THIRD QUARTERLY REPORT 2023
October 2023
Stock Code: 000725 Stock Name: BOE-A Announcement No. 2023-053Stock Code: 200725 Stock Name: BOE-B Announcement No. 2023-053
BOE TECHNOLOGY GROUP CO., LTD.THIRD QUARTERLY REPORT 2023
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 and seniormanagement of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee thefactuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Report.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 financial department(equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual,accurate and complete.This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandingsbetween 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 IndicatorsIndicate 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 2023 | Q3 2022 | YoY change (%) | Q1-Q3 2023 | Q1-Q3 2022 | YoY change (%) | ||
| Before | Restated | Restated | Before | Restated | Restated | |||
| Operating revenue (RMB) | 46,337,198,045.00 | 41,134,145,106.00 | 41,134,145,106.00 | 12.65% | 126,515,073,265.00 | 132,744,386,975.00 | 132,744,386,975.00 | -4.69% |
| Net profit attributable to the listed company’s shareholders (RMB) | 286,347,794.00 | -1,304,557,522.00 | -1,304,557,522.00 | - | 1,022,157,403.00 | 5,291,104,216.00 | 5,291,104,216.00 | -80.68% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 92,352,417.00 | -2,688,031,763.00 | -2,688,031,763.00 | - | -1,492,087,874.00 | 1,551,424,330.00 | 1,551,424,330.00 | -196.18% |
| Net cash generated from/used in operating activities (RMB) | — | — | — | — | 23,059,279,755.00 | 31,030,436,301.00 | 31,030,436,301.00 | -25.69% |
| Basic earnings per share (RMB/share) | 0.01 | -0.04 | -0.04 | - | 0.02 | 0.13 | 0.13 | -84.62% |
| Diluted earnings per share (RMB/share) | 0.01 | -0.04 | -0.04 | - | 0.02 | 0.13 | 0.13 | -84.62% |
| Weighted average return on equity (%) | 0.21% | -1.15% | -1.15% | 1.36% | 0.71% | 3.75% | 3.75% | -3.04% |
| Item | 30 September 2023 | 31 December 2022 | YoY change (%) | |||||
| Before | Restated | Restated | ||||||
| Total assets (RMB) | 415,655,512,105.00 | 420,562,103,212.00 | 420,567,865,936.00 | -1.17% | ||||
| Equity attributable to the listed company’s shareholders (RMB) | 130,627,379,794.00 | 136,089,410,395.00 | 136,079,680,294.00 | -4.01% | ||||
Reason for accounting policy change and correction of accounting error:
As required by Interpretation No. 16 for the Accounting Standards for Business Enterprises issued by the Ministry of Finance, the Group has retrospectively restated relevant financial statementitems at the beginning of the year and in the same period of last year. The said changes of accounting policies have no significant impact on the Company’s financial condition and operatingresults.
(II) Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
| Item | Q3 2023 | Q1-Q3 2023 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 1,089,322.00 | -7,774,027.00 | 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) | 281,226,899.00 | 3,001,932,095.00 | 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) | -29,795,651.00 | 181,479,776.00 | N/A |
| Reversed portion of impairment allowance for accounts receivable which are tested individually for impairment | 9,654,149.00 | 24,107,802.00 | 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 | 55,739,294.00 | 241,294,974.00 | N/A |
| Other gains and losses that meet definition of nonrecurring gain/loss | 0.00 | 0.00 | N/A |
| Less: Income tax effects | 31,020,290.00 | 145,212,249.00 | N/A |
| Non-controlling interests effects (net of tax) | 92,898,346.00 | 781,583,094.00 | N/A |
| Total | 193,995,377.00 | 2,514,245,277.00 | -- |
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 Announcement No.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. Other income declined 35% during Q1-Q3 2023 compared to Q1-Q3 2022, primarily driven by the decreased government grantsduring the Reporting Period.
2. Asset impairment loss declined 74% during Q1-Q3 2023 compared to Q1-Q3 2022, primarily driven by the decreased inventoryvaluation allowances established according to the lower between the costs and net realizable value.
Changes in key line items of the balance sheet and explanation of why:
1. Construction in progress as at 30 September 2023 declined 38% compared to 1 January 2023, primarily driven by new constructionprojects transferred to fixed assets during the Reporting Period.
Changes in key line items of the cash flow statement and explanation of why:
1. Net cash generated from operating activities declined 25.69% during Q1-Q3 2023 compared to Q1-Q3 2022, primarily driven by thedecreased tax and levy rebates during the Reporting Period.
2. Net cash generated from investing activities rose 87.08% during Q1-Q3 2023 compared to Q1-Q3 2022, primarily driven by theincreased net cash inflows from wealth management and investment, as well as the decreased payments for the construction andacquisition of fixed assets, intangible assets and other long-lived assets during the Reporting Period.
3. Net cash generated from financing activities declined 112.77% during Q1-Q3 2023 compared to Q1-Q3 2022, primarily driven bythe repayment of perpetual bonds and the repurchase of shares during the Reporting Period.II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 1,289,137 (including 1,257,147 A-shareholders and 31,990 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 | 10.65% | 4,063,333,333 | 0 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 6.05% | 2,308,518,791 | 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 | 0 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.75% | 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 |
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | Domestic non-state-owned legal person | 0.92% | 349,999,919 | 0 | N/A | 0 |
| FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled Fund Trust Plan | Domestic non-state-owned legal person | 0.86% | 329,988,907 | 0 | N/A | 0 |
| Xu Lili | Foreign natural person | 0.86% | 328,394,081 | 0 | N/A | 0 |
| Ningxia Risheng High-tech Industry Co., Ltd. | Domestic non-state-owned legal person | 0.83% | 316,525,766 | 0 | N/A | 0 |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class and number | ||||
| Status | 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. | 2,308,518,791 | RMB-denominated ordinary share | 2,308,518,791 | |||
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB-denominated ordinary share | 822,092,180 | |||
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | RMB-denominated ordinary share | 718,132,854 | |||
| 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 | |||
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | 349,999,919 | RMB-denominated ordinary share | 349,999,919 | |||
| FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled Fund Trust Plan | 329,988,907 | RMB-denominated ordinary share | 329,988,907 | |||
| Xu Lili | 328,394,081 | RMB-denominated ordinary share | 328,394,081 | |||
| Ningxia Risheng High-tech Industry Co., Ltd. | 316,525,766 | RMB-denominated ordinary share | 316,525,766 | |||
| Related or acting-in-concert parties among the shareholders above | 1. 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. 2. 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. 3. 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. totally held 316,525,766 shares in the Company, among which, 42,583,700 shares were held via its general securities account and 273,942,066 shares via its customer credit transactions secured securities account in Ping An Securities Co., Ltd. 2. Shareholder Xu Lili totally held 328,394,081 shares in the Company, among which, 6,816,100 shares were held via its general securities account, 248,713,498 shares via its customer credit transactions secured securities account in GF Securities Co., Ltd. and 72,864,483 shares via its customer credit transactions secured securities account in Ping An Securities Co., Ltd. 3. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company increase by 1,130,600 shares due to securities refinancing. 4. Shareholders Beijing State-owned Capital Operation and Management Company Limited, Beijing BOE Investment & Development Co., Ltd., Beijing Jing Guorui SOE Reform and Development Fund (L.P.) and Hefei Jianxiang Investment Co., Ltd. were not involved in securities refinancing. 5. 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 499,999,919 A-shares of the Company via its special repurchase security account, accounting for 1.31%.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□Applicable ? Not applicable
III Other Significant Events? Applicable □ Not applicable
1. The Company held the 15
th Meeting of the 9
th Board of Directors and the 2
nd
Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Sharesto Incentive Objects at the 20
th
Meeting of the 9
th Board of Directors and the 8
th
Meeting of the 9
thSupervisory Committee, the Companydisclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock IncentiveScheme (Announcement No.: 2020-086) on 31 December 2020. Following the approval of the Proposal on the Achievement of LiftingConditions of the First lifting Restriction Period for the Restricted Stock Granted by the Stock Incentive Scheme of 2020 and theFulfillment of the Exercise Conditions for the Stock Option Granted for the First Time, the Proposal on the Repurchase and Write-offof Certain Restricted Shares and the Proposal for the Write-off of Certain Stock Options at the 13
th Meeting of the 10
thBoard ofDirectors and the 4
th Meeting of the 10
th
Supervisory Committee, the Company’s independent directors, lawyers and independentfinancial advisers respectively issued opinions on matters related to stock options and restricted stock incentives. The Companydisclosed the Reminder Announcement on Release and Circulation of Restricted Shares Granted under the 2020 Stock Option andRestricted Stock Incentive Scheme in the First Release Period (Announcement No.: 2023-026) on 7 April 2023. The total number ofincentive targets who meet the conditions for releasing the restricted shares is 746, and the number of restricted shares that can bereleased is 102,260,780 shares, accounting for 0.2677% of the total share capital of the Company at present. The Company disclosedthe Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share Repurchase Price in the 2020Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2023-045) on 29 August 2023. Since theequity distribution of the Company for 2022 has been completed, the restricted stock repurchase price involved in this incentive schemeis adjusted from RMB2.41/share to RMB2.349/share, the exercise price of the first grant of the stock option is adjusted fromRMB5.12/share to RMB5.059/share, and the exercise price of the reserved and granted stock option is adjusted from RMB5.62/shareto RMB5.559/share. Following the approval of the Proposal on the Repurchase and Write-off of Certain Restricted Shares and the
Proposal for the Write-off of Certain Stock Options at the 21
st
Meeting of the 10
th Board of Directors and the 7
th
Meeting of the 10
th
Supervisory Committee, the Company’s independent directors, lawyers and independent financial advisers respectively issued opinionson matters related to stock options and restricted stock incentives.
2. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17
th Meeting of the 10
thBoard of Directors(Announcement No.: 2023-037) that Mr. Fan Yuanning, a non-independent director of the Company had resigned from the position ofnon-independent director and the relevant position in the special committee of the Board of Directors of the Company due to workadjustment, and that Mr. Wu Lishun was nominated by the Company’s actual controller, Beijing Electronics Holdings Co., Ltd., as anon-independent director for the 10
th
Board of Directors of the Company. On 15 August 2023, the Company disclosed theAnnouncement on the Resolutions of the 1
stExtraordinary General Meeting of 2023 (Announcement No.: 2023-041), at which theProposal on the Election of Non-independent Director of the 10
thBoard of Directors of the Company was deliberated and approved,and Mr. Wu Lishun was elected as a non-independent director of the 10
thBoard of Directors of the Company.
3. On 27 August 2020, the Company held the 15
th
Meeting of the 9
thBoard of Directors and approved the Proposal on the Repurchaseof Certain Public Shares of the Company, whereby the Company proposed to use its own funds to repurchase a portion of RMB-denominated ordinary shares (A-Shares) issued by the Company by means of centralized bidding for the purpose of the implementationof the Company’s Equity Incentive Scheme. The implementation of the share repurchase plan of the Company was completed on 3September 2020 and 349,999,933 A-Shares were accumulatively repurchased via centralized bidding. For details, please refer to theAnnouncement on the Completion of the Implementation of the Share Repurchase Plan and the Results of the Implementation(Announcement No.: 2020-058) disclosed by the Company on 5 September 2020. On 21 December 2020, the Company granted321,813,800 restricted shares to 793 incentive targets and details are in the relevant announcement disclosed by the Company on 22December 2020. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17
th meeting of the 10
thBoardof Directors (Announcement No.: 2023-037) and the Announcement on the Cancellation of Certain Treasury Shares in the Company’sSpecial Securities Account for Repurchase (Announcement No.: 2023-038). In accordance with the Rules for the Repurchase of Sharesby Listed Companies and Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 9 - Share Repurchase, theremaining unutilized 28,186,133 shares in the special securities account for repurchase will expire three years from 5 September 2023,and the Company shall cancelled them and handle relevant cancellation procedures in accordance with regulations. On 15 August 2023,the Company disclosed the Announcement on the Resolutions of the 1
stExtraordinary General Meeting of 2023 (Announcement No.:
2023-041) that the Proposal on the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account forRepurchase was deliberated and approved at the meeting. On 31 August 2023, the Company disclosed the Announcement on theCompletion of the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account for Repurchase and ShareChanges (Announcement No.: 2023-050). The aforesaid 28,186,133 treasury shares have been cancelled on 29 August 2023 with theShenzhen branch of China Securities Depository and Clearing Co., Ltd., with the cancelled number of shares, date of completion andterm of retirement all in compliance with the applicable laws and regulations.
| Overview of significant event | Disclosure date | Disclosure website |
| Announcement on the Signing of Supplemental Agreement (III) to the Cooperation Agreement for the Life Science and Technology Industrial Base Project | 10 June 2023 | www.cninfo.com.cn |
| Announcement on Investment and Construction of BOE Vietnam Project | 29 August 2023 | www.cninfo.com.cn |
IV Quarterly Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
30 September 2023
Unit: RMB
| Item | 30 September 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 66,135,392,324.00 | 68,800,307,369.00 |
| Settlement reserve | 0.00 | 0.00 |
| Loans to other banks and financial institutions | 0.00 | 0.00 |
| Held-for-trading financial assets | 8,745,129,728.00 | 17,187,993,936.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 463,318,295.00 | 211,792,061.00 |
| Accounts receivable | 32,727,497,186.00 | 28,203,647,569.00 |
| Receivables financing | 284,182,132.00 | 0.00 |
| Prepayments | 465,635,945.00 | 589,764,680.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Other receivables | 625,258,642.00 | 975,809,236.00 |
| Including: Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 2,669,500.00 | 0.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 26,567,739,644.00 | 22,787,814,225.00 |
| Contract assets | 153,604,281.00 | 71,636,461.00 |
| Assets held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 9,278,563.00 | 8,561,307.00 |
| Other current assets | 3,268,833,918.00 | 3,394,036,919.00 |
| Total current assets | 139,445,870,658.00 | 142,231,363,763.00 |
| 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 | 26,383,073.00 | 28,637,449.00 |
| Long-term equity investments | 13,452,243,146.00 | 12,421,878,851.00 |
| Investments in other equity instruments | 515,979,625.00 | 483,060,306.00 |
| Other non-current financial assets | 2,083,526,411.00 | 2,022,967,681.00 |
| Investment property | 1,363,891,447.00 | 1,122,025,138.00 |
| Fixed assets | 215,729,844,646.00 | 205,987,050,430.00 |
| Construction in progress | 27,022,888,279.00 | 43,386,134,668.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 708,009,635.00 | 687,120,946.00 |
| Intangible assets | 10,348,796,298.00 | 8,948,327,143.00 |
| Development costs | 138,982,731.00 | 0.00 |
| Goodwill | 701,013,959.00 | 660,823,651.00 |
| Long-term prepaid expense | 578,200,173.00 | 556,941,377.00 |
| Deferred income tax assets | 382,605,292.00 | 76,013,149.00 |
| Other non-current assets | 3,157,276,732.00 | 1,955,521,384.00 |
| Total non-current assets | 276,209,641,447.00 | 278,336,502,173.00 |
| Total assets | 415,655,512,105.00 | 420,567,865,936.00 |
| Current liabilities: | ||
| Short-term borrowings | 1,973,934,685.00 | 2,373,938,871.00 |
| 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 | 1,115,985,121.00 | 870,221,538.00 |
| Accounts payable | 32,869,772,003.00 | 29,834,720,464.00 |
| Advances from customers | 88,592,901.00 | 79,848,977.00 |
| Contract liabilities | 2,719,218,659.00 | 2,411,717,792.00 |
| 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 | 3,445,164,602.00 | 2,818,532,823.00 |
| Taxes and levies payable | 1,703,639,735.00 | 1,331,401,188.00 |
| Other payables | 17,687,779,152.00 | 19,632,223,269.00 |
| Including: Interest payable | 169,523.00 | 151,200.00 |
| Dividends payable | 6,451,171.00 | 6,410,514.00 |
| 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 | 23,845,920,855.00 | 22,703,750,744.00 |
| Other current liabilities | 3,575,870,874.00 | 3,613,967,673.00 |
| Total current liabilities | 89,025,878,587.00 | 85,670,323,339.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | 0.00 | 0.00 |
| Long-term borrowings | 122,704,717,482.00 | 123,143,479,690.00 |
| Bonds payable | 0.00 | 0.00 |
| Including: Preference shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 574,453,072.00 | 538,586,010.00 |
| Long-term payables | 209,647,665.00 | 229,587,077.00 |
| Long-term employee benefits payable | 0.00 | 0.00 |
| Provisions | 3,580,000.00 | 0.00 |
| Deferred income | 4,744,551,869.00 | 5,156,347,332.00 |
| Deferred income tax liabilities | 1,506,571,566.00 | 1,289,899,658.00 |
| Other non-current liabilities | 2,502,779,492.00 | 2,499,075,805.00 |
| Total non-current liabilities | 132,246,301,146.00 | 132,856,975,572.00 |
| Total liabilities | 221,272,179,733.00 | 218,527,298,911.00 |
| Owners’ equity: | ||
| Share capital | 38,157,878,678.00 | 38,196,363,421.00 |
| Other equity instruments | 2,025,759,110.00 | 8,176,366,808.00 |
| Including: Preference shares | 0.00 | 0.00 |
| Perpetual bonds | 2,025,759,110.00 | 8,176,366,808.00 |
| Capital reserves | 56,734,629,525.00 | 55,218,504,392.00 |
| Less: Treasury stock | 3,189,463,530.00 | 3,508,201,911.00 |
| Other comprehensive income | -868,805,178.00 | -1,073,768,030.00 |
| Specific reserve | 70,907,696.00 | 0.00 |
| Surplus reserves | 3,241,181,456.00 | 3,241,063,934.00 |
| General reserve | 0.00 | 0.00 |
| Retained earnings | 34,455,292,037.00 | 35,829,351,680.00 |
| Total equity attributable to owners of the Company as the parent | 130,627,379,794.00 | 136,079,680,294.00 |
| Non-controlling interests | 63,755,952,578.00 | 65,960,886,731.00 |
| Total owners’ equity | 194,383,332,372.00 | 202,040,567,025.00 |
| Total liabilities and owners’ equity | 415,655,512,105.00 | 420,567,865,936.00 |
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 2023 | Q1~Q3 2022 |
| 1. Revenues | 126,515,073,265.00 | 132,744,386,975.00 |
| Including: Operating revenue | 126,515,073,265.00 | 132,744,386,975.00 |
| 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 | 129,569,938,404.00 | 132,516,593,803.00 |
| Including: Cost of sales | 112,401,485,781.00 | 114,557,562,318.00 |
| 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 | 832,447,130.00 | 951,347,871.00 |
| Selling expense | 2,844,265,710.00 | 2,656,477,233.00 |
| Administrative expense | 4,263,034,730.00 | 4,654,091,569.00 |
| R&D expense | 8,146,625,989.00 | 8,399,773,016.00 |
| Finance costs | 1,082,079,064.00 | 1,297,341,796.00 |
| Including: Interest expense | 3,049,519,745.00 | 2,278,171,212.00 |
| Interest income | 1,490,881,748.00 | 1,015,483,608.00 |
| Add: Other income | 3,028,949,599.00 | 4,688,391,574.00 |
| Return on investment (“-” for loss) | 708,920,094.00 | 576,119,809.00 |
| Including: Share of profit or loss of joint ventures and associates | 614,405,306.00 | 400,596,521.00 |
| 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) | 126,636,801.00 | 125,006,673.00 |
| Credit impairment loss (“-” for loss) | 15,296,112.00 | -25,742,411.00 |
| Asset impairment loss (“-” for loss) | -1,344,978,071.00 | -5,251,448,489.00 |
| Asset disposal income (“-” for loss) | 12,242,941.00 | 7,913,154.00 |
| 3. Operating profit (“-” for loss) | -507,797,663.00 | 348,033,482.00 |
| Add: Non-operating income | 267,233,438.00 | 135,467,497.00 |
| Less: Non-operating expense | 48,065,446.00 | 48,767,454.00 |
| 4. Gross profit (“-” for loss) | -288,629,671.00 | 434,733,525.00 |
| Less: Income tax expense | 1,107,368,073.00 | 1,769,526,836.00 |
| 5. Net profit (“-” for net loss) | -1,395,997,744.00 | -1,334,793,311.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -1,395,997,744.00 | -1,334,793,311.00 |
| 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) | 1,022,157,403.00 | 5,291,104,216.00 |
| 5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) | -2,418,155,147.00 | -6,625,897,527.00 |
| 6. Other comprehensive income, net of tax | 294,067,594.00 | -1,080,248,241.00 |
| Attributable to owners of the Company as the parent | 206,138,073.00 | -1,074,930,204.00 |
| 6.1 Items that will not be reclassified to profit or loss | 24,851,001.00 | -67,403,720.00 |
| 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 | 11,074,578.00 | -51,358,569.00 |
| 6.1.3 Changes in the fair value of investments in other equity instruments | 13,776,423.00 | -16,045,151.00 |
| 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 | 181,287,072.00 | -1,007,526,484.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 40,654.00 | 73,424.00 |
| 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 | 181,246,418.00 | -1,007,599,908.00 |
| 6.2.7 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | 87,929,521.00 | -5,318,037.00 |
| 7. Total comprehensive income | -1,101,930,150.00 | -2,415,041,552.00 |
| 7.1 Attributable to owners of the Company as the parent | 1,228,295,476.00 | 4,216,174,012.00 |
| 7.2 Attributable to non-controlling interests | -2,330,225,626.00 | -6,631,215,564.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.02 | 0.13 |
| 8.2 Diluted earnings per share | 0.02 | 0.13 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before thecombinations 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 2023 | Q1~Q3 2022 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 128,861,224,373.00 | 149,238,433,709.00 |
| 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 | 7,559,093,705.00 | 15,073,124,057.00 |
| Cash generated from other operating activities | 4,181,752,774.00 | 6,776,267,125.00 |
| Subtotal of cash generated from operating activities | 140,602,070,852.00 | 171,087,824,891.00 |
| Payments for commodities and services | 95,755,057,940.00 | 116,214,674,571.00 |
| 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 | 13,385,072,461.00 | 15,488,498,730.00 |
| Taxes and levies paid | 3,088,503,388.00 | 4,733,280,889.00 |
| Cash used in other operating activities | 5,314,157,308.00 | 3,620,934,400.00 |
| Subtotal of cash used in operating activities | 117,542,791,097.00 | 140,057,388,590.00 |
| Net cash generated from/used in operating activities | 23,059,279,755.00 | 31,030,436,301.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 58,685,205,131.00 | 62,428,998,594.00 |
| Return on investment | 416,695,592.00 | 324,649,377.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 16,546,021.00 | 5,500,981.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 3,102,733,058.00 | 918,167,460.00 |
| Subtotal of cash generated from investing activities | 62,221,179,802.00 | 63,677,316,412.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 15,107,704,462.00 | 21,617,268,503.00 |
| Payments for investments | 50,370,146,815.00 | 68,234,624,848.00 |
| Net increase in pledged loans granted | 0.00 | 0.00 |
| Net payments for the acquisition of subsidiaries and other business units | 165,331,097.00 | 0.00 |
| Cash used in other investing activities | 46,233,055.00 | 664,476,852.00 |
| Subtotal of cash used in investing activities | 65,689,415,429.00 | 90,516,370,203.00 |
| Net cash generated from/used in investing activities | -3,468,235,627.00 | -26,839,053,791.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 1,438,770,202.00 | 4,701,942,329.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 1,438,770,202.00 | 2,701,942,329.00 |
| Borrowings received | 22,403,007,817.00 | 41,532,798,686.00 |
| Cash generated from other financing activities | 47,648,917.00 | 17,184,658.00 |
| Subtotal of cash generated from financing activities | 23,889,426,936.00 | 46,251,925,673.00 |
| Repayment of borrowings | 24,579,665,192.00 | 41,856,013,694.00 |
| Interest and dividends paid | 7,302,357,493.00 | 12,400,683,947.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 76,330,524.00 | 42,013,745.00 |
| Cash used in other financing activities | 13,784,654,546.00 | 2,230,559,147.00 |
| Subtotal of cash used in financing activities | 45,666,677,231.00 | 56,487,256,788.00 |
| Net cash generated from/used in financing activities | -21,777,250,295.00 | -10,235,331,115.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 771,184,697.00 | 1,842,700,102.00 |
| 5. Net increase in cash and cash equivalents | -1,415,021,470.00 | -4,201,248,503.00 |
| Add: Cash and cash equivalents, beginning of the period | 64,382,037,764.00 | 76,623,486,083.00 |
| 6. Cash and cash equivalents, end of the period | 62,967,016,294.00 | 72,422,237,580.00 |
(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation ofthe New Accounting Standards Implemented since 2023
? Applicable □ Not applicableNote to adjustmentsThe Company will make corresponding adjustments to relevant accounting policies in accordance with the Notice on Issuing theInterpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) issued by the Ministry of Finance on 30November 2022 (hereinafter referred to as the "Interpretation No. 16").According to Interpretation No. 16, for single transactions that are not business combinations, that affect neither accounting profit nortaxable income (or deductible losses) at the time the transaction occurs, and where the initial recognition of assets and liabilities resultsin taxable temporary differences and deductible temporary differences of equal amounts (including lease transactions in which thelessee recognises the initial lease liability and includes it in the right to use asset at the commencement date of the lease term, as wellas transactions in which estimated liabilities are recognised and included in the costs of related assets due to fixed assets disposalobligations and other disposal obligations, etc. Hereinafter referred to as single transactions that are applicable to this interpretation),exemption from initial recognition of deferred income tax liabilities and deferred income tax assets under Article XI (II) and Article
XIII of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxes is not applicable. The Company shall recognisethe corresponding deferred income tax liabilities and deferred income tax assets for the taxable temporary differences and deductibletemporary differences arising from the initial recognition of assets and liabilities in respect of the transaction when the transactionoccurs, in accordance with the relevant provisions of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxesand other regulations.According to Interpretation No. 16, the Company started from 1 January 2023 to adjust the retained income brought forward in theearliest period presented in the financial statement and other relevant items of the financial statement based on the accumulated numberof impacts. Interpretation No. 16 has no significant impact on the parent company's financial statement, consolidated income statementand consolidated cash flow statement. The impact on the consolidated balance sheet is as follows:
| Item | 31 December 2022 (Unit: RMB) | ||
| Before | After | Adjusted | |
| Deferred income tax assets | 70,250,425.00 | 76,013,149.00? | 5,762,724.00 |
| Deferred income tax liabilities | 1,274,406,833.00 | 1,289,899,658.00 | 15,492,825.00 |
| Retained earnings | 35,839,081,781.00? | 35,829,351,680.00? | -9,730,101.00 |
(III) 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 Directors31 October 2023