京东方A(000725)_公司公告_京东方B：2023年年度审计报告(英文版)新浪财经

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京东方B：2023年年度审计报告(英文版) （下载公告）

公告日期:2024-04-02

BOE Technology Group Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTSFOR THE YEAR 1 JANUARY 2023 TO 31 DECEMBER 2023IF THERE IS ANY CONFLICT BETWEEN THE CHINESEVERSION AND ITS ENGLISH TRANSLATION,THE CHINESE VERSION WILL PREVAIL

Page 1 of 8

AUDITOR’S REPORT

毕马威华振审字第2404989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 December2023, the consolidated and company income statements, the consolidated and companycash flow statements, the consolidated and company statements of changes in shareholders’equity for the year then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company financial position of BOE as at 31 December 2023, and theconsolidated and company financial performance and cash flows of BOE for the year thenended in accordance with Accounting Standards for Business Enterprises issued by theMinistry of Finance of the People’s Republic of China.

Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing for Certified PublicAccountants (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. Weare independent of BOE in accordance with the China Code of Ethics for Certified PublicAccountants (“the Code”), and we have fulfilled our other ethical responsibilities inaccordance with the Code. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Page 2 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989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” 24 and “V. Notes to the consolidated financial statements” 46.
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, bills of lading, 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, bills of lading, delivery receipts, etc. to evaluate whether revenue is recorded in the appropriate period;

Page 3 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989号

Key Audit Matters (continued)

Revenue recognition (continued)
Refer to Note III. 24 of the accounting policy to the financial statements and Note V. 46 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 confirmation procedures on the balance of accounts receivable as at the balance sheet date and the sales transaction amount during the current year; ? On a sampling basis, check the written-back of revenue after the balance sheet date (including sales discounts and sales returns, etc.) with relevant supporting documents to assess whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents.

Page 4 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989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” 20 and “V. Notes to the consolidated financial statements” 15, 18.
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 2023, the book value of fixed assets and intangible assets amounted to RMB 221，937 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 2023 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate.	Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, assess the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, assess if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry;

Page 5 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989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” 20 and “V. Notes to the consolidated financial statements” 15, 18.
The Key Audit Matter	How the matter was addressed in our audit
We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias.	Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; assess how changes in key assumptions (individually or collectively) will lead to different results and assess whether there are indications of management bias in the selection of key assumptions; ? Consider whether the disclosure of impairment of fixed assets and intangible assets in the financial statements is consistent with relevant accounting policy.

Page 6 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989号

Other Information

BOE’s management is responsible for the other information. The other information comprisesall the information included in 2023 annual report of BOE, other than the financial statementsand our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

Management is responsible for the preparation and fair presentation of the financialstatements in accordance with the Accounting Standards for Business Enterprises, and forthe design, implementation and maintenance of such internal control necessary to enablethat the financial statements are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, management is responsible for assessing BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.

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

Page 7 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989号

Auditor’s Responsibilities for the Audit of the Financial Statements

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

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

? Identify and assess the risks of material misstatement of the financial statements, whether

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

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

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

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

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

Page 8 of 8

AUDITOR’S REPORT (continued)

毕马威华振审字第2404989号

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

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

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

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

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

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

Su Xing (Engagement Partner)

Beijing, China Chai Jing

29 March 2024

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	V.1	72,467,392,718	?	68,800,307,369
Financial assets held for trading	V.2	7,755,964,495	?	17,187,993,936
Bills receivable	V.3	375,577,011	?	211,792,061
Accounts receivable	V.4	33,365,416,490	?	28,203,647,569
Receivables financing	V.5	408,534,622		-
Prepayments	V.6	558,659,780	?	589,764,680
Other receivables	V.7	726,659,207	?	975,809,236
Inventories	V.8	24,119,667,325	?	22,787,814,225
Contract assets	V.9	95,710,742	?	71,636,461
Non-current assets due within one year	?	8,683,381	?	8,561,307
Other current assets	V.10	3,308,338,931	?	3,394,036,919
?	?	?	?	?
Total current assets	?	143,190,604,702	?	142,231,363,763

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Assets (continued)	?	?	?	?
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term receivables	?	3,341,844	?	28,637,449
Long-term equity investments	V.11	13,731,696,627	?	12,421,878,851
Investments in other equity instruments	V.12	494,629,577	?	483,060,306
Other non-current financial assets	V.13	2,253,778,325	?	2,022,967,681
Investment properties	V.14	1,412,553,446	?	1,122,025,138
Fixed assets	V.15	210,371,476,524	?	205,987,050,430
Construction in progress	V.16	29,670,115,546	?	43,386,134,668
Right-of-use assets	V.17	724,344,345	?	687,120,946
Intangible assets	V.18	11,565,585,700	?	8,948,327,143
Development costs	VI.2	166,977,531		-
Goodwill	V.19	704,705,586	?	660,823,651
Long-term deferred expenses	V.20	534,494,564	?	556,941,377
Deferred tax assets	V.21	396,877,020	?	76,013,149
Other non-current assets	V.22	3,965,918,458	?	1,955,521,384
?	?	?	?	?
Total non-current assets	?	275,996,495,093	?	278,336,502,173
?
?	?	?	?	?
Total assets	?	419,187,099,795	?	420,567,865,936

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Short-term loans	V.23	1,746,184,534	?	2,373,938,871
Bills payable	V.24	919,313,033	?	870,221,538
Accounts payable	V.25	32,977,603,351	?	29,834,720,464
Advance payments received	V.26	94,704,981	?	79,848,977
Contract liabilities	V.27	3,000,168,620	?	2,411,717,792
Employee benefits payable	V.28	3,100,911,276	?	2,818,532,823
Taxes payable	V.29	1,317,080,022	?	1,331,401,188
Other payables	V.30	19,487,760,965	?	19,632,223,269
Non-current liabilities due within one year	V.31	24,437,027,442	?	22,703,750,744
Other current liabilities	V.32	3,085,773,591	?	3,613,967,673
?	?	?	?	?
Total current liabilities	?	90,166,527,815	?	85,670,323,339

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	V.33	121,546,339,022	?	123,143,479,690
Lease liabilities	V.34	542,141,496	?	538,586,010
Long-term payables	V.35	171,611,393	?	229,587,077
Provisions	V.36	3,580,000	?	-
Deferred income	V.37	4,763,051,955	?	5,156,347,332
Deferred tax liabilities	V.21	1,694,639,729	?	1,289,899,658
Other non-current liabilities	V.38	2,500,522,066	?	2,499,075,805
?	?	?	?	?
Total non-current liabilities	?	131,221,885,661	?	132,856,975,572
?
?	?	?	?	?
Total liabilities	?	221,388,413,476	?	218,527,298,911
?

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.39	37,652,529,195	?	38,196,363,421
Other equity instruments	V.40	2,043,402,946	?	8,176,366,808
Capital reserve	V.41	52,113,580,746	?	55,224,885,675
Less: Treasury shares	V.42	462,036,240	?	3,508,201,911
Other comprehensive income	V.43	(1,136,997,224)	?	(1,073,768,030)
Special reserve		66,472,402		-
Surplus reserve	V.44	3,571,778,635	?	3,241,063,934
Retained earnings	V.45	35,579,576,607	?	35,829,465,307
?	?	?	?	?
Total equity attributable to shareholders of the Company	?	129,428,307,067	?	136,086,175,204
?	?	?	?	?
Non-controlling interests	?	68,370,379,252	?	65,954,391,821
?	?	?	?	?
Total shareholders’ equity	?	197,798,686,319	?	202,040,567,025
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	419,187,099,795	?	420,567,865,936

????

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand		4,255,943,334	?	7,121,641,234
Accounts receivable	XVI.1	4,870,413,096	?	4,863,665,269
Prepayments	?	4,807,079	?	7,045,311
Other receivables	XVI.2	28,381,628,538	?	19,878,145,375
Inventories	?	19,337,053	?	15,065,947
Other current assets		126,758,000	?	57,226,515
?	?	?	?	?
Total current assets	?	37,658,887,100	?	31,942,789,651
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term equity investments	XVI.3	191,109,201,591	?	214,308,953,020
Investments in other equity instruments	?	62,020,419	?	60,434,464
Other non-current financial assets		1,493,778,324	?	1,416,072,234
Investment properties	?	246,605,801	?	251,870,591
Fixed assets	?	945,373,523	?	921,510,043
Construction in progress	?	612,320,190	?	616,247,335
Right-of-use assets		86,718,376	?	126,373,643
Intangible assets		997,974,193	?	1,122,230,564
Long-term deferred expenses	?	337,051,031	?	384,123,386
Other non-current assets	?	1,740,557,308	?	1,080,322,988
?	?	?	?	?
Total non-current assets	?	197,631,600,756	?	220,288,138,268
?	?	?	?	?
?	?	?	?	?
Total assets	?	235,290,487,856	?	252,230,927,919

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Accounts payable	?	566,941,531	?	312,100,258
Advance payments received		10,542,897	?	14,819,929
Contract liabilities	?	74,594	?	19,200
Employee benefits payable		300,267,423	?	282,792,422
Taxes payable	?	279,057,718	?	139,166,672
Other payables	XVI.4	3,515,995,979	?	4,249,391,146
Non-current liabilities due within one year	?	4,029,679,945	?	2,704,607,119
Other current liabilities	?	77,354,731	?	20,283,257
?	?	?	?	?
Total current liabilities	?	8,779,914,818	?	7,723,180,003
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	XVI.5	44,053,100,000	?	39,557,500,000
Lease liabilities		42,482,289	?	85,830,813
Deferred income		954,798,900	?	1,933,587,746
Deferred tax liabilities		222,201,768	?	111,987,272
Other non-current liabilities		79,800,793,681	?	96,394,661,805
?	?	?	?	?
Total non-current liabilities	?	125,073,376,638	?	138,083,567,636
?
?	?	?	?	?
Total liabilities	?	133,853,291,456	?	145,806,747,639

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.39	37,652,529,195	?	38,196,363,421
Other equity instruments	V.40	2,043,402,946	?	8,176,366,808
Capital reserve	XVI.6	51,741,820,724	?	53,693,627,213
Less: Treasury shares	V.42	462,036,240	?	3,508,201,911
Other comprehensive income	XVI.7	(296,433,056)	?	340,345
Surplus reserve	V.44	3,571,778,635	?	3,241,063,934
Retained earnings	XVI.8	7,186,134,196	?	6,624,620,470
?	?	?	?	?
Total shareholders’ equity	?	101,437,196,400	?	106,424,180,280
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	235,290,487,856	?	252,230,927,919

???

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
I. Operating income	V.46	174,543,445,895	?	178,413,731,179
?	?	?	?	?
II. Less: Operating costs	V.46	152,633,061,367	?	157,530,566,152
Taxes and surcharges	V.47	1,132,985,865	?	1,275,171,339
Selling and distribution expenses	V.48	3,736,940,205	?	4,233,290,297
General and administrative expenses	V.49	5,944,875,540	?	6,247,637,006
Research and development expenses	V.50	11,319,503,088	?	11,100,768,677
Financial expenses	V.51	1,150,310,546	?	2,445,130,575
Including: Interest expenses	?	3,536,889,899	?	3,572,211,438
Interest income	?	2,032,287,888	?	1,483,022,892
Add: Other income	V.52	4,202,333,156	?	5,485,529,324
Investment income	V.53	810,709,642	?	6,094,267,884
Including: Income from investment in associates and joint ventures	?	702,555,344	?	528,103,680
Gains from changes in fair value	V.54	291,542,233	?	159,344,584
Credit losses	V.55	(18,562,198)	?	(51,577,226)
Impairment losses	V.56	(2,406,230,634)	?	(7,304,471,630)
Gains from asset disposals	V.57	13,090,386	?	10,965,556
?	?	?	?	?
III. Operating profit /(loss)	?	1,518,651,869	?	(24,774,375)
?	?	?	?	?
Add: Non-operating income	V.58	383,996,163	?	163,242,857
Less: Non-operating expenses	V.58	69,649,357	?	87,249,543

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
IV. Profit before income tax	?	1,832,998,675	?	51,218,939
?	?	?	?	?
Less: Income tax expenses	V.59	1,463,127,346	?	1,791,720,662
?	?	?	?	?
V. Net profit for the year / (loss)	?	369,871,329	?	(1,740,501,723)
?	?	?	?	?
Shareholders of the Company	?	2,547,435,360	?	7,541,423,198
Non-controlling interests	?	(2,177,564,031)	?	(9,281,924,921)

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
VI. Other comprehensive income, net of tax	V.43	(18,318,697)	?	(1,158,016,792)
?	?	?	?	?
Other comprehensive income (net of tax) attributable to owners of the Company	?	(114,919,973)	?	(1,164,537,236)
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	(302,258,742)	?	(53,367,649)
2. Changes in fair value of investments in other equity instruments	?	4,408,730	?	(79,547,426)
(2) Items that may be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	38,009	?	127,867
2. Translation differences arising from translation of foreign currency financial statements	?	182,892,030	?	(1,031,750,028)
Other comprehensive income (net of tax) attributable to non-controlling interests	?	96,601,276	?	6,520,444

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
VII. Total comprehensive income for the year	?	351,552,632	?	(2,898,518,515)
?	?	?	?	?
Attributable to shareholders of the Company	?	2,432,515,387	?	6,376,885,962
Attributable to non-controlling interests	?	(2,080,962,755)	?	(9,275,404,477)
?	?	?	?	?
VIII. Earnings per share:	?	?	?	?
(1) Basic earnings per share	V.60	0.06	?	0.19
(2) Diluted earnings per share	V.60	Not applicable	?	Not applicable

???

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
I. Operating income	XVI.9	4,708,465,987	?	4,873,328,715
?	?	?	?	?
II. Less: Operating costs	?XVI.9	12,627,567	?	10,080,268
Taxes and surcharges		43,605,220	?	55,342,015
General and administrative expenses	?	1,332,250,430	?	1,348,187,653
Research and development expenses		2,128,570,079	?	2,046,032,751
Financial expenses		480,003,968	?	574,596,105
Including: Interest expenses		545,603,838	?	631,737,202
Interest income		71,059,318	?	96,658,931
Add: Other income		951,291,761	?	948,637,354
Investment income	XVI.10	1,991,483,354	?	1,934,087,931
Including: Income from investment in associates and joint ventures	?	429,364,809	?	328,861,860
Gains from changes in fair value		49,498,773	?	-
Credit losses	?	5,490,866	?	(18,126,642)
Losses from asset disposals	?	5,077,109	?	-
?	?	?	?	?
III. Operating profit	?	3,714,250,586	?	3,703,688,566
?	?	?	?	?
Add: Non-operating income	?	3,921,345	?	6,873,424
Less: Non-operating expenses	?	6,859,836	?	26,617,581
?	?	?	?	?
IV. Profit before income tax	?	3,711,312,095	?	3,683,944,409
?	?	?	?	?
Less: Income tax expenses		405,340,309	?	202,080,897
?	?	?	?	?
V. Net profit for the year	?	3,305,971,786	?	3,481,863,512

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
VI. Other comprehensive income, net of tax	XVI.7	(295,598,180)	?	(55,810,525)
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	(302,258,742)	?	(53,367,649)
2. Changes in fair value of investments in other equity instruments	?	6,660,562	?	(2,570,743)
(2) Items that may be reclassified to profit or loss	?	-	?	127,867
?	?	?	?	?
VII. Total comprehensive income for the year	?	3,010,373,606	?	3,426,052,987

???

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	180,947,736,116	?	193,327,661,415
Refund of taxes	?	10,373,888,040	?	17,259,338,469
Proceeds from other operating activities	V.61(1)a?	6,145,484,931	?	7,397,264,096
?	?	?	?	?
Sub-total of cash inflows	?	197,467,109,087	?	217,984,263,980
?	?	?	?	?
Payment for goods and services	?	(129,474,896,348)	?	(142,617,274,685)
Payment to and for employees	?	(18,253,350,198)	?	(19,821,022,609)
Payment of various taxes	?	(3,823,925,586)	?	(5,394,897,972)
Payment for other operating activities	? V.61(1)b	(7,613,110,071)	?	(7,129,101,409)
?	?	?	?	?
Sub-total of cash outflows	?	(159,165,282,203)	?	(174,962,296,675)

?	?	?	?	?
Net cash flows generated from operating activities	V.62(1)	38,301,826,884	?	43,021,967,305

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	70,648,492,540	?	83,038,823,137
Investment returns received	?	569,248,170	?	461,543,173
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	?	62,750,260	?	26,645,620
Net proceeds for acquisition of subsidiaries	V.62(2)?	59,293,141		-
Net proceeds from disposal of subsidiaries	? V.62(2)	-	?	936,758,922
Proceeds from other investing activities	? V.61(2) a	3,940,488,690	?	1,311,942,470
?	?	?	?	?
Sub-total of cash inflows	?	75,280,272,801	?	85,775,713,322
?	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(24,807,796,061)	?	(29,398,245,045)
Payment for acquisition of investments	?	(79,608,953,781)	?	(92,205,577,385)
Net payment for acquisition of subsidiaries	V.62(2)?	(165,333,139)	?	-
Net payment for disposal of subsidiaries	V.62(2)?	-	?	(144,689,766)
?	?	?	?	?
Sub-total of cash outflows	?	(104,582,082,981)	?	(121,748,512,196)
?	?	?	?	?
?	?	?	?	?
Net cash flows used in investing activities	?	(29,301,810,180)	?	(35,972,798,874)

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
III. Cash flows from financing activities:	?	?	?	?
Proceeds from investors	?	3,291,140,600	?	2,301,848,242
Including: Proceeds from non-controlling shareholders of subsidiaries	?	3,291,140,600	?	2,301,848,242
Proceeds from issuance of debentures	?	-	?	2,000,000,000
Proceeds from borrowings	?	27,341,860,631	?	49,812,750,352
Proceeds from other financing activities	? V.61(3)a	-	?	771,327,623
?	?	?	?	?
Sub-total of cash inflows	?	30,633,001,231	?	54,885,926,217

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
III. Cash flows from financing activities (continued):	?	?	?	?
Repayments of borrowings	?	(30,091,893,380)	?	(51,681,667,124)
Payment for redeeming bonds	?	(6,000,000,000)	?	(8,000,000,000)
Payment for dividends or interest	?	(8,306,333,083)	?	(13,828,515,479)
Including: Profits paid to non-controlling shareholders of subsidiaries	?	(72,650,624)	?	(39,388,061)
Payment for other financing activities	V.61(3) b?	(7,896,143,409)	?	(2,548,995,476)
?	?	?	?	?
Sub-total of cash outflows	?	(52,294,369,872)	?	(76,059,178,079)
?
?	?	?	?	?
Net cash flow used in financing activities	?	(21,661,368,641)	?	(21,173,251,862)
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	372,295,921	?	1,882,635,112
?
?	?	?	?	?
V. Net decrease in cash and cash equivalents	V.62(1) b	(12,289,056,016)	?	(12,241,448,319)
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	64,382,037,764	?	76,623,486,083
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	V.62(3)	52,092,981,748	?	64,382,037,764

???

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2023(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	4,312,367,550	?	5,650,186,755
Proceeds from other operating activities	?	622,801,775	?	2,005,413,901
?	?	?	?	?
Sub-total of cash inflows	?	4,935,169,325	?	7,655,600,656
?	?	?	?	?
Payment for goods and services	?	(1,098,622,995)	?	(1,161,216,577)
Payment to and for employees	?	(1,333,331,329)	?	(1,681,332,214)
Payment of various taxes	?	(433,065,340)	?	(676,007,600)
Payment for other operating activities	?	(1,099,330,089)	?	(452,287,489)
?	?	?	?	?
Sub-total of cash outflows	?	(3,964,349,753)	?	(3,970,843,880)
?	?	?	?	?
?	?	?	?	?
Net cash flows generated from operating activities	XVI.11(1)	970,819,572	?	3,684,756,776
?	?	?	?	?
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	1,200,350,000	?	330,944,027
Proceeds from disposal of subsidiaries	?	-	?	-
Investment returns received	?	955,365,976	?	1,257,584,843
Net proceeds from disposal of fixed assets	?	682,093	?	241,034
Proceeds from other investing activities	?	1,260,912,332	?	10,546,180,253
?	?	?	?	?
Sub-total of cash inflows	?	3,417,310,401	?	12,134,950,157

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
II. Cash flows from investing activities (continued):	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(618,917,399)	?	(405,565,299)
Payment for acquisition of investments	?	(16,691,342,703)	?	(3,989,687,433)
Payment for other investing activities	?	(5,468,000,000)	?	(14,117,701,133)
?	?	?	?	?
Sub-total of cash outflows	?	(22,778,260,102)	?	(18,512,953,865)
?	?	?	?	?
?	?	?	?	?
Net cash flows used in investing activities	?	(19,360,949,701)	?	(6,378,003,708)
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from issuance of debentures	?	-	?	2,000,000,000
Proceeds from borrowings	?	10,000,000,000	?	25,000,000,000
Proceeds from other financing activities	?	19,830,000,000	?	24,936,039,463
?	?	?	?	?
Sub-total of cash inflows	?	29,830,000,000	?	51,936,039,463
?	?	?	?	?
Repayments of borrowings	?	(4,184,100,000)	?	(25,827,547,455)
Payment for redeeming bonds	?	(6,000,000,000)	?	(8,000,000,000)
Payment for dividends and interest	?	(3,751,590,381)	?	(9,842,819,608)
Payment for other financing activities	?	(397,385,776)	?	(4,136,747,868)
?	?	?	?	?
Sub-total of cash outflows	?	(14,333,076,157)	?	(47,807,114,931)
?
?	?	?	?	?
Net cash flows generated from financing activities	?	15,496,923,843	?	4,128,924,532

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

?	Note	2023	?	2022
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	30,657,074	?	76,264,084
?
?	?	?	?	?
V. Net (decrease) / increase in cash and cash equivalents	XVI.11(1)	(2,862,549,212)	?	1,511,941,684
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	7,111,879,033	?	5,599,937,349
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	XVI.11(2)	4,249,329,821	?	7,111,879,033

????

These financial statements were approved by the Board of Directors of the Company on 29March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Special reserve

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

I. Balance at the beginning of the year

38,196,363,421

8,176,366,808

55,224,885,675

3,508,201,911

(1,073,768,030)

3,241,063,934

35,829,465,307

136,086,175,204

65,954,391,821

202,040,567,025

II. Changes in equity during the year

1. Total comprehensive income

(114,919,973)

2,547,435,360

2,432,515,387

(2,080,962,755)

351,552,632

2. Shareholders’ contributions of capital

(1) Contribution by non-controlling interests

3,291,140,600

(2) Cancellation of treasury shares

V. 39/41/42

(543,834,226)

(2,244,946,976)

(2,788,781,202)

(3) Equity-settled share-based payments

XII

309,120,206

(257,384,469)

566,504,675

22,319,221

588,823,896

(4) Payment for capital of holders of other equity instruments

V. 40

(5,967,915,094)

(32,084,906)

(6,000,000,000)

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 44

330,597,179

(330,597,179)

(2) Accrued interest on holders of other equity instruments

V. 40

118,551,232

(118,551,232)

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

V. 40

(283,600,000)

(4) Distributions to shareholders

V. 45

(2,296,367,348)

(106,934,768)

(2,403,302,116)

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Special reserve

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

V. 43/44/45

51,690,779

117,522

(51,808,301)

5. Special reserve

(1) Accrued special reserve

209,367,057

42,370,558

251,737,615

(2) Used special reserve

(142,894,655)

(29,280,043)

(172,174,698)

6. Others

(1) Other movements in equity of associates

V. 11/41

61,662,689

1,229,195

62,891,884

(2) Others

V. 41

(1,205,055,942)

1,276,105,423

71,049,481

III. Balance at the end of the year

37,652,529,195

2,043,402,946

52,113,580,746

462,036,240

(1,136,997,224)

66,472,402

3,571,778,635

35,579,576,607

129,428,307,067

68,370,379,252

197,798,686,319

???

These financial statements were approved by the Board of Directors of the Company on 29 March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

I. Balance at the beginning of the year

38,445,746,482

14,146,997,427

53,917,609,094

3,415,768,207

113,551,147

2,889,590,205

37,106,514,799

143,204,240,947

74,174,525,569

217,378,766,516

Add: Changes in accounting policies

(161,882)

(6,241,664)

(6,403,546)

Adjusted balance at the beginning of the year

38,445,746,482

14,146,997,427

53,917,609,094

3,415,768,207

113,551,147

2,889,590,205

37,106,352,917

143,204,079,065

74,168,283,905

217,372,362,970

II. Changes in equity during the year

1. Total comprehensive income

(1,164,537,236)

7,541,423,198

6,376,885,962

(9,275,404,477)

(2,898,518,515)

2. Shareholders’ contributions of capital

(1) Contribution by non-controlling interests

2,301,848,242

(2) Repurchase of treasury shares

V. 42

1,048,154,539

(1,048,154,539)

(3) Cancellation of treasury shares

V. 39/41/42

(249,383,061)

(641,811,942)

(891,195,003)

(4) Equity-settled share-based payments

XII

654,336,707

(64,525,832)

718,862,539

44,728,854

763,591,393

(5) Contribution by holders of other equity instruments

V. 40

1,989,320,755

(6) Payment for capital of holders of other equity instruments

V. 40

(7,957,047,264)

(42,952,736)

(8,000,000,000)

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 44

348,186,351

(348,186,351)

(2) Accrued interest on holders of other equity instruments

V. 40

530,695,890

(530,695,890)

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

V. 40

(533,600,000)

(4) Distributions to shareholders

V. 45

(7,958,923,130)

(54,411,212)

(8,013,334,342)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

V. 43/44/45

(22,781,941)

3,287,378

19,494,563

5. Others

(1) Other movements in equity of associates

V. 11/41

274,685,689

845,261

275,530,950

(2) Disposal of equities in subsidiaries

V. 41

(1,154,255,778)

(3) Others

V. 41

1,063,018,863

(77,242,974)

985,775,889

III. Balance at the end of the year

38,196,363,421

8,176,366,808

55,224,885,675

3,508,201,911

(1,073,768,030)

3,241,063,934

35,829,465,307

136,086,175,204

65,954,391,821

202,040,567,025

These financial statements were approved by the Board of Directors of the Company on 29 March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023(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

38,196,363,421

8,176,366,808

53,693,627,213

3,508,201,911

340,345

3,241,063,934

6,624,620,470

106,424,180,280

II. Changes in equity during the year

1. Total comprehensive income

(295,598,180)

3,305,971,786

3,010,373,606

2. Shareholders’ contributions of capital

(1) Cancellation of treasury shares

V. 39/41/42

(543,834,226)

(2,244,946,976)

(2,788,781,202)

(2) Equity-settled share-based payments

XII

331,439,427

(257,384,469)

588,823,896

(3) Payment for capital of holders of other equity instruments

V. 40

(5,967,915,094)

(32,084,906)

(6,000,000,000)

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 44

330,597,179

(330,597,179)

(2) Accrued interest on holders of other equity instruments

V. 40

118,551,232

(118,551,232)

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

V. 40

(283,600,000)

(4) Distributions to shareholders

V. 45

(2,296,367,348)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023 (continued)(Expressed in Renminbi Yuan)

These financial statements were approved by the Board of Directors of the Company on 29 March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022 (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

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

II. Changes in equity during the year

1. Total comprehensive income

(55,810,525)

3,481,863,512

3,426,052,987

2. Shareholders’ contributions of capital

(1) Repurchase of treasury shares

V. 42

1,048,154,539

(1,048,154,539)

(2) Cancellation of treasury shares

V. 39/41/42

(249,383,061)

(641,811,942)

(891,195,003)

(3) Equity-settled share-based payments

XII

699,065,561

(64,525,832)

763,591,393

(4) Contribution by holders of other equity instruments

V. 40

1,989,320,755

(5) Payment for capital of holders of other equity instruments

V. 40

(7,957,047,264)

(42,952,736)

(8,000,000,000)

3. Appropriation of profits

(1) Appropriation for surplus reserve

V. 44

348,186,351

(348,186,351)

(2) Accrued interest on holders of other equity instruments

V. 40

530,695,890

(530,695,890)

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

V. 40

(533,600,000)

(4) Distributions to shareholders

V. 45

(7,958,923,130)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022 (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. 7/8

(32,873,780)

3,287,378

29,586,402

5. Others

(1) Other movements in equity of associates

XVI. 3/6

141,386,796

(2) Others

(60,093,618)

III. Balance at the end of the year

38,196,363,421

8,176,366,808

53,693,627,213

3,508,201,911

340,345

3,241,063,934

6,624,620,470

106,424,180,280

These financial statements were approved by the Board of Directors of the Company on 29 March 2024.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao 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 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)

I. Company status

BOE Technology Group Company Limited (the “Company”) is a company limited by sharesestablished on 9 April 1993 in Beijing, with its head office located at Beijing. The parent ofthe Company and the Company’s ultimate holding company is Beijing Electronics HoldingsCo., Ltd. (“Electronics Holdings”).

The Company and its subsidiaries (referred to as the “Group”) comprise five main businesssegments: display business, Internet of Things (IoT) innovation business, sensor business,MLED business, smart medicine engineering business and others. For information about thesubsidiaries of the Company, refer to Note VIII.

II. Basis of preparation

The financial statements have been prepared on the going concern basis.

III. Significant accounting policies and accounting estimates

1 Statement of compliance

The financial statements have been prepared in accordance with the requirements ofAccounting Standards for Business Enterprises or referred to as China AccountingStandards (“CAS”) issued by the MOF. These financial statements present truly andcompletely the consolidated financial position and financial position of the Company as at 31December 2023, and the consolidated financial performance and financial performance andthe consolidated cash flows and cash flows of the Company for the year then ended.

These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 2023.

2 Accounting period

The accounting period is from 1 January to 31 December.

3 Operating cycle

The Company takes the period from the acquisition of assets for processing to until theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is usually less than 12 months.

4 Functional currency

The Company’s functional currency is Renminbi and these financial statements arepresented in Renminbi. Functional currency is determined by the Company and itssubsidiaries on the basis of the currency in which major income and costs are denominatedand settled. Some of the Company’s subsidiaries have functional currencies that are differentfrom the Company’s functional currency. Their financial statements have been translatedbased on the accounting policy set out in Note III (9).

5 Method used to determine the materiality threshold and the basis for selection

Items		Materiality threshold

Significant receivables for which provisions for bad and doubtful are individually assessed recoveries or reversals and written-offs		Amount of the individual accounts receivable ≥ RMB50 million
Significant prepayments, contract liabilities, accounts payable and other payables with ageing of more than one year		Amount of the individual prepayments exceeds 0.5% of the Group’s total assets
Significant construction projects in progress		Accumulated carrying amount of individual item at the end of the period exceeds RMB10 billion
Significant non-wholly-owned subsidiaries，joint ventures or associates		Total assets of non-wholly-owned subsidiaries exceed 10% of the Group’s total assets or total revenue of non-wholly-owned subsidiaries exceed 10% of the Group’s total revenue
Significant capitalised R&D projects		Accumulated expenditure of individual R&D project exceeds 0.5% of the Group’s total assets

6 Accounting treatments for business combinations involving entities under common control

and not under common control

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

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

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

(1) Business combinations involving entities under common control

A business combination involving entities under common control is a business combination inwhich all of the combining entities are ultimately controlled by the same party or parties bothbefore and after the business combination, and that control is not transitory. The assetsacquired and liabilities assumed are measured based on their carrying amounts in the

consolidated financial statements of the ultimate controlling party at the combination date.The difference between the carrying amount of the net assets acquired and the considerationpaid for the combination (or the total par value of shares issued) is adjusted against sharepremium in the capital reserve, with any excess adjusted against retained earnings. Anycosts directly attributable to the combination are recognised in profit or loss when incurred.The combination date is the date on which one combining entity obtains control of othercombining entities.

(2) Business combinations involving entities not under common control

A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. Where (1) the aggregate ofthe acquisition-date fair value of assets transferred (including the acquirer’s previously heldequity interest in the acquiree), liabilities incurred or assumed, and equity securities issuedby the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest inthe acquisition-date fair value of the acquiree’s identifiable net assets, the difference isrecognised as goodwill (see Note III.18). If (1) is less than (2), the difference is recognised inprofit or loss for the current period. The costs of issuing equity or debt securities as a part ofthe consideration for the acquisition are included in the carrying amounts of these equity ordebt securities upon initial recognition. Other acquisition-related costs are expensed whenincurred. Any difference between the fair value and the carrying amount of the assetstransferred as consideration is recognised in profit or loss. The acquiree’s identifiable asset,liabilities and contingent liabilities, if the recognition criteria are met, are recognised by theGroup at their acquisition-date fair value. The acquisition date is the date on which theacquirer obtains control of the acquiree.

For a business combination involving entities not under common control and achieved instages, the Group remeasures its previously-held equity interest in the acquiree to itsacquisition-date fair value and recognises any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. In addition, any amount recognised in other comprehensive income and otherchanges in the owners’ equity under equity accounting in prior reporting periods relating tothe previously-held equity interest that may be reclassified to profit or loss are transferred toinvestment income at the date of acquisition (see Note III.12(2)(b)); Any previously-heldequity interest that is designated as equity investment at fair value through othercomprehensive income, the other comprehensive income recognised in prior reportingperiods is transferred to retained earnings and surplus reserve at the date of acquisition.

7 Consolidated financial statements

(1) General principles

The scope of consolidated financial statements is based on control and the consolidatedfinancial statements comprise the Company and its subsidiaries. Control exists when theinvestor has all of following: power over the investee; exposure, or rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered. The financial position, financialperformance and cash flows of subsidiaries are included in the consolidated financialstatements from the date that control commences until the date that control ceases.

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

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

When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company makes necessary adjustments to the financial statements of thesubsidiary based on the Company’s own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in thefinancial statements.

(2) Subsidiaries acquired through a business combination

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities under common control, the financial statements of thesubsidiary are included in the consolidated financial statements based on the carryingamounts of the assets and liabilities of the subsidiary in the financial statements of theultimate controlling party as if the combination had occurred at the date that the ultimatecontrolling party first obtained control. The opening balances and the comparative figures ofthe consolidated financial statements are also restated.

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities not under common control, the identifiable assets and liabilitiesof the acquired subsidiaries are included in the scope of consolidation from the date thatcontrol commences, based on the fair value of those identifiable assets and liabilities at theacquisition date.

(3) Disposal of subsidiaries

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

When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundledtransaction:

- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it is economicallyjustified when considered together with other arrangements.

If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment in subsidiarieswhere control is retained (see Note III.7(4)).

If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in the loss of control in the subsidiary, these multiple transactions are accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss ofcontrol shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.

(4) Changes in non-controlling interests

Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change incontrol, the difference between the proportion interests of the subsidiary’s net assets beingacquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjustedto retained earnings.

8 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw ondemand, and short-term, highly liquid investments that are readily convertible into knownamounts of cash and are subject to an insignificant risk of change in value.

9 Foreign currency transactions and translation of foreign currency financial statements

When the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates onthe dates of the transactions.

Monetary items denominated in foreign currencies are translated to Renminbi at the spotexchange rate at the balance sheet date. The resulting exchange differences are generallyrecognised in profit or loss, unless they arise from the re-translation of the principal andinterest of specific borrowings for the acquisition and construction of qualifying assets (seeNote III.16). Non-monetary items that are measured at historical cost in foreign currenciesare translated to Renminbi using the exchange rate at the transaction date. Non-monetaryitems that are measured at fair value in foreign currencies are translated using the exchangerate at the date the fair value is determined. The resulting exchange differences arerecognised in profit or loss, except for the differences arising from the re-translation of equityinvestments at fair value through other comprehensive income, which are recognised in othercomprehensive income.

In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding retained earnings and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses of foreign operation are translated to Renminbi atthe rates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.

10 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.12),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 transaction pricein accordance with Note III.24.

(2) Classification and subsequent measurement of financial assets

(a) Classification of financial assets

The classification of financial assets is generally based on the business model in whicha financial asset is managed and its contractual cash flow characteristics. On initialrecognition, a financial asset is classified as measured at amortised cost, at fair valuethrough other comprehensive income (“FVOCI”), or at fair value through profit or loss(“FVTPL”).

Financial assets are not reclassified subsequent to their initial recognition unless theGroup changes its business model for managing financial assets in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.

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

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

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

- it is held within a business model whose objective is achieved by both collecting

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

payments of principal and interest on the principal amount outstanding.

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

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

The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets or both.The Group determines the business model for managing the financial assets accordingto the facts and based on the specific business objective for managing the financialassets determined by the Group’s key management personnel.

In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For the purposesof this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and forthe credit risk associated with the principal amount outstanding during a particularperiod of time and for other basic lending risks and costs, as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term thatcould change the timing or amount of contractual cash flows such that it would notmeet this condition.

(b) Subsequent measurement of financial assets

- Financial assets at FVTPL

These financial assets are subsequently measured at fair value. Net gains andlosses, including any interest or dividend income, are recognised in profit or lossunless the financial assets are part of a hedging relationship.

- Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effectiveinterest method. A gain or loss on a financial asset that is measured at amortisedcost and is not part of a hedging relationship shall be recognised in profit or losswhen the financial asset is derecognised, reclassified, through the amortisationprocess or in order to recognise impairment gains or losses.

- Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, impairment and foreign exchange gains andlosses are recognised in profit or loss. Other net gains and losses are recognised inother comprehensive income. On derecognition, gains and losses accumulated inother comprehensive income are reclassified to profit or loss.

- Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognised asincome in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.

(3) Classification and subsequent measurement of financial liabilities

Financial liabilities are classified as measured at FVTPL or amortised cost.

- Financial liabilities at FVTPL

A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liability) or it is designated as such on initial recognition.

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

- Financial liabilities at amortised cost

These financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.

(4) Offsetting

Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset and thenet amount is presented in the balance sheet when both of the following conditions aresatisfied:

- The Group currently has a legally enforceable right to set off the recognised amounts；- The Group intends either to settle on a net basis, or to realise the financial asset andsettle the financial liability simultaneously.

(5) Derecognition of financial assets and financial liabilities

Financial asset is derecognised when one of the following conditions is met:

- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of therisks and rewards of ownership of the financial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retains

substantially all of the risks and rewards of ownership of the financial asset, it does notretain control over the transferred asset.

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

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

derecognition;- the sum of the consideration received from the transfer and, when the transferred financialasset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognised directly in other comprehensive income for the part derecognised.

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

(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 receivables

Financial assets measured at fair value, including debt investments or equity securities atFVTPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as thepresent value of all cash shortfalls (i.e. the difference between the cash flows due to theentity in accordance with the contract and the cash flows that the Group expects to receive).

The maximum period considered when estimating ECLs is the maximum contractual period(including extension options) over which the Group is exposed to credit risk.

Lifetime ECLs are the ECLs that result from all possible default events over the expected lifeof a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possiblewithin the 12 months after the balance sheet date (or a shorter period if the expected life ofthe instrument is less than 12 months).

Loss allowances for bills receivable, accounts receivable, receivables under financing andcontract assets arising from ordinary business activities such as sale of goods and provisionof services, as well as lease receivables arising from lease transactions are alwaysmeasured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimatedusing a provision matrix based on the Group’s historical credit loss experience, adjusted forfactors that are specific to the debtors and an assessment of both the current and forecastgeneral economic conditions at the balance sheet date.

Except for bills receivable, accounts receivable, receivables under financing, contract assets,and lease receivables, the Group measures loss allowances at an amount equal to 12-monthECLs for the following financial instruments, and at an amount equal to lifetime ECLs for allother 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 initial

recognition.

Provisions for bad and doubtful debts arising from receivables

Categories of groups for collective assessment based on credit risk characteristics and basisfor determination

Item	classification of partition and combination
Bills receivable	Based on the different credit risk characteristics of acceptors, the Group classifies bills receivable into two groups: bank acceptance bills and commercial acceptance bills.
Accounts receivable	Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group classifies accounts receivable into three groups, specifically: receivables from customers with high credit risk, receivables from customers with low credit risk and receivables from customers with medium credit risk.
Receivables under financing	The Group’s receivables under financing are bank acceptance bills held for dual purposes. As the accepting banks have high credit ratings, the Group considers all receivables under financing as a single group.
Other receivables	The Group’s other receivables mainly include cash pledges and deposits receivable, petty cash receivables due from employees, receivables due from related parties, dividends receivable, etc. Based on the nature of receivables and the credit risk characteristics of different counterparties, the Group classifies other receivables into three groups, specifically: receivables with high credit risk, receivables with low credit risk and receivables with medium credit risk.
Contract assets	Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group makes provisions for bad and doubtful debts arising from contract assets on the basis of all customers being one group without further segmentation by different customer types.

Financial instruments that have low credit risk

The credit risk on a financial instrument is considered low if the financial instrument has a lowrisk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.

Significant increases in credit risk

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

When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:

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

Depending on the nature of the financial instruments, the assessment of a significantincrease in credit risk is performed on either an individual basis or a collective basis. Whenthe assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.

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

Credit-impaired financial assets

At each balance sheet date, the Group assesses whether financial assets carried atamortised cost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired’ when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:

- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of financialdifficulties.

Presentation of allowance for ECL

ECLs are remeasured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognisedas an impairment gain or loss in profit or loss. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognised in other comprehensive income,other thanoffsetting the carrying amount.

Write-off

The gross carrying amount of a financial asset is written-off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written-off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.

Subsequent recoveries of an asset that was previously written-off are recognised as areversal of impairment in profit or loss in the period in which the recovery occurs.

(7) Equity instrument

The consideration received from the issuance of equity instruments net of transaction costsis recognised in shareholders’ equity. Consideration and transaction costs paid by theCompany for repurchasing self-issued equity instruments are deducted from shareholders’equity.

When the Company repurchases its own shares, those shares are treated as treasuryshares. All expenditure relating to the repurchase is recorded in the cost of the treasuryshares, with the transaction recording in the share register. Treasury shares are excludedfrom profit distributions and are presented as a deduction under shareholders’ equity in thebalance sheet.

When treasury shares are cancelled, the share capital should be reduced to the extent of thetotal par value of the treasury shares cancelled. Where the cost of the treasury sharescancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury sharescancelled is less than the total par value, the difference is credited to the capital reserve(share premium).

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

(8) Perpetual bonds

At initial recognition, the Group classifies the perpetual bonds issued or their components asfinancial assets, financial liabilities or equity instruments based on their contractual terms andtheir economic substance after considering the definition of financial assets, financialliabilities and equity instruments.

Perpetual bonds issued that should be classified as equity instruments are recognised inequity based on the actual amount received. Any distribution of dividends or interests duringthe instruments’ duration is treated as profit appropriation. When the perpetual bonds areredeemed according to the contractual terms, the redemption price is charged to equity.

11 Inventories

(1) Inventory classification

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

Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase,costs of conversion and other expenditure incurred in bringing the inventories to their presentlocation and condition. In addition to the purchase cost of raw materials, work in progressand finished goods include direct labour costs and an appropriate allocation of productionoverheads.

(2) Issuance valuation methods

Cost of inventories recognised is calculated using the weighted average method.

(3) Inventory system

The Group maintains a perpetual inventory system.

(4) Amortization method for low-value consumables and packing materials

Low-value consumables and working capital materials such as packaging are amortizedusing the lump-sum transfer method and are included in the cost of the related assets or inprofit or loss for the current period.

(5) Confirmation criteria and method for provision for obsolete inventories

At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue.

Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes. The net realisable value of materials held for use in the production ismeasured based on the net realisable value of the finished goods in which they will beincorporated. The net realisable value of the inventory held to satisfy sales or servicecontracts is measured based on the contract price, to the extent of the quantities specified insales contracts, and the excess portion of inventories is measured based on general sellingprices.

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

12 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 of thecarrying amount of the subsidiary’s equity in the consolidated financial statements ofthe ultimate controlling party at the combination date. The difference between theinitial investment cost and the carrying amount of the consideration given is adjustedto the share premium in the capital reserve, with any excess adjusted to retainedearnings. For a long-term equity investment in a subsidiary acquired through abusiness combination achieved in stages which do not form a bundled transactionand involving entities under common control, the Company determines the initialcost of the investment in accordance with the above policies. The differencebetween this initial cost and the sum of the carrying amount of previously-heldinvestment and the consideration paid for the shares newly acquired is adjusted tocapital premium in the capital reserve, with any excess adjusted to retainedearnings.

- For a long-term equity investment obtained through a business combination notinvolving entities under common control, the initial cost comprises the aggregate ofthe fair value of assets transferred, liabilities incurred or assumed, and equitysecurities issued by the Company, in exchange for control of the acquiree. For along-term equity investment obtained through a business combination not involvingentities under common control and achieved through multiple transactions in stageswhich do not form a bundled transaction, the initial cost comprises the carryingamount of the previously-held equity investment in the acquiree immediately beforethe acquisition date, and the additional investment cost at the acquisition date.

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

- A long-term equity investment acquired other than through a business combination

is initially recognised at the amount of cash paid if the Group acquires theinvestment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.

(2) Subsequent measurement of long-term equity investment

(a) Investments in subsidiaries

In the Company’s separate financial statements, long-term equity investments insubsidiaries are accounted for using the cost method for subsequent measurementunless the investment is classified as held for sale (see Note III.31). Except for cashdividends or profit distributions declared but not yet distributed that have been includedin the price or consideration paid-in obtaining the investments, the Companyrecognises its share of the cash dividends or profit distributions declared by theinvestee as investment income for the current period.

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

For the impairment of the investments in subsidiaries, refer to Note III.20.

In the Group’s consolidated financial statements, subsidiaries are accounted for inaccordance with the policies described in Note III.7.

(b) Investment in joint ventures and associates

A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.12(3)) and rights to the net assets of the arrangement.

An associate is an entity over which the Group has significant influence (see NoteIII.12(3)).

An investment in a joint venture or an associate is accounted for using the equitymethod for subsequent measurement, unless the investment is classified as held forsale (see Note III.31).

The accounting treatments under the equity method adopted by the Group are asfollows:

- Where the initial cost of a long-term equity investment exceeds the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognised at cost. Where the initial investment cost is lessthan the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s shareof the fair value of the investee’s identifiable net assets, and the difference isrecognised in profit or loss.

- After the acquisition of the investment, the Group recognises its share of theinvestee’s profit or loss and other comprehensive income as investment income orlosses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced bythe amount attributable to the Group. Changes in the Group’s share of theinvestee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.

- In calculating its share of the investee’s net profits or losses, other comprehensiveincome and other changes in owners’ equity, the Group recognises investmentincome and other comprehensive income after making appropriate adjustments toalign the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in theassociates or joint ventures. Unrealised losses resulting from transactions betweenthe Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.

- The Group discontinues recognising its share of further losses of the investee afterthe carrying amount of the long-term equity investment and any long-term interestthat in substance forms part of the Group’s net investment in the joint venture orassociate is reduced to zero, except to the extent that the Group has an obligation toassume additional losses. If the joint venture or associate subsequently reports netprofits, the Group resumes recognising its share of those profits only after its shareof the profits has fully covered the share of losses not recognised.

For the impairment of the investments in joint ventures and associates, refer to NoteIII.20.

(3) Criteria for determining the existence of joint control or significant influence over an investee

Joint control is the contractually agreed sharing of control of an arrangement, which existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.

The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:

- Whether no single participant party is in a position to control the investee’s relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.

Significant influence is the power to participate in the financial and operating policy decisionsof an investee but does not have control or joint control over those policies.

13 Investment properties

Investment properties are properties held either to earn rental income or for capitalappreciation or for both. Investment properties are accounted for using the cost model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses. The cost of investment property, less its estimated residual value andaccumulated impairment losses, is depreciated or amortised using the straight-line methodover its estimated useful life, unless the investment property is classified as held for sale (seeNote III.31). For the impairment of the investment properties, refer to Note III.20.

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%

???

14 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, for rental or for administrative purposes with useful lives over oneyear.

The cost of a purchased fixed asset comprises the purchase price, related taxes, and anydirectly attributable expenditure for bringing the asset to working condition for its intendeduse. The cost of self-constructed assets is measured in accordance with the policy set out inNote III.15.

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, unless thefixed asset is classified as held for sale (see Note III.31).

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

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

???

Useful lives, residual values and depreciation methods are reviewed at least at each year-end.

(3) For the impairment of the fixed assets, refer to Note III.20.

(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 amount ofthe item, and are recognised in profit or loss on the date of retirement or disposal.

15 Construction in progress

The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.16), and any other costs directly attributable to bringing theasset to working condition for its intended use.

A self-constructed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided against constructionin progress.

The criteria according to which, construction projects in progress are transferred to fixedassets:

Category	Criteria for the transfers to fixed assets
?	?
Plant and buildings	Satisfy the acceptance criteria and be available for its predetermined readiness for use
Machinery and equipment	Installation and commissioning are qualified, and be available for its predetermined readiness for use?

Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.20).

When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.

16 Borrowing costs

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

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

- Where funds are borrowed specifically for the acquisition and construction of a qualifyingasset, the amount of interest to be capitalised is the interest expense calculated usingeffective interest rates during the period less any interest income earned from depositingthe borrowed funds or any investment income on the temporary investment of those fundsbefore being used on the asset.

- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest rates

applicable 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 period tothe initially recognised amount of the borrowings.

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

The capitalisation period is the period from the date of commencement of capitalisation ofborrowing costs to the date of cessation of capitalisation, excluding any period over whichcapitalisation is suspended. Capitalisation of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities of acquisitionand construction that are necessary to prepare the asset for its intended use are in progress,and ceases when the assets become ready for their intended use. When the parts of thequalifying assets acquired or constructed that are eligible for capitalisation are completedseparately, and each part is available for use in other parts of the construction process orcan be sold externally, and for the purpose of making the parts of the assets ready for use ornecessary for the sales status, the acquisition or construction activities have beensubstantially completed, the Group ceases the capitalisation of the borrowing costs related tothe parts of the assets. Capitalisation of borrowing costs is suspended when the acquisitionand construction activities are interrupted abnormally for a period of more than three months.

17 Intangible assets

(1) Estimated useful life and amortisation method

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.20). For anintangible asset with finite useful life, its cost less estimated residual value and accumulatedimpairment losses is amortised using the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale (see Note III.31).

The estimated useful lives, basis for determination and amortisation methods of intangibleassets are as follows:

Item	Estimated useful life (years)	?	Basis for determination	?	Amortisation method
?	?	?	?	?	?
Land use rights	20 - 50 years	?	Terms of land use rights?	?	Straight-line method?
Patents and know-how	5 - 20 years	?	Terms of patents	?	Straight-line method??
Computer software	3 - 10 years	?	?Estimated useful life	?	Straight-line method??
Others	5 - 20 years	?	Estimated useful life?	?	Straight-line method??

?????

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

(2) The scope of research and development expenditures

The Group aggregates all expenses directly related to R&D activities into R&D expenditures,which encompass labor costs, material costs, depreciation and amortization, as well as othermiscellaneous expenses. The expenditures on internal research and development projectswithin the Group are categorized into two phases: research phase expenditures anddevelopment phase expenditures.

Expenditures in the research phase are recognized as an expense in the current periodwhen they occur. As for the expenditures in the development phase, if a product or processdeveloped during this phase is deemed technically and commercially feasible, and the Grouppossesses sufficient resources and intention to complete the development work, and thedevelopment phase expenditures can be reliably measured, such expenditures will becapitalized. Capitalized development expenditures are presented on the balance sheet atcost less any impairment provision (as per Note 3, Item 20). Other development costs that donot meet capitalization criteria are recognized as expenses in the period in which they arise.

In instances where products or by-products resulting from the R&D process are soldexternally, the enterprise follows the stipulations outlined in Accounting Standards forEnterprises No. 14 - Revenue Recognition and No. 1 - Inventories, respectively, toseparately account for the corresponding revenues and costs, ultimately recognizing them asincome or expenses in the current period.

(3) The basis for the classification of internal R&D projects under the research phase and the

development phase

- The phase of planned investigations to acquire new techniques and knowledge should be

identified as the research phase, which is characterised by, among other things, aplanned and exploratory approach.

- The phase of applying research results or other knowledge to a plan or design to produce

new or substantially improved materials, devices, products, etc., prior to commercialproduction or use, shall be identified as the development phase, which is characterised byits relevance and greater likelihood of generating results.

18 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.20). On disposal of an asset group or a set of asset groups,any attributable goodwill is written-off and included in the calculation of the profit or loss ondisposal.

19 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)
?	?
Technology royalty fees prepaid	1 - 11 years
Payment for public facilities construction and use	10 - 15 years
Leasehold improvements	2 - 10 years
Others	2 - 10 years

???

20 Impairment of assets other than inventories and financial assets

The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:

- fixed assets- construction in progress- 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.

The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note III.21) less costs to sell and its present value of expected future cashflows.

An asset group is composed of assets directly related to cash generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.

The present value of expected future cash flows of an asset is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate disposal, to their present value using an appropriate pre-tax discount rate.

An impairment loss is recognised in profit or loss when the recoverable amount of an asset isless than its carrying amount. A provision for impairment of the asset is recognisedaccordingly. Impairment losses related to an asset group or a set of asset groups areallocated first to reduce the carrying amount of any goodwill allocated to the asset group orset of asset groups, and then to reduce the carrying amount of the other assets in the assetgroup or set of asset groups on a pro rata basis. However, such allocation would not reduce

the carrying amount of an asset below the highest of its fair value less costs to sell (ifmeasurable), its present value of expected future cash flows (if determinable) and zero.

Once an impairment loss is recognised, it is not reversed in a subsequent period.

21 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 the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the assetor liability at the measurement date, and uses valuation techniques that are appropriate inthe circumstances and for which sufficient data and other information are available tomeasure fair value. Valuation techniques mainly include the market approach, the incomeapproach and the cost approach.

22 Provisions

A provision is recognised for an obligation related to a contingency if the Group has apresent obligation that can be estimated reliably, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle therelated present obligation. Where the effect of the time value of money is material, provisionsare determined by discounting the expected future cash flows. Factors pertaining to acontingency such as the risks, uncertainties and time value of money are taken into accountas a whole in reaching the best estimate. Where there is a continuous range of possibleoutcomes for the expenditure required, and each possible outcome in that range is as likelyas any other, the best estimate is the mid-point of that range. In other cases, the bestestimate is determined according to the following circumstances:

- Where the contingency involves a single item, the best estimate is the most likelyoutcome.- Where the contingency involves a large population of items, the best estimate isdetermined by weighting all possible outcomes by their associated probabilities.

The Group reviews the carrying amount of a provision at the balance sheet date and adjuststhe carrying amount to the current best estimate.

23 Share-based payments

(1) Classification of share-based payments

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

(2) Accounting treatment of share-based payments

- Equity-settled share-based payments

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

24 Revenue recognition

Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increase in shareholders’ equity, other thanincrease relating to contributions from shareholders.

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

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

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

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

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

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

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

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

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

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

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

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

The fee or commission is the net amount of consideration that the Group retains after payingthe other party the consideration, or is the established amount or proportion.

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

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

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

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

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

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

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

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

goods or services transferred on the date of the contract modification, the Group accountsfor the contract modification as if it were a termination of the existing contract and thecreation of a new contract.

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

the goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a part of the existing contract. Theeffect that the contract modification has on the revenue is recognised as an adjustment torevenue in the reporting period.

A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.10(6)). Accounts receivable is the Group’s right to consideration that isunconditional (only the passage of time is required). A contract liability is the Group’sobligation to transfer goods or services to a customer for which the Group has receivedconsideration (or an amount of consideration is due) from the customer.

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

(1) Sale of goods

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

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

(2) Rendering of services

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

25 Contract costs

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

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

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

- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract

- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.

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

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

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

26 Employee benefits

(1) Short-term employee benefits

Employee wages or salaries, bonuses, social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accrued at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.

(2) Post-employment benefits – defined contribution plans

Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan and unemploymentinsurance plan in the social insurance system established and managed by governmentorganisations, and annuity plan established by the Group in compliance with the nationalpolicy of the corporation annuity. The Group makes contributions to basic pension andunemployment insurance plans based on the applicable benchmarks and rates stipulated bythe government. Annuity is accrued based on the gross salaries of the employees. Basicpension insurance contributions payable are recognised as a liability as the employeeprovides services, with a corresponding charge to profit or loss or included in the cost ofassets where appropriate.

(3) Post-employment benefits – defined benefit plans

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

(4) Termination benefits

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

- When the Group cannot unilaterally withdraw the offer of termination benefits because of

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 carry

out the restructuring by starting to implement that plan or announcing its main features to

those affected by it.

27 Government grants

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

A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attaching to the grant.

If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.

Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.

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

With respect to the government grants related to assets, if the Group first obtainsgovernment grants related to assets and then 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; orthe deferred income is written off against the carrying amount of the asset when the assetbecomes ready for its intended status or intended use. If the Group obtains governmentgrants related to the assets after relevant long-term assets are put into use, deferred incomeis included in profit and loss based on a reasonable and systematic approach by stageswithin the remaining useful life of relevant assets, or the deferred income is written offagainst the carrying amount of relevant asset when the grants are obtained; the assets shallbe depreciated or amortized based on the carrying amount after being offset and theremaining 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, if theinterest subsidy is appropriated to the lending bank which shall provide loans to the Group atthe policy-based preferential interest rate, the actual loan amount is used as the entry valueand relevant borrowing costs are calculated on the basis of the loan principal and thepreferential interest rate. If the interest subsidy is directly appropriated to the Group, relevantborrowing costs shall be offset by corresponding interest subsidy. If borrowing costs arecapitalized as part of the cost of the asset (see Note III. 16), the interest subsidy shall beused to offset relevant asset costs.

28 Specific reserve

The Group recognises a safety fund in the specific reserve pursuant to relevant governmentregulations, with a corresponding increase in the costs of the related products or expenses.

When the safety fund is subsequently used for revenue expenditure, the specific reserve isreduced accordingly. When the safety fund is subsequently used for the construction oracquisition of fixed assets, the Group recognises the capitalised expenditure incurred as thecost of the fixed assets when the related assets are ready for their intended use. In suchcases, the specific reserve is reduced by the amount that corresponds to the cost of the fixedassets and the credit side is recognised in the accumulated depreciation with respect to therelated fixed assets. Consequently, such fixed assets are not depreciated in subsequentperiods.

29 Income tax

Current tax and deferred tax are recognised in profit or loss except to the extent that theyrelate to a business combination or items recognised directly in equity (including othercomprehensive income).

Current tax is the expected tax payable calculated at the applicable tax rate on taxableincome for the year, plus any adjustment to tax payable in respect of previous years.

At the balance sheet date, current tax assets and liabilities are offset only if the Group has alegally enforceable right to set them off and also intends either to settle on a net basis or torealise the asset and settle the liability simultaneously.

Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include the deductiblelosses and tax credits carried forward to subsequent periods. Deferred tax assets arerecognised to the extent that it is probable that future taxable profits will be available againstwhich deductible temporary differences can be utilised.

Deferred tax is not recognised for the temporary differences arising from the initialrecognition of assets or liabilities in a transaction that is not a business combination and thataffects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is notrecognised for taxable temporary differences arising from the initial recognition of goodwill.

At the balance sheet date, deferred tax is measured based on the tax consequences thatwould follow from the expected manner of recovery or settlement of the carrying amounts ofthe assets and liabilities, using tax rates enacted at the balance sheet date that are expectedto be applied in the period when the asset is recovered or the liability is settled.

The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and isreduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reduction is reversed to the extent that it becomes probable that sufficient taxableprofits will be available.

At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all ofthe following conditions are met:

- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;

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

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

30 Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. Acontract 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, theGroup 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, or capacityportion or other portion of an asset that is not physically distinct but it representssubstantially all of the capacity of the asset and thereby provides the customer with theright to obtain substantially all of the economic benefits from the use of the asset. If thesupplier has a substantive substitution right throughout the period of use, then the asset isnot identified;- the lessee has the right to obtain substantially all of the economic benefits from use of theasset 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 lessorseparate lease components from non-lease components. For a contract that contains leaseand non-lease components, the lessee allocates the consideration in the contract to eachlease component on the basis of the relative stand-alone price of the lease component andthe aggregate stand-alone price of the non-lease components. The lessor allocates theconsideration in the contract in accordance with the accounting policy in Note III.24.

(1) As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencementdate. The right-of-use asset is initially measured at cost, which comprises the initial amountof the lease liability, any lease payments made at or before the commencement date (lessany lease incentives received), any initial direct costs incurred and an estimate of costs todismantle and remove the underlying asset or to restore the site on which it is located orrestore the underlying asset to the condition required by the terms and conditions of thelease.

The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise,the right-of-use asset is depreciated from the commencement date to the earlier of the end ofthe useful life of the right-of-use asset or the end of the lease term. Impairment losses ofright-of-use assets are accounted for in accordance with the accounting policy described inNote III.20.

The lease liability is initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, ifthat 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 cost ofassets where appropriate. Variable lease payments not included in the measurement of thelease liability is charged to profit or loss or included in the cost of assets where appropriateas 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 the carryingamount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of theright-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-termleases that have a lease term of 12 months or less and leases of low-value assets thatspecific lease asset as a brand new asset value is less valuable. The Group recognises thelease payments associated with these leases in profit or loss or as the cost of the assetswhere appropriate using the straight-line method or other systematic basis over the leaseterm.

(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 whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than afinance 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 finance leasereceivable and derecognises the finance lease asset. The finance lease receivable is initiallymeasured at an amount equal to the net investment in the lease. The net investment in thelease is measured at the aggregate of the unguaranteed residual value and the presentvalue of the lease receivable that are not received at the commencement date, discountedusing 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.10.Variable lease payments not included in the measurement of net investment in the lease arerecognised as income as they are earned.

Lease receipts from operating leases is recognised as income using the straight-line methodor other systematic basis over the lease term. The initial direct costs incurred in respect ofthe operating lease are initially capitalised and subsequently amortised in profit or loss overthe lease term on the same basis as the lease income. Variable lease payments not includedin lease receipts are recognised as income as they are earned.

31 Assets held for sale and discontinued operations

(1) Non-current assets or disposal group as held for sale

The Group classified a non-current asset or disposal group as held for sale when thecarrying amount of a non-current asset or disposal group will be recovered through a saletransaction rather than through continuing use,.

A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.

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

- According to the customary practices of selling such asset or disposal group in similartransactions, the non-current asset or disposal group must be available for immediate salein their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and hasobtained a firm purchase commitment. The sale is to be completed within one year.

Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.21) less costs to sell (except financial assets (see noteIII.10), deferred tax assets (see note III.29). Any excess of the carrying amount over the fairvalue (see Note III.21) less costs to sell is recognised as an impairment loss in profit or loss.

(2) Discontinued operations

The Group classifies a component as a discontinued operation either upon disposal of theoperation or when the operation meets the criteria to be classified as held for sale if it isseparately identifiable and satisfies one of the following conditions:

- It represents a separate major line of business or a separate geographical area ofoperations;- It is part of a single coordinated plan to dispose of a separate major line of business or aseparate geographical area of operations;- It is a subsidiary acquired exclusively with a view to resale.

Where an operation is classified as discontinued in the current period, profit or loss fromcontinuing operations and profit or loss from discontinued operations are separatelypresented in the income statement for the current period. The comparative information forprofit or loss from discontinued operations, which used to presented as profit or loss fromcontinuing operations in the prior period, is re-presented as profit or loss from discontinuedoperations in the comparative income statement.

32 Profit distributions

Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognised as a liability at the balance sheetdate but are disclosed in the notes separately.

33 Related parties

If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under commoncontrol only from the State and that have no other related party relationships are notregarded as related parties.

In addition to the related parties stated above, the Company determines related partiesbased on the disclosure requirements of Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.

34 Segment reporting

Reportable segments are identified based on operating segments which are determinedbased on the structure of the Group’s internal organisation, management requirements andinternal reporting system after taking the materiality principle into account. Two or moreoperating segments may be aggregated into a single operating segment if the segmentshave the similar economic characteristics and are same or similar in respect of the nature ofeach segment’s products and services, the nature of production processes, the types orclasses of customers for the products and services, the methods used to distribute theproducts or provide the services, and the nature of the regulatory environment.

Inter-segment revenues are measured on the basis of the actual transaction prices for suchtransactions for segment reporting. Segment accounting policies are consistent with those forthe consolidated financial statements.

35 Significant accounting estimates and judgements

The preparation of the financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an

ongoing basis. Revisions to accounting estimates are recognised in the period in which theestimate is revised and in any future periods affected.

Except for accounting estimates relating to depreciation and amortisation of assets such asfixed assets and intangible assets (see Notes III.14 and 17) and provision for impairment ofvarious types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16, 18 and 19). Other significantaccounting estimates are as follows:

(i) Note V.21: Recognition of deferred tax assets;(ii) Note V.32: Warranty provisions;(iii) Note X. – Fair value measurements of financial instruments; and(iv) Note XII: Share-based payments.

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

(i) Note VIII. 1(1) –Disclosure of significant judgements and assumptions of control and

exercising significant influence over other entities.

36 Changes in significant accounting policies

(1) Description of and reasons for changes in accounting policies

In 2023 the Group has adopted the revised accounting requirements and guidance underCASs newly issued by the Ministry of Finance (“MOF”)

(a) “The accounting treatment of deferred tax related to assets and liabilities arising from a

single transaction excluded from the scope of the initial recognition exemption” in CASBulletin No.16 (Caikuai [2022] No.31) (“CAS Bulletin No.16”)According to the provisions, the Group does not apply the initial recognition exemptionunder CAS 18 Income Taxes to temporary differences arising from the initialrecognition of assets or liabilities in a single transaction that is not a businesscombination, affects neither accounting profits nor taxable profit (or deductible losses)and gives rise to equal taxable and deductible temporary differences.In accordance with the above provisions, the Group has made retrospectiveadjustments for relevant transactions that occurred between 1 January 2022 and thedate of initial application and to which the provisions apply. For the taxable anddeductible temporary differences arising from the recognition of lease liabilities andright-of-use assets on 1 January 2022 as a result of the relevant transactions to whichthe provisions apply, the Group has recognised the cumulative effect as an adjustmentto the opening balance of retained earnings and other related financial statement itemsfor the earliest period presented in the financial statements in accordance with theabove provisions and the requirements of CAS 18 Income Tax.

(i) The effects on the financial statements

The effects on each of the line items in the consolidated balance sheet as at 31December 2023 are as follows:

	Increase / (decrease) in the line items as a result of applying new accounting policies
	The Group
?	?
Assets:	?
Deferred tax assets	7,012,197
Liabilities:	?
Deferred tax liabilities	14,474,660
?	?
Shareholders’ equity:	?
Retained earnings	(7,969,365)
Capital reserve	(5,874,381)
Non-controlling interests	6,381,283

???

The effects on each of the line items in the consolidated income statement for theyear ended 31 December 2023 are as follows:

	Increase / (decrease) in the line items as a result of applying new accounting policies
	The Group
?	?
Profit before income tax	-
Less: Income tax expenses	2,267,638
Net profit for the year	(2,267,638)
Attributable to: Shareholders of the Company	(1,647,109)
Non-controlling interests	(620,529)

(ii) The effects on the comparative financial statements

The effects of these changes in accounting policies on the net (loss) for the yearended 31 December 2022, and opening and closing balances of shareholders’equity as at 1 January and 31 December 2022 are summarised as follows:

	The Group
	2022 Net loss	?	2022 Closing balance of shareholders’ equity	?	2022 Opening balance of shareholders’ equity
?	?	?	?	?	?
Net loss and shareholders’ equity before adjustments	(1,737,175,168)	?	202,050,297,126	?	217,378,766,516

Deferred tax related to assets and

liabilities arising from a singletransaction excluded from thescope of the initial recognitionexemption

	(3,326,555)	?	(9,730,101)	?	(6,403,546)
Net loss and shareholders’ equity after adjustments	(1,740,501,723)	?	202,040,567,025	?	217,372,362,970

The effects on each of the line items in the consolidated balance sheet as at 31December 2022 are as follows:

	The Group
	Before adjustments	?	The amounts of adjustments	?	After adjustments
?	?	?	?	?	?
Assets:	?	?	?	?	?
Deferred tax assets	70,250,425	?	5,762,724	?	76,013,149
Liabilities:	?	?	?	?	?
Deferred tax liabilities	1,274,406,833	?	15,492,825	?	1,289,899,658
?	?	?	?	?	?
Shareholders’ equity	?	?	?	?	?
Capital reserve	55,218,504,392	?	6,381,283	?	55,224,885,675
Retained earnings	35,839,081,781	?	(9,616,474)	?	35,829,465,307
Non-controlling interests	65,960,886,731	?	(6,494,910)	?	65,954,391,821

The effects on each of the line items in the consolidated income statement for theyear ended 31 December 2022 are as follows:

	The Group
	Before adjustments	?	The amounts of adjustments	?	After adjustments
?	?	?	?	?	?
Profit before income tax	51,218,939		-		51,218,939
Less: Income tax expenses	1,788,394,107		3,326,555		1,791,720,662
Net profit for the year	(1,737,175,168)		(3,326,555)		(1,740,501,723)
Attributable to: Shareholders of the Company	7,550,877,790		(9,454,592)		7,541,423,198
Non-controlling interests	(9,288,052,958)	?	6,128,037	?	(9,281,924,921)

(iii) After retrospective adjustments of the above accounting policy changes, the

consolidated balance sheet as at 1 January 2022 are as follows:

?	The Group
Assets	?
?	?
Current assets:	?
Cash at bank and on hand	80,986,835,088
Financial assets held for trading	10,028,172,853
Bills receivable	217,734,298
Accounts receivable	35,503,414,820
Prepayments	1,112,880,007
Other receivables	1,922,828,378
Inventories	27,805,161,436
Contract assets	75,698,324
Non-current assets due within one year	7,700,735
Other current assets	3,578,919,710
?	?
Total current assets	161,239,345,649
?	?
Non-current assets:	?
Long-term receivables	29,918,542
Long-term equity investments	6,040,948,317
Investments in other equity instruments	519,088,146
Other non-current financial assets	606,895,447
Investment properties	1,158,365,401
Fixed assets	227,141,366,884
Construction in progress	32,099,711,879
Right-of-use assets	753,164,237
Intangible assets	11,209,498,406
Goodwill	1,130,006,987
Long-term deferred expenses	636,530,502
Deferred tax assets	198,375,250
Other non-current assets	7,477,427,483
?	?
Total non-current assets	289,001,297,481

?	?
Total assets	450,240,643,130

???

?	The Group
Liabilities and shareholders’ equity	?
?	?
Current liabilities:	?
Short-term loans	2,072,057,332
Bills payable	827,958,031
Accounts payable	32,455,830,694
Advance payments received	146,140,084
Contract liabilities	3,765,081,554
Employee benefits payable	5,133,155,237
Taxes payable	2,200,249,305
Other payables	23,835,374,942
Non-current liabilities due within one year	28,874,958,714
Other current liabilities	4,051,532,509
?	?
Total current liabilities	103,362,338,402
?	?
Non-current liabilities:	?
Long-term loans	116,078,666,587
Debentures payable	359,586,437
Lease liabilities	669,130,264
Long-term payables	906,592,838
Deferred income	6,416,089,611
Deferred tax liabilities	1,540,066,145
Other non-current liabilities	3,535,809,876
?	?
Total non-current liabilities	129,505,941,758

?	?
Total liabilities	232,868,280,160

???

?	The Group
?	?
Shareholders’ equity:	?
Share capital	38,445,746,482
Other equity instruments	14,146,997,427
Capital reserve	53,917,609,094
Less: Treasury shares	3,415,768,207
Other comprehensive income	113,551,147
Surplus reserve	2,889,590,205
Retained earnings	37,106,352,917
?	?
Total equity attributable to shareholders of the Company	143,204,079,065
?	?
Non-controlling interests	74,168,283,905
?	?
Total shareholders’ equity	217,372,362,970

?	?
Total liabilities and shareholders’ equity	450,240,643,130

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% (2022: 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 30 November 2023, the Company renewed the High-tech Enterprise Certificate No.GR202311004505, 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 main subsidiaries that are entitled to preferential tax treatments are as follows:

Company name	Preferential rate	?	Reason
?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT)	15%	?	High-tech enterprise
Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu Optoelectronics )	15%	?	High-tech enterprise
Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE)	15%	?	High-tech enterprise
Beijing BOE Display Technology Co., Ltd. (BOE Display)	15%	?	High-tech enterprise
Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei Xinsheng)	15%	?	High-tech enterprise
Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics)	15%	?	High-tech enterprise
Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE)	15%	?	High-tech enterprise
Beijing BOE CHATANI Electronics Co., Ltd. (Beijing CHATANI)	15%		High-tech enterprise
Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting)	15%		High-tech enterprise
Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display Lighting)	15%		High-tech enterprise
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 Display 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 Display Technology)	15%	?	High-tech enterprise
Chengdu BOE Display Sci-tech Co., Ltd. (Chengdu Display Sci-tech)	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
Yunnan Invensight Optoelectronics Technology Co., Ltd. (Yunnan Invensight)	15%		High-tech enterprise
BOE Mled Technology Co., Ltd. (Mled Technology)	15%	?	High-tech enterprise
Hefei BOE Semiconductor Co.,Ltd. (Hefei Semiconductor)	15%		High-tech enterprise
Qingdao BOE Optoelectronics Technology Co., Ltd. (Qingdao BOE)	15%		High-tech enterprise
Hefei BOE Ruisheng Technology Co., Ltd. (Hefei Ruisheng)	15%		High-tech enterprise
Chongqing BOE Display Technology Co., Ltd. (Chongqing Display Technology)	15%		High-tech enterprise
Mianyang BOE Electronic Technology Co., Ltd. (Mianyang Electronic Technology)	15%		Encouraged enterprise in Western Regions
BNJ Technology Co., Ltd. (BNJ)	15%		High-tech enterprise
Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. (Beijing United Ultra HD)	15%		High-tech enterprise

V. Notes to the consolidated financial statements

1 Cash at bank and on hand

?	2023					?	2022
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	696,549	?	?	?	?	?	796,306
USD	1,978	?	7.0827	?	14,010	?	1,773	?	6.9646	?	12,348
HKD	35,281	?	0.9062	?	31,972	?	35,650	?	0.8933	?	31,846
JPY	197,450	?	0.0502	?	9,912	?	106,508	?	0.0524	?	5,581
KRW	70,909	?	0.0055	?	390	?	70,909	?	0.0055	?	390
Other foreign currencies	?	?	?	?	50,134	?	?	?	?	?	49,796
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	802,967	?	?	?	?	?	896,267
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	48,638,787,209	?	?	?	?	?	43,646,054,088
USD	3,037,570,050	?	7.0827	?	21,514,197,393	?	2,681,806,253	?	6.9646	?	18,677,707,830
HKD	19,237,661	?	0.9062	?	17,433,168	?	364,050,751	?	0.8933	?	325,206,536
JPY	3,951,660,159	?	0.0502	?	198,373,340	?	10,556,434,427	?	0.0524	?	553,157,164
KRW	1,313,182,909	?	0.0055	?	7,222,506	?	578,139,636	?	0.0055	?	3,179,768
EUR	16,331,789	?	7.8592	?	128,354,796	?	200,208,832	?	7.4229	?	1,486,130,139
Other foreign currencies	?	?	?	?	89,596,227	?	?	?	?	?	78,007,216
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	70,593,964,639	?	?	?	?	?	64,769,442,741
?	?	?	?	?	?	?	?	?	?	?	?
Other monetary funds	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	1,731,642,660	?	?	?	?	?	3,914,979,538
USD	16,806,283	?	7.0827	?	119,033,861	?	13,176,444	?	6.9646	?	91,768,662
HKD	61,396	?	0.9062	?	55,637	?	438,830	?	0.8933	?	392,007
JPY	436,114,622	?	0.0502	?	21,892,954	?	435,651,794	?	0.0524	?	22,828,154
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,872,625,112	?	?	?	?	?	4,029,968,361
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	72,467,392,718	?	?	?	?	?	68,800,307,369

????

Including: Total overseas deposits were equivalent to RMB 6,120,969,123 (2022: RMB5,780,461,058).

As at 31 December 2023, other monetary funds included deposits with securities companiesby the Group amounting to RMB 3,085,648, which can be withdrew on demand. The restwas restricted monetary funds, of which, RMB 81,101,328was pledged for issuance of billspayable, and an equivalent to RMB 1,788,438,136was mainly deposits in commercial banksas security.

As at 31 December 2021, other monetary funds included deposits with securities companiesby the Group amounting to RMB 2,609,817, which can be withdrew on demand. The restwas restricted monetary funds, of which, RMB 164,299,257 was pledged for issuance of billspayable, and an equivalent to RMB 3,863,059,287 was mainly deposits in commercial banksas security.

2 Financial assets held for trading

Item	31 December 2023	?	31 December 2022
?	?	?	?
Financial assets at fair value through profit or loss	?	?	?
- Structured deposit and wealth management products	7,476,126,776	?	16,931,468,153
- Investment in equity instruments	279,837,719	?	256,525,783
?	?	?	?
Total	7,755,964,495	?	17,187,993,936

????

3 Bills receivable

(1) Classification of bills receivable

Item	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Bank acceptance bills	?	342,699,932	?	211,292,061
Commercial acceptance bills	?	32,896,723	?	500,000
		?	?	?
Sub-total		375,596,655	?	211,792,061
		?	?	?
Less: Provision for bad and doubtful debts		19,644	?	-
?	?	?	?	?
Total	?	375,577,011	?	211,792,061

????

All of the above bills are due within one year.

(2) The pledged bills receivable of the Group at the end of the year:

Item	?	Pledged amount at the end of the year
?	?	?
Bank acceptance bills	?	58,113,245

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

the year:

Item	?		?
?	?	Amount derecognised in 2023	?	Amount not derecognised in 2023
?	?	?	?	?
Bank acceptance bills	?	-	?	172,240,824

????

For the year ended 31 December 2023, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2022:

Nil).

(4) Bills receivable by provisioning method

?	31 December 2023
?	Book value			?	Provision for bad and doubtful debts			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Bank acceptance bills group	342,699,932	?	91%	?	-	?	0%	?	342,699,932
- Commercial acceptance bills group	32,896,723	?	9%	?	19,644	?	0%	?	32,877,079
?	?	?	?	?	?	?	?	?	?
Total	375,596,655	?	100%	?	19,644	?	0%	?	375,577,011

(5) Movements of provisions for bad and doubtful debts

?	?	2023
?	?	Commercial acceptance bills
?	?	?
Balance at the beginning of the year	?	-
Additions during the year	?	19,644
Recoveries or reversals during the year	?	-
Written-off during the year	?	-
?	?	?
Balance at the end of the year	?	19,644

4 Accounts receivable

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

Item	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Amounts due from related parties	?	848,755,589	?	1,070,848,317
Amounts due from other customers	?	32,651,912,378	?	27,252,679,049
?	?	?	?	?
Sub-total	?	33,500,667,967	?	28,323,527,366
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	135,251,477	?	119,879,797
?	?	?	?	?
Total	?	33,365,416,490	?	28,203,647,569

????

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

?	2023					?	2022
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	17,032,805,950	?	?	?	?	?	12,806,183,088
USD	2,246,823,876	?	7.0827	?	15,913,579,467	?	2,139,614,722	?	6.9646	?	14,901,560,693
JPY	5,572,060	?	0.0502	?	279,717	?	5,046,551	?	0.0524	?	264,439
Other foreign currencies	?	?	?	?	554,002,833	?	?	?	?	?	615,519,146
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	33,500,667,967	?	?	?	?	?	28,323,527,366
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	135,251,477	?	?	?	?	?	119,879,797
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	33,365,416,490	?	?	?	?	?	28,203,647,569

????

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

?	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Within 1 year (inclusive)	?	32,716,203,140	?	27,791,874,623
Over 1 year but within 2 years (inclusive)	?	350,015,788	?	232,130,123
Over 2 years but within 3 years (inclusive)	?	191,517,633	?	151,304,998
Over 3 years	?	242,931,406	?	148,217,622
?	?	?	?	?
Sub-total	?	33,500,667,967	?	28,323,527,366
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	135,251,477	?	119,879,797
?	?	?	?	?
Total	?	33,365,416,490	?	28,203,647,569

????

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

(4) Accounts receivable by provisioning method

?	31 December 2023
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	24,192,778	?	0%	?	21,753,190	?	90%	?	2,439,588
- Customers with low credit risk	799,508,925	?	2%	?	-	?	0%	?	799,508,925
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	32,676,966,264	?	98%	?	113,498,287	?	0%	?	32,563,467,977
?	?	?	?	?	?	?	?	?	?
Total	33,500,667,967	?	100%	?	135,251,477	?	0%	?	33,365,416,490

????

?	31 December 2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	62,016,470	?	0%	?	59,921,373	?	97%	?	2,095,097
- Customers with low credit risk	1,359,564,251	?	5%	?	-	?	0%	?	1,359,564,251
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	26,901,946,645	?	95%	?	59,958,424	?	0%	?	26,841,988,221
?	?	?	?	?	?	?	?	?	?
Total	28,323,527,366	?	100%	?	119,879,797	?	0%	?	28,203,647,569

???

(a) Criteria and details for collective assessment:

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:

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

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

?	?	31 December 2023
?	?	Customers with high credit risk	?	Customers with low credit risk	?	Customers with moderate credit risk	?	Total
?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	?	59,921,373	?	-	?	59,958,424	?	119,879,797
Charge during the year	?	4,972,817	?	-	?	71,147,926	?	76,120,743
Recoveries during the year	?	(43,645,120)	?	-	?	(17,261,740)	?	(60,906,860)
Written-off during the year	?	(68,126)	?	-	?	(213,525)	?	(281,651)
Translation differences	?	572,246	?	-	?	(132,798)	?	439,448
?	?	?	?	?	?	?	?	?
Balance at the end of the year	?	21,753,190	?	-	?	113,498,287	?	135,251,477

?	?	31 December 2022
?	?	Customers with high credit risk	?	Customers with low credit risk	?	Customers with moderate credit risk	?	Total
?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	?	46,406,137	?	-	?	35,361,003	?	81,767,140
Charge during the year	?	39,701,034	?	-	?	38,122,840	?	77,823,874
Recoveries during the year	?	(18,395,999)	?	-	?	(9,530,579)	?	(27,926,578)
Written-off during the year	?	(8,201,685)	?	-	?	(6,332,757)	?	(14,534,442)
Translation differences	?	411,886	?	-	?	2,337,917	?	2,749,803
?	?	?	?	?	?	?	?	?
Balance at the end of the year	?	59,921,373	?	-		59,958,424	?	119,879,797

(6) Five largest accounts receivable and contract assets by debtor at the end of the year

The total of five largest accounts receivable and contract assets of the Group at the end ofthe year was RMB 11,169,787,517, representing 33% of the total accounts receivable andcontract assets..5 Receivables financing

(1) Receivables financing by category

Category	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Bank acceptance bills	?	408,534,622	?	-

(2) Receivables financing that are endorsed or discounted but have not matured of the Group at

the end of the year:

Category	?	2023	?	2023
?	?	Amount derecognised	?	Amount not derecognised
?	?	?	?	?
Bank acceptance bills	?	913,806,803	?	-

6 Prepayments

(1) The Group’s prepayments by category:

?	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Prepayment for electricity, water, gas and power	?	238,019,515	?	234,247,912
Prepayment for inventory	?	202,223,873	?	261,349,159
Others	?	118,416,392	?	94,167,609
?	?	?	?	?
Total	?	558,659,780	?	589,764,680

????

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

?	31 December 2023			?	31 December 2022
Ageing	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)
?	?	?	?	?	?	?	?
Within 1 year (inclusive)	478,067,697	?	86%	?	471,778,052	?	80%
Over 1 year but within 2 years (inclusive)	22,099,954	?	4%	?	112,700,267	?	19%
Over 2 years but within 3 years (inclusive)	53,855,290	?	9%	?	2,959,783	?	1%
Over 3 years	4,636,839	?	1%	?	2,326,578	?	0%
?	?	?	?	?	?	?	?
Total	558,659,780	?	100%	?	589,764,680	?	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 RMB211,232,794, representing 38% of the total prepayments.

7 Other receivables

(1) The Group’s other receivables by customer type:

Customer type	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Amounts due from related parties	?	787,519	?	16,588,534
Amounts due from other customers	?	738,982,314	?	969,833,087
?	?	?	?	?
Sub-total	?	739,769,833	?	986,421,621
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	13,110,626	?	10,612,385
?	?	?	?	?
Total	?	726,659,207	?	975,809,236

????

(2) The Group’s other receivables by currency type:

?	31 December 2023					?	31 December 2022
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	478,724,580	?	?	?	?	?	480,934,242
USD	33,442,302	?	7.0827	?	236,861,792	?	69,194,294	?	6.9646	?	481,910,580
JPY	25,775,874	?	0.0502	?	1,293,949	?	316,069	?	0.0524	?	16,562
Other foreign currencies	?	?	?	?	22,889,512	?	?	?	?	?	23,560,237
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	739,769,833	?	?	?	?	?	986,421,621
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	13,110,626	?	?	?	?	?	10,612,385
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	726,659,207	?	?	?	?	?	975,809,236

????

(3) The ageing analysis of the Group’s other receivables is as follows:

?	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Within 1 year (inclusive)	?	330,573,576	?	367,646,687
Over 1 year but within 2 years (inclusive)	?	121,561,167	?	362,777,830
Over 2 years but within 3 years (inclusive)	?	40,445,484	?	14,948,621
Over 3 years	?	247,189,606	?	241,048,483
?	?	?	?	?
Sub-total	?	739,769,833	?	986,421,621
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	13,110,626	?	10,612,385
?	?	?	?	?
Total	?	726,659,207	?	975,809,236

????

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

(4) The Group’s other receivables by provisioning method

?	31 December 2023?
?	Book value ?			?	Provision for impairment			?
Category	Amount		Percentage (%)		Amount		Percentage (%)		Carrying amount
	?		?		?		?		?
Individual assessment	?	?	?	?	?	?	?	?	?
- Amounts with high credit risk	12,515,014	?	2%	?	12,515,014	?	100%	?	-
- Amounts with low credit risk	705,496,057	?	95%	?	-	?	0%	?	705,496,057
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Amounts with medium credit risk	21,758,762	?	3%	?	595,612	?	3%	?	21,163,150
?	?	?	?	?	?	?	?	?	?
Total	739,769,833	?	100%	?	13,110,626	?	2%	?	726,659,207

?	31 December 2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Accounts with high credit risk	10,595,616	?	1%	?	10,595,616	?	100%	?	-
- Accounts with low credit risk	941,381,539	?	95%	?	-	?	0%	?	941,381,539
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Accounts with medium credit risk	34,444,466	?	4%	?	16,769	?	0%	?	34,427,697
?	?	?	?	?	?	?	?	?	?
Total	986,421,621	?	100%	?	10,612,385	?	1%	?	975,809,236

(5) Movements of provisions for bad and doubtful debts

2023

2022

Stage 1

Stage 2

Stage 3

Stage 1

Stage 2

Stage 3

12-month ECL

Lifetime ECL - Not credit impaired

Lifetime ECL- Credit impaired

Total

12-month ECL

Lifetime ECL - Not credit impaired

Lifetime ECL- Credit impaired

Total

Balance at the beginning of the year

9,822

6,947

10,595,616

10,612,385

300

9,043,516

9,043,816

Additions during the year

131,167

464,145

3,084,758

3,680,070

9,822

6,647

1,663,461

1,679,930

Reversals during the year

(9,822)

(6,647)

(334,930)

(351,399)

Written-off during the year

(841,937)

(111,361)

Other changes

11,507

Balance at the end of the year

131,167

464,445

12,515,014

13,110,626

9,822

6,947

10,595,616

10,612,385

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

Nature	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Amounts due from equity transfer	?	200,000,000	?	200,000,000
Surety and deposits	Note	398,335,916	?	598,972,862
Others	?	141,433,917	?	187,448,759
?	?	?	?	?
Sub-total	?	739,769,833	?	986,421,621
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	13,110,626	?	10,612,385
?	?	?	?	?
Total	?	726,659,207	?	975,809,236

????

Note: As at 31 December 2023, an equivalent to RMB 217,669,078 (2022: RMB436,628,186) of the surety and deposits mainly represented production capacity surety paidby the Group to suppliers.

(7) 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 RMB461,887,815, most of which were surety and amounts due from equity transfer. No provisionis made for bad and doubtful debts after assessment.

8 Inventories

(1) The Group’s inventories by category:

?	31 December 2023					?	31 December 2022
?	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	9,443,911,152	?	2,189,991,288	?	7,253,919,864	?	11,178,326,632	?	2,890,923,826	?	8,287,402,806
Work in progress	5,564,254,528	?	1,144,952,516	?	4,419,302,012	?	4,879,573,518	?	1,316,529,598	?	3,563,043,920
Finished goods	16,215,828,399	?	4,056,038,972	?	12,159,789,427	?	14,699,012,100	?	4,072,862,311	?	10,626,149,789
Consumables	189,084,809	?	-	?	189,084,809	?	147,843,921	?	-	?	147,843,921
Costs to fulfil a contract with a customer	97,571,213	?	-	?	97,571,213	?	163,373,789	?	-	?	163,373,789
?	?	?	?	?	?	?	?	?	?	?	?
Total	31,510,650,101	?	7,390,982,776	?	24,119,667,325	?	31,068,129,960	?	8,280,315,735	?	22,787,814,225

????

As at 31 December 2023, there was no amount of capitalised borrowing cost in the Group’sclosing balance of inventories (2022: Nil).

As at 31 December 2023, the Group had no inventory used as collateral (2022: Nil).

(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
?	?	?	?	?	?	?	?
Raw materials	2,890,923,826	?	649,806,255	?	(1,350,738,793)	?	2,189,991,288
Work in progress	1,316,529,598	?	777,337,498	?	(948,914,580)	?	1,144,952,516
Finished goods	4,072,862,311	?	2,933,896,375	?	(2,950,719,714)	?	4,056,038,972
?	?	?	?	?	?	?	?
Total	8,280,315,735	?	4,361,040,128	?	(5,250,373,087)	?	7,390,982,776

????

9 Contract assets

?	?	31 December 2023
?	?
?	?	?
Balance at the beginning of the year	?	71,636,461
?	?	?
Transfers from contract assets recognised at the beginning of the year to receivables	?	(28,449,015)
Increase in contract assets resulting from no unconditional right obtained	?	53,340,951
?	?	?
Sub-total		96,528,397

Less: Provision for bad and doubtful debts		817,655

Balance at the end of the year	?	95,710,742

???

10 Other current assets

?	?	31 December 2023	?	31 December 2022
?	?	?	?	?
VAT on tax credits	?	2,512,924,348	?	2,556,625,457
Input tax to be verified or deducted	?	291,415,443	?	329,605,466
Prepaid income taxes	?	166,028,954	?	331,652,233
Costs receivables for recovering products from a customer	?	140,814,527	?	108,097,353
Others	?	197,155,659	?	68,056,410
?	?	?	?	?
Total	?	3,308,338,931	?	3,394,036,919

????

11 Long-term equity investments

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

?	2023	?	2022
?	?	?	?
Investments in joint ventures	400,375,826	?	392,291,560
Investments in associates	14,392,984,350	?	13,086,523,900
?	?	?	?
Sub-total	14,793,360,176	?	13,478,815,460
?	?	?	?
Less: Provision for impairment	1,061,663,549	?	1,056,936,609
?	?	?	?
Total	13,731,696,627	?	12,421,878,851

????

(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

Decrease

Investment income / (loss) 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

Joint venture

Chongqing Maite Optoelectronics Co., Ltd.

392,291,560

8,075,273

400,366,833

Semicon Light (China) Company Limited

9,118

(125)

8,993

Sub-total

392,291,560

9,118

8,075,273

(125)

400,375,826

Associates

Erdos BOE Energy Investment Co., Ltd.

1,811,883,330

(3,539,256)

1,808,344,074

Beijing Xindongneng Investment Fund (Limited Partnership)

2,034,870,324

413,237,868

(341,083,735)

(242,256,254)

1,864,768,203

Beijing Innovation Industry Investment Co., Ltd.

223,216,553

12,953,665

236,170,218

Beijing Electric Control Industry Investment Co., Ltd.

258,149,907

78,035,900

(1,505,013)

51,071,365

385,752,159

BOE Art Cloud Technology Co., Ltd.

430,598,164

8,087,341

(6,214,034)

432,471,471

Cnoga Medical Co., Ltd.

276,916,033

4,695,716

281,611,749

Tianjin Xianzhilian Investment Centre (Limited Partnership)

1,387,079,224

380,000,000

(8,942,540)

121,848,208

(4,240,169)

1,875,744,723

BioChain (Beijing) Science & Technology, Inc.

334,093,785

(14,087,881)

40,878,430

360,884,334

Beijing YanDong MicroElectronic Co., Ltd.

1,171,247,551

34,876,298

38,009

18,093,355

1,224,255,213

VusionGroup SA （ex-SES Imagotag SA Co., Ltd.）

4,883,374,020

148,260,071

61,188,984

5,092,823,075

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

57,545,008

80,000,000

(3,511,138)

134,033,870

Jinchuang (Beijing) Equity Investment Fund Center (Limited Partnership)

356,400,000

Others

217,550,001

137,881,773

(2,988,821)

(22,140,092)

10,134,133

(800,000)

88,267

339,725,261

Sub-total

13,086,523,900

1,032,317,673

(11,931,361)

694,480,071

(289,974,361)

62,891,884

(247,296,423)

65,972,967

14,392,984,350

Total

13,478,815,460

1,032,326,791

(11,931,361)

702,555,344

(289,974,361)

62,891,884

(247,296,423)

65,972,842

14,793,360,176

Less: Provision for impairment

1,056,936,609

1,061,663,549

Total

12,421,878,851

13,731,696,627

As at 31 December 2023, certain associates invested by the Group suffered loss and the Group did not have an obligation to assume additionallosses. Therefore, the Company discontinues recognising its share of further losses after the carrying amount of long-term equity investment isreduced to zero, the accumulated unrecognised investment losses amounted to RMB27,004,563 (2022: RMB14,922,087).

12 Investments in other equity instruments

(1) Cases of investments in other equity instruments：

Movements during the year

Items

Balance at the beginning of the year

Increase in capital

Decrease in capital

The gains or losses recorded in other comprehensive income for the current year (Losses to be entered with a “-” sign)

Other

Balance at the end of the year

Dividend income recognized this year

Cumulative gains or losses recorded in other comprehensive income (losses to be indicated by a minus sign "-")

Specified reasons

Listed equity instruments investment

- Beijing Electronic City High Tech Group Co., Ltd.

53,614,432

7,835,955

61,450,387

728,606

(28,710,041)

Intended for long-term holding for strategic purposes

- Bank of Chongqing Co., Ltd.

91,600,150

(1,183,443)

90,416,707

9,885,131

(29,667,668)

Intended for long-term holding for strategic purposes

- New Century Medical Holding Co., Ltd.

9,098,008

8,390,266

17,488,274

(123,360,576)

Intended for long-term holding for strategic purposes

Unlisted equity instruments investment

—Danhua Capital, L. P.

34,823,000

590,500

35,413,500

8,112,915

887,125

Intended for long-term holding for strategic purposes

—Danhua Capital II, L.P.

69,646,002

1,180,998

70,827,000

9,669,593

3,179,249

Intended for long-term holding for strategic purposes

—Kateeva Inc.

83,192,147

1,410,705

84,602,852

1,740,386

Intended for long-term holding for strategic purposes

—Nanosys INC

21,591,641

(21,591,641)

(52,866,000)

Intended for long-term holding for strategic purposes

—Baebies INC

30,600,273

518,894

31,119,167

1,995,613

Intended for long-term holding for strategic purposes

—Illumina Fund I,L.P.

31,079,577

2,197,830

537,592

33,814,999

22,775

1,752,294

Intended for long-term holding for strategic purposes

—Horizon Robotics, Inc.

35,616,005

514,325

36,130,330

4,175,830

Intended for long-term holding for strategic purposes

—Others

22,199,071

14,202,855

(3,035,565)

33,366,361

(14,664,109)

Intended for long-term holding for strategic purposes

Total

483,060,306

2,197,830

12,407,006

(3,035,565)

494,629,577

28,419,020

(235,537,897)

(2) The explanation for derecognition events that have occurred this year：

Item	?	Accumulated gains recognised in retained earnings upon derecognition	Accumulated losses recognised in retained earnings upon derecognition	?	Reasons for derecognition
Nanosys INC	?	-	(52,866,000)	?	Transfers out due to the derecognition in the liquidation

13 Other non-current financial assets

Item	2023	?	2022
?	?	?	?
Financial assets at fair value through profit or loss	2,253,778,325	?	2,022,967,681
Including: Investments in equity instruments	2,253,778,325	?	2,022,967,681

14 Investment properties

?	?	Land use rights	?	Plant & buildings	?	Construction in progress ?	?	Total
?	?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?	?
Balance at the beginning of the year	?	687,434,677	?	1,028,293,708	?	-	?	1,715,728,385
Additions during the year
- Purchases	?	-	?	47,854,083	?	62,084,334	?	109,938,417
- Transfers from fixed assets	?	-	?	14,125,047	?	-	?	14,125,047
- Additions due to business combinations involving entities not under common control	?	97,907,500	?	133,782,131	?	-	?	231,689,631
Disposals during the year	?	-	?	(4,015,756)	?	-	?	(4,015,756)
Other changes	?	-	?	(89,730,944)	?	38,390,816	?	(51,340,128)
?	?	?	?	?	?	?	?	?
Balance at the end of the year	?	785,342,177	?	1,130,308,269	?	100,475,150	?	2,016,125,596
?	?	?	?	?	?	?	?	?
Less: Accumulated depreciation or amortisation	?	?	?	?	?	?	?	?
Balance at the beginning of the year	?	181,640,506	?	412,062,741	?	-	?	593,703,247
Charge during the year	?	14,221,175	?	50,236,490	?	-	?	64,457,665
Transfers from fixed assets	?	-	?	28,250	?	-	?	28,250
Disposals during the year	?	-	?	(3,600,357)	?	-	?	(3,600,357)
Other changes	?	-	?	(51,016,655)	?	-	?	(51,016,655)
?	?	?	?	?	?	?	?	?
Balance at the end of the year	?	195,861,681	?	407,710,469	?	-	?	603,572,150
?
?	?	?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?	?	?
At the end of the year	?	589,480,496	?	722,597,800	?	100,475,150	?	1,412,553,446
?	?	?	?	?	?	?	?	?
At the beginning of the year	?	505,794,171	?	616,230,967	?	-	?	1,122,025,138

??????

15 Fixed assets

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

Item	Plant & buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at the beginning of the year	65,890,430,033	?	297,350,722,399	?	12,351,989,023	?	375,593,141,455
Additions during the year	?	?	?	?	?	?	?
- Purchases	2,975,512	?	329,347,382	?	1,971,562,327	?	2,303,885,221
- Transfers from construction in progress	7,631,374,412	?	23,074,707,679	?	1,151,849,525	?	31,857,931,616
- Additions due to business combinations involving entities not under common control	1,711,457,927	?	3,849,118,978	?	13,245,160	?	5,573,822,065
Transfer to investment properties	(14,125,047)	?	-	?	-	?	(14,125,047)
Transfers to construction in progress	-	?	(2,358,952,818)	?	(64,593,844)	?	(2,423,546,662)
Disposals or written-offs during the year	-	?	(775,662,525)	?	(138,468,435)	?	(914,130,960)
Written-down against government interest discounts	-	?	(148,715,529)	?	-	?	(148,715,529)
Reclassified from fixed assets	763,414,828	?	(37,876,582)	?	(725,538,246)	?	-
Translation differences	2,658,541	?	9,210,976	?	2,159,600	?	14,029,117
?	?	?	?	?	?	?	?
Balance at the end of the year	75,988,186,206	?	321,291,899,960	?	14,562,205,110	?	411,842,291,276
?	?	?	?	?	?	?	?
Less: Accumulated depreciation	?	?	?	?	?	?	?
Balance at the beginning of the year	9,950,729,093	?	150,179,918,690	?	7,539,650,009	?	167,670,297,792
Charge during the year	2,013,406,593	?	29,422,264,324	?	2,487,867,788	?	33,923,538,705
Transfer to investment properties	(28,250)	?	-	?	-	?	(28,250)
Transfers to construction in progress	-	?	(1,469,878,899)	?	(47,440,847)	?	(1,517,319,746)
Disposals or written-offs during the year	-	?	(541,189,550)	?	(81,743,439)	?	(622,932,989)
Reclassified from fixed assets	65,703,316		(3,365,817)		(62,337,499)		-
Translation differences	1,247,094	?	5,345,109	?	1,853,823	?	8,446,026
?	?	?	?	?	?	?	?
Balance at the end of the year	12,031,057,846	?	177,593,093,857	?	9,837,849,835	?	199,462,001,538
?	?	?	?	?	?	?	?
Less: Provision for impairment	?	?	?	?	?	?	?
Balance at the beginning of the year	34,480	?	1,740,161,554	?	195,597,199	?	1,935,793,233
Charge during the year	-	?	119,115,566	?	80,248,218	?	199,363,784
Transfers to construction in progress	-	?	(87,542,076)	?	(676,525)	?	(88,218,601)
Disposals or written-offs during the year	-	?	(33,538,571)	?	(4,586,631)	?	(38,125,202)
?	?	?	?	?	?	?	?
Balance at the end of the year	34,480	?	1,738,196,473	?	270,582,261	?	2,008,813,214
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Carrying amounts
At the end of the year	63,957,093,880	?	141,960,609,630	?	4,453,773,014	?	210,371,476,524
?	?	?	?	?	?	?	?
At the beginning of the year	55,939,666,460	?	145,430,642,155	?	4,616,741,815	?	205,987,050,430

In 2023, some of the equipment of the Group is idle and there is no clear use plan. TheGroup evaluated the recoverable amount of these equipment and made provisions forimpairment of RMB 199,363,784 (2022: RMB 143,071,492) based on the evaluation results.

(2) Fixed assets pending certificates of ownership

As at 31 December 2023, fixed assets pending certificates of ownership totalled RMB6,560,001,886 (2022: RMB 7,110,462,456) and certificates of ownership is still beingprocessed.

16 Construction in progress

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

?	31 December 2023					?	31 December 2022
Item	Book value	?	Provision for impairment	?	Carrying amount	?	Book value	?	Provision for impairment	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
The 6th generation AMOLED project - Chongqing	15,573,483,601	?	-	?	15,573,483,601	?	31,013,623,277	?	-	?	31,013,623,277
Others	14,173,980,651	?	77,348,706	?	14,096,631,945	?	12,446,773,478	?	74,262,087	?	12,372,511,391
?	?	?	?	?	?	?	?	?	?	?	?
Total	29,747,464,252	?	77,348,706	?	29,670,115,546	?	43,460,396,755	?	74,262,087	?	43,386,134,668

????

Some of the engineering projects of the Group were idle and cannot be further used. The Group evaluated the residual values of theseengineering projects and made provisions for impairment.

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

Item

Budget

Balance at the beginning of the year

Additions during the year

Fiscal discount interest

Transfers to fixed assets

Others reduced

Balance at the end of the year

Cumulative investment in the project (%)

Accumulated capitalised interest at the end of the year

Interest capitalised in 2023

Interest rate for capitalisation in 2023 (%)

Sources of funding

The 6th generation AMOLED project - Chongqing

46,500,000,000

31,013,623,277

6,232,062,763

(139,357,070)

(21,432,183,974)

(100,661,395) ?

15,573,483,601

83.91%

616,688,937

533,623,524

3.95%

Self-raised funds and borrowings

????

(b) Provision for impairment of construction in progress during the year

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 provision
?	?	?	?	?	?	?	?	?	?
Engineering projects, machinery and equipment	74,262,087	?	3,086,619	?	-	?	77,348,706	?	Projects are idle and cannot be further used or are not planned to be used temporarily.

17 Right-of-use assets

(1) As a lessee

?	Plant and buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at the beginning of the year	686,288,720	?	15,961,065	?	198,423,285	?	900,673,070
Additions during the year	202,226,682	?	49,505	?	1,480,835	?	203,757,022
Additions due to business combinations involving entities not under common control	8,080,595	?	-	?	-	?	8,080,595
Decreases during the year	(55,747,251)	?	(220,804)	?	(5,101,832)	?	(61,069,887)
Translation differences	29,024,340	?	-	?	42,875	?	29,067,215
?	?	?	?	?	?	?	?
Balance at the end of the year	869,873,086	?	15,789,766	?	194,845,163	?	1,080,508,015
?	?	?	?	?	?	?	?
Accumulated depreciation	?	?	?	?	?	?	?
Balance at the beginning of the year	192,934,379	?	510,082	?	20,107,663	?	213,552,124
Charge for the year	152,633,217	?	5,999,682	?	10,625,520	?	169,258,419
Reductions during the year	(31,391,906)	?	(99,665)	?	(622,665)	?	(32,114,236)
Translation differences	5,425,387	?	-	?	41,976	?	5,467,363
?	?	?	?	?	?	?	?
Balance at the end of the year	319,601,077	?	6,410,099	?	30,152,494	?	356,163,670
?	?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?	?
Balance at the beginning and the end of the year	-	?	-	?	-	?	-
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Carrying amount	?	?	?	?	?	?	?
At the end of the year	550,272,009	?	9,379,667	?	164,692,669	?	724,344,345

?	?	?	?	?	?	?	?
At the beginning of the year	493,354,341	?	15,450,983	?	178,315,622	?	687,120,946

?????

18 Intangible assets

(1) Intangible assets

?	Land use rights	?	Patent and proprietary technology	?	Computer software	?	Others	?	Total
?	?	?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	5,796,437,186	?	5,245,259,551	?	1,894,880,882	?	704,836,612	?	13,641,414,231
Additions during the year	?	?	?	?	?	?	?	?
- Purchases	1,606,702,704	?	27,983,853	?	86,579,545	?	-	?	1,721,266,102
- Transfers from construction in progress	258,345,199	?	-	?	269,054,659	?	110,613,208	?	638,013,066
- Additions due to business combinations involving entities not under common control	263,044,065	?	935,121,201	?	27,525,660	?	-	?	1,225,690,926
- Transfers from development costs	-	?	31,920,961	?	-	?	-	?	31,920,961
Translation differences	-	?	77,552	?	466,220	?	631,835	?	1,175,607
Written-down against interest discount	-	?	(1,704,103)	?	-	?	-	?	(1,704,103)
Disposals during the year	-	?	-	?	(1,285,185)	?	-	?	(1,285,185)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	7,924,529,154	?	6,238,659,015	?	2,277,221,781	?	816,081,655	?	17,256,491,605
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	660,214,345	?	2,562,045,161	?	1,192,207,819	?	278,619,763	?	4,693,087,088
Charge during the year	169,915,992	?	559,766,004	?	219,577,158	?	49,147,600	?	998,406,754
Translation differences	-	?	77,552	?	106,487	?	282,184	?	466,223
Disposals during the year	-	?	-	?	(1,054,160)	?	-	?	(1,054,160)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	830,130,337	?	3,121,888,717	?	1,410,837,304	?	328,049,547	?	5,690,905,905

?	?	?	?	?	?	?	?	?	?
Carrying amount
Carrying amount at the end of the year	7,094,398,817	?	3,116,770,298	?	866,384,477	?	488,032,108	?	11,565,585,700
?	?	?	?	?	?	?	?	?	?
Carrying amount at the beginning of the year	5,136,222,841	?	2,683,214,390	?	702,673,063	?	426,216,849	?	8,948,327,143

??????

19 Goodwill

(1) Changes in goodwill

Name of investee	?	Balance at the beginning of the year	?	Icrease during the year	?	Decrease 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
Chengdu BOE Display Sci-tech Co., Ltd.		537,038,971		-		-		537,038,971
Nanjing BOE Display Technology Co., Ltd.	?	155,714,415	?	-	?	-	?	155,714,415
Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd.	?	-	?	14,285,847	?	-	?	14,285,847
HC SemiTek Corporation (“HC SemiTek”)	?	-	?	29,596,088	?	-	?	29,596,088
?	?	?	?	?	?	?	?	?
Sub-total	?	895,140,950	?	43,881,935	?	-	?	939,022,885
?	?	?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	?	(4,423,876)	?	-	?	-	?	(4,423,876)
BOE Healthcare Investment & Management Co., Ltd.	?	(82,137,669)	?	-	?	-	?	(82,137,669)
Chengdu BOE Display Sci-tech Co., Ltd.	?	(147,755,754)	?	-	?	-	?	(147,755,754)
?	?	?	?	?	?	?	?	?
Sub-total	?	(234,317,299)	?	-	?	-	?	(234,317,299)
?	?	?	?	?	?	?	?	?
Carrying amount	?	660,823,651	?	43,881,935	?	-	?	704,705,586

????

(2) Provision for impairment of goodwill

The recoverable amount of the asset group to which the above goodwill relates is determinedbased on the present value of expected future cash flows. When projecting the present valueof cash flows, the cash flows for the most recent five years are determined based on thefinancial budgets approved by management, and the cash flows beyond the five-year budgetperiod were assumed to remain stable. The pre-tax discount rate is determined withreference to comparable companies and the relevant capital structures.

20 Long-term deferred expenses

?	Balance at 31December 2022	?	Additions during the year	?	Decrease during the year	?	Balance at 31December 2023

Technology royalty fees prepaid	379,194,821		25,363,191		(70,839,299)		333,718,713
Payment for public facilities construction and use	41,161,291	?	458,946	?	(8,618,117)	?	33,002,120
Leasehold improvements	19,430,433	?	55,743,559	?	(18,357,270)	?	56,816,722
Others	117,154,832	?	61,264,352	?	(67,462,175)	?	110,957,009
?	?	?	?	?	?	?	?
Total	556,941,377	?	142,830,048	?	(165,276,861)	?	534,494,564

21 Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets and liabilities

?	2023			?	2022
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	586,093,818	?	98,130,637	?	151,264,910	?	31,020,460
Changes in fair value of investments in other equity instruments	134,711,649	?	20,206,748	?	142,547,604	?	21,382,141
Depreciation of fixed assets	251,343,643	?	39,115,495	?	239,415,255	?	37,326,236
Assessed value added by investing real estate in subsidiaries	114,341,540	?	28,585,385	?	119,895,400	?	29,973,850
Accumulated losses	2,748,927,099	?	426,287,990	?	459,130	?	75,757
Government grant	64,596,573	?	9,689,486	?	143,385,420	?	21,507,813
Lease Liabilities	564,279,038		119,336,111		417,358,141		89,551,026
Others	11,546,811	?	2,041,907	?	86,936,426	?	15,037,373
?	?	?	?	?	?	?	?
Sub-total	4,475,840,171	?	743,393,759	?	1,301,262,286	?	245,874,656
?	?	?	?	?	?	?	?
Amount offset	?	?	(346,516,739)	?	?	?	(169,861,507)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	396,877,020	?	?	?	76,013,149
?	?	?		?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Revaluation due to business combinations involving entities not under common control	(1,745,944,008)	?	(409,875,698)	?	(882,129,374)	?	(217,980,404)
Depreciation of fixed assets	(7,154,184,671)	?	(1,077,814,489)	?	(7,266,110,223)	?	(1,094,970,944)
Long-term equity investments	(2,113,902,264)	?	(389,497,116)	?	(120,141,687)	?	(18,021,253)
Right of use assets	(600,669,199)		(130,538,444)		(440,696,099)		(99,281,127)
Others	(203,263,744)	?	(33,430,721)	?	(178,731,744)	?	(29,507,437)
?	?	?	?	?	?	?	?
Sub-total	(11,817,963,886)	?	(2,041,156,468)	?	(8,887,809,127)	?	(1,459,761,165)
?	?	?	?	?	?	?	?
Amount offset	?	?	346,516,739	?	?	?	169,861,507
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(1,694,639,729)	?	?	?	(1,289,899,658)

????

(2) Details of unrecognised deferred tax assets

?	2023	?	2022
?	?	?	?
Deductible temporary differences	23,132,234,962?	?	22,749,630,064
Deductible tax losses	57,936,466,170?	?	44,677,908,573
?	?	?	?
Total	81,068,701,132	?	67,427,538,637

????

As at 31 December 2023, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to theuncertainty that there will be sufficient taxable income to cover these deductible differencesin future periods, the deferred income tax assets were not recognised in consideration ofprudence.

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

Year	Note	2023	?	2022
?	?	?	?	?
2023	?	-?	?	280,957,810
2024	?	308,958,033?	?	451,137,106
2025	?	883,311,469?	?	1,253,378,510
2026	?	1,202,044,391?	?	1,473,908,686
2027	?	2,385,376,981	?	3,146,172,377
2028	?	3,527,170,592?	?	2,279,355,553
2029	?	5,008,814,339?	?	5,008,814,339
2030	?	4,200,121,737?	?	4,196,348,029
2031	?	2,586,384,422?	?	2,502,424,694
2032	?	23,919,302,827	?	23,569,766,818
2033	?	13,399,325,173	?	-
Others	(a)	515,656,206?	?	515,644,651
?	?	?	?	?
Total	?	57,936,466,170	?	44,677,908,573

????

(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.

22 Other non-current assets

?	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Prepayment for fixed assets	?	2,068,302,892	?	148,834,349
Surety	?	1,048,632,965	?	1,338,834,402
Prepayment for construction	?	414,936,876	?	153,690,890
VAT on tax credits	?	95,942,415	?	-
Deferred VAT for imported equipment	?	-	?	2,696,796
Others	?	338,103,310	?	311,464,947
?	?	?	?	?
Total	?	3,965,918,458	?	1,955,521,384

????

23 Short-term loans

?	31 December 2023
?	?	?	?	?		?	Credited/ collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	23,498,395	?	Pledge
- RMB					1,311,144,222		Guaranteed
- RMB	?	?	?	?	406,271,598	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,740,914,215	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- JPY	104,986,438	?	0.0502	?	5,270,319	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	5,270,319	?	?
?
?	?	?	?	?	?	?	?
Total	?	?	?	?	1,746,184,534	?	?

????

?	31 December 2022
?	?	?	?	?		?	Credited/ collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	901,622,500	?	Guaranteed
- RMB	?	?	?	?	30,006,237	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	931,628,737	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- USD	128,585,504	?	6.9646	?	895,546,601	?	Credited
- JPY	205,792,620	?	0.0524	?	10,783,533	?	Credited
- HKD	600,000,000		0.8933		535,980,000		Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,442,310,134	?	?
?
?	?	?	?	?	?	?	?
Total	?	?	?	?	2,373,938,871	?	?

???

As at 31 December 2023, no short-term loan was past due (2022: Nil).

24 Bills payable

?	31 December 2023	?	31 December 2022
?	?	?	?
Bank acceptance bills	919,313,033	?	847,418,525
Commercial acceptance bills	-	?	22,803,013
?	?	?	?
Total	919,313,033	?	870,221,538

????

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

25 Accounts payable

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

?	31 December 2023	?	31 December 2022
?	?	?	?
Payables to related parties	114,282,939	?	179,047,266
Payables to third parties	32,863,320,412	?	29,655,673,198
?	?	?	?
Total	32,977,603,351	?	29,834,720,464

????

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

?	2023					?	2022
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	22,178,756,264	?	?	?	?	?	21,162,560,832
- USD	1,414,347,882	?	7.0827	?	10,017,401,744	?	1,146,041,405	?	6.9646	?	7,981,719,969
- JPY	11,054,142,329	?	0.0502	?	554,917,945	?	9,299,005,433	?	0.0524	?	487,267,885
- Other foreign currencies	?	?	?	?	226,527,398	?	?	?	?	?	203,171,778
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	32,977,603,351	?	?	?	?	?	29,834,720,464

????

As at 31 December 2023, the Group had no significant accounts payable with ageing of morethan one year.

26 Advance payments received

Item	31 December 2023	?	31 December 2022
?	?	?	?
Advances from related parties	103,733	?	188,623
Advances from third parties	94,601,248	?	79,660,354
?	?	?	?
Total	94,704,981	?	79,848,977

????

27 Contract liabilities

(1) The contract liabilities are as follows:

Item	31 December 2023	?	31 December 2022
?	?	?	?
Sale of goods	3,000,168,620	?	2,411,717,792

???

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.

(2) Significant contract liabilities aged more than 1 year:

Item	31 December 2023	?	The reason for the non-carryover
?	?	?	?
Advance receipts	172,566,372	?	Not yet delivered

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

?	2023
?	?
Balance at the beginning of the year	2,411,717,792
?	?
Revenue recognised that was included in the contract liability balance at the beginning of year	(2,059,115,794)
Increase of contract liabilities due to cash received at the end of the year	2,647,566,622
?	?
Balance at the end of the year	3,000,168,620

???

28 Employee benefits payable

(1) Employee benefits payable:

?	Note	Balance at 1 January 2023	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2023
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	2,656,369,348	?	16,850,640,827	?	(16,462,441,948)	?	3,044,568,227
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	58,051,832	?	1,848,632,320	?	(1,853,563,027)	?	53,121,125
Termination benefits	?	104,111,643	?	50,931,357	?	(151,821,076)	?	3,221,924
?	?	?	?	?	?	?	?	?
Total	?	2,818,532,823	?	18,750,204,504	?	(18,467,826,051)	?	3,100,911,276

????

?	Note	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	5,098,605,495	?	16,306,120,923	?	(18,748,357,070)	?	2,656,369,348
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	34,235,855	?	1,643,219,063	?	(1,619,403,086)	?	58,051,832
Termination benefits	?	313,887	?	125,276,407	?	(21,478,651)	?	104,111,643
?	?	?	?	?	?	?	?	?
Total	?	5,133,155,237	?	18,074,616,393	?	(20,389,238,807)	?	2,818,532,823

???

(2) Short-term employee benefits

?	Balance at 1 January 2023	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2023
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	1,689,488,356	?	13,369,970,316	?	(13,142,172,990)	?	1,917,285,682
Staff welfare	-	?	1,200,381,109	?	(1,200,381,109)	?	-
Social insurance	45,026,603	?	866,656,861	?	(874,490,443)	?	37,193,021
Medical insurance	42,596,285	?	818,538,486	?	(826,067,942)	?	35,066,829
Work-related injury insurance	2,430,318	?	48,118,375	?	(48,422,501)	?	2,126,192
Housing fund	29,798,139	?	1,034,105,760	?	(1,044,206,780)	?	19,697,119
Labour union fee, staff and workers’ education fee	871,474,749	?	362,090,148	?	(187,222,198)	?	1,046,342,699
Staff bonus and welfare fund	20,553,209	?	-	?	-	?	20,553,209
Other short-term employee benefits	28,292	?	17,436,633	?	(13,968,428)	?	3,496,497
?	?	?	?	?	?	?	?
Total	2,656,369,348	?	16,850,640,827	?	(16,462,441,948)	?	3,044,568,227

????

?	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	4,304,276,089	?	12,995,283,767	?	(15,610,071,500)	?	1,689,488,356
Staff welfare	-	?	1,212,939,702	?	(1,212,939,702)	?	-
Social insurance	43,095,684	?	780,825,248	?	(778,894,329)	?	45,026,603
Medical insurance	38,317,039	?	720,094,785	?	(718,045,022)	?	40,366,802
Work-related injury insurance	2,583,340	?	44,668,965	?	(44,821,987)	?	2,430,318
Maternity insurance	2,195,305	?	16,061,498	?	(16,027,320)	?	2,229,483
Housing fund	33,089,973	?	946,098,096	?	(949,389,930)	?	29,798,139
Labour union fee, staff and workers’ education fee	697,018,542	?	370,534,929	?	(196,078,722)	?	871,474,749
Staff bonus and welfare fund	20,553,209	?	-	?	-	?	20,553,209
Other short-term employee benefits	571,998	?	439,181	?	(982,887)	?	28,292
?	?	?	?	?	?	?	?
Total	5,098,605,495	?	16,306,120,923	?	(18,748,357,070)	?	2,656,369,348

???

(3) Post-employment benefits - defined contribution plans

?	Balance at 1 January 2023	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2023
?	?	?	?	?	?	?	?
Basic pension insurance	37,012,623	?	1,550,009,517	?	(1,555,024,760)	?	31,997,380
Unemployment insurance	1,320,821	?	51,043,742	?	(51,324,167)	?	1,040,396
Annuity	19,718,388	?	247,579,061	?	(247,214,100)	?	20,083,349
?	?	?	?	?	?	?	?
Total	58,051,832	?	1,848,632,320	?	(1,853,563,027)	?	53,121,125

????

?	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?
Basic pension insurance	30,284,940	?	1,408,163,207	?	(1,401,435,524)	?	37,012,623
Unemployment insurance	906,583	?	45,871,870	?	(45,457,632)	?	1,320,821
Annuity	3,044,332	?	189,183,986	?	(172,509,930)	?	19,718,388
?	?	?	?	?	?	?	?
Total	34,235,855	?	1,643,219,063	?	(1,619,403,086)	?	58,051,832

???

29 Taxes payable

?	2023	?	2022
?	?	?	?
Value-added tax	96,556,759	?	142,337,422
Corporate income tax	502,726,541	?	287,859,236
Individual income tax	39,311,660	?	48,228,934
City construction tax	309,488,421	?	428,525,949
Education surcharges and local education surcharges	223,104,253	?	306,515,854
Others	145,892,388	?	117,933,793
?	?	?	?
Total	1,317,080,022	?	1,331,401,188

????

30 Other payables

?	Note	31 December 2023	?	31 December 2022
?	?	?	?	?
Interest payable	?	175,698	?	151,200
Dividends payable	?	39,014,714	?	6,410,514
Others	(1)	19,448,570,553	?	19,625,661,555
?	?	?	?	?
Total	?	19,487,760,965	?	19,632,223,269

????

(1) Others

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

?	Note	31 December 2023	?	31 December 2022
?	?	?	?	?
Projects and equipment	?	13,556,738,142	?	13,185,841,311
Fund transaction (Note)	?	3,182,963,067	?	3,130,038,067
Deferred VAT for imported equipment	?	148,348,308	?	196,440,706
Repurchase obligation of restricted shares	V.42	457,401,616	?	753,440,228
Accrued water and electricity charges and freight	?	113,409,651	?	407,770,818
Security and deposits	?	764,238,522	?	505,702,125
External agency fee	?	109,646,050	?	172,851,477
Others	?	1,115,825,197	?	1,273,576,823
?	?	?	?	?
Total	?	19,448,570,553	?	19,625,661,555

????

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

Note: The other payables by the Group as at 31 December 2023 are amounts and interests

due to original controlling shareholders of Nanjing Display Technology and ChengduDisplay Sci-tech acquired in 2020, with interest rates of 2.175% and 0%.

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

?	31 December 2023					?	31 December 2022
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	14,629,710,281	?	?	?	?	?	13,336,886,237
USD	555,743,933	?	7.0827	?	3,936,167,554	?	736,000,871	?	6.9646	?	5,125,951,666
JPY	12,646,824,124	?	0.0502	?	634,870,571	?	18,492,932,844	?	0.0524	?	969,029,681
Other foreign currencies	?	?	?	?	247,822,147	?	?	?	?	?	193,793,971
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	19,448,570,553	?	?	?	?	?	19,625,661,555

????

31 Non-current liabilities due within one year

As at 31 December, the non-current liabilities due within one year for the Group were long-term loans due within one year, lease liabilities, and long-term payables.

?	?	31 December 2023
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	116,082,704	?	Pledged
- RMB	?	?	?	?	?	11,632,397,549	?	Collateralised
- RMB	?	?	?	?	?	1,584,339,256	?	Guaranteed
- RMB	?	?	?	?	?	7,072,242,667	?	Credited
- USD	?	538,790,096	?	7.0827	?	3,816,088,613	?	Collateralised
?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	?	24,221,150,789	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.35	?	?	?	?	47,178,393	?	?
Lease liabilities	V.34	?	?	?	?	168,698,260	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	24,437,027,442	?	?

????

?	?	31 December 2022
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	117,008,022	?	Pledged
- RMB	?	?	?	?	?	11,356,508,048	?	Collateralised
- RMB	?	?	?	?	?	94,144,290	?	Guaranteed
- RMB	?	?	?	?	?	5,528,984,741	?	Credited
- USD	?	694,159,756	?	6.9646	?	4,834,545,037	?	Collateralised
?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	?	21,931,190,138	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.35	?	?	?	?	143,117,840	?	?
Lease liabilities	V.34	?	?	?	?	118,302,766	?	?
Contribution of non-controlling interests with redemption provisions	V.38	?	?	?	?	511,140,000	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	22,703,750,744	?	?

???

32 Other current liabilities

Item	?	31 December 2023	?	31 December 2022
?	?	?	?	?
Warranty provisions	?	2,751,418,713	?	3,368,859,501
Refund liability	?	137,738,457	?	101,672,253
Pending output VAT	?	190,865,955	?	139,462,782
Others	?	5,750,466	?	3,973,137
?	?	?	?	?
Total	?	3,085,773,591	?	3,613,967,673

???

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.

33 Long-term loans

?	?	31 December 2023
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	815,374,959	?	Pledged
- RMB	?	?	?	?	?	43,946,736,428	?	Collateralised
- RMB	?	?	?	?	?	4,721,896,695	?	Guaranteed
- RMB	?	?	?	?	?	72,344,096,703	?	Credited
- USD	?	3,379,980,096	?	7.0827	?	23,939,385,026	?	Collateralised
Less: Long-term loans due within one year	V.31	?	?	?	?	24,221,150,789	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	121,546,339,022	?	?

????

?	?	31 December 2022
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	1,058,900,427	?	Pledged
- RMB	?	?	?	?	?	49,363,519,760	?	Collateralised
- RMB	?	?	?	?	?	4,326,076,807	?	Guaranteed
- RMB	?	?	?	?	?	58,386,326,488	?	Credited
- USD	?	4,586,027,388	?	6.9646	?	31,939,846,346	?	Collateralised
Less: Long-term loans due within one year	V.31	?	?	?	?	21,931,190,138	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	123,143,479,690	?	?

???

34 Lease liabilities

Item	Note	31 December 2023	?	1 January 2023
?	?	?	?	?
Long-term lease liabilities	?	710,839,756	?	656,888,776
Less: Lease liabilities due within one year	V.31	168,698,260	?	118,302,766
?	?	?	?	?
Total	?	542,141,496	?	538,586,010

?????

During the year ended 31 December 2023, income from short-term leases and leases of low-value assets which are accounted for using the practical expedient as well as sub-leasingright-of-use assets for which the Group, as a lessee, was not significant.

35 Long-term payables

Item	31 December 2023	?	31 December 2022
?	?	?	?
Obligations under finance leases	218,789,786	?	372,704,917
Less: Obligations under finance leases due within one year	47,178,393	?	143,117,840
?	?	?	?
Total	171,611,393	?	229,587,077

????

As at 31 December 2023, 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 term expires,the Group conducts accounting treatment according to mortgage loans and presents them aslong-term payables.

36 Provisions

Item	31 December 2023	?	31 December 2022
?	?	?	?
Outstanding litigation	3,580,000	?	-

37 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	3,798,389,149	?	745,618,201	?	(547,154,297)	?	(238,241,725)	?	3,758,611,328
Related to income	1,357,958,183	?	1,939,512,378	?	(2,293,029,934)	?	-	?	1,004,440,627
?	?	?	?	?	?	?	?	?	?
Total	5,156,347,332	?	2,685,130,579	?	(2,840,184,231)?	?	(238,241,725?)	?	4,763,051,955

????

38 Other non-current liabilities

Item	Note	31 December 2023	?	31 December 2022
?	?	?	?	?
Contribution of non-controlling interests with redemption provisions		2,500,522,066	?	2,499,075,805

????

The contribution of non-controlling interests with redemption provisions is mainly due to theredemption obligation of the Company to the non-controlling interests of Fuzhou BOE. TheCompany recognises the above non-controlling interests contribution as a financial liabilitywhich is subsequently measured at the cost of amortisation. According to the contracts, theCompany will eventually carry out the repurchasing plan during the period from 2025 to2034.

39 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	38,196,363,421	?	-	?	(543,834,226)	?	(543,834,226)	?	37,652,529,195

????

On May 25th, 2023, our company conducted a repurchase and cancellation of 10,298,610restricted shares at the Shenzhen Branch of China Securities Registration and ClearingCorporation Limited. Upon completion of this repurchase and cancellation, the company'stotal share capital was adjusted from 38,196,363,421 shares to 38,186,064,811 shares.

On August 29th, 2023, our company cancelled 28,186,133 treasury shares held in adedicated repurchase account at the Shenzhen Branch of China Securities Registration andClearing Corporation Limited. Following this cancellation, the company's total share capitalwas further reduced from 38,186,064,811 shares to 38,157,878,678 shares.

On December 25th, 2023, our company proceeded with the cancellation of 499,999,919treasury shares held in the dedicated repurchase account at the Shenzhen Branch of ChinaSecurities Registration and Clearing Corporation Limited, and simultaneously completed therepurchase and cancellation of 5,349,564 restricted shares. As a result of this combinedrepurchase and cancellation action, the company's total share capital was adjusted downfrom 38,157,878,678 shares to 37,652,529,195 shares.

40 Other equity instruments

(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the

year are set out as follows:

Outstanding financial instruments

Issuance date

Accounting classification

Interest rate

Issuance price

Quantity

Amount

Maturity date or renewal status

Conditions for conversion

Conversion status

22BOEY1

25 March 2022

Equity instrument

3.50%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

????

(2) Major terms:

With the approval document No. 1801 [2019] of the China Securities Regulatory Commission(“CSRC”), the Company issued renewable corporate bonds to qualified investors on March25, 2022. The full name of these bonds was Renewable Corporate Bond Publicly Issued byBOE Technology Group Co., Ltd. (digital economy) in 2022 (the First Phase), which referredto as 22BOEY1 (“2022 bond”).

2022 bond have a base term of 3 years and take every three interest-bearing years as aperiod. The Company is entitled to choose to extend the maturity by 1 period at the end ofthe agreed base term or at the end of each extended period, or choose to fully redeem the2022 bond at the end of the period. The nominal interest rate of the 2022 bond is fixed duringthe first period, and then is reset once every period. The nominal interest rate in the firstperiod is the initial benchmark interest rate plus the initial spread, and the nominal interestrate in the subsequent period is adjusted to the current benchmark interest rate plus theinitial spread and 300 basis points. Therefore, when the Company exercises the renewaloption, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase sharply. The 2022 bond have an issuer’s right to defer the paymentof interest. Unless a mandatory interest payment event occurs (including distributions toordinary shareholders and decrease of registered capital). At each interest payment date ofthe bonds, the Company may choose at its discretion whether to defer the payment of thecurrent interest as well as all the deferred interests and the yields under this term until thenext interest payment date without being subjected to any limit on the number of interestdeferring attempts.

As at 31 December 2023, the actual issuance of the 2022 bond amounted to RMB2,000,000,000 in total, and the Company considers that the renewable corporate bonds donot meet the definition of financial liabilities, and therefore will charge the total amount of theissuance to other equity instruments after deducting underwriting fees and other transactioncosts.

(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		Decrease during the year		Accumulated interest			?	At the end of the year
Outstanding financial instruments	Quantity	Carrying amount	Quantity	Carrying amount	Quantity	Carrying amount	Charge for the year	?	Paid during the year		Quantity	?	Carrying amount
?	?	?	?	?	?	?	?		?		?		?
20BOEY1	20,000,000	2,050,610,478	-	-	(20,000,000)	(1,989,179,245)	11,368,767		(72,800,000)		-		-
20BOEY2	20,000,000	2,045,184,865	-	-	(20,000,000)	(1,989,320,755)	14,935,890		(70,800,000)		-		-
20BOEY3	20,000,000	2,037,168,519	-	-	(20,000,000)	(1,989,415,094)	22,246,575		(70,000,000)		-		-
22BOEY1	20,000,000	2,043,402,946	-	-	-	-	70,000,000		(70,000,000)		20,000,000		2,043,402,946
?	?	?	?	?	?	?	?		?		?		?
Total	80,000,000	8,176,366,808	-	-	(60,000,000)	(5,967,915,094)	118,551,232		(283,600,000)		20,000,000		2,043,402,946

????

On February 28, March 19, and April 27, 2020, our company issued the 2020 publicly issuedrenewable corporate bonds of BOE Technology Group Co., Ltd. to qualified investors (forqualified investors), which referred to as 20BOEY1, 20BOEY2, 20BOEY3 respectively (“2020bond”). As at 31 December 2023, the 2020 bond has been issued for three years, the Companyhas not exercised the bond issuer’s renewal option and has fully paid the principal and interestof the 2020 bond.

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

?	31 December 2023	?	31 December 2022
?	?	?	?
Attributable to shareholders of the Company	129,428,307,067	?	136,086,175,204
- Equity attributable to ordinary shareholders of the Company	127,384,904,121	?	127,909,808,396
- Equity attributable to holders of the Company’s other equity instruments	2,043,402,946	?	8,176,366,808
Equity attributable to non-controlling shareholders	68,370,379,252	?	65,954,391,821
- Equity attributable to non-controlling ordinary shareholders	68,370,379,252	?	65,954,391,821
- Equity attributable to non-controlling shareholders of other equity instruments	-	?	-

????

(5) Accrued interest on holders of other equity instruments

In 2023, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB 118,551,232on renewablecorporate bonds from undistributed profits and paid interest of RMB 283,600,000 onrenewable corporate bonds.

41 Capital reserve

Item	Note	Share premium	?	Other capital reserves	?	Total
?	?	?	?	?	?	?
Balance at the beginning of the year	?	53,837,673,239	?	1,387,212,436	?	55,224,885,675
Add: Changes in shareholding ratio of subsidiaries	?	(1,219,955,094)	?	-	?	(1,219,955,094)
Equity-settled share-based payment	XII	-	?	309,120,206	?	309,120,206
Other movements in equity of associates	V.11	-	?	61,662,689	?	61,662,689
Cancellation of treasury shares	?	(2,244,946,976)	?	-	?	(2,244,946,976)
Others	?	(32,084,906)	?	14,899,152	?	(17,185,754)
?	?	?	?	?	?	?
Balance at the end of the year	?	50,340,686,263	?	1,772,894,483	?	52,113,580,746

????

42 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	3,508,201,911	?	-	?	(3,046,165,671)	?	462,036,240

???

According to the resolution passed by the 13th Meeting of the 10th Board of Directors andthe 4th Meeting of the 10th Supervisory Board on March 31st, 2023, regarding 'The Proposalon Repurchasing and Cancelling Part of Restricted Shares,' the company completed therepurchase and cancellation of 10,298,610 restricted shares under the incentive plan as ofMay 25th, 2023. The average repurchase price per share was RMB 2.41, resulting in adecrease in treasury shares of RMB 24,819,650, while the difference of RMB 14,521,040between the cancelled treasury shares and the share capital was deducted from the Capitalreserve - Share premium.

Based on the resolution approved during the same meetings on March 31st, 2023,concerning 'The Proposal on Achieving the Conditions for the First Lifting of RestrictionsPeriod for the 2020 Stock Option and Restricted Share Incentive Plan and the First ExercisePeriod for the Initial Grant of Stock Options,' the company confirmed that a total of102,260,780 restricted shares were eligible for lifting restrictions. These shares were listedfor circulation on April 11th, 2023, corresponding to a reduction of RMB 240,210,572 in otherpayables - obligation to repurchase restricted shares (Note V. 30) and Treasury shares.

In accordance with the resolution passed by the 17th Meeting of the 10th Board of Directorson July 24th, 2023, regarding 'The Proposal on Cancelling Part of Treasury shares in theCompany's Dedicated Repurchase Account,' the company finished the cancellation of28,186,133 shares within the dedicated repurchase account on August 29th, 2023. Theaverage repurchase price per share was RMB 5.71, reducing treasury shares by RMB160,964,972. The difference of RMB 132,778,839 between the cancelled treasury sharesand the share capital was then deducted from Capital reserve - Share premium.

Pursuant to the resolution adopted at the 21st Meeting of the 10th Board of Directors and the7th Meeting of the 10th Supervisory Board on October 30th, 2023, about 'The Proposal onRepurchasing and Cancelling Part of Restricted Shares,' the company concluded therepurchase and cancellation of 5,349,564 restricted shares under the incentive plan onDecember 25th, 2023. The average repurchase price per share was RMB 2.35, leading to adecrease in treasury shares of RMB 12,566,126, and the difference of RMB 7,216,562between the cancelled treasury shares and the share capital was debited against the Capitalreserve - Share premium.

Following the approval at the 23rd Meeting of the 10th Board of Directors on November 28th,2023, concerning 'The Proposal on Changing the Use of Repurchased Shares andCancelling Them,' the company accomplished the change of use and subsequentcancellation of 499,999,919 shares within the dedicated repurchase account on December25th, 2023. The average repurchase price per share was RMB 5.24, reducing treasuryshares by RMB 2,620,105,418, and the difference of RMB 2,120,105,499 between thecancelled treasury shares and the share capital was deducted from the Capital reserve -Share premium.

During 2023, the company recognized restricted share dividends amounting to RMB17,173,897, which led to a decrease in other payables - obligation to repurchase restrictedshares (Note V. 30) and Treasury shares.

43 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

Less: Amount transferred from other comprehensive income to profit or loss

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

(121,272,681)

(284,719,598)

13,421,765

(297,850,012)

(291,351)

(51,690,779)

(367,431,914)

Including: Other comprehensive income recognised under equity method

121,391,777

(290,012,370)

12,246,372

(302,258,742)

1,175,221

(182,042,186)

Changes in fair value of investments in other equity instruments

(242,664,458)

5,292,772

1,175,393

4,408,730

(291,351)

(52,866,000)

(185,389,728)

Items that may be reclassified to profit or loss

(952,495,349)

279,822,666

182,930,039

96,892,627

(769,565,310)

Including: Other comprehensive income recognised under equity method

(156,851)

38,009

(118,842)

Translation differences arising from translation of foreign currency financial statements

(952,338,498)

279,784,657

182,892,030

96,892,627

(769,446,468)

Total

(1,073,768,030)

(4,896,932)

13,421,765

(114,919,973)

96,601,276

(51,690,779)

(1,136,997,224)

44 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	2,951,392,625	?	330,597,179	?	117,522	?	3,282,107,326
Discretionary surplus reserve	289,671,309	?	-	?	-	?	289,671,309
?	?	?	?	?	?	?	?
Total	3,241,063,934	?	330,597,179	?	117,522	?	3,571,778,635

????

45 Retained earnings

Item	Note	2023	?	2022
?	?	?	?	?
Retained earnings at the beginning of the year (before adjustment)	?	35,829,465,307	?	37,106,514,799
Total adjustments for opening retained earnings (“+” for increase; “-” for decrease)		-	?	(161,882)
Retained earnings at the beginning of the year (after adjustment)	?	35,829,465,307	?	37,106,352,917
Add: Net profits for the year attributable to shareholders of the Company	?	2,547,435,360	?	7,541,423,198
Less: Appropriation for statutory surplus reserve	?	330,597,179	?	348,186,351
Interest on holders of other equity instruments	V.40	118,551,232	?	530,695,890
Dividends to ordinary shares	?(a)	2,296,367,348	?	7,958,923,130
Transfer of other comprehensive income to retained earnings	(b)	51,808,301	?	(19,494,563)
?	?	?	?	?
Retained earnings at the end of the year	?	35,579,576,607	?	35,829,465,307

????

(a) According to the Annual Shareholders’ Meeting for 2022 held on 5 May 2023, the

Company distributed cash dividends to shareholders of A shares and B shares on 7June 2023 (A shares) and 9 June 2023 (B shares), with RMB 0.61 (2022: RMB 2.1)every 10 shares and a profit distribution amount of RMB 2,297,635,715. Consideringthe turnover rate, the corresponding dividends of the expected non-exercisableportions of restricted shares are RMB 1,268,367 with a profit distribution of RMB2,296,367,348 (2022: RMB 7,958,923,130).

(b) The amounts both transferred from other comprehensive income to retained earnings

which is associates’ losses from disposal of other equity instrument investmentsincluded in retained earnings and changes in the fair value of other equity instrumentinvestments are carried out to retained earnings in 2023 are RMB 51,808,301 (2022:

income RMB 19,494,563).

Company included appropriation to surplus reserves made by the Company’ssubsidiaries amounting to RMB 6,738,372,634 (2022: RMB 6,206,465,315).

46 Operating income and operating costs

?	2023			?	2022
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	169,749,300,319	?	148,637,127,117	?	174,113,214,324	?	154,442,890,090
Other operating activities	4,794,145,576	?	3,995,934,250	?	4,300,516,855	?	3,087,676,062
?	?	?	?	?	?	?	?
Total	174,543,445,895	?	152,633,061,367	?	178,413,731,179	?	157,530,566,152
?	?	?	?	?	?	?	?
Including: Revenue from contracts with customers	174,029,517,307	?	152,524,153,735	?	177,667,655,331	?	157,352,470,042
Other income	513,928,588	?	108,907,632	?	746,075,848	?	178,096,110

????

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

Revenue and the related costs of the Group's sales before intended use are as follows:

Relating to ordinary activities:

?	2023	?	2022

Operating income	2,109,347,934	?	1,407,856,936
Operating costs	1,877,621,445	?	1,514,976,278

47 Taxes and surcharges

?	2023	?	2022
?	?	?	?
Property tax	597,939,410	?	561,061,660
City maintenance and construction tax	171,689,341	?	268,999,607
Education surcharges and local education surcharges	125,103,191	?	193,572,818
Stamp duty	156,907,291	?	167,033,833
Land use tax	59,008,233	?	50,378,527
Others	22,338,399	?	34,124,894
?	?	?	?
Total	1,132,985,865	?	1,275,171,339

????

48 Selling and distribution expenses

?	2023	?	2022
?	?	?	?
Warranty provisions	1,840,608,669	?	2,390,095,031
Staff costs	1,152,898,586	?	1,112,021,277
Share-based payments	47,456,891	?	97,853,078
Others	695,976,059	?	633,320,911
?	?	?	?
Total	3,736,940,205	?	4,233,290,297

????

49 General and administrative expenses

?	2023	?	2022
?	?	?	?
Staff costs	3,190,433,935	?	3,251,030,370
Depreciation and amortisation	935,214,349	?	971,573,303
Share-based payments	106,565,976	?	238,162,832
Repair expense	41,921,740	?	68,934,663
Others	1,670,739,540	?	1,717,935,838
?	?	?	?
Total	5,944,875,540	?	6,247,637,006

????

50 Research and development expenses

?	2023	?	2022
?	?	?	?
Staff costs	4,696,640,452	?	4,601,448,025
Depreciation and amortisation	2,263,292,470	?	2,000,893,037
Material expenses	1,692,001,767	?	1,907,254,468
Share-based payments	134,440,962	?	269,690,937
Others	2,533,127,437	?	2,321,482,210
?	?	?	?
Total	11,319,503,088	?	11,100,768,677

????

51 Financial expenses

?	2023	?	2022
?	?	?	?
Interest expenses from loans	4,093,007,199	?	4,033,749,371
Less: Borrowing costs capitalised	556,117,300	?	461,537,933
Interest income from bank deposits	(2,032,287,888)	?	(1,483,022,892)
Exchange (gains) / losses	(439,326,037)	?	258,458,498
Other financial expenses	85,034,572	?	97,483,531
?	?	?	?
Total	1,150,310,546	?	2,445,130,575

????

The interest rate per annum, at which the borrowing costs were capitalised by the Group,was 2.95% ~ 3.95% (2022: 3.25% ~ 4.25%) for the year.

52 Other income

?	2023	?	2022
?	?	?	?
Government grants related to assets	547,154,297	?	739,587,184
Government grants related to income	3,443,984,813	?	4,717,326,643
Weighted deduction of input VAT	177,734,568		4,064,149
Others	33,459,478	?	24,551,348
?	?	?	?
Total	4,202,333,156	?	5,485,529,324

????

The amount of government subsidies related to income received by the Group in 2023 anddirectly included in other income was RMB 1,150,954,879.

53 Investment income

?	Note	2023	?	2022
?	?	?	?	?
Income from long-term equity investments accounted for using the equity method	V.11	702,555,344	?	528,103,680
Investment income from disposal of long-term equity investments	?	1,581,850	?	829,872,568
Dividend income from investments in other equity instruments	V.12	28,419,020	?	35,354,468
Including: Dividend income from investments in other equity instruments held at the balance sheet date	?	28,419,020	?	35,354,468
Investment income from disposal of financial assets held for trading	?	69,166,228	?	116,153,975
Gains from remeasurement of remaining equity interests to fair value upon loss of control		-	?	4,266,631,856
Others	?	8,987,200	?	318,151,337
?	?		?	?
Total	?	810,709,642	?	6,094,267,884

????

54 Gains from changes in fair value

Item	2023	?	2022
?	?	?	?
Financial assets held for trading	291,542,233	?	159,344,584

????

55 Credit losses

Item	2023	?	2022
?	?	?	?
Accounts receivable	15,213,883	?	49,897,296
Other receivables	3,328,671	?	1,679,930
?Notes receivable	19,644	?	-

Total	18,562,198	?	51,577,226

????

56 Impairment losses

?	2023	?	2022
?	?	?	?
Impairment losses of inventories	2,202,962,576	?	6,975,372,718
Impairment losses of fixed assets	199,363,784	?	143,071,492
Impairment losses of construction in progress	3,086,619	?	29,768,263
Impairment losses of contract assets	817,655		-
Impairment losses of long-term equity investments	-	?	8,503,403
Impairment losses of goodwill	-	?	147,755,754
?	?	?	?
Total	2,406,230,634	?	7,304,471,630

????

57 Gains from asset disposals

Item	2023	?	2022	?	Amount recognised in extraordinary gain and loss in 2023
?	?	?	?	?	?
Gains from disposal of fixed assets	9,798,475	?	7,963,317	?	9,798,475
Gains from disposal of right-of-use assets	3,291,911	?	3,002,239	?	3,291,911
?	?	?	?	?	?
Total	13,090,386	?	10,965,556	?	13,090,386

????

58 Non-operating income and non-operating expenses

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

Item	2023	?	2022	?	Amount recognised in extraordinary gain and loss in 2023
?	?	?	?	?	?
Government grants	13,138,657	?	1,751,445	?	13,138,657
Gain on disposal of non-current assets	10,212,047		1,448,647		10,212,047
Revenue from the recycling and disposal of surplus waste	176,876,507		26,348,893		176,876,507
Others	183,768,952	?	133,693,872	?	183,768,952
?	?	?	?	?	?
Total	383,996,163	?	163,242,857	?	383,996,163

????

Government grants recognised in profit or loss for the current period

Item	2023	?	2022
?	?	?	?
Policy incentives and others	13,138,657	?	1,751,445

???

(2) Non-operating expenses

?	2023	?	2022	?	Amount recognised in extraordinary gain and loss in 2023
?	?	?	?	?	?
Donations provided	4,201,070	?	28,491,697	?	4,201,070
Losses from scrapping of non-current assets	42,927,593	?	17,322,542	?	42,927,593
Others	22,520,694	?	41,435,304	?	22,520,694
?	?	?	?	?	?
Total	69,649,357	?	87,249,543	?	69,649,357

????

59 Income tax expenses

?	Note	2023	?	2022
?	?	?	?	?
Current tax expense based on tax law and regulations	?	1,311,971,433?	?	1,675,605,623
Changes in deferred tax assets/liabilities	(1)	151,155,913?	?	116,115,039
?	?	?	?	?
Total	?	1,463,127,346	?	1,791,720,662

????

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

?	2023	?	2022
?	?	?	?
Origination and reversal of temporary differences	151,155,913	?	116,115,039

????

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

?	2023	?	2022
?	?	?	?
Profit before taxation	1,832,998,675	?	51,218,939
Expected income tax expenses at tax rate of 15%	274,949,801?	?	7,682,841
Add: Effect of different tax rates applied by subsidiaries	18,028,526?	?	(14,751,718)
Effect of non-deductible costs, expenses and losses	51,628,306?	?	315,429,605
Tax effect of weighted deduction and tax preference	(1,017,881,773)	?	(2,652,168,644)
Utilisation of prior year tax losses	(269,688,693)	?	(49,695,309)
Tax effect of deductible losses of deferred tax assets not recognised	2,326,078,995?	?	4,456,877,895
Tax effect of deductible temporary differences of deferred tax assets not recognised	80,012,184?	?	(271,654,008)
?	?	?	?
Income tax expenses	1,463,127,346	?	1,791,720,662

????

60 Basic earnings per share and diluted earnings per share

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

?	2023	?	2022
?	?	?	?
Consolidated net profit attributable to shareholders of the Company	2,547,435,360	?	7,541,423,198
Less: Current interest of other equity instruments	118,551,232	?	530,695,890
Less: Current dividends of restricted shareholders	17,173,897	?	64,525,832
Consolidated net profit attributable to ordinary shareholders of the Company	2,411,710,231	?	6,946,201,476
Weighted average number of ordinary shares outstanding (shares)	37,429,510,530	?	37,502,641,911
Basic earnings per share (RMB/share)	0.06	?	0.19

????

Weighted average number of ordinary shares is calculated as follows:

?	2023	?	2022
?	?	?	?
Issued ordinary shares at the beginning of the year	37,355,546,569	?	37,638,356,849
Add: Weighted average number of ordinary shares issued in current period	-	?	-
Add: Weighted average number of restricted shares released from lock-up in current period	73,963,961	?	-
Less: Weighted average number of ordinary shares repurchased in current period	-	?	135,714,938
?	?	?	?
Weighted average number of ordinary shares at the end of the year	37,429,510,530	?	37,502,641,911

???

61 Cash flow statement

(1) Cash relating to operating activities

a. Proceeds relating to other operating activities:

Item	2023	?	2022
?	?	?	?
Government grants received	5,323,824,411	?	6,165,190,561?
Restricted cash at bank and on hand as well as others related to operating activities	821,660,520	?	1,232,073,535?
?	?	?	?
Total	6,145,484,931	?	7,397,264,096

b. Payments relating to other operating activities:

Item	2023	?	2022
?	?	?	?
Expenses paid during the period	7,613,110,071	?	7,129,101,409

(2) Cash relating to investing activities

a. Proceeds relating to other investing activities:

Item	2023	?	2022
?	?	?	?
Interest income	1,658,880,796?	?	1,303,694,043?
Restricted monetary funds and others related to investing activities	2,281,607,894?	?	8,248,427?
?	?	?	?
Total	3,940,488,690	?	1,311,942,470

(3) Cash relating to financing activities

a. Proceeds relating to other financing activities:

Item	2023	?	2022
?	?	?	?
Cash received for disposing of subsidiaries without a change in control	-?	?	770,432,703?
Others	-?	?	894,920?
?	?	?	?
Total	-	?	771,327,623

b. Payments relating to other financing activities:

Item	2023	?	2022
?	?	?	?
Acquisition of non-controlling interests of subsidiaries	7,429,009,200?	?	1,048,154,539?
Principal and interest related to leases and others	467,134,209?	?	1,500,840,937?
?	?	?	?
Total	7,896,143,409	?	2,548,995,476

c. Changes in liabilities arising from financing activities:

?	?	?	Additions during the year			?	Decreases during the year			?	?
?	Balance at the beginning of the year	?	Cash	?	Non-cash	?	Cash	?	Non-cash	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?	?	?
Short-term loans	2,373,938,871?	?	1,064,102,075?	?	1,053,331,132?	?	(2,745,187,544)?	?	-?	?	1,746,184,534
Long-term loans (including non-current liabilities due within one year)	145,074,669,828?	?	26,277,758,556?	?	7,293,169,349?	?	(32,878,107,922)?	?	-?	?	145,767,489,811
Lease liabilities (including non-current liabilities due within one year)	656,888,776		-		429,349,128		(375,398,148)		-		710,839,756
Long-term payables (including non-current liabilities due within one year)	372,704,917		-		29,861,870		(183,777,001)		-		218,789,786
Other non-current liabilities (including non-current liabilities due within one year)	3,010,215,805		-		26,806,261		(536,500,000)		-		2,500,522,066
?	?	?	?	?	?	?	?	?	?	?	?
Total	151,488,418,197	?	27,341,860,631	?	8,832,517,740	?	(36,718,970,615)	?	-	?	150,943,825,953

62 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

?	2023	2022
?	?	?
(a) Reconciliation of net profit / (loss) to cash flows from operating activities:	?	?
?	?	?
Net profit / (loss)	369,871,329	(1,740,501,723)
Add: Credit losses	18,562,198	51,577,226
Impairment loss	2,406,230,634	7,304,471,630
Depreciation of fixed assets, investment properties and right-of-use assets	33,721,207,174	33,422,031,705
Amortisation of intangible assets	955,466,291	995,315,014
Amortisation of long-term deferred expenses	162,353,520	83,058,206
Gains from disposal of fixed assets, intangible assets, and other long-term assets	(13,090,386)	(10,965,556)
Losses from scrapping of fixed assets and intangible assets	32,715,546	15,873,895
Financial expenses	2,567,467,227	4,070,314,610
Gains from changes in fair value	(291,542,233)	(159,344,584)
Investment income	(810,709,642)	(6,094,267,884)
Share-based payments	307,160,605	649,427,866
Change in deferred income	(393,295,377)	(1,259,742,279)
Change in deferred tax assets	(26,847,208)	25,329,486
Change in deferred tax liabilities	178,771,023	140,074,643
Increase in inventories	(1,825,979,018)	(3,360,776,944)
Increase / ( decrease) in operating receivables	(3,904,919,786)	7,975,232,270
Increase in operating payables	4,781,932,585	914,859,724
Safety fund	66,472,402	-
?	?	?
Net cash flows from operating activities	38,301,826,884	43,021,967,305

???

(b) Change in cash and cash equivalents:	?	?
?	?	?
?	2023	2022
?	?	?
Cash and cash equivalents at the end of the year	52,092,981,748	64,382,037,764
Less: Cash and cash equivalents at the beginning of the year	64,382,037,764	76,623,486,083
?	?	?
Net decrease in cash and cash equivalents	(12,289,056,016)	(12,241,448,319)

????

(2) Information on acquisition or disposal of subsidiaries during the current year:

Net proceeds for acquisition of subsidiaries:

?	?	2023	?	2022
?	?	?	?	?
Cash or cash equivalents paid during the year for acquiring subsidiaries during the year	?	(150,000,000)	?	-
Less: Cash and cash equivalents held by acquired subsidiaries	?	209,293,141	?	-
?	?	?	?	?
Net proceeds for acquisition of subsidiaries	?	59,293,141	?	-

Net payment for acquisition of subsidiaries:

?	?	2023	?	2022
?	?	?	?	?
Cash or cash equivalents paid during the year for acquiring subsidiaries during the year	?	(2,083,597,236)	?	-
Less: Cash and cash equivalents held by acquired subsidiaries	?	1,918,264,097?	?	-
?	?	?	?	?
Net payment for acquisition of subsidiaries	?	(165,333,139)	?	-

Net proceeds for disposal of subsidiaries:

?	?	2023	?	2022
?	?	?	?	?
Cash or cash equivalents received during the year for disposing of subsidiaries during the year	?	-	?	1,248,072,000
Less: Cash and cash equivalents held by acquired subsidiaries	?	-	?	311,313,078
?	?	?	?	?
Net cash received for disposing of subsidiaries	?	-	?	936,758,922

Net payment for disposal of subsidiaries:

?	?	2023	?	2022
?	?	?	?	?
Cash or cash equivalents received during the year for disposing of subsidiaries during the year	?	-	?	-
Less: Cash and cash equivalents held by acquired subsidiaries	?	-	?	144,689,766
?	?	?	?	?
Net payment for disposal of subsidiaries	?	-	?	(144,689,766)

(3) Details of cash and cash equivalents

?	2023	?	2022
?	?	?	?
Cash on hand	802,967	?	896,267
Bank deposits available on demand	52,089,093,133	?	64,378,531,680
Other monetary funds available on demand	3,085,648	?	2,609,817
?	?	?	?
Closing balance of cash and cash equivalents	52,092,981,748	?	64,382,037,764

????

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

on bank deposits at the end of the period, bank deposits with fixed interest rate andthe use of other currency funds subject to restrictions.

(4) Monetary funds other than cash and cash equivalents

Item	2023	?	2022	?	Rationale

Bank deposits with interest at fixed rates	17,740,553,353		-		Held for investment purposes
? Margin deposits	1,869,539,464	?	4,027,358,544?	?	Mainly refer to margin deposits pledged for the issuance of bills payable?
?	?	?	?	?	?
Total	19,610,092,817?	?	4,027,358,544??	?	?

??????

(5) Explanation for presentation of cash flows on a net basis

Item	Relevant facts and circumstances	?	Basis for presentation on a net basis	?	Financial impact
?	?	?	?	?	?
? Restricted monetary funds	Amounts of restricted deposits placed and recovered are presented on a net basis?	?	Cash inflows and outflows for fast-turnover, high-value, short-term items can be presented on a net basis?	?	Nil?

63 Assets with restrictive ownership titles or right of use

?	2023
Item	Book balance	?	Book value	?	Restricted type	?	Restricted circumstances
?	?	?	?	?	?	?	?
Cash at bank and on hand	1,869,539,464	?	1,869,539,464	?	Notes to the financial statements V.1	?	Notes to the financial statements V.1
Bills receivable	230,354,069	?	230,354,069	?	Pledged	?	Endorsed with resource and pledged for drawing bill
Investment properties	101,775,150	?	100,605,150	?	Mortgaged	?	Mortgaged as collateral
Fixed assets	237,742,564,332	?	136,319,471,935	?	Mortgaged	?	Mortgaged as collateral
Construction in progress	2,925,304,165	?	2,925,304,165	?	Mortgaged	?	Mortgaged as collateral
Intangible assets	1,806,103,571	?	1,546,929,316	?	Mortgaged	?	Mortgaged as collateral
?	?	?	?	?	?	?	?
Total	244,675,640,751	?	142,992,204,099	?	?	?	?

??????

?	2022
Item	Book balance	?	Book value	?	Restricted type	?	Restricted circumstances
?	?	?	?	?	?	?	?
Cash at bank and on hand	4,027,358,544	?	4,027,358,544	?	Notes to the financial statements V.1	?	Notes to the financial statements V.1
Bills receivable	28,239,380	?	28,239,380	?	Pledged	?	Endorsed with resource and pledged for drawing bill
Investment properties	94,676,065	?	39,718,001	?	Mortgaged	?	Mortgaged as collateral
Fixed assets	218,690,717,728	?	140,418,857,377	?	Mortgaged	?	Mortgaged as collateral
Construction in progress	2,051,101,917	?	2,051,101,917	?	Mortgaged	?	Mortgaged as collateral
Intangible assets	1,658,448,442	?	1,461,125,786	?	Mortgaged	?	Mortgaged as collateral
?	?	?	?	?	?	?	?
Total	226,550,542,076	?	148,026,401,005	?	?	?	?

VI. Research and development expenses

1 Presentation by nature

Item	?	2023	?	2022
?	?	?	?	?
Labour costs	?	4,722,235,784	?	4,601,448,025
Material expenses	?	1,700,125,252	?	1,907,254,468
Depreciation and amortisation	?	2,269,453,425	?	2,000,893,037
Share-based payments	?	134,440,962	?	269,690,937
Others	?	2,537,013,467	?	2,321,482,210
?	?	?	?	?
Total	?	11,363,268,890	?	11,100,768,677
?	?	?	?	?
Including: research and development expenditures that are expensed	?	11,319,503,088	?	11,100,768,677
research and development expenditures that are capitalised	?	43,765,802	?	-

2 Expenditures on research and development projects which are eligible for capitalisation

Item	Balance at the beginning of the year	?	Additions due to business combinations involving entities not under common control	?	Internal development expenditure	?	Recognised as intangible assets	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
HC SemiTek Corporation LED and Micro-LED technology development	-	?	155,132,690	?	43,765,802	?	(31,920,961)	?	166,977,531

VII. Change of consolidation scope

1 Business combination involving entities not under common control

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

Acquiree from acquisition date to 31 December 2023

Entity name

Acquisition date of equity investment

Cost of equity investment

Shareholding acquired (%)

Acquisition method

Acquisition date

Basis of acquisition date determination

Income

Net loss

Net cash outflow

Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd.

13 January 2023

152,990,214

56.28%

Capital increase

16 January 2023

Achieving actual control by holding more than half of the Board of Directors of acquiree

66,154,253

(31,052,687)

(85,861,222)

HC SemiTek Corporation

28 July 2023

2,083,597,236

23.01%

Subscription of non-public offering shares

31 August 2023

Achieving actual control by holding more than half of the Board of Directors of acquiree

1,252,521,862

(372,160,575)

(593,987,223)

???

Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. was established in November 2018 and headquartered inBeijing, China, which is mainly engaged in technology promotion and application services, its business scope includes 8K design anddevelopment, integration, recording, production, rebroadcasting, and content production.

HC SemiTek Corporation was established in November 2005 and headquartered in Wuhan, China, which is mainly engaged in the research,development, production and sales of LED chips, LED epitaxial wafers, sapphire substrates, and third-generation semiconductor compoundsGaN power electronics devices. Prior to the combination, the ultimate controlling party of HC SemiTek Corporation was the State-owned AssetsSupervision and Administration Commission of Zhuhai Government.

(2) Acquisition cost and goodwill

Acquisition cost	Beijing Zhonglianhe Ultra HD Collaborative Technology Center Co., Ltd.			?	HC SemiTek Corporation
?	Carrying amount	?	Fair value	?	Carrying amount	?	Fair value
?	?	?	?	?	?	?	?
Cash	150,000,000	?	150,000,000	?	2,083,597,236	?	2,083,597,236
Equity interests held before acquisition date	1,210,671	?	2,990,214	?	-	?	-
?	?	?	?	?	?	?	?
Total acquisition cost	151,210,671	?	152,990,214	?	2,083,597,236	?	2,083,597,236
?	?	?	?	?	?	?	?
Less: Share of the fair value of the identifiable net assets acquired	?	?	138,704,367	?	?	?	2,054,001,148
?	?	?	?	?	?	?	?
Goodwill	?	?	14,285,847	?	?	?	29,596,088

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

?	Beijing Zhonglianhe Ultra HD Collaborative Technology Center Co., Ltd.			?	HC SemiTek Corporation
?	Carrying amount	?	Fair value	?	Carrying amount	?	Fair value
?	?	?	?	?	?	?	?
Assets:	?	?	?	?	?	?	?
Current assets	227,887,259	?	227,887,259	?	5,252,742,512	?	5,252,742,512
Non-current assets	74,536,116	?	92,067,362	?	6,854,631,456	?	7,853,067,925
?	?	?	?	?	?	?	?
Liabilities:	?	?	?	?	?	?	?
Current liabilities	8,633,836	?	8,633,836	?	2,853,491,561	?	2,853,491,561
Non-current liabilities	68,283,874	?	72,666,686	?	1,377,478,403	?	1,325,760,217
?	?	?	?	?	?	?	?
Net assets	225,505,665	?	238,654,099	?	7,876,404,004	?	8,926,558,659
Less: Non-controlling interests	98,591,077	?	99,949,732	?	6,064,043,443	?	6,872,557,511
?	?	?	?	?	?	?	?
Net assets acquired	126,914,588	?	138,704,367	?	1,812,360,561	?	2,054,001,148

If there is an active market for the above identifiable assets, the quoted prices in the activemarket are used to establish their fair value; if there is no active market, their fair values areestimated based on the market prices of the same or similar types of assets which have anactive market; if there is no active market for the same asset or similar types of assets,valuation techniques are used to determine the fair value.

For the above identifiable liabilities, the payable amount or the present value of thepayable amount is its fair value.

2 Other reasons for change of consolidation scope

Except for the increase in the consolidation scope due to the above-mentioned businesscombination involving entities not under common control, other increases in the consolidationscope during the year were new subsidiaries established during the year, and the decreasesin the consolidation scope were cancellations of subsidiaries during the year.

VIII. Interests in other entities

1 Interests in subsidiaries

(1) Composition of the Group

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Beijing BOE Optoelectronics Technology Co., Ltd.

Beijing, China

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

USD 649,110,000

100%

Founded by investment

Chengdu BOE Optoelectronics Technology Co., Ltd.

Chengdu, China

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

RMB 25,000,000,000

100%

Business combinations involving entities not under common control

Hefei BOE Optoelectronics Technology Co., Ltd.

Hefei, China

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

RMB 2,700,000,000

100%

Business combinations involving entities not under common control

Beijing BOE Display Technology Co., Ltd.

Beijing, China

Development of TFT-LCD, manufacturing and sale of LCD

RMB 8,941,456,800

97.17%

2.83%

Founded by investment

Hefei Xinsheng Optoelectronics Technology Co., Ltd.

Hefei, China

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

RMB 9,750,000,000

99.97%

0.03%

Business combinations involving entities not under common control

Ordos Yuansheng Optoelectronics Co., Ltd.

Ordos, China

Manufacture and sales of AM-OLED products and auxiliary products

RMB 11,804,000,000

100%

Founded by investment

Chongqing BOE Optoelectronics Technology Co., Ltd.

Chongqing, China

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

RMB 3,845,200,000

100%

Business combinations involving entities not under common control

Fuzhou BOE Optoelectronics Technology Co., Ltd.

Fuzhou, China

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

RMB 17,600,000,000

86.08%

Business combinations involving entities not under common control

Beijing BOE Video Technology Co., Ltd.

Beijing, China

Investment platform, sales of LCD

RMB 5,636,475,800

100%

Founded by investment

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 Vacuum Electronics Co., Ltd.

Beijing, China

Manufacture and sale of vacuum electronic products

RMB 33,250,000

57.89%

Founded by investment

Beijing BOE Vacuum Technology Co., Ltd.

Beijing, China

Manufacture and sale of electronic tubes

RMB 32,000,000

100%

Founded by investment

Beijing Yinghe Century Co., Ltd.

Beijing, China

Management of engineering projects; real estate development; public parking lot for motor vehicles service; market survey

RMB 233,105,200

100%

Founded by investment

BOE Optical Science and technology Co., Ltd.

Suzhou, China

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

RMB 826,714,059

95.17%

Founded by investment

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

Beijing, China

Development, manufacture and sale of liquid display for mobile termination

USD 5,000,000

75%

Founded by investment

BOE (Hebei) Mobile Technology Co., Ltd.

Langfang, China

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

RMB 1,358,160,140

100%

Founded by investment

Beijing BOE Energy Technology Co., Ltd.

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 1,242,690,058

68.40%

Founded by investment

Beijing BOE Multimedia Technology Co., Ltd.

Beijing, China

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

RMB 400,000,000

100%

Founded by investment

Beijing BOE Life Technology Co., Ltd.

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 24,000,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Ordos City Haosheng Energy Investment Co., Ltd.

Ordos, China

Energy investment

RMB 37,440,000

100%

Founded by investment

BOE Semi-conductor Co., Ltd.

Beijing, China

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

RMB 11,250,000

84%

Founded by investment

BOE Optoelectronics Holding Co., Ltd.

Hong Kong, China

British Virgin Islands

Investment holding

USD 1,000,000,000

100%

Founded by investment

BOE (Korea) Co., Ltd.

Korea

Wholesale and retail trade

KRW 95,000,000

100%

Founded by investment

BOE Healthcare Investment & Management Co., Ltd.

Beijing, China

Investment management and project investment

RMB 18,300,000,000

100%

Business combinations involving entities not under common control

Beijing Matsushita Colour CRT Co., Ltd.

Beijing, China

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

RMB 325,754,049

88.80%

Business combinations involving entities not under common control

Hefei BOE Display Technology Co., Ltd.

Hefei, China

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

RMB 24,000,000,000

36.67%

Business combinations involving entities not under common control

Beijing BOE Technology Development Co., Ltd.

Beijing, China

Development, transfer, consulting and service of technology

RMB 1,000,000

100%

Founded by investment

Hefei BOE Zhuoyin Technology Co., Ltd.

Hefei, China

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

RMB 800,000,000

75%

Founded by investment

Beijing BOE Real Estate Co., Ltd.

Beijing, China

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

RMB 55,420,000

70%

Founded by investment

Beijing BOE Marketing Co., Ltd.

Beijing, China

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

RMB 50,000,000

100%

Founded by investment

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 Zhongxiangying Technologies Co., Ltd.

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 109,767,000

91.10%

Founded by investment

Yunnan Invensight Optoelectronics Technology Co., Ltd.

Kunming, China

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

RMB 3,040,000,000

79.10%

Founded by investment

Mianyang BOE Optoelectronics Technology Co., Ltd.

Mianyang, China

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

RMB 26,000,000,000

83.46%

Business combinations involving entities not under common control

Beijing BOE Sensing Technology Co., Ltd.

Beijing, China

Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer

RMB 4,786,482,400

100%

Founded by investment

Wuhan BOE Optoelectronics Technology Co., Ltd.

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 BOE Display”)

Chongqing, China

R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting

RMB 26,000,000,000

38.46%

Business combinations involving entities not under common control

Nanjing BOE Display Technology Co., Ltd.

Nanjing, China

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

RMB 17,500,000,000

80.83%

Business combinations involving entities not under common control

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Hefei BOE Xingyu Technology Co., Ltd.

Hefei, China

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

USD 115,380,000

65.00%

Founded by investment

Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”)

Fuzhou, China

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

RMB 50,000,000

43.46%

Business combinations involving entities not under common control

BOE Innovation Investment Co., Ltd.

Beijing, China

Project investment and investment management

RMB 4,577,000,000

100%

Founded by investment

Chengdu BOE Display Techlogy Co., Ltd. (Chengdu BOE Display)

Chengdu, China

General businesses: technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacturing of display devices [operations of branches]; sale of display devices; manufacturing of electronic components [operations of branches]; wholesale of electronic components; manufacturing of others electronic devices [operations of branches]; import and export of goods; import and export of technology; business management consulting; property management; non-residential real estate leasing; machinery and equipment leasing. (Except for business activities subject to approval in accordance with laws and regulations, operations are conducted in accordance with the law and business license.)

RMB 38,000,000,000

52.63%

Founded by investment

BOE Mled Technology Co., Ltd.

Beijing, China

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

RMB 2,140,000,000

100%

Founded by investment

BOE Smart Technology Co., Ltd. (Smart Technology)

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

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Education Technology Co., Ltd.

Beijing, China

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

RMB 55,000,000

100%

Founded by investment

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

Beijing, China

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

RMB 10,000,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Environmental Energy Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology transfer, technology promotion, technical services, technical testing of energy-saving technology, environmentally friendly new energy technology, environmental protection equipment, solar electrical energy generation, building integrated PV, electric power, power station operations and maintenance; software development; Internet data services (data centers for Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services (data centers for information processing and storage support services, excluding cloud computing data centres with a PUE over 1.4); contract energy management; water pollution treatment; air pollution control; solid waste treatment; soil pollution treatment and restoration services; environmental protection monitoring; installation, maintenance, leasing of equipment; professional design services; property management; sale of special equipment for environment protection, lighting equipment, electronic products, machinery and equipment, electrical equipment, instruments, hardware products, computers, software and auxiliary equipment, chemical products (excluding licensed chemical products); import and export of goods; import and export of technology; import and export agents; power supply business; construction engineering design; electrical installation services; various engineering and construction activities; EPC of house construction and municipal infrastructure projects; construction labour subcontracting.

RMB 100,000,000

100%

Founded by investment

Chengdu BOE Display Sci-tech Co., Ltd.

Chengdu, China

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

RMB 21,550,000,000

35.03%

Business combinations involving entities not under common control

Beijing BOE Chuangyuan Technology Co., Ltd. (Chuangyuan Technology)

Beijing, China

Manufacturing of display devices; sale of display devices; manufacturing of electronic components; wholesale of electronic components; retail of electronic components; technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; import and export of goods; import and export of technology; business management consulting; property management; machinery and equipment leasing; manufacturing of other electronic devices.

RMB 14,500,000,000

60.21%

Founded by investment

	?	?	?	?	?	?	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 Shiyan Technology Co., Ltd.	Beijing, China	Beijing, China		Primarily engaged in technical services, technology development; manufacturing of computer software and hardware, as well as peripheral equipment.		RMB 209,000,000	80%	-	?	Founded by investment
Mianyang BOE Electronic Technology Co., Ltd. (Mianyang Electronic Technology)	Mianyang, China	Mianyang, China		Investment, research and development, production and sales of products related to semiconductor display and the supporting products	?	RMB 2,400,000,000	100%	-	?	Founded by investment
HC SemiTek Corporation	Wuhan, China	Wuhan, China		Research, development, production and sales of LED chips, LED epitaxial wafers, sapphire substrates, and third-generation semiconductor compounds GaN power electronics devices	?	RMB 1,616,698,797	23.01%	-	?	Business combination involving entities not under common control

???

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) on 25December 2018 and 5 February 2021. Wuhan Airport Economic Development ZoneIndustrial Development Investment Group Co., Ltd. and Hubei Changbai IndustrialInvestment Fund Partnership (limited Partnership) agreed to follow the Company’s will to actas the persons acting in concert, unconditionally and irrevocably exercising voting rights inaccordance with the opinions of the Company, the voting rights of the Company to WuhanBOE is 100%.

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

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

The Company signed a concerted action agreement with Chengdu Advanced ManufacturingIndustry Investment Co., Ltd., a shareholder of Chengdu Display Sci-tech, and ChengduAirport Xingcheng Investment Group Co., Ltd. on December 17, 2020. The Company signeda concerted action agreement with Nanjing Zhongdian Panda Information Industry GroupCo., Ltd. on December 31, 2020, and signed a concerted action agreement with ZhongdianFinancial Investment Holding Co., Ltd. on June 28, 2022, A concerted action agreement wassigned with Ya'an Yashuang Investment Co., Ltd. on November 30, 2022, and ChengduAdvanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport XingchengInvestment Group Co., Ltd., Ya'an Yashuang Investment Co., Ltd., Nanjing Zhongdian PandaInformation Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd.acted in concert with the wishes of the company, We unconditionally and irrevocablyexercise our voting rights in accordance with our company's opinions, so our company'svoting rights ratio in Chengdu Display Sci-tech is 96.75%.

The Company and New Sure Limited entered into the Share Voting Rights ManagementAgreement on 4 November 2022, pursuant to which New Sure Limited agreed tounconditionally and irrevocably delegate to the Company the exercise and management ofits voting, nomination and ancillary rights in respect of its holdings in HC SemiTekCorporation; the Company and Yiwu Harmony Core Light Equity Investment Partnership(Limited Partnership) signed an agreement on 10 November 2022, whereby YYiwu HarmonyCore Light Equity Investment Partnership (Limited Partnership) undertook that it would not,individually, jointly or with the assistance of a third party, seek to obtain the control over HCSemiTek Corporation; Zhuhai Huafa Technology Industry Group Co., Ltd. issued acommitment letter to the Company on 10 November 2022, undertaking that Zhuhai HuafaTechnology Industry Group Co., Ltd. and its controlled entities will not seek the control overHC SemiTek Corporation individually, jointly or with the assistance of third parties, and willnot form a concerted action relationship with the shareholders of HC SemiTek Corporation orseek the control over HC SemiTek Corporation by way of entrustment, agreement, alliance orsigning of a concerted action agreement, etc. Therefore, the Company's percentage of votingrights over HC SemiTek Corporation is 26.52%, which makes the Company a controllingshareholder of HC SemiTek Corporation.

(2) Material non-wholly owned subsidiaries

Name of the subsidiary	Proportion of ownership interest held by non-controlling interests	?	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
?	?	?	?	?	?	?	?
Mianyang BOE	16.54%	?	(3,998,675)	?	-	?	3,554,429,180
Wuhan BOE	52.86%	?	(157,799,681)	?	-	?	12,993,173,506
Chongqing BOE Display	61.54%	?	(792,915,395)	?	-	?	14,775,015,526

????

(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:

Mianyang BOE

Wuhan BOE

Chongqing BOE Display

2023

2022

2023

2022

2023

2022

Current assets

10,753,172,652

12,372,285,496

6,885,618,252

7,442,285,566

8,098,980,132

8,590,561,462

Non-current assets

35,310,022,879

37,212,140,922

35,269,508,547

38,934,583,089

37,527,686,707

32,479,448,086

Total assets

46,063,195,531

49,584,426,418

42,155,126,799

46,376,868,655

45,626,666,839

41,070,009,548

Current liabilities

11,025,760,688

11,072,411,471

5,377,137,118

6,251,107,827

8,612,279,639

5,410,946,190

Non-current liabilities

13,547,536,533

17,008,183,759

12,197,638,748

15,254,879,708

13,005,587,192

12,186,708,120

Total liabilities

24,573,297,221

28,080,595,230

17,574,775,866

21,505,987,535

21,617,866,831

17,597,654,310

Operating income

19,379,451,169

16,357,203,835

14,876,922,434

12,845,309,881

4,226,393,760

883,001,124

Net loss

(24,175,792)

(2,301,228,643)

(298,523,801)

(3,788,455,205)

(1,288,455,305)

(327,058,484)

Total comprehensive income

(24,175,792)

(2,301,228,643)

(298,523,801)

(3,788,455,205)

(1,288,455,305)

(327,058,484)

Cash inflows / (outflows) in operating activities

5,668,948,328

7,118,785,052

5,254,058,686

2,816,292,270

171,287,026

(185,310,156)

???

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
?	?	?	?
Hefei Display Technology	8.33%	?	36.67%
Chuangyuan Technology	79.31%	?	60.21%

????

(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/decrease of the Company and the capitalincrease of their non-controlling interests or the failure to increase capital by the Companyand the non-controlling interests of the subsidiaries in equal proportion and the acquisition ofthe non-controlling interests, which results in the decrease of capital reserves by RMB1,219,955,094. See Note V. 41.

3 Interests in associates

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

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

IX. Risk related to financial instruments

The Group has exposure to the following main risks from its use of financial instruments inthe normal course of the Group’s operations:

- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks

The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policiesand processes for measuring and managing risks, and their changes during the year.

The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities. The internal audit department of the Group undertakesboth regular and ad-hoc reviews of risk management controls and procedures.

1 Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to receivables. Exposure to these credit risks is monitored by management on anongoing basis.

The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.

In respect of receivables, the Group has established a credit policy under which individualcredit evaluations are performed on all customers to determine the credit limit and termsapplicable to the customers. These evaluations focus on the customers’ financial position,the external ratings of the customers and the record of previous transactions. Receivablesare due within 7 to 120 days from the date of billing. Debtors with balances that are past dueare requested to settle all outstanding balances before any further credit is granted.Normally, the Group does not obtain collateral from customers.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer. Therefore, significant concentrations of credit risk primarily arise when theGroup has significant exposure to individual customers. At the balance sheet date, 36%(2022: 39%) of the Contract assets total accounts receivable were due from the five largestcustomers of the Group. In addition, the accounts receivable not overdue or impaired ismainly related to many clients who don’t have payment in 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 XIV, as at 31 December 2023 the Groupdoes not provide any external guarantees which would expose the Group or the Company tocredit risk.

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 31 December) and the earliest date the Group can be required to pay:

?	2023 Contractual undiscounted cash flow									?	?
?	Within 1 year or on demand (inclusive)	?	More than 1 year but less than 3 years (inclusive)	?	More than 3 years but less than 5 years (inclusive)	?	More than 5 years	?	Total	?	Carrying amount of balance sheet
?	?	?	?	?	?	?	?	?	?	?	?
Financial liabilities	?	?	?	?	?	?	?	?	?	?	?
Short-term loans	1,773,280,214	?	-	?	-	?	-	?	1,773,280,214	?	1,746,184,534
Bills payable	919,313,033	?	-	?	-	?	-	?	919,313,033	?	919,313,033
Accounts payable	32,977,603,351	?	-	?	-	?	-	?	32,977,603,351	?	32,977,603,351
Other payables	19,487,760,965	?	-	?	-	?	-	?	19,487,760,965	?	19,487,760,965
Non-current liabilities due within one year	24,831,720,125	?	-	?	-	?	-	?	24,831,720,125	?	24,437,027,442
Long-term loans	4,248,101,826	?	18,954,443,798	?	31,730,890,357	?	87,859,873,238	?	142,793,309,219	?	121,546,339,022
Lease liabilities	-	?	253,329,174	?	164,561,752	?	240,102,072	?	657,992,998	?	542,141,496
Long-term payables	-	?	76,675,721	?	43,243,078	?	74,598,363	?	194,517,162	?	171,611,393
?	?	?	?	?	?	?	?	?	?	?	?
Total	84,237,779,514	?	19,284,448,693	?	31,938,695,187	?	88,174,573,673	?	223,635,497,067	?	201,827,981,236

????

?	2022 Contractual undiscounted cash flow									?	?
?	Within 1 year or on demand (inclusive)	?	More than 1 year but less than 3 years (inclusive)	?	More than 3 years but less than 5 years (inclusive)	?	More than 5 years	?	Total		Carrying amount of balance sheet
?	?	?	?	?	?		?	?	?		?
Financial liabilities	?	?	?	?	?		?	?	?		?
Short-term loans	2,472,050,871	?	-	?	-		-	?	2,472,050,871		2,373,938,871
Bills payable	870,221,538	?	-	?	-		-	?	870,221,538		870,221,538
Accounts payable	29,834,720,464	?	-	?	-		-	?	29,834,720,464		29,834,720,464
Other payables	19,632,223,269	?	-	?	-		-	?	19,632,223,269		19,632,223,269
Non-current liabilities due within one year	23,132,749,292	?	-	?	-		-	?	23,132,749,292		22,703,750,744
Long-term loans	4,872,695,550	?	17,357,391,426	?	26,251,319,950		99,561,622,533	?	148,043,029,459		123,143,479,690
Lease liabilities	-	?	246,663,217	?	123,905,787		323,315,125	?	693,884,129		538,586,010
Long-term payables	-	?	70,973,955	?	160,835,968		-	?	231,809,923		229,587,077
?	?	?	?	?	?		?	?	?		?
Total	80,814,660,984	?	17,675,028,598	?	26,536,061,705		99,884,937,658	?	224,910,688,945		199,326,507,663

???

3 Interest rate risk

Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings for fixed and floating rate interest-bearing instruments based oncurrent 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:

?	2023			?	2022
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	1.00%~6.25%	?	34,032,083,693	?	0.70%~5.45%	?	36,597,334,927
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	0.38%~5.90%	?	(1,427,826,333)	?	0.25%~5.90%	?	(1,149,712,480)
- Other payables	0%~2.18%	?	(3,000,000,000)		0%~2.18%	?	(3,000,000,000)
- Non-current liabilities due within one year	0%~6.51%	?	(11,321,474,654)	?	0%~6.86%	?	(7,841,491,191)
- Long-term loans	1.20%~6.37%	?	(39,919,524,039)	?	0%~5.90%	?	(25,324,584,996)
- Lease liabilities	3.50%~4.75%	?	(542,141,496)	?	3.65%~4.75%	?	(538,586,010)
- Long-term payables	4.20%-6.51%	?	(171,611,393)	?	4.30%~6.86%	?	(229,587,077)
?	?	?	?	?	?	?	?
Total	?	?	(22,350,494,222)	?	?	?	(1,486,626,827)

????

Floating rate instruments:

?	2023			?	2022
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.0001%~6.25%	?	37,628,227,990	?	0.0001%~5.30%	?	31,723,267,975
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	3.10%~3.60%	?	(316,400,000)	?	5.65%~5.84%	?	(1,218,525,680)
- Non-current liabilities due within one year	1.00%~6.33%	?	(12,588,822,776)	?	1.00%~7.44%	?	(14,215,671,815)
- Long-term loans	1.00%~6.33%	?	(81,623,331,304)	?	1.00%~7.44%	?	(97,816,667,917)
?	?	?	?	?	?	?	?
Total	?	?	(56,900,326,090)	?	?	?	(81,527,597,437)

????

(b) Sensitivity analysis

As at 31 December 2023, it is estimated that a general increase / decrease of 100basis points in interest rates of variable rate instrument, with all other variables heldconstant, would decrease / increase the Group’s net profit and equity by RMB481,870,000 (2021: RMB 679,150,000).

In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on thenet profit and owner’s equity is estimated as an annualised impact on interest expenseor income of such a change in interest rates. The analysis is performed on the samebasis for the previous year.

4 Foreign currency risk

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

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

foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 191,267,567 (2022 net liabilitiesexposure: USD 1,523,210,633), translated into RMB 1,354,690,797 (2022: RMB10,608,552,775), using the spot rate at the balance sheet date. Differences resultingfrom the translation of the financial statements denominated in foreign currency areexcluded.

(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening

of the Renminbi against the US dollar at 31 December would have decreased /increased both the Group’s equity and net profit by the amount RMB 105,886,060(2022: increased / decreased RMB 136,665,926). The exchange difference that can becapitalized for foreign currency specific borrowings has no impact on group’s equityand net profit.

The sensitivity analysis above assumes that the change in foreign exchange rates hadbeen applied to re-measure those financial instruments held by the Group whichexpose the Group to foreign currency risk at the balance sheet date. The analysisexcludes differences that would result from the translation of the financial statementsdenominated in foreign currency. The analysis is performed on the same basis for theprevious year.

5 Other price risks

Other price risks include stock price risk and commodity price risk.

X. Fair value disclosure

The following table presents the fair value information and the fair value hierarchy, at the endof the current reporting period, of the Group’s assets and liabilities which are measured atfair value at each balance sheet date on a recurring or non-recurring basis. The level inwhich fair value measurement is categorised is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. Thelevels are defined as follows:

Level 1 inputs: unadjusted quoted prices in active markets that are observable at the

measurement date for identical assets or liabilities;

Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly

observable for underlying assets or liabilities;

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

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

?	?	31 December 2023
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	261,201,215	?	-	?	7,494,763,280	?	7,755,964,495
Including: Structured deposit and wealth-management products	?	-	?	-	?	7,476,126,776	?	7,476,126,776
Investments in equity instruments	?	261,201,215	?	-	?	18,636,504	?	279,837,719
- Receivables financing	V.5	-	?	-	?	408,534,622	?	408,534,622
- Investments in other equity instruments	V.12	169,355,368	?	-	?	325,274,209	?	494,629,577
- Other non-current financial assets	V.13	-	?	-	?	2,253,778,325	?	2,253,778,325
Including: Investments in equity instruments	?	-	?	-	?	2,253,778,325	?	2,253,778,325
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	430,556,583	?	-	?	10,482,350,436	?	10,912,907,019

????

?	?	31 December 2022
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	256,525,783	?	-	?	16,931,468,153	?	17,187,993,936
Including: Structured deposit and wealth-management products	?	-	?	-	?	16,931,468,153	?	16,931,468,153
Investments in equity instruments		256,525,783		-		-		256,525,783
- Investments in other equity instruments	V.12	154,312,590	?	-	?	328,747,716	?	483,060,306
- Other non-current financial assets	V.13	-	?	-	?	2,022,967,681	?	2,022,967,681
Including: Investments in equity instruments	?	-	?	-	?	2,022,967,681	?	2,022,967,681
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	410,838,373	?	-	?	19,283,183,550	?	19,694,021,923

???

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

For bank wealth management products measured at fair value, the fair value is determinedbased on the discounted cash flow method.

Receivables financing that are subject to recurring Level 3 fair value measurement are billsreceivable with short remaining maturities, for which the fair value determined is equal to theoriginal carrying amount.

Equity instrument investments are unlisted equity investments held by the Group, including:

(i) For those who raised a new round of financing in 2023, 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 2023, 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.

XI. 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.	Area A, No. 6 West 6th Street, Sanlitun, Chaoyang District, Beijing	?	Operation and management of state-owned assets within authorisation, etc.	?	RMB 3,139,210,000	?	0.73%	?	12.37%	?	Yes

????

2 Information about the subsidiaries of the Company

For information about the subsidiaries of the Group, refer to Note VIII.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	Relationship with the Company
Beijing BOE Art Cloud Technology Co., Ltd.	Associate of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd.	Associate of the Group and the Company
Suzhou Chuangyi Culture Technology Co., Ltd.	Associate of the Group and the Company
TPV Display Technology (China) Limited	Associate of the Group and the Company
BOE Digital Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Suzhou)Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Hangzhou)Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Beijing)Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Yibin)Technology Co., Ltd.	Associate of the Group and the Company
Beijing Nissin Electronics Precision Component Co., Ltd.	Associate of the Group and the Company
Beijing Infi-Hailin Venture Investment (Limited Partnership)	Associate of the Group and the Company
Hefei Xin Jing Yuan Electronic Materials Co., Ltd.	Associate of the Group
Beijing BOE Microbial Technology Co., Ltd.	Associate of the Group
Biochain (Beijing) Science-Technology.Inc.	Associate of the Group
BOE Houji Technology (Beijing) Co., Ltd.	Associate of the Group
Vusion Group SA ( Formerly known as SES Imagotag SA Co., Ltd.)	Associate of the Group
Beijing Houji Zhilian Information Technology Co., Ltd.	Associate of the Group
Hefei Jiangcheng Technology Co., Ltd.	Associate of the Group
SES-Imagotag GmbH Co., Ltd.	Subsidiary of associate of the Group
Chongqing Maite Optoelectronics Co., Ltd.	Subsidiary of associate of the Group
Pervasive Displays Inc	Subsidiary of associate of the Group
Beijing Borcheng Medical Laboratory Co. Ltd.	Subsidiary of associate of the Group

????

4 Information on other related parties

Name of other related parties	Related-party relationship
?	?
Beijing Smart-Aero Display Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Information Technology College	Under the same control of the ultimate holding company
Baic Electronics 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 Electronic Digital Intelligence Technology Co., Ltd.	Under the same control of the ultimate holding company
BeiJing D.Park Cultural 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
Beijng 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
761 Workshop (Beijing) Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Sevenstar Semiconductor Technologies Co.,Ltd.	Under the same control of the ultimate holding company
Beijing Electronic Information Technology College	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 BOE Investment Development Co., Ltd.	Under the same control of the ultimate holding company
Electronic City (Tianjin) Mobile Internet Industry Platform Development 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 Yandong Microelectronic Co., Ltd.	Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electronic City Shuzhi Technology 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 Electronics Holding & SK Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhengdong Power Equipment Installation Engineering Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electric Intelligent Energy Co., Ltd.	Under the same control of the ultimate holding company
Beijing Dahua Electronic Instrument Corporation	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 Sevenstar PV Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Zifu Equipment Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing 798 Culture Technology Co., Ltd.	Associate of enterprise that is under the same control of the ultimate holding company
New Vision Micro.(Hong Kong) Co., Ltd.	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
Shanghai New Vision Microelectronics Co., Ltd.	Associate of enterprise that is under the same control of the ultimate holding company
China Minsheng Banking Corp., Ltd.	Other related parties
Beijing Yizhuang Environmental Technology Group Co., Ltd.	Other related parties
Nexchip Semiconductor Corporation	Other related parties
Hefei Construction Investment and Holding Co., Ltd.	Other related parties
Hefei Visionox Technology Co., Ltd.	Other related parties

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	2023	?	2022
?	?	?	?
Purchase of goods	663,371,654	?	658,905,000
Procurement of equipment	236,814,153	?	155,286,378
Receiving services	14,986,020	?	12,843,982
Payment of interest expenses	33,637,490	?	43,423,377
?	?	?	?
Total	948,809,317	?	870,458,737

????

The Company

Nature of transaction	2023	?	2022
?	?	?	?
Purchase of goods	34,372,208	?	32,203,231
Receiving services	127,843,351	?	63,840,655
Procurement of equipment	368,000	?	-
Payment of interest expenses	30,926,480	?	42,314,510
?	?	?	?
Total	193,510,039	?	138,358,396

????

(2) Sale of goods/rendering of services

The Group

Nature of transaction	2023	?	2022
?	?	?	?
Sale of goods	3,929,802,831	?	1,168,302,006
Rendering of services	23,418,868	?	12,004,788
Income from interest received	28,454,504	?	23,183,395
?	?	?	?
Total	3,981,676,203	?	1,203,490,189

????

The Company

Nature of transaction	2023	?	2022
?	?	?	?
Sale of goods	582,164	?	101,930
Rendering of services	4,610,851,622	?	4,742,920,134
Income from interest received	15,702,137	?	15,398,605
?	?	?	?
Total	4,627,135,923	?	4,758,420,669

????

(3) Leases

(a) As the lessor

The Group

Type of assets leased	Lease income recognised in 2023	?	Lease income recognised in 2022
?	?	?	?
Investment properties	9,823,412	?	7,925,143

????

The Company

Type of assets leased	Lease income recognised in 2023	?	Lease income recognised in 2022
?	?	?	?
Investment properties	65,795,509	?	65,287,838

????

(b) As the lessee

The Group

Rental expenses for practical expedient of short-term leases and the leases of low-value assets

Variable lease payments not included in the measurement of the lease liability

Rental payments

Assumed interest expenses from lease liabilities

Increased right-of-use assets

Name of lessor

Type of assets leased

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Beijing Dongdian Industrial Development Co., Ltd.

Fixed assets

2,801,931

2,676,474

124,586

209,567

Hefei Jiangcheng Technology Co., Ltd.

Fixed assets

328,378

??????

The Company

Rental expenses for practical expedient of short-term leases and the leases of low-value assets

Variable lease payments not included in the measurement of the lease liability

Rental payments

Assumed interest expenses from lease liabilities

Increased right-of-use assets

Name of lessor

Type of assets leased

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

?Beijing BOE Optoelectronics Technology Co., Ltd.

Fixed assets?

42,971,406?

45,409,539?

4,093,830?

7,113,575?

???

(4) Funding from related parties

The Company

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds received	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	3,000,000,000	?	28/05/2018	?	Long-term
Subsidiary of the parent company	500,000,000	?	28/05/2019	?	Long-term
Subsidiary of the parent company	1,300,000,000	?	28/05/2019	?	Long-term
Subsidiary of the parent company	300,000,000	?	08/07/2020	?	Long-term
Subsidiary of the parent company	2,500,000,000	?	06/07/2020	?	Long-term
Subsidiary of the parent company	2,000,000,000	?	03/07/2020	?	Long-term
Subsidiary of the parent company	1,700,000,000	?	12/10/2020	?	Long-term
Subsidiary of the parent company	3,000,000,000	?	05/11/2020	?	Long-term
Subsidiary of the parent company	1,700,000,000	?	28/12/2020	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	28/12/2020	?	Long-term
Subsidiary of the parent company	2,358,000,000	?	07/12/2020	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	09/03/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	18/03/2021	?	Long-term
Subsidiary of the parent company	4,000,000,000	?	25/03/2021	?	Long-term
Subsidiary of the parent company	2,500,000,000	?	30/03/2021	?	Long-term
Subsidiary of the parent company	4,500,000,000	?	23/06/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	05/07/2021	?	Long-term
Subsidiary of the parent company	2,000,000,000	?	29/12/2021	?	Long-term
Subsidiary of the parent company	3,400,000,000	?	29/12/2021	?	Long-term
Subsidiary of the parent company	6,000,000,000	?	29/12/2021	?	Long-term
Subsidiary of the parent company	1,500,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	200,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	27/01/2022	?	Long-term
Subsidiary of the parent company	500,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	750,000,000	?	15/06/2022	?	Long-term

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds received	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	1,000,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	7,000,000,000	?	23/08/2022	?	Long-term
Subsidiary of the parent company	1,500,000,000	?	08/10/2022	?	Long-term
Subsidiary of the parent company	500,000,000	?	10/11/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	20/10/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	25/10/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	25/10/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	150,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	2,400,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	2,600,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	50,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	250,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	3,750,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	800,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	11/01/2023	?	Long-term
Subsidiary of the parent company	200,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	100,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	400,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	800,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	450,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	1,290,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	1,550,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	400,000,000		09/06/2023		Long-term
Subsidiary of the parent company	540,000,000	?	09/06/2023	?	Long-term
Subsidiary of the parent company	340,000,000	?	01/12/2023	?	Long-term
?	?	?	?	?	?
Total	79,778,000,000	?	?	?	?

???

Name of related party	Amount of funding	Inception date	Maturity date
?	?	?	?
Funds provided	?	?	?
?	?	?	?
Subsidiary of the parent company	237,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	161,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	285,000,000	24/11/2020	Right to request return at any time
Subsidiary of the parent company	300,000,000	10/05/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	29/10/2020	Right to request return at any time
Subsidiary of the parent company	700,000,000	29/10/2020	Right to request return at any time
Subsidiary of the parent company	123,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	800,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	88,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	1,100,000,000	29/09/2022	Right to request return at any time
Subsidiary of the parent company	2,000,000,000	03/01/2023	Right to request return at any time
Subsidiary of the parent company	261,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	189,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	1,490,000,000	21/10/2020	Right to request return at any time
Subsidiary of the parent company	473,000,000	24/11/2020	Right to request return at any time
Subsidiary of the parent company	570,000,000	30/06/2022	Right to request return at any time
Subsidiary of the parent company	175,000,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	81,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	162,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	700,000,000	07/05/2022	Right to request return at any time
Subsidiary of the parent company	1,700,000,000	26/12/2022	Right to request return at any time
Subsidiary of the parent company	1,400,000,000	29/09/2022	Right to request return at any time
Subsidiary of the parent company	201,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	262,500,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	90,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	800,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	159,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	1,700,000,000	29/09/2022	Right to request return at any time
Subsidiary of the parent company	2,000,000,000	28/10/2022	Right to request return at any time
Subsidiary of the parent company	173,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	118,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	433,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	201,701,133	14/04/2022	Right to request return at any time
Subsidiary of the parent company	500,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	06/04/2022	Right to request return at any time
Subsidiary of the parent company	262,500,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	72,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	116,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	27/06/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	27/06/2022	Right to request return at any time
Subsidiary of the parent company	80,000,000	27/03/2015	21/01/2025
Subsidiary of the parent company	200,000,000	12/10/2020	12/10/2030
Subsidiary of the parent company	20,000,000	16/12/2022	Right to request return at any time

Total	24,283,701,133	?	?

(5) Remuneration of key management personnel

The Group and the Company

Item	2023	?	2022
?	?	?	?
Remuneration of key management personnel	51,002,000	?	86,665,000

????

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

6 Receivables from and payables to related parties

Receivables from related parties

The Group

?	Note	2023			?	2022
Item		Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?		?	?	?	?	?	?	?
Cash at bank and on hand	(1)	1,147,791,923	?	-	?	965,569,850	?	-
Accounts receivable		848,755,589	?	4,883,714	?	1,070,848,317	?	4,986,221
Prepayments		10,054,763	?	-	?	6,615,367	?	-
Other receivables		787,519	?	-	?	16,588,534	?	-
Contract assets		6,977,790	?	-	?	2,402,974	?	-
Other non-current assets		16,934,571		-		14,026,424		-

????

The Company

?	Note	2023			?	2022
Item		Book value	?	Provision for impairment		Book value	?	Provision for impairment
?		?		?		?		?
Cash at bank and on hand	(1)	511,657		-		8,850		-
Accounts receivable		4,874,309,921		4,315,658		4,867,860,690		4,315,658
Prepayments		-		-		146,368		-
Other receivables		28,179,338,207		12,280,686		19,686,877,080		16,868,539
Other non-current assets		1,740,000,000		-		1,080,000,000		-

????

Payables to related parties

The Group

Item	Note	2023	?	2022
?		?	?	?
Accounts payable		114,282,939	?	179,047,266
Advance payments received		103,733	?	188,623
Contract liabilities		24,068,821	?	34,164,291
Other payables		202,371,165	?	182,554,398
Non-current liabilities due within one year	(2)	6,000,000	?	6,000,000
Long-term loans	(2)	1,107,750,000	?	1,257,250,000

????

The Company

Item	Note	2023	?	2022
?		?	?	?
Accounts payable		89,999,263	?	27,646,402
Advance payments received		798,119	?	169,459
Other payables		2,791,489,305	?	2,921,972,111
Long-term loans	(2)	1,042,750,000	?	1,186,250,000
Other non-current liabilities		79,800,793,681	?	96,394,661,805

????

(1) The Group's and the Company's cash at bank and on hand were deposit in China

Minsheng Bank Co.

(2) The Group's and the Company's non-current liabilities and long-term borrowings due

within one year are borrowings from China Minsheng Bank Co.

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:

?	2023	?	2022
?	?	?	?
Procurement of equipment	65,703,454	?	69,753,978

????

XII. Share-based payments

1 Equity instruments

Granted during the year

Exercised during the year

Unlocked during the year

Forfeited during the year

Type of grantees

Quantity

Amount

Quantity

Amount

Quantity

Amount

Quantity

Amount

Senior management appointed by the Board of Directors

3,848,120?

10,312,962?

1,400,000?

3,752,000?

Technical experts, middle management and above level

98,412,660

263,745,929

14,248,174

38,185,106

Manager, senior technical cadre

200,631,536

337,061,981

Total

102,260,780

274,058,891

216,279,710

378,999,087

Share options or other equity instruments outstanding at the end of the year

?	?	Share options outstanding at the end of the year			?	Other equity instruments outstanding at the end of the year
Type of grantees	?	Range of exercise prices	?	Remaining contractual life	?	Range of exercise prices	Remaining contractual life
?	?	?	?	?	?	?	?
Manager, senior technical cadre	?	RMB 5.059 – 5.559 / share?	?	1 - 3 years?	?	/?	/

2 Equity-settled share-based payments

On 17 December 2020, the Board of Directors of the Company approved the implementationof share options and restricted share incentive plans from 2020. The shares for the shareoptions and restricted share incentive plans are from the Company’s Renminbi A-shareordinary shares repurchased from secondary market. The plans are presented as follows:

(a) Share option incentive plan

The initial grant date was 21 December 2020, and the implementation was completedon 25 December 2020. The actual number of grantees was 1,988, with a number ofgrants of 596,229,700 shares. The reserved grant date was 27 August 2021, the actualnumber of grantees was 110, and the number of grants is 33,000,000 shares, this grantwas completed on 22 October 2021.

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

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

(b) Restricted share incentive plan

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

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

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

The total costs recognised by the Group’s equity-settled share-based payments in theconsolidated financial statement was RMB 331,439,427, and the accumulated amountof capital reserve paid by equity-settled share-based payments amounted to RMB1,578,168,710. In the Company’s financial statements, the Company recognised itslong-term equity investment of RMB 254,548,584 in its subsidiary at the fair value of

the equity instruments at the grant date, and recognised expenses arising from share-based payments of RMB 76,890,843, as well as a capital reserve of RMB 331,439,427.

Based on relevant provisions of the restricted share incentive plan for the serviceperiod, if the granted object resigns before the release date, the Company willrepurchase the restricted shares that have not been released at the subscription priceof the granted object. Please refer to Note V. 30 (1) for the repurchased obligation setout in other payables.

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

follows:

Share options:

The fair value of equity instruments at the grant date is determined based on thedifference between the assessed fair value of the exercisable share options at eachgrant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share andRMB 2.09/share, respectively); the fair value of equity instruments at the reservedgrant date is determined based on the difference between the assessed fair value ofthe exercisable share options at each reserved grant date and the subscription price inRMB (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share, respectively).

Restricted shares:

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

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

At each balance sheet date during the vesting period, the best estimation is madeaccording to the latest information, such as the number of employees who are grantedoptions and the completion of performance indicators, and the number of equityinstruments expected to vest is revised accordingly. On the vesting date, the estimatednumber is equal to the number of equity instruments that are ultimately vested.

XIII. 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 cashflows, and expected capital expenditure. Adjustments are made to the capital structure inlight of changes in economic conditions affecting the Group.

The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capitalratio (total liabilities divided by total assets). The capital management strategies exerted bythe Group remained unchanged from 2022. In order to maintain or adjust the ratio, the Groupmay adjust the amount of dividends paid to shareholders, request new loans, issue newshares, or sell assets to reduce debt.

As at 31 December 2023 and 31 December 2022, the Group’s asset-liability ratios are asfollows:

?	2023	?	2022
?	?	?	?
Asset-liability ratio	52.81%	?	51.96%

????

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

XIV. Commitments and contingencies

1 Significant commitments

(1) Capital commitments

The Group	2023	?	2022
?	?	?	?
Contracts entered into but not performed or partially performed	15,399,501,743	?	31,109,629,604
Contracts authorized but not entered into	123,338,068,701	?	100,442,930,917
?	?	?	?
Total	138,737,570,444	?	131,552,560,521

????

The Group’s contracts authorised but not entered into mainly included the fixed assets thatChengdu BOE Display Sci-tech Co., Ltd., BOE Healthcare Investment & Management Co.,Ltd., Beijing BOE Chuangyuan Technology Co., Ltd. Management Co., Ltd., Qingdao BOEOptoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd. andBOE Wisdom IOT Technology Co., Ltd. planned to purchase in subsequent years andproject equipment that the Group planned to purchase in subsequent years.

The Company	2023	?	2022
?	?	?	?
Contracts entered into but not performed or partially performed	42,398,401,670	?	28,350,937,574

????

The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Chengdu BOE Display Sci-tech Co., Ltd., Beijing BOEChuangyuan Technology Co., Ltd. Management Co., Ltd., BOE Healthcare Investment &Management Co., Ltd., BOE Wisdom IOT Technology Co., Ltd., Mianyang BOE ElectronicTechnology Co., Ltd. and Yunnan Invensight Optoelectronics Technology Co., Ltd.

2 Guarantee

(1) The Group as the guarantor

As at 31 December 2023, the Group did not have guarantees provided for externalenterprises.

(2) The Company as the guarantor

At 31 December 2023, Chengdu Optoelectronics pledged its land use right with carryingamount of RMB 38,417,021, machinery and equipment with carrying amount of RMB17,224,190,248 and plants and buildings with carrying amount of RMB 2,266,634,905 ascollaterals to obtain long-term loans of USD 578,700,000 and RMB 9,823,660,000. TheCompany provides joint-liability guarantee for the above loans.

At 31 December 2023, Yuansheng Optoelectronics pledged its land use right with carryingamount of RMB 42,405,072, machinery and equipment with carrying amount of RMB3,912,197,528 and plants and buildings with carrying amount of RMB 2,166,212,374 ascollaterals to obtain long-term loans of RMB 531,820,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2023, Chongqing BOE Display pledged its land use right with carryingamount of RMB 156,287,757, machinery and equipment with carrying amount of RMB15,749,885,667 and plants and buildings with carrying amount of RMB 3,643,694,666 ascollaterals to obtain long-term loans of USD 1,008,140,000 and RMB 7,612,218,976. TheCompany provides joint-liability guarantee for the above loans.

At 31 December 2023, Fuzhou BOE pledged its land use right with carrying amount of RMB193,505,488, machinery and equipment carrying amount of RMB 4,056,778,651 and plantsand buildings with carrying amount of RMB 2,835,712,839 as collaterals to obtain long-termloans of USD 66,000,000 and RMB 216,930,000. The Company provides joint-liabilityguarantee for the above loans.

At 31 December 2023, Hefei Display Technology pledged its land use right with carryingamount of RMB 267,494,910, machinery and equipment with carrying amount of RMB9,426,450,403 and plants and buildings with carrying amount of RMB 3,400,676,062 ascollaterals to obtain long-term loans of RMB 1,990,914,080. The Company provides joint-liability guarantee for the above loans.

At 31 December 2023, Mianyang BOE pledged its land use right with carrying amount ofRMB 364,054,376, machinery and equipment carrying amount of RMB 21,837,380,218 andplants and buildings with carrying amount of RMB 4,721,085,480 as collaterals to obtainlong-term loans of USD 694,730,000 and RMB 10,350,138,900. The Company providesjoint-liability guarantee for the above loans.

At 31 December 2023, Wuhan BOE pledged its land use right with carrying amount of RMB238,900,011, machinery and equipment with carrying amount of RMB 18,732,587,486 andplants and buildings with carrying amount of RMB 4,625,942,334 as collaterals to obtainlong-term loans of USD 904,500,000 and RMB 5,523,000,000. The Company provides joint-liability guarantee for the above loans. In addition, the Company provides joint-liabilityguarantee for the letters of credit issued but not accepted of JPY 156,600,000.

At 31 December 2023, Chengdu BOE Hospital Co., Ltd. obtained long-term loans of RMB1,522,953,257. The Company provides joint-liability guarantee for the above loans.

At 31 December 2023, Nanjing Display Technology obtained short-term loans of RMB450,000,000 and long-term loans of RMB 1,200,000,000. The Company provides joint-liability guarantee for the above loans by means of counter guarantee.

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, Microdisplay and otherintelligent interface devices. This business focuses on providing high-qualitysmartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR and other displaydevices for customers.

(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, smartindustrial parks, etc.

models for system solution design, covering both glass-based and silicon-based areas.It focuses on smart windows, innovative glass-based sensor devices, MEMS sensors,industrial sensors, and consumer electronics, providing customers with products andsolutions including smart dimming windows and dimming system solutions, industrialsensors and solutions, MEMS sensors, and X-ray flat panel detector backplanes.

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

Mini-LED backlight products with high quality and strong reliability as well as highdynamic range that allow precisely brightness adjustment for TVs, monitors, laptops,car displays, VR/AR 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 engineering medicine business - The smart engineering medicine business is a

professional service model, providing services and solutions in healthcare, intelligentrehabilitation, and medical-engineering integration products. Meanwhile, the smartengineering medicine business is committed to building a closed loop of full-cyclehealth services with health management as the core, medical-engineering terminals asthe traction, digital hospitals and rehabilitation communities as the support, to create anintelligent health management ecosystem, to connect testing equipment, healthcarepersonnel and customers, and to provide customers with the "prevision-treatment-nursing" full-chained health services.

(f) Others - In addition to the above businesses, the Group provides software-hardware

fusion and system integration solutions for different industries, specifically includingintelligent internet of vehicles, industrial interconnection, digital art and other segments,which can provide customers with all-round, one-stop and intelligent new experiencesin IoT segmented scenarios.

The main reason to separate the segments is that the Group independently managesthe display business, IoT innovation business, sensor and application solutions, MLED,smart medicine and engineering and other businesses. As these business segmentsmanufacture and sale different products, apply different manufacturing processes andspecifies in gross profit, the business segments are managed independently. Themanagement evaluates the performance and allocates resources according to theprofit of each business segment and does not take financing cost and investmentincome into account.

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.

2023

Display business

IoT innovation business

Sensor business

MLED business

Smart engineering medicine business

Others

Offsetting

Total

Operating income

147,053,141,751

38,900,197,799

405,037,922

2,902,110,558

2,791,584,190

6,850,103,017

(24,358,729,342)

174,543,445,895

Operating costs

133,565,229,836

35,289,028,777

330,401,208

3,226,930,635

2,241,522,000

1,196,726,016

(23,216,777,105)

152,633,061,367

2022

Display business

IoT innovation business

Sensor business

MLED business

Smart engineering medicine business

Others

Offsetting

Total

Operating income

150,150,853,163

34,334,478,938

306,552,648

1,599,702,766

2,203,142,667

11,941,121,572

(22,122,120,575)

178,413,731,179

Operating costs

137,702,662,276

31,888,691,477

241,869,035

1,709,769,060

1,809,802,648

4,881,797,483

(20,704,025,827)

157,530,566,152

???

The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of eachreportable segment respectively by business. Besides, the Group restates comparative information in 2022 according to segment reporting in2023

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:

?	Operating income from external customers
?	2023	?	2022
?	?	?	?
Mainland China	80,541,975,332	?	74,124,463,690
Other Asian countries and regions	55,229,893,619	?	63,351,896,814
Europe	5,504,039,510	?	5,745,261,109
America	33,250,560,809	?	35,121,526,346
Other regions	16,976,625	?	70,583,220
?	?	?	?
Total	174,543,445,895	?	178,413,731,179

????

(b) Divided based on asset locations

The geographical location of the specified non-current assets is based on the physicallocation of the asset, in the case of fixed assets; the location of the operation to whichthey are allocated, in the case of intangible assets and goodwill; and the location ofoperations, in the case of interests in associates and joint ventures. Most of the non-current assets in the Group are located in the Chinese mainland.

4 Major customers

The Group has one customer (2022: One), the operating income from which is over 10% ofthe Group’s total operating income in display business. The operating income from thecustomer, which represents approximately 15% of the Group’s total operating income, issummarised in the table below:

Customer	2023	2022
	RMB	RMB

Customer 1	26,082,948,856	28,511,004,302

XVI. Notes to the Company’s financial statements

1 Accounts receivable

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

?	31 December 2023	?	31 December 2022
?	?	?	?
Amounts due from related parties	4,874,309,921	?	4,867,860,690
Amounts due from other customers	3,667,594	?	4,289,987
?	?	?	?
Sub-total	4,877,977,515	?	4,872,150,677
?	?	?	?
Less: Provision for bad and doubtful debts	7,564,419	?	8,485,408
?	?	?	?
Total	4,870,413,096	?	4,863,665,269

????

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

Ageing	2023	?	2022
?	?	?	?
Within 1 year (inclusive)	3,662,390,168	?	3,813,706,724
Over 1 year but within 2 years (inclusive)	869,370,034	?	742,074,869
Over 2 years but within 3 years (inclusive)	37,761,471	?	182,932,357
Over 3 years	308,455,842	?	133,436,727
?	?	?	?
Sub-total	4,877,977,515	?	4,872,150,677
?	?	?	?
Less: Provision for bad and doubtful debts	7,564,419	?	8,485,408
?	?	?	?
Total	4,870,413,096	?	4,863,665,269

????

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

(3) Accounts receivable by provisioning method

?	2023
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	7,564,419	?	0%	?	7,564,419	?	100%	?	-
- Customers with low credit risk	4,869,994,263	?	100%	?	-	?	0%	?	4,869,994,263
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	418,833	?	0%	?	-	?	0%	?	418,833
?	?	?	?	?	?	?	?	?	?
Total	4,877,977,515	?	100%	?	7,564,419	?	0%?	?	4,870,413,096

????

?	2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	8,406,011	?	0%	?	8,406,011	?	100%	?	-
- Customers with low credit risk	4,863,603,112	?	100%	?	-	?	0%	?	4,863,603,112
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	141,554	?	0%	?	79,397	?	56%	?	62,157
?	?	?	?	?	?	?	?	?	?
Total	4,872,150,677	?	100%	?	8,485,408	?	0%	?	4,863,665,269

???

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

?	31 December 2023					31 December 2022
?	Customers with high credit risk	Customers with low credit risk	?	Customers with moderate credit risk	Total	Customers with high credit risk	?	Customers with low credit risk	?	Customers with moderate credit risk		Total ?
?	?	?	?	?	?	?	?	?		?		?
Balance at the beginning of the year	-	79,397	?	8,406,011	8,485,408	-	?	174,299		4,090,353	?	4,264,652
Charge during the year	-	9,367	?	-	9,367	-	?	-		4,315,658	?	4,315,658
Recoveries during the year	-	(88,764)	?	(841,592)	(930,356)	-	?	(94,902)		-	?	(94,902)
Written-off during the year	-	-	?	-	-	-	?	-		-	?	-
?	?	?	?	?	?	?	?	?		?	?	?
Balance at the end of the year	-	-	?	7,564,419	7,564,419	-	?	79,397		8,406,011	?	8,485,408

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

The five largest accounts receivable of the Company amounted to RMB 4,613,531,874,amounting to 95% 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.

2 Other receivables

?	Note	31 December 2023	?	31 December 2022
?	?	?	?	?
Dividends receivable	(1)	1,189,273,456	?	333,352,986
Others	(2)	27,192,355,082	?	19,544,792,389
?	?	?	?	?
Total	?	28,381,628,538	?	19,878,145,375

????

(1) Dividends receivable

?	31 December 2023	?	31 December 2022
?	?	?	?
Beijing Matsushita Colour Innovation Co., Ltd.	468,758,202	?	333,352,986
BOE Optoelectronics Holdings Co., Ltd.	545,367,900	?	-
Chongqing BOE Optoelectronics Technology Co., Ltd.	135,000,000	?	-
Beijing BOE Land Co., Ltd.	40,147,354	?	-
?	?	?	?
Total	1,189,273,456	?	333,352,986

(2) Others

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

Customer type	31 December 2023	?	31 December 2022
?	?	?	?
Amounts due from subsidiaries	26,989,987,234	?	19,338,630,021
Amounts due from other related parties	77,517	?	14,894,073
Amounts due from other customers	218,428,250	?	211,976,091
?	?	?	?
Sub-total	27,208,493,001	?	19,565,500,185
?	?	?	?
Less: Provision for bad and doubtful debts	16,137,919	?	20,707,796
?	?	?	?
Total	27,192,355,082	?	19,544,792,389

????

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

As at 31 December 2023 and 31 December 2022, there is no other receivables in foreigncurrency.

?	2023	?	2022
?	?	?	?
Within 1 year (inclusive)	26,906,173,796	?	15,304,792,246
Over 1 year but within 2 years (inclusive)	136,005,824	?	2,669,590,657
Over 2 years but within 3 years (inclusive)	68,122,231	?	1,515,874,424
Over 3 years	98,191,150	?	75,242,858
?	?	?	?
Sub-total	27,208,493,001	?	19,565,500,185
?	?	?	?
Less: Provision for bad and doubtful debts	16,137,919	?	20,707,796
?	?	?	?
Total	27,192,355,082	?	19,544,792,389

????

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

(d) Other receivables by provisioning method

?	31 December 2023
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Accounts with high creditrisk	16,137,919	?	0%	?	16,137,919	?	100%	?	-
- Accounts with low credit risk	27,192,355,082	?	100%	?	-	?	0%	?	27,192,355,082
?	?	?	?	?	?	?	?	?	?
合计	27,208,493,001	?	100%	?	16,137,919	?	0%	?	27,192,355,082

?	31 December 2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Accounts with high creditrisk	20,707,796	?	0%	?	20,707,796	?	100%	?	-
- Accounts with low credit risk	19,544,792,389	?	100%	?	-	?	0%	?	19,544,792,389
?	?	?	?	?	?	?	?	?	?
合计	19,565,500,185	?	100%	?	20,707,796	?	0%	?	19,544,792,389

(e) Movements of provisions for bad and doubtful debts

?	2023					2022
?	Stage 1	?	Stage 2	Stage 3		Stage 1	?	Stage 2	?	Stage 3	?	?
?	12-month ECL	?	Lifetime ECL - Not credit impaired	Lifetime ECL- Credit impaired	Total	12-month ECL		Lifetime ECL - Not credit impaired		Lifetime ECL- Credit impaired		Total
Balance at the beginning of the year	-	?	-	20,707,796	20,707,796	-		-		6,801,910		6,801,910
Additions during the year	-	?	-	176,044	176,044	-		-		13,905,886		13,905,886
Recoveries during the year	-	?	-	(4,745,921)	(4,745,921)	-		-		-		-
?	?	?	?	?	?	?		?		?		?
Balance at the end of the year	-	?	-	16,137,919	16,137,919	-		-		20,707,796		20,707,796

(f) Other receivables categorised by nature

Nature of other receivables	Note	2023	?	2022
?		?	?	?
Transaction amount		26,989,987,234	?	19,338,630,021
Others		218,505,767	?	226,870,164
?		?	?	?
Sub-total		27,208,493,001	?	19,565,500,185
?		?	?	?
Less: Provision for bad and doubtful debts		16,137,919	?	20,707,796
?		?	?	?
Total		27,192,355,082	?	19,544,792,389

????

(i) As of December 31, 2023 and December 31, 2022, the Company's currentaccounts mainly consisted of loans receivable from subsidiaries.

(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 22,299,935,803 in total, most of which are amounts due to/fromrelated parties within the Group. No provision is made for bad and doubtful debts afterassessment.

3 Long-term equity investments

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

?	2023	?	2022
?	?	?	?
Investments in subsidiaries	187,984,376,186	?	211,178,767,516
Investments in associates and joint ventures	3,156,825,405	?	3,162,185,504
?	?	?	?
Sub-total	191,141,201,591	?	214,340,953,020
?	?	?	?
Less: Provision for impairment	32,000,000	?	32,000,000
?	?	?	?
Total	191,109,201,591	?	214,308,953,020

????

(2) Investments in subsidiaries:

		?	Increase during the year?
? Subsidiary	Balance at the beginning of the year		Increase in investments	Share-based payments	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
?	?		?	?	?	?	?	?
Chengdu BOE Optoelectronics Technology Co., Ltd.	25,108,960,003		-	23,902,297	-	25,132,862,300	-	-
Hefei BOE Optoelectronics Technology Co., Ltd.	9,063,122,784		-	11,097,252	(6,300,000,000)	2,774,220,036	-	-
Beijing BOE Display Technology Co., Ltd.	17,647,311,114		-	64,743,016	(8,688,599,600)	9,023,454,530	-	-
Hefei Xinsheng Optoelectronics Technology Co., Ltd.	20,155,950,604		-	16,389,386	(9,747,500,000)	10,424,839,990	-	-
Ordos Yuansheng Optoelectronics Co., Ltd.	11,814,307,688		-	2,116,517	-	11,816,424,205	-	-
Chongqing BOE Optoelectronics Technology Co., Ltd.	19,599,657,767		-	6,918,631	(15,380,800,000)	4,225,776,398	-	-
Fuzhou BOE Optoelectronics Technology Co., Ltd.	14,701,372,178		536,500,000	5,777,659	-	15,243,649,837	-	-
Beijing BOE Video Technology Co., Ltd. (“BOE Video”)	4,427,357,720		20,000,000	500,543	-	4,447,858,263	-	-
Beijing BOE Vacuum Electronics Co., Ltd.	19,933,529		-	192,584	-	20,126,113	-	-
Beijing BOE Vacuum Technology Co., Ltd.	32,000,000		-	-	-	32,000,000	32,000,000	32,000,000
Beijing Yinghe Century Co., Ltd.	352,398,076		-	5,786,399	-	358,184,475	-	-
BOE Optical Science and technology Co., Ltd.	667,477,273		-	2,075,965	-	669,553,238	-	-
BOE Hyundai LCD (Beijing) Display Technology Co., Ltd.	41,986,755		-	1,849,933	-	43,836,688	-	-
BOE (Hebei) Mobile Technology Co., Ltd.	1,356,283,555		-	512,739	-	1,356,796,294	-	-
Beijing BOE Multimedia Technology Co., Ltd.	400,000,000		-	-	-	400,000,000	-	-
Beijing BOE Energy Technology Co., Ltd.	857,581,382		-	668,534	-	858,249,916	-	-
Beijing BOE Life Technology Co., Ltd.	10,000,000		-	-	-	10,000,000	-	-
Beijing Zhongxiangying Technologies Co., Ltd.	102,267,168		-	223,794	-	102,490,962	-	-
BOE Semi-conductor Co., Ltd.	9,450,000		-	-	-	9,450,000	-	-
BOE Optoelectronics Holding Co., Ltd.	3,487,684,762		-	-	-	3,487,684,762	-	-
BOE Healthcare Investment & Management Co., Ltd.	7,824,073,441		1,597,000,000	1,920,735	-	9,422,994,176	-	-
Hefei BOE Display Technology Co., Ltd.	2,041,579,920		6,929,009,200	9,264,463	-	8,979,853,583	-	-
Beijing BOE Technology Development Co., Ltd.	2,512,354		-	443,220	-	2,955,574	-	-
Hefei BOE Zhuoyin Technology Co., Ltd.	604,704,163		-	894,613	-	605,598,776	-	-
Beijing BOE Real Estate Co., Ltd.	9,480,764		-	519,398	-	10,000,162	-	-
Beijing BOE Marketing Co., Ltd.	31,573,496		-	311,874	-	31,885,370	-	-
BOE (Korea) Co., Ltd.	7,095,901		-	1,897,359	-	8,993,260	-	-
Yunnan Invensight Optoelectronics Technology Co., Ltd.	1,518,597,279		-	2,951,109	-	1,521,548,388	-	-
Mianyang BOE Optoelectronics Technology Co., Ltd.	22,342,273,335		-	5,265,626	-	22,347,538,961	-	-
Beijing BOE Sensing Technology Co., Ltd.	4,496,105,589		35,000,000	5,988,185	-	4,537,093,774	-	-
Wuhan BOE Optoelectronics Technology Co., Ltd.	12,524,485,421		-	6,353,040	-	12,530,838,461	-	-
Chongqing BOE Display Technology Co., Ltd.	9,312,579,810		700,275,250	4,624,825	-	10,017,479,885	-	-
Fuzhou BOE Display Technology Co., Ltd.	22,836,726		-	223,794	-	23,060,520	-	-
Beijing Matsushita Colour CRT Co., Ltd.	5,151,625		-	994,383	-	6,146,008	-	-
BOE Innovation Investment Co., Ltd.	3,198,191,319		479,000,000	569,023	-	3,677,760,342	-	-
Hefei BOE Xingyu Technology Co., Ltd.	506,367,236		-	540,515	-	506,907,751	-	-
BOE Education Technology Co., Ltd.	29,259,274		-	-	-	29,259,274	-	-
Dongfang Chengqi (Beijing) Business Technology Co., Ltd.	13,786,416		-	2,140,752	-	15,927,168	-	-
BOE Smart Technology Co., Ltd.	2,072,000,000		650,000,000	-	-	2,722,000,000	-	-
Nanjing BOE Display Technology Co., Ltd.	5,598,629,797		-	4,042,190	-	5,602,671,987	-	-
Chengdu BOE Display Sci-tech Co., Ltd. (Chengdu Display Sci-tech)	7,557,371,638		-	4,267,100	-	7,561,638,738	-	-
BOE Mled Technology Co., Ltd.	1,312,793,925		146,000,000	6,012,620	-	1,464,806,545	-	-
BOE Environmental Energy Technology Co., Ltd.	50,000,000		-	1,886,158	-	51,886,158	-	-
Chengdu BOE Display Technology Co., Ltd.	5,263,000		394,725,000	-	-	399,988,000	-	-
Beijing BOE Chuangyuan Technology Co., Ltd	-		2,249,653,000	-	-	2,249,653,000
Mianyang BOE Electronics Technology Co., Ltd	-		680,000,000	-	-	680,000,000
Beijing Shiyan Technology Co., Ltd	-		167,200,000	-	-	167,200,000
HC SemiTek Corporation	-		2,083,597,236	-	-	2,083,597,236
Others**	236,952,729		-	50,682,353	-	287,635,082	-	-
?	?		?	?	?	?	?	?
Total	211,178,767,516		16,667,959,686	254,548,584	(40,116,899,600)	187,984,376,186	32,000,000	32,000,000

????

* As of December 31, 2023, this year's reduction in capital contribution to the subsidiary by our company has beencompleted, and the total amount of capital reduction receivable amounts to RMB 40,116,899,600 Within thisfigure, our company has received RMB 1,200,000,000 as capital reduction proceeds. Furthermore, anaggregate amount of RMB 36,144,229,375 from the capital reduction receivable has been utilized to offset theprincipal and interest on internal loans extended by our company to the subsidiary. As of the reporting period,there remains an outstanding capital reduction receivable of RMB 2,772,670,225, which is recorded under otheraccounts receivable.** Others represented equity-settled share-based payments granted by the Company to employees of othersubsidiaries.For information about the major subsidiaries of the Company, refer to Note VIII. 1.

(3) Investments in associates:

Movements during the year

Investee

Balance at the beginning of the year

Increase in investments

Decrease in investments

Investment (loss) / 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

Erdos BOE Energy Investment Co., Ltd.

136,459,610

(530,631)

135,928,979

Beijing Xindongneng Investment Fund (Limited Partnership)

2,034,870,324

413,237,868

(341,083,735)

(242,256,254)

1,864,768,203

Beijing Innovation Industry Investment Co., Ltd.

223,216,553

12,953,665

236,170,218

Beijing Electric Control Industry Investment Co., Ltd.

258,149,907

78,035,900

(1,505,013)

51,071,365

385,752,159

Beijing BOE Art Cloud Technology Co., Ltd.

359,151,756

8,087,341

(6,214,034)

361,025,063

Others

150,337,354

28,300,000

(1,778,150)

(2,878,421)

(800,000)

173,180,783

?Total

3,162,185,504

106,335,900

(1,778,150)

429,364,809

(290,012,370)

(6,214,034)

(243,056,254)

3,156,825,405

????

4 Other payables

?	Note	2023	?	2022
?	?	?	?	?
Dividends payable	?	6,451,170	?	6,410,514
Others	(1)	3,509,544,809	?	4,242,980,632
?	?	?	?	?
Total	?	3,515,995,979	?	4,249,391,146

????

(1) Others

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

?	Note	2023	2022
?	?	?	?
Amounts due to/from subsidiaries	?	2,791,489,305	2,912,284,353
Repurchase obligation of restricted shares	V.42	457,401,616	753,440,228
Purchase of projects, equipment and intangible assets	?	132,545,852	405,997,313
Others	?	128,108,036	171,258,738
?	?	?	?
Total	?	3,509,544,809	4,242,980,632

????

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

?	2023				?	2022
?	Amount in original currency	?	Exchange rate	RMB/RMB equivalents		Amount in original currency	Exchange rate	?	RMB/RMB equivalents
?	?		?	?		?	?		?
RMB	?		?	1,546,430,154		?	?		2,182,655,332
USD	276,804,561		7.0827	1,960,523,664		295,816,014	6.9646		2,060,240,211
JPY	51,613,367		0.0502	2,590,991		-?	-?		-?
?EUR	-		-	-		11,463	7.4229		85,089
	?		?	?		?	?		?
Total	?		?	3,509,544,809		?	?		4,242,980,632

????

5 Long-term loans

?	2023			?	2022
?	?	?	Credited/ collateralised	?	?	?	Credited/ collateralised
?	RMB	?	guaranteed/ pledged	?	RMB	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	48,042,049,084	?	Credited	?	42,222,030,392	?	Credited
Less: Long-term loans due within one year	3,988,949,084	?	Credited	?	2,664,530,392	?	Credited
?	?	?	?	?	?	?	?
Total	44,053,100,000	?	?	?	39,557,500,000	?	?

????

The interest rate of RMB long-term loans for the Company ranged from 1.20% to 3.30% in2023 (2022: 0% to 3.53%).

6 Capital reserve

Items	Share premium	Other capital reserves	?	Total
?	?	?		?
Balance at the beginning of the year	53,066,616,806	627,010,407		53,693,627,213
Add: Equity-settled share-based payments	-	331,439,427		331,439,427
Other movements in equity of associates	-	(6,214,034)		(6,214,034)
Cancellation of treasury shares	(2,244,946,976)	-		(2,244,946,976)
Others	(32,084,906)	-		(32,084,906)
?	?	?		?
Balance at the end of the year	50,789,584,924	952,235,800		51,741,820,724

????

7 Other comprehensive income

?	?	?	Movements during the year						?	?
Item	Balance at the beginning of the year	?	Before-tax amount	?	Less: Income tax expense	?	Less: Transfer of other comprehensive income to profit or loss	Less: 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	445,935	?	(282,176,415)	?	13,421,765	?	-	1,175,221	?	(296,327,466)
Including: Other comprehensive income recognised under equity method	121,611,393	?	(290,012,370)	?	12,246,372	?	-	1,175,221	?	(181,822,570)
Changes in fair value of investments in other equity instruments	(121,165,458)	?	7,835,955	?	1,175,393	?	-	-	?	(114,504,896)
Items that may be reclassified to profit or loss	(105,590)	?	-	?	-	?	-	-	?	(105,590)
?	?	?	?	?	?	?	?	?	?	?
Total	340,345	?	(282,176,415)	?	13,421,765	?	-	1,175,221	?	(296,433,056)

???

8 Retained earnings

Item	2023	?	2022
?	?	?	?
Retained earnings at the beginning of the year	6,624,620,470	?	11,950,975,927
Total adjustments for opening retained earnings (“+” for increase; “-” for decrease)	-	?	-
Retained earnings at the beginning of the year (after adjustment)	6,624,620,470	?	11,950,975,927
Add: Net profits for the year	3,305,971,786	?	3,481,863,512
Less: Appropriation for statutory surplus reserve	330,597,179	?	348,186,351
Interest on holders of other equity instruments	118,551,232	?	530,695,890
Dividends to ordinary shares	2,296,367,348	?	7,958,923,130
Transfer of other comprehensive income to retained earnings	(1,057,699)	?	(29,586,402)
?	?	?	?
Retained earnings at the end of the year	7,186,134,196	?	6,624,620,470

????

9 Operating income and operating costs

?	2023			?	2022
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	4,669,890,971	?	11,551,234	?	4,826,443,711	?	9,746,176
Other operating activities	38,575,016	?	1,076,333	?	46,885,004	?	334,092
?	?	?	?	?	?	?	?
Total	4,708,465,987	?	12,627,567	?	4,873,328,715	?	10,080,268

?	?	?	?	?	?	?	?
Including: Revenue from contracts with customers	4,604,652,687	?	3,072,136	?	4,758,053,462	?	417,034
Other income	103,813,300	?	9,555,431	?	115,275,253	?	9,663,234

10 Investment income

?	2023	?	2022
?	?	?	?
Income from long-term equity investments accounted for using the cost method	1,555,817,904	?	1,221,116,853
Income from long-term equity investments accounted for using the equity method	429,364,809	?	328,861,860
Investment income from disposal of long-term equity investments	1,581,850	?	30,000,000
Dividend income from investments in other equity instruments	728,606	?	206,209
Including: Dividend income from investments in other equity instruments held at the balance sheet date	728,606	?	206,209
Others	3,990,185	?	353,903,009
?	?	?	?
Total	1,991,483,354	?	1,934,087,931

????

11 Supplementary information on cash flow statement

(1) Supplement to the cash flow statement

?	2023	?	2022
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities:	?	?	?
?	?	?	?
Net profit	3,305,971,786	?	3,481,863,512
Add: Depreciation of fixed assets, investment properties and right-of-use assets	205,071,503	?	198,186,954
Amortisation of intangible assets	181,868,535	?	205,316,168
Amortisation of long-term deferred expenses	73,436,949	?	53,563,810
Losses from scrapping of fixed assets	4,248,142		11,563
Loss on disposal of fixed assets, intangible assets and other long-term assets	(5,077,109)	?	-
Credit losses	(5,490,866)	?	18,126,642
Losses from changes in fair value	(49,498,773)		-
Financial expenses	414,990,764	?	572,555,726
Investment income	(1,991,483,354)	?	(1,934,087,931)
Share-based payments	76,890,841	?	164,840,515
Change in deferred income	(978,788,846)	?	(916,302,566)
Changes in deferred tax assets and liabilities	97,968,124	?	(113,828,946)
Decrease in gross inventories	(4,271,106)	?	787,291
Decrease / (increase) in operating receivables	(411,585,912)	?	780,128,458
Increase / (decrease) in operating payables	56,568,894	?	1,173,595,580
?	?	?	?
Net cash inflow from operating activities	970,819,572	?	3,684,756,776

????

(b) Net changes in cash and cash equivalents:	?	?	?
?	2023	?	2022
?	?	?	?
Cash and cash equivalents at the end of the year	4,249,329,821	?	7,111,879,033
Less: Cash and cash equivalents at the beginning of the year	7,111,879,033	?	5,599,937,349
?	?	?	?
Net increase in cash and cash equivalents	(2,862,549,212)	?	1,511,941,684

????

(2) Details of cash and cash equivalents

?	2023	?	2022
?	?	?	?
Cash on hand	14,205	?	13,361
Bank deposits available on demand	4,248,378,624	?	7,111,658,528
Other monetary funds available on demand	936,992	?	207,144
?	?	?	?
Closing balance of cash and cash equivalents	4,249,329,821	?	7,111,879,033

????

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

restricted usage.

XVII. Extraordinary gains and losses in 2023

?	?	2023	?	2022
?	?	?	?	?


Losses from disposal of non-current assets	?	(19,625,160)	?	(4,908,339)
Government grants recognised through profit or loss (Except for government subsidies that are closely related to the company's normal business operations, comply with national policies and regulations, are enjoyed in accordance with determined standards, and have a continuous impact on the company's profit and loss)	?	3,793,619,228	?	5,458,665,272
Changes in fair value of financial assets held for trading and investment income from disposal of financial assets held for trading	?	360,708,461	?	275,498,559
Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis	?	43,996,519	?	18,395,999
Investment income from disposal of long-term equity investments	?	1,581,850	?	829,872,568
Other income from long-term equity investments		-		4,620,534,865
Other non-operating income and expenses besides items above	?	333,923,695	?	90,115,764

Sub total		4,514,204,593	?	11,288,174,688

Tax effect		227,580,473	?	133,580,776
Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders	?	1,106,627,416	?	1,375,063,961
?	?	?	?	?
Total	?	3,179,996,704	?	9,779,529,951
?	?	?	?	?

???

Note: 1. There is no impact on BOE Group's disclosure for the year after the implementation

based on the Interpretive Pronouncement on the Preparation of InformationDisclosures of Companies Issuing Public Shares No.1 - Extraordinary Gains andLosses (Revised in 2023).

2. Extraordinary gain and loss item listed above are presented in the amount beforetaxation.

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 andEarnings Per Share” (2010 revised) issued by the CSRC and relevant accounting standards,the Group’s return on net assets and earnings per share are calculated as follows:

Profit for the reporting period	Weighted average return on net assets (%)	?	Basic earnings per share	?	Diluted earnings per share
?	?	?	?	?	?
Net profit attributable to the Company’s ordinary equity shareholders	1.89%	?	0.06	?	Not applicable
Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(0.60%)	?	(0.02)	?	Not applicable

????

1 Calculation of earnings per share

(1) Basic earnings per share

For calculation of the basic earnings per share, refer to Note V.60.

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

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

?	2023	?	2022
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	2,411,710,231	?	6,946,201,476
Extraordinary gains and losses attributable to ordinary shareholders of the Company	3,179,996,704	?	9,779,529,951
Consolidated net loss excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(768,286,473)	?	(2,833,328,475)
Weighted average number of ordinary shares outstanding	37,429,510,530	?	37,502,641,911
Basic earnings per share excluding extraordinary gain and loss (RMB/share)	(0.02)	?	(0.08)

???

2 Calculation of weighted average return on net assets

(1) Weighted average return on net assets

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

?	2023	?	2022
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	2,411,710,231	?	6,946,201,476
Weighted average amount of consolidated net assets	127,674,255,464	?	127,511,655,974
Weighted average return on net assets	1.89%	?	5.45%

???

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

?	2023	?	2022
?	?	?	?
Consolidated net assets at the beginning of the year	127,909,808,396	?	129,057,081,638
Effect of consolidated net profit attributable to ordinary shareholders of the Company	1,205,855,116	?	3,473,100,738
Effect of non-public issuance of shares	-	?	-
Effect of repurchase of treasury shares	-	?	(495,230,613)
Distribution of profits to ordinary shareholders	(1,335,983,365)	?	(4,626,435,310)
Effect of change in shareholding ratio of subsidiaries	(418,139,849)	?	377,180,229
Effect of movements in amounts attributable to ordinary shareholders of the Company	312,715,166	?	(274,040,708)
?	?	?	?
Weighted average amount of consolidated net assets	127,674,255,464	?	127,511,655,974

???

(2) Weighted average return on net assets excluding extraordinary gains and losses

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

?	2023	?	2022
?	?	?	?
Consolidated net loss excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(768,286,473)	?	(2,833,328,475)
Weighted average amount of consolidated net assets	127,674,255,464	?	127,511,655,974
Weighted average return on net assets excluding extraordinary gain and loss	(0.60%)	?	(2.22%)

???

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