ANNUAL REPORT 2023
April 2024
BOE Technology Group Co., Ltd. Annual Report 2023
Message to Our ShareholdersAs time passes, we continue to innovate and achieve new milestones.The year 2023 marked a significant milestone for BOE as we celebrated our 30th anniversary in theindustry. Our journey to this point has been fraught with challenges, yet our unwavering resolve anddedication have borne fruit, which can be seen in the significant developmental strides we haveachieved. This past year, with its backdrop of complex global, political, and economic shifts, as wellas ongoing adjustments in industrial structures, has presented us with a unique array of challenges.However, the resilience and tenacity of the BOE team have ensured the stability and incrementalgrowth of our operations. Our operating revenue and net profit before exceptional gains and losseshave shown consistent quarterly growth. Most notably, our net profit attributable to shareholdersbefore exceptional gains and losses, surged by 71.74% year on year, giving us a more solid foundationfor sustained, high-quality growth.Expanding markets and enhancing industry standingWe maintained our global leadership in terms of both shipment volume and shipment area of LCD,and did so across five mainstream product categories. Our innovative IoT products in segments suchas low power consumption, tiled display screens, and digital signage continued to dominate globalshipments. A record-high milestone was reached with nearly 120 million flexible OLED units shippedannually, and this was complemented by the initiation of China's first 8.6G AMOLED production line,further affirming our technological leadership. Our transformational endeavours have also borne fruitacross various sectors. Our smart finance sector expanded its strategic customer base, while oursensor and smart medical engineering sectors have both achieved significant year-on-year growth inoperating revenue. Our strategic integration with HC SemiTek in the MLED sector has also refinedour industrial layout. Moreover, Zhongxiangying has been recognized as a national "Little Giant"firm for being professional, sophisticated, distinctive and novel, and Energy Technology is listedamong the nation's third list of smart photovoltaic pilot demonstration enterprises.Driving innovation to empower high-quality industrial developmentBOE has cumulatively filed applications for over 90,000 patents as of 2023, with inventionscomprising over 90% of the past year's filings and international patents exceeding 33%. And we werenamed for the sixth consecutive year to the Global Top 20 of the U.S. granted patent ranking. Theglobally acclaimed display industry event SID 2023 marked our debut of world-class technologiesand highlighted our capture of nine prestigious awards, further enhancing our presence in the industrythrough leading technological innovation. The BOE Global Innovation Partner Conference 2023, thebiggest ever in our history, served as a professional platform for ecosystem construction andcollaborative exchange, drew unprecedented participation from industry experts, ecosystem partners,and leading companies worldwide, and fueled further momentum for high-quality developmentwithin the industry. To maintain the technological edge, BOE has established key innovationplatforms in semiconductor displays, IoT innovation, and sensor devices. Together with our partners,our collaborative efforts in the advancement of key technology are accelerating the IoTtransformation. In particular, our IoT innovation platform is dedicated to exploring specializedapplication scenarios, while the sensor technology platform is zeroing in on cutting-edgeoptoelectronic and novel sensor technologies. These initiatives are designed to cultivate a more openand collaborative innovation ecosystem, paving the way for the industry’s high-quality, synergistic
BOE Technology Group Co., Ltd. Annual Report 2023
advancement.Using mechanisms to improve scientific management and enhance efficiencyIn the past year, we refined our operational and management mechanisms even further. With theoperational mechanism "three offices and three managements" that integrates “an agile front office,an intensive middle office, and an efficient back office” with “strategy, procedures and performance”,our "Platform + Battle Team" operational model has strengthened management’s responsibility,establishing a matrixed management style where “Battle Teams lead engagements while Platformshandle infrastructure”. This system ensures a customer-centric and business-oriented methodology,effectively marshalling resources and fostering the development of capabilities. This setup not onlyfacilitates the sharing of platform resources and capabilities to leverage economies of scale, but alsomaximizes internal efficiency and collaboration, propelling continuous business growth. Being listedamong world-class demonstration enterprises by the State-owned Assets Supervision andAdministration Commission of the State Council in 2023 along with six other local enterprises is atestament to our past endeavours and achievements, as well as the faith in our potential for futureexcellence.Staying committed to green development and resolutely pursuing a path of low carbonemissionsIn 2023, BOE published the Towards Carbon Neutrality: BOE’s Low-Carbon Development Report,which pledged carbon neutrality in our display operations by 2050. As part of our daily operationsand management, we unswervingly adhere to the sustainable development principles of "Green
+,Innovation
+, Community+." By coordinating green management initiatives, building green factories,establishing green supply chains, and developing green, low-carbon products, we are showing ourcommitment to implementing comprehensive green development practices. Meanwhile, we are alsoaiming to share our low-carbon development experiences with our industry partners through areplicable and referential decarbonization blueprint, one that is designed to aid the industry'stransition towards green development. As we forge ahead, BOE remains dedicated to leading byexample in terms of making low-carbon commitments, endeavouring to safeguard our planet andcreate a better future for the world.Looking back at our 30-year journey, BOE has played a pivotal role in leading China's semiconductordisplay industry from its nascent stages to global prominence. Looking forward, we are poised tocontinue this trajectory of excellence, creating a brighter future for the industry and society at large.We are also committed to doubling down on our strategy of "Empower IoT with Display", joiningforces with numerous ecosystem partners as we embark on another 30-year journey of brilliance inthe IoT era!We deeply appreciate the unwavering trust and support of our shareholders throughout. As we embarkon the next 30 years and continue taking steps towards realizing BOE's grand vision, we also lookforward to your continued partnership in “Building a World-class Company and Embracing a BetterFuture”!
Chairman of BOE
BOE Technology Group Co., Ltd. Annual Report 2023
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. YangXiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department(equivalent to financial manager) hereby guarantee that the Financial Statements carried inthis Report are factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report andits summary.Any plans for the future and other forward-looking statements mentioned in this Report shallNOT be considered as absolute promises of the Company to investors. Investors, among others,shall be sufficiently aware of the risk and shall differentiate between plans and forecasts andpromises.The Board has approved a final dividend plan for the Reporting Period. Based on37,652,529,195 shares, a cash dividend of RMB0.3 (tax inclusive) per 10 shares is to bedistributed to all the shareholders, with no bonus issue from either profit or capital reserves.This Report and its summary have been prepared in Chinese and translated into English.Should there be any discrepancies or misunderstandings between the two versions, the Chineseversions shall prevail.
BOE Technology Group Co., Ltd. Annual Report 2023
Table of Contents
Message to Our Shareholders ...... 1
Part I Important Notes, Table of Contents and Definitions ...... 3
Part II Corporate Information and Key Financial Information ...... 9
Part III Management Discussion and Analysis ...... 14
Part IV Corporate Governance ...... 50
Part V Environmental and Social Responsibility ...... 83
Part VI Significant Events ...... 91
Part VII Share Changes and Shareholder Information ...... 108
Part VIII Preferred Shares ...... 118
Part IX Bonds ...... 119
Part X Financial Statements ...... 122
BOE Technology Group Co., Ltd. Annual Report 2023
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head ofthe financial department (equivalent to financial manager);(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public accountants;(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod; and(IV) This Report disclosed in other securities markets.All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 29 March 2024
BOE Technology Group Co., Ltd. Annual Report 2023
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| SZSE, the Stock Exchange | The Shenzhen Stock Exchange |
| The Company Law | The Company Law of the People’s Republic of China |
| The Securities Law | The Securities Law of the People’s Republic of China |
| The Compliance in Operation of Main Board Listed Companies | Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation of Listed Companies—Compliance in Operation of Main Board Listed Companies |
| The Stock Listing Rules | The Stock Listing Rules of the Shenzhen Stock Exchange |
| The Articles of Association | The Articles of Association of BOE Technology Group Co., Ltd. |
| The Rules of Procedure for the Board of Directors | The Rules of Procedure for the Board of Directors of BOE Technology Group Co., Ltd. |
| The Rules for Independent Directors | The Rules for Independent Directors of BOE Technology Group Co., Ltd. |
| The Rules of Procedure for the Supervisory Committee | The Rules of Procedure for the Supervisory Committee of BOE Technology Group Co., Ltd. |
| The Methods for the Administration of Information Disclosure | The Methods for the Administration of Information Disclosure of BOE Technology Group Co., Ltd. |
| 16K | 16K resolution (15360 × 8640 pixels) |
| 2.4G | A wireless technology with a frequency band between 2.400 GHz and 2.4835 GHz |
| 2/3D | 2D and 3D switching |
| 3D MNT | 3D Monitor |
| 4K | 4K resolution (3840× 2160 pixels) |
| ADS pro | Advanced Dimensional Super Field Conversion Technology (BOE's unique and industry-leading high-end LCD technology solution) |
| AI | Artificial Intelligence |
| AMD | Advanced Micro Devices, Inc. |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| AP | Access Point |
| Box | Soundbox |
| BT 2020 | A colour gamut standard |
| C3, E3 | BOE Smart All-in-One Models |
| CHPI | A high-speed interface technology |
| CMMI5 | Capability Maturity Model Integration 5 |
| COB | Chip (Mini LED) On Board (PCB) |
| COE | Color filter on encapsulation |
| COG | Chip (Mini LED) On Glass |
| CPU | Central Processing Unit |
| CsI | Cesium iodide |
| DIC | Display Innovation China |
| DMS | Driver Monitor System |
| Dual Gate | Structure of a field effect transistor |
| EPD | Electronic Paper Display |
| ESL | Electronic Shelf Label |
| F0 | Fundamental frequency |
| FMLOC | Flexible Multi- Layer On Cell, a solution for integrated touch control that puts the touch layer on top of the flexible OLED package |
| FPXD | Flat Panel X-Ray Detector |
| FreeSync Premium Pro | A display technology developed by AMD (Advanced Micro Devices) to provide a smoother, higher quality gaming experience |
| Gaming | High refresh rate gaming display |
| GOA | Gate on Array, gate drive circuit drive technology embedded in array substrate |
BOE Technology Group Co., Ltd. Annual Report 2023
| H.629.1 | Standard ITU-TH.629.1: Scenarios, Framework and Metadata for Digitalized Artwork Images Display System approved by the International Telecommunication Union |
| HDR | High dynamic range images |
| HERO | Smart cockpit innovation scenarios covering Healthiness, Entertainment, Relaxation and Office |
| HSR | Hardware Super Resulation |
| Hz | Hertz |
| ICDT | International Conference on Display Technology |
| IFA | Internationale Funkausstellung Berlin |
| Intel | Intel Corp. |
| IoT | Internet of Things |
| IPD | Integrated Passive Device |
| Kg | Kilogram |
| LCD | Liquid Crystal Display |
| LED | Light-emitting Diode |
| Local Dimming | An LCD TV technology |
| Logo | A printed design or symbol |
| LTPO | Low Temperature Polycrystalline Oxide |
| LTPS | Low Temperature Poly-Silicon |
| MEMS | Micro-Electro-Mechanical System |
| MES | Manufacturing Execution System |
| Microdisplay | A display technology |
| MIP | Mirco LED In Package |
| MLED | Mini/Micro LED |
| mm | Millimetre |
| MNT | Monitor, generally referring to 27~34 inch monitors |
| MNT Gaming | Gaming monitor |
| ms | Millisecond |
| NB | Note Book |
| NFC | A wireless communication technology |
| nits | Unit Of Luminance |
| OLED | Organic Light Emitting Diode |
| OT | Oxygen Tai Chi |
| Oxide | Oxide thin film transistor technology |
| P3 MNT | A display technology for signal link integration |
| Pad bending | A display panel manufacturing technique |
| Pitch | Distance between two points |
| PPI | Pixels Per Inch |
| SAAS | Software as a Service |
| SID | The Society for Information Display |
| SID PCA | People's Choice Awards by the Society for Information Display |
| Smart feature | Intelligent functions of the display product configuration, such as distance sensing, human body sensing, etc. |
| Smart GOA | A smart drive circuit control technology |
| SMD | Surface Mount Technology |
| Support Win10/11 | Monitors are compatible with both Win10/Win11 systems |
| Tcon | Timing controller |
| TDDI | Touch and Display Driver Integration |
| Teams | Microsoft Teams, an intelligent chat-based team collaboration tool that synchronises document sharing and provides members with instant messaging tools including voice and video conferencing |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| TGV | Through Glass Via |
| Tier1 | Tier-1 supplier of automotive parts and components |
| TPC | Tablet Personal Computer |
| TV | Television |
BOE Technology Group Co., Ltd. Annual Report 2023
| UB Cell | Natural and realistic display as Ultra Black, Ultra Bright, Ultra Brilliant |
| VESA | Video Electronics Standards Association |
| VR/AR | Virtual Reality /Augmented Reality |
| X-ray | A type of radiation that can pass through objects that are not transparent and make it possible to see inside them |
BOE Technology Group Co., Ltd. Annual Report 2023
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Previous stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Chen Yanshun | ||
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China | ||
| Zip code | 100015 | ||
| Past changes of registered address | N/A | ||
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | ||
| Zip code | 100176 | ||
| Company website | www.boe.com | ||
| Email address | ir@boe.com.cn | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | Luo Wenjie |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China |
| Tel. | 010-64318888 ext. | 010-64318888 ext. |
| Fax | 010-64366264 | 010-64366264 |
| E-mail address | liuhongfeng@boe.com.cn | luowenjie@boe.com.cn |
III Media for Information Disclosure and Place where this Report Is Lodged
| Stock exchange website where this Report is disclosed | http://www.szse.cn |
| Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK), http://www.cninfo.com.cn/ |
| Place where this Report is lodged | Board Secretary’s Office |
IV Changes to Company Registered Information
| Unified social credit code | No change |
| Change to principal activity of the Company since going public (if any) | No change |
| Every change of controlling shareholder since incorporation (if any) | No change |
BOE Technology Group Co., Ltd. Annual Report 2023
V Other Information
The independent audit firm hired by the Company:
| Name | KPMG Huazhen LLP |
| Office address | 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing |
| Accountants writing signatures | Su Xing and Chai Jing |
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable ? Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement:
Change of accounting policy.
| Item | 2023 | 2022 | 2023-over-2022 change (%) | 2021 | ||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 174,543,445,895.00 | 178,413,731,179.00 | 178,413,731,179.00 | -2.17% | 219,309,799,505.00 | 221,035,718,012.00 |
| Net profit attributable to the listed company’s shareholders (RMB) | 2,547,435,360.00 | 7,550,877,790.00 | 7,541,423,198.00 | -66.22% | 25,830,935,500.00 | 25,960,751,646.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -632,561,344.00 | -2,228,652,161.00 | -2,238,106,753.00 | 71.74% | 23,937,539,752.00 | 24,067,355,898.00 |
| Net cash generated from/used in operating activities (RMB) | 38,301,826,884.00 | 43,021,967,305.00 | 43,021,967,305.00 | -10.97% | 62,270,556,324.00 | 62,698,688,556.00 |
| Basic earnings per share (RMB/share) | 0.06 | 0.19 | 0.19 | -68.42% | 0.71 | 0.71 |
| Diluted earnings per share (RMB/share) | 0.06 | 0.19 | 0.19 | -68.42% | 0.71 | 0.71 |
| Weighted average return on equity (%) | 1.89% | 5.45% | 5.45% | -3.56% | 23.84% | 23.93% |
| Item | 31 December 2023 | 31 December 2022 | Change of 31 December 2023 over 31 December 2022 (%) | 31 December 2021 | ||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 419,187,099,795.00 | 420,562,103,212.00 | 420,567,865,936.00 | -0.33% | 449,726,980,355.00 | 450,232,603,404.00 |
| Equity attributable | 129,428,307,067.00 | 136,089,410,395.00 | 136,086,175,204.00 | -4.89% | 142,925,547,899.00 | 143,204,240,947.00 |
BOE Technology Group Co., Ltd. Annual Report 2023
to the listedcompany’sshareholders (RMB)
Reason for accounting policy change and correction of accounting error:
As required by Interpretations No. 16 and No. 15 for the Accounting Standards for Business Enterprises issued by the Ministry ofFinance, the Group has retrospectively restated relevant financial statement items at the beginning of the year and in the same periodof last year. The said changes of accounting policies have no significant impact on the Company’s financial condition and operatingresults.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there wasuncertainty about the Company’s ability to continue as a going concern.
□ Yes ? No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative.? Yes □ No
| Item | 2023 | 2022 | Remark |
| Operating revenue (RMB) | 174,543,445,895.00 | 178,413,731,179.00 | N/A |
| Amount deducted from operating revenue (RMB) | 158,513,905.00 | 0.00 | N/A |
| Operating revenue after deduction (RMB) | 174,384,931,990.00 | 178,413,731,179.00 | N/A |
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
BOE Technology Group Co., Ltd. Annual Report 2023
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 37,973,495,034.00 | 42,204,380,186.00 | 46,337,198,045.00 | 48,028,372,630.00 |
| Net profit attributable to the listed company’s shareholders | 247,315,140.00 | 488,494,469.00 | 286,347,794.00 | 1,525,277,957.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | -1,667,931,828.00 | 83,491,537.00 | 92,352,417.00 | 859,526,530.00 |
| Net cash generated from/used in operating activities | 10,122,426,068.00 | 6,121,243,055.00 | 6,815,610,632.00 | 15,242,547,129.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses
? Applicable □ Not applicable
Unit: RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -18,043,310.00 | 5,445,499,094.00 | 174,174,600.00 | N/A |
| Government grants recognised in current profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 3,793,619,228.00 | 5,458,665,272.00 | 2,077,537,306.00 | N/A |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 360,708,461.00 | 275,498,559.00 | 121,656,142.00 | N/A |
| Capital occupation charges on a non-financial enterprise that are charged to current profit or loss | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on assets entrusted to other entities for investment or management | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | 0.00 | 0.00 | N/A |
| Asset losses due to acts of God such as natural disasters | 0.00 | 0.00 | 0.00 | N/A |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 43,996,519.00 | 18,395,999.00 | 20,304,301.00 | N/A |
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 0.00 | 0.00 | 0.00 | N/A |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | 0.00 | 0.00 | N/A |
| One-off costs incurred by the Company as a result of | 0.00 | 0.00 | 0.00 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2023
| discontinued operations, such as expenses for employee arrangements | ||||
| One-time effect on current profit or loss due to adjustments in tax, accounting and other laws and regulations | 0.00 | 0.00 | 0.00 | N/A |
| One-time share-based payments recognized due to cancellation and modification of equity incentive plans | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on changes in the fair value of employee benefits payable after the vesting date for cash-settled share-based payments | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in investment property of which subsequent measurement is carried out using the fair value method | 0.00 | 0.00 | 0.00 | N/A |
| Income from transactions with distinctly unfair prices | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on contingencies that are unrelated to the Company's normal business operations | 0.00 | 0.00 | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | 0.00 | 0.00 | N/A |
| Non-operating income and expense other than the above | 333,923,695.00 | 90,115,764.00 | 90,587,512.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | 0.00 | 0.00 | N/A |
| Less: Income tax effects | 227,580,473.00 | 133,580,776.00 | 191,362,477.00 | N/A |
| Non-controlling interests effects (net of tax) | 1,106,627,416.00 | 1,375,063,961.00 | 399,501,636.00 | N/A |
| Total | 3,179,996,704.00 | 9,779,529,951.00 | 1,893,395,748.00 | -- |
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2023
Part III Management Discussion and AnalysisI Industry Overview for the Reporting PeriodLooking back in 2023, the global geopolitical landscape was fraught with tension, the industrial chain underwent acceleratedrestructuring, and the broader consumer market exhibited sluggish performance. The semiconductor display industry consistentlyunleashed its supply-side capacity, while the tepid recovery in end-user demand led to a more cautious procurement stance amongpanel buyers. Consequently, the industry operated under considerable strain.Despite the challenges, ample opportunities persist. Today, semiconductor displays fuel a multitude of industries, and the seamlessintegration within the Internet of Everything's ecosystem drives the swift evolution of demand-side scenarios. This spans acrossintelligent screens, industrial sensors, automotive electronics, and various consumer terminals. Bolstered by ongoing innovations andbreakthroughs in UHD, ultra-high-refresh, flexible OLED, Mini/MicroLED, and other advanced display technologies, theseadvancements continually boost the performance of terminals. Notably, vehicle-mounted and foldable screen applications haveexperienced a surge in growth and development. The accelerated digital transformation has unleashed fresh business prospects.Semiconductor display technology, when fused with artificial intelligence, the Internet of Things, and other cutting-edge innovations,significantly propels the burgeoning growth of markets for industrial IoT, Intelligent Car Networking, smart finance, smart industrialparks, smart energy and other IoT application industries. Concurrently, the nation is steadfastly advancing the Healthy China initiative,fostering and endorsing health tech innovations, and expediting the establishment of a health service system featuring the integrationof prevention and treatment and the integration of medicine and health care. This strategic move offers expansive development potentialfor the medical and health sectors, invigorating the expanding medical services market encompassing medical engineering, recreationalcommunities, and health IoT solutions.II Principal Operations of the Company in the Reporting Period(I) About the CompanyIn constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligentinterface products and professional services for information interaction and human health.With the vision “To Be the Most Respected Company on Earth”, and upholding the values of integrity & reliability, dedication tocustomers, being people-oriented, openness and innovation, as well as the business philosophy of doing the right thing, innovation andprogress seeking, BOE has been forging ahead through innovation. Upon three decades of development in the industry, BOE has growninto a world leader in the semiconductor display industry and an innovative company in the IoT sector. At present, it has a significantnumber of intelligent manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc.,with subsidiaries in the United States, Germany, Japan, South Korea, Singapore, India, Vietnam, Mexico, Brazil, the United ArabEmirates and other countries and regions, as well as a service system that covers multiple regions of the world, such as Europe,Americas, Asia, and Africa. To embrace the development trends of the IoT era, BOE has put in place a development architecture of"1+4+N+Ecosystem", among which:
"1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source andorigin of the Company's transformation and development."4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, aswell as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, the Sensor business, the MLEDbusiness and the Smart Engineering Medicine business."N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specific
BOE Technology Group Co., Ltd. Annual Report 2023
focus of the Company's IoT transformation development.“Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and byaggregating the resources of the industrial chain and ecosystem chain.(II) About the Company’s principal operations
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interfacedevices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-qualitydisplay devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers withcompetitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI andbig data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions forsegments including smart industrial parks, smart finance, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for glass- and silicon-based system solutions,focuses on smart display windows, innovative glass-based sensor devices, MEMS sensors, industrial sensors, consumer electronics andother fields, and provides customers with products and solutions including intelligent PDLC windows and PDLC system solutions,industrial sensors and solutions, MEMS sensors, and back plates for flat panel X-ray detectors (FPXD), among others.
4. The MLED business
MLED business renders LED backlight products with high quality and reliability for LCD of TVs, monitors, notebooks, vehicles,VR/AR devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high contrast for segmentmarkets of outdoor, commercial, transparent, specialized and other displays. All these products are designed and manufactured in anintegrated manner.
5. The Smart Engineering Medicine business
The Smart Engineering Medicine business adopts a professional service model to provide products, services and solutions in relationto medical care, smart nursing, medical-engineering integration, etc. Meanwhile, this business is committed to providing a closed loopof through-life health services with health management as the core, medical terminals as the traction, and digital hospitals andrecreational communities as the support. It connects testing equipment, healthcare workers and customers through the smart healthmanagement ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing.
6. The “N” business
With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for differentsegments, including smart vehicle connection, industrial IoT, digital art, etc., which can provide customers with all-dimensional, one-stop and smart new experience under IoT scenarios. For example, in terms of smart vehicle connection, the business integrates DMS,gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO"innovative application scenarios that include four dimensions of healthiness, entertainment, relaxation, and office, and providescustomers with professional integrated solutions, which can bring a new and more intelligent driving experience. The industrial IoTbusiness provides enterprises with solutions, products, and services like smart production, smart factory, and cloud services. Relyingon its self-developed industrial Internet platform, it helps realise refined operation and management and achieve cost reduction andefficiency enhancement from all procedures of design, supply, production, and sales, offering all-dimensional, one-stop and smartindustrial IoT solutions to customers and empowering customers in their digital transformation. In the field of digital artworks, thebusiness adheres to "culture + technology" cross-field integration and innovation, launches the "one million digital culture experiencescenario programme" around International Standard H.629.1 for digital art display, and join hands with ecosystem partners at thecontent-, technology- and application-ends, so as to empower culture with display products and solutions with more functions and
BOE Technology Group Co., Ltd. Annual Report 2023
forms and better experience.III Core Competitiveness Analysis
1. Adhering to the “Empower IoT with Display” strategy and building a value growth system that is coordinative based on theecosystemBased on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposedan innovative strategy of "Empower IoT with Display" that is suitable for the transformation and development of its IoT. It regards"display" as an important port for human information interaction and the first channel that shows the integration of digital and realworld in the IoT era, seizing the ubiquitous growth opportunities of "display", and fully leveraging its core advantage of "display" towork with partners to continuously expand the application capabilities of "display" by integrating more functions, deriving more forms,and inserting more scenarios. In this way, the Company will achieve the user perception revolution of "display as terminal" in thedigital era, build an industrial ecology of "display as platform and display as system", and reshape the value growth model.Guided by the strategy of "Empower IoT with display", the Company has established a value creation system for the entire industrychain, from display panels to smart terminals to system solutions. With the strongest product competitiveness and system integrationability in the industry, it is able to meet various needs of customers. In the meanwhile, it always adheres to openness and cooperation.Joining hands with ecosystem partners, it is shifting from "independent company value creation" to "coordinative ecosystem valuecreation” by strengthening the empowerment effect of business ecosystem coordination, in pursuit of a new value growth model.
2. Maintaining industry leadership and cultivating efficient and agile market responsivenessThe Company stays attuned to digital and intelligent industry trends, swiftly identifies customer needs, and closely monitors marketshifts. By proactively pursuing development opportunities and leveraging its current business, it catalyzes fresh market breakthroughsand capitalizes on prime strategic positioning. To solidify its market stronghold across core businesses, the Company fortifies its dualmarketing platforms—domestic and international—empowering rapid business expansion through a responsive, platform-centric,regionally targeted, and locally adapted marketing framework.In 2023, the Company sustained its leadership in the semiconductor display market, maintaining its top global ranking in LCDshipments overall and across five key application segments. In LCD, the Company continuously refined its product mix, reinforceddominance in premium flagship items, and secured the number one spot worldwide in shipments for ultra-large-size (≥85 inches)products, while also making headway in the high-end TV market through its ADS Pro product line. In OLED, the Company shippednearly 120 million flexible AMOLED units, resulting in a substantial year-over-year improvement in profitability from maturingproduction lines.The Company’s ongoing efforts in driving the IoT transformation continue to bear fruit in terms of market expansion. It retains theworld’s leading position in IoT application terminal shipments across whiteboards, splicing products, and advertising machines. Over50 national benchmark projects employing intelligent park solutions have been deployed, serving over 700 clients. The smart financeplatform upgrade went online, reaching multiple bank branches nationwide, achieving full coverage in all 31 provinces andmunicipalities. The Company launched pioneering Cloud-based Splicing and AI-powered all-in-one machines like the C3 and E3models. Strategic collaborations were forged with key MLED industry partners, including Shanghai Film, laying the groundwork forinitial market penetration in the Asia-Pacific and Europe. The sensor business division introduced a full spectrum of reader productsinto the OLED domain, marking the mass production debut of its first high-value-added flexible FPXD product. With the corecapabilities of its digital hospital growing stronger, the Company managed over 1.25 million annual outpatient visits-a near 50% YoYhike-and witnessed around 54,000 discharges, representing over 65% yearly growth, alongside marked improvement in operationalstandards.
3. Persistently reinforcing technology foundation and expediting technology and product innovation
BOE Technology Group Co., Ltd. Annual Report 2023
The Company persistently strengthens its technology innovation framework, constructing a comprehensive innovation environment,finalizing the establishment of three core technology centers, and nurturing closer collaboration between industries, academic entities,and research bodies. The Company has built a technology architecture of “Empower IoT with Display” that is suitable for thetransformation and development of its IoT, including device layer, terminal layer, platform layer, and application layer. With asystematic technological innovation capability that integrates software and hardware, provides key support for the value extension ofits “device - terminal - scenario”.In terms of technology and products, the Company debuted the 4.7-inch 650PPI full-colour lithography AMQLED display prototypeat SID and secured the SID 2023 People’s Choice Award with its 42.2-inch multifunctional all-in-one smart cockpit super modulefeaturing on-screen haptics. Its self-developed OLED COE folding and other platform technologies have successfully transitioned tocommercial products. Moreover, the Company attained CMMI5 certification for its software engineering capabilities and managementstandards, contributing to recognition as a National Industrial Design Center by the Ministry of Industry and Information Technology.It spearheaded the release of the group standard “Ultra-High-Definition Video Processing Algorithms Interface TechnicalSpecifications” and participated in drafting the nation’s pioneering generative AI standards. In terms of the molecular diagnosticsbusiness, the Company extended the use of its cutting-edge multi-omics liquid biopsy platform. Deploying the industry’s pioneeringco-testing technology, the Company embarked on multi-center clinical partnerships with numerous tertiary hospitals to tacklehematological oncology and early-stage Alzheimer’s diagnosis and therapy.In terms of patents, the Company intensified efforts towards acquiring high-quality intellectual property rights. By the end of 2023, ithad cumulatively lodged over 90,000 independent patent applications, with over 30,000 pertaining to flexible OLED technology.Annually, over 90% of new patent applications are for inventions, and more than 33% are filed internationally, spanning jurisdictionssuch as the U.S., Europe, Japan, South Korea, and others. These patents cover diverse sectors including flexible OLEDs, sensing, AI,big data, among others. The Company now possesses over 40,000 valid patents globally. Furthermore, for six consecutive years, theCompany has featured among the global Top 20 Organizations Granted US Patent, ranking 15th worldwide in 2023. This consistentachievement underscores the Company’s robust innovative prowess and its status as a technological trailblazer within the industry.
4. Strengthening lean management expertise and advancing digital transformation and process optimizationThe Company persists in enhancing its lean management approach, embracing lean philosophy, focusing on strategic resourceinvestments, and establishing a streamlined, digitalized, standardized, and process-driven operational structure to solidify its positionas a global leader with enhanced competitive strengths.In terms of operational management, it keeps improving the platform-based organisational design and optimises the operationalmanagement system of “three offices and three managements”. The Company combines the organisational mechanism of an agile frontoffice, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance tocontinuously strengthen the coordinated operation of the three offices and increase the Company’s operational efficiency. Additionally,under the “three offices and three managements” operational framework, the Company piloted a “Platform + Battle Team” model—amatrixed management style where “Battle Teams lead engagements while Platforms handle infrastructure.” This method reinforcescustomer-centric management, balances responsibilities and rights, fosters internal synergy, and aids successful business execution.In terms of digital transformation, the Company has fortified its online process systems, advanced process digitization and digitaloperations, and continued to promote the construction of “one digital and visible BOE” with digital transformation projects as breach.The Company has rolled out version 2.0 of its new management system for digital transformation projects, completing implementation,change and value of digital transformation projects, identifying key control points during the process and consolidating the results ofthe system to promote the effectiveness of the implementation. Simultaneously, the Company has continued refining digitalizationacross diverse areas, ensuring seamless collaboration with key projects and business workflow execution.
5. Inheriting the cultural value system, and staying true to the mission of developmentUpon three decades of ups and downs, the Company has always been adhering to the entrepreneurial spirit of innovation and diligence.It sticks to the establishment of the cultural atmosphere that refers to "step forward and bear your responsibilities bravely, use your
BOE Technology Group Co., Ltd. Annual Report 2023
time efficiently, and innovate proactively without fear of hardship" and guides its employees to work and develop their career underthe principles of "scholar wisdom, commercial thinking, and chivalrous bearing", "observe the problem and bear the responsibilityfrom an overall point of view, think from a different point of view and clarify the responsibilities of each position, dare to raise problemsand help solve them", and so on. Thus, "three virtues" and "five spirits" can be formed. "Three virtues" refers to the gratitude forbuilding ideal and belief oriented and sustainable entrepreneurial organisations, the awe for building sustainable innovation andlearning oriented organisations, and the transcendence for building organisations with large talent tanks, while "five spirits" refer tobackbone, ambition, courage, morale, and confidence. In the face of the opportunities and challenges in a new era, all BOE people willunite as one, firmly carry on and promote the excellent corporate culture and values, stay true to the mission of development, andrelentlessly pursue the vision of “To Be the Most Respected Company on Earth”.
IV Core Business Analysis
1. Overview
1. The Display Devices business
During the Reporting Period, the Company maintained its leadership position, bolstering its development advantages with operatingrevenue approximating RMB147,053 million. LCD shipments remained globally dominant, with numerous world-first technologiesand products solidifying its technological superiority. Sales of ADS Pro TVs in the high-end market topped nearly one million units,while flexible OLED shipments saw significant year-on-year growth, achieving key technological advancements and introducingproducts based on self-developed platforms. Additionally, by seizing market opportunities and starting to build the inaugural 8.6-generation AMOLED production line, the Company reinforced its lead in the semiconductor display industry.
2. The IoT Innovation business
During the Reporting Period, the Company fortified its presence in mainstream markets and ventured into niche sectors, amassingapproximately RMB38.9 billion in revenue, reflecting a year-on-year growth rate of around 13.30%. The intelligent terminal businessthrived: TV operations improved, yielding a 105% YoY profit increase; MNT terminal shipments rose to rank among the top threeglobally; TPC and NB terminal businesses rapidly grew, with operating revenue surging 70% and 50% respectively YoY. The Companystrengthened its low-power EPD industrial chain, integrating “ESL - innovative product module - whole device” manufacturingservices. IoT terminal business developed segmented markets, with splicing products, advertising machines, and whiteboard devicestopping global shipments charts for the first time. The MNT branded product featuring the Company’s 3D terminal debuted at the IFAin September. The system solution business witnessed milestones too: The construction of smart industrial parks for the MangroveTree Resort World Qingdao has been successfully delivered, setting a new benchmark for cultural and tourism park scenarios. Thesmart finance sector facilitated banks’ digital transformations, adding 30 provincial branches and launching SaaS-level innovationslike financial digital assistants and green outlet IoT controls. Branded products unveiled new Cloud-based Splicing, intelligent all-in-one machines C3 and E3 series, while expanding partnerships with leading automotive industry customers and enhancing market clout.
3. The Sensor business
During the Reporting Period, the Company concentrated on high-growth channels, driving high-quality development, recordingapproximately RMB405 million in revenue, a year-on-year increase of around 32.13%. Suzhou BOE Sensor experienced a staggering300% YoY revenue surge; medical imaging revenue grew 45% YoY, with the first batch of flexible, high-value FPXD productsentering mass production, alongside the completion of the second-phase mass production for self-built CsI, enhancing productprofitability. Meanwhile, the MEMS test line successfully navigated through the TGV core process, commencing mass production of2D and 3D IPD products, with the first shipment of pressure sensors accomplished.
4. The MLED business
During the Reporting Period, the Company enhanced technology and product competitiveness, vigorously expanded markets, andgenerated approximately RMB2,902 million in operating revenue, representing an approximate year-on-year increase of 81.42%. It
BOE Technology Group Co., Ltd. Annual Report 2023
completed the strategic integration of the listed platform, expediting its MLED chip supply chain. Glass-based active matrix directdisplay products advanced significantly, with Pitch 0.9mm entering mass production and Pitch 0.5mm passing critical processes andproducing sample outputs. Moreover, the Company forged strategic alliances with key industry players like Shanghai Film, andaggressively pursued overseas business, breaking new ground (“from zero to one”). It successfully launched backlighting solutions fortop-tier overseas commercial display customers, marking a breakthrough in the high-end glass-based commercial display market, whilealso seeing a more than 50% growth in high-end IT and automotive projects.
5. The Smart Engineering Medicine business
During the Reporting Period, the Company consistently fortified the operational proficiency of its digital hospitals, significantlyelevating operational quality. Operating revenue reached approximately RMB2,792 million, reflecting a rise of about 26.71%. Totaloutpatient visits at digital hospitals surged by around 50% YoY, and total discharges grew by over 65% YoY. Notably: OASISInternational Hospital maintained operational excellence improvements and achieved full-year profitability; Suzhou BOE Hospitalhoned specialties in cardiovascular medicine, gastroenterology, and orthopedics, further enhancing its reputation; Chengdu BOEHospital collaborated with Beijing Anzhen Hospital to establish a national cardiovascular disease collaborative center and initiated theWest China Tumor Specialty Alliance, thereby augmenting its service capacity and specialty influence; Hefei BOE Hospital’sOrthopaedics Department performed complex robotic-assisted spinal surgeries, positioning itself as a regional leader in technicalcapability.
6. The “N” business
The Company continuously innovated in specialized domains, creating multiple “specialised, sophisticated, distinctive, and innovative”models. In the industrial IoT field, the Company independently developed semiconductor wafer MES products, accomplishing agroundbreaking entry for MEMS and optical chip clients. A low-code intelligent manufacturing platform was deployed in nearly 20SMEs. In the intelligent energy field, new energy construction tripled in size YoY, and emerging carbon trading transactions doubledYoY. In the UHD display field, the Company contributed to iconic projects like Yibin’s “Three Rivers and Six Banks” urban medianetwork and the National Grand Theater Art Exhibition Center. In the smart vehicle connection filed, the Company partnered withseveral leading domestic automakers, securing a sustainable future for the business. Meanwhile, in the digital art field, the Companytook part in formulating and releasing the industry’s first paper-based eye-care learning machine standard, “Paper-Based LearningMachine Visual Fatigue Reduction Specifications,” and secured the world’s first EYEGUARDA+ gold certification for its small-classscreen products aimed at children’s eye protection.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| Item | 2023 | 2022 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 174,543,445,895.00 | 100% | 178,413,731,179.00 | 100% | -2.17% |
| By operating division | |||||
| Display Devices business | 147,053,141,751.00 | 84.25% | 150,150,853,163.00 | 84.17% | -2.06% |
| IoT Innovation business | 38,900,197,799.00 | 22.29% | 34,334,478,938.00 | 19.24% | 13.30% |
| Sensor business | 405,037,922.00 | 0.23% | 306,552,648.00 | 0.17% | 32.13% |
| MLED business | 2,902,110,558.00 | 1.66% | 1,599,702,766.00 | 0.90% | 81.42% |
| Smart Engineering Medicine business | 2,791,584,190.00 | 1.60% | 2,203,142,667.00 | 1.23% | 26.71% |
| Others and offset | -17,508,626,325.00 | -10.03% | -10,180,999,003.00 | -5.71% | 71.97% |
BOE Technology Group Co., Ltd. Annual Report 2023
| By product category | |||||
| Display Devices business | 147,053,141,751.00 | 84.25% | 150,150,853,163.00 | 84.17% | -2.06% |
| IoT Innovation business | 38,900,197,799.00 | 22.29% | 34,334,478,938.00 | 19.24% | 13.30% |
| Sensor business | 405,037,922.00 | 0.23% | 306,552,648.00 | 0.17% | 32.13% |
| MLED business | 2,902,110,558.00 | 1.66% | 1,599,702,766.00 | 0.90% | 81.42% |
| Smart Engineering Medicine business | 2,791,584,190.00 | 1.60% | 2,203,142,667.00 | 1.23% | 26.71% |
| Others and offset | -17,508,626,325.00 | -10.03% | -10,180,999,003.00 | -5.71% | 71.97% |
| By operating segment | |||||
| Mainland China | 80,541,975,332.00 | 46.15% | 74,124,463,690.00 | 41.54% | 8.66% |
| Other regions in Asia | 55,229,893,619.00 | 31.64% | 63,351,896,814.00 | 35.51% | -12.82% |
| Europe | 5,504,039,510.00 | 3.15% | 5,745,261,109.00 | 3.22% | -4.20% |
| America | 33,250,560,809.00 | 19.05% | 35,121,526,346.00 | 19.69% | -5.33% |
| Other regions | 16,976,625.00 | 0.01% | 70,583,220.00 | 0.04% | -75.95% |
| By marketing model | |||||
| Direct sales | 174,543,445,895.00 | 100.00% | 178,413,731,179.00 | 100.00% | -2.17% |
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%of Operating Revenue or Operating Profit
? Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
| Display Devices business | 147,053,141,751.00 | 133,565,229,836.00 | 9.17% | -2.06% | -3.00% | 0.88% |
| IoT Innovation business | 38,900,197,799.00 | 35,289,028,777.00 | 9.28% | 13.30% | 10.66% | 2.16% |
| By product category | ||||||
| Display Devices business | 147,053,141,751.00 | 133,565,229,836.00 | 9.17% | -2.06% | -3.00% | 0.88% |
| IoT Innovation business | 38,900,197,799.00 | 35,289,028,777.00 | 9.28% | 13.30% | 10.66% | 2.16% |
| By operating segment | ||||||
| Mainland China | 80,541,975,332.00 | 71,407,866,573.00 | 11.34% | 8.66% | 10.43% | -1.42% |
| Other regions in Asia | 55,229,893,619.00 | 47,582,905,390.00 | 13.85% | -12.82% | -14.86% | 2.06% |
| America | 33,250,560,809.00 | 28,697,860,450.00 | 13.69% | -5.33% | -10.00% | 4.48% |
| By marketing model | ||||||
| Direct sales | 174,543,445,895.00 | 152,633,061,367.00 | 12.55% | -2.17% | -3.11% | 0.85% |
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable ? Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
? Yes □ No
| Operating division | Item | Unit | 2023 | 2022 | Change (%) |
| TFT-LCD | Sales volume | K㎡ | 77,400.00 | 76,039.00 | 1.79% |
| Output | K㎡ | 78,107.00 | 75,620.00 | 3.29% |
BOE Technology Group Co., Ltd. Annual Report 2023
| Inventory | K㎡ | 5,690.00 | 4,983.00 | 14.19% | |
| AMOLED | Sales volume | K㎡ | 1,704.00 | 1,125.00 | 51.45% |
| Output | K㎡ | 1,737.00 | 1,157.00 | 50.04% | |
| Inventory | K㎡ | 141.00 | 108.00 | 30.37% |
Reason for any over 30% YoY movements in the data above? Applicable □ Not applicableThe sales volume and output of AMOLED increased by over 30% in 2023 as compared to last year primarily due to the transfer of newproduction line to fixed assets, which provided additional production capacity.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
| By operating division | Item | 2023 | 2022 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 133,565,229,836.00 | 87.51% | 137,702,662,276.00 | 87.41% | -3.00% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 35,289,028,777.00 | 23.12% | 31,888,691,477.00 | 20.24% | 10.66% |
| Sensor business | Materials, labor costs, depreciation, etc. | 330,401,208.00 | 0.22% | 241,869,035.00 | 0.15% | 36.60% |
| MLED business | Materials, labor costs, depreciation, etc. | 3,226,930,635.00 | 2.11% | 1,709,769,060.00 | 1.09% | 88.73% |
| SmartEngineering Medicine business | Materials, labor costs, depreciation, etc. | 2,241,522,000.00 | 1.47% | 1,809,802,648.00 | 1.15% | 23.85% |
| Others and offset | Materials, labor costs, depreciation, etc. | -22,020,051,089.00 | -14.43% | -15,822,228,344.00 | -10.04% | 39.17% |
Unit: RMB
| By product category | Item | 2023 | 2022 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 133,565,229,836.00 | 87.51% | 137,702,662,276.00 | 87.41% | -3.00% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 35,289,028,777.00 | 23.12% | 31,888,691,477.00 | 20.24% | 10.66% |
| Sensor business | Materials, labor costs, depreciation, etc. | 330,401,208.00 | 0.22% | 241,869,035.00 | 0.15% | 36.60% |
| MLED business | Materials, labor costs, depreciation, etc. | 3,226,930,635.00 | 2.11% | 1,709,769,060.00 | 1.09% | 88.73% |
| Smart Engineering Medicine business | Materials, labor costs, depreciation, etc. | 2,241,522,000.00 | 1.47% | 1,809,802,648.00 | 1.15% | 23.85% |
| Others and offset | Materials, labor costs, depreciation, etc. | -22,020,051,089.00 | -14.43% | -15,822,228,344.00 | -10.04% | 39.17% |
Note:
BOE Technology Group Co., Ltd. Annual Report 2023
The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid the leakage ofthese secrets, which could result in damage to the interests of the Company and its investors, cost of sales is only presented with respectto the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ NoThe changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 62,410,123,266.00 |
| Total sales to top five customers as % of total sales of the Reporting Period (%) | 35.76% |
| Total sales to related parties among top five customers as % of total sales of the Reporting Period (%) | 0.00% |
Information about top five customers:
| No. | Customer | Sales revenue contributed for the Reporting Period (RMB) | As % of total sales revenue (%) |
| 1 | Customer A | 26,082,948,856.00 | 14.94% |
| 2 | Customer B | 10,089,892,320.00 | 5.78% |
| 3 | Customer C | 9,596,035,425.00 | 5.50% |
| 4 | Customer D | 9,213,390,969.00 | 5.28% |
| 5 | Customer E | 7,427,855,696.00 | 4.26% |
| Total | -- | 62,410,123,266.00 | 35.76% |
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 22,623,977,598.00 |
| Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) | 18.11% |
| Total purchases from related parties among top five suppliers as % of total purchases of the Reporting Period (%) | 0.00% |
Information about top five suppliers:
| No. | Supplier | Purchase in the Reporting Period (RMB) | As % of total purchases (%) |
| 1 | Supplier A | 6,535,708,601.00 | 5.23% |
| 2 | Supplier B | 4,796,843,034.00 | 3.84% |
| 3 | Supplier C | 4,180,220,681.00 | 3.35% |
| 4 | Supplier D | 3,684,896,835.00 | 2.95% |
| 5 | Supplier E | 3,426,308,447.00 | 2.74% |
| Total | -- | 22,623,977,598.00 | 18.11% |
Other information about major suppliers:
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2023
3. Expense
Unit: RMB
| Item | 2023 | 2022 | Change (%) | Reason for any significant change |
| Selling expense | 3,736,940,205.00 | 4,233,290,297.00 | -11.72% | N/A |
| Administrative expense | 5,944,875,540.00 | 6,247,637,006.00 | -4.85% | N/A |
| Finance costs | 1,150,310,546.00 | 2,445,130,575.00 | -52.96% | Increased interest income and net exchange gain in the Reporting Period |
| R&D expense | 11,319,503,088.00 | 11,100,768,677.00 | 1.97% | N/A |
4. R&D Investments
? Applicable □ Not applicable
| Names of main R&D projects | Project objectives | Project progress | Objectives to be achieved | Expected impact on the future development of the Company |
| UB Cell (Taishan Project) | To produce LCDs with an image quality comparable to that of OLEDs and a cost lower than that of OLEDs and enhance BOE’s competitiveness in high-end products. | Under mass production, with higher image quality under development | 1. To achieve a static contrast ratio improvement up to 3000:1 and a reduction of reflectivity down to 0.7% for the product; 2. To improve colour shift and increase the colour gamut to reach 95% of BT2020 standard for the product; 3. To achieve mass production of high-end flagship models. | To achieve a platform-based leap in technological capability and become a mainstream technology for display products and a strategic leader for product upgrading. |
| Oxide | To further utilize the advantages of high mobility and low leakage current of oxides, develop new device structures, create advanced and reliable oxide process capability, and achieve overall improvement of product performance. | In progress | 1.To fully introduce high-mobility products (mass production has been achieved except for in vehicle-mounted applications) and to complete the establishment of a new device structure product platform; 2. To tackle persistent quality issues and enhance the reliability of oxide products. | To further enhance the mobility of Oxide materials, significantly improve product features such as high refresh, narrow bezels, and high transmittance, and deliver cost-effective technology solutions; construct the BOE Oxide brand based on BOE’s production capacity edge and offer robust support for boosting BOE’s product competitiveness. |
| CHPI and ultra-low power consumption technology | To promote the application of CHPI and ultra-low-power drive technology in TV, MNT and NB products, and realise the autonomy of high-speed transmission interface and low-power drive technology. | In progress | 1. To issue CHPI3.0 protocol and complete chip development and application; 2. To complete the development of ultra-low power technology based on CHPI protocol; 3. To realise mass production of TV/MNT/NB products. | To research and promote BOE’s own signal transmission protocol, build the screen-chip-whole device industry chain, create technical barriers, and form product performance and cost advantages. |
| HSR | To realise refresh rate multiplication without loss of visual resolution under the same hardware | TV/NB products under mass production | 1. To realise mass production of all TV products and achieve mass production of Dual Gate low-cost solution; | To realise the upgrading of the refresh rate of HSR as a standard technology of the whole TV series, expand its application to MNT/NB |
BOE Technology Group Co., Ltd. Annual Report 2023
| conditions and achieve specification improvement and cost reduction. | and MNT products under development | 2. NB/MNT office/game mode switchable products are introduced into customers’ high-end models. | products to realise one-key switching of office/game display modes and low-cost, and facilitate BOE to further enhance the competitiveness of its products. | |
| P3 MNT | To build Tcon fully integrated MNT solution based on the MNT Full HD mainstream product platform and by integrating the functions of the system chip into the timing control chip. | In progress | 1. To render miniaturized and thinner whole device; 2. To shorten links, eliminate signal transmission bandwidth limitations, and realise refresh rate upgrade from 100Hz to 120Hz without increasing cost; 3. To realise screen parameter setting software; 4. To enable remote firmware updates for timing control chips, facilitate troubleshooting and extend the operational lifespan. | To redefine the configurations of modules, systems, and PC functionalities, and achieve innovative breakthroughs in MNT product form factors, which will enhance the value of BOE products and reshape the MNT industrial chain strategically. |
| Health display |
To create BOE’s uniqueround polarized light eyeprotection display,physiological rhythmadjustment and anti-bacterial and anti-virusfunction of a full range ofhealth display technologysolutions.
| In progress, with some products under mass production | 1. To achieve mass production of the full-spectrum natural circular polarization display eye-protection solution; 2. To adjust the ratio of rhythmic friendly wavelengths for backlight, automatically simulating natural light at different times to align with users’ physiological needs, and complete the technological reserve; 3. To source materials and make a technological breakthrough in antibacterial and antiviral technology. | To collaborate with T?V Rheinland to publish the White Paper on Circadian Functionality in Electronic Display Products, develop proprietary intellectual property in natural light-emulating eye care technology, pioneer a new trend in health-focused displays incorporating anti-bacterial and anti-viral properties, enhance product competitiveness and provide strong support to elevate BOE’s market competitiveness. | ||
| Panel as system | To realise the integration of photoinduction, NFC, in-box heating, Smart GOA and other functions to enhance product competitiveness. | In progress | 1. To realise light intensity/colour temperature detection function through the incell light sensors with self-developed algorithm; 2. To complete the development of in-panel integrated NFC technology, compatible with TDDI functionality; 3. To achieve heating up controllable In-Cell heating and mass-produce automotive electronic rearview mirror products; 4. To adjust TFT voltages using Smart GOA technology, extend GOA lifetime, and complete technical validation. | To integrate more functions into the panel and provide consumers with more convenient and cost-effective products, so that the panel can offer more value-added benefits and can be applied to more scenarios. |
| Gaming | To further improve the product refresh rate and | Under mass | 1. To achieve mass production of several high-end gaming | The related technical achievements won the first prize of Beijing |
BOE Technology Group Co., Ltd. Annual Report 2023
| products | enhance the competitiveness of BOE in Gaming series products through comprehensive technology upgrades. | production. | flagship products while achieving the technology reserve of a high refresh rate of 500+Hz for medium to large-sized products. 2. To achieve extremely fast response within 1ms. | Science and Technology Progress Award. Relying on BOE’s advanced high refresh rate technology, it will achieve the import of all high-end products for brand customers, provides users with the ultimate smooth gaming experience, seizes the high-end gaming market, and helps BOE enhance its competitiveness in the field of e-sports and realise profitable growth. |
| Automotive Intelligent Cockpit | To integrate multiple functions based on the high-resolution ultra large screen and create a new concept of intelligent cockpit. | In progress | Panel-integrated features include under-panel cameras, haptic feedback, light sensing integration, and switchable peep-proof, among various other functionalities. | To secure the 2023 SID Display Week PCA Award, lead the trend towards high-definition large-size smart displays in vehicles, develop multifunctional, intelligent cockpit solutions for automobiles, and boost the competitiveness of vehicle products. |
| Fingerprint on Display | To realise glass-based ultrasonic fingerprint recognition technology and develop large-size, pressure-sensitive integrated functions. | Under mass production. | To develop 20×30 large-size under-panel ultrasonic fingerprint identification module with integrated pressure-sensing function and realise mass production. | To win the Gold Award for Display of the Year at ICDT 2023 and secure the Silver Award for Display Application of the Year at DIC 2023; fully leverage the advantages of glass-based products, explore new business directions with potential for commercialization and strengthen BOE’s brand value. |
| Advanced Active Privacy/Share switchable Panel | To realise switchable peep-proof technology for multiple products, Which meet users' needs for privacy protection and enhance product competitiveness. | Under mass production. | To realise four-sided peep-proof switchable and partial peep-proof technologies, mass production for notebook-associated products, as well as import of monitor-related and vehicle-mounted products. | To integrate more functions into display products to meet customer needs and apply the technology to the notebooks, vehicle displays, monitors and other areas to capture a greater market share. |
| Medium-size FMLOC + active pen | To integrate touch capabilities using FMLOC technology to both fulfill human-machine interface demands and accomplish product slimming. | Under mass production. | 1. To achieve implementation of the flexible FMLOC technology with Active Pen support; 2. To realise an integrated and slimmed-down screen design. | The adoption of this technology will facilitate further integration and slimming of touch-enabled display solutions, laying the groundwork for diversified product form factor offerings. |
| Mass production of flexible flat panel products | To integrate flexible OLED technology, implement four-side narrow bezels, combine FMLOC technology with active pen, launch a fully flexible tablet product and achieve mass production. | Under mass production. | To complete mass production integration verification of Pad bending technology, FMLOC active pen technology, and module material lightweight technology and achieve mass production. | The introduction of this product is conducive to OLED’s further breakthrough in the flat panel/NB market, enhancing BOE’s influence. |
| Wearable form factor technology development | To break through the traditional flat form of wearable and realise breakthroughs in form factor (spherical, folding). | In progress | To complete the breakthrough of wearable product form and help to improve the competitiveness of terminals. | To improve the competitiveness of flexible wearable, increase the competitiveness of wearable technology, and broaden the product line. |
BOE Technology Group Co., Ltd. Annual Report 2023
| COE technology | To remove module polarizer; To reduce power consumption. | Under mass production. | 1. Power consumption reduction >20%; 2. Thickness reduction >50μm. | Polarizer functions will be integrated into the display module, thereby enhancing the added value for the display manufacturer. COE is primarily utilized for foldable devices, providing consumers with a thinner and more portable experience. |
| LTPO 2.0 pixel circuit | To realise higher precision frequency conversion. | Under mass production. | 1. To realise frequency conversion from 1 to 120Hz; 2. To make frequency conversion for dynamic images smoother; 3. To extend the life of the whole device. | To incorporate standard-setting technologies for foldable and high-end flagship models to extend consumer standby times and enhance user experiences. |
| LTPS P0.5 technology development | To achieve technology breakthrough in the direction of Mini/MicroLED display, enhance technical capability, and explore feasible technology and process routes for mass production of subsequent small-pitch products. | In progress | To output small-pitch technology solutions and process routes, including new side-wiring bonding technology (V2.0), high-voltage MIP technology, ultra-thin structure design, etc., to provide technical accumulation for subsequent small-pitch product development. | To realise BOE’s technological breakthrough in the direction of Mini/Micro small-pitch splicing display, establish technological barriers, and accelerate BOE’s all-round layout of Mini/Micro display products thereby enhancing BOE’s influence in the Mini/Micro display industry. |
| Medium- and large-size COG Backlight products | Glass-based large-size splicing products; MLED glass-based high dimming zones product development; MLED product cost reduction. | Splicing products under mass production Product design validation for high dimming zones completed | It provides customers with ultra-high specification products with 1K/2K/4K-dimming zones, a peak brightness up to 2000nit, ultra-high reliability and a million-grade contrast ratio, entering the high-end market of MNT Gaming and tilted displays. | To strategically position MNT MLED gaming products and catere to the premium demands of the esports market; to gain recognition from top international customers and enhance market share in the MLED display segment. |
| Small- and medium-size backlight products | To achieve product specifications of ultra-high dimming zones, ultra-high brightness and an ultra-high contrast ratio for high-end gaming laptops to meet the demand of top customers and bring ultimate experience to gaming laptop users. | Under mass production. | NB products obtain the VESA HDR1000 certification and achieve product specifications of ultra-high dimming zones, ultra-high brightness and an ultra-high contrast ratio for gaming laptops to bring ultimate experience to gaming laptop users and assist key customers in realizing the continued leadership of high-end gaming laptops. | To release ultra-high dimming zones products for the gaming laptop market to maintain the Company’s leading position in the NB Mini LED market and offer the advantages of energy saving, thinness, wide colour gamut, high contrast ratio and fine dynamic dimming zones. |
| Vehicle backlight products | To cooperate with multiple automobile or Tier1 brands to enhance the in-vehicle screen to realise product specifications of high dimming zones, high brightness, and ultra-high | In progress | To introduce Mini LED technology to enhance the vehicle-amounted LCD display effect, reach product specifications of high dimming zones, high brightness, and an ultra-high contrast ratio and compete with the visual effects | To achieve breakthrough in the development of vehicle-amounted Mini LED products, greatly enhance the performance of LCD vehicle-amounted products and support automotive customers in their growth trajectory toward |
BOE Technology Group Co., Ltd. Annual Report 2023
| contrast ratio, and bring a new ultimate experience to automobile users. | achieved by OLED screens. | intelligent vehicle development. | ||
| High-end GamingTV Project | To enhance customers’ high-end product positioning in the North American market and assist customers to enhance the brand image and win market share. | The product client has been launched. | Implement multiple-partition Local Dimming control to achieve high contrast ratios, integrate BOE’s 120Hz→240Hz HSR hardware partitioning technology and ADS pro features and successfully pass AMD Free-Sync Premium Pro certification for the esports industry. | To enhance brand customers’ recognition of BOE’s technical capabilities and realise the high-end Gaming TV technology card; promote the market application of ADS Pro technology and enhance the market competitiveness of BOE’s high-end TVs. |
| Teams Certified Monitors | To realise a more humanized Smart feature display experience and solve the problems of HD audio and video technology as well as intelligent echo cancellation technology based on the Teams certified features. | The product client has been launched. | To obtain Microsoft Teams certification, complete FreeSync Premium Pro certification, utilize LCD driver acceleration technology and high-bandwidth digital content protection technology (Support Win10/11) to achieve better customer experience. | To successfully complete Microsoft Teams display technology certification, realise the Company’s display technology enhancement and lay a solid foundation for the Company’s high-end display technology development. |
| Development of light gaming all-round laptop | Expand laptop brand customer base and implement common-mode design to produce the same product model with two distinct CPU platforms – one based on off-the-shelf solutions and another built on self-developed technology. | The product client has been launched. | 1. To accommodate a total of four models from Intel and AMD platforms; 2. To achieve a dual-side narrow bezel design of 5mm and reach a screen-to-body ratio of 87.5%; 3. To realise a sleek design with a thickness of 18mm and a weight of 1.9kg, available in two colour options - Dawn White and Dusk Grey - complemented by an ice-blue glowing logo and a dawn-inspired light strip. | To uphold a strong reputation for BOE and its customers with professional development capabilities and sound product quality, thereby laying the foundation for securing greater breakthroughs with brand customers. |
| Bare Ear 3D Spatial Audio TPC | To complete the development of 13-inch bare ear 3D spatial audio TPC. | The product client has been launched. | To render a 3813 x 2.2 ultra-thin screen surpassing industry standards, develop and design an ultra-low F0 core technology, employ a Box ultra-high/low frequency crossover design, and achieve an ultra-narrow camera leading the industry at the same time. | TPC flagship products will achieve a qualitative leap in product development capabilities. |
| OT 5Hz-144Hz Dynamic Refresh TPC | To complete the research and development of 5Hz-144Hz dynamic refresh TPC. | R&D completed. | 1. Implement 5Hz ultra-low frequency refresh to increase battery life by 20%; 2. Enable ultra-wide frequency range refresh from 5Hz to 144Hz; 3. Develop BOE’s proprietary DFS frame cutting service (finger touch frame cutting and | Self-developed TPC products based on Oxide 5Hz-144Hz dynamic refresh. |
BOE Technology Group Co., Ltd. Annual Report 2023
| 60Hz frame cutting for active pens). | ||||
| Long-distance range AP technology development | To design and develop a proprietary 2.4 GHz communication protocol for use in low-power EPD, develop electronic shelf labels (ESLs) and access points (APs), and implement cloud platform management and control systems capable of remotely updating ESL content; ultimately penetrate the market for electronic paper derivative products while achieving complete technological autonomy and economic benefits. | R&D completed. | To implement a 2.4GHz proprietary protocol communication system that ensures a minimum lifespan of 5 years for electronic tags, utilise 2.4GHz wireless technology for fast refreshing of electronic labels, develop a cloud management platform capable of managing APs and tags, ensure that a single AP can handle a load of at least 36,000 tags, and configure each AP to perform a full graphic refresh for no less than 1,500 tags per hour. | To develop 2.4G proprietary protocols for the application of EPD in various sectors such as smart retail, smart warehousing, and healthcare, explore other uses of EPD in untapped areas, achieve complete ownership of independent intellectual property rights and mastery of core technologies, enhance the competitive edge of electronic paper-derived products, and drive revenue growth and diverse development of the Company. |
| Naked-eye 3D MNT Product Development Project | To broaden the application of 2D/3D switchable naked-eye 3D technology in MNT products, support single-user high mobility viewing, enhance the immersive nature of 3D viewing experiences, and achieve the independent development of MNT products with switchable 2/3D naked-eye 3D display capabilities. | Under mass production. The product client has been launched. | To realise the 2D/3D switchable naked-eye 3D display feature, ensure high 3D transmission rate while maintaining lossless 2D images, integrate an on-board 3D display processing chip, reduce main frame configuration requirements, provide 3D software and software development kits and support the 3D conversion of multiple scenarios. | To position the 2/3D switchable naked-eye 3D MNT product at the forefront of the industry, achieve one-button switching between 2D and 3D modes, incorporate eye-tracking technology for single-user, highly flexible mobile viewing experiences, widely apply this technology in individual-use scenarios such as 3D gaming, video playback, 3D live streaming, and software conversions and empower customers to participate in IFA exhibitions where they have secured two prestigious awards. |
| Ultra-large size 16K naked-eye 3D commercial display machine technology development project | The growing appetite for naked-eye 3D advertising machines is driving widespread demand, and BOE’s independent development of extra-large size naked-eye 3D displays bolsters its technological backbone for business expansion in the commercial 3D display domain. | R&D completed. | To realise the independent R&D of ultra-large-sized, ultra-high-resolution, high colour-gamut, and wide-view-angle 3Dcommercial display set, and independently develop 16K interlacing layout algorithms as well as a 16K 3D player to provide users with high-definition, premium-quality, immersive, and highly flexible 3D viewing experiences through naked-eye 3D products. | To develop ultra-large-sized naked-eye 3D display devices with ultra-high resolution and lossless playback capabilities, enabling multiple viewers to simultaneously move around freely while enjoying an immersive experience, suitable for applications in sectors such as advertising, conferences, and education, thus contributing to BOE’s leadership in setting the benchmark for the 3D display industry. |
| 3D Content Intelligent Generation System | To foster the ecosystem of naked-eye 3D content and work to solve the issues of low engagement and challenging promotion faced by 3D hardware due to a scarcity of content, through dedicated software solutions. | R&D completed. | To enable real-time viewing of 2D videos converted to 4K high-definition 3D format while playing and achieve cost-effective realization of 3D video calls with enhanced stereoscopic effects. | To establish a BOE naked-eye 3D software content ecosystem, provide a seamless integration of hardware and software solutions for BOE’s naked-eye 3D devices, enhance the product competitiveness and enrich the 3D software environment. |
| Smartbank branch | To complete the innovative development | Launched. | To optimize fundamental functionalities to enhance | To continuously refine the technical capabilities of core products, |
BOE Technology Group Co., Ltd. Annual Report 2023
| integrated management platform 2.X project | of application scenarios within the digital transformation strategy for smart banks, provide a broader range of system solution capabilities and enhance the competitiveness of core products. | customer experience, successfully develop eight innovative SAAS applications to diversify banking customer solution scenarios, and integrate IoT energy consumption monitoring, AI invisible watermark monitoring, and AI gaze tracking technologies to finalize the practical implementation of these technological innovations and boost product competitiveness. | enhance the competitiveness of BOE’s financial industry solutions, expand system solution capacities in inclusive finance, innovation finance, and green finance directions and facilitate sustained, high-quality growth for BOE’s smart financial services business. | |
| Smart window solution development | Develop smart window solution products for architecture, transportation and other scenes. Create environmental light adaptive smart window products. | Launched to the market | Completed the development and commercialization of updated smart window solution products. By adjusting the window transmittance, improve the user experience, upgrade smart windows technology for architecture, transportation and other scenes. | The new generation of smart window solution products is a technological innovation, and upgrading for the traditional buildings and vehicle windows. The market size of this product is huge. Through the completion of this product development, the company obtains more market opportunities. |
| Solar-powered wireless smart window solution development | Apply solar power and wireless transmission technology, we develop the smart window solution product that powered by green energy and without wiring requirements. | Developing | Develop a smart window solution product that powered by green energy and without wiring requirements. | Solve architectural customer pain points and improve customer experience. Get potential customers. |
| Photoelectric sensor development | Develop a general photoelectric sensor product for industrial automation. | Mass production. | Complete photoelectric sensor, slot sensor, color sensor, fiber optic sensor product development and mass production. | Exploring the market for sensors and solutions in the field of industrial automation. |
| High-precision measurement sensor development | Develop a high-precision measurement sensor. | Developing | Output prototype, and its technical indicators such as measurement accuracy, response time etc. meet requirements. | The target product of this project is the main product in the field of industrial sensor. The company will expand the industrial sensor market such as new energy, semiconductors, and lasers by this product. |
| FPXD development | Improve the product competitiveness of FPXD. | Mass production. | 1. Enhancing the dynamic response characteristics of the panels to reduce ghosting and improve frame rate; 2. Developing high sensitivity scintillators process to improve signal-to-noise ratio. | By improving the product performance, the company will expand the application filed of FPXD products. |
Particulars about R&D personnel:
| Item | 2023 | 2022 | Change (%) |
| Number of R&D personnel | 21,888 | 21,075 | 3.86% |
| R&D personnel as % of total employees | 24.17% | 23.86% | 0.31% |
| Educational background of R&D personnel | |||
BOE Technology Group Co., Ltd. Annual Report 2023
| Bachelor’s degree | 13,237 | 12,835 | 3.13% |
| Master’s degree | 6,620 | 6,297 | 5.13% |
| Age structure of R&D personnel | |||
| Below 30 | 8,478 | 9,513 | -10.88% |
| 30~40 | 11,238 | 10,046 | 11.87% |
Particulars about R&D investments:
| Item | 2023 | 2022 | Change (%) |
| R&D investments (RMB) | 12,563,352,690.00 | 12,601,880,481.00 | -0.31% |
| R&D investments as % of operating revenue | 7.20% | 7.06% | 0.14% |
| Capitalized R&D investments (RMB) | 2,099,546,599.00 | 2,036,264,271.00 | 3.11% |
| Capitalized R&D investments as % of total R&D investments | 16.71% | 16.16% | 0.55% |
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
5. Cash Flows
Unit: RMB
| Item | 2023 | 2022 | Change (%) |
| Subtotal of cash generated from operating activities | 197,467,109,087.00 | 217,984,263,980.00 | -9.41% |
| Subtotal of cash used in operating activities | 159,165,282,203.00 | 174,962,296,675.00 | -9.03% |
| Net cash generated from/used in operating activities | 38,301,826,884.00 | 43,021,967,305.00 | -10.97% |
| Subtotal of cash generated from investing activities | 75,280,272,801.00 | 85,775,713,322.00 | -12.24% |
| Subtotal of cash used in investing activities | 104,582,082,981.00 | 121,748,512,196.00 | -14.10% |
| Net cash generated from/used in investing activities | -29,301,810,180.00 | -35,972,798,874.00 | 18.54% |
| Subtotal of cash generated from financing activities | 30,633,001,231.00 | 54,885,926,217.00 | -44.19% |
| Subtotal of cash used in financing activities | 52,294,369,872.00 | 76,059,178,079.00 | -31.25% |
| Net cash generated from/used in financing activities | -21,661,368,641.00 | -21,173,251,862.00 | -2.31% |
| Net increase in cash and cash equivalents | -12,289,056,016.00 | -12,241,448,319.00 | -0.39% |
Explanation of why any of the data above varies significantly:
? Applicable □ Not applicableNet cash generated from operating activities decreased 10.97% year on year, primarily driven by the decreased sales and tax and levyrebates during the Reporting Period.Net cash generated from investing activities increased 18.54%year on year, primarily driven by the decrease in cash paid for theacquisition and construction of long-term assetsthe increased net inflow from investments in wealth management instruments duringthe Reporting Period.
Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this Reporting
BOE Technology Group Co., Ltd. Annual Report 2023
Period
□ Applicable ? Not applicable
V Analysis of Non-Core Businesses? Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Source/Reason | Recurrent or not |
| Return on investment | 810,709,642.00 | 44.23% | Returns recognized on investments in associates during the Reporting Period | Not |
| Gain/loss on changes in fair value | 291,542,233.00 | 15.91% | N/A | Not |
| Asset impairments | -2,406,230,634.00 | -131.27% | Inventory valuation allowances established based on market conditions | Not |
| Non-operating income | 383,996,163.00 | 20.95% | N/A | Not |
| Non-operating expense | 69,649,357.00 | 3.80% | N/A | Not |
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| Item | 31 December 2023 | 1 January 2023 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 72,467,392,718.00 | 17.29% | 68,800,307,369.00 | 16.36% | 0.93% | N/A |
| Accounts receivable | 33,365,416,490.00 | 7.96% | 28,203,647,569.00 | 6.71% | 1.25% | N/A |
| Contract assets | 95,710,742.00 | 0.02% | 71,636,461.00 | 0.02% | 0.00% | N/A |
| Inventories | 24,119,667,325.00 | 5.75% | 22,787,814,225.00 | 5.42% | 0.33% | N/A |
| Investment property | 1,412,553,446.00 | 0.34% | 1,122,025,138.00 | 0.27% | 0.07% | N/A |
| Long-term equity investments | 13,731,696,627.00 | 3.28% | 12,421,878,851.00 | 2.95% | 0.33% | N/A |
| Fixed assets | 210,371,476,524.00 | 50.19% | 205,987,050,430.00 | 48.98% | 1.21% | N/A |
| Construction in progress | 29,670,115,546.00 | 7.08% | 43,386,134,668.00 | 10.32% | -3.24% | Transfer of new constructions to fixed assets during the Reporting Period |
| Right-of-use assets | 724,344,345.00 | 0.17% | 687,120,946.00 | 0.16% | 0.01% | N/A |
| Short-term borrowings | 1,746,184,534.00 | 0.42% | 2,373,938,871.00 | 0.56% | -0.14% | N/A |
| Contract liabilities | 3,000,168,620.00 | 0.72% | 2,411,717,792.00 | 0.57% | 0.15% | N/A |
| Long-term borrowings | 121,546,339,022.00 | 29.00% | 123,143,479,690.00 | 29.28% | -0.28% | N/A |
| Lease liabilities | 542,141,496.00 | 0.13% | 538,586,010.00 | 0.13% | 0.00% | N/A |
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2023
2. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 17,187,993,936.00 | 88,938,906.00 | 0.00 | 0.00 | 61,259,686,426.00 | 70,639,200,000.00 | 0.00 | 7,755,964,495.00 |
| 2.Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Investments in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Investments in other equity instruments | 483,060,306.00 | 0.00 | -235,537,897.00 | 0.00 | 2,197,830.00 | 0.00 | -3,035,565.00 | 494,629,577.00 |
| 5. Other non-current financial assets | 2,022,967,681.00 | 202,603,327.00 | 0.00 | 0.00 | 28,207,317.00 | 0.00 | 0.00 | 2,253,778,325.00 |
| Subtotal of financial assets | 19,694,021,923.00 | 291,542,233.00 | -235,537,897.00 | 0.00 | 61,290,091,573.00 | 70,639,200,000.00 | -3,035,565.00 | 10,504,372,397.00 |
| Investment property | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Receivable financing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 408,534,622.00 | 408,534,622.00 |
| Total of the above | 19,694,021,923.00 | 291,542,233.00 | -235,537,897.00 | 0.00 | 61,290,091,573.00 | 70,639,200,000.00 | 405,499,057.00 | 10,912,907,019.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes:
N/ASignificant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
BOE Technology Group Co., Ltd. Annual Report 2023
3. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 1,869,539,464.00 | Mainly security deposits, and amounts put in pledge for the issuance of notes payable |
| Notes receivable | 230,354,069.00 | Endorsed and transferred with right of recourse, and those put in pledge for the issuance of notes payable |
| Fixed assets | 136,319,471,935.00 | As collateral for guarantee |
| Intangible assets | 1,546,929,316.00 | As collateral for guarantee |
| Construction in progress | 2,925,304,165.00 | As collateral for guarantee |
| Investment property | 100,605,150.00 | As collateral for guarantee |
| Total | 142,992,204,099.00 | -- |
VII Investments Made
1. Total Investment Amount
? Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | Change (%) |
| 1,116,622,231.00 | 7,529,231,984.00 | -85.17% |
2. Significant Equity Investments Acquired in the Reporting Period
? Applicable □ Not applicable
Unit: RMB
| Investee | Principal operations | Way of investment | Amount of investment | The Company’s interest | Funding source | Co-investor | Term of investment | Type of the investee’s products | Investment progress as of the balance sheet date | Anticipated income | Return in the Reporting Period | Any legal matter involved or not | Date (if any) of disclosure | Index (if any) to disclosed information |
BOE Technology Group Co., Ltd. Annual Report 2023
| Chengdu BOE Display Technology Co., Ltd. | Investment in the construction of the BOE 8.6G AMOLED production line | Newly incorporated | 19,999,400,000.00 | 52.63% | Self-funded and externally funded | The Administrative Committee of the Chengdu Hi-Tech Industrial Development Zone | - | This project intends to produce mainly high-end touch display for notebooks/tablet PCs, among others, focusing on medium-sized OLED IT products. | - | - | - | No | 29 November 2023 | www.cninfo.com.cn |
| Total | -- | -- | 19,999,400,000.00 | -- | -- | -- | -- | -- | -- | - | - | -- | -- | -- |
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable ? Not applicable
4. Financial Investments
(1) Securities Investments
? Applicable □ Not applicable
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Funding source |
| Domestic/overseas stock | 600658.SH | BEZ | 90,160,428.00 | Fair value method | 53,614,432.00 | 0.00 | -28,710,041.00 | 0.00 | 0.00 | 728,606.00 | 61,450,387.00 | Other equity instrument investment | Self-funded |
| Domesti | 01963.HK | Bank | 120,084,375.00 | Fair | 91,600,150.00 | 0.00 | -29,667,668.00 | 0.00 | 0.00 | 9,885,131.00 | 90,416,707.00 | Other | Self- |
BOE Technology Group Co., Ltd. Annual Report 2023
| c/overseas stock | of Chongqing | value method | equity instrument investment | funded | |||||||||
| Domestic/overseas stock | 01518.HK | New Century Healthcare | 140,848,850.00 | Fair value method | 9,098,008.00 | 0.00 | -123,360,576.00 | 0.00 | 0.00 | 0.00 | 17,488,274.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | 002841.SZ | CVTE | 299,999,939.00 | Fair value method | 256,525,783.00 | -53,808,754.00 | 0.00 | 0.00 | 0.00 | -53,808,754.00 | 202,717,029.00 | Held-for-trading financial assets | Self-funded |
| Domestic/overseas stock | 688720.SH | ASEM | 29,999,976.00 | Fair value method | 0.00 | 28,484,211.00 | 0.00 | 29,999,976.00 | 0.00 | 28,484,211.00 | 58,484,187.00 | Held-for-trading financial assets | Self-funded |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 681,093,568.00 | -- | 410,838,373.00 | -25,324,543.00 | -181,738,285.00 | 29,999,976.00 | 0.00 | -14,710,806.00 | 430,556,584.00 | -- | -- | ||
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
? Applicable □ Not applicable
(1) Overall Usage of Funds Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Year | Way of raising | Total funds raised | Net proceeds | Total funds used in the | Accumulative funds | Total funds with usage | Accumulative funds with usage | Proportion of accumulat | Total unused | The usage and destination | Amount of funds raised idle |
BOE Technology Group Co., Ltd. Annual Report 2023
| Current Period | used | changed | changed | ive funds with usage changed | funds | of unused funds | for over two years | ||||
| 2021 | Private placement of shares | 2,033,260 | 1,986,951 | 166,166 | 2,033,260 | 100,000 | 100,000 | 4.92% | 0 | N/A | 0 |
| 2022 | Renewable corporate bonds | 200,000 | 198,888 | 0 | 200,000 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| Total | -- | 2,233,260 | 2,185,839 | 166,166 | 2,233,260 | 100,000 | 100,000 | 4.48% | 0 | -- | 0 |
| Explanation of overall usage of funds raised | |||||||||||
| The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus. The cumulative amount of raised funds through private placement of shares was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the Reporting Period, the raised funds were used according to project investment plans and have been used up, conforming to the relevant promise. | |||||||||||
(2) Commitment Projects of Fund Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Changed or not (including partial changes) | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the Reporting Period | Accumulative investment amount as of the period-end (2) | Investment schedule as the period-end (3)＝(2)/(1) | Date of reaching intended use of the project | Realized income in the Reporting Period | Whether reached anticipated income | Whether occurred significant changes in project feasibility |
| Committed investment project | ||||||||||
| Project of repaying the loan from Fuzhou Urban Construction Investment Group | Not | 300,000 | 300,000 | 0 | 300,000 | 100.00% | No | N/A | N/A | Not |
| Acquisition of 24.06% equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 650,000 | 650,000 | 0 | 650,000 | 100.00% | No | N/A | N/A | Not |
| Project of a capital increase to Chongqing BOE Display Technology | Not | 600,000 | 600,000 | 66,166 | 600,000 | 100.00% | December 2024 | N/A | N/A | Not |
BOE Technology Group Co., Ltd. Annual Report 2023
| Co., Ltd. and the relevant construction | ||||||||||
| Project of BOE’s 6th new-type semi-conductor display device production line | Yes | 100,000 | 100,000 | 100,000 | 100,000 | 100.00% | December 2025 | N/A | N/A | Not |
| Project of a capital increase to Chengdu BOE Hospital Co., Ltd. and the relevant construction | Not | 50,000 | 50,000 | 0 | 50,000 | 100.00% | April 2021 | N/A | N/A | Not |
| Supplementing working capital with the funds raised in the 2021 private placement of shares | Not | 286,951 | 286,951 | 0 | 286,951 | 100.00% | No | N/A | N/A | Not |
| 22BOEY1-Capital increase to Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 100,000 | 100,000 | 0 | 100,000 | 100.00% | No | N/A | N/A | Not |
| 22BOEY1- Capital increase to Chongqing BOE Display Technology Co., Ltd. | Not | 90,000 | 90,000 | 0 | 90,000 | 100.00% | No | N/A | N/A | Not |
| 22BOEY1–Supplementing working capital | Not | 10,000 | 8,888 | 0 | 8,888 | 100.00% | No | N/A | N/A | Not |
| Subtotal of committed investment project | -- | 2,186,951 | 2,185,839 | 166,166 | 2,185,839 | -- | -- | N/A | -- | -- |
| Super raised funds arrangement | ||||||||||
| N/A | ||||||||||
| Total | -- | 2,186,951 | 2,185,839 | 166,166 | 2,185,839 | -- | -- | N/A | -- | -- |
| Describe project by project any failure to meet the schedule or anticipated income, as well as the reasons (including reasons for inputting “N/A” for “Whether reached | All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loan from Fuzhou Urban Construction Investment Group / acquisition of 24.06% equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / Supplementing working capital with the funds raised in the 2021 private placement of shares) have been used up. As a result, the Company's main business will be developed, its competitiveness will be enhanced, its debt-to-asset ratio will be effectively reduced, its debt paying ability will be strengthened, and its financial position will be improved. The input of “N/A” in the “anticipated income” is because these projects do not directly generate economic benefits. The committed investment project (a capital increase to Chengdu BOE Hospital Co., Ltd. and the relevant construction) has not yet entered into the period of stable operation and profitability. The committed investment project (BOE’s 6th new-type semi-conductor display device production line) is now under construction (construction period: 2023-2025), which is expected to achieve mass production in 2025. The committed investment project (a capital increase to Chongqing BOE Display Technology Co., Ltd. and the relevant | |||||||||
BOE Technology Group Co., Ltd. Annual Report 2023
| anticipated income”) | construction) is to be carried out by three phases. Phase I and Phase II have reached the intended targets, and are in the process of continuous production scheduling according to market demand and customer introduction. Phase III equipment have been delayed to varying degrees in terms of equipment transport, move-in and debugging due to the market environment and other external reasons. It is expected that Phase III will be fully put into mass production in 2024 by actively installing and debugging equipment. |
| Notes of condition of significant changes occurred in project feasibility | N/A |
| Amount, usage and schedule of super raise fund | N/A |
| Changes in implementation address of investment project | N/A |
| Adjustment of implementation mode of investment project | N/A |
| Advance investments in projects financed with raised funds and swaps of such advance investments with subsequent raised funds | Applicable |
| As at 31 December 2023, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9 billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and the remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds. As at 31 December 2023, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public offering of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited, and RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd. | |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | Applicable |
| As at 31 December 2023, the funds raised through the perpetual bonds have been used up, with a balance of RMB0.7457 million in the raised funds account, which was the interest income generated during the deposit period. | |
| Usage and destination of unused funds | There is a balance of RMB0.7457 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the bonds. |
| Problems incurred in fund using and disclosure or other condition | N/A |
BOE Technology Group Co., Ltd. Annual Report 2023
(3) Re-purposed Raised Funds? Applicable □ Not applicable
Unit: RMB’0,000
| Re-purposed project | Former project | Total raised funds to be invested in the re-purposed project (1) | Investment in the Reporting Period | Cumulative investment amount at the period-end (2) | Investment progress as at the period-end (3)＝(2)/(1) | Time when the project is ready for its intended use | Returns derived in the Reporting Period | Meeting the expected returns or not | Significant change to feasibility of the re-purposed project |
| Project of BOE’s 6th new-type semi-conductor display device production line | Project of a capital increase to Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. for the construction of the 12-inch silicon-based OLED project | 100,000 | 100,000 | 100,000 | 100.00% | December2025 | N/A | N/A | No |
| Total | -- | 100,000 | 100,000 | 100,000 | -- | -- | 0 | -- | -- |
| Reasons for change, decision-making process and disclosure of information (project by project) | The change of this raised funds investment project is a prudent judgement based on the actual situation in the implementation of the project and in conjunction with the Company's actual business development needs. As the silicon-based OLED industry is in the early stage of rapid development and technological innovations are surging, the Company has not yet arranged for the launch of Phase II and Phase III of the project based on the consideration of the risk of continuous changes in technological processes and market demand. In order to improve the efficiency of the use of the raised funds, upon prudent study, the Company decided to terminate the raised funds investment in the project of a capital increase to Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. for the construction of the 12-inch silicon-based OLED project. The new investment project will help the Company's high-end display technology achieve industrialisation, enhance the shipment of high-end products, accelerate the implementation of the "Empower IoT with Display" strategy, and consolidate the position in the industry. According to the Proposal on Certain Re-purposed Project Invested with Funds Raised in the 2021 Private Placement of Shares, which has been approved at the 21st Meeting of the 10th Board of Directors and the 7th Meeting of the 10th Supervisory Committee on 30 October 2023, as well as at the Second Extraordinary General Meeting of Shareholders in 2023 dated 16 November 2023, part of the raised funds would be re-purposed. The re-adjustments have been disclosed in Announcement No. 2023-055 of BOE Technology Group Co., Ltd. on Certain Re-purposed Project Invested with Funds Raised in the 2021 Private Placement of Shares dated 31 October 2023. | ||||||||
| Reasons for not reaching the scheduled progress or expected returns (project by project) | N/A | ||||||||
| Particulars about significant change to feasibility of the re- | No significant change | ||||||||
BOE Technology Group Co., Ltd. Annual Report 2023
purposed project
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable ? Not applicable
IX Main Controlled and Joint Stock Companies? Applicable □ Not applicableMain subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, Production, and sales of semi-conductor display device, complete machine, and relevant products; import and export business and technology consulting of goods. | 3,845,200,000 | 41,380,299,808.00 | 30,214,115,689.00 | 17,443,100,796.00 | 3,919,040,876.00 | 3,418,322,929.00 |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 9,750,000,000 | 27,433,011,295.00 | 16,136,446,581.00 | 18,168,085,482.00 | 803,350,078.00 | 781,812,792.00 |
BOE Technology Group Co., Ltd. Annual Report 2023
| Hefei BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 2,700,000,000 | 16,379,625,158.00 | 10,697,299,783.00 | 5,458,088,809.00 | 851,455,350.00 | 811,325,616.00 |
Subsidiaries obtained or disposed in this Reporting Period? Applicable □ Not applicable
| Name of subsidiary | How the subsidiary was acquired or disposed of | Effects on the overall operations and performance |
| Mianyang BOE Electronic Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Beijing Shiyan Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Wuhan BOE Smart Energy Co., Ltd. | Incorporated with investment | No significant effects |
| BOE Smart Internet Hospital (Chengdu) Co., Ltd. | Incorporated with investment | No significant effects |
| Beijing BOE Shengshi Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. | Business combination not under common control | No significant effects |
| HC SemiTek Corporation and its subsidiaries | Business combination not under common control | No significant effects |
| Suzhou BOE Human Resource Development Co., Ltd. | De-registered | No significant effects |
Information about major majority- and minority-owned subsidiaries:
N/A
X Structured Bodies Controlled by the Company
□ Applicable ? Not applicable
XI ProspectsAs we look ahead to 2024, economic restructuring and industrial chain revamping stand as prevailing trends. The meteoric rise of thedigital economy has expedited the seamless fusion of IoT, generative AI, cloud computing, and big data into niche applications,catalyzing digital transformations across diverse sectors. Going forward, the Company commits to the essence of high-quality growth,striving to achieve substantial qualitative leaps and rational quantitative expansion, thus enhancing operational efficiency, optimizingbusiness operations, and fostering overall high-quality development. The Company plans to concentrate on refining the operationalexcellence of its display business while fortifying the core innovation capabilities to reinforce its comprehensive competitive edge.Leveraging the accrued advantages in display technology – particularly the “display” prowess and associated peripherals – theCompany aims to allocate resources judiciously in pivotal domains. This strategic approach is designed to propel enduring corporategrowth and sustainable advancement.
1. "1+4+N+Ecosystem" business development structure
Display Devices business: The Company will proactively leverage the advantages of the industry leader and continue to spearhead thehealthy development of the industry. Meanwhile, it will focus on optimizing the structure of LCD products and speed up theestablishment of a comprehensive leading position in the innovative application market. It will also accelerate the improvement ofOLED technology strength, continue to optimize product performance, increase the proportion of high-end products, accelerate thedevelopment of new application markets, and further strengthen the competitive edges.IoT Innovation business: The Company will enhance the capabilities of software and hardware integration and system design andintegration, continue to develop strategic customers, and strengthen cooperation with partners within the ecosystem. Also, it will workharder on segment application scenarios of IoT, strengthen the implementation of benchmark projects, develop blockbuster products,enhance brand influence, and accelerate the growth of business scale.Sensor business: The Company will continue to deepen the development of smart screens, MEMS sensors and industrial sensors,among others, as well as focus on breakthroughs in new areas such as glass-based encapsulation, to provide customers with high-performance products and services.MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinateddevelopment of COB and SMD, strengthen the collaboration and integration with upstream and downstream resources, continuouslyenrich the product mix, enhance product competitiveness, expand applications and expedite the development of business landscape.Smart Engineering Medicine business: The Company will continue to deepen the "construction of a closed-loop service system withhealth management as the core, medical engineering products as the traction, and digital hospitals as the support", strengthen its corecapabilities and accelerate its business development.“N” business: Based on the "1+4" network to reach the demand side and the market side, the Company will achieve large-scaleapplication scenarios, continue to deepen its advantageous tracks, accelerate the growth of core capabilities, and speed up theexploration of emerging application markets, thereby ushering in a new era of high quality and high speed growth.“Ecosystem”: The Company will uphold the concept of "in-depth cooperation, collaborative development and value co-creation", fullyintegrate key industrial resources, enhance the overall value creation capability and create a sharing and win-win ecosystem.
2. Digital transformation
With the aim of building "a digital, visible BOE", the Company will promote, in an accurate and in-depth manner, a series of digitaltransformation to further improve operational efficiency and business performance, and boost long-term, stable and high-quality
development.
3. " Carbon Peaking and Carbon Neutrality Goals " task
The Company will deepen the implementation of the concept of green development, and continue to strengthen the efficient andcomprehensive utilization at multiple sources, the integrated management of energy supply, distribution, use and storage, and digitalmanagement capabilities through source decarbonization, process decarbonization, and intelligent carbon management to create a zero-carbon integrated energy service system.XII Communications with the Investment Community such as Researches, Inquiries andInterviews? Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 12 January 2023 | Conference call | By phone | Institution | Crescent Park Management | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2022, Third Quarterly Report 2022, and other materials that had been disclosed to the public. | www.cninfo.com.cn |
| 18 January 2023 | Company Conference Room | On-site visit | Institution | Caitong Securities, Golden Sun Securities | ||
| 19 January 2023 | Conference call | By phone | Institution | Golden Sun Securities, AEGON-INDUSTRIAL Fund | ||
| 19 January 2023 | Conference call | By phone | Institution | JPMorgan Asset Management, Morgan Stanley | ||
| 20 January 2023 | Conference call | By phone | Institution | Guosen Securities, China Southern Asset Management | ||
| 2 February 2023 | Mianyang BOE Optoelectronics Technology Co., Ltd. | On-site visit | Institution | 12 institutions including Golden Sun Securities | Main discussions: 1. Industry and market overview; 2. The Company’s operations; and 3. Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2022, Third Quarterly Report 2022, 2022 Annual Earnings Forecast, and other materials that had been disclosed to the public. | |
| 6 February 2023 | Conference call | By phone | Institution | FengHe Capital | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Interim | |
| 7 February 2023 | Company Conference Room | On-site visit | Institution | Fullgoal Fund, China Merchants Fund, GF Securities, China Galaxy Securities |
| 14 February 2023 | Chengdu BOE Optoelectronics Technology Co., Ltd. | On-site visit | Institution | Seven institutions including Goldman Sachs | Report 2022, Third Quarterly Report 2022, 2022 Annual Earnings Forecast, and other materials that had been disclosed to the public. |
| 21 February 2023 | BOE Technology Innovation Center | On-site visit | Institution | 19 institutions including Funding Capital | Main discussions: 1. Industry and Company overview; and 2. Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2022, Third Quarterly Report 2022, 2022 Annual Earnings Forecast, and other materials that had been disclosed to the public. |
| 22 February 2023 | BOE Technology Innovation Center | On-site visit | Institution | UBS, Korea Investment Management, Franchise Capital, China Pinacle Equity Management | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2022, Third Quarterly Report 2022, 2022 Annual Earnings Forecast, and other materials that had been disclosed to the public. |
| 23 February 2023 | Company Conference Room | By phone | Institution | CITIC Securities, Sequoia Capital, Shibang Fund | |
| 4 April 2023 | http://rs.p5w.net/ | Other | Other | Investors attending BOE's 2022 Annual Results Online Presentation | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2022, and other materials that had been disclosed to the public. |
| 4 April 2023 | Company Conference Room | By phone | Institution | 154 institutions including 3W Fund Management limited | Main discussions: 1. Industry and market overview; 2. The Company’s operations; and 3. Answered questions from investors. Materials provided by the Company: The Company’s Third Quarterly Report 2022, Annual Report 2022, and other materials that had been disclosed to the public. |
| 3 May 2023 | Conference call | By phone | Institution | 139 institutions including FOUNTAIN BRIDGE | Main discussions: 1. Industry and market overview; 2. The Company’s operations; and 3. Answered questions from |
| investors. Materials provided by the Company: The Company’s Annual Report 2022, First Quarterly Report 2023, and other materials that had been disclosed to the public. | |||||
| 19 May 2023 | Chengdu BOE Optoelectronics Technology Co., Ltd., and BOE Chengdu Vehical-Mounted Display Base | On-site visit | Institution | 6 institutions including China Orient Asset Management (International) | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2022, First Quarterly Report 2023, and other materials that had been disclosed to the public. |
| 22 May 2023 | BOE Technology Innovation Center | On-site visit | Institution | BANK NEGARA MALAYSIA, China Asset Management, CITIC Securities | |
| 23 May 2023 | Conference call | By phone | Institution | Tengyue Capital | |
| 26 May 2023 | Chengdu BOE Optoelectronics Technology Co., Ltd. , and BOE Chengdu Vehical-Mounted Display Base | On-site visit | Institution | 7 institutions including Alliancebernstein | |
| 14 June 2023 | Company Conference Room | On-site visit | Institution | Harvest Fund | |
| 26 June 2023 | Company Conference Room | By phone | Institution | Fidelity Management&Research (Hong Kong) Limited | |
| 30 June 2023 | Company Conference Room | On-site visit | Institution | CCB Pension, Harvest Fund, CITIC Asset Management, CITIC Securities | |
| 30 June 2023 | Company Conference Room | By phone | Institution | Yinhua Fund, GF Securities | |
| 5 July 2023 | Company Conference Room | On-site visit | Institution | Gao Yi Asset Management | |
| 12 July 2023 | Company Conference Room | By phone | Institution | Goldman Sachs | |
| 13 July 2023 | Company Conference Room | On-site visit | Institution | New China Asset Management | |
| 14 July 2023 | BOE Technology Innovation Center | On-site visit | Institution | Foresight Fund | |
| 16 July 2023 | Conference call | By phone | Institution | 173 institutions including Aspex Management | Main discussions: 1. Industry and market overview; 2. The Company’s operations; and |
| 3. Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2022, First Quarterly Report 2023, 2023 Interim Earnings Forecast, and other materials that had been disclosed to the public. | |||||
| 17 July 2023 | Company Conference Room | On-site visit | Institution | Huaxi Securities | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2022, First Quarterly Report 2023, 2023 Interim Earnings Forecast, and other materials that had been disclosed to the public. |
| 31 August 2023 | http://rs.p5w.net/ | Other | Other | Investors attending BOE's 2023 Semi-Annual Results Online Presentation | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2023, and other materials that had been disclosed to the public. |
| 31 August 2023 | Conference call | By phone | Institution | 209 institutions including Acuity Knowledge Partners (Hong Kong) Limited | Main discussions: 1. Industry and market overview; 2. The Company’s operating results; 3. The Company’s operating performance; and 4. Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2023, Interim Report 2023, and other materials that had been disclosed to the public. |
| 6 September 2023 | Beijing BOE Display Technology Co., Ltd. | On-site visit | Institution | Guotai Leasing | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2023, Interim Report 2023, and other materials that had been disclosed to the public. |
| 8 September 2023 | Company Conference Room | On-site visit | Institution | China Merchants Fund, GF Securities | |
| 25 October 2023 | Beijing Center and the “EasyIR” | Other | Other | Media and investors | Main discussions: Answered questions from |
| (http://irm.cninfo.com.cn) platform of the Shenzhen Stock Exchange | participating in the "Crossing Growth and Riding the Wind - Collective Exchange Activity" organized by the Shenzhen Stock Exchange | investors. Materials provided by the Company: None. | |||
| 1 November 2023 | Conference call | By phone | Institution | 185 institutions including Allianz Global Investors Asia Pacific Limited | Main discussions: 1. Industry and market overview; 2. The Company’s operating results an performance; and 3. Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2023, Interim Report 2023, Third Quarterly Report 2023, and other materials that had been disclosed to the public. |
| 17 November 2023 | BOE Technology Innovation Center | On-site visit | Institution | Loyal Valley | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2023, Interim Report 2023, Third Quarterly Report 2023, and other materials that had been disclosed to the public. |
| 28 November 2023 | Conference call | By phone | Institution | 252 institutions including Balyasny Asset Management (Hong Kong) Limited | Main discussions: Answered questions from investors. Materials provided by the Company: Announcement on Investment in the Construction of BOE’s 8.6 AMOLED Production Line Project |
| 30 November 2023 | Conference call | By phone | Institution | UG INVESTMENT ADVISERS | Main discussions: Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2023, Interim Report 2023, Third Quarterly Report 2023, and other materials that had been disclosed to the public. |
| 22 December 2023 | BOE Core Comptence Tower | On-site visit | Institution | Shenzhen Hongchou Investment | |
| 27 December 2023 | BOE Core Comptence Tower | On-site visit | Institution | Zhong Ou Asset, Tebon Securities | |
| 28 December 2023 | BOE Core Comptence Tower | On-site visit | Institution | Chang Xin Asset Management |
XIII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”.? Yes □ NoIn adherence to the “investor-centric” ethos of listed entities and to protect the interests of all shareholders, the Company, imbued withconfidence in its future prospects and recognizing its inherent value, released the Action Plan for “Dual Enhancement of Quality andProfitability” on 28 February 2024. This Plan, devised in line with the Company’s overarching strategic blueprint, aims to consistentlybolster its core strengths and elevate both the Company’s quality and investment worth. Here are the specific implementation measures:
1. Pursue the “Core Business Focus and Premium Growth Strategy”
BOE specializes in crafting intelligent interface products and expert services that support information exchange and human wellness,drawing from extensive know-how and practical experience in semiconductor display and IoT sectors. It has innovatively devised the“Empower IoT with Display” strategy, custom-fit for their IoT evolution, giving birth to the “1+4+N+Ecosystem” business model.“1” refers to the semiconductor display business, where the Company solidifies its dominance and maintains a commanding lead. “4”highlights the high-potential IoT-focused sectors, witnessing numerous transformation outcomes and continuous improvement inoperational quality. Meanwhile, “N” represents the array of specialized, niche market segments where the Company diligentlypenetrates and crafts distinctive “specialised, sophisticated, distinctive, and innovative” models.Moving forward, the Company’s multifaceted business strategies will consistently be guided by “Empower IoT with Display”,leveraging the “1+4+N+Ecosystem” model for growth. We will remain steadfast in focusing on our core business, aiming to maximizeresource recycling and drive premium business development, thereby generating excellent shareholder returns.
2. Uphold “Innovation as the Prime Mover”
The Company consistently prioritizes technology and innovation, consistently dedicating approximately 7% of its annual revenue toR&D, with 1.5% allocated specifically to fundamental and frontier tech exploration. As a result, it has emerged as a global front-runnerin semiconductor display R&D investment, establishing a firm groundwork for industry-leading innovation and technologicalsuperiority. Moreover, the Company persistently reinforces its portfolio of high-quality patents. By 2023, it had cumulatively lodgedover 90,000 independent patent applications, with more than 90% of new annual filings being invention patents. More than one-thirdof these patents were filed internationally, extending coverage to the U.S., Europe, Japan, South Korea, and other territories acrossdiverse sectors such as flexible OLED, sensing, AI, big data, etc. The Company now possesses over 40,000 valid patents globally.Furthermore, for six consecutive years, the Company has featured among the global Top 20 Organizations Granted US Patent.Moreover, to maintain its technological edge, the Company has built a technology architecture of “Empower IoT with Display” that issuitable for the transformation and development of its IoT, including device layer, terminal layer, platform layer, and application layer.With a systematic technological innovation capability that integrates software and hardware, provides key support for the valueextension of its “device - terminal - scenario”. Furthermore, it proactively constructs three core technology pillars—semiconductordisplay, IoT innovation, and sensor devices—and collaborates with partners on key research to hasten the IoT transformation journey.In the future, the Company will persistently uphold “innovation as the primary driver,” ensuring targeted resource investments in keysectors. It will further intensify collaboration among industry, academia, and research institutions to facilitate tackling core technologies,thereby steadily enhancing its own technological competitiveness.
3. Maintain “Ethical and Top-Quality Corporate Governance”
To comply with reforms on independent directors, the Company has aligned with recently updated legal and regulatory frameworks,such as the Revised Guidelines for Articles of Association of Listed Companies, Management Measure for Independent Directors ofListed Companies, and Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation ofListed Companies-Compliance in Operation of Main Board Listed Companies, to revise its Articles of Association. In response tostrategic growth needs, the Company has modified ten governance systems, including the Articles of Association and annexes,Independent Director System, and the Structure and Procedures of the Board’s Risk Control and Audit Committees. These amendments,
including the Articles and annexes pending the 2023 AGM’s review and approval for implementation, aim to refine internal controlsand significantly elevate the standardization of the Company’s operations.To protect the rights and interests of independent directors and provide better conditions for independent directors to perform theirduties, the Company has set up an allowance for independent directors; actively promoted the participation of independent directors inthe prior communication meetings of major projects and assisted independent directors to participate in the preliminary research anddemonstration of major projects in advance; and continued to optimize the way of independent directors’ performance of their dutiesby carrying out on-site research and visits to production lines. The Company continues to provide better conditions for independentdirectors to perform their duties in terms of resources, information and funding, and to improve the guarantee mechanism forindependent directors to perform their duties.The Company will abide by the principles of “integrity, standardisation, transparency, and responsibility”, regulate itself andcontinuously improve the level of governance to robustly safeguard shareholders’ rights and interests. The management commits toboosting operational and managerial proficiency, continuously enhancing the Company’s core competitiveness, profitability, andoverall risk management capacity, aiming to reward investors and drive the Company’s high-quality growth.
4. Conduct transparent and efficient information disclosure
By 2023, the Company has achieved eight straight years of Grade A ratings for information disclosure by the Shenzhen Stock Exchange.Upholding strict adherence to legal and regulatory requirements, the Company abides by the “accuracy, completeness, and truthfulness”principle in disclosing information, catering to investor needs and actively fulfilling social responsibilities. Having published a socialresponsibility report (sustainability report) for 14 straight years, the Company bolsters information disclosure transparency. Movingforward, it will further enhance disclosure quality, effectively communicate corporate value, and strive to provide a sound basis forinvestors’ valuation judgments and interest protection.
5. Contributie to “Coexistence and Win-Win with Investors”
The Company persists in showing gratitude to shareholders for their long-standing support through consistent share repurchases andcash dividends. Over the period 2015-2023, it has distributed cash dividends for nine consecutive years, totaling over RMB20 billion,maintaining an annual cash dividend payout ratio above 30% of the parent company’s net profits since 2018. This ensures investorsbenefit from the Company’s growth achievements.In 2023, the Company planned to distribute a cash dividend of RMB1.13 billion, representing 44.34% of the net profits attributable tothe parent company in the consolidated financial statements.Furthermore, between 2020 and 2022, the Company conducted share repurchases for three straight years, spending over RMB4.6billion cumulatively on A-share repurchases and nearly HKD1 billion on B-share repurchases. In 2023, the Company retired around500 million repurchased shares, reducing its registered capital to heighten earnings per share.The Company persists in a proactive, professional, and diverse approach to investor relations management. For institutional investors,it maintains close ties with the market through regular engagement in institutional research, attendance at brokerage strategyconferences, and hosting institutional roadshows. For small and medium-sized investors, the Company capitalizes on various platforms,including Shareholders’ General Meetings, online result presentations, Shenzhen Stock Exchange’s e-interaction platform, investorhotlines, and email services, to engage actively and respond to queries, gather feedback, and facilitate rights exercise.
Part IV Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting PeriodThe Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance forListed Companies, etc., and requirements of Stock Listing Rules of the Shenzhen Stock Exchange, Guidelines of the Main-Board forthe Standardized Operation of Companies, to continuously improve the corporate governance of the Company, to perfect internalcontrol system as well as to promote corporate governance level of the Company.During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with therequirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectivenessof corporate governance. During the Reporting Period, the Company revised the Articles of Association and continued to promote theCompany’s governance in many ways. Actively arranged the Company's directors, supervisors to join special training organized bythe Securities regulatory bureau of Beijing, and organized on-site research for independent directors. The Company kept regularly self-inspection of the related party fund transaction, external guarantee as well as the shareholding and its changes of the directors,supervisors and senior executives, and strengthened the communication of the investors through the Shenzhen Stock ExchangeInvestors Interactive Platform.In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliancewith various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the concept of“honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and regulations.The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile, on the basis ofensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet voting forminority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevantlaws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and nobehaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulationsand the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They allperformed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept aconstant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They alsotook the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of Associationand Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors, namely, the
Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit Committee. TheCompany also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of dutyperformance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevantmatters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior managementstaffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rightsof the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance withthe Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’sactivities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Main-Board for theStandardized Operation of Companies, the Articles of Association and Management Methods for Information Disclosure and otherrequirements, the Company disclosed information in a timely and fair manner and ensured the factuality, accuracy and completenessof the information disclosed.The Company highly values investor relations and has set up a specialized investor relations team to consistently execute investorrelations functions with proactive, professional, and diverse strategies.For institutional investors, the Company maintains effective communication channels with diverse types, ensuring persistent marketvisibility. It offers top-notch service through institutional surveys, brokerage strategy sessions, and organized roadshows for institutions.In terms of serving small and medium-sized investors, the Company consistently prioritizes their service and upholds equal treatment.It maintains active interaction and communication with medium and small investors by means of shareholder meetings, onlineperformance presentations, the Shenzhen Stock Exchange’s platform, investor hotlines and investor mailboxes, answers their questions,heeds their suggestions, and facilitates the exercise of their rights. The Company aims to promote the open, transparent, efficient andconsistent communication between the Company, investors and analyst of securities, made them known more about the developmentstrategy, operation conditions and technical achievements of the Company.Meanwhile, the Company has joined hands with a third-party professional IR service agency to conduct investor relations activities viathe digitao platform, which makes the communication become more convenient between the investor and the Company and ensuresthe compliance and fairness of the investor relations activities.In terms of investor protection, the Company actively responds to the call of the Securities and Futures Commission, the StockExchange and the China Association for Public Companies, and utilizes a blend of online and offline approaches to conduct investoreducation initiatives, consistently enhancing investors’ investment literacy. Key emphasis is placed on fully implementing theregistration system, promoting wise investment decisions, and embodying the social responsibility of listed corporations.Indicate by tick mark whether there is any material in-compliance with laws, administrative regulations and the regulatory documentsissued by the CSRC governing the governance of listed companies.
□ Yes ? No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller inBusiness, Personnel, Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production andbusiness departments and management system, the Company had the capability to make its own decisions, assume sole responsibilityfor its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operatingmanagement team. Chief of Executive Committee, President, Chief Financial Officer, Secretary of the Board as well as other seniormanagement staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive anyremuneration in the controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently ownedthe production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like land userights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any assets of theCompany.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and theactual controller, with independent and sound organs and corporate governance structure. The Company had not handled any officialaffairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the controllingshareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company hadalso formulated a standard and independent finance accounting system as well as financial measurement system, established thecorporate financial management archives and deployed relevant administrative personnel for them, opened independent account inbank, and paid tax independently.III Horizontal Competition
□ Applicable ? Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Meeting resolutions |
| The 2022 Annual General Meeting | Annual General Meeting | 23.11% | 5 May 2023 | 6 May 2023 | The following reports and proposals were deliberated and approved, i.e., Report on the Work of the Board of Directors for 2022, Report on the Work of the Board of Supervisors for 2022, Full Annual Report and Summary for 2022, Financial Final Report for 2022 and Business Plan for 2023, Proposal for the Distribution of Profits for 2022, the Proposal on Borrowing and Credit Line, the Proposal on the Development of Structured Deposits and Other Principal-protected Business, the Proposal on the Appointment of an Audit Agency for 2023, the Proposal on the Repurchase and Retirement of Certain Restricted Shares |
| The 1st Extraordinar | Extraordinary | 24.73% | 14 August 2023 | 15 August 2023 | The following proposals were deliberated and approved: the Proposal |
| y General Meeting of 2023 | General Meeting | on Election of Non-Independent Directors of the 10th Board of Directors, the Proposal on the Retirement of Certain Treasury Stocks in the Special Repurchase Securities Account | |||
| The 2nd Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 26.47% | 16 November 2023 | 17 November 2023 | The following proposals were deliberated and approved: the Proposal on the Change in Some Fundraising Projects of the 2021 Private Equity Offering, the Proposal on the Repurchase and Retirement of Certain Restricted Shares |
| The 3rd Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 26.87% | 14 December 2023 | 15 December 2023 | The following proposals were deliberated and approved: the Proposal on the Investment for the Development of the Project of the Production Lines of the 8.6th Generation AMOLED, the Proposal on Changing the Usage of Repurchased Shares and Retirement |
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with ResumedVoting Rights
□ Applicable ? Not applicable
V Directors, Supervisors and Senior Management
1. Basic Information
| Name | Gender | Age | Office title | Incumbent/Former | Start of tenure | End of tenure | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Other increase/decrease (share) | Ending shareholding (share) | Reason for change |
| Chen Yanshun | Male | 58 | Chairman of the Board | Incumbent | 28 June 2019 | 27 April 2025 | 2,900,000 | 0 | 0 | 0 | 2,900,000 | N/A |
| Chairman of the Executive Committee | Incumbent | 20 May 2016 | 27 April 2025 | |||||||||
| Gao Wenbao | Male | 48 | Director | Incumbent | 28 June 2019 | 27 April 2025 | 1,860,700 | 0 | 0 | 0 | 1,860,700 | N/A |
| President, and Vice Chairman of the Executive Committee | Incumbent | 28 April 2022 | 27 April 2025 | |||||||||
| Wu Lishun | Male | 48 | Director | Incumbent | 14 August 2023 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Ye Feng | Male | 58 | Director | Incumbent | 14 December 2021 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Tang Shoulian | Male | 71 | Independent director | Incumbent | 30 May 2020 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Zhang Xinmin | Male | 61 | Independent director | Incumbent | 18 May 2021 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Guo He | Male | 61 | Independent director | Incumbent | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Duoxiang | Male | 54 | Independent director | Incumbent | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Jin | Female | 48 | Chairman of the Supervisory Committee | Incumbent | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Fuqing | Male | 50 | Supervisor | Incumbent | 14 December 2021 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Shi Xiaodon | Male | 49 | Supervisor | Incumbent | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| g | ||||||||||||
| Xu Jinghe | Female | 40 | Supervisor | Incumbent | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Yan Jun | Male | 52 | Employee Supervisor | Incumbent | 28 June 2019 | 27 April 2025 | 32,000 | 0 | 0 | 0 | 32,000 | N/A |
| Xu Yangping | Male | 49 | Employee Supervisor | Incumbent | 10 July 2013 | 27 April 2025 | 35,000 | 0 | 0 | 0 | 35,000 | N/A |
| Teng Jiao | Male | 41 | Employee Supervisor | Incumbent | 28 June 2019 | 27 April 2025 | 55,200 | 0 | 0 | 0 | 55,200 | N/A |
| Liu Xiaodong | Male | 59 | Vice Chairman of the Board | Former | 28 June 2019 | 12 March 2024 | 2,480,000 | 0 | 0 | 0 | 2,480,000 | N/A |
| Member of the Executive Committee | Incumbent | 28 April 2022 | 27 April 2025 | |||||||||
| Sun Yun | Female | 54 | Director | Former | 9 June 2017 | 12 March 2024 | 1,989,481 | 0 | 0 | 0 | 1,989,481 | N/A |
| Member of the Executive Committee, and Executive Vice President | Incumbent | 26 December 2014 | 27 April 2025 | |||||||||
| Feng Qiang | Male | 47 | Member of the Executive Committee, and Executive Vice President | Incumbent | 31 March 2023 | 27 April 2025 | 975,700 | 0 | 0 | 0 | 975,700 | N/A |
| Wang Xiping | Male | 45 | Member of the Executive Committee, and Executive Vice President | Incumbent | 28 April 2022 | 27 April 2025 | 852,400 | 0 | 0 | 0 | 852,400 | N/A |
| Feng Liqiong | Female | 51 | Member of the Executive Committee, and Executive Vice President | Incumbent | 28 June 2019 | 27 April 2025 | 1,360,000 | 0 | 0 | 0 | 1,360,000 | N/A |
| Lead Counsel | Incumbent | 22 August 2007 | 27 April 2025 | |||||||||
| Zhang Yu | Male | 53 | Member of the Executive Committee, and Executive Vice President | Incumbent | 28 April 2022 | 27 April 2025 | 751,600 | 0 | 0 | 0 | 751,600 | N/A |
| Yang Xiaoping | Female | 44 | Member of the Executive Committee, and Executive Vice President | Incumbent | 31 March 2023 | 27 April 2025 | 742,300 | 0 | 0 | 0 | 742,300 | N/A |
| Chief Financial Officer | Incumbent | 28 April 2022 | 27 April 2025 | |||||||||
| Guo | Male | 46 | Senior Vice President, | Incum | 31 March 2023 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Huaping | Chief Culture Officer | bent | ||||||||||
| Yue Zhanqiu | Male | 56 | Senior Vice President, Chief Audit Officer | Incumbent | 28 April 2023 | 27 April 2025 | 553,440 | 0 | 0 | 0 | 553,440 | N/A |
| Liu Hongfeng | Male | 45 | Vice President | Incumbent | 20 May 2016 | 27 April 2025 | 1,024,500 | 0 | 0 | 0 | 1,024,500 | N/A |
| Board Secretary | Incumbent | 10 July 2013 | 27 April 2025 | |||||||||
| Pan Jinfeng | Male | 44 | Vice Chairman of the Board | Former | 28 June 2019 | 23 January 2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Miao Chuanbin | Male | 50 | Senior management | Former | 28 June 2019 | 1 March 2023 | 758,800 | 0 | 0 | -650,000 | 108,800 | The Company repurchased and deregistered the restricted shares held by him in accordance with the 2020 Stock Option and Restricted Share Incentive Plan (Draft). |
| Xie Zhongdong | Male | 53 | Senior management | Former | 22 April 2011 | 31 March 2023 | 1,057,000 | 0 | 0 | -750,000 | 307,000 | The Company repurchased and deregistered the restricted shares held by him in accordance with the 2020 Stock Option and Restricted Share Incentive Plan (Draft). |
| Total | -- | -- | -- | -- | -- | -- | 17,428,121 | 0 | 0 | -1,400,000 | 16,028,121 | -- |
Note: On 31 March 2023, the Board of Directors engaged Mr. Feng Qiang and Mr. Guo Huaping as senior management of the Company; on 28 April 2023, the Board of Directors engaged Mr.Yue Zhanqiu as senior management of the Company. Thus, the beginning shareholding of Mr. Feng Qiang, Mr. Guo Huaping and Mr. Yue Zhanqiu shall be filled in with the number of shares heldon the date of appointment
Indicate by tick mark whether any director, supervisor or senior management resigned before the expiry of their office terms during the Reporting Period.? Yes □ No
1. On 1 March 2023, the Board of Directors of the Company acknowledged Mr. Miao Chuanbin’s resignation as Senior VP & Chief Cultural Officer due to a job change. Following his departure,he will not hold any positions within the Company.
2. On 31 March 2023, the Board of Directors of the Company acknowledged Mr. Xie Zhongdong’s resignation as Senior VP, Chief Audit Officer, and Chief Risk Control Officer due to personalreasons. Following his departure, he will not hold any positions within the Company.
3. On 12 March 2024, the Board of Directors of the Company accepted written resignations from Mr. Liu Xiaodong, Vice Chairman, and Ms. Sun Yun, Director. Due to his advancing age, Mr.Liu Xiaodong resigned from his roles as Director, Vice Chairman, and Special Committee member, yet will remain part of the Executive Committee following his resignation. Meanwhile, Ms.Sun Yun stepped down as Director and Special Committee member but will continue as an Executive Committee member and Executive Vice President following her resignation.
Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Miao Chuanbin | Senior management | Dismissed | 1 March 2023 | Resigned voluntarily |
| Xie Zhongdong | Senior management | Dismissed | 31 March 2023 | Resigned voluntarily |
| Feng Qiang | Senior management | Appointed | 31 March 2023 | Appointed |
| Guo Huaping | Senior management | Appointed | 31 March 2023 | Appointed |
| Yue Zhanqiu | Senior management | Appointed | 28 April 2023 | Appointed |
| Wu Lishun | Director | Elected | 14 August 2023 | Elected |
| Pan Jinfeng | Vice Chairman of the Board | Resigned | 23 January 2024 | Resigned voluntarily |
| Liu Xiaodong | Vice Chairman of the Board | Resigned | 12 March 2024 | Resigned voluntarily |
| Sun Yun | Director | Resigned | 12 March 2024 | Resigned voluntarily |
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and seniormanagementDirectors:
Mr. Chen Yanshun, Master of Economics, Senior Economist, and Senior Accountant. Joining the Company in 1993, he used to beSecretary to the 1st Board of Directors of the Company, Secretary to the 2nd Board of Directors and Vice President, Executive Directorof the 3rd Board of Directors and Senior Vice President, Executive Director of the 4th, 5th and 6th Boards of Directors and President,Vice Chairman of the 7th Board of Directors and President, Vice Chairman of the 8th Board of Directors and Chairman of the ExecutiveCommittee (Chief Executive Officer), and Chairman of the 9th Board of Directors and Chairman of the Executive Committee. Also,he once was Chairman of the Board for a number of subsidiaries including Beijing BOE Optoelectronics Technology Co., Ltd., HefeiBOE Optoelectronics Technology Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., and BOE Smart Technology Co.,Ltd.Currently, he serves as Chairman of the 10th Board of Directors and Chairman of the Executive Committee of the Company. He is alsoChairman of the Board for BOE Optoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd. Meanwhile, he is alsoVice Chairman of China Information Technology Industry Federation (CITIF), Vice Chairman of China Optics & OptoelectronicsManufactures Association (COEMA), Chairman of China Optics & Optoelectronics Manufactures Association LCB (CODA). He hasbeen awarded as National Model Worker in 2020, the Economic Figure of the Year by China News Weekly in 2021, and David SarnoffIndustry Achievement Award in 2024.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003.He is currently Director of the 10th Board of Directors, President, Vice Chairman of the Executive Committee, in addition to beingExecutive Director and Chairman of the Board of Directors of BOE Varitronix Limited, and Chairman of the Board of BeijingZhongxiangying Technology Co., Ltd.
Mr. Wu Lishun, Master of Business Administration, graduated from the Joint Program in Business Administration offered by theUniversity of International Business and Economics and the University of Maryland, USA. Mr. Wu was a Consultant and Manager ofKPMG Huazhen, Senior Manager and Business Director of Beijing Dayue Consulting Company, Deputy Manager of the Planning andFinance Department, Deputy Manager of the Financing and Planning Department (presiding over the work), and Manager of theFinancing and Planning Department of Beijing Infrastructure Investment Co., Ltd., Deputy General Manager of Beijing Capital GroupCo., Ltd., Member of the Party Committee and Deputy General Manager of Beijing Capital Group Co., Ltd., Member of the Party
Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of People’s Government ofBeijing Municipality, Deputy Secretary of the Party Committee, Director and General Manager of Beijing State-owned CapitalOperation and Management Company Limited.He is currently a director of the Tenth Session of the Board of Directors of the Company, Secretary of the Party Committee andChairman of the Board of Directors of Beijing State-owned Capital Operation and Management Company Limited, Chairman of theBoard of Directors of First Capital Securities Co., Ltd., and a director of Shoucheng Holdings Limited.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong Machinery Factory,a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice President of BeijingBeiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of Beijing Dahua RadioInstrument Company, Ltd., and Director of the 9th Board of Directors of the Company.He is currently a Director of the 10th Board of Directors, a full-time Director assigned by Beijing Electronic Holding Co., Ltd., aDirector of Beijing Zhaowei Electronics (Group) Co., Ltd., and a Director of NAURA Technology Group.
Mr. Tang Shoulian, professor, holds a master's degree. He used to be Director of Finance Office, Dean of School of Management andHumanities, Secretary of Party Committee of School of Economics and Management, Executive Dean of School of Economics andManagement, and Standing Committee of Academic Committee and Chairman of Labor Dispute Mediation Committee of BeijingUniversity of Posts and Telecommunications (BUPT), and Independent Director of the 9th Board of Directors of the Company. He hasserved as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry and InformationTechnology, a permanent member of the Chinese Association of Market Development, a standing member of the Information LawResearch Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, a standing member ofthe Commerce Statistical Society of China, and a reviewer of the Management Science Department of the National Natural ScienceFoundation of China.He is currently an Independent Director of the 10th Board of Directors of the Company.
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of the Universityof International Business and Economics, a member of CPC's Standing Committee and Vice President of the University of InternationalBusiness and Economics, and Independent Director of the 9th Board of Directors of the Company.He is currently an Independent Director of the 10th Board of Directors of the Company, an Independent Director of MinmetalsDevelopment Co., Ltd., an Independent Director of COFCO Capital Holdings Co., Ltd., an Independent Director of China MehecoGroup Co., Ltd., an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoral supervisor ofthe International Business School at the University of International Business and Economics, a member of the Business AdministrationDiscipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the China CommercialAccounting Institute, Vice President of Banking Accounting Society of China, and a recipient who enjoys special allowance from theState Council.
Mr. Guo He, a professor and PhD supervisor at the School of Law / School of Intellectual Property of Renmin University of China.He currently serves as an Independent Director of the 10th Board of Directors of the Company. He also serves as the Vice Presidentand Secretary General of the Intellectual Property Law Research Association of the China Law Society, the Vice Chairman of theChina Intellectual Property Research Association, and the Vice President of China Written Works Copyright Society.
Mr. Wang Duoxiang, Doctor of Management, is a researcher and doctoral supervisor at the School of Engineering, Peking University.
He was the General Manager of Xiamen PKU Taipu Pharmaceutical Co., Ltd., Chairman of Xiamen Tobefar Technology Co., Ltd.,the Deputy Director of the College of Engineering of Peking University, the Deputy Mayor of Baotou Municipal People's Governmentof Inner Mongolia and the Vice President of Southern University of Science and Technology.He currently serves as an Independent Director of the 10th Board of Directors of the Company, a researcher of the College ofEngineering of Peking University, Director of the Beijing Institute of Collaborative Innovation, Director of the Beijing-Tianjin-HebeiNational Technology Innovation Centre, and Director of the China Research Centre for Industry-University-Research IntegrationInnovation System.
Supervisors:
Ms. Wang Jin, Doctor of Laws, a senior economist. She was the Deputy General Manager of the Legal and Risk ManagementDepartment, the Deputy General Manager of the Legal Department and the Deputy General Manager of the Corporate DevelopmentDepartment/Legal Department of Beijing Branch of China United Network Communications Group Co., Ltd.She currently serves as the Chairman of the 10th Supervisory Committee of the Company and the general counsel of Beijing ElectronicsHoldings Co., Ltd. She is concurrently the Chairman of the Supervisory Committee of NAURA Technology Group Co., Ltd., Directorof Beijing Yiheng Electronics Group Co., Ltd., Director of Beijing ether Electronics Group Co., Ltd. and Director of Beijing QixingHuadian Technology Group Co., Ltd.
Mr. Sun Fuqing, Master of Engineering, Senior Accountant. He was formerly Assistant Financial Manager of Beijing C & WElectronics (Group) Co., Ltd., Manager of Finance Department of Beijing Tianlong Co., Ltd., Deputy Chief of Finance Department ofBeijing Electronics Holding Co., Ltd., Vice Dean of Beijing Information Technology College, CFO of Beijing Dahua Radio InstrumentFactory, Deputy Party Secretary, Director and General Manager of Beijing Yiheng Electron Group Co., Ltd., Deputy Director ofAdjustment Guarantee Center of Beijing Electronics Holding Co., Ltd., and Supervisor of the 9th Supervisory Committee of theCompany.He is currently a Supervisor of the 10th Supervisory Committee of the Company, Chief Controller of Financial ManagementDepartment of Beijing Electronics Holdings Limited, and is also a Director of NAURA Technology Group Co., Ltd. and BeijingElectric Control Jiuyi Industrial Development Company Limited, Chairman and General Manager of Beijing BOE InvestmentDevelopment Company Limited, and a Director of Beijing Capitel Co., Ltd.
Mr. Shi Xiaodong, MBA, a senior economist. He was a personnel specialist at Beijing Panasonic Control Devices Co., Ltd., theManager of the Human Resources Department of CITIC Guoan Shihua International Financial Information Co., Ltd., the ManagementConsultant of Bosizhilian Management Consultant Co., Ltd., the Manager of the Corporate Management Department, the Manager ofthe Human Resources Department, the Assistant General Manager and Deputy General Manager of Zhaowei Technology Co., Ltd.,the Executive Vice President of Beijing Zhaowei Electronics (Group) Co., Ltd. and the Secretary of the Party Branch and the DeputyGeneral Manager and Chairman of the Trade Union of Beijing Electric Control Aisikai Technology Co., Ltd.He is currently a Supervisor of the 10th Supervisory Committee of the Company and the Director of the Operation and ManagementDepartment of Beijing Electronics Holdings Co., Ltd. He is also Director of Beijing ether Electronics Group Co., Ltd., Director ofBeijing Jingdian Import & Export Company Co. Ltd., Director of Beijing Qixing Huadian Technology Group Co., Ltd., Director ofBeijing Zhengdong Electronic Power Group Co., Ltd., and Director of Beijing Industrial Design Research Institute Co., Ltd.
Ms. Xu Jinghe, Master of Science in Management, Certified Management Accountant (USA), with the professional qualification ofthe Certified Public Accountant (China).She currently serves as a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Investmentand Development Department of Beijing Yizhuang Investment Holding Co., Ltd.
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister ofCorporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd.,Deputy Director of General Office of the Group, and Employee Supervisor of the 9th Supervisory Committee of the Company.Now he acts as the Employee Supervisor of the 10th Supervisory Committee, Deputy Head of Party Mass/Corporate Culture Center inthe Company.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s LegalDepartment, and Employee Supervisor of the 7th, 8th and 9th Supervisory Committees of the Company, Director of Erdos BOE EnergyInvestment Co., Ltd., and Supervisor of BOE Innovation Investment Co., Ltd.,.Now he acts as Employee Supervisor of the 10th Supervisory Committee and Counsel of the Company, and Chief of the Group’s LegalCenter, in addition to being Director of Gaochuang (Suzhou) Electronics Co., Ltd, Beijing BOE Energy Technology Co., Ltd., NanjingBOE Display Technology Co., Ltd., BEHC Industrial Investment Co., Ltd., Supervisor of Tianjin BOE Innovation InvestmentManagement Co., Ltd., BOE Smart Technology Co., Ltd., BOE Jingxin Technology Co., Ltd., and Hefei BOE Ruisheng TechnologyCo., Ltd., among others.
Mr. Teng Jiao, bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department, Minister ofPerformance Analysis and Head of the Taxation Center of the Company and Minister of Accounting Department of Beijing BOEDisplay Technology Co., Ltd., Director of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd.,Beijing BOE Health Technology Co., Ltd. and Hefei BOE Hospital Co., Ltd., Supervisor of Beijing BOE CHATANI ElectronicsCo.,Ltd. and Nanjing BOE Information Technology Co., Ltd., as well as Employee Supervisor of the 9th Supervisory Committee ofthe Company.Now, he acts as the Employee Supervisor of the 10th Supervisory Committee, VCFO, and Head of the Capital Management Center ofthe Company, in addition to being Director of Beijing BOE Vacuum Electric Co., Ltd., Director of Beijing BOE Matsushita Color CRTInnovation Co., Ltd., Chengdu BOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou) Electronics Co., Ltd.,BOE Optical Science and Technology Co., Ltd., BOE Environmental Energy Technology Co., Ltd. and BOE Innovation InvestmentCo., Ltd.
Senior Management:
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. Hesuccessively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co., Ltd.,Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE Vision-electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Deputy Chairman of theBoard of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of TPV Display Technology (China) Limited, Fuzhou BOEOptoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd., and BOE Health Investment Management Co., Ltd.,Chairman of the Board of Beijing BOE Sensor Technology Co., Ltd., Director of the 7th Board of Directors of the Company, ExecutiveVice President and COO of the Company, Director of the 8th Board of Directors, Vice Chairman of the Executive Committee, President& COO of the Company, as well as Vice Chairman of the 9th Board of Directors, President, Vice Chairman of the Executive Committee,and Vice Chairman of the 10th Board of Director of the Company.Now he takes the posts of a member of the Executive Committee of the Company, Chairman of Mianyang BOE OptoelectronicsTechnology Co., Ltd., Chongqing BOE Display Technology Co., Ltd., Wuhan BOE Optoelectronics Technology Co., Ltd., YunnanChuangshijie Optoelectronics Technology Co., Ltd., and Fuzhou BOE Display Technology Co., Ltd., Executive Director of Beijing
BOE Technology Development Co., Ltd., Director of Hefei BOE Display Technology Co., Ltd., Chairman of the Board of BeijingBOE Chuangyuan Technology Co., Ltd., and Chairman of the Board of Chengdu BOE Display Technology Co., Ltd.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance Departmentof the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8th Board of Directors of the Company,Director of the 9th Board of Directors, CFO and Director of the 10th Board of Directors of the Company, Director of Erdos YuanshengOptoelectronics Co., Ltd., Beijing BOE Video Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd.,BOE Health Investment Management Co., Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd. and Supervisor of BeijingOrient Vacuum Electric Co., Ltd.Now she is Member of the Executive Committee, and Executive Vice President of the Company, in addition to being Director ofBeijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Chairman of the Board of BOE Innovation InvestmentCo., Ltd.
Mr. Feng Qiang, Master of Executive Master of Business Administration, Master of Engineering, and Engineer. Joining the Companyin 1998, he used to be the vice general manager and general manager of the Company’s Science Park Business Headquarters, vicepresident of the Company, Chairman of the Board of BOE Regenerative Medical Technologies Co. Ltd., executive director & executivevice general manager of Beijing BOE Land Co., Ltd., executive director & executive vice general manager and general manager ofBeijing Yinghe Century Land Co., Ltd., general manager of Beijing Matsushita Color CRT Co., Ltd., Co-CEO of the Smart HealthcareService BG, and Chairman of the Board & CEO of the Smart Medicine and Engineering Business.Now he is a member of the Executive Committee, executive vice president and Chief Human Resource Officer of the Company,Chairman of the Board of Beijing BOE Life Technology Co., Ltd., Chairman of the Board of Beijing BOE Land Co., Ltd., Chairmanof the Board of Beijing Yinghe Century Land Co., Ltd., and Chairman of the Board of Beijing BOE Songcai Innovation Co., Ltd.,Director of Chongqing BOE Smart Technology Co., Ltd., Shenzhen BOE Smart Technology Co., Ltd. and Chengdu BOE SmartTechnology Co., Ltd.
Mr. Wang Xiping, with a Bachelor's degree, was the Manager of Nanjing Hanyu Caixin Technology Co., Ltd. He served as the Headof the Company's Production Management Centre, the General Manager of Hefei Xinsheng Optoelectronics Technology Co., Ltd. andthe General Manager, Display Business Co-CEO and Chief Procurement Officer of Wuhan BOE Optoelectronics Technology Co., Ltd.He is currently a member of the Executive Committee and an Executive Vice President of the Company, the Head of the DisplayDevices and IoT Innovation Business Centre, the Chairman of BOE Environmental Energy Technology Co., Ltd., and Director of BOEInnovation Investment Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of LegalAffairs Department of the Company, and as Secretary of the 5th and 6th Board of Directors.Now she is member of Executive Committee, Executive Vice President, Chief Counsel, Chief Reform and IT Management Officer andDirector of Beijing BOE Land Co., Ltd. and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,General Manager of Hefei Office, Supervisor of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Hefei XinjingyuanElectronic Materials Co., Ltd.and Hefei BOE Optoelectronics Technology Co., Ltd.He is currently a member of the Executive Committee, Executive Vice President, Chairman of the Board & CEO of the Smart Medicineand Engineering Business. He was awarded the "National Model Worker" in 2020.
Ms. Yang Xiaoping, with a Master's degree, was the Deputy Director and Director of the Accounting and Finance Department of theCompany, the Centre Director of the Accounting and Taxation Centre, the Center Director of the Budget Center and the VCFO of theGroup.She is currently a member of the Executive Committee, Executive Vice President, and the Chief Financial Officer of the Company andthe Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd.,Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOE Display Technology Co., Ltd., Director ofHefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Chongqing BOE Optoelectronics Technology Co., Ltd., Director ofFuzhou BOE Optoelectronics Technology Co., Ltd. and Director of Wuhan BOE Optoelectronics Technology Co., Ltd.
Mr. Guo Huaping, holds a master’s degree. He once worked as the vice general manager of Beijing 798 Cultural Creative IndustryInvestment Co., Ltd., Deputy Secretary of the CPC Committee of Beijing Jile Electronics Group Co., Ltd., the minister of the CPCPublicity Department/Corporate Culture Department of Beijing Electronics Holdings Co., Ltd. and general manager of Beijing JingdianImport and Export Co., Ltd.Now, he is the senior vice president, CCO and leader of Labor Union of the Company.
Mr. Yue Zhanqiu, holding a Master’s degree and certified as a Senior Accountant, has served as the Chief of Finance Section andChief Accountant of the Power Division of the Company, Finance Manager of Beijing Huamin Smart Card System Manufacturing Co.,Ltd., CFO of Beijing Sevenstar Science & Technology Co., Ltd., CFO and Board Secretary of Beijing Sevenstar Electronics Co., Ltd.,CFO, Deputy General Manager, and General Manager of Beijing Oriental Optoelectronics Technology Co., Ltd., as well as VCFO,Chief Information Officer, and Chief Operating Officer of Beijing BOE Optoelectronics Technology Co., Ltd., VCFO and CIO of theCompany, and COO of BOE Innovation Investment Co., Ltd.Currently, he serves as Senior Vice President and Chief Audit Officer of the Company, Supervisor of HC Semitek Corporation,Supervisor of Chengdu BOE Optoelectronics Technology Co., Ltd., Supervisor of Chongqing BOE Display Technology Co., Ltd.,Supervisor of Hefei BOE Display Technology Co., Ltd., Supervisor of Chengdu BOE Display Technology Co., Ltd., Supervisor ofBOE Healthcare Co., Ltd., Supervisor of Fuzhou BOE Optoelectronics Technology Co., Ltd., and Supervisor of Nanjing BOE DisplayTechnology Co., Ltd.
Mr. Liu Hongfeng, a master’s degree holder. He once worked as the Deputy Chief of the Planning and Finance Department, theDeputy Chief and Chief of the Board Secretary’s Office, the Securities Representative, the Secretary to the 7th, 8th and 9th Boards ofDirectors of the Company and Supervisor of Beijing Yinghe Century Land Co., Ltd.Now he is a Vice President and the Secretary to the 10th Board of Directors of the Company, as well as a Director of Beijing NissinElectronics Precision Component Co., Ltd. and member vice president of the 3rd Council of China Association for Public Companies.
Offices held concurrently in shareholding entities:
? Applicable □ Not applicable
| Name | Shareholding entity | Office held in the shareholding entity | Start of tenure | End of tenure | Remuneration or allowance from the shareholding entity |
| Wu Lishun | Beijing State-owned Capital Operation and Management Company Limited | Secretary of the Party Committee and Chairman of the Board | 5 December 2023 | - | Yes |
| Ye Feng | Beijing Electronics Holdings Co., Ltd. | Full-time Director | 31 August 2021 | - | Yes |
| Dispatched | |||||
| Wang Jin | Beijing Electronics Holdings Co., Ltd. | General Counsel | 1 February 2021 | - | Yes |
| Sun Fuqing | Beijing Electronics Holdings Co., Ltd. | Finance Minister | 24 August 2021 | - | Yes |
| Shi Xiaodong | Beijing Electronics Holdings Co., Ltd. | Chief of the Operation and Management Department | 14 July 2023 | - | Yes |
| Xu Jinghe | Beijing Yizhuang Investment Holding Co.,Ltd. | Deputy Chief of the Investment Development Department | 14 October 2021 | - | Yes |
| Notes to post-holding in shareholder’s unit | The documents for holding the posts of shareholders entities haven’t listed the expiry date. | ||||
Offices held concurrently in other entities:
? Applicable □ Not applicable
| Name | Other entity | Office held in the entity | Start of tenure | End of tenure | Remuneration or allowance from the entity |
| Zhang Xinmin | University of International Business and Economics | Professor, and Doctor Advisor | - | - | Yes |
| Guo He | Renmin University of China | Professor, and Doctor Advisor | - | - | Yes |
| Wang Duoxiang | College of Engineering(COE), PKU | Researcher, and Doctor Advisor | - | - | Yes |
| Notes to post-holding in other entities | Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed. | ||||
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who left in the Reporting Period:
□ Applicable ? Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior ManagementProposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1
stExtraordinary GeneralMeeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2million (pre-tax) per year from RMB0.15 million (pre-tax) per year; the allowance for the Company’s executive directors and employeesupervisors as well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period, the total remuneration received by directors, supervisors and senior managers in the Companyamounted to RMB 54.0365million (pre-tax). Allowance for independent directors is RMB0.2 million (pre-tax) per year in 2023. Fordetails please referred to the statement below.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
| Name | Gender | Age | Office title | Incumbent/Former | Total pre-tax remuneration received from the Company | Any remuneration from related party |
| Chen Yanshun | Male | 58 | Chairman of the Board, and | Incumbent | 520.1 | No |
| Chairman of the Executive Committee | ||||||
| Gao Wenbao | Male | 48 | Director, President, and Vice Chairman of the Executive Committee | Incumbent | 653.71 | No |
| Wu Lishun | Male | 48 | Director | Incumbent | 0 | - |
| Ye Feng | Male | 58 | Director | Incumbent | 0 | - |
| Tang Shoulian | Male | 71 | Independent director | Incumbent | 20 | - |
| Zhang Xinmin | Male | 61 | Independent director | Incumbent | 20 | - |
| Guo He | Male | 61 | Independent director | Incumbent | 20 | - |
| Wang Duoxiang | Male | 54 | Independent director | Incumbent | 20 | - |
| Wang Jin | Female | 48 | Chairman of the Supervisory Committee | Incumbent | 0 | - |
| Sun Fuqing | Male | 50 | Supervisor | Incumbent | 0 | - |
| Shi Xiaodong | Male | 49 | Supervisor | Incumbent | 0 | - |
| Xu Jinghe | Female | 40 | Supervisor | Incumbent | 0 | - |
| Yan Jun | Male | 52 | Employee Supervisor | Incumbent | 67.8 | No |
| Xu Yangping | Male | 49 | Employee Supervisor | Incumbent | 153.61 | No |
| Teng Jiao | Male | 41 | Employee Supervisor | Incumbent | 202.46 | No |
| Liu Xiaodong | Male | 59 | Vice Chairman of the Board | Former | 512.15 | No |
| Member of the Executive Committee | Incumbent | |||||
| Sun Yun | Female | 54 | Director | Former | 441.93 | No |
| Member of the Executive Committee, and Executive Vice President | Incumbent | |||||
| Feng Qiang | Male | 47 | Member of the Executive Committee, and Executive Vice President | Incumbent | 394.98 | No |
| Wang Xiping | Male | 45 | Member of the Executive Committee, and Executive Vice President | Incumbent | 399.53 | No |
| Feng Liqiong | Female | 51 | Member of the Executive Committee, Executive Vice President, and Lead Counsel | Incumbent | 432.7 | No |
| Zhang Yu | Male | 53 | Member of the Executive Committee, and Executive Vice President | Incumbent | 373.8 | No |
| Yang Xiaoping | Female | 44 | Member of the Executive Committee, Executive Vice President, and Chief Financial Officer | Incumbent | 314.91 | No |
| Guo Huaping | Male | 46 | Senior Vice President, Chief Culture Officer | Incumbent | 176.75 | No |
| Yue Zhanqiu | Male | 56 | Senior Vice President, Chief Audit Officer | Incumbent | 235.05 | No |
| Liu Hongfeng | Male | 45 | Vice President, and Board Secretary | Incumbent | 344.93 | No |
| Pan Jinfeng | Male | 44 | Vice Chairman of the Board | Former | 0 | - |
| Miao Chuanbin | Male | 50 | Senior management | Former | 58.43 | - |
| Xie Zhongdong | Male | 53 | Senior management | Former | 40.81 | - |
| Total | -- | -- | -- | -- | 5,403.65 | -- |
According to the reporting rules, the disclosed compensation figures represent the annual cash remuneration attributed to the currentperiod based on accrual. Note that for some directors and supervisors, the total remuneration amounts provided are estimates as theirevaluations are still ongoing.Other notes:
□ Applicable ? Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
| Meeting | Date of the meeting | Disclosure date | Meeting resolutions |
| The 11th Meeting of the 10th Board of Directors | 3 February 2023 | - | The Proposal on the Implementation of the Employee Co-investment Plan for the 3D Light Field Project by Subsidiaries and the Proposal on the Implementation of the Employee Co-investment Plan for the Smart Window Project by Subsidiaries were deliberated and approved. |
| The 12th Meeting of the 10th Board of Directors | 9 March 2023 | - | The Proposal on the Company’s Business Objectives, Remuneration, and Evaluation of the Chairman of the Executive Committee for 2023 was deliberated and approved. |
| The 13th Meeting of the 10th Board of Directors | 31 March 2023 | 4 April 2023 | The following reports and proposals were deliberated and approved, i.e., Report on Business Operations for 2022, Report on the Work of the Board of Directors for 2022, Full Annual Report and Summary for 2022, Financial Final Report for 2022 and Business Plan for 2023, Proposal for the Distribution of Profits for 2022, Special Statement on Non-operating Funds Utilization and Other Related Financial Transactions in 2022, Proposal on Expected Routine Connected Transactions for 2023, Special Report on Deposit and Usage of Raised Fund in 2022, Proposal on the Development of Structured Deposits and Other Principal-protected Business, Proposal on Borrowing and Credit Line, Proposal on the Intended Appointment of an Audit Agency for 2023, 2022 Annual Internal Control Evaluation Report, Social Responsibility Report for 2022, Proposal on the Achievement of Exercise Conditions of the First Exercise Schedule for the Stock Option Granted by the Stock Option Incentive Scheme of 2020 and the Fulfillment of the Exercise Conditions for the Stock Option Granted for the First Time, Proposal on the Repurchase and Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the Executive Committee of the Company, Proposal for Authorizing the Chairman of the Board to Exercise his/her Powers, and Proposal for Holding the 2022 Annual General Meeting of Shareholders. |
| The 14th Meeting of the 10th Board of Directors | 3 April 2023 | - | The Proposal on Investment and Construction of BOE’s High-end Module Project was deliberated and approved. |
| The 15th Meeting of the 10th Board of Directors | 28 April 2023 | 29 April 2023 | The Proposal on the First Quarter Report for 2023 and the Proposal on the Appointment of Senior Managers of the Company were deliberated and approved. |
| The 16th Meeting of the 10th Board of Directors | 30 June 2023 | - | The Proposal on the Proposed Participation in the Investment in Beijing Electro-Control Digital Intelligence Technology Limited Liability Company and Connected Transactions was deliberated and approved. |
| The 17th Meeting of the 10th Board | 24 July 2023 | 25 July 2023 | The Proposal on the Election of Non-Independent |
| of Directors | Directors for the Tenth Session of the Board of Directors of the Company, Proposal on the Cancellation of Part of the Treasury Shares in the Company’s Special Securities Account for Repurchase, and Proposal on Convening a General Meeting of Shareholders were deliberated and approved. | ||
| The 18th Meeting of the 10th Board of Directors | 7 August 2023 | - | The Proposal on the Remuneration and Appraisal of the Chairman of the Executive Committee in 2022 and the Performance-Based Remuneration for the Term of 2020-2022 was deliberated and approved. |
| The 19th Meeting of the 10th Board of Directors | 25 August 2023 | 29 August 2023 | The Proposal for Deliberation on the Full Text and Summary of the Semi-Annual Report for 2023, the Proposal for Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2023, Proposal for Deliberation on the Summary Statement of Non-operating Funds Utilization and Other Related Financial Transactions in the Semi-annual Period of 2023, Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, Proposal on Proposed Investment and Construction of BOE’s Vietnam Project were deliberated and approved. |
| The 20th Meeting of the 10th Board of Directors | 9 October 2023 | - | The Proposal on the Signing of the Technology License Agreement was deliberated and approved. |
| The 21st Meeting of the 10th Board of Directors | 30 October 2023 | 31 October 2023 | The Proposal on Deliberation on the Third Quarter Report of 2023, Proposal on Changes to Certain Fundraising Project of the 2021 Non-public Offering, Proposal on Election of Members of the Special Committee of the Board of Directors, Proposal for the Repurchase and Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on Subsidiary’s Proposed Participation in the Establishment of the Beijing-Tianjin Co-Development (Beijing) Equity Investment Fund Partnership (Limited Partnership) and Connected Transactions and Proposal on Convening a General Meeting of Shareholders were deliberated and approved. |
| The 22nd Meeting of the 10th Board of Directors | 13 November 2023 | - | The Proposal on the Repurchase of Subsidiary’s Corporate Land in Suzhou Industrial Park was deliberated and approved. |
| The 23rd Meeting of the 10th Board of Directors | 28 November 2023 | 29 November 2023 | The Proposal on the Investment for the Development of the Project of the Production Lines of the 8.6th Generation Semiconductor Display Devices of BOE, Proposal on Changing the Purpose of the Repurchased Shares and Cancellation of the Same and Proposal on Convening a General Meeting of Shareholders were deliberated and approved. |
| The 24th Meeting of the 10th Board of Directors | 22 December 2023 | - | The Proposal on the Company’s Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee in 2023 was deliberated and approved. |
| The 25th Meeting of the 10th Board of Directors | 26 December 2023 | 27 December 2023 | The Proposal on the Fulfillment of the Exercise Conditions of the First Exercise Period of Stock Options Reserved for Grant Under the 2020 Stock Option and Restricted Stock Incentive Plan and the Proposal on the Closure of Fund- |
Raising Projects and Permanent Replenishment ofLiquidity with the Savings of Fund-Raising Funds weredeliberated and approved.
2. Attendance of Directors at Board Meetings and General Meetings
| Attendance of directors at board meetings and general meetings | |||||||
| Director | Total number of board meetings the director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings (yes/no) | General meetings attended |
| Chen Yanshun | 15 | 1 | 14 | 0 | 0 | No | 3 |
| Gao Wenbao | 15 | 1 | 14 | 0 | 0 | No | 4 |
| Wu Lishun | 7 | 0 | 7 | 0 | 0 | No | 0 |
| Ye Feng | 15 | 1 | 14 | 0 | 0 | No | 4 |
| Tang Shoulian | 15 | 2 | 13 | 0 | 0 | No | 4 |
| Zhang Xinmin | 15 | 1 | 14 | 0 | 0 | No | 4 |
| Guo He | 15 | 2 | 13 | 0 | 0 | No | 2 |
| Wang Duoxiang | 15 | 2 | 13 | 0 | 0 | No | 2 |
| Pan Jinfeng | 15 | 0 | 15 | 0 | 0 | No | 0 |
| Liu Xiaodong | 15 | 2 | 13 | 0 | 0 | No | 3 |
| Sun Yun | 15 | 2 | 13 | 0 | 0 | No | 3 |
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.?Yes □ NoSuggestions from directors adopted or not adopted by the CompanyThe Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of theCompany to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governancestructure. The Company's Board of Directors has a reasonable structure and a moderate number of people. All of them are equippedwith good professional background, and necessary knowledge, skills and quality to fulfill their responsibilities. They learned about andkept a constant focus on BOE’s production and operation, financial status, and influence and risks of significant events. They also tookthe initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-making of the Board of Directors. The executive directors of the Company are responsible for the operations management of the
Company. They understand the business and operational status of the Company, and with rich management experience, they can makedecisions efficiently. Non-executive directors are shareholder directors. As the communication bridge between shareholders and themanagement of the Company, they can combine the suggestions of shareholders with long-term interests of the Company, andparticipate in the decision-making process of significant events of the Company to protect the interests of shareholders. Independentdirectors are experts and scholars in the fields of technology, finance, law, and etc. They can express their opinions and views accordingto their expertise and advantages. During the Reporting Period, in accordance with Company Law, Securities Law, Measures forAdministration of Independent Directors of Listed Companies, Stock Listing Rules, Articles of Association, Rules of Procedure for theBoard of Directors and Independent Director Policy, directors of the Company paid special attention to the standardized operation ofthe Company, performed their duties diligently, issued much precious professional advice in terms of the perfection of policies androutine operating decision-making, etc., as well as played their due roles in perfecting the supervisory mechanism of the Company,protecting the legal right of the Company and the whole shareholders.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
| Committee | Members | Number of meetings convened | Convened date | Content | Important opinions and suggestions raised | Other information about the performance of duty | Details about issues with objections (if any) |
| Strategy Committee under the 10th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Liu Xiaodong, Ms. Sun Yun, Mr. Gao Wenbao | 16 | 19 January 2023 | The proposals to be submitted to the Board of Directors were deliberated and the Company’s medium- and long-term strategic plans were approved. | No objection | - | N/A |
| 27 February 2023 | No objection | - | N/A | ||||
| 21 March 2023 | No objection | - | N/A | ||||
| 23 March 2023 | No objection | - | N/A | ||||
| 18 April 2023 | No objection | - | N/A | ||||
| 20 June 2023 | No objection | - | N/A | ||||
| 12 July 2023 | No objection | - | N/A | ||||
| 28 July 2023 | No objection | - | N/A | ||||
| 15 August 2023 | No objection | - | N/A | ||||
| 21 September 2023 | No objection | - | N/A | ||||
| 19 October 2023 | No objection | - | N/A | ||||
| 2 November 2023 | No objection | - | N/A | ||||
| 17 November 2023 | No objection | - | N/A | ||||
| 28 November 2023 | No objection | - | N/A | ||||
| 12 December 2023 | No objection | - | N/A | ||||
| 15 December 2023 | No objection | - | N/A |
| Risk Control and Audit Committee under the 10th Board of Directors | Convener (Director): Mr. Zhang Xinmin; Members: Mr. Tang Shoulian, Mr. Guo He, Mr. Wang Duoxiang, Mr. Ye Feng | 5 | 6 February 2023 | Financial and accounting statements prepared by the Company, the Report on the Audit Work of CPAs for Annual Audit and other relevant reports, and the Summary of Risk Management and Audit Work for 2022 were reviewed. Meanwhile, the 2023 Audit Plan was deliberated. | No objection | - | N/A |
| 21 March 2023 | The 2022 Financial and Accounting Report, 2022 Internal Control Self-Evaluation Report, Proposal on the Intended Appointment of an Audit Agency for 2023, and the Special Report on Deposit and Use of the Raised Funds of 2022 were deliberated. | No objection | - | N/A | |||
| 18 April 2023 | The Proposal on Deliberation on the First Quarter Report of 2023 was deliberated. | No objection | - | N/A | |||
| 15 August 2023 | The Proposal for Deliberation on the Full Text and Summary of the Semi-Annual Report for 2023 and the Proposal for Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2023 were deliberated. | No objection | - | N/A | |||
| 18 October 2023 | The Proposal on Deliberation on the Third Quarter Report of 2023 was deliberated. | No objection | - | N/A | |||
| Nomination & Remuneration & Appraisal Committee | Convener (Director): Mr. Guo He; Members: Mr. Tang Shoulian, Mr. | 8 | 24 February 2023 | The Proposal on the Company’s Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee | No objection | - | N/A |
| under the 10th Board of Directors | Zhang Xinmin, Mr. Wang Duoxiang | in 2023 was deliberated. | |||||
| 21 March 2023 | The Proposal on the Achievement of Exercise Conditions of the First Exercise Schedule for the Stock Option Granted by the Stock Option Incentive Scheme of 2020 and the Fulfillment of the Exercise Conditions for the Stock Option Granted for the First Time, Proposal on the Repurchase and Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, and Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the Executive Committee of the Company were deliberated. | No objection | - | N/A | |||
| 18 April 2023 | The Proposal on the Appointment of Senior Managers of the Company was deliberated. | No objection | - | N/A | |||
| 8 June 2023 | The Proposal on Termination of the Function of Beijing Intelligent Technology Development Company Limited as the Equity Incentive Platform for the Company’s Entrepreneurial Backbone was deliberated. | No objection | - | N/A | |||
| 7 July 2023 | The Proposal on the Election of Non-Independent Directors for the Tenth Session of the Board of Directors of the Company was deliberated. | No objection | - | N/A | |||
| 27 July 2023 | The Proposal on the Remuneration and Appraisal of the Chairman of the | No objection | - | N/A |
| Executive Committee in 2022 and the Performance-Based Remuneration for the Term of 2020-2022 was deliberated. | |||||||
| 15 August 2023 | The Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares was deliberated. | No objection | - | N/A | |||
| 18 October 2023 | The Proposal on the Repurchase and Write-off of Certain Restricted Shares and the Proposal for the Write-off of Certain Stock Options were deliberated. | No objection | - | N/A | |||
| Nomination & Remuneration & Appraisal Committee under the 10th Board of Directors | Convener (Director): Mr. Guo He; Members: Mr. Wu Lishun, Mr. Tang Shoulian, Mr. Zhang Xinmin, Mr. Wang Duoxiang | 2 | 12 December 2023 | The Proposal on the Fulfillment of the Exercise Conditions of the First Exercise Period of Stock Options Reserved for Grant Under the 2020 Stock Option and Restricted Stock Incentive Plan and the Proposal on the Company’s Business Objectives, Remuneration, and Evaluation of the Chairman of the Executive Committee for 2023 were deliberated. | No objection | - | N/A |
| 20 December 2023 | The Proposal on Waiver of Exercise of the First Exercise Period of Stock Options Granted for the First Time was deliberated. | No objection | - | N/A |
VIII Performance of Duty by the Supervisory CommitteeIndicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□Yes ? No
The Supervisory Committee raised no objections in the Reporting Period.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent at the period-end | 2,592 |
| Number of in-service employees of major subsidiaries at the period-end | 57,237 |
| Total number of in-service employees | 90,563 |
| Total number of paid employees in the Reporting Period | 90,563 |
| Number of retirees to whom the Company as the parent or its major subsidiaries need to pay retirement pensions | 19 |
| Functions | |
| Function | Employees |
| Production | 56,851 |
| Sales | 2,858 |
| Technical | 27,086 |
| Financial | 814 |
| Administrative | 261 |
| Manager | 2,049 |
| Other | 644 |
| Total | 90,563 |
| Educational backgrounds | |
| Educational background | Employees |
| Doctor | 389 |
| Master | 9,352 |
| Bachelor | 22,994 |
| College | 26,917 |
| Technical secondary school | 11,103 |
| Other | 19,808 |
| Total | 90,563 |
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to theexternal competitive compensation and internal fairness, strengthening the control of the group as well as considering the differenceamong all business and subsidiaries.
3. Employee Training Plans
As a professional organization for talent training, BOE University (BOEU) conveys the Group's strategic requirements to employees,as well as facilitates the implementation of such requirements, through education and training, in order to promote the construction ofBOE's talent training system. Meanwhile, BOEU continues to promote talent cultivation in terms of mindset renewal, cognitivedevelopment, and ability improvement, so as to promote talent cultivation and intellectual capital appreciation, export cultural valueand influence, facilitate the achievement of strategic goals, and play a positive role in value promotion, requirement implementationand talent cultivation.In 2023, BOEU prioritized its three main values—cultivation & empowerment, intellectual capital buildup, and innovation &optimization—while focusing on its “efficiency-centric, synergy-driven, internally-strengthening, and refinement-oriented” approach.It pushed forward its innovation and transformation strategy, expedited the development of a digital learning model, and empoweredkey talents to enhance the abilities of cadres and staff to tackle challenges. Throughout the year, BOEU delivered 330,000 hours of
training and engaged over 40,000 trainers to cater to diverse skill-enhancement needs for leaders, managers, professionals, andindustrialists, offering rich, varied training formats and expertly curated courses.
4. Labor Outsourcing
□Applicable ? Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□Applicable ? Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that theCompany has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders arepositive.
□Applicable ? Not applicable
Final dividend plan for the Reporting Period? Applicable □ Not applicable
| Bonus shares for every 10 shares (share) | 0 |
| Dividend for every 10 shares (RMB) (tax inclusive) | 0.3 |
| Total shares as the basis for the profit distribution proposal (share) | 37,652,529,195 |
| Cash dividends (RMB) (tax inclusive) | 1,129,575,875.85 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 0.00 |
| Total cash dividends (including those in other forms) (RMB) | 1,129,575,875.85 |
| Attributable profit (RMB) | 7,186,134,196.00 |
| Total cash dividends (including those in other forms) as % of total profit distribution (%) | 100% |
| Cash dividend policy adopted | |
| If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends shall be 20% or above. | |
| Details about the proposal for profit distribution and converting capital reserve into share capital | |
| Based on the total shares of 37,652,529,195, the Company planned to distribute, with the undistributed profit, a cash dividend of RMB0.3 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted into share capital. If the total share capital of the Company changes due to factors such as the conversion of convertible bonds to shares, share repurchases, the exercise of rights regarding equity incentives, and the listing of increased shares after refinancing before the implementation of the distribution scheme, the adjustment will be conducted according to the principle of "the distribution amount will be adjusted with a fixed distribution ratio". The specific distributed amount shall be subject to the actual distributed amount. The said proposal is in compliance with the Company’s Articles of Association and relevant approval procedure, which fully protects the legal rights and interests of the minority investors. | |
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees? Applicable □ Not applicable
1. Equity incentive
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Sharesto Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory Committee, theCompany disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted StockIncentive Scheme (Announcement No. 2020-086) on 30 December 2020. Following the approval of the Proposal on the Awarding ofReserved Stock Options to Incentive Objects at the 31st Meeting of the 9th Board of Directors and the 13th Meeting of the 9thSupervisory Committee, the Company disclosed the Announcement on Completion of Registration of the Reserved and Granted StockOption of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2021-084) on 23 October 2021.The Company disclosed the Announcement on the Achievement of Lifting the Restriction Conditions in the First Lifting RestrictionPeriod for Restricted Stocks Granted by the 2020 Stock Option and Restricted Stock Incentive Scheme and on the Satisfaction of theExercise Conditions of the First Exercise Schedule of the First Granted Stock Option (Announcement No.: 2023-020) on 4 April 2023.The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option andRestricted Stock Incentive Scheme of the Company has been achieved, and the first exercise schedule of the first granted stock optionhas satisfied the exercise conditions. A total of 746 awardees met the conditions for the lifting of the restrictions, resulting in a total of102,260,780 shares of restricted stock that could be lifted. A total of 1,820 awardees were eligible for stock option exercise, resultingin a total of 183,779,741 shares of stock options available for exercise. The Company disclosed the Announcement on the Repurchaseand Write-off of Certain Restricted Stocks (Announcement No.: 2023-021) and the Announcement on the Write-off of Certain StockOptions (Announcement No.: 2023-022) on 4 April 2023, in which the Company intends to repurchase and cancel 10,298,610 restrictedshares and 16,801,747 shares of stock option that have been granted to incentive objects but have not been exercised by them sincesome incentive objects resigned, died, gave up voluntarily, and failed to meet the performance appraisal goals for personal reasons.Moreover, the above-mentioned matters regarding the repurchase and cancelation of restricted stocks were deliberated and approvedin the Annual General Meeting of Shareholders of 2022 held on 5 May 2023. The Company disclosed the Reminder Announcement onRelease and Circulation of Restricted Shares Granted under the 2020 Stock Option and Restricted Stock Incentive Scheme in the FirstRelease Period (Announcement No.: 2023-026) on 7 April 2023. The total number of incentive targets who meet the conditions forreleasing the restricted shares is 746, and the number of restricted shares that can be released is 102,260,780 shares, accounting for
0.2677% of the total share capital of the Company at present. The listing date for the lifted restricted stocks is 11 April 2023. TheCompany disclosed the Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share RepurchasePrice in the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2023-045) on 29 August2023. Since the equity distribution of the Company for 2022 has been completed, the restricted stock repurchase price involved in thisincentive scheme is adjusted from RMB2.41/share to RMB2.349/share, the exercise price of the first grant of the stock option isadjusted from RMB5.12/share to RMB5.059/share, and the exercise price of the reserved and granted stock option is adjusted fromRMB5.62/share to RMB5.559/share. The Company disclosed the Announcement on the Repurchase and Write-off of Certain RestrictedShares (Announcement No. 2023-056) and the Announcement on the Write-off of Certain Stock Options (Announcement No. 2023-057) on 31 October 2023, in which the Company intends to repurchase and cancel 5,349,564 shares of restricted shares and cancel atotal of 13,771,890 shares of stock options in this incentive scheme that have been awarded to incentive objects but have not beenexercised by them since some incentive objects left their jobs, died, retired or resigned for personal reasons. Moreover, the above-mentioned matters regarding the repurchase and write-off of restricted shared were deliberated and approved in the SecondExtraordinary General Meeting of Shareholders of 2023 held on 16 November 2023. The Company disclosed the Announcement onthe Achievement of the Exercise Conditions for the First Exercise Period of the Stock Options Reserved for Grant under the 2020 Stock
Option and Restricted Stock Incentive Plan (Announcement No. 2023-074) on 27 December 2023, and the conditions for the exerciseof the first exercise period of the stock options reserved for grant under the 2020 Stock Option and Restricted Stock Incentive Plan ofthe Company were met, and a total of 93 incentive recipients who met the conditions for the exercise of options were eligible to exercisethe options this time. The total number of incentive recipients meeting the conditions for the exercise of options is 93, and the numberof stock options exercisable is 9,468,320. At the Twenty-eighth Meeting of the Tenth Session of the Board of Directors and the NinthMeeting of the Tenth Session of the Board of Supervisors of the Company, the Proposal on the Achievement of the Conditions forRelease of Restricted Shares during the Second Release Period of the Restricted Shares Granted under the 2020 Stock Option andRestricted Share Incentive Plan and the Meeting of the Second Exercise Period of the First Granted Stock Options Fulfillment of theConditions for the Exercise of the Options, the Proposal on the Repurchase and Write-off of Certain Restricted Shares and the Proposalfor the Write-off of Certain Stock Options were deliberated and approved. The relevant announcements were disclosed on the websiteof cninfo.com.cn on 2 April 2024.
Equity incentives for directors and senior management in the Reporting Period:
? Applicable □ Not applicable
Unit: share
| Name | Office title | Share options held at the period-begin | Share options granted in the Reporting Period | Shares feasible to exercise during the Reporting Period | Shares exercised during the Reporting Period | Exercise price of exercised shares during the Reporting Period (RMB/share) | Share options held at the period-end | Market price at the period-end (RMB/share) | Number of restricted shares held at the period-begin | Number of released shares for the Reporting Period | Number of restricted shares newly granted during the Reporting Period | The grant price of restricted shares (RMB/share) | Number of restricted shares held at the period-end |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 2,000,000 | 680,000 | 0 | 0 | 1,320,000 |
| Gao Wenbao | Director, President, Vice Chairman of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 1,500,000 | 510,000 | 0 | 0 | 990,000 |
| Liu Xiaodong | Member of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 1,800,000 | 612,000 | 0 | 0 | 1,188,000 |
| Sun Yun | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 1,500,000 | 510,000 | 0 | 0 | 990,000 |
| Feng Qiang | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 750,000 | 255,000 | 0 | 0 | 495,000 |
| Wang Xiping | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 750,000 | 255,000 | 0 | 0 | 495,000 |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 1,000,000 | 340,000 | 0 | 0 | 660,000 |
| Zhang Yu | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 634,000 | 215,560 | 0 | 0 | 418,440 |
| Yang Xiaoping | Member of Executive Committee, Executive vice president, CFO | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 634,000 | 215,560 | 0 | 0 | 418,440 |
| Guo | Senior vice president, Chief | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 0 | 0 | 0 | 0 | 0 |
| Huaping | Culture Officer | ||||||||||||
| Yue Zhanqiu | Senior vice president, Chief Audit Officer | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 418,440 | 0 | 0 | 0 | 418,440 |
| Liu Hongfeng | Vice president, Secretary of the Board | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 750,000 | 255,000 | 0 | 0 | 495,000 |
| Miao Chuanbin | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 650,000 | 0 | 0 | 0 | 0 |
| Xie Zhongdong | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 3.90 | 750,000 | 0 | 0 | 0 | 0 |
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 13,136,440 | 3,848,120 | 0 | -- | 7,888,320 |
| Note (if any) | 1. On 31 March 2023, the Board of Directors engaged Mr. Feng Qiang and Mr. Guo Huaping as senior management of the Company; on 28 April 2023, the Board of Directors engaged Mr. Yue Zhanqiu as senior management of the Company. Thus, the beginning shareholding of Mr. Feng Qiang, Mr. Guo Huaping and Mr. Yue Zhanqiu shall be filled in with the number of shares held on the date of appointment 2. The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company has been achieved. The listing date is 11 April 2023. The above lifting of the restrictions resulted in a reduction in the number of restricted shares granted to directors and senior management at the end of the Reporting Period. After the lifting of certain restricted shares held by the Company’s directors and senior management in this incentive scheme, the locking and trading of shares held by them shall comply with the Company Law, the Securities Law, the Management Rules for Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Changes in Such Shares (2022 Revision), the Guidelines No. 1 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Standardised Operation of the Companies Listed on the Mainboard, the Guidelines No. 10 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Management of Share Changes, and other the relevant laws and regulations. 3. Mr. Miao Chuanbin and Mr. Xie Zhongdong resigned from the senior management of the Company in March 2023 and will no longer hold any position in the Company after their resignation. On 25 May 2023, the Company repurchased and cancelled the restricted shares held by Mr. Miao Chuanbin and Mr. Xie Zhongdong which had been granted but not lifted in accordance with the provisions of the 2020 Stock Option and Restricted Stock Incentive Scheme (Draft). | ||||||||||||
Appraisal of and Incentive for Senior ManagementAccording to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company areappointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment willbe implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets, and the appointment periodassessment is based on medium- and long-term targets, and the salary and rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option andRestricted Stock Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement of relevantconditions.
2. Implementation of Employee Stock Ownership Plans
□Applicable ? Not applicable
3. Other Incentive Measures for Employees
□Applicable ? Not applicable
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
In line with the reform, the establishment of internal control regulation was enhanced according to the requirements for the establishment of internal control regulation of listed companies and theCompany’s strategic requirements. Specifically, the internal control system was optimized, so as to guarantee the implementation of innovation and reform and promote the compliance andefficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes ? No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
| Subsidiary | Integration plan | Integration progress | Problem | Countermeasures taken | Settlement progress | Follow-up settlement plan |
| HC SemiTek Corporation | BOE Technology Group Co., Ltd., while preserving the independence of listed company HC Semitek Corporation across assets, personnel, finance, organization, and operations, will collaborate with it to jointly propel the execution of the “Empower IoT with Display” strategy. | The Board of Directors of HC Semitek Corporation has completed its renewal, and the directors nominated by BOE Technology Group Co., Ltd. will give their opinions and suggestions to its management through the Board of Directors. | N/A | N/A | N/A | N/A |
| Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. | Resources were integrated to complete the capital increase in Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. and integration was completed by the end of March 2023. Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. is a key component of BOE Group’s “Empower IoT with Display” transformation strategy. | The integration was completed on 21 March 2023. Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. is mainly engaged in visual arts, smart government, and smart transportation businesses, accelerating the implementation of BOE Group’s “Empower IoT with Display” strategy. | N/A | N/A | N/A | N/A |
XIV Internal Control Evaluation Report or Independent Auditor’s Report on InternalControl
1. Internal Control Evaluation Report
| Disclosure date of the internal control self-evaluation report | 2 April 2024 | |
| Index to the disclosed internal control self-evaluation report | On 2 April 2024, the Company disclosed 2023 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details. | |
| Evaluated entities’ combined assets as % of consolidated total assets | 99.62% | |
| Evaluated entities’ combined operating revenue as % of consolidated operating revenue | 99.44% | |
| Identification standards for internal control weaknesses | ||
| Type | Weaknesses in internal control over financial reporting | Weaknesses in internal control not related to financial reporting |
| Nature standard | The nature standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: In case of the following | Evaluation standards for internal defects not related to financial reporting specified by the Company are as below: Material weakness: (1) The business scope of the Company |
| situations, it will be deemed as that major defects (including but not limited to the following situations) may occur: (1) Directors, supervisors and Senior Management make the malpractices; (2) The enterprise corrects the released financial statements; (3) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the process of operation; (4) Supervision of the risk control and audit committee and the internal audit organization for internal control is ineffective. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the real and accurate objective of the financial report. The common weakness refers to other internal control weaknesses except for material weaknesses and serious weaknesses. | violates national laws and regulations seriously; (2) The decision-making procedure is not scientific, major decision errors are released, the development strategies of the Company are deviated from severely and major property losses are caused for the Company; (3) Safety and environmental accidents occur, resulting in major negative effects on the Company; (4) A lot of senior management personnel and key technicians leave the Company; (5) Important business lacks system control or the system is failure; (6) Material weaknesses or serious weaknesses are not corrected. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the enterprise to deviate from the control goal. The common weakness refers to other internal control defects except for material weaknesses and Serious weakness. | |
| Quantitative standard | The quantitative standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: The amount reported incorrectly is ≥1‰* total amount of assets of the Group (operating revenue) Serious weakness: 0.5‰*total amount of assets of the Group (operating revenue)≤ the amount reported incorrectly<1‰*total amount of assets of the Group (operating revenue) Common weakness: 0.1‰*total group assets (operating revenue)≤ the amount reported incorrectly <0.5‰*total group assets (operating revenue) | The quantitative standards for internal control defects not related to financial reporting determined by the Company are consistent with those over the financial reporting. See the left side for details. |
| Number of material weaknesses in internal control over financial reporting | 0 | |
| Number of material weaknesses in internal control not related to financial reporting | 0 | |
| Number of serious weaknesses in internal control over financial reporting | 0 | |
| Number of serious weaknesses in internal control not related to financial reporting | 0 | |
2. Independent Auditor’s Report on Internal Control
? Applicable □ Not applicable
| Opinion paragraph in the independent auditor’s report on internal control | |
| We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on 31 December 2023 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations. | |
| Independent auditor’s report on internal control disclosed or not | Disclosed |
| Disclosure date | 2 April 2024 |
| Index to such report disclosed | The Company disclosed the Audit Report on Internal Control on |
| 2 April 2024, for details, please refer to http://www.cninfo.com.cn | |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Material weaknesses in internal control not related to financial reporting | No |
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.
□Yes ? No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal controlself-evaluation report issued by the Company’s Board.?Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for ListedCompany GovernanceNot applicable
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection authorities of China.?Yes □ NoPolicies and industry standards pertaining to environmental protectionWith the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies withthe laws and regulations such as the Environmental Protection Law of the People's Republic of China, Water Pollution Prevention andControl Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollution by SolidWaste. The green environment management system was built in combination with the requirements of a series of management systems,such as ISO 9001, QC 080000, ISO 14001 and ISO 50001.Environmental protection administrative licenseCorresponding environmental impact assessments have been conducted for all construction projects under the control of the Companyin conformity with applicable national and local laws and regulations, the corresponding environmental impact assessment approvaland administrative licenses including the emission permit have also been obtained.The regulations for industrial emissions and the particular requirements for controlling pollutant emissions which are associated withproduction and operational activities.
| Name of polluter | Type of major pollutants | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 32.90mg/L | 500mg/L | 91.33t | 828.42t | None |
| Ammonia nitrogen | 2.36mg/L | 45mg/L | 6.67t | 59.17t | ||||||
| The 4.5th generation TFT-LCD production line of Chengdu BOE Optoelectro | Waste water pollutant | COD | Standard emission after being treated by | 1 | North side of factory | 160.61mg/L | 500mg/L | 153.32t | 564.14t | None |
| Ammonia nitrogen | 9.73mg/L | 45mg/L | 8.43t | 50.77t |
| nics Technology Co., Ltd. | sewage treatment system | |||||||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 29.38mg/L | 380mg/L | 97.74t | 1,081.55t | None |
| Ammonia nitrogen | 1.22mg/L | 30mg/L | 4.13t | 101.23t | ||||||
| Beijing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 (main waste water outlet) | East gate of factory | 98.58mg/L | 500mg/l | 402.04t | 1,570.32t | None |
| Ammonia nitrogen | 12.87mg/L | 45mg/l | 53.35t | 183.20t | ||||||
| COD | 1(S2 domestic sewage outlet II) | South gate of dormitory area | 59.75mg/L | 500mg/l | 7.75t | 80.76t | ||||
| Ammonia nitrogen | 12.01mg/L | 45mg/l | 1.59t | 6.06t | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 63.03mg/L | 350mg/L | 339.83t | 3,135.04t | None |
| Ammonia nitrogen | 12.62mg/L | 35mg/L | 67.81t | 313.50t | ||||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 31.62mg/L | 500mg/L | 37.88t | 713.81t | None |
| Ammonia nitrogen | 0.42mg/L | 45mg/L | 0.52t | 76.82t |
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 24.06mg/L | 500mg/L | 102.11t | 6,383.16t | None |
| Ammonia nitrogen | 11.95mg/L | 45mg/L | 53.62t | 574.48t | ||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 66.48 mg/L | 400mg/L | 262.27t | 1,900.24t | None |
| Ammonia nitrogen | 8.44 mg/L | 30mg/L | 33.78t | 146.17t | ||||||
| Hefei BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 64.50mg/L | 350mg/L | 732.60t | 4,759.56t | None |
| Ammonia nitrogen | 11.07mg/L | 35mg/L | 126.31t | 416.46t | ||||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 12.21mg/l | 500mg/L | 56.88t | 297.50t | None |
| Ammonia nitrogen | 0.42mg/l | 45mg/L | 1.93t | 29.75t | ||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being | 1 | North side of factory | 24.14mg/L | 500mg/L | 68.75t | 4,326.12 t | None |
| Ammonia nitroge | 3.18mg/L | 45mg/L | 9.09t | 262.00t |
| n | treated by sewage treatment system | |||||||||
| Chongqing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 19.69mg/L | 400mg/L | 48.17t | 4,171.20t | None |
| Ammonia nitrogen | 1.39mg/L | 35mg/L | 3.24t | 398.40t | ||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast corner of factory | 23.34mg/L | 30mg/L | 245.71t | 488.6t | None |
| Ammonia nitrogen | 0.07mg/L | 1.5mg/L | 0.74t | 25.85t | ||||||
| Nanjing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 88.29mg/L | 500mg/L | 462.12t | 1,903.99t | None |
| Ammonia nitrogen | 3.56mg/L | 45mg/L | 18.81t | 171.37t | ||||||
| Chengdu BOE Display Sci-tech Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment | 1 | Northwest corner of factory | 183.25mg/L | 500mg/L | 1,141.90t | 4,310.10t | None |
| Ammonia nitrogen | 10.69mg/L | 45mg/L | 66.61t | 148.80t |
| system | ||||||||||
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 148.37mg/L | 500mg/L | 7.85t | Industrial and domestic sewage of the project, upon treatment, is discharged to the industrial sewage plant of Linkong Industrial Park in Dianzhong New Zone, Kunming, Yunnan Province and included in the total discharge of the sewage plant. | None |
| Ammonia nitrogen | 12.41mg/L | 45mg/L | 0.64t |
Treatment of pollutantsThe waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water andhousehold waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according todifferent natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected byrain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste wateris discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water compriseshousehold fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewagetreatment factory. All industrial wastewater and domestic sewage is not discharged directly, and the concentration and total amount ofdrainage satisfy the requirements of national and local relevant standards.The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can beemitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the nationaland local relevant standards. The solid waste materials which are generated by each subordinate subsidiary can be divided into general
industrial solid waste, hazardous waste materials and household waste materials, and they all handed over to qualified recycler forregular treatment. The disposal rate of hazardous waste materials is 100%.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been publishedvia Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.Contingency Plan for Emergent Environmental IncidentsEvery subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmentalincidents in local environmental protection departments according to their requirements. However, such contingency plan consists ofcomprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardouswastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.Input in environment governance and protection and payment of environmental protection taxThe Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasinginvestment in environmental governance and protection, and improving the production and operation processes regardingenvironmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Companysubject to the environmental protection tax shall pay the environmental protection taxes strictly complying with the requirements ofthe Environmental Protection Tax Law of the People's Republic of China and the local government.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects? Applicable □ Not applicableTo respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbonemission peak and carbon neutrality of the Company, clearly raised a carbon emission management policy featuring "comprehensivecoordination, continuous reduction in carbon emissions, value extension and green development" and management objective featuring“Achieve carbon emission peak and carbon neutrality of the Company”. Meanwhile, it included the performance in carbon emissionmanagement in the Company's performance management system to promote the Company's management of carbon emission.On the basis of the "6·24" action plan for peaking carbon emissions, more detailed measures and action plans for green management,green products, green manufacturing, green recycling, green investment and green actions were implemented. Meanwhile, in order toimprove the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and controlplatform was developed to realize full-process management featuring optimization and control at the source, continuous improvementsin the energy structure, dynamic control of processes, and effective analysis of data.The Company sets carbon targets in a scientific way. As a representative of the company, Chongqing BOE Optoelectronics TechnologyCo., Ltd. officially joined the Science Based Targets initiative (SBTi) and made a commitment to keep the increase in global averagetemperature 1.5°C below pre-industrial levels. Thereby, it becomes the first semiconductor display panel manufacturer in Chinesemainland to join SBTi. It carried out internal carbon inventory in accordance with the GHG Protocol to determine the base year foremission reduction and set emission reduction targets, and then planned the path to achieve the targets.Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system andthe incentive energy-saving program through refined management on the energy management platform.In 2023, 111.3186 million kWh of electricity, 2.6923 million tons of water, 578,600 cubic meters of natural gas, 609,700 cubic metersof nitrogen, and 15.9 thousand tons of vapor had accumulatively been saved.Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conductedcarbon emission trading and accumulated carbon trading experience to assist the Company in achieving its goals of carbon emission
peak and carbon neutrality.Administrative penalties imposed for environmental issues during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment information that should be disclosedNoOther related environment protection informationThe Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheresto the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resourceconsumption, minimizing the impact on the ecological environment and maximizing the recyclability.In order to reduce the impact of the logistics transportation process on the environment, the Company and its partners constantlyimprove the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improvethe delivery efficiency, and reduce greenhouse gas emissions.II Social ResponsibilityWith the sustainable development concept of Green+, Innovation+ and Community+ as its management and operation philosophy,BOE actively participates in the practices of the "Empower IoT with Display" and the industrial value innovation ecosystem that is"Powered by BOE" with global partners.As of 2023, BOE had consecutively disclosed Social Responsibility Report for 14 years. Please view and download such report viaofficial website of BOE www.boe.com or Cninfo.
III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural RevitalizationThroughout the years, BOE has vigorously expanded its global footprint, ceaselessly constructing the “Powered by BOE” industrialvalue innovation ecosystem. By leveraging technological innovation, it empowers diverse application scenarios and strategic layouts,upholding the philosophy of sustainable development, fulfilling its corporate social responsibility, and holistically driving the high-quality advancement of rural rejuvenation.Shoulder responsibility and pursue innovationAs a significant social actor, BOE actively shoulders its responsibilities by delivering top-notch services and products to stakeholdersand aiding in rural revitalization efforts. BOE established a digital supply chain platform, streamlining farm-to-table food service,ensuring delivery of agricultural produce to over 100,000 employees within 24 hours, and launched the “Chengqi Yanchuan” brand toaid farmers, delving into private markets and exploring innovative sales models. Additionally, BOE dispatched exceptional personnelto Wamiao Village, Dazhuangke Township, Yanqing District, Beijing, to actively participate in grassroots organization development,foster industries, serve communities, promptly respond to natural disasters, and provide aid. The Company also initiated cultural-assisted charity events through its “Running Group”, such as “Stepping into Red Zhuangke to Harvest Red Fruits” and “CorrectingNames for Quality Local Produce,” harnessing cultural influence to spread warmth and thereby realizing both the economic value andsocial contributions in supporting agriculture and farmers.Pass on warmth and provide health supportBOE leverages its advanced medical resources and talent edge to innovate in healthcare technology and services, while consistentlyfocusing on societal health advancements. It raises public health consciousness through diverse medical welfare initiatives,
disseminating health knowledge. Additionally, BOE donates medical resources to underprivileged areas, enhancing local medicaltechnology standards and granting residents access to personalized healthcare. In 2023, Chengdu BOE Hospital ventured into Sichuan’sethnic minority autonomous regions, conducting screenings for 29,365 individuals and 76 schools for congenital heart diseases inchildren. Furthermore, BOE energized rural digital education via the “Lighting the Way to Growth” initiative, surpassing 100 smartclassrooms in 2023. This provided over 60,000 educators and students with comprehensive smart education solutions. Simultaneously,BOE partnered with the Palace Museum to launch the “100 Traditional Culture Public Welfare Lessons in the Palace” scheme, aimingto bridge the digital divide between urban and rural areas and comprehensively empower digital education in remote regions.Moving forward, BOE remains steadfast in its vision of “To Be the Most Respected Company on Earth”. Upholding the principles ofGreen+, Innovation+, and Community+ sustainability, BOE commits to offering increased backing and services. This dedication isinstrumental in advancing rural revitalization strategies, thereby generating greater societal value and welfare.
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilledin the Reporting Period or Ongoing at the Period-end? Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | |
| Commitments made in time of asset restructuring | - | - | - | - | - | |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | |
| Equity incentive commitments | - | - | - | - | - | |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun Director: Mr. Gao Wenbao Supervisor: Mr. Xu Yangping, Mr. Yan Jun and Mr. Teng Jiao Senior Management: Mr. Liu Xiaodong, Ms. Sun Yun, Ms. Feng Liqiong and Mr. Liu Hongfeng Former Senior Management: Mr. Xie Zhongdong and Mr. | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the commitment period expires. | 21 February 2020 | During the term as director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | Ongoing |
| Miao Chuanbin | ||||||
| Other commitments | - | - | - | - | - | |
| Executed on time or not | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||||
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still withinthe forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable ? Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” onthe Financial Statements
□ Applicable ? Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the IndependentDirectors (if any) Regarding the Independent Auditor's “Modified Opinion” on the FinancialStatements of the Reporting Period
□ Applicable ? Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting Errors
? Applicable □ Not applicableOn 30 November 2022, the Ministry of Finance issued Interpretation No. 16 of Accounting Standards for Business Enterprises, thecontent of “accounting treatment for deferred income tax relating to assets and liabilities arising from a single transaction that is notsubject to the initial recognition exemption” in the Interpretation became effective on 1 January 2023; and the content of “accountingtreatment of the income tax effect of financial instrument related dividend whose issuer is classified as equity instrument” and“accounting treatment of share-based payment in cash settlement modified into share-based payment in equity settlement by theenterprise” became effective from the date of promulgation.VII YoY Changes to the Scope of the Consolidated Financial Statements? Applicable □ Not applicable
5 subsidiaries were established in 2023, and they are Mianyang BOE Electronic Technology Co., Ltd., Beijing Shiyan Technology Co.,Ltd., Wuhan BOE Smart Energy Co., Ltd., BOE Smart Internet Hospital (Chengdu) Co., Ltd. and Beijing BOE Shengshi TechnologyCo., Ltd. 2 subsidiaries were merged not under the same control, and they are Beijing United Ultra High-Definition Video TechnologyCollaboration Center Co., Ltd., HC SemiTek Corporation and its subsidiaries. One subsidiary, Suzhou BOE Human ResourcesDevelopment Co., Ltd., was cancelled.
VIII Engagement and Disengagement of Independent AuditorCurrent independent auditor
| Name of the domestic independent auditor | KPMG Huazhen (LLP) |
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 1,210 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 19 |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Su Xing, Chai Jing |
| How many consecutive years the certified public accountants from the domestic independent auditor have provided audit service for the Company | 2 years for Su Xing, 4 years for Chai Jing |
| Name of the foreign independent auditor (if any) | N/A |
| The Company’s payment to the foreign independent auditor (RMB’0,000) (if any) | 0 |
| How many consecutive years the foreign independent auditor has provided audit service for the Company (if any) | N/A |
| Names of the certified public accountants from the foreign independent auditor writing signatures on the auditor’s report (if any) | N/A |
| How many consecutive years the certified public accountants from the foreign independent auditor have provided audit service for the Company (if any) | N/A |
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes ? No
Independent auditor, financial advisor or sponsor engaged for internal control audit? Applicable □ Not applicableDuring the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and theCompany paid KPMG Huazhen (LLP) total compensation of RMB12.1 million for the 2023 annual audit and internal control audit.IX Possibility of Delisting after Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.XI Major Legal Matters? Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Litigations for 2023 (including carryforwards in previous years ) | 48,771.67 | No | N/A | N/A | N/A | - | N/A |
XII Punishments and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable ? Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable ? Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any otherfinance business with any related parties.
7. Other Major Related-Party Transactions
? Applicable □ Not applicableNoneIndex to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Estimated Continuing Related-party Transactions for 2023 | 4 April 2023 | www.cninfo.com.cn |
| Announcement on Participation of Subsidiary in Establishment of Beijing-Tianjin Joint Development (Beijing) Equity Investment Fund Partnership (Limited Partnership) and the Related-party Transaction | 31 October 2023 | www.cninfo.com.cn |
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
? Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||||
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 30 November 2016 | 552,699 | 15 March 2017 | 53,182 | Joint-liability | N/A | N/A | 2017-3-17 to 2027-3-17 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 24 April 2017 | 2,287,206 | 30 August 2017 | 1,392,242 | Joint-liability | N/A | N/A | 2017-9-6 to 2029-9-6 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 30 November 2016 | 1,712,144 | 30 August 2017 | 199,091 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2017-9-7 to 2027-9-7 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 9 December 2015 | 1,359,203 | 8 November 2016 | 68,439 | Joint-liability | N/A | N/A | 2016-12-19 to 2026-7-4 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 18 May 2018 | 2,122,952 | 18 September 2018 | 1,527,070 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2018-9-26 to 2031-9-26 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 27 April 2020 | 2,067,573 | 29 December 2020 | 1,475,257 | Joint-liability | N/A | The secured party provides a counter | 2020-12-31 to 2033-12-31 | Not | Not |
| guarantee for the guarantor | ||||||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 25 March 2019 | 2,044,698 | 16 August 2019 | 1,193,717 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2019-8-23 to 2032-8-23 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 180,000 | 12 May 2021 | 45,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-5-31 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 120,000 | 12 May 2021 | 120,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-6-6 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 111,162 | 29 July 2021 | - | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | - | Yes | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 19,098 | 13 August 2021 | - | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | - | Yes | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 10,500 | 27 December 2021 | - | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | - | Yes | Not |
| Chengdu BOE Hospital Co., Ltd. | 27 April 2020 | 240,000 | 15 June 2020 | 152,295 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-6-15 to 2042-6-30 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 0 | Total actual amount of such guarantees in the Reporting Period (B2) | 284,885 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 12,686,475 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 6,226,293 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 2,462 | 30 September 2020 | 2,156 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 1,915 | 30 September 2020 | 1,677 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 2,257 | 30 September 2020 | 1,758 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,163 | 30 September 2020 | 905 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 752 | 30 September 2020 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 609 | 18 December 2017 | 303 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 2,377 | 18 December 2017 | 1,005 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 657 | 18 December 2017 | 278 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 1,512 | 18 December 2017 | 761 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,269 | 18 December 2017 | 536 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 205 | 3 December 2020 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,231 | 3 December 2020 | 984 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd. | N/A | 1,710 | 3 December 2020 | 1,367 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Ke’en Solar Energy Power Generation (Pingyang) Co., Ltd. | N/A | 1,094 | 3 December 2020 | 875 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 958 | 3 December 2020 | 766 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 479 | 3 December 2020 | 383 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 8,755 | 23 October 2017 | 6,352 | Pledge | Charging right | N/A | 2017-10-24 to 2032-10-23 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 14,063 | 15 August 2018 | 5,520 | Pledge | Charging right | N/A | 2018-9-26 to 2032-12-21 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 17,386 | 28 November 2017 | 13,185 | Pledge | Charging right | N/A | 2017-12-1 to 2032-12-1 | Not | Not |
| Hefei BOE Hospital Co., Ltd. | 27 April 2018 | 130,000 | 27 April 2018 | 115,500 | Joint-liability | N/A | N/A | 2018-4-27 to 2036-4-27 | Not | Not |
| Beijing BOE Life Technology Co., Ltd. | N/A | 60,000 | 29 December 2021 | 27,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-29 to 2039-12-28 | Not | Not |
| BOE Vision-Electronic Technology Co., Ltd | 30 March 2022 | 212,481 | 23 March 2023 | 3,544 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 23 March 2023 to the time when all orders under the purchase and sales Agreement have been completed | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 17 February 2022 | 2,232 | Joint-liability | N/A | N/A | 2022-2-18 to 2028-2-17 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 26 January 2021 | 23,010 | 15 March 2021 | 2,247 | Joint-liability | N/A | N/A | 2020-9-16 to 2027-9-16 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 26 January 2021 | 23,010 | 15 March 2021 | 1,151 | Joint-liability | N/A | N/A | 2023-2-28 to 2026-2-28 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 26 January 2021 | 23,010 | 3 August 2021 | 2,278 | Joint-liability | N/A | N/A | 2023-8-22 to 2027-8-21 | Not | Not |
| BOE HC SemiTek | 30 September 2021 | 34,515 | 15 November 2021 | 6,236 | Joint- | N/A | N/A | 2021-11-17 to 2029- | Not | Not |
| (Suzhou) Co., Ltd. | liability | 9-25 | ||||||||
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 46,020 | 17 February 2023 | 690 | Joint-liability | N/A | N/A | 2023-2-17 to 2027-2-17 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 46,020 | 17 March 2023 | 1,804 | Joint-liability | N/A | N/A | 2023-3-17 to 2027-3-14 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 46,020 | 25 April 2023 | 2,301 | Joint-liability | N/A | N/A | 2023-4-27 to 2027-5-17 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 46,020 | 12 May 2023 | 920 | Joint-liability | N/A | N/A | 2023-6-16 to 2027-6-15 | Not | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 22 March 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 24 March 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 18 March 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 18 May 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 27 January 2022 | 46,020 | 10 May 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Suzhou) Co., Ltd. | 21 January 2023 | 46,020 | 29 March 2023 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Crystaland Co., Ltd. | 21 January 2023 | 4,602 | 19 March 2023 | 920 | Joint-liability | N/A | N/A | 2023-3-23 to 2027-3-22 | Not | Not |
| Crystaland Co., Ltd. | 31 December 2019 | 11,505 | 25 April 2020 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Crystaland Co., Ltd. | 27 January 2022 | 9,204 | 8 July 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Crystaland Co., Ltd. | 27 January 2022 | 9,204 | 22 November 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 3 March 2023 | 2,301 | Joint-liability | N/A | N/A | 2023-3-7 to 2027-7-5 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 13 March 2023 | 4,602 | Joint-liability | N/A | N/A | 2023-3-14 to 2027-6-13 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 28 March 2023 | 2,289 | Joint-liability | N/A | N/A | 2023-3-28 to 2029-3-27 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 6 April 2023 | 2,289 | Joint-liability | N/A | N/A | 2023-4-6 to 2029-4-5 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 15 May 2023 | 1,369 | Joint-liability | N/A | N/A | 2023-5-22 to 2027-5-21 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 21 January 2023 | 52,923 | 16 June 2023 | 2,301 | Joint-liability | N/A | N/A | 2023-6-19 to 2027-6-15 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 11 March 2023 | 12,656 | 26 April 2023 | 7,472 | Joint-liability | N/A | N/A | 2023-4-28 to 2030-4-23 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 26 January 2021 | 46,020 | 7 January 2022 | 3,405 | Joint-liability | N/A | N/A | 2022-1-7 to 2027-1-7 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,816 | 2 December 2022 | 3,567 | Joint-liability | N/A | N/A | 2022-12-2 to 2027-6-2 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 18 July 2022 | 31,064 | 30 August 2022 | 2,194 | Joint-liability | N/A | N/A | 2022-10-26 to 2035-6-21 | Not | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 26 January 2021 | 46,020 | 7 January 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,816 | 6 July 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,816 | 15 February 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,816 | 9 May 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 January 2022 | 36,816 | 17 June 2022 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 27 February 2017 | 43,259 | 1 March 2017 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| BOE HC SemiTek (Zhejiang) Co., Ltd. | 26 January 2021 | 46,020 | 24 September 2021 | - | Joint-liability | N/A | N/A | - | Yes | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 505,000 | Total actual amount of such guarantees in the Reporting Period (C2) | 45,799 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 1,280,050 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 237,424 | |||||||
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 505,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 330,684 | |||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,966,525 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 6,463,717 | |||||||
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 49.94% |
| Of which: | |
| Balance of guarantees provided for shareholders, actual controller and their related parties (D) | 0 |
| Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) | 284,044 |
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 0 |
| Total of the three amounts above (D+E+F) | 284,044 |
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A |
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A |
Compound guaranteesNone
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
? Applicable □ Not applicableOverviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Bank structured deposit | Self-owned funds | 1,529,800 | 705,500 | 0 | 0 |
| Bank structured deposit | Raised funds | 40,000 | 40,000 | 0 | 0 |
| Total | 1,569,800 | 745,500 | 0 | 0 | |
Note: Subsidiary HC Semitek Corporation used not more than RMB400,000,000 of idle proceeds for cash management. Details aredisclosed in the announcement of HC Semitek Corporation on the website of cninfo.com.cn on 16 August 2023.Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable ? Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrustedasset management
□ Applicable ? Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events? Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors. Among them, the redeemed and delisted bonds are detailed in the table below:
| Bond name | Abbr. | Bond code | Date of issue | Maturity | Redemption and delisting date | Disclosure index |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 | 31 October 2022 | www.cninfo.com.cn |
| investors) (Phase I) | |||||
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 20BOEY1 | 149046 | 27 February 2020 | 28 February 2023 | 28 February 2023 |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 20BOEY2 | 149065 | 18 March 2020 | 19 March 2023 | 20 March 2023 |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2023 | 27 April 2023 |
The bond outstanding as of the disclosure date of this Report is as follows:
| Bond name | Abbr. | Bond code | Date of issue | Maturity |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2025 |
The Company disclosed 2024 "22BOEY1" Interest Payment Announcement (Announcement No. 2024-005) on 21 March 2024. Theinterest payment plan was RMB35.00 (including tax) every ten bonds.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in whichthe Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. Thenet fund raised was expected to be no more than RMB20 billion. On 19 August 2021, the Company disclosed the Report on the Non-public Offering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcementNo. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, whichwere listed on the Shenzhen Stock Exchange on 20 August 2021. The Company disclosed the Suggestive Announcement on RelievingRestricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854restricted shares of the Company's non-publicly offered A shares in 2021 were relieved on 20 February 2023 and could be traded onthe market thereafter. The number of the relieved restricted shares accounted for 1.9324% of the Company's non-restricted shares, and
1.8801% of the Company's total share capital.
3. The Company disclosed the Announcement on Resignation of Senior Management (Announcement No.: 2023-006) on 2 March 2023,due to the change of work, Mr. Miao Chuanbin applied for resignation as Senior Vice President and Chief Culture Officer and will nothold any position in the Company after his resignation. The Company disclosed the Announcement on Resignation of SeniorManagement (Announcement No.: 2023-013) on 1 April 2023, due to personal reasons, Mr. Xie Zhongdong applied for resignation asSenior Vice President, Chief Audit Officer and Chief Risk Control Officer and will not hold any position in the Company after hisresignation. The Company disclosed the Announcement of Resolutions of the 13th Meeting of the 10th Board of Directors(Announcement No.: 2023-014) on 4 April 2023, at the 13th Meeting of the 10th Board of Directors, the Company considered andapproved the Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the ExecutiveCommittee of the Company, the Board of Directors appointed Mr. Feng Qiang as a member of the Executive Committee and ExecutiveVice President, Mr. Guo Huaping as Senior Vice President and Chief Cultural Officer; and to adjust the current senior management ofthe Company, Ms. Yang Xiaoping, from Senior Vice President and Chief Financial Officer to a member of the Executive Committee,Executive Vice President and Chief Financial Officer. The Company disclosed the Announcement of Resolutions of the 15th Meetingof the 10th Board of Directors (Announcement No.: 2023-028) on 29 April 2023. At the 15th Meeting of the 10th Board of Directorsof the Company, the Proposal on the Appointment of Senior Management of the Company was reviewed and approved, and the Boardof Directors appointed Mr. Yue Zhanqiu as Senior Vice President and Chief Audit Officer of the Company.
4. On 31 May 2023, the Company disclosed the Announcement No. 2023-034 on the Distribution of the 2022 Final Dividend. As the2022 Final Dividend Plan had been approved at the 2022 Annual General Meeting on 5 May 2023, the Company distributed a 2022
final dividend of RMB0.61 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity rate of RMB andHKD declared by the People’s Bank of China on the first working day immediately after the date of the relevant general meetingresolution), with no bonus issue from either profit or capital reserves.
5. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17
th Meeting of the 10
thBoard of Directors(Announcement No.: 2023-037) that Mr. Wu Lishun was nominated by the Company’s de facto controller, Beijing Electronics HoldingsCo., Ltd., as a non-independent director for the 10
thBoard of Directors of the Company. On 15 August 2023, the Company disclosedthe Announcement on the Resolutions of the 1
st
Extraordinary General Meeting of 2023 (Announcement No.: 2023-041), at which theProposal on the Election of Non-independent Director of the 10
thBoard of Directors of the Company was deliberated and approved,and Mr. Wu Lishun was elected as a non-independent director of the 10
thBoard of Directors of the Company.
6. On 27 August 2020, the Company held the 15
th
Meeting of the 9
thBoard of Directors and approved the Proposal on the Repurchaseof Certain Public Shares of the Company, whereby the Company proposed to use its own funds to repurchase a portion of RMB-denominated ordinary shares (A-Shares) issued by the Company by means of centralized bidding for the purpose of the implementationof the Company’s equity incentive plan. The implementation of the share repurchase plan of the Company was completed on 3September 2020 and 349,999,933 A-Shares were accumulatively repurchased via centralized bidding. For details, please refer to theAnnouncement on the Completion of the Implementation of the Share Repurchase Plan and the Results of the Implementation(Announcement No.: 2020-058) disclosed by the Company on 5 September 2020. On 21 December 2020, the Company granted321,813,800 restricted shares to 793 incentive targets and details are in the relevant announcement disclosed by the Company on 22December 2020. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17
th meeting of the 10
th
Boardof Directors (Announcement No.: 2023-037) and the Announcement on the Cancellation of Certain Treasury Shares in the Company’sSpecial Securities Account for Repurchase (Announcement No.: 2023-038). In accordance with the Rules for the Repurchase of Sharesby Listed Companies and Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 9 - Share Repurchase, theremaining unutilized 28,186,133 shares in the special securities account for repurchase will expire three years from 5 September 2023,and the Company shall cancelled them and handle relevant cancellation procedures in accordance with regulations. On 15 August 2023,the Company disclosed the Announcement on the Resolutions of the 1
stExtraordinary General Meeting of 2023 (Announcement No.:
2023-041) that the Proposal on the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account forRepurchase was deliberated and approved at the meeting. On 31 August 2023, the Company disclosed the Announcement on theCompletion of the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account for Repurchase and ShareChanges (Announcement No.: 2023-050). The aforesaid 28,186,133 treasury shares have been cancelled on 29 August 2023 with theShenzhen branch of China Securities Depository and Clearing Co., Ltd., with the cancelled number of shares, date of completion andterm of retirement all in compliance with the applicable laws and regulations.
7. According to the Proposal of Repurchase of Certain Public Shares by the Company deliberated and adopted in the thirty-first meetingof the ninth session of the Board of Directors meeting held on 27 August 2021, the Company is allowed to use its own funds torepurchase certain of its shares for the implementation of the Company’s share incentive plan. On 28 February 2022, theimplementation of the proposal to repurchase certain of its shares through centralised price bidding transactions was completed, andthe cumulative number of A shares repurchased amounted to 499,999,919, details of which are set out in the Announcement on theCompleted Implementation of Share Repurchase Programme and Repurchase Implementation Results (Announcement No. 2022-007)dated 2 March 2022. On 29 November 2023, the Company disclosed the Announcement of Resolutions of the Twenty-third Meeting ofthe Tenth Session of the Board of Directors (Announcement No. 2023-063) and the Announcement on Changing the Purpose of theRepurchased Shares and Cancelling Them (Announcement No. 2023-065), which stated that according to the actual situation of theCompany and in order to safeguard the interests of the general public of investors, the Company intends to change the purpose of therepurchase of the Company’s shares for the year 2021 from “for the implementation of the Company’s share incentive program” to“for cancellation and corresponding reduction of registered capital”. On 15 December 2023, the Company disclosed the Announcementof Resolutions of the Third Extraordinary General Meeting of 2023 (Announcement No. 2023-068), at which the Resolution onChanging the Use of the Repurchased Shares for the Purposes of the Repurchase and for Cancellation was deliberated and approved.
On 27 December 2023, the Company disclosed the Announcement on the Completion of the Retirement of Repurchased Shares &Share Changes (Announcement No. 2022-071). The aforesaid 499,999,919 treasury shares have been cancelled on 25 December 2023with the Shenzhen branch of China Securities Depository and Clearing Co., Ltd., with the cancelled number of shares, date ofcompletion and term of retirement all in compliance with the applicable laws and regulations.
| Overview of significant event | Disclosure date | Disclosure website |
| Announcement on the Signing of Supplemental Agreement (III) to the Cooperation Agreement for the Life Science and Technology Industrial Base Project | 10 June 2023 | www.cninfo.com.cn |
| Announcement on Investment and Construction of BOE Vietnam Project | 29 August 2023 | www.cninfo.com.cn |
| Announcement on Participation of Subsidiary in Establishment of Beijing-Tianjin Joint Development (Beijing) Equity Investment Fund Partnership (Limited Partnership) and the Related-party Transaction | 31 October 2023 | www.cninfo.com.cn |
| Announcement on the Investment for the Development of the Project of the Production Lines of the 8.6th Generation AMOLED | 29 November 2023 | www.cninfo.com.cn |
| Announcement on Participation of Subsidiary in Establishment of Beijing Xianzhilian Phase II Venture Capital Fund (Limited Partnership) | 29 November 2023 | www.cninfo.com.cn |
XVII Significant Events of Subsidiaries
□ Applicable ? Not applicable
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Item | Before | Increase/decrease (+/-) | After | ||||||
| Number | Percentage | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Number | Percentage | |
| I. Restricted shares | 1,033,130,290 | 2.70% | 0 | 0 | 0 | -834,171,063 | -834,171,063 | 198,959,227 | 0.53% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 718,132,854 | 1.88% | 0 | 0 | 0 | -718,132,854 | -718,132,854 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 289,137,936 | 0.76% | 0 | 0 | 0 | -106,724,447 | -106,724,447 | 182,413,489 | 0.48% |
| Among which: Shares held by domestic corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by domestic individuals | 289,137,936 | 0.76% | 0 | 0 | 0 | -106,724,447 | -106,724,447 | 182,413,489 | 0.48% |
| 4. Shares held by foreign investors | 25,859,500 | 0.07% | 0 | 0 | 0 | -9,313,762 | -9,313,762 | 16,545,738 | 0.04% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign individuals | 25,859,500 | 0.07% | 0 | 0 | 0 | -9,313,762 | -9,313,762 | 16,545,738 | 0.04% |
| II. Non-restricted shares | 37,163,233,131 | 97.30% | 0 | 0 | 0 | 290,336,837 | 290,336,837 | 37,453,569,968 | 99.47% |
| 1. RMB ordinary shares | 36,470,349,004 | 95.48% | 0 | 0 | 0 | 290,336,837 | 290,336,837 | 36,760,685,841 | 97.63% |
| 2. Domestically listed foreign shares | 692,884,127 | 1.81% | 0 | 0 | 0 | 0 | 0 | 692,884,127 | 1.84% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 38,196,363,421 | 100.00% | 0 | 0 | 0 | -543,834,226 | -543,834,226 | 37,652,529,195 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicable
1. A total of 718,132,854 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 20 February 2023.
2. On 11 April 2023, the Company has lifted the restriction conditions of some restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme, and 102,260,780 sharesof restricted stock were actually lifted. During the Reporting Period, the Company repurchased and cancelled 15,648,174 shares of restricted stock that had been authorised to 57 incentive recipientsbut were still locked, resulting in a decrease of 117,908,954 shares of restricted stock of the Company's equity incentive.
3. During the Reporting Period, the equity incentive shares held by the Company's directors, supervisors, and senior management were lifted, resulting in an increase of 1,518,620 shares in themanagement lock-up shares. The management lock-up shares increased by 270,525 as a result of the Company's hiring of senior management and by 81,600 as a result of the resignation of theCompany's senior management. In total, the Company's management lock-up shares increased by 1,870,745.
4. During the Reporting Period, the total number of shares decreased by 543,834,226. Specifically, restricted shares decreased by 834,171,063, and non-restricted shares increased by 290,336,837.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and theprior accounting period, respectively:
? Applicable □ Not applicable
| Item | January-December 2023 |
| Basic earnings per share (RMB/share) | 0.06 |
| Diluted earnings per share (RMB/share) | 0.06 |
| Item | 31 December 2023 |
| Equity per share attributable to the Company’s ordinary shareholders | 3.41 |
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable ? Not applicable
2. Changes in Restricted Shares
? Applicable □ Not applicable
Unit: Share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares increased of the period | Restricted shares relieved of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Beijing Jing Guorui Soe Reform and Development Fund | 718,132,854 | 0 | 718,132,854 | 0 | - | 2023/2/20 |
| (L.P.) | ||||||
| Locked shares of executives | 2,366,636 | 1,870,745 | 0 | 4,237,381 | Locked shares of executives | - |
| Restricted shares for equity incentive | 312,630,800 | 0 | 117,908,954 | 194,721,846 | Restricted shares for equity incentive | - |
| Total | 1,033,130,290 | 1,870,745 | 836,041,808 | 198,959,227 | -- | -- |
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable ? Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures? Applicable □ Not applicable
1. During the Reporting Period, the Company repurchased and cancelled 15,648,174 restricted shares, resulting in a decrease of 15,648,174 shares of the Company's shares.
2. During the Reporting Period, the Company cancelled 528,186,052 shares in the special securities account for repurchase, resulting in a decrease of 528,186,052 shares of the Company’s shares.
3. Existing Staff-Held Shares
□Applicable ? Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
| Number of ordinary shareholders at the period-end | 1,262,795 (including 1,231,014 A-shareholders and 31,781 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,189,106（including 1,157,510 A-shareholders and 31,596 B-shareholders） | ||||
| 5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing) | |||||||
| Name of shareholder | Nature of | Sharehold | Total shares | Increase/decre | Restricted shares | Unrestricted | Shares in pledge, marked or |
| shareholder | ing percentage | held at the period-end | ase in the Reporting Period | held | shares held | frozen | |||
| Status | Shares | ||||||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.79% | 4,063,333,333 | - | 0 | 4,063,333,333 | N/A | 0 | |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 6.05% | 2,278,498,375 | 828,305,094 | 0 | 2,278,498,375 | N/A | 0 | |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.18% | 822,092,180 | - | 0 | 822,092,180 | N/A | 0 | |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.91% | 718,132,854 | - | 0 | 718,132,854 | N/A | 0 | |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.77% | 666,195,772 | - | 0 | 666,195,772 | N/A | 0 | |
| Fuqing Huirong Venture Capital Co., Ltd. | Domestic non-state-owned legal person | 1.42% | 535,302,540 | 1,318,200 | 0 | 535,302,540 | In pledge | 15,000,000 | |
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | Other | 0.93% | 349,999,919 | 349,999,919 | 0 | 349,999,919 | N/A | 0 | |
| Ningxia Risheng High-tech Industry Co., Ltd. | Domestic non-state-owned legal person | 0.90% | 339,525,766 | -11,400,000 | 0 | 339,525,766 | N/A | 0 | |
| Xu Lili | Foreign natural person | 0.89% | 336,599,581 | 95,274,283 | 0 | 336,599,581 | N/A | 0 | |
| FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled Fund Trust Plan | Other | 0.88% | 329,988,907 | 329,988,907 | 0 | 329,988,907 | N/A | 0 | |
| Strategic investors or general corporations becoming top-ten ordinary shareholders due to placing of new shares (if any) | Naught | ||||||||
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | ||||||||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. | ||||||||
| Special account for share repurchases (if any) among the top 10 shareholders | Naught | ||||||||
| Shareholdings of the top ten unrestricted ordinary shareholders | |||||||||
| Name of shareholder | Number of unrestricted ordinary shares held at the period-end | Shares by type | |||||||
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 2,278,498,375 | RMB ordinary share | 2,278,498,375 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | RMB ordinary share | 718,132,854 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Fuqing Huirong Venture Capital Group Co., Ltd. | 535,302,540 | RMB ordinary share | 535,302,540 |
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | 349,999,919 | RMB ordinary share | 349,999,919 |
| Ningxia Risheng High-tech Industry Co., Ltd. | 339,525,766 | RMB ordinary share | 339,525,766 |
| Xu Lili | 336,599,581 | RMB ordinary share | 336,599,581 |
| FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled Fund Trust Plan | 329,988,907 | RMB ordinary share | 329,988,907 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as between top 10 unrestricted ordinary shareholders and top 10 shareholders | 1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | 1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. totally held 339,525,766 shares in the Company, among which, 42,583,700 shares were held via its general securities account and 296,942,066 shares via its customer credit transactions secured securities account in Ping An Securities Co., Ltd. 2. Shareholder Xu Lili totally held 336,599,581 shares in the Company, among which, 10,657,200 shares were held via its general securities account, 248,713,498 shares via its customer credit transactions secured securities account in GF Securities Co., Ltd. and 77,228,883 shares via its customer credit transactions secured securities account in Ping An Securities Co., Ltd. 3. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company increase by 1,318,200 shares due to securities refinancing. 4. Except for the aforesaid, the remaining top 10 ordinary shareholders were not involved in securities refinancing. | ||
Note: The number of ordinary shareholders at the month-end prior to the disclosure of this Report is as of 20 March 2024. At the month-end prior to the disclosure of this Report (29 March 2024),the number of A-shareholders is 1,150,568. Due to the "T+3" trading rule for B-shares, the Company had had no access, by the date of this Report’s disclosure, to the number of its B-shareholdersat the month-end prior to the disclosure of this Report from China Securities Depository and Clearing Corporation Limited.Top 10 shareholders involved in refinancing shares lending? Applicable □ Not applicable
Unit: share
| Top 10 shareholders involved in refinancing shares lending | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent in refinancing and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent in refinancing and not yet returned at the period-end | ||||
| Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | Total shares | As % of total share capital | |
| Fuqing Huirong Venture Capital Co., Ltd. | 533,984,340 | 1.40% | 4,615,300 | 0.01% | 535,302,540 | 1.42% | 3,297,100 | 0.01% |
Changes in shares that the top 10 shareholders lend in refinancing compared with the prior period? Applicable □ Not applicable
Unit: share
| Changes in shares that the top 10 shareholders lend in refinancing compared with the end of the prior period | |||||
| Full name of shareholder | Increase/decrease in the Reporting Period | Shares lent in refinancing and not yet returned at the period-end | Shares in the common account and credit account plus shares lent in refinancing and not yet returned at the period-end | ||
| Total shares | As % of total share capital | Total shares | As % of total share capital | ||
| Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund | Increase | 0 | 0.00% | 349,999,919 | 0.93% |
| Xu Lili | Increase | 0 | 0.00% | 336,599,581 | 0.89% |
| FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled Fund Trust Plan | Increase | 0 | 0.00% | 329,988,907 | 0.88% |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | Decrease | 0 | 0.00% | 305,330,128 | 0.81% |
| Beijing Electronics Holdings Co., Ltd. | Decrease | 0 | 0.00% | 273,735,583 | 0.73% |
| Beijing Yizhuang Investment Holdings Co., Ltd | Decrease | 0 | 0.00% | 109,295,841 | 0.29% |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Companyconducted any promissory repo during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal personType of the controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment, electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Controlling shareholder’s holdings in other listed companies at home or abroad in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it directly held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.42% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.61% of the total shares amount of NAURA Technology Group Co., Ltd.; it directly held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing Yandong Microelectronic Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 245,055,177 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 4.40% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 26,068,680 shares of A shares of Shanghai New Vision Microelectronics Co., Ltd. (Stock Code: 688593), which accounted for 5.67% of the total shares of Shanghai New Vision Microelectronics Co., Ltd. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets managementType of the actual controller: legal person
| Name of actual controller | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment; electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Other listed companies at home or abroad controlled by the actual controller in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it directly held 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.42% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.61% of the total shares amount of NAURA Technology Group Co., Ltd.; it directly held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing Yandong Microelectronic Co.,Ltd. | |||
Change of the actual controller during the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Note: 1. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management CompanyLimited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through StockManagement Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing rightand usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd.through the agreement according to Implementation Protocol of Voting Right.
2. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed theActing-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
3. Beijing BOE Investment & Development Co., Ltd. completed the capital reduction on 1 December 2023 and became the wholly-owned subsidiary of Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the LargestShareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held byThem
□Applicable ? Not applicable
5. Other 10% or Greater Corporate Shareholders
? Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Principal activity |
| Beijing State-owned Capital Operation and Management Company Limited | Wu Lishun | 30 December 2008 | RMB50 billion | Operation and management of state-owned capital, investment and investment management; assets management; organize the reorganization as well as the merger and acquisition of the enterprise assets. (“1. The company shall not raise funds in any public manner; 2. It shall not conduct securities products and financial derivative transactions in any public manner; 3. |
It shall not issue loans; 4. It shall not provideguarantees for enterprises other those it investsin; 5. It shall not promise any principal guaranteeor minimum return to investors”; (Marketparticipants independently select the businessactivities and carry out the business activities inaccordance with laws and regulations; sales offood and business activities subject to approvalin accordance with laws and regulations,operations may be conducted only with theapproval of relevant government authorities;business activities prohibited and restricted bythe industrial policies of the state and the city.)
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□Applicable ? Not applicable
IV Specific Implementation of Share Repurchase during the Reporting PeriodProgress on any share repurchase
□Applicable ? Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable ? Not applicable
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds? Applicable □ Not applicableI Enterprise Bonds
□ Applicable ? Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds? Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
| Bond name | Abbr. | Bond code | Date of issue | Value date | Maturity | Balance | Coupon rate | Way of redemption | Trade place |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2022 | 25 March 2025 | 200,000 | 3.50% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| Appropriate arrangement of the investors (if any) | Only for the qualified investors | ||||||||
| Applicable trade mechanism | Centralized bidding trade and negotiated block trade | ||||||||
| Risk of delisting (if any) and countermeasures | Not | ||||||||
Overdue bonds
□ Applicable ? Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the InvestorProtection Clause? Applicable □ Not applicable
For the renewable corporate bonds “20BOEY1”, “20BOEY2”, “20BOEY3” and “22BOEY1”, 3 interest-bearing years shall beregarded as a cycle. At the end of each cycle, the issuer shall have the right to conditionally extend the issue of bonds foranother cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. The Company has fully redeemed the"20BOEY1", “20BOEY2" and “20BOEY3" renewable corporate bonds respectively on 28 February 2023, 20 March 2023 and27 April 2023. As at the date of approval of this report, the Company has not exercised the renewal option of issuer. Additionally,as the above-mentioned renewable corporate bonds incorporate the option of issuer to postpone interest payment, the Companyhas not exercised such option as at the date of approval of this report.
3. Intermediary
| Bond | Intermediary | Office address | Signature accountant | Contact person of intermediary | Contact number |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | China Securities Co., Ltd. | Rm. 2203, North Tower, Shanghai Securities Plaza, 528 Pudong Road South, Shanghai | Zhang Huan, Liu Jingyuan, Su Xing, Wang Ting | Zhu Mingqiang, Han Yong, Liao Ling, Xu Tianquan | 021-68801569 |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | China Lianhe Credit Rating Co., Ltd. | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | None | Li Jie, Sun Changzheng | 010-85679696 |
Indicate by tick mark whether above intermediary changed in the Reporting Period
□Yes ? No
4. List of the Usage of the Raised Funds
Unit: RMB’0,000
| Bonds | Total amount | Amount spent | Unused amount | Operation of special account for raised funds (if any) | Rectification of raised funds for violation operation (if any) | Whether is consistent with the usage, using plan and other agreements stipulated in the raising specification |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 200,000 | 200,000 | 0 | N/A | N/A | Yes |
The raised funds were used for project construction
□Applicable ? Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□Applicable ? Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable ? Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measuresas well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable ? Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable ? Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable ? Not applicable
No such cases in the Reporting Period.V Losses of Scope of Consolidated Financial Statements during the Reporting PeriodExceeding 10% of Net Assets up the Period-end of Last Year
□Applicable ? Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable ? Not applicable
VII Whether there was any Violation of Rules and Regulations during the ReportingPeriod
□Yes ? No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: RMB’0,000
| Item | 31 December 2023 | 31 December 2022 | Change |
| Current ratio | 1.59 | 1.66 | -4.22% |
| Debt/asset ratio | 52.81% | 51.96% | 0.85% |
| Quick ratio | 1.32 | 1.39 | -5.04% |
| Item | 2023 | 2022 | Change |
| Net profit before exceptional gains and losses | -63,256 | -223,811 | 71.74% |
| EBITDA/debt ratio | 27.05% | 25.57% | 1.48% |
| Times interest earned | 1.45 | 1.01 | 43.56% |
| Times interest earned of cash | 7.68 | 8.88 | -13.51% |
| EBITDA-to-interest coverage (times) | 9.82 | 9.45 | 3.92% |
| Loan repayment rate | 100.00% | 100.00% | 0.00% |
| Interest coverage | 100.00% | 100.00% | 0.00% |
Part X Financial StatementsI Independent Auditor’s Report
| Type of the independent auditor’s opinion | Standard unqualified audit opinion |
| Date of signing this report | 29 March 2024 |
| Name of the independent auditor | KPMG Huazhen Certified Public Accountants (LLP) |
| Reference number of auditor’s report | KPMGHZSZ No. 2404989 |
| Name of the certified public accountants | Su Xing, Chai Jing |
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.
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; |
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. | |
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; |
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. |
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.
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, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design 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.
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 | ? | 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) | ? | - | ? | (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) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V. 45 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (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 | ? | - | ? | - | ? | 209,367,057 | ? | 42,370,558 | ? | 251,737,615 |
| (2) Used special reserve | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (142,894,655) | ? | - | ? | - | ? | (142,894,655) | ? | (29,280,043) | ? | (172,174,698) |
| 6. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | V. 11/41 | - | ? | - | ? | 61,662,689 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 61,662,689 | ? | 1,229,195 | ? | 62,891,884 |
| (2) Others | V. 41 | - | ? | - | ? | (1,205,055,942) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (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) | ? | (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 | ? | 2,301,848,242 |
| (2) Repurchase of treasury shares | V. 42 | - | ? | - | ? | - | ? | 1,048,154,539 | ? | - | ? | - | ? | - | ? | (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 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 1,989,320,755 | ? | - | ? | 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) | ? | - | ? | (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) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (533,600,000) | ? | - | ? | (533,600,000) |
| (4) Distributions to shareholders | V. 45 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (7,958,923,130) | ? | (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 | ? | - | ? | - | ? | - | ? | - | ? | 274,685,689 | ? | 845,261 | ? | 275,530,950 |
| (2) Disposal of equities in subsidiaries | V. 41 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,154,255,778) | ? | (1,154,255,778) |
| (3) Others | V. 41 | - | ? | - | ? | 1,063,018,863 | ? | - | ? | - | ? | - | ? | - | ? | 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) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V. 45 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (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 | ? | - | ? | - | ? | - | ? | - | ? | - | 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) | ? | - | ? | - | ? | - | ? | - | ? | - | (533,600,000) | |
| (4) Distributions to shareholders | V. 45 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (7,958,923,130) | (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 | ? | - | ? | - | ? | - | ? | - | ? | 141,386,796 |
| (2) Others | ? | - | ? | - | ? | (60,093,618) | ? | - | ? | - | ? | - | ? | - | ? | (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 solely
payments 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 collectingcontractual 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 and
settle 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 retainssubstantially 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 initialrecognition.
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 environment
that 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 business
combination 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 not
involving 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 combinationis 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 acquisition
and construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above 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 beidentified 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 producenew 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 theGroup 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 of
ownership of the goods to the customer; and- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether 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 thegoods 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 fromthe 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 in
continuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets 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 the
goods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
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 value
guarantee;- 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 or
termination 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 a
separate 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) | ? | (841,937) | ? | - | ? | - | ? | (111,361) | ? | (111,361) |
| Other changes | - | ? | - | ? | 11,507 | ? | 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 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 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 andChengdu Display 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 | ? | 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 | ||||||||||||
| 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 | - | ? | - | ? | 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).
(c) As at 31 December 2023, the consolidated retained earnings attributable to the
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 | 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 | Chengdu, China | ? | R&D, design, manufacturing, and sale of new display devices and components | RMB 25,000,000,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | RMB 2,700,000,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Development of TFT-LCD, manufacturing and sale of LCD | RMB 8,941,456,800 | 97.17% | 2.83% | Founded by investment | ||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | RMB 9,750,000,000 | 99.97% | 0.03% | Business combinations involving entities not under common control | ||||
| Ordos Yuansheng Optoelectronics Co., Ltd. | Ordos, China | Ordos, China | ? | Manufacture and sales of AM-OLED products and auxiliary products | RMB 11,804,000,000 | 100% | - | Founded by investment | ||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Chongqing, China | Chongqing, China | ? | R&D, production and sales of semi-conducting display devices, complete machine and related products; import & export of goods and technology consulting | RMB 3,845,200,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | Fuzhou, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products (separate business site); self-support and agency for the import and export of various goods and technologies, except those goods and technologies that are restricted by the country or prohibited from import and export; business management consulting and services; property leases; machinery and equipment leases; technology development, transfer, consulting and services related to LCD products (For business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of the relevant government authorities). | RMB 17,600,000,000 | 86.08% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Video Technology Co., Ltd. | Beijing, China | 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 | Beijing, China | ? | Manufacture and sale of vacuum electronic products | RMB 33,250,000 | 57.89% | - | Founded by investment | ||||
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Manufacture and sale of electronic tubes | RMB 32,000,000 | 100% | - | Founded by investment | ||||
| Beijing Yinghe Century Co., Ltd. | Beijing, China | Beijing, China | ? | Management of engineering projects; real estate development; public parking lot for motor vehicles service; market survey | RMB 233,105,200 | 100% | - | Founded by investment | ||||
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | Suzhou, China | ? | R&D, production and sales of LCD, back light for display and related components | RMB 826,714,059 | 95.17% | - | Founded by investment | ||||
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Development, manufacture and sale of liquid display for mobile termination | USD 5,000,000 | 75% | - | Founded by investment | ||||
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | Langfang, China | ? | Manufacture and sale of mobile flat screen display technical products and related services | RMB 1,358,160,140 | 100% | - | Founded by investment | ||||
| Beijing BOE Energy Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Design, consultancy and service of solar cell, photovoltaic system, wind power system and solar thermal system as well as the assembly units; energy-saving service | RMB 1,242,690,058 | 68.40% | - | Founded by investment | ||||
| Beijing BOE Multimedia Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology development, technology transfer, technology consulting and technology services; sales of computer software, hardware and auxiliary equipment, digital video and audio technology products, electronic digital products, video telephone, mobile phones and spare parts, hardware (excluding electric bicycle), household appliances, photographic equipment, sporting goods, Class I medical devices, lamps, stationery, cosmetics, bathroom appliances, knitwear and textile, clothing, daily necessities, timepieces, glasses, toys and food; equipment maintenance; import and export of goods; basic software services; application software service; machinery and equipment leases; design, production, agency and publication of advertisements. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.) | RMB 400,000,000 | 100% | - | Founded by investment | ||||
| Beijing BOE Life Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | RMB 24,000,000 | 100% | - | Founded by investment | ||||
| ? | ? | ? | ? | ? | ? | 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 | Ordos, China | ? | Energy investment | RMB 37,440,000 | - | 100% | Founded by investment | ||||
| BOE Semi-conductor Co., Ltd. | Beijing, China | Beijing, China | ? | Processing, manufacturing and sales of precision electronic components, semi-conductor devices, micro modules, microelectronic devices and electronic materials; import & export of goods | RMB 11,250,000 | 84% | - | Founded by investment | ||||
| BOE Optoelectronics Holding Co., Ltd. | Hong Kong, China | British Virgin Islands | ? | Investment holding | USD 1,000,000,000 | 100% | - | Founded by investment | ||||
| BOE (Korea) Co., Ltd. | Korea | Korea | ? | Wholesale and retail trade | KRW 95,000,000 | 100% | - | Founded by investment | ||||
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | 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 | Beijing, China | ? | Colour TV set, display tube, colour RPTV projection tube and materials of electronic components; property management and parking services, etc. | RMB 325,754,049 | 88.80% | - | Business combinations involving entities not under common control | ||||
| Hefei BOE Display Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, R & D and production of products related to TFT-LCD and the supporting facility | RMB 24,000,000,000 | 36.67% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Technology Development Co., Ltd. | Beijing, China | Beijing, China | ? | Development, transfer, consulting and service of technology | RMB 1,000,000 | 100% | - | Founded by investment | ||||
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | RMB 800,000,000 | 75% | - | Founded by investment | ||||
| Beijing BOE Real Estate Co., Ltd. | Beijing, China | Beijing, China | ? | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | RMB 55,420,000 | 70% | - | Founded by investment | ||||
| Beijing BOE Marketing Co., Ltd. | Beijing, China | Beijing, China | ? | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices | RMB 50,000,000 | 100% | - | Founded by investment | ||||
| 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 | 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 | Kunming, China | ? | Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases | RMB 3,040,000,000 | 79.10% | - | Founded by investment | ||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | Mianyang, China | ? | R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | RMB 26,000,000,000 | 83.46% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer | RMB 4,786,482,400 | 100% | - | Founded by investment | ||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Wuhan, China | Wuhan, China | ? | Investing, researching, manufacturing and selling TFT-LCD products and accessory products | RMB 26,000,000,000 | 47.14% | - | Business combinations involving entities not under common control | ||||
| Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”) | Chongqing, China | Chongqing, China | ? | R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting | RMB 26,000,000,000 | 38.46% | - | Business combinations involving entities not under common control | ||||
| Nanjing BOE Display Technology Co., Ltd. | Nanjing, China | Nanjing, China | ? | R&D, production and sale of TFT-LCD panels, colour filters and LCD whole-widget modules; providing products and business-related services, as well as other business activities related to the above; import and export of proprietary and agent commodities and technologies | RMB 17,500,000,000 | 80.83% | - | Business combinations involving entities not under common control | ||||
| 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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.
(c) Sensor business - The sensor and application solutions integrate manufacturing
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.
(c) The ageing analysis of other receivables of the Company is as follows:
| ? | 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 been
completed, 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 Information Disclosures ofCompanies Issuing Public Shares No.1 - Extraordinary Gains and Losses (Revised in2023).
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 and Earnings PerShare” (2010 revised) issued by the CSRC and relevant accounting standards, the Group’s returnon net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | ? | Basic earnings per share | ? | Diluted earnings per share |
| ? | ? | ? | ? | ? | ? |
| Net profit attributable to the Company’s ordinary equity shareholders | 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 ordinary shareholdersof the Company by the weighted average number of ordinary shares outstanding:
| ? | 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 profit attributableto ordinary shareholders of the Company by the weighted average amount of consolidated netassets:
| ? | 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%) |
???
???