknesses in internal control over financial reporting | Weaknesses in internal control not related to financial reporting |
| Nature standard | The nature standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: In case of the following situations, it will be deemed as that major defects (including but not limited to the | Evaluation standards for internal defects not related to financial reporting specified by the Company are as below: Material weakness: (1) The business scope of the Company violates |
BOE Technology Group Co., Ltd. Annual Report 2021
| following situations) may occur: (1) Directors, supervisors and Senior Management make the malpractices; (2) The enterprise corrects the released financial statements; (3) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the process of operation; (4) Supervision of the risk control and audit committee and the internal audit organization for internal control is ineffective. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the real and accurate objective of the financial report. The common weakness refers to other internal control weaknesses except for material weaknesses and serious weaknesses. | national laws and regulations seriously; (2) The decision-making procedure is not scientific, major decision errors are released, the development strategies of the Company are deviated from severely and major property losses are caused for the Company; (3) Safety and environmental accidents occur, resulting in major negative effects on the Company; (4) A lot of senior management personnel and key technicians leave the Company; (5) Important business lacks system control or the system is failure; (6) Material weaknesses or serious weaknesses are not corrected. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the enterprise to deviate from the control goal. The common weakness refers to other internal control defects except for material weaknesses and Serious weakness. | |
| Quantitative standard | The quantitative standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: The amount reported incorrectly is ≥1‰* total amount of assets of the Group (operating revenue) Serious weakness: 0.5‰*total amount of assets of the Group (operating revenue)≤ the amount reported incorrectly<1‰*total amount of assets of the Group (operating revenue) Common weakness: 0.1‰*total group assets (operating revenue)≤ the amount reported incorrectly <0.5‰*total group assets (operating revenue) | The quantitative standards for internal control defects not related to financial reporting determined by the Company are consistent with those over the financial reporting. See the left side for details. |
| Number of material weaknesses in internal control over financial reporting | 0 | |
| Number of material weaknesses in internal control not related to | 0 | |
BOE Technology Group Co., Ltd. Annual Report 2021
| financial reporting | |
| Number of serious weaknesses in internal control over financial reporting | 0 |
| Number of serious weaknesses in internal control not related to financial reporting | 0 |
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
| Opinion paragraph in the independent auditor’s report on internal control | |
| We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on 31 December 2021 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations. | |
| Independent auditor’s report on internal control disclosed or not | Disclosed |
| Disclosure date | 31 March 2022 |
| Index to such report disclosed | The Company disclosed the Audit Report on Internal Control on 31 March 2022, for details, please refer to http://www.cninfo.com.cn |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Material weaknesses in internal control not related to financial reporting | No |
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internalcontrol.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internalcontrol self-evaluation report issued by the Company’s Board.
√ Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for ListedCompany Governance
Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection authorities of China.
√ Yes □ No
| Name of polluter | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 63 mg/L | 500 mg/L | 183.073t | 828.418t | None |
| Ammonia nitrogen | 4.2 mg/L | 45 mg/L | 11.888t | 59.173t | |||||
| NMHC | Standard emission after being treated by organic waste gases | 2 | North U third floor roof | 3.03 mg/m? | 10 mg/m? | 1.877t | 311.3t | ||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 134.27mg/L | 500mg/L | 143.96t | 607.66t | None |
| Ammonia nitrogen | 20.5mg/L | 45mg/L | 21.27t | 54.69t | |||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 42.57mg/L | 380mg/L | 150.74t | 1081.55t | None |
| Ammonia nitrogen | 2.46mg/L | 30mg/L | 8.7t | 101.23t | |||||
| Beijing BOE Display Technology | COD | Standard emission after being | 1 | East gate of factory | 148.5mg/L | 500mg/L | 841.25t | 1570.32t | None |
| Ammonia | 22.92mg/L | 45mg/L | 124.82t | 183.20t |
BOE Technology Group Co., Ltd. Annual Report 2021
| Co., Ltd. | nitrogen | treated by sewage treatment system | |||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast gate of factory | 124mg/L | 350mg/L | 1064.29t | 3135.04t | None |
| Ammonia nitrogen | 14.38mg/L | 35mg/L | 149.51t | 313.50t | |||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 71.7mg/L | 500mg/L | 96.11t | 713.81t | None |
| Ammonia nitrogen | 0.91mg/L | 45mg/L | 1.27t | 76.82t | |||||
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 48.40mg/L | 500mg/L | 187.34t | 6383.16t | None |
| Ammonia nitrogen | 6.99mg/L | 45 mg/L | 25.43t | 574.48t | |||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 94.02mg/L | 400mg/L | 427.11t | 1900.24t | None |
| Ammonia nitrogen | 4.47mg/L | 30mg/L | 20.14t | 146.17t | |||||
| Hefei BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 95.7mg/L | 400mg/L | 395.21t | 4759.56t | None |
| Ammonia nitrogen | 11.25mg/L | 35mg/L | 47.45t | 416.46t |
BOE Technology Group Co., Ltd. Annual Report 2021
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 91.96 mg/L | 500 mg/L | 66.27t | 510.35t | None |
| Ammonia nitrogen | 6.42 mg/L | 45 mg/L | 1.59t | 68.05t | |||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 24.47mg/L | 500mg/L | 95.54t | 6911.3775t | None |
| Ammonia nitrogen | 2.82mg/L | 45mg/L | 11t | 364.6771t | |||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast corner of factory | 54.99mg/l | 500mg/L | 558.11t | 5074.33t | None |
| Ammonia nitrogen | 2.75mg/L | 45mg/L | 27.87t | 456.69t | |||||
| Nanjing BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 136.6mg/L | 500mg/L | 914.58t | 2215.01t | None |
| Ammonia nitrogen | 5.4mg/L | 45mg/L | 35.33t | 183.67t | |||||
| Chengdu CEC Panda Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 101.25mg/L | 500mg/L | 588.57t | 4310.1t | None |
| Ammonia nitrogen | 12.39mg/L | 45 mg/L | 72.33t | 148.8t | |||||
| BOE (Hebei) Mobile Display Technology Co., Ltd. | COD | Discharged into sewage treatment plant through municipal pipes | 1 | North side of factory | 157.45mg/L | 500mg/L | 11.892t | 88.491t | None |
| Ammonia nitrogen | 6.11mg/L | 45mg/L | 0.632t | 7.754t |
BOE Technology Group Co., Ltd. Annual Report 2021
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 89.25mg/L | 500mg/L | 5.525t | 43.271t | None |
| Ammonia nitrogen | 6.34mg/L | 45mg/L | 0.365t | 4.681t |
Construction of pollution prevention equipment and operation conditionDuring the Reporting Period, the Company did not have any serious environmental problems. The Company builds soundenvironment management systems and establishes the environment management organizations to supervise the overall environmentperformance of the Company, work out the environment management objectives and related systems, conduct regular supervisionand instruction for the environment management of subordinate companies and push forward the implementation of environmentmanagement.Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial wastewater and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separatelyaccording to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water iscollected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Householdwaste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water isdischarged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and theconcentration and total amount of drainage satisfy the requirements of national and local relevant standards.In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas duringproduction process, generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc.Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission concentration andtotal amount satisfy the national and local relevant standards.“4R concept” for the use of materials has been used by the Company, that is recycle (Recycle), reduction (Reduce), renewal (Renew)and responsibility (responsibly). The Company promises that the used materials are all in accordance with requirements of nationalrelevant environmental regulations and the registration, assessment, permission and restriction system of chemicals. In additional, theCompany promotes the recycle of package materials constantly. The waste materials which are generated by each subordinateenterprise can be divided into general industrial solid waste, hazardous waste materials and household waste materials, and they allhanded over to qualified recycler for regular treatment. The disposal rate of hazardous waste materials is 100%.The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted forprocessing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemicaland other materials maximally and reducing the discharge of waste water and waste materials.At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollutionmanagement standard, hazardous waste materials management standard, energy management standard etc. The methods specify theoperation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervisingmechanism, in order to ensure the continuous stable operation of each system.In recent years, the environmental emission index of the Company is up to national standards such as Sewage ComprehensiveDischarge Standard, Air Pollutant Comprehensive Emission Standard, Industrial Enterprise Environmental Noise Emission Standardwithin Factory Boundary, etc and local standards. The Company will continue to promote the environmental management, devote toforging green factory and improve environmental management level constantly.Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental Protection
BOE Technology Group Co., Ltd. Annual Report 2021
At present, corresponding environmental impact assessments have been conducted for all construction projects under the control ofthe Company in conformity with applicable national and local laws and regulations, and corresponding administrative licenses havealso been obtained.Contingency Plan for Emergent Environmental IncidentsThe Company has formulated, updated and filed corresponding contingency plan for emergent environmental incidents in localenvironmental protection departments according to their requirements. However, such contingency plan consists of comprehensiveplan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous wastes anddangerous chemicals etc. Meanwhile, drills must be conducted regularly.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have beenpublished via Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s officialwebsite.Administrative penalties imposed for environmental issues during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment information that should be disclosedNoMeasures taken to decrease carbon emission in the Reporting Period and corresponding effects
√ Applicable □ Not applicable
The Company has set up a "Peak Emission" and "Carbon Neutrality" project team (including leading group, working group) and thepromotion groups of undertakings and organizations to clarify the composition of personnel and organizational responsibilities. Theon-site plant achieves the goal of energy-saving and emission reduction through the operation of the energy management system andthe incentive energy-saving program through refined management on the energy management platform. Results of energy-saving andemission reduction: The number of energy-saving and emission reduction projects was 301 in total in 2021. As at the end ofDecember, 198.2339 million kWh of electricity, 5.6848 million tons of water, 0.2993 million cubic meters of natural gas, 4.7905million cubic meters of nitrogen, and 4,536.48 million KJ of vapor had been saved.Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, BOE Beijing Factory takes the lead inimplementing carbon trading, actively carrying out carbon emission trading, CCER replacement quota and other work, to effectivelyincrease carbon reserves. In 2021, Beijing BOE Optoelectronics Technology Co., Ltd. actively responded to the appeal of the country,and completed carbon neutrality of partial areas of the powerhouse by conducting energy-saving technique improvement project,refinement management and carbon emission trading.Other related environment protection informationBOE fully considers design for recycling, universal design and minimal design of products in the product design stage, adheres to thegreen management concept of the full life cycle of products, and follows the principles of minimizing energy and resourceconsumption, minimizing the impact on the ecological environment and maximizing the recyclability.In order to reduce the impact of the logistics transportation process on the environment, BOE and its partners constantly improve thetransportation management system, carry out reasonable layout and planning of transportation stations and routes, improve thedelivery efficiency, and reduce greenhouse gas emissions.
BOE Technology Group Co., Ltd. Annual Report 2021
II Social ResponsibilityBOE discloses its Corporate Social Responsibility Report every year. As of 2021, BOE had consecutively disclosed SocialResponsibility Report for 12 years. Please view and download such report via official website of BOE www.boe.com or Cninfo .III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural RevitalizationAfter the comprehensive victory of poverty alleviation, BOE continued to deepen the implementation of the country's ruralrevitalization strategy, and prepared the Programme for Comprehensively Promoting Rural Revitalization of BOE in 2021. It clarifiedthe goals of industrial support, public welfare support, employment support, and consumption support. At the same time, it made fulluse of its advantages to extensively mobilize societal forces to participate, and strong joint forces to intensify and expand theachievements of poverty alleviation and comprehensively push forward rural revitalization was formed.
1. Industrial revitalization: Prosperous industries were developed and upgraded in the light of local conditionsBOE gave full play of its advantages, linked up internal resources, and adopted measures suiting local conditions to promote ruralrevitalization. In terms of helping the villages with weak economy, the Company expanded their channels to increase revenue bydonating photovoltaic power generation projects to them. Besides, it internally selected temporary leaders as the first secretaries topairing villages, so as to be online all the time, have a deep exploration of local conditions, and provide targeted assistance.Meanwhile, BOE also promoted local economic growth by helping upgrade local industries and creating sustainable prosperousindustries.
2. Talent revitalization: The "assistance of will and wisdom" invigorated the talents' vigor
BOE treated the promotion of talent revitalization as one of the main fields to facilitate rural revitalization. It assisted in educationand public welfare, and employed people out of poverty, which continuously stimulated the vigor of talents.In 2021, BOE carried out many education and public welfare projects like "Lighting the Way to Growth". Also, it donated and builtsmart classrooms for 30 township central schools of three counties in Sichuan Province and Hunan Province, and provided smarteducation solutions of BOE for over 6,000 students in remote areas. It promoted rural digital education with technology and tried itsbest to contribute to the education development of poverty-stricken areas, so as to narrow the education gap.In the meantime, relying on its own industries, BOE employed people out of poverty. Also, it made efforts to let more talents in ruralareas have the opportunities to give play to their talent and create the platform to show themselves. To arouse the potential and vigorof talents, BOE promoted employment support continuously. In 2021, through combing internal personnel of enterprises,coordinating with colleges and universities to make recommendations, etc., BOE encouraged enterprises to hire people out ofpoverty, and recruited college students from families out of poverty and specialized talents. Work accounts were also established toensure comprehensive management.
3. Multiple measures were taken concurrently: Both consumption support and public welfare support were indispensableBOE continuously promoted consumption support. In terms of the procurement of agricultural accessory products and directprocurement in pairing assisting areas, the supporting amount was RMB4.4864million. Apart from procurement, BOE activelyperformed its social responsibilities, took various actions to provide public welfare support, donated funds to pairing assisting areas,and provided tuitions for left-behind children and autistic children of single-parent families in pairing assisting areas.
BOE Technology Group Co., Ltd. Annual Report 2021
Part VI Significant EventsI Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other EntitiesFulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | - |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | - |
| Commitments made in time of asset restructuring | - | - | - | - | - | - |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | - |
| Equity incentive commitments | - | - | - | - | - | - |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management | 21 February 2020 | During the term as | Ongoing |
BOE Technology Group Co., Ltd. Annual Report 2021
| Vice Chairman of the Board: Mr. Liu Xiaodong Director: Ms. Sun Yun and Mr. Gao Wenbao Supervisor: Mr. Xu Yangping, Mr. He Daopin, Mr. Yan Jun and Mr. Teng Jiao Senior Management: Mr. Yao Xiangjun, Mr. Zhang Zhaohong, Mr. Zhong Huifeng, Ms. Feng Liqiong, Mr. Xie Zhongdong, Mr. Miao Chuanbin and Mr. Liu Hongfeng | (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the commitment period expires. | director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | ||||
| Executed on time or not | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||||
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within the forecast period, explain why the forecasthas been reached for the Reporting Period.
□ Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” on the Financial Statements
□ Applicable √ Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent Directors (if any) Regarding theIndependent Auditor's “Modified Opinion” on the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
VI YoY Changes to Accounting Policies, Estimates or Correction of Material AccountingErrors
√ Applicable □ Not applicable
On 7 December 2018, the Ministry of Finance (MOF) issued the Notice on Revision and Issuance of the Accounting Standard forBusiness Enterprises No. 21 - Lease (C.K. [2018] No. 35) (hereinafter referred to as "new lease standards"). According to therequirements of the Ministry of Finance, those enterprises that are listed both at home and abroad and those enterprises that are listedoverseas and adopt the International Financial Reporting Standards or the Accounting Standards for Business Enterprises forpreparation of financial statements should implement the standards from 1 January 2019; the other enterprises that adopt theAccounting Standards for Business Enterprises should implement the standards from 1 January 2021. The Company hasimplemented the new lease standards since 1 January 2021, and according to the accumulated number of impacts based on theexecution of the new lease standard, the Company will adjust the retained income and the amount of relevant items in the financialstatements at the beginning of the first year of execution, and will not adjust information for comparable periods.On 2 November 2021, the Ministry of Finance updated the Q&As of the implementation of fixed asset standard. It requires that forroutine repair charge that is not in conformity with subsequent expenditures of fixed asset capitalization, enterprises should recognizeit as profit or loss, or recognize it as the cost of relevant assets by beneficiaries when it occurs according to relevant regulations of theAccounting Standard for Business Enterprises No.1 - Inventory (C.K. [2006] No. 3) and Accounting Standards for BusinessEnterprises No. 4 - Fixed Assets (C.K. [2006] No. 3). Routine repair charge of fixed assets related to the production and processingof inventories shall be processed in accordance with the principles for determining the cost of inventories. The routine repair chargeof fixed assets incurred in administrative departments and selling institutions specially established by enterprises shall be classifiedand recognized as management expense or marketing expense according to the functions. The Company adjusted the data of 2021according to the requirements of Q&As, and made retroactive adjustments to the data in 2020.The above changes in accounting policies will not exert a significant impact on the Company's financial condition, operating resultand cash flow.VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
One subsidiary was established in the current period, that is BOE Mled Technology Co., Ltd. with 100% shareholding.One subsidiary was disposed in the current period, that is Beijing BOE Special Display Technology Co., Ltd. With 100%shareholding at the beginning of the period and 0.00% shareholding at the end of the period.
VIII Engagement and Disengagement of Independent AuditorCurrent independent auditor
| Name of the domestic independent auditor | KPMG Huazhen (LLP) |
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 1,190 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 17 years |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Zhang Huan and Chai Jing |
BOE Technology Group Co., Ltd. Annual Report 2021
| How many consecutive years the certified public accountants from the domestic independent auditor have provided audit service for the Company | Zhang Huan 5 years and Chai Jing 3 year |
| Name of the foreign independent auditor (if any) | N/A |
| The Company’s payment to the foreign independent auditor (RMB’0,000) (if any) | 0 |
| How many consecutive years the foreign independent auditor has provided audit service for the Company (if any) | N/A |
| Names of the certified public accountants from the foreign independent auditor writing signatures on the auditor’s report (if any) | N/A |
| How many consecutive years the certified public accountants from the foreign independent auditor have provided audit service for the Company (if any) | N/A |
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
During the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and theCompany paid KPMG Huazhen (LLP) total compensation of RMB11.9 million for the 2021 annual audit and internal control audit.IX Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
√ Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Litigations for 2021 (including carryforwards in previous years ) | 20,729.84 | No | N/A | N/A | N/A | - | N/A |
XII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2021
XIII Credit Quality of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable √ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in anyother finance business with any related parties.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
NoneIndex to the public announcements about the said related-party transactions disclosed
BOE Technology Group Co., Ltd. Annual Report 2021
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Involvement in Related-party Transaction for Private Placement of A-shares | 16 January 2021 | www.cninfo.com.cn |
| Announcement on the Prediction of 2021 Annual Routine Connected Transaction | 13 April 2021 | www.cninfo.com.cn |
| Announcement on Involvement in Related-party Transaction for Private Placement of A-shares (Revised) | 25 May 2021 | www.cninfo.com.cn |
| Announcement on Investment in Beijing YanDong MicroElectronic Co., Ltd. and Related Transactions | 31 August 2021 | www.cninfo.com.cn |
| Announcement on the Participation in the Establishment of Beijing Jingguoguan Equity Investment Fund (Limited Partnership) and Related Transactions | 29 December 2021 | www.cninfo.com.cn |
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2021
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||||
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 2016-11-30 | 542,448 | 2017-03-15 | 155,455 | Joint-liability | N/A | N/A | 2017-3-17 to 2027-3-17 | Not | Not |
| Chengdu BOE Optoelectronics | 2017-04-24 | 2,219,994 | 2017-08-30 | 2,008,093 | Joint-liability | N/A | N/A | 2017-9-6 to 2029-9-6 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| Technology Co., Ltd. | ||||||||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 2017-04-24 | 450,000 | 2017-07-31 | 39,500 | Joint-liability | N/A | N/A | Opening date of the letter of guarantee to 2026-5-25 | Not | Not |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 2014-07-28 | 1,359,514 | 2014-09-29 | 119,731 | Joint-liability | N/A | N/A | 2014-11-5 to 2024-11-5 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 2016-11-30 | 1,608,158 | 2017-08-30 | 1,052,221 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2017-9-7 to 2027-9-7 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 2015-12-09 | 1,287,089 | 2016-11-08 | 457,666 | Joint-liability | N/A | N/A | 2016-12-19 to 2026-12-19 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 2018-05-18 | 2,054,691 | 2018-09-18 | 1,942,967 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2018-9-26 to 2031-9-26 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 2018-05-18 | 460,000 | 2018-06-22 | 48,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | Opening date of the letter of guarantee to 2027-11-6 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 2020-04-27 | 1,963,503 | 2020-12-29 | 778,595 | Joint-liability | N/A | The secured party provides a counter guarantee for | 2020-12-31 to 2033-12-31 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| the guarantor | ||||||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 2019-03-25 | 1,940,416 | 2019-08-16 | 1,561,416 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2019-8-23 to 2032-8-23 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 2020-09-23 | 180,000 | 2021-05-12 | 135,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-05-12 to 2026-05-31 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 2020-09-23 | 120,000 | 2021-05-12 | 120,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-05-12 to 2026-06-06 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 2020-09-23 | 100,065 | 2021-07-29 | 75,055 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-7-29 to 2025-6-17 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 2020-09-23 | 19,098 | 2021-08-13 | 15,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-8-13 to 2025-4-28 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 2020-09-23 | 10,500 | 2021-12-27 | 10,500 | Joint-liability | N/A | The secured party provides | 2021-12-27 to 2026-8-24 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| a counter guarantee for the guarantor | ||||||||||
| Chengdu BOE Hospital Co., Ltd. | 2020-04-27 | 240,000 | 2020-06-15 | 115,309 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-6-15 to 2042-6-30 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 0 | Total actual amount of such guarantees in the Reporting Period (B2) | -984,171 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 14,555,476 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 8,634,510 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Guangtai Solar Energy Technology (Suzhou) Co., Ltd. | N/A | 5,450 | 2017-12-20 | 3,458 | Joint-liability; pledge | Equity interest | N/A | 2017-12-20 to 2029-4-6 | Not | Not |
| Huanda Trading (Hebei) Co., Ltd. | N/A | 14,600 | 2017-05-24 | 9,097 | Joint-liability; pledge | Equity interest | N/A | 2017-6-15 to 2031-3-16 | Not | Not |
| Yangyuan Photovoltaic Power Generation (Huanggang) Co., Ltd. | N/A | 3,800 | 2020-09-30 | 3,743 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 3,600 | 2020-09-30 | 3,546 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 2,800 | 2020-09-30 | 2,758 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 3,300 | 2020-09-30 | 3,030 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,700 | 2020-09-30 | 1,561 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,100 | 2020-09-30 | 1,010 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Hefei Hexu Technology Co., Ltd. | N/A | 400 | 2020-09-30 | 394 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Hefei Chenneng Technology Co., Ltd. | N/A | 800 | 2020-09-30 | 788 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Rongke New Energy (Hefei) Co., Ltd. | N/A | 1,400 | 2017-12-18 | 1,106 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Tianchi New Energy (Hefei) Co., Ltd. | N/A | 1,100 | 2017-12-18 | 866 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 890 | 2017-12-18 | 675 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 2017-12-18 | 2,238 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 960 | 2017-12-18 | 618 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 2,210 | 2017-12-18 | 1,695 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 2017-12-18 | 1,194 | Joint-liability; pledge | Equity interest | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| Anhui BOE Energy Investment Co., Ltd | N/A | 13,575 | 2017-12-27 | 10,301 | Joint-liability; pledge | Equity interest | N/A | 2017-12-27 to 2032-12-27 | Not | Not |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 300 | 2020-12-03 | 281 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,800 | 2020-12-03 | 1,688 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd. | N/A | 2,500 | 2020-12-03 | 2,345 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Ke’en Solar Energy Power Generation (Pingyang) Co., Ltd. | N/A | 1,600 | 2020-12-03 | 1,501 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 1,400 | 2020-12-03 | 1,313 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 700 | 2020-12-03 | 657 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 12,800 | 2017-10-23 | 12,480 | Pledge | Charging right | N/A | 2017-10-24 to 2032-10-23 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 20,560 | 2018-08-15 | 15,680 | Pledge | Charging right | N/A | 2018-9-26 to 2032-12-21 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 25,418 | 2017-11-28 | 22,018 | Pledge | Charging right | N/A | 2017-12-1 to 2032-12-1 | Not | Not |
| Hengchuang New Energy Technology (Hong’an) Co., Ltd. | N/A | 6,892 | 2018-01-31 | 5,196 | Joint-liability | N/A | N/A | 2018-1-31 to 2033-1-31 | Not | Not |
| Anhui BOE Energy Investment Co., Ltd. | N/A | 2,060 | 2018-04-25 | 1,642 | Joint-liability | N/A | N/A | 2018-4-25 to 2033-4-25 | Not | Not |
| Junlong New Energy Technology (Huaibin) Co., Ltd. | N/A | 8,459 | 2018-04-25 | 6,743 | Joint-liability | N/A | N/A | 2018-4-25 to 2033-4-25 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2021
| Shaoxing Guangnian New Energy Co., Ltd. | N/A | 16,000 | 2018-12-13 | 14,285 | Joint-liability | N/A | N/A | 2018-12-13 to 2033-12-12 | Not | Not |
| Shaoxing Xuhui New Energy Co., Ltd. | N/A | 4,500 | 2018-12-13 | 4,018 | Joint-liability | N/A | N/A | 2018-12-13 to 2033-12-12 | Not | Not |
| Hefei BOE Hospital Co., Ltd. | 2018-04-27 | 130,000 | 2018-04-27 | 114,500 | Joint-liability | N/A | N/A | 2018-4-27 to 2036-4-27 | Not | Not |
| Juhui New Energy (Pinghu) Co., Ltd. | N/A | 1,200 | 2021-10-27 | 1,175 | Joint-liability | N/A | N/A | 2021-10-27 to 2036-10-27 | Not | Not |
| Dinghui New Energy (Zhuji) Co., Ltd. | N/A | 2,100 | 2021-10-27 | 2,056 | Joint-liability | N/A | N/A | 2021-10-27 to 2036-10-27 | Not | Not |
| Juhui New Energy (Shaoxing) Co., Ltd. | N/A | 8,700 | 2021-10-27 | 8,519 | Joint-liability | N/A | N/A | 2021-10-27 to 2036-10-27 | Not | Not |
| Beijing BOE Life Technology Co., Ltd. | N/A | 60,000 | 2021-12-29 | 20,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-29 to 2039-12-28 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 60,000 | Total actual amount of such guarantees in the Reporting Period (C2) | 32,151 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 370,005 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 284,175 | |||||||
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 60,000 | Total actual guarantee amount in the Reporting Period | -952,020 | |||||||
BOE Technology Group Co., Ltd. Annual Report 2021
| (A2+B2+C2) | |||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 14,925,481 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 8,918,685 |
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 62.40% | ||
| Of which: | |||
| Balance of guarantees provided for shareholders, actual controller and their related parties (D) | 0 | ||
| Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) | 39,952 | ||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 1,772,408 | ||
| Total of the three amounts above (D+E+F) | 1,808,936 | ||
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A | ||
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A | ||
Compound guaranteesNone
BOE Technology Group Co., Ltd. Annual Report 2021
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Bank financial products and structured deposit | Self-owned funds | 1,016,100 | 1,000,900 | 0 | 0 |
| Total | 1,016,100 | 1,000,900 | 0 | 0 | |
Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment forentrusted asset management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
√ Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue)(“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October 2019, the issuing scale ofRMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issued renewable corporate bonds (toqualified investors) (the first issue) (epidemic prevention and control bonds) (“20BOEY1” for short; Code: 149046) in 2020 with theissue term from 27 February 2020 to 28 February 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of
3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (the second issue) (epidemic prevention
BOE Technology Group Co., Ltd. Annual Report 2021
and control bonds) (“20BOEY2” for short; Code: 149065) in 2020 with the issue term from 18 March 2020 to 19 March 2020, theissuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.54%. The Company publicly issued the renewablecorporate bonds (to qualified investors) (the third issue) (epidemic prevention and control bonds) (“20BOEY3” for short; Code:
149108) in 2020 with the issue term from 24 April 2020 to 27 April 2020, the issuing scale of RMB2 billion and the bonds’ ultimatenominal interest of 3.50%.The Company disclosed 2021 "20BOEY1" Interest Payment Announcement (Announcement No. 2021-016)on 23 February 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) (epidemicprevention and control bonds) in 2020 was one year old until 27 February 2021. According to the regulations, interest will be paidonce a year during the interest-bearing period. The interest payment plan is RMB36.40 (including tax) per 10 bonds. The Companydisclosed 2021 "20BOEY2" Interest Payment Announcement (Announcement No. 2021-018) on 17 March 2021. BOE PublicIssuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue) (epidemic prevention and control bonds) in 2020was one year old until 18 March 2021. According to the regulations, interest will be paid once a year during the interest-bearingperiod. The interest payment plan is RMB35.40 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY3" InterestPayment Announcement (Announcement No. 2021-035) on 23 April 2021. BOE Public Issuance of Renewable Corporate Bonds (toQualified Investors) (the Third Issue) (pandemic prevention and control bonds) in 2020 was one year old until 27 April 2021.According to the regulations, interest will be paid once a year during the interest-bearing period. The interest payment plan isRMB35.00 (including tax) per 10 bonds. The Company disclosed 2021 "19BOEY1" Interest Payment Announcement (AnnouncementNo. 2021-085) on 26 October 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) in2019 was two years old until 28 October 2021. According to the regulations, interest will be paid once a year during theinterest-bearing period. The interest payment plan is RMB40.00 (including tax) per 10 bonds. The Company disclosed 2022"20BOEY1" Interest Payment Announcement (Announcement No. 2022-006) on 24 February 2022. 27 February 2022 was the secondanniversary of BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) (epidemic preventionand control bonds) issued in 2020. According to the regulations, interest will be paid once a year during the interest-bearing period.The interest payment plan was RMB36.40 (including tax) every ten bonds. The Company disclosed 2022 "20BOEY2" InterestPayment Announcement (Announcement No. 2022-013) on March 17, 2022. March 18, 2022 was the second anniversary of BOEPublic Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue) (epidemic prevention and control bonds)issued in 2020. According to the regulations, interest will be paid once a year during the interest-bearing period. The interest paymentplan was RMB35.40 (including tax) per ten bonds. The Company publicly issued renewable corporate bonds (digital economy) toprofessional investors (the first issue) (“22BOEY1” for short; Code: 149861) in 2022 with the issue term from 24 March 2022 to 25March 2022, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest rate of 3.50%.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in whichthe Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. Thenet fund raised was expected to be no more than 20 billion. The raised funds will be used for "acquisition of 24.06% equity of WuhanBOE Optoelectronics Technology Co., Ltd.", "capital increase to Chongqing BOE Display Technology Co., Ltd. and construction of itsGen-6 AMOLED (flexible) production line project", "capital increase to Yunnan Chuangshijie Optoelectronics Technology Co., Ltd.and construction of its 12-inch silicon OLED project", "capital increase to Chengdu BOE Hospital and construction of Chengdu BOEHospital project", "repayment of Fuzhou Urban Construction Investment Group loan" and supplementation of working capital. On 8July 2021, the Company disclosed the Announcement on the Approval of the China Securities Regulatory Commission for theNon-Public Offering of A-Shares (Announcement No. 2021-054), which tells that the Company received the Reply on Approval of theNon-Public Offering of Shares by BOE Technology Group Co., Ltd. (ZH.J.X.K. [2021] No. 2277) issued by the China SecuritiesRegulatory Commission on 7 July 2021. On 19 August 2021, the Company disclosed the Report on the Non-public Offering ofA-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcement No. 2021-058),along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, which were listed on the
BOE Technology Group Co., Ltd. Annual Report 2021
Shenzhen Stock Exchange on 20 August 2021. On 18 February 2022, the Company disclosed the Suggestive Announcement onRelieving Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2022-005). On February 21, 2022, 2,932,244,165restricted shares of non-publicly offered A shares in 2021 were relieved and could be traded in the market. The number of therelieved restricted shares accounted for 8.5058% of non-restricted shares of the Company, and 7.6270% of the total share capital ofthe Company.
3. On 28 May 2021, the Company disclosed the Announcement on the Implementation of Equity Distribution for the Year 2020(Announcement No.: 2021-049), which tells that the Company's equity distribution plan for the year 2020 has been examined andapproved at the 2020 Annual General Meeting held on 18 May 2021. In the year 2020, the Company distributed profit to allshareholders at a rate of RMB1.00 per 10 shares, based on the deduction of the total capital of 34,770,212,630 shares held by theCompany through the buy-back account (wherein, the profit of B shares was paid by converting RMB into HKD at the central rate ofthe exchange of RMB into HKD published by People's Bank of China on the first business day after the resolution of the GeneralMeeting of the Company), and the Company did not give any bonus shares or increase the capital by the provident fund.
4. On 31 August 2021, the Company disclosed the Announcement No. 2021-060 on the Resolutions of the 31
st Meeting of the 9
th
Board of Directors, the Announcement No. 2021-066 on the Grant of Share Options to Awardees of Reserved Share Options underthe 2020 Share Option and Restricted Share Incentive Plan, and other related announcements. According to the 2020 Share Optionand Restricted Share Incentive Plan (Draft) of BOE Technology Group Co., Ltd., 33,000,000 share options would be granted to 110awardees on 27 August 2021 for the conditions for the grant of the reserved share options under this plan had been met. On 23October 2021, the Company disclosed the Announcement No. 2021-084 on the Transfer of the Ownership of the Reserved ShareOptions under the 2020 Share Option and Restricted Share Incentive Plan. The reserved share options (code: 037179, name: EasternJLC2) were transferred on 22 October 2021.
5. Following the approval of the Proposal on the Repurchase of Some Public Shares at the 31
st Meeting of the 9
thBoard of Directors,the Company disclosed the Announcement No. 2021-067 on the Repurchase of Some Public Shares on 31 August 2021. TheCompany carried out the first repurchase on 2 September 2021 and disclosed the Announcement No. 2021-077 on the FirstRepurchase of Some Public Shares on 3 September 2021. On 5 January 2022, the Company disclosed the Announcement No.2022-005 on Progress of the Repurchase of Some Public Shares. As of 31 December 2021, the Company repurchased a total of460,419,000 A-shares (approximately 1.2275% of the Company’s total A-share capital and 1.1976% of its total share capital) to thespecial securities account for repurchase by way of centralized bidding. With the highest price being RMB5.96/share and the lowestRMB4.89/share, the total payment for this repurchase amounted to RMB2,427,517,910.23 (exclusive of commissions and other fixedcosts). The said repurchase was in compliance with applicable laws and regulations, as well as with the Company’s repurchase planOn 2 March 2022, the Company disclosed the Announcement on the Completed Implementation of Share Repurchase Programmeand Repurchase Implementation Results (Announcement No.: 2022-007). As at 28 February 2022, the Company has implementedthe repurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase, andthe cumulative number of A Shares repurchased was 499,999,919, accounting for approximately 1.3330% of the Company's AShares and 1.3005% of the Company's total share capital, with the highest transaction price of RMB5.96 per share and the lowesttransaction price of RMB4.68 per share. The total amount paid was RMB2,620,105,418.52 (including other fixed expenses such ascommissions). The above repurchase of the Company was in line with the requirements of relevant laws and regulations, as well asthe established repurchase programme of the Company. The total fund of this share repurchase didn't exceed the amount proposed tobe used in the repurchase programme, and the number of shares repurchased has reached the cap of shares under the repurchaseprogramme. So far, this share repurchase has been implemented and completed as planned.
| Overview of significant events | Disclosure date | Index to disclosure website for interim report |
BOE Technology Group Co., Ltd. Annual Report 2021
| Announcement on Intention to Purchasing Some Equity of the Subsidiary Wuhan BOE Optoelectronics Technology Co., Ltd. | 16 January 2021 | www.cninfo.com.cn |
| Announcement on Being Transferred Some Equity of Mianyang BOE Optoelectronics Technology Co., Ltd. | 27 January 2021 | www.cninfo.com.cn |
| Announcement on Investing the Production Line Expansion of Advanced Generation TFT-LCD by Wuhan BOE Optoelectronics Technology Co., Ltd. | 23 March 2021 | www.cninfo.com.cn |
| Announcement on Investment in Beijing YanDong MicroElectronic Co., Ltd. and Related Transactions | 31 August 2021 | www.cninfo.com.cn |
| Announcement on Investment in BOE IoT Mobile Display Port Device Production Base Project | 31 August 2021 | www.cninfo.com.cn |
| Announcement on Investment in the Project of Chengdu Vehicle Display Base of BOE | 29 October 2021 | www.cninfo.com.cn |
| Announcement on the Participation in the Establishment of Beijing Jingguoguan Equity Investment Fund (Limited Partnership) and Related Transactions | 29 December 2021 | www.cninfo.com.cn |
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
Part VII Share Changes and Shareholder InformationI Share Changes
1. Share Changes
Unit: share
| Item | Before | Increase/decrease (+/-) | After | ||||||
| Number | Percentage | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Number | Percentage | |
| I. Restricted shares | 325,345,611 | 0.93% | 3,650,377,019 | 0 | 0 | -3,522,700 | 3,646,854,319 | 3,972,199,930 | 10.33% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 0 | 0.00% | 1,472,764,818 | 0 | 0 | 0 | 1,472,764,818 | 1,472,764,818 | 3.83% |
| 3. Shares held by other domestic investors | 297,364,411 | 0.85% | 1,603,357,266 | 0 | 0 | -2,191,200 | 1,601,166,066 | 1,898,530,477 | 4.94% |
| Among which: Shares held by domestic corporations | 0 | 0.00% | 1,603,357,266 | 0 | 0 | 0 | 1,603,357,266 | 1,603,357,266 | 4.17% |
| Shares held by domestic individuals | 297,364,411 | 0.85% | 0 | 0 | 0 | -2,191,200 | -2,191,200 | 295,173,211 | 0.77% |
| 4. Shares held by foreign investors | 27,981,200 | 0.08% | 574,254,935 | 0 | 0 | -1,331,500 | 572,923,435 | 600,904,635 | 1.56% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 574,254,935 | 0 | 0 | 0 | 574,254,935 | 574,254,935 | 1.49% |
| Shares held by | 27,981,200 | 0.08% | 0 | 0 | 0 | -1,331,500 | -1,331,500 | 26,649,700 | 0.07% |
BOE Technology Group Co., Ltd. Annual Report 2021
| foreign individuals | |||||||||
| II. Non-restricted shares | 34,473,053,152 | 99.07% | 0 | 0 | 0 | 493,400 | 493,400 | 34,473,546,552 | 89.67% |
| 1. RMB ordinary shares | 33,536,939,664 | 96.37% | 0 | 0 | 0 | 493,400 | 493,400 | 33,537,433,064 | 87.23% |
| 2. Domestically listed foreign shares | 936,113,488 | 2.69% | 0 | 0 | 0 | 0 | 0 | 936,113,488 | 2.43% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 34,798,398,763 | 100.00% | 3,650,377,019 | 0 | 0 | -3,029,300 | 3,647,347,719 | 38,445,746,482 | 100.00% |
Reasons for share changes:
√ Applicable □ Not applicable
During the Reporting Period, the Company issued 3,650,377,019 RMB ordinary shares in a non-public manner, and 3,650,377,019 shares subject to trading moratorium of the Company wereadded.During the Reporting Period, the Company repurchased and cancelled 3,029,300 restricted shares that had been authorized to eight incentive recipients but were still locked, resulting in adecrease of 3,029,300 restricted shares of the Company's equity incentive.During the Reporting Period, according to the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange, the legal quota of transferrable shares ofdirectors, supervisors and senior management of the Company shall be re-calculated at the beginning of the year, which resulted in the change of 493,400 shares held by senior managementfrom restricted to non-restricted.During the Reporting Period, the total number of shares increased by 3,647,347,719 shares, among which 3,646,854,319 shares were restricted shares, and 493,400 shares were non-restrictedshares.Approval of share changes:
√ Applicable □ Not applicable
On 7 July 2021, China Securities Regulatory Commission issued the Approval on the Non-Public Offering of Shares by BOE Technology Group Co., Ltd. (Z.J.X.K. [2021] No. 2277), whichapproved the Company's non-public offering of no more than 6,959,679,752 new shares. As confirmed by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited,the non-public offering of shares were officially listed on 20 August 2021, and a total of 3,650,377,019 A Shares were issued.Transfer of share ownership:
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and theprior accounting period, respectively:
√ Applicable □ Not applicable
| Item | January-December 2021 |
| Basic earnings per share (RMB/share) | 0.71 |
| Diluted earnings per share (RMB/share) | 0.71 |
Item
| Item | 31 December 2021 |
| Equity per share attributable to the Company’s ordinary shareholders | 3.39 |
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares increased of the period | Restricted shares relieved of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 0 | 718,132,854 | 0 | 718,132,854 | Private placement | 2023-02-21 |
| Fuqing Huirong Venture Capital Co., Ltd. | 0 | 538,599,640 | 0 | 538,599,640 | Private placement | 2022-02-21 |
| MORGAN STANLEY & CO.INTERNATIONAL PLC. | 0 | 271,095,152 | 0 | 271,095,152 | Private placement | 2022-02-21 |
| Caitong Fund - PSBC - Caitong Fund - No. 1 Asset Management Plan of Bohai Life in Yuquan | 0 | 179,533,214 | 0 | 179,533,214 | Private placement | 2022-02-21 |
| Yiwu Harmonious Jinhong Equity Investment Partnership (L.P.) | 0 | 179,533,213 | 0 | 179,533,213 | Private placement | 2022-02-21 |
| Shandong Haixiang Equity Investment Fund Management Co., Ltd. | 0 | 147,163,387 | 0 | 147,163,387 | Private placement | 2022-02-21 |
| Hongta Securities Co., Ltd. | 0 | 143,626,570 | 0 | 143,626,570 | Private placement | 2022-02-21 |
| JPMORGAN CHASE BANK,NATIONAL ASSOCIATION | 0 | 116,696,588 | 0 | 116,696,588 | Private placement | 2022-02-21 |
| Shanghai Gao Yi Asset Management Partnership (L.P.) - Gao Yi Xiaofeng No. 2 Zhixin Fund | 0 | 107,719,928 | 0 | 107,719,928 | Private placement | 2022-02-21 |
| Haitong Securities Co., Ltd. | 0 | 99,030,520 | 0 | 99,030,520 | Private placement | 2022-02-21 |
| Other non-public offering restricted shareholders | 0 | 1,149,245,953 | 0 | 1,149,245,953 | Private placement | 2022-02-21 |
| Shares locked by senior executives | 3,531,811 | 0 | 493,400 | 3,038,411 | Adjustment of legal quota for transferable | 2021-01-04 |
BOE Technology Group Co., Ltd. Annual Report 2021
| shares | ||||||
| Restricted shares for equity incentive | 321,813,800 | 0 | 3,029,300 | 318,784,500 | Cancellation for equity incentive repurchase | - |
| Total | 325,345,611 | 3,650,377,019 | 3,522,700 | 3,972,199,930 | -- | -- |
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
| Name of Stock and derivative securities thereof | Issue date | issue price (interest) | Issue amount | Listing date | Approved amount for listing | Termination date for trading | Disclosure index | Disclosure date |
| Stock | ||||||||
| Private placement of A-share | 23 July 2021 | RMB5.57 per share | 3,650,377,019 | 20 August 2021 | 3,650,377,019 | - | Report and Listing Announcement of Private Placement of A-Shares of BOE Technology Group Co., Ltd. Disclosed on http://www.cninfo.com.cn/ | 18 August 2021 |
| Convertible corporate bonds, convertible corporate bonds separately traded and corporate bonds | ||||||||
| None | ||||||||
| Other derivative securities | ||||||||
| None | ||||||||
Notes:
On 7 July 2021, China Securities Regulatory Commission issued the Approval on the Non-Public Offering of Shares by BOE Technology Group Co., Ltd. (Z.J.X.K. [2021] No. 2277), whichapproved the Company's non-public offering of no more than 6,959,679,752 new shares. As confirmed by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited,the non-public offering of shares were officially listed on 20 August 2021, and a total of 3,650,377,019 A Shares were issued.
BOE Technology Group Co., Ltd. Annual Report 2021
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
√ Applicable □ Not applicable
During the Reporting Period, the Company repurchased and cancelled 3,029,300 restricted shares that had been authorized to eight incentive recipients but were still locked, resulting in adecrease of 3,029,300 restricted shares of the Company's equity incentive.During the Reporting Period, the Company issued 3,650,377,019 RMB ordinary shares in a non-public manner, resulting in an increase of 3,650,377,019 shares of the Company. During theReporting Period, the total number of shares increased by 3,647,347,719 shares
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
| Number of ordinary shareholders at the period-end | 1,661,753 (including 1,623,582 A-shareholders and 38,171 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,646,433 (including 1,608,539 A-shareholders and 37,894 B-shareholders) | |||||
| 5% or greater shareholders or top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge, marked or frozen | |
| Status | Shar | |||||||
BOE Technology Group Co., Ltd. Annual Report 2021
| es | ||||||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.57% | 4,063,333,333 | 0 | 0 | 4,063,333,333 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 3.56% | 1,368,997,836 | -678,017,783 | 0 | 1,368,997,836 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.14% | 822,092,180 | 0 | 0 | 822,092,180 | N/A | 0 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.87% | 718,132,854 | 718,132,854 | 718,132,854 | 0 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.73% | 666,195,772 | -64,689,645 | 0 | 666,195,772 | N/A | 0 |
| Fuqing Huirong Venture Capital Co., Ltd. | Domestic non-state-owned legal person | 1.40% | 538,599,640 | 538,599,640 | 538,599,640 | 0 | N/A | 0 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | State-owned legal person | 0.85% | 326,229,746 | -343,726,489 | 0 | 326,229,746 | N/A | 0 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | Other | 0.79% | 305,330,128 | 305,330,128 | 89,766,606 | 215,563,522 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.71% | 273,735,583 | 0 | 0 | 273,735,583 | N/A | 0 |
| MORGAN STANLEY & CO. INTERNATIONAL PLC. | Foreign legal person | 0.71% | 271,657,232 | 259,216,188 | 271,095,152 | 562,080 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten ordinary shareholders due to | Naught | |||||||
BOE Technology Group Co., Ltd. Annual Report 2021
| placing of new shares (if any) (see note 3) | |
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. |
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | 1. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 2. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. |
| Special account for share repurchases (if any) | At the end of the Reporting Period, among the top ten shareholders of the Company, the special securities account for the repurchase of BOE Technology |
BOE Technology Group Co., Ltd. Annual Report 2021
| among the top 10 shareholders (see note 10) | Group Co., Ltd. held 488,605,133 shares, accounting for 1.27%. According to relevant regulations in the Rule No. 2 for Content and Format of Information Disclosure of the Company Issuing Securities Publicly, if there are repurchase accounts in the top ten shareholders of the Company, it should be specified, but these shareholders should not be included and listed as the top ten shareholders. | ||
| Shareholdings of the top ten unrestricted ordinary shareholders | |||
| Name of shareholder | Number of unrestricted ordinary shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 1,368,997,836 | RMB ordinary share | 1,368,997,836 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | 326,229,746 | RMB ordinary share | 326,229,746 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | 215,563,522 | RMB ordinary share | 215,563,522 |
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | 182,316,871 | RMB ordinary share | 182,316,871 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 161,590,832 | RMB ordinary share | 161,590,832 |
| Shanghai Pudong Development Bank-GF Small-Cap Growth Mixed Type Securities Investment Fund (LOF) | 151,065,847 | RMB ordinary share | 151,065,847 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. | ||
BOE Technology Group Co., Ltd. Annual Report 2021
| between top 10 unrestricted ordinary shareholders and top 10 shareholders | 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. |
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 119,705,000 shares due to engaging in securities margin trading. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the ReportingPeriod.
□ Yes √ No
No such cases in the Reporting Period
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal personType of the controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person | Date of establishment | Unified social credit code | Principal activity |
BOE Technology Group Co., Ltd. Annual Report 2021
| in charge | ||||
| Beijing Electronics Holdings Co., Ltd. | Wang Yan | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television,computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment, electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Controlling shareholder’s holdings in other listed companies at home or abroad in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.50% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.90% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 58,175,076 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.36% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets managementType of the actual controller: legal person
BOE Technology Group Co., Ltd. Annual Report 2021
| Name of actual controller | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Wang Yan | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment; electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Other listed companies at home or abroad controlled by the actual controller in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.50% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.90% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 58,175,076 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.36% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd. | |||
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
BOE Technology Group Co., Ltd. Annual Report 2021
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for theCompany to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders ofIntelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capitalcontribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, ZhaoCaiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%,Wang Yanjun 3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng
1.667%, Wang Aizhen 1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and ManagementCenter transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through aShares Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposaland earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in aVoting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of theremaining 30% stake directly held by it in the Company.
3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed theActing-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the LargestShareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company heldby Them
□ Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Principal activity |
| Beijing State-owned Capital Operation and Management Company Limited | Zhao Jifeng | 30 December 2008 | RMB50 billion | Operation and management of state-owned capital, investment and investment management; assets management; organize the reorganization as well as the merger and acquisition of the enterprise assets. |
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
IV Specific Implementation of Share Repurchase during the Reporting PeriodProgress on any share repurchase
√ Applicable □ Not applicable
| Disclosure time of plan | Number of shares to be repurchased | As % of total share capital | Amount of all repurchased shares | Term of repurchase | Usage | Number of shares repurchased (share) | Number of shares repurchased as % of the underlying stocks involved in the equity incentive plan (if any) |
| 30 August 2021 | 350 million shares to 500 million shares | 0.09%-0.13% | Not exceeding RMB3 billion | Not exceeding 12 months since the date when the share repurchase plan was reviewed | Implementation of equity incentive plan | 460,419,000 | 49.40% |
BOE Technology Group Co., Ltd. Annual Report 2021
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2021
Part IX Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
| Bond name | Abbr. | Bond code | Date of issue | Value date | Maturity | Balance (RMB’0,000) | Coupon rate | Way of redemption | Trade place |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2019 | 29 October 2022 | 8,000,000,000.00 | 4.00% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 20BOEY1 | 149046 | 27 February 2020 | 28 February 2020 | 28 February 2023 | 2,000,000,000.00 | 3.64% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
BOE Technology Group Co., Ltd. Annual Report 2021
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 20BOEY2 | 149065 | 18 March 2020 | 19 March 2020 | 19 March 2023 | 2,000,000,000.00 | 3.54% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2020 | 27 April 2023 | 2,000,000,000.00 | 3.50% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| Appropriate arrangement of the investors (if any) | Only for the qualified investors | ||||||||
| Applicable trade mechanism | centralized bidding trade and negotiated block trade | ||||||||
| Risk of delisting (if any) and countermeasures | Not | ||||||||
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
√ Applicable □ Not applicable
For the renewable corporate bonds “19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3” 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall havethe right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. All bonds issued in the Reporting Period entitle theissuer the right in the deferred interest payment. As of the approval quotation date of the Annual Report, these bonds have not yet been executed.
3. Intermediary
| Bond | Intermediary | Office address | Signature accountant | Contact person of intermediary | Contact number |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I), 2020 Public Offering of | China Securities | Rm. 2203, North | Zhang | Zhu | 021-68801569 |
BOE Technology Group Co., Ltd. Annual Report 2021
| Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | Co., Ltd. | Tower, Shanghai Securities Plaza, 528 Pudong Road South, Shanghai | Huan, Liu Jingyuan, Su Xing, Wang Ting | Mingqiang, Han Yong, Liao Ling, Xu Tianquan | |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | China Lianhe Credit Rating Co., Ltd. | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | None | Li Jie, Sun Jing | 010-85679696 |
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
BOE Technology Group Co., Ltd. Annual Report 2021
4. List of the Usage of the Raised Funds
Unit: RMB
| Bonds | Total amount | Amount spent | Unused amount | Operation of special account for raised funds (if any) | Rectification of raised funds for violation operation (if any) | Whether is consistent with the usage, using plan and other agreements stipulated in the raising specification |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 8,000,000,000.00 | 8,000,000,000.00 | 0.00 | N/A | N/A | Yes |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 2,000,000,000.00 | 2,000,000,000.00 | 0.00 | N/A | N/A | Yes |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 2,000,000,000.00 | 2,000,000,000.00 | 0.00 | N/A | N/A | Yes |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 2,000,000,000.00 | 2,000,000,000.00 | 0.00 | N/A | N/A | Yes |
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2021
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures aswell as Influence on Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting PeriodExceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: RMB’0,000
| Item | 31 December 2021 | 31 December 2020 | Change |
| Current ratio | 1.56 | 1.23 | 26.83% |
| Debt/asset ratio | 51.78% | 59.13% | -7.35% |
| Quick ratio | 1.29 | 1.06 | 21.70% |
| Item | 2021 | 2020 | Change |
| Net profit after deducting non-recurring profit or loss | 2,393,754 | 267,045 | 796.39% |
| Total debt ratio of EBITDA | 50.09% | 19.23% | 30.86% |
| Times interest earned | 7.63 | 2.27 | 236.12% |
| Times interest earned of cash | 10.71 | 8.07 | 32.71% |
BOE Technology Group Co., Ltd. Annual Report 2021
| EBITDA-to-interest coverage (times) | 14.22 | 6.69 | 112.56% |
| Loan repayment rate | 100.00% | 100.00% | 0.00% |
| Interest coverage | 100.00% | 100.00% | 0.00% |
Part X Financial Statements
I Independent Auditor’s Report
| Type of the independent auditor’s opinion | Standard unqualified audit opinion |
| Name of the independent auditor | KPMG Huazhen Certified Public Accountants (LLP) |
| Date of signing this report | March 30, 2022 |
| Reference number of auditor’s report | KPMGHZSZ No. 2204172 |
| Name of the certified public accountants | Zhang Huan, Chai Jing |
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 company cashflow 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.
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; |
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. | |
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. |
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; |
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. |
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 enable thatthe financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing BOE’s financial reportingprocess.
AUDITOR’S REPORT (continued)
毕马威华振审字第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 for oneresulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting 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.
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 the
entities or business activities within BOE to express an opinion on the financial statements.We are responsible for the direction, supervision and performance of the group audit. Weremain 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 in ourreport 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 |
??
Page 18
The notes on pages 30 to 193 form part of these financial statements.
Page 19
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 20
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 21
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 22
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 23
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 24
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 | - | - | - | ? | - | 51,030,550 | ? | - | ? | 51,030,550 | ||||
| (2) Acquisition of non-controlling interests | V.39 | - | - | (772,223,591) | - | - | - | ? | - | (772,223,591) | ? | (12,066,861,731) | ? | (12,839,085,322) | ||||
| (3) Disposal of equities in subsidiaries | V.39 | - | - | 288,039,797 | - | - | - | ? | - | 288,039,797 | ? | 146,828,923 | ? | 434,868,720 | ||||
| (4) Others | V.39 | - | - | (2,082,537) | - | - | - | ? | - | (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 25
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 26
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 | ? | - | ? | - | ? | - | ? | - | ? | 7,011,400 | ? | - | ? | 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 27
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 28
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 | ? | - | ? | - | ? | - | ? | - | ? | 53,544,976 |
| (2) Others | ? | - | ? | - | ? | 2,851,742 | ? | - | ? | - | ? | - | ? | - | ? | 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 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 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 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 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 | XI | - | ? | - | ? | (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) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (320,000,000) |
| (4) Distributions to shareholders | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (695,967,975) | ? | (695,967,975) |
???
The notes on pages 30 to 193 form part of these financial statements.
Page 30
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 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 | ? | - | ? | - | ? | - | ? | - | ? | 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 31
BOE Technology Group Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by sharesestablished on 9 April 1993 in Beijing, with its head office located at Beijing. The parent of theCompany and the Company’s ultimate holding company is Beijing Electronics Holdings Co.,Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise 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 Accounting Standards(“CAS”) issued by the MOF. These financial statements present truly and completely theconsolidated financial position and financial position of the Company as at 31 December2021, and the consolidated financial performance and financial performance and theconsolidated cash flows and cash flows of the Company for the year then ended.
These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 2014.
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2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements arepresented in Renminbi. Functional currency is determined by the Company and itssubsidiaries on the basis of the currency in which major income and costs 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 one ormore entities (or a group of assets or net assets). Business combination is classified aseither business combinations involving enterprises under common control or businesscombinations not involving enterprises under common control.
For a transaction not involving enterprises under common control, the acquirer determineswhether acquired set of assets constitute a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquiredset of assets is not a business. If the concentration test is met and the set of assets isdetermined not to be a business, no further assessment is needed. If the concentrationtest is not met, the Group shall perform the assessment according to the guidance on thedetermination of a business.
When the set of assets the group acquired does not constitute a business, 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 described asbelow.
(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 excess adjustedagainst 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.
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(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. Where (1) the aggregateof the acquisition-date fair value of assets transferred (including the acquirer’s previouslyheld equity interest in the acquiree), liabilities incurred or assumed, and equity securitiesissued by the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’sinterest in the acquisition-date fair value of the acquiree’s identifiable net assets, thedifference is recognised as goodwill (see Note III.17). If (1) is less than (2), the differenceis recognised in profit or loss for the current period. The costs of issuing equity or debtsecurities as a part of the consideration for the acquisition are included in the carryingamounts 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 value throughother comprehensive income, the other comprehensive income recognised in priorreporting periods is transferred to retained earnings and surplus reserve at the date ofacquisition.
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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 date thatcontrol ceases.
Non-controlling interests are presented separately in the consolidated balance sheetwithin shareholders’ equity. Net profit or loss attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the total comprehensive incomeline 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 thenon-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from thoseof the Company, the Company makes necessary adjustments to the financial statementsof the subsidiary based on the Company’s own accounting period or accounting policies.Intra-group balances and transactions, and any unrealised profit or loss arising fromintra-group transactions, are eliminated when preparing the consolidated financialstatements. Unrealised losses resulting from intra-group transactions are eliminated in thesame way as unrealised gains, unless they represent impairment losses that arerecognised 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.
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(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognised as investment income for the current period. The remaining equity interests isre-measured at its fair value at the date when control is lost, any resulting gains or lossesare 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 one
other arrangement;- one arrangement considered on its own is not economically justified, but it is
economically justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment 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.
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(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change incontrol, the difference between the proportion interests of the subsidiary’s net assetsbeing acquired or disposed and the amount of the consideration paid or received isadjusted 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 foreign currenciesare translated using the exchange rate at the date the fair value is determined. Theresulting exchange differences are recognised in profit or loss, except for the differencesarising 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 at thetransaction dates. Income and expenses of foreign operation are translated to Renminbi atthe rates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.
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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 unless theGroup changes its business model for managing financial assets in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.
A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collectcontractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
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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 aninvestment-by-investment basis. The instrument meets the definition of equity fromthe perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.
The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets orboth. The Group determines the business model for managing the financial assetsaccording to the facts and based on the specific business objective for managing thefinancial assets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For 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.
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(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 are recognisedas income in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading(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.
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- 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 conditions aresatisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；- The Group intends either to settle on a net basis, or to realise the financial asset andsettle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of therisks 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 ofderecognition;- the sum of the consideration received from the transfer and, when the transferredfinancial asset is a debt investment at FVOCI, any cumulative gain or loss that hasbeen 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.
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(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;- contract assets;- debt investments at FVOCI; 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 life ofthe 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 sheet
date;- If the credit risk on a financial instrument has not increased significantly since initialrecognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has 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 or
internal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal
environment that have a significant adverse effect on the debtor’s ability to meet its
obligation 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. Whenthe assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if 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 the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, the
Group having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of 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) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does nothave assets or sources of income that could generate sufficient cash flows to repay theamounts subject to the write-off. However, financial assets that are written off could still besubject to enforcement activities in order to comply with the Group’s procedures forrecovery 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 inventories totheir present location and condition. In addition to the purchase cost of raw materials, workin progress and finished goods include direct labour costs and an appropriate allocation ofproduction 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 quantities specifiedin sales contracts, and the excess portion of inventories is measured based on generalselling 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 held forsale (see Note III.29).
The accounting treatments under the equity method adopted by the Group are asfollows:
- Where the initial cost of a long-term equity investment exceeds the Group’s
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 profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, 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 joint ventures.Unrealised losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated in the same way as unrealised gainsbut 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 of lossesnot recognised.
For the impairment of the investments in joint ventures and associates, refer to NoteIII.19.
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(3) Criteria for determining the existence of joint control or significant influence over an
investee
Joint control is the contractually agreed sharing of control of an arrangement, which existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating 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 model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses. The cost of investment property, less its estimated residual value andaccumulated impairment losses, is depreciated or amortised using the straight-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 set outin 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 is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss asincurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairmentlosses, is depreciated using the straight-line method over its estimated useful life, 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% |
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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, capitalisedborrowing costs (see Note III.15), and any other costs directly attributable to bringing theasset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided 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 aqualifying 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 the temporaryinvestment of those funds before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings. The capitalisation rate is the weightedaverage of the interest rates applicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter periodto 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 part ofthe 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 Group ceasesthe capitalisation of the borrowing costs related to the parts of the assets. Capitalisation ofborrowing costs is suspended when the acquisition and construction activities areinterrupted 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 an indefiniteuseful life and is not amortised when there is no foreseeable limit to the period over whichthe asset is expected to generate economic benefits for the Group. At the balance sheetdate, the Group does not have any intangible assets with indefinite useful lives.
Expenditure on an internal research and development project is classified into expenditureincurred during the research phase and expenditure incurred during the developmentphase.
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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 is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note III.19). On disposal of an asset group or a set of assetgroups, any attributable goodwill is written off and included in the calculation of the profit orloss on disposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefitperiod. The respective amortisation periods for such expenses are as follows:
| Item | Amortisation period (years) |
| ? | ? |
| Payment for public facilities construction and use | 10 - 15 years |
| 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 group orset of asset groups, which is expected to benefit from the synergies of the combination forthe 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 from itsultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an assetis less than its carrying amount. A provision for impairment of the asset is recognisedaccordingly. Impairment losses related to an asset group or a set of asset groups areallocated first to reduce the carrying amount of any goodwill allocated to the asset group orset of asset groups, and then to reduce the carrying amount of the other assets in theasset group or set of asset groups on a pro rata basis. However, such allocation would notreduce the carrying amount of an asset below the highest of its fair value less costs to sell(if measurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
20 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability inan orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of 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 would considerwhen pricing the asset or liability at the measurement date, and uses valuation techniquesthat are appropriate in the circumstances and for which sufficient data and otherinformation are available to measure fair value. Valuation techniques mainly include themarket 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 for servicesreceived from the employees, the payment is measured at the fair value of the equityinstruments granted to the employees at the grant date. If the equity instrumentsgranted do not vest until the completion of services for a period, or until theachievement of a specified performance condition, the Group recognises an amount ateach balance sheet date during the vesting period based on the best estimate of thenumber of equity instruments expected to vest according to the newly obtainedsubsequent information of the changes of the number of the employees expected tovest the equity instruments. The Group measures the services received at thegrant-date fair value of the equity instruments and recognises the costs or expenses asthe services are received, with a corresponding increase in capital reserve.
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 additional goodsor services (such as, loyalty points, discount coupons for future purchase, etc.,), the Groupassesses whether the option provides a material right to the customer. If the optionprovides a material right, the Group recognises the option as a performance obligation,and recognises revenue when those future goods or services are transferred or when the
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option expires. If the stand-alone selling price for a customer’s option to acquire additionalgoods or services is not directly observable, the Group estimates it, taking into account allrelevant information, including the difference in the discount that the customer wouldreceive when exercising the option or without exercising the option, and the likelihood thatthe option will be exercised.
For the contract with a warranty, the Group analyses the nature of the warranty provided, ifthe warranty provides the customer with a distinct service in addition to the assurance thatthe product complies with agreed-upon specifications, the Group recognises for 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 the contractterm. The Group does not adjust the consideration for any effects of a significant financingcomponent if it expects, at contract inception, that the period between when the Grouptransfers a promised good or service to a customer and when the customer pays for thatgood 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 the
Group’s performance as the Group performs;- the customer can control the asset created or enhanced during the Group’s
performance; or- the Group’s performance does not create an asset with an alternative use to it and 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 that itcan 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 rewardsof 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 transferred toa customer. The Group is a principal if it controls the specified good or service before thatgood or service is transferred to a customer, and recognises revenue in the gross amountof consideration to which it has received (or receivable). Otherwise, the Group is an agent,and recognises revenue in the amount of any fee or commission to which it expects to beentitled. The fee or commission is the net amount of consideration that the Group retainsafter paying the other party the consideration, or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when theGroup obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount ofwhich expected to be returned), and recognises a refund liability for the products expectedto be returned. Meanwhile, an asset is recognised in the amount of carrying amount of theproduct expected to be returned less any expected costs to recover those products(including potential decreases in the value of returned products), and carry forward to costin the amount of carrying amount of the transferred products less the above costs. At theend of each reporting period, the Group updates its assessment of future sales return. Ifthere is any change, it is accounted for as a change in accounting estimate.
The Group determines whether the licence transfers to a customer either at a point in timeor over time. If all of the following criteria are met, revenue is recognised for performanceobligations satisfied over time. Otherwise, revenue is recognised for performanceobligations satisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group willundertake activities that significantly affect the intellectual property to which thecustomer has rights;- the rights granted by the licence directly expose the customer to any positive ornegative effects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer asthose 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 other thanthe passage of time. The Group recognises loss allowances for expected credit loss oncontract 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 contract areexpensed 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 to fulfila contract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or
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 assets recognisedfor the costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods orservices to which the assets relate and recognised in profit or loss for the current period.
The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for
the 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 loss orincluded in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, 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 to basicpension and unemployment insurance plans based on the applicable benchmarks andrates stipulated by the government. Annuity is accrued based on the gross salaries of theemployees. Basic pension insurance contributions payable are recognised as a liability asthe employee provides services, with a corresponding charge to profit or loss or includedin 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 of
termination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main featuresto those affected by it.
26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets fromthe government to the Group except for capital contributions from the government in thecapacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant 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 at theamount 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 the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.
Those related to daily activities of the Company are included in other income or used towrite off related cost based on the nature of economic businesses, or included innon-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 reasonable andsystematic approach by stages when related assets are initially depreciated or amortized;or the deferred income is written off against the carrying amount of the asset when theasset becomes ready for its intended status or intended use. If the Group obtainsgovernment grants related to the assets after relevant long-term assets are put into use,deferred income is included in profit and loss based on a reasonable and systematicapproach by stages within the remaining useful life of relevant assets, or the deferredincome is written off against the carrying amount of relevant asset when the grants areobtained; the assets shall be depreciated or amortized based on the carrying amount afterbeing 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 Group hasa legally enforceable right to set them off and also intends either to settle on a net basis orto 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 amounts ofassets and liabilities for financial reporting purposes and their tax bases, which include thedeductible 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 be specifiedexplicitly or implicitly specified in a contract and should be physically distinct, orcapacity 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 ofthe 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 lease separately.For a contract that contains lease and non-lease components, the lessee and the lessor
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separate lease components from non-lease components. For a contract that containslease and non-lease components, the lessee allocates the consideration in the contract toeach lease component on the basis of the relative stand-alone price of the leasecomponent and the aggregate stand-alone price of the non-lease components. The lessorallocates the consideration in the contract in accordance with the accounting policy in NoteIII.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, which comprisesthe initial amount of the lease liability, any lease payments made at or before thecommencement date (less any lease incentives received), any initial direct costs incurredand an estimate of costs to dismantle and remove the underlying asset or to restore thesite on which it is located or restore the underlying asset to the condition required by theterms 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, theright-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 the leaseor, if that rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each periodduring the lease term with a corresponding charge to profit or loss or included in the costof assets where appropriate. Variable lease payments not included in the measurement ofthe lease liability is charged to profit or loss or included in the cost of assets whereappropriate 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 valueguarantee;- there is a change in future lease payments resulting from a change in an index or a rateused to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,extension or termination option, or 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 forshort-term leases that have a lease term of 12 months or less and leases of low-valueassets. The Group recognises the lease payments associated with these leases in profit orloss or as the cost of the assets where appropriate using the straight-line method or othersystematic basis over the lease term.
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(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 applies practicalexpedient described above, then it classifies the sub-lease as an operating lease.
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 sales ofsuch assets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan andhas obtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.20) less costs to sell (except financial assets (see note
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III.9), deferred tax assets (see note III.27) . Any excess of the carrying amount over the fairvalue (see Note III.20) less costs to sell is recognised as an impairment loss in profit orloss.
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 anon-derivative financial asset or non-derivative financial liability may also be designatedas a hedging instrument provided that it is not an investment in an equity instrument forwhich an entity has elected to present changes in the fair value in other comprehensiveincome.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis,whether the hedging relationship meets the hedge effectiveness requirements. A hedgingrelationship is regarded as having met the hedge effectiveness requirements if all of thefollowing conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging
instrument.- The effect of credit risk does not dominate the value changes that result from theeconomic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from 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.- 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 result
from that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.
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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 the
hedged 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 asset ornon-financial liability becomes a firm commitment for which fair value hedge accounting isapplied, the Group removes that amount from the cash flow hedge reserve and includes itin 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 from thecash 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 thecash flow hedge reserve, and be accounted for in accordance with the above policy.- If the hedged future cash flows are no longer expected to occur, that amount 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 controlor 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.
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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 amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed onan ongoing basis. Revisions to accounting estimates are recognised in the period in whichthe estimate is revised and in any future periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets 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 of initialapplication 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 the underlyingasset 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 of application.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 contract containsoptions to extend or terminate the lease;- accounted for lease modifications before the initial year of applicationaccording 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 lessorThe Group is not required to make any adjustments to the opening balances ofretained earnings and other related items in the financial statements in the initialyear of application and surplus for leases for which it acts as a lessor. TheGroup 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 average interestrate 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 | |
??
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| ? | 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 71
| ? | 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 72
| ? | 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 73
(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 as adirect 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.
(c) Presentation of fixed asset repair and maintenance expenses and transportation costs
(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 74
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 75
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 | |
| Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng | 15% | High-tech Enterprise |
Page 76
| Optoelectronics) | |||
| 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 |
???
V. Notes to the consolidated financial statements
Page 77
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 78
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 79
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 80
(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 81
(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 overdue daysand the expected loss rate. According to the Group’s historical experience, different lossmodels 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 82
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 RMB 749,974,172,representing 67% of the total prepayments.
Page 83
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 84
(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 |
???
(c) The ageing analysis of the Group’s other receivables is as follows:
???
?
| ? | ? | 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 85
(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 86
(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 87
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 88
(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 89
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time.
(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 90
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, locatedin Wujiang Economic and Technological Development Zone, and the disposal of the relevantassets was completed in March 2021, and the relevant proceeds of RMB156,565,635 wererecorded 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 91
(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 92
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 the carryingamount of long-term equity investment is reduced to zero. As at 31 December 2021, theaccumulated 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 further lossesafter 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 93
(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 94
| —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 95
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 96
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. The Groupevaluated the recoverable amount of these equipment and made a full provision forimpairment of RMB 675,831,912 based on the evaluation results.
Page 97
(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 is stillbeing 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. TheGroup evaluated the residual values of these engineering projects and made a provision forimpairment of RMB 44,493,824 based on the evaluation results.
Page 98
(2) Movements of major construction projects in progress during the year
| Item | Budget | ? | Balance at the beginning of the year | ? | Additions during the year | ? | Transfers to fixed assets | ? | 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 99
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 100
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 101
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd. (“Yinghe Century”), SuzhouK-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 102
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 103
(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 the uncertaintythat there will be sufficient taxable income to cover these deductible differences in futureperiods, the deferred income tax assets were not recognised in consideration of prudence .
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
???
Year
| 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 104
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, the Groupentered into the Agreement on Capital and Share Increase of Erdos BOE EnergyInvestment Co., Ltd. with other enterprise holding coal resources (“the Agreement”).The closing of the capital and share increase transaction was completed in December2021. Under the Agreement, the Group's gains from transfer of exploration right wasconverted to long-term equity investment in the Erdos BOE Energy 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 105
| ? | 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 106
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 107
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 108
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 109
(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 110
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 111
(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 projects andequipment.
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 112
30 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group werelong-term loans due within one year, lease liabilities,long-term payables and contribution ofnon-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 113
| ? | ? | 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 114
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 115
(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 116
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 117
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 Company recognisedthe financial liabilities for its redemption obligation for the above non-controlling interestscontributions to non-current liabilities due within one year (Note V.30).
Page 118
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 the Companyreduced 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 financialinstruments
| 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 | Not applicable | ||||||
| 20BOEY1 | 28 February 2020 | Equity instrument | 3.64% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable | ||||||
| 20BOEY2 | 19 March 2020 | Equity instrument | 3.54% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable | ||||||
| 20BOEY3 | 27 April 2020 | Equity instrument | 3.50% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable | ||||||
| Total | ? | ? | ? | ? | 140 million | RMB 14 billion | ? | ? | ? |
???
Page 119
(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 the initialbenchmark interest rate plus the initial spread, and the nominal interest rate in thesubsequent period is adjusted to the current benchmark interest rate plus the initial spreadand 300 basis points. Therefore, when the Company exercises the renewal option, thenominal interest rate will significantly increase, and the corresponding nominal interest willalso increase sharply. The 2019 bond and 2020 bond have an issuer’s right to defer thepayment of interest. Unless a mandatory interest payment event occurs (includingdistributions to ordinary shareholders and decrease of registered capital). At each interestpayment date of the bonds, the Company may choose at its discretion whether to deferthe payment of the current interest as well as all the deferred interests and the yieldsunder this term until the next interest payment date without being subjected to any limit onthe number of interest deferring attempts.
The actual issuance of the 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 120
(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 121
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 of sharesthrough centralised price bidding before 2 September 2021. As at 31 December 2021, theCompany repurchased 460,419,000 A shares in total by paying total consideration of RMB2,428,003,419.
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 repurchased shareswill be used for implementing incentive plan. For shares failed to be used in this way within36 months after being repurchased, the shares will be cancelled by performing relatedprocedures.
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 at anaverage 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 122
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 123
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 expectednon-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 124
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 125
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 126
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 2021 anddirectly included in other income was RMB 522,664,077.
Page 127
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 128
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 129
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 130
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 131
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 from1 January 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 for thelisted 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 132
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 133
(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 134
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 135
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 136
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 obtained fromsublease of right-of-use assets is not significant.
Page 137
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, whichhas 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 138
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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 139
| 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 |
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| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Life Technology Co., Ltd. | Beijing, China | ? | 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 | ? | 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 | ? | Ordos, China | ? | Energy investment | ? | RMB 30,000,000 | ? | - | ? | 100% | ? | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | ? | 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 | Korea | Wholesale and retail trade | KRW95,000,000 | 100% | - | Founded by investment | ||||||
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 | ? | 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 |
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| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices | ? | RMB 50,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. (“Yunnan Chuangshijie”) | Kunming, China | ? | Kunming, China | ? | Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases | ? | RMB 3,040,000,000 | ? | 79.10% | ? | - | ? | Founded by investment |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | ? | Mianyang, China | ? | R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | ? | RMB 26,000,000,000 | ? | 83.46% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer | ? | RMB 4,651,482,400 | ? | 100% | ? | - | ? | Founded by investment |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) | Wuhan, China | ? | 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 | ? | 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 | ? | 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 |
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| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| SES Imagotag SA Co.Ltd. | Nanterre, France | 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 | ? | 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 | ? | 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 |
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| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | ? | 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 | ? | Beijing, China | ? | Project investment and investment management | ? | RMB 800,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| BOE Smart Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Provision of hardware and software integrated system solutions for the IoT market segment; intelligent city, intelligent transport, intelligent finance, intelligent park and the display terminal products such as the intelligent all-in-one machines | ? | RMB 6,521,250,000 | ? | 100% | ? | - | ? | Founded by investment |
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| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Nanjing BOE Display Technology Co., Ltd. (formerly known as “Nanjing CEC Panda FPD Technology Co., Ltd.”) | Nanjing, China | ? | 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 | ? | 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 | 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 |
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* 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 Chongqing BOEDisplay, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (LimitedPartnership) 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), Chongqing YuziOptoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity Investment FundPartnership (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 of theCompany 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 CityInvested-Construction Investment Group Co., Ltd. and Fuzhou Urban ConstructionInvestment Group Co., Ltd. agreed to act as persons acting in concert according to the will ofthe Company, and exercise the voting rights unconditionally and irrevocably in accordancewith the opinions of the Company. Therefore, the proportion of voting rights of the Company toFuzhou BOE Display is 100%.
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The Company signed an agreement of acting in concert with shareholders of Chengdu CECPanda and Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu AirportXingcheng Investment Group Co., Ltd., on 17 December 2020. The Company signed anagreement of acting in concert with Nanjing Panda Information Industry Group Co., Ltd. andChina Electronics Corporation on 31 December 2020. The Company signed an agreement ofacting in concert with Chengdu Xihanggang Industrial Development Investment Co., Ltd. (成都西航港工业发展投资有限公司) on 18 November 2021. Chengdu Advanced ManufacturingIndustry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., 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 |
??
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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 the associates.
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.
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VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in thenormal 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 primarily attributableto receivables. Exposure to these credit risks are monitored by management on an ongoingbasis.
The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.
In respect of receivables, the Group has established a credit policy under which individualcredit evaluations are performed on all customers to determine the credit limit and termsapplicable to the customers. These evaluations focus on the customers’ financial position, theexternal ratings of the customers and the record of previous transactions. Receivables aredue within 7 to 120 days from the date of billing. Debtors with balances that are past due arerequested to settle all outstanding balances before any further credit is granted. Normally, theGroup does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer 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 151
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 determines theappropriate weightings of the fixed and floating rate interest-bearing instruments based on thecurrent 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 152
(b) Sensitivity analysis
As at 31 December 2021, it is estimated that a general increase / decrease of 100 basispoints in interest rates of variable rate instrument, with all other variables held constant,would decrease / increase the Group’s net profit and equity by RMB 549,530,000 (2020:
RMB 557,440,000).
In respect of the exposure to cash flow interest rate risk arising from floating ratenon-derivative instruments held by the Group at the balance sheet date, the impact onthe net profit and owner’s equity is estimated as an annualised impact on interestexpense or income of such a change in interest rates. The analysis is performed on thesame basis 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 / weakening ofthe Renminbi against the US dollar at 31 December would have decreased / increasedboth 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 which exposethe Group to foreign currency risk at the balance sheet date. The analysis excludesdifferences that would result from the translation of the financial statements denominatedin foreign currency. The analysis is performed on the same basis for the previous year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.
Page 153
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 at fairvalue at each balance sheet date on a recurring or non-recurring basis. The level in which fairvalue measurement is categorised is determined by the level of the fair value hierarchy of thelowest level input that is significant to the entire fair value measurement. The levels aredefined 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 154
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 155
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 156
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 157
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 158
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 159
(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 160
| 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 with respectto 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 | ? | - |
???
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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 granted tothe incentive object under this plan shall not be transferred, used for guarantee or debtrepayment before the lock-up release. Lock-up restricted shares are released in threephases after 24 months from the grant date. The release ratios for each phase are 34%,33%, and 33%, respectively. The corresponding release dates are 2 years, 3 years, and4 years from the grant date. The actual number released shall be based on performanceassessment 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-settledshare-based payments in the consolidated financial statement was RMB 640,692,637, andthe accumulated 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, if thegranted object resigns before the release date, the Company will repurchase the restrictedshares that have not been released at the subscription price of the granted object. Pleaserefer 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 reserved grantdate is determined based on the difference between the assessed fair value of theexercisable 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
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flows, and expected capital expenditure. Adjustments are made to the capital structure in lightof changes in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital ratio(total liabilities divided by total assets). The capital management strategies exerted by theGroup remained unchanged from 2020. In order to maintain or adjust the ratio, the Group mayadjust the amount of dividends paid to shareholders, request new loans, issue new shares, orsell 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, SuzhouK-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.
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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 providesjoint-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 804,000,000 andRMB 2,626,000,000. The Company provides joint-liability guarantee for the above loans. Inaddition, the Company provides joint-liability guarantee for the letters of credit issued but notaccepted 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 providesjoint-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 providesjoint-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-termletter 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 renewable corporatebonds (digital economy) (phase I) to professional investors with a bond abbreviation“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.
(c) Sensor and application solutions — The sensor and application solutions integrate
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, TVs cardisplays, 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 and buildan intelligent health management ecosystem to provide customers with one-stop healthservices 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.
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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 segment reportingin 2021.
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3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods
The 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 thenon-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 these customersrepresented RMB 35,420,533,749, which was approximately 26% of the Group’s totaloperating income).
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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 that canbe readily withdraw on demand. Others are restricted monetary funds, which representmargin deposits of RMB992,904 placed in the commercial banks (2020: nil).
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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 173
(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 174
(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 no provisionsfor 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 175
(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.
(c) The ageing analysis of other receivables of the Company is as follows:
????
| ? | 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 176
(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 177
(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 178
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 179
(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 180
(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 181
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 182
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 183
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 184
(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 185
(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 186
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 187
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 188
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 directly included in otherincome 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 189
(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 190
| (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 with restrictedusage.
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 191
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 192
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 for short-term leaseexpenses, low-value asset lease expenses and the amount of income obtained from sublease ofright-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 amount before taxation.
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XVIII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets and Earnings PerShare” (2010 revised) issued by the CSRC and relevant accounting standards, the Group’s returnon net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | ? | Basic earnings per share | ? | Diluted earnings per share |
| ? | ? | ? | ? | ? | ? |
| Net profit attributable to the Company’s ordinary equity shareholders | 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 as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinary shareholders ofthe Company by the weighted average number of ordinary shares outstanding:
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2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributableto ordinary shareholders of the Company by the weighted average amount of consolidated netassets:
| ? | 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 is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:
??
| ? | 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% |
?