THIRD QUARTERLY REPORT 2022
October 2022
Stock Code: 000725 Stock Name: BOE-A Announcement No. 2022-076Stock Code: 200725 Stock Name: BOE-B Announcement No. 2022-076
BOE TECHNOLOGY GROUP CO., LTD.THIRD QUARTERLY REPORT 2022
BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) and all themembers of the Company’s Board of Directors hereby guarantee that the contents of thisReport are true, accurate and complete and free of any misrepresentations, misleadingstatements or material omissions.
Important Notes:
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors andsenior management of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) herebyguarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly andseverally liable for any misrepresentations, misleading statements or material omissions therein.All the directors of the Company except for the following attended in person the Board meeting for the reviewof this Report.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Wang Duoxiang | Independent director | Due to work | Tang Shoulian |
Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President of the Company, Ms. YangXiaoping, the Company’s Chief Financial Officer, and Mr. Teng Jiao, head of the Company’s financialdepartment (equivalent to financial manager) hereby guarantee that the Financial Statements carried in thisReport are factual, accurate and complete.This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.The financial statements in this Report have not been audited by an independent auditor.
I Key Financial Information(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.?Yes □ NoReason for any retrospectively adjustment or restatementChange of accounting policy
| Item | Q3 2022 | Q3 2021 | YoY change (%) | Q1-Q3 2022 | Q1-Q3 2021 | YoY change (%) | ||
| Before | Restated | Restated | Before | Restated | Restated | |||
| Operating revenue (RMB) | 41,134,145,106.00 | 55,993,022,701.00 | 56,184,413,318.00 | -26.79% | 132,744,386,975.00 | 163,278,349,727.00 | 164,802,432,028.00 | -19.45% |
| Net profit attributable to the listed company’s shareholders (RMB) | -1,304,557,522.00 | 7,253,390,635.00 | 7,242,168,422.00 | -118.01% | 5,291,104,216.00 | 20,015,415,603.00 | 20,159,331,599.00 | -73.75% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | -2,688,031,763.00 | 6,937,108,280.00 | 6,925,886,067.00 | -138.81% | 1,551,424,330.00 | 18,598,725,052.00 | 18,742,641,048.00 | -91.72% |
| Net cash generated from/used in operating activities (RMB) | - | - | - | - | 31,030,436,301.00 | 44,751,381,483.00 | 44,793,836,011.00 | -30.73% |
| Basic earnings per share (RMB/share) | -0.039 | 0.197 | 0.196 | -119.90% | 0.128 | 0.560 | 0.564 | -77.30% |
| Diluted earnings per share (RMB/share) | -0.039 | 0.197 | 0.196 | -119.90% | 0.128 | 0.559 | 0.564 | -77.30% |
| Weighted average return on equity (%) | -1.15% | 6.56% | 6.56% | -7.71% | 3.75% | 19.76% | 19.90% | -16.15% |
| Item | 30 September 2022 | 31 December 2021 | YoY change (%) | |||||
| Before | Restated | Restated | ||||||
| Total assets (RMB) | 430,996,506,952.00 | 449,726,980,355.00 | 450,232,603,405.00 | -4.27% | ||||
| Equity attributable to the listed company’s shareholders (RMB) | 133,304,426,299.00 | 142,925,547,899.00 | 143,086,216,558.00 | -6.84% | ||||
Reason for accounting policy change and correction of accounting error:
As required by the Q&A on the Implementation of Fixed Assets Standards and the Interpretation of Accounting Standards for Business Enterprises No. 15 issued by the Ministry of Finance, theGroup retrospectively adjusted related items of financial statements of the beginning of the year and those of the same period of last year. The above changes of accounting policies have nosignificant influence on the Company’s financial status and operating results.
BOE Technology Group Co., Ltd. Third Quarterly Report 2022
(II) Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
| Item | Q3 2022 | Q1-Q3 2022 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 79,572,579.00 | 78,092,447.00 | N/A |
| Tax rebates, reductions and exemptions with ultra vires approval or in lack of duly approved document | 0.00 | 0.00 | N/A |
| Government grants through profit or loss (exclusive of government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 1,711,347,864.00 | 4,671,701,492.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current gains and losses | 0.00 | 0.00 | N/A |
| Income 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 | N/A |
| Gains and losses on non-monetary asset swap | 0.00 | 0.00 | N/A |
| Gains and losses on investment or asset management entrustments to other entities | 0.00 | 0.00 | N/A |
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | 0.00 | N/A |
| Gains and losses on debt restructuring | 0.00 | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | 0.00 | N/A |
| Gains and losses on over-fair value amount as a result of transactions with distinctly unfair prices | 0.00 | 0.00 | N/A |
| Current gains and losses on subsidiaries acquired through business mergers under same control from period-beginning to merger dates, net | 0.00 | 0.00 | N/A |
| Gains and losses on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & investment income from disposal of held-for-trading financial assets and liabilities, and available-for-sale financial assets (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 84,341,679.00 | 206,664,669.00 | N/A |
| Reversed portion of impairment allowance for accounts receivable which are tested individually for impairment | -4,467,867.00 | 16,060,417.00 | N/A |
| Gains and losses on loan entrustment | 0.00 | 0.00 | N/A |
| Gains and losses on fair value changes in investment property of which subsequent measurement is carried out using fair value method | 0.00 | 0.00 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current gains and losses | 0.00 | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | 0.00 | N/A |
| Non-operating income and expense other than above | 9,333,511.00 | 94,814,586.00 | N/A |
| Other gains and losses that meet definition of nonrecurring gain/loss | 0.00 | 0.00 | N/A |
| Less: Income tax effects | 35,390,997.00 | 127,458,444.00 | N/A |
| Non-controlling interests effects (net of tax) | 461,262,528.00 | 1,200,195,281.00 | N/A |
| Total | 1,383,474,241.00 | 3,739,679,886.00 | -- |
Other items that meet the definition of exceptional gain/loss:
□Applicable ? Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory AnnouncementNo. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□Applicable ? Not applicable
No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why
? Applicable □ Not applicableChanges in key line items of the income statement and explanation of why:
1. Finance costs declined 53% during Q1-Q3 2022 compared to Q1-Q3 2021, primarily driven by the decreased net interestexpense during the Reporting Period.
2. Other income rose 206% during Q1-Q3 2022 compared to Q1-Q3 2021, primarily driven by the increased government grantsduring the Reporting Period.
3. Gain on changes in fair value rose 93% during Q1-Q3 2022 compared to Q1-Q3 2021, primarily driven by the increased gainson investments in wealth management products during the Reporting Period.
Changes in key line items of the balance sheet and explanation of why:
1. Construction in progress as at 30 September 2022 rose 33% compared to 1 January 2022, primarily driven by new constructionprojects yet to be transferred to fixed assets during the Reporting Period.II Shareholder Information(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as wellas Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 1,604,066 (including 1,571,609 A-shareholders and 32,457 B-shareholders) | |||||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares | Shares in pledge, marked or frozen | |
| Status | Shares | |||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.64% | 4,063,333,333 | 0 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 3.70% | 1,414,248,418 | 0 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.15% | 822,092,180 | 0 | N/A | 0 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.88% | 718,132,854 | 718,132,854 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.74% | 666,195,772 | 0 | N/A | 0 |
| Fuqing Huirong Venture Capital Group Co., Ltd. | Domestic non-state-owned legal person | 1.41% | 538,599,640 | 0 | N/A | 0 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | Other | 0.80% | 305,330,128 | 0 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 0.74% | 281,295,832 | 0 | N/A | 0 |
| Ningxia Risheng High-tech Industry Co., Ltd. | Domestic non-state-owned legal person | 0.72% | 275,196,266 | 0 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.72% | 273,735,583 | 0 | N/A | 0 |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class | ||||
| Class | Shares | |||||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB-denominated ordinary share | 4,063,333,333 | |||
| Hong Kong Securities Clearing Company Ltd. | 1,414,248,418 | RMB-denominated ordinary share | 1,414,248,418 | |||
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB-denominated ordinary share | 822,092,180 | |||
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB-denominated ordinary share | 666,195,772 | |||
| Fuqing Huirong Venture Capital Group Co., Ltd. | 538,599,640 | RMB-denominated ordinary share | 538,599,640 | |||
| Sinatay Life Insurance Co., Ltd.-Traditional Product | 305,330,128 | RMB-denominated ordinary share | 305,330,128 | |||
| Beijing Yizhuang Investment Holdings Co., Ltd | 281,295,832 | RMB-denominated ordinary share | 281,295,832 | |||
| Ningxia Risheng High-tech Industry Co., Ltd. | 275,196,266 | RMB-denominated ordinary share | 275,196,266 | |||
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB-denominated ordinary share | 273,735,583 | |||
| Xu Lili | 236,248,998 | RMB-denominated ordinary share | 236,248,998 | |||
| 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., by entering into Implementation Protocol of Voting Right, 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) | 1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. held 232,612,566 shares in the Company via its credit securities account, and shareholder Xu Lili held 229,814,698 shares in the Company via her credit securities account. 2. Except for the aforesaid, the Company does not know any other top-10 ordinary shareholder who was involved in securities refinancing. | |||||
Note: As of the end of the Reporting Period, among the top 10 shareholders, BOE Technology Group Co., Ltd. held 528,186,052A-shares of the Company via its special repurchase security account, accounting for 1.38%.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□Applicable ? Not applicable
III 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 itsPublic Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801Approval from CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominalvalue no more than RMB30 billion to qualified investors.
| Bond name | Abbr. | Bond code | Date of issue | Maturity |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 20BOEY1 | 149046 | 27 February 2020 | 28 February 2023 |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 20BOEY2 | 149065 | 18 March 2020 | 19 March 2023 |
| 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 2023 |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2025 |
On 9 September 2022, the Company disclosed the Announcement on Not Exercising the Issuer’s Renewal Option for the 2019Public Offering of Renewable Corporate Bonds (for Qualified Investors) (Phase I) (Announcement No. 2022-067). 19BOEY1will reach its maturity of three years on 28 October 2022. As per the relevant Prospectus and Listing Announcement, the Companyhas decided not to exercise the issuer’s renewal option on 19BOEY1 and will fully redeem the said bonds instead. On 27 October2022, the Company disclosed the Announcement on the Redemption of Corporate Bonds “19BOEY1” with Interest & theDelisting of the Bonds (Announcement No. 2022-073). The Company will repay on 31 October 2022 the principals of the saidbonds, together with the interest from 29 October 2021 to 28 October 2022, and delist the bonds.
2. Following the approval of the Proposal on the Repurchase of Domestically Listed Foreign Shares (B-shares) at the 39th Meetingof the 9th Board of Directors and the 2021 Annual General Meeting, the Company disclosed the Announcement No. 2022-030 onthe Plan for the Repurchase of Domestically Listed Foreign Shares (B-shares) on 31 March 2022 and the Report on the Repurchaseof Domestically Listed Foreign Shares (B-shares) (Announcement No. 2022-046) on 10 May 2022. The Company carried out thefirst repurchase on 27 June 2022 and disclosed the Announcement No. 2022-050 on the First Repurchase of Domestically ListedForeign Shares (B-shares) on 28 June 2022. On 6 September 2022, the Company disclosed the Announcement No. 2022-065 onthe Completion of the Implementation of the Share Repurchase Plan & the Repurchase Results. As of 2 September 2022, all therepurchased shares had been settled, with the total amount used reaching the upper limit of the repurchase amount. The Companyhas implemented the repurchase of the Company's shares by means of centralized bidding through a special securities account forthe repurchase, and the cumulative number of B-shares repurchased was 243,229,361, accounting for approximately 25.9829% ofthe Company's B-shares and 0.6327% of the Company's total share capital, with the highest transaction price of HKD4.32 pershare and the lowest transaction price of HKD3.65 per share. The total amount paid was HKD999,999,946.81 (inclusive oftransaction costs). The above repurchase of the Company was in line with the requirements of relevant laws and regulations, aswell as the established repurchase programme of the Company. On 22 September 2022, the Company disclosed the Announcementon the Completion of the Cancellation of Repurchased Shares & Share Changes (Announcement No. 2022-071). The aforesaid
243,229,361 repurchased shares have been cancelled on 20 September 2022 with the Shenzhen branch of China SecuritiesDepository and Clearing Co., Ltd., with the cancelled number of shares, date of completion and term of retirement all in compliancewith the applicable laws and regulations.
3. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board ofDirectors (Announcement No.2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other relatedannouncements, in which the Company intended to make a non-public offering of A-shares to no more than 35 specific investorsincluding Jing Guorui Fund. The net funds raised were expected to be no more than RMB20 billion, which would be used for “theacquisition of a 24.06% stake in Wuhan BOE Optoelectronics”, “a capital increase to Chongqing BOE Display and the constructionof the BOE Chongqing 6
th-generation AMOLED (flexible) production line project”, “a capital increase to Yunnan ChuangshijieOptoelectronics and the construction of the 12-inch OLED on silicon project”, “a capital increase to Chengdu BOE Hospital andthe construction of the Chengdu BOE Hospital project”, “the repayment of the loan of Fuzhou Urban Construction InvestmentGroup” and “supplementation of working capital”. On 19 August 2021, the Company disclosed the Summary of the Report on theNon-public Offering of A-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-publicoffering, which were listed on the Shenzhen Stock Exchange on 20 August 2021. According to the Report on the Non-publicOffering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares, of the net fundsraised in the 2021 non-public offering of A-shares, RMB1 billion would be used for a capital increase to Yunnan ChuangshijieOptoelectronics Technology Co., Ltd. and the construction of the 12-inch OLED on silicon project. The investment in the 12-inchOLED on silicon project would be implemented in three stages. In the first stage, the Company invested with its own funds, andthe project has delivered small shipments in 2021. Due to unexpected developments in the target markets, the Company consideredthe risk of changing techniques and market demand and thus initiated the second and third stages of the project gradually. As ofthe date of this Report, the raised funds intended for the 12-inch OLED on silicon project have yet to be used and will be usedsubsequently according to market conditions.
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
Unit: RMB
| Item | 30 September 2022 | 1 January 2022 |
| Current assets: | ||
| Monetary assets | 77,192,968,702.00 | 80,986,835,088.00 |
| Settlement reserve | 0.00 | 0.00 |
| Loans to other banks and financial institutions | 0.00 | 0.00 |
| Held-for-trading financial assets | 15,641,783,823.00 | 10,028,172,853.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 141,378,056.00 | 217,734,298.00 |
| Accounts receivable | 27,612,286,124.00 | 35,503,414,820.00 |
| Receivables financing | 0.00 | 0.00 |
| Prepayments | 820,470,779.00 | 1,112,880,007.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Other receivables | 1,078,640,384.00 | 1,922,828,378.00 |
| Including: Interest receivable | 133,333.00 | 0.00 |
| Dividends receivable | 0.00 | 2,414,503.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 28,515,432,821.00 | 27,805,161,436.00 |
| Contract assets | 138,740,600.00 | 75,698,324.00 |
| Assets held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 8,535,996.00 | 7,700,735.00 |
| Other current assets | 1,770,172,092.00 | 3,578,919,710.00 |
| Total current assets | 152,920,409,377.00 | 161,239,345,649.00 |
| Non-current assets: | ||
| Loans and advances to customers | 0.00 | 0.00 |
| Debt investments | 0.00 | 0.00 |
| Other debt investments | 0.00 | 0.00 |
| Long-term receivables | 26,803,942.00 | 29,918,542.00 |
| Long-term equity investments | 6,572,843,071.00 | 6,040,948,317.00 |
| Investments in other equity instruments | 578,519,766.00 | 519,088,146.00 |
| Other non-current financial assets | 606,895,447.00 | 606,895,447.00 |
| Investment property | 1,127,201,030.00 | 1,158,365,401.00 |
| Fixed assets | 209,332,092,998.00 | 227,141,366,885.00 |
| Construction in progress | 42,654,771,984.00 | 32,099,711,879.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 729,795,962.00 | 753,164,237.00 |
| Intangible assets | 10,625,134,718.00 | 11,209,498,406.00 |
| Development costs | 0.00 | 0.00 |
| Goodwill | 1,130,006,987.00 | 1,130,006,987.00 |
| Long-term prepaid expense | 575,371,150.00 | 636,530,502.00 |
| Deferred income tax assets | 176,436,625.00 | 190,335,524.00 |
| Other non-current assets | 3,940,223,895.00 | 7,477,427,483.00 |
| Total non-current assets | 278,076,097,575.00 | 288,993,257,756.00 |
| Total assets | 430,996,506,952.00 | 450,232,603,405.00 |
| Current liabilities: | ||
| Short-term borrowings | 3,249,578,667.00 | 2,072,057,332.00 |
| Borrowings from the central bank | 0.00 | 0.00 |
| Loans from other banks and financial institutions | 0.00 | 0.00 |
| Held-for-trading financial liabilities | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 612,435,907.00 | 827,958,031.00 |
| Accounts payable | 26,202,233,035.00 | 32,455,830,694.00 |
| Advances from customers | 87,414,783.00 | 146,140,084.00 |
| Contract liabilities | 3,264,466,226.00 | 3,765,081,554.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 |
| Customer deposits and deposits from other banks and financial institutions | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 |
| Employee benefits payable | 3,292,286,676.00 | 5,133,155,237.00 |
| Taxes and levies payable | 1,448,575,226.00 | 2,200,249,305.00 |
| Other payables | 20,420,070,649.00 | 23,835,374,942.00 |
| Including: Interest payable | 145,025.00 | 126,701.00 |
| Dividends payable | 6,388,156.00 | 6,561,972.00 |
| Fees and commissions payable | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 |
| Liabilities directly associated with assets held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 33,114,135,520.00 | 28,874,958,714.00 |
| Other current liabilities | 3,430,794,665.00 | 4,051,532,509.00 |
| Total current liabilities | 95,121,991,354.00 | 103,362,338,402.00 |
| Non-current liabilities: |
| Insurance contract reserve | 0.00 | 0.00 |
| Long-term borrowings | 122,129,964,187.00 | 116,078,666,587.00 |
| Bonds payable | 358,293,368.00 | 359,586,437.00 |
| Including: Preference shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 719,428,159.00 | 669,130,264.00 |
| Long-term payables | 349,671,479.00 | 906,592,838.00 |
| Long-term employee benefits payable | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 4,931,684,980.00 | 6,416,089,611.00 |
| Deferred income tax liabilities | 1,562,101,464.00 | 1,525,622,873.00 |
| Other non-current liabilities | 3,035,963,580.00 | 3,535,809,876.00 |
| Total non-current liabilities | 133,087,107,217.00 | 129,491,498,486.00 |
| Total liabilities | 228,209,098,571.00 | 232,853,836,888.00 |
| Owners’ equity: | ||
| Share capital | 38,202,517,121.00 | 38,445,746,482.00 |
| Other equity instruments | 8,108,390,917.00 | 14,146,997,427.00 |
| Including: Preference shares | 0.00 | 0.00 |
| Perpetual bonds | 8,108,390,917.00 | 14,146,997,427.00 |
| Capital reserves | 54,631,964,183.00 | 53,804,309,393.00 |
| Less: Treasury stock | 3,547,452,575.00 | 3,415,768,207.00 |
| Other comprehensive income | -967,662,394.00 | 113,551,147.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 2,890,218,539.00 | 2,889,590,205.00 |
| General reserve | 0.00 | 0.00 |
| Retained earnings | 33,986,450,508.00 | 37,101,790,111.00 |
| Total equity attributable to owners of the Company as the parent | 133,304,426,299.00 | 143,086,216,558.00 |
| Non-controlling interests | 69,482,982,082.00 | 74,292,549,959.00 |
| Total owners’ equity | 202,787,408,381.00 | 217,378,766,517.00 |
| Total liabilities and owners’ equity | 430,996,506,952.00 | 450,232,603,405.00 |
Legal representative: Chen Yanshun President of the Company’s Execution Committee: Gao WenbaoChief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2022 | Q1~Q3 2021 |
| 1. Revenues | 132,744,386,975.00 | 164,802,432,028.00 |
| Including: Operating revenue | 132,744,386,975.00 | 164,802,432,028.00 |
| Interest income | 0.00 | 0.00 |
| Insurance premium income | 0.00 | 0.00 |
| Fee and commission income | 0.00 | 0.00 |
| 2. Costs and expenses | 132,516,593,803.00 | 133,758,624,223.00 |
| Including: Cost of sales | 114,557,562,318.00 | 113,370,797,266.00 |
| Interest expense | 0.00 | 0.00 |
| Fee and commission expense | 0.00 | 0.00 |
| Surrenders | 0.00 | 0.00 |
| Net insurance claims paid | 0.00 | 0.00 |
| Net amount provided as insurance contract reserve | 0.00 | 0.00 |
| Expenditure on policy dividends | 0.00 | 0.00 |
| Reinsurance premium expense | 0.00 | 0.00 |
| Taxes and levies | 951,347,871.00 | 1,098,484,767.00 |
| Selling expense | 2,656,477,233.00 | 3,411,026,739.00 |
| Administrative expense | 4,654,091,569.00 | 5,028,571,370.00 |
| R&D expense | 8,399,773,016.00 | 8,116,730,026.00 |
| Finance costs | 1,297,341,796.00 | 2,733,014,055.00 |
| Including: Interest expense | 2,278,171,212.00 | 3,645,968,371.00 |
| Interest income | 1,015,483,608.00 | 741,952,363.00 |
| Add: Other income | 4,688,391,574.00 | 1,534,520,440.00 |
| Return on investment (“-” for loss) | 576,119,809.00 | 560,152,073.00 |
| Including: Share of profit or loss of joint ventures and associates | 400,596,521.00 | 487,008,937.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Exchange gain (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 125,006,673.00 | 64,613,098.00 |
| Credit impairment loss (“-” for loss) | -25,742,411.00 | -43,202,700.00 |
| Asset impairment loss (“-” for loss) | -5,251,448,489.00 | -3,332,862,567.00 |
| Asset disposal income (“-” for loss) | 7,913,154.00 | 151,124,296.00 |
| 3. Operating profit (“-” for loss) | 348,033,482.00 | 29,978,152,445.00 |
| Add: Non-operating income | 135,467,497.00 | 64,533,897.00 |
| Less: Non-operating expense | 48,767,454.00 | 20,810,474.00 |
| 4. Gross profit (“-” for loss) | 434,733,525.00 | 30,021,875,868.00 |
| Less: Income tax expense | 1,769,526,836.00 | 4,000,514,020.00 |
| 5. Net profit (“-” for net loss) | -1,334,793,311.00 | 26,021,361,848.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -1,334,793,311.00 | 26,021,361,848.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to shareholders of the Company as the parent (“-” for net loss) | 5,291,104,216.00 | 20,159,331,599.00 |
| 5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) | -6,625,897,527.00 | 5,862,030,249.00 |
| 6. Other comprehensive income, net of tax | -1,080,248,241.00 | -16,990,147.00 |
| Attributable to owners of the Company as the parent | -1,074,930,204.00 | 3,830,238.00 |
| 6.1 Items that will not be reclassified to profit or loss | -67,403,720.00 | -72,663,515.00 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | 0.00 | 0.00 |
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | -51,358,569.00 | -30,395,334.00 |
| 6.1.3 Changes in the fair value of investments in other equity instruments | -16,045,151.00 | -42,268,181.00 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | 0.00 | 0.00 |
| 6.1.5 Other | 0.00 | 0.00 |
| 6.2 Items that will be reclassified to profit or loss | -1,007,526,484.00 | 76,493,753.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 73,424.00 | 0.00 |
| 6.2.2 Changes in the fair value of other debt investments | 0.00 | 0.00 |
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 6.2.4 Credit impairment allowance for other debt investments | 0.00 | 0.00 |
| 6.2.5 Reserve for cash flow hedges | 0.00 | 0.00 |
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -1,007,599,908.00 | 76,493,753.00 |
| 6.2.7 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | -5,318,037.00 | -20,820,385.00 |
| 7. Total comprehensive income | -2,415,041,552.00 | 26,004,371,701.00 |
| 7.1 Attributable to owners of the Company as the parent | 4,216,174,012.00 | 20,163,161,837.00 |
| 7.2 Attributable to non-controlling interests | -6,631,215,564.00 | 5,841,209,864.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.128 | 0.564 |
| 8.2 Diluted earnings per share | 0.128 | 0.564 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0.00, with the amount for the same period of last year being RMB0.00 .Legal representative: Chen Yanshun President of the Company’s Execution Committee: Gao WenbaoChief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2022 | Q1~Q3 2021 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 149,238,433,709.00 | 162,946,489,854.00 |
| Net increase in customer deposits and deposits from other banks and financial institutions | 0.00 | 0.00 |
| Net increase in borrowings from the central bank | 0.00 | 0.00 |
| Net increase in loans from other financial institutions | 0.00 | 0.00 |
| Premiums received on original insurance contracts | 0.00 | 0.00 |
| Net proceeds from reinsurance | 0.00 | 0.00 |
| Net increase in deposits and investments of policy holders | 0.00 | 0.00 |
| Interest, fees and commissions received | 0.00 | 0.00 |
| Net increase in loans from other banks and financial institutions | 0.00 | 0.00 |
| Net increase in proceeds from repurchase transactions | 0.00 | 0.00 |
| Net proceeds from acting trading of securities | 0.00 | 0.00 |
| Tax and levy rebates | 15,073,124,057.00 | 8,364,815,287.00 |
| Cash generated from other operating activities | 6,776,267,125.00 | 4,850,018,898.00 |
| Subtotal of cash generated from operating activities | 171,087,824,891.00 | 176,161,324,039.00 |
| Payments for commodities and services | 116,214,674,571.00 | 107,801,306,841.00 |
| Net increase in loans and advances to customers | 0.00 | 0.00 |
| Net increase in deposits in the central bank and other banks and financial institutions | 0.00 | 0.00 |
| Payments for claims on original insurance contracts | 0.00 | 0.00 |
| Net increase in loans to other banks and financial institutions | 0.00 | 0.00 |
| Interest, fees and commissions paid | 0.00 | 0.00 |
| Policy dividends paid | 0.00 | 0.00 |
| Cash paid to and for employees | 15,488,498,730.00 | 13,584,382,845.00 |
| Taxes and levies paid | 4,733,280,889.00 | 5,980,745,956.00 |
| Cash used in other operating activities | 3,620,934,400.00 | 4,001,052,386.00 |
| Subtotal of cash used in operating activities | 140,057,388,590.00 | 131,367,488,028.00 |
| Net cash generated from/used in operating activities | 31,030,436,301.00 | 44,793,836,011.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 62,428,998,594.00 | 23,281,402,329.00 |
| Return on investment | 324,649,377.00 | 136,429,102.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 5,500,981.00 | 16,503,309.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 88,028,400.00 |
| Cash generated from other investing activities | 918,167,460.00 | 2,804,449,647.00 |
| Subtotal of cash generated from investing activities | 63,677,316,412.00 | 26,326,812,787.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 21,617,268,503.00 | 28,852,051,825.00 |
| Payments for investments | 68,234,624,848.00 | 23,351,349,232.00 |
| Net increase in pledged loans granted | 0.00 | 0.00 |
| Net payments for the acquisition of subsidiaries and other | 0.00 | 0.00 |
| business units | ||
| Cash used in other investing activities | 664,476,852.00 | 71,264,210.00 |
| Subtotal of cash used in investing activities | 90,516,370,203.00 | 52,274,665,267.00 |
| Net cash generated from/used in investing activities | -26,839,053,791.00 | -25,947,852,480.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 2,701,942,329.00 | 28,856,737,400.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 2,701,942,329.00 | 8,987,230,000.00 |
| Borrowings received | 43,532,798,686.00 | 23,470,837,385.00 |
| Cash generated from other financing activities | 17,184,658.00 | 1,516,720,582.00 |
| Subtotal of cash generated from financing activities | 46,251,925,673.00 | 53,844,295,367.00 |
| Repayment of borrowings | 41,856,013,694.00 | 35,141,044,729.00 |
| Interest and dividends paid | 12,400,683,947.00 | 8,272,971,303.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 42,013,745.00 | 13,580,970.00 |
| Cash used in other financing activities | 2,230,559,147.00 | 15,579,476,970.00 |
| Subtotal of cash used in financing activities | 56,487,256,788.00 | 58,993,493,002.00 |
| Net cash generated from/used in financing activities | -10,235,331,115.00 | -5,149,197,635.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 1,842,700,102.00 | -465,908,592.00 |
| 5. Net increase in cash and cash equivalents | -4,201,248,503.00 | 13,230,877,304.00 |
| Add: Cash and cash equivalents, beginning of the period | 76,623,486,083.00 | 68,064,736,371.00 |
| 6. Cash and cash equivalents, end of the period | 72,422,237,580.00 | 81,295,613,675.00 |
(II) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes ? No
These financial statements have not been audited by such an auditor.
BOE Technology Group Co., Ltd.Board of Directors28 October 2022