INTERIM REPORT 2019
August 2019
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. Liu Xiaodong, President, Ms.Sun Yun, Chief Financial Officer, and Ms. Yang Xiaoping, 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 directors of the Company except for the following attended in person the Boardmeeting for the review of this Report and its summary.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Pan Jinfeng | Director | Due to work | Li Yantao |
| Wang Chenyang | Director | Due to work | Li Yantao |
| Li Xuan | Independent director | Due to work | Hu Xiaolin |
The Company has no interim dividend plan, either in the form of cash or stock.Any plans for the future, development strategies and other forward-looking statementsmentioned in this Report and its summary shall NOT be considered as absolute promises ofthe Company to investors. Therefore, investors are reminded to exercise caution when makinginvestment decisions. For further information, see “X Risks Facing the Company andCountermeasures” in Part IV herein.This Report has been prepared as per the Chinese Accounting Standards for BusinessEnterprises and other relevant regulations.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Business Summary ...... 10
Part IV Operating Performance Discussion and Analysis ...... 14
Part V Significant Events ...... 26
Part VI Share Changes and Shareholder Information ...... 42
Part VII Preferred Shares ...... 49
Part VIII Directors, Supervisors and Senior Management ...... 50
Part IX Corporate Bonds ...... 55
Part X Financial Statements ...... 56
Part XI Documents Available for Reference ...... 234
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 |
| The Stock Listing Rules | The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in November 2018) |
| SZSE, the Stock Exchange | The Shenzhen Stock Exchange |
| The Articles of Association | The Articles of Association of BOE Technology Group Co., Ltd. |
| The Company Law | The Company Law of the People’s Republic of China |
| The Securities Law | The Securities Law of the People’s Republic of China |
| OASIS Hospital | OASIS International Hospital |
| IHS Markit | Information Handling Services, Inc. & Markit Ltd. |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| AMQLED | Active Matrix Quantum-dot Light Emitting Diode |
| OLED | Organic Light Emitting Diode |
| VR/AR | Virtual Reality /Augmented Reality |
| IoT | Internet of Things |
| AI | Artificial Intelligence |
| IFI | IFI CLAIMS Patent Services |
| IEC | International Electrotechnical Commission |
| LCD | Liquid Crystal Display |
| LTPS | Low Temperature Poly-silicon |
| FPXD | Flat Panel X-ray Detector |
| TDDI | Touch and Display Driver Integration |
| WQHD | Wide Quad High Definition, i.e. 2560×1440 definition |
| COF+COB | Chip On Film + Chip On Board |
| WXGA | Wide Extended Graphics Array, i.e. 1280×800 definition |
| WUXGA | Widescreen Ultra eXtended Graphics Array, i.e. 1920×1200 definition |
| OGM Tilt Active Pen | One Glass of Metal-mesh Tilt Active Pen |
| MSMX-ray | Metal-Silicon-Metal X-ray |
| d-PCR | Digital Polymerase Chain Reaction |
| ITU | International Telecommunication Union |
| ICT | Information and Communication Technology |
| 2019 SID Best in Show | The “Best in Show” Award granted by The Society for Information Display for 2019 |
| COPQ | Cost Of Poor Quality |
| APS | Active Pixel Sensor |
| MEMS | Micro-Electro-Mechanical System |
| SDK | Software Development Kit |
| BD Cell | BOE Dual Cell |
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Changed stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. (if any) | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Chen Yanshun | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | Huang Rong |
| 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 |
| Email address | liuhongfeng@boe.com.cn | huangrong@boe.com.cn |
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address andemail address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2018 Annual Report.
2. Media for Information Disclosure and Place where this Report is LodgedIndicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’speriodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing theCompany’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information canbe found in the 2018 Annual Report.IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective restatements:
Changes to the accounting policies.
| Item | H1 2019 | H1 2018 | Change (%) | |
| Before | Restated | Restated | ||
| Operating revenue (RMB) | 55,039,208,687.00 | 43,473,904,966.00 | 43,473,904,966.00 | 26.60% |
| Net profit attributable to the listed company’s shareholders (RMB) | 1,668,448,449.00 | 2,975,206,500.00 | 2,975,206,500.00 | -43.92% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 651,490,434.00 | 978,868,759.00 | 1,503,020,477.00 | -56.65% |
| Net cash generated from/used in operating activities (RMB) | 11,594,984,349.00 | 11,439,605,846.00 | 11,581,507,174.00 | 0.12% |
| Basic earnings per share (RMB/share) | 0.048 | 0.085 | 0.085 | -43.53% |
| Diluted earnings per share (RMB/share) | 0.048 | 0.085 | 0.085 | -43.53% |
| Weighted average return on equity (%) | 1.92% | 3.45% | 3.45% | -1.53% |
| Item | 30 June 2019 | 31 December 2018 | Change (%) | |
| Before | Restated | Restated | ||
| Total assets (RMB) | 317,061,830,609.00 | 304,028,491,385.00 | 304,028,491,385.00 | 4.29% |
| Equity attributable to the listed company’s shareholders (RMB) | 86,523,347,828.00 | 85,856,748,703.00 | 85,856,748,703.00 | 0.78% |
Reasons for the changes to the accounting policies and correction of accounting errors:
In the 2018 Annual Report, the net profit attributable to the listed company’s shareholders before exceptional gains and losses wasrestated according to the audit results. According to the interpretations of the regulatory document CK [2018] No.15, governmentsubsidies received, whether related to assets or income, shall be presented as cash generated from operating activities” in the cashflow statements.V Accounting Data Differences under China’s Accounting Standards for Business Enterprises(CAS) and International Financial Reporting Standards (IFRS) and Foreign AccountingStandards
1. Net Profit and Net Asset Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -672,378.00 | N/A |
| Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents | 0.00 | N/A |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 1,152,320,986.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 0.00 | N/A |
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 0.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | N/A |
| Gain or loss on assets entrusted to other entities for investment or | 0.00 | N/A |
| management | ||
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | N/A |
| Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair prices | 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 | N/A |
| Gain or loss on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | N/A |
| Gain or loss on fair-value changes in trading and derivative financial assets and liabilities & income from disposal of trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 79,628,679.00 | N/A |
| Reversed portions of impairment allowances for accounts receivable and contract assets which are tested individually for impairment | 701,302.00 | N/A |
| Gain or loss on loan entrustments | 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 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current profit or loss | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | N/A |
| Non-operating income and expense other than the above | 51,173,190.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | N/A |
| Less: Income tax effects | 70,992,401.00 | N/A |
| Non-controlling interests effects (net of tax) | 195,201,363.00 | N/A |
| Total | 1,016,958,015.00 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Part III Business SummaryI Principal Activity of the Company in the Reporting PeriodIs the Company subject to any industry-specific disclosure requirements?No.Founded in April 1993, BOE Technology Group Co., Ltd. (“BOE”) is an IoT company providing intelligent interface products andservices for information interaction and human health. In 2019, BOE adhered to its strategy of transforming further towards an IoTcompany. Its seven business groups kept promoting transformation and growth, tapping into IoT application needs and sharpening itscompetitive edges in market segments. Working with the B2B Chief Sales Platform Officer, the OMO Chief Sales Platform Officer,the Branding and Global Market Center, the Information Technology Development Center, and other professional service platforms,the three major business divisions of interface devices (D), smart IoT (S) and smart medicine and engineering (H) continued toenhance marketing, technological and systematic abilities and promote fast growth.
1. Interface Devices (D)
Division D consists of the Display and Sensor BG, and the Sensor and Application Solution BG. The Display and Sensor BG designsand manufactures related devices with a B2B model. The display device business offers TFT-LCD, AMOLED, Microdisplay andother intelligent interface devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL), tileddisplay screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare, mobile payment,interactive whiteboards, etc. And the sensor device business provides integrated design and manufacturing services of sensor devicesfor use in medical detection, household detection, communication and transportation, smart homes, etc. The Sensor and ApplicationSolution BG provides sensor system solutions for B2B customers of medical imaging, biological detection, smart screens, liquidcrystal antennas, fingerprint identification and the like, with products including flat panel X-ray detectors (FPXD), digitalmicrofluidic chips, PDLC glass, fingerprint identification systems, etc.
2. Smart IoT (S)
Division S is divided into the Intelligent Manufacturing Service BG, the IoT Solution BG and the Digital Art IoT Platform BG. TheIntelligent Manufacturing Service BG designs and manufactures, for its global B2B partners, the most competitive whole-widgetsmart manufacturing solutions of TVs, monitors, electronic blackboards, electronic signs, commercial display products, electronictags, self-service and mobile terminals, among others. Supported by AI, big data and cloud computing technologies, the IoT SolutionBG focuses on segment markets and offers integrated IoT solutions of smart retail, smart finance, digital hospitals, smart businessoffices, smart homes, smart transportation, smart education and smart energy, empowering these industries. The Digital Art IoTPlatform BG with a B2C IoT platform model is committed to brightening everyday life with the beauty of art and offering the bestuser experience. The featured product, BOE iGallery, integrates voice interaction and other information technologies with digital art,providing users with various services including artistic appreciation, art knowledge, picture book reading, photo sharing, art mall andvisual aesthetics in multiple scenarios such as an art gallery at home, aesthetic enlightenment for children and offices. It helpsintroduce art to everyone and unveils more beauty of art.
3. Smart Medicine and Engineering (H)
Division H includes the Mobile Healthcare IoT Platform BG and the Smart Healthcare Service BG. The Mobile Healthcare IoTPlatform BG with a B2C IoT platform model, integrating smart terminals and apps, as well as based on AI and big data algorithms,enables users to enjoy personalized healthcare services without leaving home, including vital signs monitoring and analysis, AI-baseddisease risk prediction, health courses from experts, online diagnosis and registration for medical examination. The Smart HealthcareService BG covers digital hospitals, digital human body, regenerative medicine, healthcare parks, etc. It offers B2C customers
online-and-offline integrated professional healthcare services focused on digital medical care and supplemented by smart nursinghome and healthcare park integrated solutions, as well as by industrial park operations and the like.II Significant Changes in Major Assets
1. Significant Changes in Major Assets
| Major assets | Main reason for significant changes |
| Equity assets | N/A |
| Fixed assets | Transfer of new project into fixed assets in the Reporting Period |
| Intangible assets | N/A |
| Construction in progress | N/A |
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any industry-specific disclosure requirements?No.
1. The Company firmly promoted and implemented innovation and transformation and further improved globalcompetitivenessBOE firmly promoted and implemented the development strategy of IoT transformation. Three major business divisions, namely theInterface Devices, the Smart IoTand the Smart Medicine and Engineering, realized fast development, which further improved itsglobal market competitiveness.The Interface Devices: Construction of the new line of the Display and Sensor BG proceeded in order, and the 6
th
GenerationChengdu Flexible AMOLED Production Line’s shipping quantity in the first half of the year increased over 300% when compared tothat last year with the product yield achieving a new high; the 10.5
thGeneration BOE Hefei TFT-LCD Production Line realized massproduction, and the product yield exceeded 90%; the 10.5
th
Generation BOE Wuhan TFT-LCD production line was fully equippedwith various devices; the 6
thGeneration Chongqing Flexible AMOLED Production Line was smoothly constructed as scheduled.As for the Sensor and Application Solution BG, the occupancy of various medical imaging products exceeded 70% on various clientsides; products were steadily delivered to overseas customers; customized products were successfully certified. In fact, the smartscreens high-speed train project was reviewed and approved; the double-curved LCD smart dimming window was launched to theworld and it’s able to realize Level-7 dynamic light dimming; the fingerprint identification capacitance-type product was smoothlydeveloped and samples were sent to the client; in terms of Flow Cell Gene Detection Products, the mass production and deliverywork were realized.The Smart IoT: As for the smart factory 1 upgrade project of the Intelligent Manufacturing Service BG, various devices were movedin, and they would be put into service as scheduled; smart factory 2 large-size flexible automation equipment was manufactured asscheduled. In the Digital Art IoT Platform BG, iGallery M2 appeared on the market; the R&D of new iGallery S3 and R1 was carriedout smoothly as planned with the transactions increasing over 100% when compared to that last year. Meanwhile, in the IoT Solution
BG, smart finance obtained more than 1000 branch transformation orders; in the first half of the year, over 330 branches weresuccessfully transformed in total, and the bank client behavior trace analysis system was also independently developed; smartpolitical education independently developed and completed the 75” 8K broadcasting system, and for digital exhibitions, thebenchmarking project—The Palace Museum Hall of Moral Cultivation Digital Exhibition was successfully implemented. The SmartMedicine and Engineering: the Mobile Healthcare IoT Platform BG successfully launched 15 peripheral productsincluding smartwatch, body fat calculator and blood pressure meter etc.. In the first half of the year, the APP registered users realized amonth-on-month increase of over 220%. In the Smart Healthcare Service BG, the Oasis International hospital’s outpatient visitsrealized a year-on-year increase of 33%, and the outpatient service satisfaction was further improved; Hefei Hospital was completelyopen for service, and the accumulated outpatient visits exceeded 30,000. And the medical insurance coverage expand to Hefei city aswell as its four subordinated counties and one district achived in Hefei Hospital.
2. The Company stuck to client orientation and further increased its market shares.
According to IHS Markit data, the shipment of BOE display screens was ranking the 1
st
in the world with the shipping area realizinga year-on-year increase of 23%. Special effort was made to continuously enhance the market share of five major mainstream products,and various products such as MBL LCD smart phone, TPC, NB, MNT and TV continued their leading role all over the globe. Theshipping of innovative applications realized a year-on-year growth of 21%, and the shipping area increased 49% on a year-on-yearbasis. In particular, the market share of ESL and wearable products ranked the 1
stin the world and the splicing products the 2
nd. Thesales and internal shipping occupancy of various high value-added products like featuring HD, touch control, narrow frame and largesize and the internal shipping occupancy largely increased. For OLED products, various first-class brand clients at home and abroadwere introduced gradually and the flexible OLED smart phone’s market share ranked 2
nd
in the world.Besides, a new breakthrough was made in the Smart Manufacturing Service Finished Product Market. Finished TV sales in Europerealized a 4-times year-on-year increase, and various large-screen project clients were developed; the market share of finished HDMNT, e-sports products and hi-end machines was continuously improved; the mass production of commercial display 55’’ splicingmachines and POS machines was steadily carried out.
3. The Company reinforced independent innovation and further promoted innovation ability.The Company has made great achievement in various products and the technological development. For example, 6.4’’ blind holeproject’s mass production was successfully introduced and 11’’ TDDI product development was completed; 23.8’’ peep-proofproducts were successfully launched; the first BD Cell product in the world realized the super high contrast and won 2019 SID Bestin Show Award; in early July, the Company cooperated with its clients to launch the first folding-screen TV; the samples of thesilica-based Micro-OLED product with world highest PPI 0.39” were sent to the clients; for the printing OLED 55” 8K TechnologyDevelopment Project, various full-color prototypes were lightened; the car-mounted A-column see-through displays’ overallsolutions were completed; for the complete appliance development, 21.5”-32” full series of e-sports products were covered and themass production was initiated; besides, 32’’ and 43’’ low-cost non-frame series of products were also developed; the capacitancetouch-control full-lamination products were successfully developed; the development of conference table cards and medical labelswas completed and the mass production was conducted. APS MSM 4” X-ray detection and imaging prototypes were wellmanufactured; for the quick-response LCD antenna project, 4*4 unit antenna design and manufacturing were completed; in respect ofthe glass-based MEMS project, samples of the capacitance ultrasonic transducer were packed and sealed and tested, and variouscomponent indicators were met; the waveguide display brightness improved 60%; the glass-based digital PCR micro-fluidic chip wasapplied to successfully recognize the glioma’s clinic specimen.The Company also made certain progress in the field of AI and the big data technology application, and independently developed thesmart network marketing & advertising management system, the super HD distance diagnosis system, the cloud screen informationsending system, the smart home whole house control system and other software systems; the technological development of tablecards, smart panels, car-mounted double-sided screen and the distance diagnosis ALL-IN-ONE machine was completed; the similarpicture search, the picture processing SDK, the knowledge mapping and other technologies were properly applied to initiate theproduction.
The patent layout was continuously optimized. In the first half of the year, there were 4872 new patent applications, of which,overseas patents exceeded 35%, and flexible OLED, sensor, AI, big data and other significant patents exceeded 2500. Meanwhile,2953 new patent licenses were added, of which, American patent licenses exceeded 1200. In respect of the technical standard, 25external technical standards were formulated and revised in the first half of the year. In particular, the “see-through display” IECInternational Standard was officially issued.
4. The Company further improved operational efficiency via strengthening lean management.Continuous improvement was made in the production line’s technological level and process capabilities. The 10.5
th
Generation HefeiTFT-LCD Production Line was put into service in full capacity; the 8.5
th
Generation Chongqing TFT-LCD Production Line MBLcomprehensive shipping rate exceeded 94%; the 8.5
th
Generation Fuzhou TFT-LCD Production Line’s monthly productivity couldreach 165Ksh, setting a new high, and the yield rate was stabilized at above 97%; the 6
thGeneration Hefei TFT-LCD ProductionLine’s product structure was continuously optimized with the high value-added products occupying over 90%. Through advocatingthe energy saving and emission reduction and strictly controlling the consumption of spare parts, the overall fixed out-of-pocket costdeclined about 6% on a year-on-year basis. The business quality management level of the display service would improvecontinuously. Meanwhile, the smart manufacturing service finished machine’s COPQ declined to 0.93%, and the material abnormalhours decreased over 35% on a year-on-year basis.
Part IV Operating Performance Discussion and AnalysisI Overview
The first half of 2019 saw complicated and changeable global political and economic conditions. Global economic growth sloweddown under mounting downward pressure. In terms of the semi-conductor display industry, the massive and quick release ofproduction capacity of advanced-generation products, weak market demand and severe oversupply led to decreasing panel prices anda considerable drop in profitability. Under the double pressures of the China-U.S. trade friction and an industry though, the Companywas faced with extremely severe challenges in its operations. On the other hand, in view of good market opportunities for innovativedisplay application, sensors, smart IoT and smart medicine and engineering, the Company carried on with its IoT transformationstrategy. From an overall perspective, the Company achieved stable growth in operating revenue against market pressure and ashrinking market size in the first half of 2019. For this period, the Company recorded operating revenue of approximately RMB55billion, up by around 27% year-on-year.
1. The Company’s Market Position was Steadily Improved.
The shipment of complete display panels was ranking the first place in the world, and the shipping area was accordingly increasingon a year-on-year basis; five major products of smart phone LCD, table PCs display screen, laptop display screen, displayer displayscreen and TV display screen continued to make their shipping quantity rank the first place in the world. Meanwhile, the shippingquantity and shipping area of innovation application products increased largely. Nevertheless, the market share of ESL and wearableproducts ranked first in the world and the splicing products the second. The sales of various high value-added products featuring HD,touch control, narrow frame and Borderless/65"+ and the internal shipping occupancy largely increased.The first AMOLED (flexible) production in the Mainland of China - Chengdu 6
thgeneration of AMOLED (flexible) production linerealized steady improvement of yield and supply for first-tire brand manufacturers, and the shipping quantity in the first half of theyear exceeded ten million pieces; the Mianyang 6
thAMOLED (flexible) production line was applied for the mass production; theflexible OLED smart phone’s market occupancy was largely improved; the first TFT-LCD Production Line of the highest generationin the world-- the 10.5
thGeneration BOE Hefei TFT-LCD Production Line realized the production in a full capacity.As for the smart factory 1 upgrade project of the Intelligent Manufacturing Service BG, various devices were moved in, and theywould be put into service as scheduled; Smart factory 2 large-size flexible automation equipment was manufactured as scheduled.New breakthrough was made in developing the smart manufacturing service complete machine market. The finished TV salesachieved on the domestic market realized a year-on-year increase of 60%, and 32’’ and 43’’ low-cost non-frame series of productswere developed; the mass production of non-frame full-display series of products was fully initiated; finished MNT products weresuccessfully developed and the full series of 21.5"-32"Gaming products were put into mass production. As a result, the shippingquantity geared to the finished display strategy clients increased on a year-on-year basis.The operating revenue and the outpatient visits achieved by OASIS International Hospital increased accordingly, and the medicalsatisfaction was further improved. In March, Hefei Hospital was completely open for service, and the outpatient visits exceeded30,000 with its medical insurance coverage spreading to Hefei City and four subordinated counties and one district. The MobileHealthcare IoT Platform BG put 15 peripheral products on the market for sale including smart watch, body fat calculator and bloodpressure meter etc.. In the first half of the year, the APP registered users realized a month-on-month increase of over 220%.
2. The Innovation and Transformation Business was orderly carried out.
The occupancy of various medical imaging products exceeded 70% on various client sides; products were steadily delivered tooverseas customers; customized products were successfully certified. In terms of Flow Cell Gene Detection Products, the massproduction and delivery work were realized. The double-curved LCD smart dimming window was launched to the world and it’s put
into service of Beijing-Xiong'an High-speed Train; samples of the fingerprint identification capacitance-type product were sent to 7door lock clients. Meanwhile, the smart finance obtained more than 1000 branch transformation orders; in the first half of the year,over 330 branches were successfully transformed in total; in addition, the smart political education business independently developedthe 75” 8K broadcasting system, and for digital exhibitions, the benchmarking project—The Palace Museum Hall of MoralCultivation Digital Exhibition was successfully implemented.In April, the new iGallery M2 was launched on the market, and the R&D of the new iGallery S3 and new children’s picture bookreader R1 proceeded as scheduled; the product’s transactions increased over 100% on a year-on-year basis; the APP newly-addedregistered users saw a year-on-year increase of 27%. In the first half of the year, the operating revenue of smart retails achieved ayear-on-year increase of about 50%; the service-oriented transformation made great progress, and the mode of “retails=service” wasimplemented among particular clients.The Mobile Healthcare IoT Platform BG put 15 peripheral products on the market for sale including smart watch, body fat calculatorand blood pressure meter etc.. In the first half of the year, the APP registered users and the monthly active users increasedsignificantly.In term of OMO, the operating revenue and the sales volume all achieved corresponding increase; in the first half of the year, 51urban partners were developed in total.
3. The Technological Innovative Ability was continuously improved.
The number of patent applications remained its rapid growth trend. In the first half of the year, there were 4872 new patentapplications, of which, patent for invention occupied over 90% and overseas patents exceeded 35%. Meanwhile, flexible OLED,sensor, AI, big data and other significant patents exceeded 2500. 2953 new patent licenses were added, of which, American patentlicenses exceeded 1200. Accordingly, certain progress was also made in the R&D of various transformation technologies related tothe sensors, AI and the big data and the medicine-industry integration. In respect of the technical standard, 25 external technicalstandards were formulated and revised in the first half of the year. In particular, the “see-through display” IEC International Standardwas officially issued.
II Analysis of Core BusinessesSee “I Overview” above.Year-on-year changes in key financial data:
Unit: RMB
| Item | H1 2019 | H1 2018 | Change (%) | Main reason for change |
| Operating revenue | 55,039,208,687.00 | 43,473,904,966.00 | 26.60% | -- |
| Cost of sales | 45,812,333,231.00 | 35,144,582,131.00 | 30.35% | Increased along with the sales |
| Selling expense | 1,365,287,286.00 | 1,294,782,594.00 | 5.45% | -- |
| Administrative expense | 2,197,183,494.00 | 2,143,708,550.00 | 2.49% | -- |
| Finance costs | 1,166,753,372.00 | 1,201,173,655.00 | -2.87% | -- |
| Income tax expense | 673,775,041.00 | 659,568,560.00 | 2.15% | -- |
| R&D expense | 3,893,611,519.00 | 3,645,381,340.00 | 6.81% | -- |
| Net cash generated from/used in | 11,594,984,349.00 | 11,581,507,174.00 | 0.12% | -- |
| operating activities | ||||
| Net cash generated from/used in investing activities | -21,610,149,309.00 | -23,949,538,497.00 | N/A | -- |
| Net cash generated from/used in financing activities | 6,881,107,844.00 | 8,148,650,744.00 | -15.56% | -- |
| Net increase in cash and cash equivalents | -3,107,362,959.00 | -4,823,287,992.00 | N/A | -- |
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.Breakdown of core businesses:
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 | ||||||
| Interface Devices | 50,896,645,297.00 | 42,975,736,712.00 | 15.56% | 29.94% | 33.67% | -2.36% |
| Smart IoT | 7,521,943,172.00 | 6,831,554,480.00 | 9.18% | 2.38% | 1.39% | 0.89% |
| Smart Medicine and Engineering | 663,753,643.00 | 322,726,810.00 | 51.38% | 26.09% | 31.71% | -2.07% |
| Others | 3,567,353,945.00 | 4,206,107.00 | 99.88% | 40.63% | -17.31% | 0.08% |
| Offset | -7,610,487,370.00 | -4,321,890,878.00 | 43.21% | 24.65% | 8.18% | 8.64% |
| By product category | ||||||
| Interface Devices | 50,896,645,297.00 | 42,975,736,712.00 | 15.56% | 29.94% | 33.67% | -2.36% |
| Smart IoT | 7,521,943,172.00 | 6,831,554,480.00 | 9.18% | 2.38% | 1.39% | 0.89% |
| Smart Medicine and Engineering | 663,753,643.00 | 322,726,810.00 | 51.38% | 26.09% | 31.71% | -2.07% |
| Others | 3,567,353,945.00 | 4,206,107.00 | 99.88% | 40.63% | -17.31% | 0.08% |
| Offset | -7,610,487,370.00 | -4,321,890,878.00 | 43.21% | 24.65% | 8.18% | 8.64% |
| By operating segment | ||||||
| Mainland China | 27,097,587,363.00 | 22,451,197,150.00 | 17.15% | 34.79% | 38.67% | -2.31% |
| Other regions in Asia | 22,704,809,090.00 | 18,663,083,700.00 | 17.80% | 16.22% | 19.40% | -2.19% |
| Europe | 2,405,571,859.00 | 2,211,081,530.00 | 8.08% | 57.19% | 65.41% | -4.57% |
| Americas | 2,722,205,077.00 | 2,397,217,579.00 | 11.94% | 21.76% | 24.03% | -1.61% |
| Other regions | 109,035,298.00 | 89,753,272.00 | 17.68% | 61.50% | 69.60% | -3.93% |
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of profit before taxation | Source/Reason | Recurrent or not |
| Return on investment | 13,565,371.00 | 0.75% | N/A | Not |
| Gain/loss on changes in fair value | 55,666,155.00 | 3.09% | Changes in the fair value of wealth management investments held | Not |
| Asset impairments | -598,106,867.00 | -33.19% | Amount provided for inventory falling price impairment according to market conditions | Not |
| Non-operating income | 96,343,532.00 | 5.35% | Governmental subsidies received in the Reporting Period | Not |
| Non-operating expense | 11,848,340.00 | 0.66% | N/A | Not |
| Other income | 1,117,952,927.00 | 62.04% | Governmental subsidies received in the Reporting Period | Not |
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
| Item | 30 June 2019 | 30 June 2018 | Change in percentage (%) | Reason for material change | ||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary capital | 47,191,670,697.00 | 14.88% | 50,581,910,423.00 | 18.31% | -3.43% | N/A |
| Accounts receivable | 19,267,673,050.00 | 6.08% | 17,356,033,029.00 | 6.28% | -0.20% | N/A |
| Inventories | 14,352,489,459.00 | 4.53% | 10,933,542,222.00 | 3.96% | 0.57% | N/A |
| Investment property | 1,261,474,153.00 | 0.40% | 1,278,070,770.00 | 0.46% | -0.06% | N/A |
| Long-term equity investments | 2,625,460,926.00 | 0.83% | 3,443,815,633.00 | 1.25% | -0.42% | N/A |
| Fixed assets | 128,481,365,480.00 | 40.52% | 84,979,890,697.00 | 30.76% | 9.76% | Transfer of new project into fixed assets during the Reporting Period |
| Construction in progress | 71,479,480,514.00 | 22.54% | 73,903,155,311.00 | 26.75% | -4.21% | N/A |
| Short-term borrowings | 7,719,908,693.00 | 2.43% | 2,213,431,454.00 | 0.80% | 1.63% | N/A |
| Long-term borrowings | 107,924,953,091.00 | 34.04% | 83,261,644,214.00 | 30.14% | 3.90% | New loan for new project in the Reporting Period |
| Other current assets | 8,311,011,893.00 | 2.62% | 18,930,028,377.00 | 6.85% | -4.23% | A decline in wealth management product investments due to maturity and the reclassification due to the adoption of the new accounting standards governing financial instruments in the Reporting Period |
| Other payables | 26,202,215,431.00 | 8.26% | 16,759,925,924.00 | 6.07% | 2.19% | Increase in payables for engineering and equipment in the Reporting Period |
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 | Ending amount |
| Financial assets | |||||||
| 1. Financial assets at fair value through profit or loss (exclusive of derivatives) | 5,534,413,566.00 | 55,666,155.00 | 55,666,155.00 | 0.00 | 7,995,988,956.00 | 9,653,077,735.00 | 3,932,990,942.00 |
| 2. Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Other investments in debt obligations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Other investments in equity instruments | 721,155,927.00 | -21,315,625.00 | -337,260,678.00 | 0.00 | 4,230,269.00 | 0.00 | 704,070,571.00 |
| Subtotal of financial assets | 6,255,569,493.00 | 34,350,530.00 | -281,594,523.00 | 0.00 | 8,000,219,225.00 | 9,653,077,735.00 | 4,637,061,513.00 |
| Investment property | 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 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total of the above | 6,255,569,493.00 | 34,350,530.00 | -281,594,523.00 | 0.00 | 8,000,219,225.00 | 9,653,077,735.00 | 4,637,061,513.00 |
| Financial liabilities | 71,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 71,000,000.00 |
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
| Item | Ending carrying value | Restriction reason |
| Monetary capital | 6,948,337,136.00 | As pledge for guarantee and as security deposits |
| Notes receivable | 49,271,680.00 | Discounted and transferred with right of recourse, endorsed and transferred with right of recourse, as pledge for opening notes payable |
| Inventories | 0.00 | Naught |
| Fixed assets | 97,485,999,524.00 | As mortgage for guarantee |
| Intangible assets | 1,297,670,069.00 | As mortgage for guarantee |
| Investment property | 43,707,923.00 | As mortgage for guarantee |
| Construction in progress | 43,789,518,170.00 | As mortgage for guarantee |
| Total | 149,614,504,502.00 | -- |
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the same period of last year (RMB) | Change（%） |
| 121,230,269.00 | 914,421,769.00 | -86.74% |
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
| Variety of security | Code of security | Name of security | Initial investment cost | Accounting measurement method | Beginning carrying value | Gain/Loss on fair value changes in Reporting Period | Accumulated fair value changes charged to equity | Purchased in Reporting Period | Sold in Reporting Period | Gain/loss in Reporting Period | Ending carrying value | Accounting title | Source of investment funds |
| Domestic/Foreign stock | HK00903 | TPV Technology | 134,658,158.00 | Fair value method | 25,613,279.00 | -13,747,290.00 | -122,792,169.00 | 0.00 | 0.00 | 470,591.00 | 11,865,989.00 | Other investment in equity instruments | Self-owned funds |
| Domestic/Foreign stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 83,995,943.00 | 24,960,718.00 | 18,796,234.00 | 0.00 | 0.00 | 1,883,379.00 | 108,956,662.00 | Other investment in equity instruments | Self-owned funds |
| Domestic/Foreign stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 98,705,065.00 | 3,275,047.00 | -33,197,286.00 | 0.00 | 0.00 | 3,820,841.00 | 102,206,616.00 | Other investment in equity instruments | Self-owned funds |
| Domestic/Foreign stock | HK06066 | China Securities | 70,041,364.00 | Fair value method | 44,412,577.00 | 13,690,782.00 | -11,192,865.00 | 0.00 | 0.00 | 0.00 | 58,219,470.00 | Other investment in equity instruments | Self-owned funds |
| Domestic/Foreign | HK01518 | New century medical | 140,848,850.00 | Fair value method | 125,909,253.00 | -50,673,011.00 | -65,790,317.00 | 0.00 | 0.00 | 0.00 | 75,472,547.00 | Other investment | Self-owned |
| stock | treatment | in equity instruments | funds | ||||||||||
| 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 | 555,793,175.00 | -- | 378,636,117.00 | -22,493,754.00 | -214,176,403.00 | 0.00 | 0.00 | 6,174,811.00 | 356,721,284.00 | -- | -- | ||
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | ||||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | ||||||||||||
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.VI 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
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Name | Relationship with the Company | Principal activity | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, design, production, and sales of the new type display devices and the components | 22,000,000,000.00 | 45,720,209,434.00 | 20,681,538,015.00 | 5,270,294,757.00 | 227,565,105.00 | 209,509,425.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | 9,000,000,000.00 | 15,607,954,140.00 | 12,271,460,212.00 | 5,132,365,082.00 | 702,834,118.00 | 605,811,749.00 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, production and sales of semi-conductor display device, complete machine and its auxiliary products; import and export of goods and technical consultancy | 19,226,000,000.00 | 38,503,103,453.00 | 25,875,930,943.00 | 9,999,179,181.00 | 610,979,592.00 | 528,135,258.00 |
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable √ Not applicable
Information about major majority- and minority-owned subsidiaries:
NoneVIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Risks Facing the Company and Countermeasures
1. Risk of Macroeconomic Fluctuation
The first half of 2019 saw a stable global economy but with complexities. On the part of the political situation, the Company wasconfronted again with the threat of the trade protection and the unilateralism and the intensified risks on the trade and investment side.As the industrial pattern and the financial stability were impacted, the world’s economic risks and uncertainty increased significantly;China’s economic development slowed down with the optimized structure and the converted new normal status of kinetic energy.Namely, it would transform from a high-speed growth mode into a high-quality development mode, and the structural reform on thesupply side served as a significant measure taken to propel China’s economic transformation and reform under the new normal status.In terms of the industry environment, since the second half of the year 2017, the industry had entered into the trough. In this case, themainstream market demands slowed down; the new productivity released quickly in a centralized manner; the periodic oversupplyand the disordered competition resulted in the large-scale adjustment of various full-scale products, especially TV products in thelong run; the OLED industrial chain was not so matured and would result in higher costs; the market demands could not meet theexpected requirements and the new capacities released in a much fiercer way; however, the advancement of 5G commercialapplication and the accelerated development of AI would energize and catalyze the explosive development of IoT subdividedapplication scenarios, becoming a new growth point in this industry. Under this background, the Company persisted in transformationand upgrading driven by innovation, continued strengthening lean management, optimized product structure, improved efficiency ofproduct operation, accelerated improving AMOLED global competitiveness, promoted the rapid development of sensor business,consolidated the basis for software and hardware technology integration, accelerate core capacity building of information andhealthcare, and comprehensively promoted the improvement of profitability.
2. Challenges Arising from the Transformation of IoT
The IoT transformation was the only way and the inevitable choice for the Company to balance its business structure and realize itsleaping development. While firmly sticking to the IoT transformation strategy, the Company should be aware of rigorous challengesarising from the transformation of IoT. Firstly, it’s required to reduce the risk of the continuous upgrading of trade frictions and anyadverse impact caused by the increasing uncertainty in the political situation; secondly, it’s required to win the decisive battle relatedto the global semi-conductor display industry as the semi-conductor display business played a critical role in the Company’s stabledevelopment as well as the base point and the propeller for the transformation of IoT; thirdly, it’s required to quickly makecorresponding breakthrough during the transformation of IoT. The Company put forward the concept of IoT transformation in 2013,and clearly defined the IoT ecological chain construction strategy of “Ecoresystem: Open and Connected” in 2016. At present, theCompany has made certain progress in various subdivided fields including the display and sensor innovation market, IoT solutions,digital arts, mobile healthcare and health service etc.. However, the development and the APP platform operation capacity needfurther improvements. Accordingly, a batch of IoT application enterprises are emerging in such subdivided fields including thesecurity and protection and the education. As the strategic window is transient, it’s extremely urgent to make critical breakthroughs.
Part V Significant EventsI Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| The 2018 Annual General Meeting | Annual General Meeting | 33.98% | 26 April 2019 | 27 April 2019 | www.cninfo.com.cn |
| The 1st Extraordinary General Meeting of 2019 | Extraordinary general meeting | 33.99% | 28 June 2019 | 29 June 2019 | www.cninfo.com.cn |
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed VotingRights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties andAcquirer, as well as the Company and Other Commitment Makers, Fulfilled in the ReportingPeriod or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of CPAs FirmHas the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.V Explanations Given by Board of Directors and Supervisory Committee Regarding“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issuedfor Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits or arbitrations:
√ Applicable □Not applicable
| Basic situation of lawsuit (arbitration) | Lawsuit amount (RMB ‘0,000) | Whether form into estimated liabilities | Process of lawsuit (arbitration) | Trial results and influences of lawsuit (arbitration) | Situation of execution of judgment of lawsuit (arbitration) | Disclosure date | Disclosure index |
| Disputes case of sales contract that BOE Technology (HK) Limited sued LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, LeTV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Mr. JiaYueting | 28,471.43 | No | This case came to trial at Beijing High People’s Court on 8 March 2019. The next step is to wait for the court’s notice or judgment. | Unknown | N/A | 26 March 2019 | For details, see Annual Report of 2018 of BOE Technology Group Co., Ltd. disclosed on www.cninfo.com.cn. on 26 March 2019 |
Other legal matters:
√ Applicable □Not applicable
| Basic situation of lawsuit (arbitration) | Lawsuit amount (RMB ‘0,000) | Whether form into estimated liabilities | Process of lawsuit (arbitration) | Trial results and influences of lawsuit (arbitration) | Situation of execution of judgment of lawsuit (arbitration) | Disclosure date | Disclosure index |
| Litigations for the first half year of 2019 (including carryforwards in previous years ) | 9,181.79 | No | N/A | N/A | N/A | N/A | N/A |
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.X Credit Conditions of the Company as well as its Controlling Shareholder and ActualController
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
√ Applicable □ Not applicable
No such cases in the Reporting Period.XII 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. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Major Related-Party Transactions
√ Applicable □Not applicable
NaughtIndex to the current announcements about the said related-party transactions disclosed
| Title of current announcement | Disclosure date | Disclosure website |
| Announcement on the Prediction of 2019 Annual Routine Related-party Transaction | 26 March 2019 | www.cninfo.com.cn |
XIII Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIV 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
(1) Guarantees
Unit: RMB'0,000
| Guarantees provided by the Company for external parties (exclusive of those for subsidiaries) | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (Agreement signing date) | Actual guarantee amount | Type of guarantee | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||
| Total approved line for such guarantees in the Reporting Period (A1) | 0 | Total actual amount of such guarantees in the Reporting Period (A2) | 0 | |||||
| Total approved line for such guarantees at the end of the Reporting Period (A3) | 0 | Total actual balance of such guarantees at the end of the Reporting Period (A4) | 0 | |||||
| Guarantees provided by the Company for its subsidiaries | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (Agreement signing date) | Actual guarantee amount | Type of guarantee | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Hefei BOE Photoelectric Technology Co., Ltd. | 14 August 2014 | 753,595 | 12 March 2015 | 14,945 | Joint liability guarantee | 23 July 2010 to 23 July 2019 | No | No |
| Hefei XinSheng Photoelectric Technology Co., Ltd. | 14 August 2014 | 1,271,820 | 15 January 2015 | 564,028 | Joint liability guarantee | 6 January 2014 to 6 January 2022 | No | No |
| Ordos YuanSheng Photoelectric Co., Ltd. | 30 November 2016 | 549,683 | 15 March 2017 | 429,599 | Joint liability guarantee | 17 March 2017 to 17 March 2025 | No | No |
| Chengdu BOE Photoelectric Technology Co., Ltd. | 25 April 2017 | 2,301,057 | 30 August 2017 | 1,808,547 | Joint liability guarantee | 6 September 2017 to 6 September 2027 | No | No |
| Chengdu BOE Photoelectric Technology Co., Ltd. | 25 April 2017 | 450,000 | 30 August 2017 | 181,665 | Joint liability guarantee | Opening date of the letter of guarantee to 31 July 2023 | No | No |
| Chongqing BOE Photoelectric Technology Co., Ltd. | 14 August 2014 | 1,458,316 | 29 September 2014 | 727,522 | Joint liability guarantee | 5 November 2014 to 5 November 2022 | No | No |
| Hefei BOE Display Technology Co., Ltd. | 1 December 2016 | 1,683,995 | 30 August 2017 | 1,532,733 | Joint liability guarantee | 7 September 2017 to 7 September 2025 | No | No |
| Hefei BOE Display Technology Co., Ltd. | 1 December 2016 | 450,000 | 21 December 2017 | 207,000 | Joint liability guarantee | Opening date of the letter of guarantee to 31 March 2024 | No | No |
| Fuzhou BOE Photoelectric Technology Co., Ltd. | 10 December 2015 | 1,337,987 | 8 November 2016 | 1,143,004 | Joint liability guarantee | 19 December 2016 to 19 December 2024 | No | No |
| Fuzhou BOE Photoelectric Technology Co., Ltd. | 10 December 2015 | 300,000 | 8 November 2016 | 156,000 | Joint liability guarantee | Opening date of the letter of guarantee to 28 December 2023 | No | No |
| Mianyang BOE Photoelectric Technology Co., Ltd. | 18 May 2018 | 2,120,961 | 18 September 2018 | 1,365,374 | Joint liability guarantee | 26 September 2018 to 26 September 2028 | No | No |
| Mianyang BOE Photoelectric Technology Co., Ltd. | 18 May 2018 | 460,000 | 22 June 2018 | 248,000 | Joint liability guarantee | Opening date of the letter of guarantee to 31 October 2027 | No | No |
| Wuhan BOE Photoelectric Technology Co., Ltd. | 25 March 2019 | 2,000,000 | 0 | Joint liability guarantee | Not signing the contract yet | No | No | |
| Wuhan BOE Photoelectric Technology Co., Ltd. | 25 March 2019 | 450,000 | 0 | Joint liability guarantee | Not signing the contract yet | No | No | |
| Total approved line for such guarantees in the Reporting Period (B1) | 2,450,000 | Total actual amount of such guarantees in the Reporting Period (B2) | 132,702 | |||||
| Total approved line for such guarantees at the end of the | 13,617,400 | Total actual balance of such guarantees at the | 8,378,416 | |||||
| Reporting Period (B3) | end of the Reporting Period (B4) | |||||||
| Guarantees provided between subsidiaries | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (Agreement signing date) | Actual guarantee amount | Type of guarantee | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Guangtai Solar Energy Technology (Suzhou) Co., Ltd | N/A | 5,450 | 20 December 2017 | 5,240 | Joint liability guarantee | 20 December 2017 to 6 April 2027 | No | No |
| Huanda Trading (Hebei) Co., Ltd. | N/A | 14,600 | 24 May 2017 | 14,540 | Joint liability guarantee | 15 June 2017 to 16 January 2029 | No | No |
| Yangyuan Photovoltaic Power Generation (Huanggang) Co., Ltd | N/A | 4,552 | 11 September 2017 | 4,552 | Joint liability guarantee | 11 September 2017 to 11 September 2027 | No | No |
| Yaoguang New Energy (Shouguang) Co., Ltd | N/A | 4,192 | 31 October 2017 | 4,192 | Joint liability guarantee | 31 October 2017 to 31 October 2027 | No | No |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd | N/A | 3,484 | 1 December 2017 | 3,484 | Joint liability guarantee | 1 December 2017 to 1 December 2027 | No | No |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd | N/A | 4,678 | 21 December 2017 | 4,678 | Joint liability guarantee | 21 December 2017 to 21 December 2027 | No | No |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd | N/A | 2,374 | 21 December 2017 | 2,374 | Joint liability guarantee | 21 December 2017 to 21 December 2027 | No | No |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd | N/A | 3,666 | 15 December 2017 | 3,666 | Joint liability guarantee | 15 December 2017 to 15 December 2027 | No | No |
| Hexu Technology (Hefei) Co., Ltd | N/A | 538 | 18 May 2018 | 538 | Joint liability guarantee | 18 May 2018 to 10 May 2028 | No | No |
| Chenneng Technology (Hefei) | N/A | 1,068 | 18 May 2018 | 1,068 | Joint liability guarantee | 18 May 2018 to 10 May | No | No |
| Co., Ltd | 2028 | |||||||
| Rongke New Energy (Hefei) Co., Ltd | N/A | 1,400 | 18 December 2017 | 1,393 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Tianchi New Energy (Hefei) Co., Ltd | N/A | 1,100 | 18 December 2017 | 1,093 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd | N/A | 890 | 18 December 2017 | 884 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 18 December 2017 | 3,259 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 960 | 18 December 2017 | 900 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 2,210 | 18 December 2017 | 2,204 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 18 December 2017 | 1,739 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Anhui BOE Energy Investment Co., Ltd | N/A | 13,575 | 27 December 2017 | 13,485 | Joint liability guarantee | 27 December 2017 to 27 December 2029 | No | No |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 600 | 19 December 2017 | 544 | Joint liability guarantee | 19 December 2017 to 18 December 2025 | No | No |
| Guoji Energy (Ningbo) Co., Ltd | N/A | 2,740 | 19 December 2017 | 2,563 | Joint liability guarantee | 19 December 2017 to 18 December 2025 | No | No |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd | N/A | 3,500 | 14 December 2017 | 3,500 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No |
| Ke’enSolar Energy Power Generation (Pingyang) Co., Ltd | N/A | 2,400 | 14 December 2017 | 2,245 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd | N/A | 2,100 | 14 December 2017 | 1,965 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No | |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd | N/A | 1,400 | 14 December 2017 | 1,310 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No | |
| Hefei BOE Hospital Co., Ltd | 27 April 2018 | 130,000 | 27 April 2018 | 66,000 | Joint liability guarantee | 27 April 2018 to 27 April 2033 | No | No | |
| Hengchuan New Energy Technology (Hong’an) Co., Ltd | N/A | 6,892 | 31 January 2018 | 6,768 | Joint liability guarantee | 31 January 2018 to 31 January 2030 | No | No | |
| Anhui BOE Energy Investment Co., Ltd | N/A | 2,060 | 25 April 2018 | 2,050 | Joint liability guarantee | 25 April 2018 to 25 April 2030 | No | No | |
| Junlong New Energy Technology (Huaibin) Co., Ltd | N/A | 8,459 | 25 April 2018 | 8,417 | Joint liability guarantee | 25 April 2018 to 25 April 2030 | No | No | |
| Guangnian New Energy Technology (Shaoxing) Co., Ltd | N/A | 16,000 | 13 December 2018 | 15,968 | Joint liability guarantee | 13 December 2018 to 12 December 2030 | No | No | |
| Xuhui New Energy Technology (Shaoxing) Co., Ltd | N/A | 4,500 | 13 December 2018 | 4,491 | Joint liability guarantee | 13 December 2018 to 12 December 2030 | No | No | |
| BOE Technology (HK) Limited | N/A | 110,220 | 31 October 2017 | 110,220 | Pledge | 12 December 2017 to 7 December 2020 | No | No | |
| Total approved line for such guarantees in the Reporting Period (C1) | 0 | Total actual amount of such guarantees in the Reporting Period (C2) | 173 | ||||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 360,939 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 295,329 | ||||||
| Total guarantee amount (total of the three kinds of guarantees above) | |||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 2,450,000 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 132,875 | ||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,978,339 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 8,673,745 |
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 100.25% | ||
| Of which: | |||
| Amount of guarantees provided for shareholders, the 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) | 199,848 | ||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 4,347,578 | ||
| Total of the three amounts above (D+E+F) | 4,347,578 | ||
| 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 guarantees:
Naught
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV Corporate Social Responsibility (CSR)
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authorities.Yes
| Name of polluter | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 192.70mg/L | 500mg/L | 218.102t | 702.68t | None |
| Ammonia nitrogen | 9.69mg/L | 45 mg/L | 10.972t | 55.93t | None | ||||
| The 4.5th generation TFT-LCD production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 83.88mg/L | 500mg/L | 44.26t | 490.51t | None |
| Ammonia nitrogen | 6.99mg/L | 45mg/L | 3.69t | 25.249t | None | ||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 51.12 | 380mg/L | 115.118t | 1059t | None |
| Ammonia nitrogen | 4.75 | 30mg/L | 11.423t | 99.2t | None | ||||
| Beijing BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | East gate of factory | 147.17mg/L | 500mg/l | 379.25t | 1618.8t | None |
| Ammonia nitrogen | 11.39mg/L | 45mg/l | 28.88t | 134.4t | None | ||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast gate of factory | 60.67mg/L | 380mg/L | 177.07t | 1621.97t | None |
| Ammonia nitrogen | 13.42mg/L | 30mg/L | 38.32t | 128.08t | None | ||||
| Erdos Yuansheng | COD | Standard emission after | 1 | North side | 43.2mg/L | 500mg/L | 51.9t | 713.81t | None |
| Optoelectronics Co., Ltd. | Ammonia nitrogen | being treated by sewage treatment system | of factory | 2.5mg/L | - | 3t | 76.82t | None | |
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 29.83mg/L | 500mg/L | 69.53t | 2213.78t | None |
| Ammonia nitrogen | 1.10mg/L | 45 mg/L | 2.60t | 214.4t | None | ||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 111.9 | 400mg/L | 269.17t | 727.08t | None |
| Ammonia nitrogen | 4.635 | 45mg/L | 11.15t | 79.424t | None | ||||
| Hefei BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 40.5mg/L | 400mg/L | 166.19t | 1189.88t | None |
| Ammonia nitrogen | 7.44mg/L | 35mg/L | 30.53t | 118.98t | None | ||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 93mg/L | 500mg/L | 250.16t | 510.35t | None |
| Ammonia nitrogen | 6.39mg/L | 45mg/L | 17.32t | 68.05t | None | ||||
| BOE Technology Group Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | East side of factory | 60.5mg/L | 500mg/L | 0.59t | 11.114t | None |
| Ammonia nitrogen | 20.7mg/L | 45mg/L | 0.2t | 0.341t | None | ||||
| BOE (Hebei) Mobile Display Technology Co., Ltd. | COD | Discharged into sewage treatment plant through municipal pipes | 2 | Southeast side of factory | 13.5mg/L | 500mg/L | 0.69t | 13.554t | None |
| Ammonia nitrogen | 1.11mg/L | 45mg/L | 0.06t | 1.01t | None | ||||
| COD | North side of factory | 124mg/L | 500mg/L | 2.52t | 74.937t | None | |||
| Ammonia nitrogen | 22.4mg/L | 45mg/L | 0.46t | 6.744t | None |
Construction of pollution prevention equipment and operation conditionDuring report period, the Company did not have important environmental problem. The Company built strict environmentalmanagement system, and established internal organizational structure to supervise overall environmental performance of theCompany, formulated environmental management regulations and targets, carried out regular supervision for the environmentalmanagement condition of subordinate enterprises to promote the implementation of environmental management work.Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial wastewater and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separatelyaccording to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water iscollected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Householdwaste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water isdischarged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and theconcentration and total amount of drainage satisfy the requirements of national and local relevant standards.In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas duringproduction process, generally including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special exhaust gas and organicexhaust gas etc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emissionconcentration and total amount satisfy the national and local relevant standards.“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance withrequirements of national relevant environmental regulations and the registration, assessment, permission and restriction system ofchemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which aregenerated by each subordinate enterprise can be divided into general industrial solid waste, hazardous waste materials and householdwaste materials, and they all handed over to qualified recycler for regular treatment.The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted forprocessing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemicaland other materials maximally and reducing the discharge of waste water and waste materials.At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollutionmanagement standard, hazardous waste materials management standard, energy management standard etc. The methods specify theoperation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervisingmechanism, in order to ensure the continuous stable operation of each system.In recent years, the environmental emission index of the Company is up to national standards such as Sewage ComprehensiveDischarge Standard, Air Pollutant Comprehensive Emission Standard, Industrial Enterprise Environmental Noise Emission Standardwithin Factory Boundary, etc and local standards. The Company will continue to promote the environmental management, devote toforging green factory and improve environmental management level constantly.Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental ProtectionAt present, corresponding environmental impact assessments have been conducted for all construction projects under the control ofthe Company in conformity with applicable national and local laws and regulations, and corresponding administrative licenses havealso been obtained.Contingency Plan for Emergent Environmental IncidentsThe Company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmentalprotection agency according to relevant local requirements. However, such contingency plan consists of comprehensive plan, specialplan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous wastes and dangerouschemicals etc. Meanwhile, drills must be conducted regularly.
Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have beenpublished via the company’s official website.Other environment information that should be disclosedNoOther related environment protection informationNo
2. Measures Taken for Targeted Poverty Alleviation
The Company did not take any targeted measures to help people lift themselves out of poverty during the Reporting Period, also nosubsequent plans.XVI Other Significant Events
√ Applicable □Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Courtagainst following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co.,Ltd. (referred to as “Letv Mobilehereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co.,Ltd. and JiaYueting, with the totalamount of claims being about US$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance andCivil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdictionobjection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People'sCourt for verdict on jurisdiction objection. The Supreme People's Court has made the final verdict that the appeal of Letv wasrejected and the original verdict was maintained. On 8 March 2019, Beijing Municipal Higher People’s Court opened a court sessionfor the case firstly and the next step for the Company is to wait for the notice or judgment from the court. For receivablescorresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulations inaccounting standard accordingly; therefore, it has uncertain influences on the Company.
2. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22March 2016 reached 3 full years by 21 March 2019. According to regulations, the interest should be paid once per year during theinterest-bearing period. According to relevant put provisions stipulated in Raising Instruction Book on the Public-issued CorporationBonds (Phase I) by the Company to Qualified Investors in 2016, the Company respectively issued The First Advisory Notice on theNon-adjustment “16BOE01” Corporate Bonds Nominal Interest Rate and the Investor Put-back Implementation Measures(No.2019-001), The Second Advisory Notice on the Non-adjustment “16BOE01” Corporate Bonds Nominal Interest Rate and theInvestor Put-back Implementation Measures (No.2019-003) and The Third Advisory Notice on the Non-adjustment “16BOE01”Corporate Bonds Nominal Interest Rate and the Investor Put-back Implementation Measures (No.2019-004) on 31 January 2019, 1February 2019 and 12 February 2019. Within the put-back registration period, the investors could wholly or partially sell their“16BOE01” shares back to the Company with the put price at RMB100/piece (excluding the interest). According to correspondingdata provided by CSDC Shenzhen, the put-back quantity of “16BOE01” was 96,705,976, and the put-back amount reachedRMB9,975,221,424.40 (including the interest). The remaining quantity subject to the trusteeship was 3,294,024. On 14 March 2019,the Company disclosed 2019 “16BOE01” Interest Payment Announcement (No.2019-009). The interest payment scheme should beRMB31.5 (taxes included) paid to every 10 bonds. On 21 March 2019 was the day for paying the declared put-back funds andinterests, and the Company paid corresponding put-back principal and current interests to the validly-declared put-back “16BOE01”
bond holder. On 28 March 2019, the Company held the first bonds holder meeting in 2019 for the 2016 corporate bonds. At thismeeting, The Proposal on Advance Payment of 2016 Corporate Bonds of BOE was reviewed and approved, and on 29 March 2019,The Announcement on the First Bonds Holder Meeting Resolution in 2019 for 2016 Corporate Bonds (No. 2019-022) was issued. On3 April 2019, the Company paid corresponding interests of “16BOE01” bonds incurred from 21 March 2019 to 2 April 2019.However, the delisting date was on 3 April 2019 and the interest payment and claims registration day was on 2 April 2019. From theday 3 April 2019 on, “16BOE01” bonds were delisted and relevant transactions were discontinued via SZSE.
3. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks(Announcement No.: 2019-007) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks(Announcement No.: 2019-008) on 6 March 2019 respectively; shareholders of the Company as Hefei Jianxiang Investment Co., Ltd.and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. planned to reduce no more than 1.00% of general capital ofthe Company by means of centralized competitive bidding within 3 months after 15 working days since the issuance of eachAnnouncement. Aforementioned stock reduction plans were completed by 26 June 2019.
4. The Company issued Announcement on 2018 Implementation of Annual Interest Distribution (Announcement No. 2019-030) on25 May 2019. The annual interest distribution plan 2018 was reviewed and adopted in 2018 Annual General Meeting held on 26April 2019. According to the distribution plan, the Company shall allocated annual corporate benefits in 2018 by means of RMB0.3for every 10 shares (where, the B-share benefit distribution shall be completed with Hong Kong dollar as per conversion rate fromRMB to HKD published by People’s Bank of China on the first working day after Shareholders Meeting of the Company) withoutdistributing bonus share or transferring shares in the name of public reserve funds.
5. The Company disclosed the Announcement on Resolutions of the 1
stExtraordinary General Meeting of 2019 (Announcement No.:
2019-037), Announcement on Resolutions of the 1
st
Meeting of the 9
thBoard of Directors (Announcement No.: 2019-039) andAnnouncement on Resolutions of the 1
st Meeting of the 9
thSupervisory Committee (Announcement No.: 2019-040) on 29 June 2019.Those meetings reviewed and approved proposals related to the general election and the general election has been completed. Fordetails, please refer to relevant announcements.
| Overview of significant events | Disclosure date | Index to disclosure website for interim report |
| Announcement on Construction of Beijing BOE Life Technology Industrial Base (Phase I) via Investment | 26 March 2019 | www.cninfo.com.cn |
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease in the Reporting Period (+/-) | After | |||||||
| Shares | Percentage (%) | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Shares | Percentage (%) | |
| I. Restricted shares | 2,536,393 | 0.01% | 0 | 0 | 0 | -675 | -675 | 2,535,718 | 0.01% |
| 1. Shares held by State | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 2,536,393 | 0.01% | 0 | 0 | 0 | -675 | -675 | 2,535,718 | 0.01% |
| Among which: Shares held by domestic legal person | 2,536,393 | 0.01% | 0 | 0 | 0 | -675 | -675 | 2,535,718 | 0.01% |
| Shares held by domestic natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Shares held by foreign investors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Among which: Shares held by foreign legal person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign natural person | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II. Non-restricted shares | 34,795,862,370 | 99.99% | 0 | 0 | 0 | 675 | 675 | 34,795,863,045 | 99.99% |
| 1. RMB common shares | 33,859,748,882 | 97.30% | 0 | 0 | 0 | 675 | 675 | 33,859,749,557 | 97.30% |
| 2. Domestically listed foreign shares | 936,113,488 | 2.69% | 0 | 0 | 0 | 0 | 0 | 936,113,488 | 2.69% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 34,798,398,763 | 100.00% | 0 | 0 | 0 | 0 | 0 | 34,798,398,763 | 100.00% |
Reasons for share changes:
√Applicable □Not applicable
According to Article 3.8.7 stipulated in SZSE Mainboard-listing Company’s Standard Operation Guidance, on the first transaction day each year, for the settlement of Shenzhen Branches, theshares held by the listed company’s directors, supervisors and senior managers on the last transaction day last year should serve as the base, and the transferable shares in this year could becalculated based on its 25%. Meanwhile, it’s also required to unlock the circulating shares within the transferable shares this year not subject to any restriction on shares. When any decimalsappeared through calculating the lockable line of credit, the rounding-off principle should prevail; when the remaining shares in one certain account were less than 1,000, its transferable sharesin this year should be the shares held in the Company. The Company’s supervisor Mr. Chen Zhaozhen holds 900 shares of the Company which were released the restriction on trading on 2January 2019.Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ 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
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 relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Shares locked by senior executives | 2,536,393 | 675 | 0 | 2,535,718 | The Company’s supervisor Mr. Chen Zhaozhen holds 900 shares of the Company which were released the restriction on trading on 2 January 2019 in accordance with regulations. | 2 January 2019 |
| Total | 2,536,393 | 675 | 0 | 2,535,718 | -- | -- |
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
| Total number of ordinary shareholders at the period-end | 1,499,878 (including 1,460,087 A-shareholders and 39,791 B-shareholders) | |||||||
| 5% or greater ordinary shareholders or the top 10 ordinary shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Total shares held at the period-end | Increase/decrease during the Reporting Period | Number of restricted shares held | Number of non-restricted shares held | Pledged or frozen shares | |
| Status | Number | |||||||
| Beijing State-owned Capital Operation and | State-owned legal person | 11.68% | 4,063,333,333 | - | 0 | 4,063,333,333 | N/A | 0 |
| Management Center | ||||||||
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | State-owned legal person | 7.60% | 2,643,863,541 | -9,136,500 | 0 | 2,643,863,541 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 7.21% | 2,510,142,953 | - | 0 | 2,510,142,953 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 3.48% | 1,210,724,041 | -30,699,600 | 0 | 1,210,724,041 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | - | 0 | 822,092,180 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 1.25% | 434,248,350 | -48,960,015 | 0 | 434,248,350 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.79% | 273,735,583 | - | 0 | 273,735,583 | N/A | 0 |
| Central Huijin Assets Management Co., Ltd | State-owned legal person | 0.71% | 248,305,300 | - | 0 | 248,305,300 | N/A | 0 |
| China Securities Finance Corporation Limited | Domestic non-state-owned legal person | 0.38% | 132,480,249 | - | 0 | 132,480,249 | N/A | 0 |
| Xiamen Hengxing Group Co., Ltd. | Domestic non-state-owned legal person | 0.37% | 128,825,078 | 121,909,078 | 0 | 128,825,078 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten shareholders due to placing of new shares (if any) (see Note 3) | Naught | |||||||
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd, by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. | |||||||
| 5. Except for the above relationships, the Company does not know any other related party or acting-in-concert party among the top 10 shareholders. | |||
| Shareholdings of the top ten unrestricted shareholders | |||
| Name of shareholder | Number of unrestricted shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Center | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | 2,643,863,541 | RMB ordinary share | 2,643,863,541 |
| Hefei Jianxiang Investment Co., Ltd. | 2,510,142,953 | RMB ordinary share | 2,510,142,953 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 1,210,724,041 | RMB ordinary share | 1,210,724,041 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hong Kong Securities Clearing Company Ltd. | 434,248,350 | RMB ordinary share | 434,248,350 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Central Huijin Assets Management Co., Ltd | 248,305,300 | RMB ordinary share | 248,305,300 |
| China Securities Finance Corporation Limited | 132,480,249 | RMB ordinary share | 132,480,249 |
| Xiamen Hengxing Group Co., Ltd. | 128,825,078 | RMB ordinary share | 128,825,078 |
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | 1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd, by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, | ||
| and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. Except for the above relationships, the Company does not know any other related party or acting-in-concert party among the top 10 shareholders. | |
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | The holdings of Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 30,699,600 shares due to refinancing securities lending. Xiamen Hengxing Group Co., Ltd. holds 8,406,498 shares in the Company in its account of collaterial securities for margin trading. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the ReportingPeriod.
□ Yea √ No
No such cases in the Reporting Period.IV. Change of the Controlling Shareholder or the Actual ControllerChange of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
Part VIII Directors, Supervisors, Senior Management and StaffI Change in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
| Name | Office title | Incumbent/former | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Ending shareholding (share) | Number of the restricted shares granted at the period-begin (share) | Number of the restricted shares granted during the Reporting Period (share) | Number of the restricted shares granted at the period-end (share) |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Incumbent | 600,000 | 0 | 0 | 600,000 | 0 | 0 | 0 |
| Pan Jinfeng | Vice Chairman of the Board | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liu Xiaodong | Vice Chairman of the Board, President and vice chairman of Executive Committee | Incumbent | 250,000 | 0 | 0 | 250,000 | 0 | 0 | 0 |
| Wang Chenyang | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Song Jie | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sun Yun | Director, member of Executive Committee, executive vice president, CFO | Incumbent | 223,981 | 0 | 0 | 223,981 | 0 | 0 | 0 |
| Gao Wenbao | Director, member of Executive Committee, executive vice president, and CEO of Display &Sensor Devices Business Group | Incumbent | 90,700 | 0 | 0 | 90,700 | 0 | 0 | 0 |
| Li Yantao | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Lyu Tingjie | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wang Huacheng | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hu Xiaolin | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Li Xuan | Independent director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yang Xiangdong | Chairman of the Supervisory Committee | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Xu Tao | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wei Shuanglai | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Chen Xiaobei | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shi Hong | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Xu Yangping | Employee supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| He Daopin | Employee supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yan Jun | Employee supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Teng Jiao | Employee supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yao Xiangjun | Member of Executive Committee, executive vice president and CEO of Digital Art Business Group | Incumbent | 100,000 | 0 | 0 | 100,000 | 0 | 0 | 0 |
| Zhang Zhaohong | Member of Executive Committee, executive vice president and CEO of Mobile Healthcare Business Group | Incumbent | 328,700 | 0 | 0 | 328,700 | 0 | 0 | 0 |
| Zhong Huifeng | Member of Executive Committee, executive vice president and CHO | Incumbent | 150,000 | 0 | 0 | 150,000 | 0 | 0 | 0 |
| Feng Liqiong | Member of Executive Committee, | Incumbent | 200,000 | 0 | 0 | 200,000 | 0 | 0 | 0 |
| executive vice president and chief lawyer | |||||||||
| Xie Zhongdong | Member of Executive Committee, senior vice president, chief auditor and CRO | Incumbent | 200,000 | 0 | 0 | 200,000 | 0 | 0 | 0 |
| Miao Chuanbin | Member of Executive Committee, executive vice president and CCO | Incumbent | 1,800 | 0 | 0 | 1,800 | 0 | 0 | 0 |
| Liu Hongfeng | Vice president and Secretary of the Board | Incumbent | 154,500 | 0 | 0 | 154,500 | 0 | 0 | 0 |
| Wang Dongsheng | Chairman of the Board | Former | 299,905 | 0 | 0 | 299,905 | 0 | 0 | 0 |
| Xie Xiaoming | Vice Chairman of the Board | Former | 7,680 | 0 | 0 | 7,680 | 0 | 0 | 0 |
| Zhao Wei | Supervisor | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhuang Haoyu | Supervisor | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Chen Zhaozhen | Supervisor | Former | 900 | 0 | 0 | 900 | 0 | 0 | 0 |
| Dong Youmei | Senior executive | Former | 226,400 | 0 | 0 | 226,400 | 0 | 0 | 0 |
| Yue Zhanqiu | Senior executive | Former | 220,000 | 0 | 0 | 220,000 | 0 | 0 | 0 |
| Feng Qiang | Senior executive | Former | 120,000 | 0 | 0 | 120,000 | 0 | 0 | 0 |
| Yang Anle | Senior executive | Former | 150,000 | 0 | 150,000 | 0 | 0 | 0 | |
| Tong Guanshan | Senior executive | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Jing Linfeng | Senior executive | Former | 145,000 | 0 | 0 | 145,000 | 0 | 0 | 0 |
| Total | -- | -- | 3,469,566 | 0 | 0 | 3,469,566 | 0 | 0 | 0 |
II Changes in Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
| Name | Office title | Type of change | Date | Reason |
| Wang Dongsheng | Chairman of the Board | Leave the post | 28 June 2019 | Change the term of office |
| Xie Xiaoming | Vice Chairman of the Board | Leave the post | 28 June 2019 | Change the term of office |
| Zhao Wei | Supervisor | Leave the post | 28 June 2019 | Change the term of office |
| Zhuang Haoyu | Supervisor | Leave the post | 28 June 2019 | Change the term of office |
| Chen Zhaozhen | Supervisor | Leave the post | 28 June 2019 | Change the term of office |
| Miao Chuanbin | Employee supervisor | Leave the post | 28 June 2019 | Change the term of office |
| Dong Youmei | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Yue Zhanqiu | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Feng Qiang | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Yang Anle | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Tong Guanshan | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Jing Linfeng | Senior executive | Leave the post | 28 June 2019 | Change the term of office |
| Chen Yanshun | Chairman of the Board | Elected | 28 June 2019 | Change the term of office |
| Pan Jinfeng | Vice Chairman of the Board | Elected | 28 June 2019 | Change the term of office |
| Liu Xiaodong | Vice Chairman of the Board | Elected | 28 June 2019 | Change the term of office |
| Chen Xiaobei | Supervisor | Elected | 28 June 2019 | Change the term of office |
| Wei Shuanglai | Supervisor | Elected | 28 June 2019 | Change the term of office |
| Yan Jun | Employee supervisor | Elected | 28 June 2019 | Change the term of office |
| Teng Jiao | Employee supervisor | Elected | 28 June 2019 | Change the term of office |
| Miao Chuanbin | Senior executive | Engaged | 28 June 2019 | Change the term of office |
Part IX Corporate BondsAre there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of thisReport or were due but could not be redeemed in full?No
Part X Financial Statements
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
Unit: RMB
| Item | 30 June 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 47,191,670,697.00 | 51,481,539,711.00 |
| Settlement reserve | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 |
| Trading financial assets | 3,932,990,942.00 | 0.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 140,924,135.00 | 656,781,577.00 |
| Accounts receivable | 19,267,673,050.00 | 19,880,680,518.00 |
| Financing backed by accounts receivable | 0.00 | 0.00 |
| Prepayments | 670,390,512.00 | 770,633,448.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Other receivables | 662,620,903.00 | 2,454,174,971.00 |
| Including: Interest receivable | 173,298,920.00 | 140,597,317.00 |
| Dividends receivable | 4,367,120.00 | 3,711,768.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 14,352,489,459.00 | 11,985,398,172.00 |
| Contract assets | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 |
| Other current assets | 8,311,011,893.00 | 12,463,073,779.00 |
| Total current assets | 94,529,771,591.00 | 99,692,282,176.00 |
| Non-current assets: | ||
| Loans and advances to customers | 0.00 | 0.00 |
| Investments in debt obligations | 0.00 | 0.00 |
| Available-for-sale financial assets | 0.00 | 734,022,359.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Held-to-maturity investments | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 2,625,460,926.00 | 2,389,166,886.00 |
| Investments in other equity instruments | 704,070,571.00 | 0.00 |
| Other non-current financial assets | 13,757,311.00 | 0.00 |
| Investment property | 1,261,474,153.00 | 1,283,867,651.00 |
| Fixed assets | 128,481,365,480.00 | 128,157,730,995.00 |
| Construction in progress | 71,479,480,514.00 | 56,423,354,887.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 |
| Intangible assets | 6,902,908,809.00 | 5,937,679,394.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 904,370,509.00 | 904,370,509.00 |
| Long-term prepaid expense | 407,485,249.00 | 360,640,853.00 |
| Deferred income tax assets | 219,508,593.00 | 252,373,622.00 |
| Other non-current assets | 9,532,176,903.00 | 7,893,002,053.00 |
| Total non-current assets | 222,532,059,018.00 | 204,336,209,209.00 |
| Total assets | 317,061,830,609.00 | 304,028,491,385.00 |
| Current liabilities: | ||
| Short-term borrowings | 7,719,908,693.00 | 5,449,954,885.00 |
| Borrowings from central bank | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 1,061,230,891.00 | 591,109,272.00 |
| Accounts payable | 20,563,920,823.00 | 22,213,956,616.00 |
| Advances from customers | 1,245,359,776.00 | 1,218,934,743.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 |
| Customer deposits and interbank deposits | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 |
| Payroll payable | 1,318,376,546.00 | 2,224,931,171.00 |
| Taxes payable | 613,003,188.00 | 970,108,298.00 |
| Other payables | 26,202,215,431.00 | 22,956,979,828.00 |
| Including: Interest payable | 893,836,112.00 | 1,016,761,921.00 |
| Dividends payable | 10,999,707.00 | 23,648,778.00 |
| Handling charges and commissions payable | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 |
| Contract liabilities | 0.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 7,282,992,933.00 | 5,597,563,204.00 |
| Other current liabilities | 1,143,477,445.00 | 1,004,557,061.00 |
| Total current liabilities | 67,150,485,726.00 | 62,228,095,078.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | 0.00 | 0.00 |
| Long-term borrowings | 107,924,953,091.00 | 94,780,077,864.00 |
| Bonds payable | 309,933,489.00 | 10,288,666,233.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 |
| Long-term payables | 1,127,696,942.00 | 1,416,092,239.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Provisions | 16,457,010.00 | 16,457,010.00 |
| Deferred income | 2,514,776,723.00 | 2,187,558,533.00 |
| Deferred income tax liabilities | 1,478,963,366.00 | 1,419,373,545.00 |
| Other non-current liabilities | 12,047,294,154.00 | 11,334,873,322.00 |
| Total non-current liabilities | 125,420,074,775.00 | 121,443,098,746.00 |
| Total liabilities | 192,570,560,501.00 | 183,671,193,824.00 |
| Owners’ equity: | ||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Capital reserves | 38,212,922,001.00 | 38,213,100,596.00 |
| Less: Treasury stock | 0.00 | 0.00 |
| Other comprehensive income | -283,317,844.00 | -125,258,252.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 1,152,625,429.00 | 1,152,626,310.00 |
| General reserve | 0.00 | 0.00 |
| Retained earnings | 12,642,719,479.00 | 11,817,881,286.00 |
| Total equity attributable to owners of the Company as the parent | 86,523,347,828.00 | 85,856,748,703.00 |
| Non-controlling interests | 37,967,922,280.00 | 34,500,548,858.00 |
| Total owners’ equity | 124,491,270,108.00 | 120,357,297,561.00 |
| Total liabilities and owners’ equity | 317,061,830,609.00 | 304,028,491,385.00 |
Legal representative: Chen Yanshun President ：Liu XiaodongChief Financial Officer: Sun Yun Head of financial department: Yang Xiaoping
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 1,356,771,901.00 | 3,829,814,050.00 |
| Trading financial assets | 0.00 | 0.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 0.00 | 1,500,000.00 |
| Accounts receivable | 903,440,719.00 | 36,952,623.00 |
| Financings backed by accounts receivable | 0.00 | 0.00 |
| Prepayments | 49,197,772.00 | 25,020,734.00 |
| Other receivables | 3,150,744,730.00 | 2,015,828,460.00 |
| Including: Interest receivable | 9,216,577.00 | 9,659,279.00 |
| Dividends receivable | 10,874,738.00 | 14,115,915.00 |
| Inventories | 11,166,746.00 | 9,289,141.00 |
| Contract assets | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 200,000,000.00 | 450,000,000.00 |
| Other current assets | 21,778,708.00 | 47,805,096.00 |
| Total current assets | 5,693,100,576.00 | 6,416,210,104.00 |
| Non-current assets: | ||
| Investments in debt obligations | 0.00 | 0.00 |
| Available-for-sale financial assets | 0.00 | 128,297,254.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Held-to-maturity investments | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 147,579,422,075.00 | 143,499,733,485.00 |
| Investments in other equity instruments | 139,510,683.00 | 0.00 |
| Other non-current financial assets | 0.00 | 0.00 |
| Investment property | 285,354,375.00 | 290,253,475.00 |
| Fixed assets | 933,022,884.00 | 969,371,352.00 |
| Construction in progress | 282,856,396.00 | 251,314,313.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 |
| Intangible assets | 1,527,022,834.00 | 514,186,496.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 |
| Long-term prepaid expense | 108,897,429.00 | 99,701,797.00 |
| Deferred income tax assets | 248,196,280.00 | 290,794,548.00 |
| Other non-current assets | 83,229,901.00 | 284,243,667.00 |
| Total non-current assets | 151,187,512,857.00 | 146,327,896,387.00 |
| Total assets | 156,880,613,433.00 | 152,744,106,491.00 |
| Current liabilities: | ||
| Short-term borrowings | 3,440,000,000.00 | 1,000,000,000.00 |
| Trading financial liabilities | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 |
| Accounts payable | 88,987,036.00 | 35,322,286.00 |
| Advances from customers | 1,209,160,813.00 | 1,577,035,515.00 |
| Contract liabilities | 0.00 | 0.00 |
| Payroll payable | 110,017,256.00 | 201,139,261.00 |
| Taxes payable | 158,770,296.00 | 250,558,556.00 |
| Other payables | 6,344,295,425.00 | 8,209,736,090.00 |
| Including: Interest payable | 228,061,452.00 | 330,964,989.00 |
| Dividends payable | 6,451,171.00 | 6,451,171.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 2,313,400,000.00 | 2,590,000,000.00 |
| Other current liabilities | 10,134,611.00 | 0.00 |
| Total current liabilities | 13,674,765,437.00 | 13,863,791,708.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 34,370,830,556.00 | 26,520,000,000.00 |
| Bonds payable | 0.00 | 9,976,533,425.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 |
| Long-term payables | 0.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 5,070,274,709.00 | 5,523,949,841.00 |
| Deferred income tax liabilities | 0.00 | 0.00 |
| Other non-current liabilities | 26,613,341,917.00 | 20,954,104,125.00 |
| Total non-current liabilities | 66,054,447,182.00 | 62,974,587,391.00 |
| Total liabilities | 79,729,212,619.00 | 76,838,379,099.00 |
| Owners’ equity: |
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Capital reserves | 37,590,966,191.00 | 37,590,966,191.00 |
| Less: Treasury stock | 0.00 | 0.00 |
| Other comprehensive income | -99,717,652.00 | -28,507,585.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 1,152,625,429.00 | 1,152,626,310.00 |
| Retained earnings | 3,709,128,083.00 | 2,392,243,713.00 |
| Total owners’ equity | 77,151,400,814.00 | 75,905,727,392.00 |
| Total liabilities and owners’ equity | 156,880,613,433.00 | 152,744,106,491.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Revenue | 55,039,208,687.00 | 43,473,904,966.00 |
| Including: Operating revenue | 55,039,208,687.00 | 43,473,904,966.00 |
| Interest income | 0.00 | 0.00 |
| Premium income | 0.00 | 0.00 |
| Handling charge and commission income | 0.00 | 0.00 |
| 2. Costs and expenses | 53,891,069,026.00 | 41,687,007,407.00 |
| Including: Cost of sales | 45,812,333,231.00 | 35,144,582,131.00 |
| Interest expense | 0.00 | 0.00 |
| Handling charge and commission expense | 0.00 | 0.00 |
| Surrenders | 0.00 | 0.00 |
| Net claims paid | 0.00 | 0.00 |
| Net amount provided as insurance contract reserve | 0.00 | 0.00 |
| Expenditure on policy dividends | 0.00 | 0.00 |
| Reinsurance premium expense | 0.00 | 0.00 |
| Taxes and surcharges | 424,853,407.00 | 302,565,754.00 |
| Selling expense | 1,365,287,286.00 | 1,294,782,594.00 |
| Administrative expense | 2,197,183,494.00 | 2,143,708,550.00 |
| R&D expense | 2,924,658,236.00 | 1,600,194,723.00 |
| Finance costs | 1,166,753,372.00 | 1,201,173,655.00 |
| Including: Interest expense | 1,535,561,809.00 | 1,427,741,240.00 |
| Interest income | 398,822,857.00 | 345,988,686.00 |
| Add: Other income | 1,117,952,927.00 | 1,904,160,159.00 |
| Return on investment (“-” for loss) | 13,565,371.00 | 166,924,013.00 |
| Including: Share of profit or loss of joint ventures and associates | -16,571,961.00 | -29,578,579.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Foreign exchange gain (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 55,666,155.00 | 0.00 |
| Credit impairment loss (“-” for loss) | -20,230,445.00 | 0.00 |
| Asset impairment loss (“-” for loss) | -598,106,867.00 | -458,149,260.00 |
| Asset disposal income (“-” for loss) | 373,679.00 | -158,511.00 |
| 3. Operating profit (“-” for loss) | 1,717,360,481.00 | 3,399,673,960.00 |
| Add: Non-operating income | 96,343,532.00 | 96,641,868.00 |
| Less: Non-operating expense | 11,848,340.00 | 7,653,811.00 |
| 4. Profit before tax (“-” for loss) | 1,801,855,673.00 | 3,488,662,017.00 |
| Less: Income tax expense | 673,775,041.00 | 659,568,560.00 |
| 5. Net profit (“-” for net loss) | 1,128,080,632.00 | 2,829,093,457.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 1,128,080,632.00 | 2,829,093,457.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 1,668,448,449.00 | 2,975,206,500.00 |
| 5.2.1 Net profit attributable to non-controlling interests | -540,367,817.00 | -146,113,043.00 |
| 6. Other comprehensive income, net of tax | 48,896,505.00 | -223,269,396.00 |
| Attributable to owners of the Company as the parent | 48,131,789.00 | -238,286,517.00 |
| 6.1 Items that will not be reclassified to profit or loss | -23,607,052.00 | 0.00 |
| 6.1.1 Changes caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 |
| 6.1.2 Other comprehensive income that will not be | 0.00 | 0.00 |
| reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | -23,607,052.00 | 0.00 |
| 6.1.4 Changes in the fair value of the company’s credit risks | 0.00 | 0.00 |
| 6.1.5 Other | 0.00 | 0.00 |
| 6.2 Items that will be reclassified to profit or loss | 71,738,841.00 | -238,286,517.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 175,359,777.00 | 0.00 |
| 6.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 6.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | 0.00 | -91,055,052.00 |
| 6.2.4 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 6.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | 0.00 | 0.00 |
| 6.2.6 Allowance for credit impairments in investments in other debt obligations | 0.00 | 0.00 |
| 6.2.7 Reserve for cash flow hedges | 0.00 | 0.00 |
| 6.2.8 Differences arising from the translation of foreign currency-denominated financial statements | -103,620,936.00 | -147,231,465.00 |
| 6.2.9 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | 764,716.00 | 15,017,121.00 |
| 7. Total comprehensive income | 1,176,977,137.00 | 2,605,824,061.00 |
| Attributable to owners of the Company as the parent | 1,716,580,238.00 | 2,736,919,983.00 |
| Attributable to non-controlling interests | -539,603,101.00 | -131,095,922.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.048 | 0.085 |
| 8.2 Diluted earnings per share | 0.048 | 0.085 |
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged partiesbefore the business mergers was RMB0.00, with the corresponding amount for the last period being RMB 0.00.
Legal representative: Chen Yanshun President ：Liu XiaodongChief Financial Officer: Sun Yun Head of financial department: Yang Xiaoping
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Operating revenue | 2,889,695,832.00 | 2,146,860,956.00 |
| Less: Cost of sales | 9,226,588.00 | 12,786,733.00 |
| Taxes and surcharges | 18,763,125.00 | 24,031,851.00 |
| Selling expense | 0.00 | 433,606.00 |
| Administrative expense | 303,106,493.00 | 326,721,457.00 |
| R&D expense | 933,795,965.00 | 493,551,654.00 |
| Finance costs | 489,514,994.00 | 378,937,888.00 |
| Including: Interest expense | 504,784,910.00 | 400,036,107.00 |
| Interest income | 18,361,098.00 | 20,910,083.00 |
| Add: Other income | 467,980,287.00 | 532,427,665.00 |
| Return on investment (“-” for loss) | 792,194,279.00 | 884,469,030.00 |
| Including: Share of profit or loss of joint ventures and associates | -16,519,688.00 | -17,602,562.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 0.00 | 0.00 |
| Credit impairment loss (“-” for loss) | -7,044,401.00 | 0.00 |
| Asset impairment loss (“-” for loss) | 0.00 | 0.00 |
| Asset disposal income (“-” for loss) | 0.00 | 0.00 |
| 2. Operating profit (“-” for loss) | 2,388,418,832.00 | 2,327,294,462.00 |
| Add: Non-operating income | 2,447,285.00 | 3,317,848.00 |
| Less: Non-operating expense | 849,038.00 | 576,343.00 |
| 3. Profit before tax (“-” for loss) | 2,390,017,079.00 | 2,330,035,967.00 |
| Less: Income tax expense | 285,273,969.00 | 214,413,263.00 |
| 4. Net profit (“-” for net loss) | 2,104,743,110.00 | 2,115,622,704.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 2,104,743,110.00 | 2,115,622,704.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5. Other comprehensive income, net of tax | 184,891,191.00 | -34,867,001.00 |
| 5.1 Items that will not be reclassified to profit or loss | 9,531,414.00 | 0.00 |
| 5.1.1 Changes caused by remeasurements on defined benefit | 0.00 | 0.00 |
| pension schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 0.00 | 0.00 |
| 5.1.3 Changes in the fair value of investments in other equity instruments | 9,531,414.00 | 0.00 |
| 5.1.4 Changes in the fair value of the company’s credit risks | 0.00 | 0.00 |
| 5.1.5 Other | 0.00 | 0.00 |
| 5.2 Items that will be reclassified to profit or loss | 175,359,777.00 | -34,867,001.00 |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 175,359,777.00 | 0.00 |
| 5.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 5.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | 0.00 | -34,867,001.00 |
| 5.2.4 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 5.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | 0.00 | 0.00 |
| 5.2.6 Allowance for credit impairments in investments in other debt obligations | 0.00 | 0.00 |
| 5.2.7 Reserve for cash flow hedges | 0.00 | 0.00 |
| 5.2.8 Differences arising from the translation of foreign currency-denominated financial statements | 0.00 | 0.00 |
| 5.2.9 Other | 0.00 | 0.00 |
| 6. Total comprehensive income | 2,289,634,301.00 | 2,080,755,703.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.060 | 0.061 |
| 7.2 Diluted earnings per share | 0.060 | 0.061 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 65,478,619,218.00 | 46,922,249,284.00 |
| Net increase in customer deposits and interbank deposits | 0.00 | 0.00 |
| Net increase in borrowings from central bank | 0.00 | 0.00 |
| Net increase in loans from other financial institutions | 0.00 | 0.00 |
| Premiums received on original insurance contracts | 0.00 | 0.00 |
| Net proceeds from reinsurance | 0.00 | 0.00 |
| Net increase in deposits and investments of policy holders | 0.00 | 0.00 |
| Interest, handling charges and commissions received | 0.00 | 0.00 |
| Net increase in interbank loans obtained | 0.00 | 0.00 |
| Net increase in proceeds from repurchase transactions | 0.00 | 0.00 |
| Net proceeds for acting trading of securities | 0.00 | 0.00 |
| Tax rebates | 4,153,126,609.00 | 3,252,910,154.00 |
| Cash generated from other operating activities | 4,211,734,116.00 | 3,031,879,238.00 |
| Subtotal of cash generated from operating activities | 73,843,479,943.00 | 53,207,038,676.00 |
| Payments for commodities and services | 50,374,068,234.00 | 31,789,388,744.00 |
| Net increase in loans and advances to customers | 0.00 | 0.00 |
| Net increase in deposits in central bank and in interbank loans granted | 0.00 | 0.00 |
| Payments for claims on original insurance contracts | 0.00 | 0.00 |
| Net increase in financial assets held for trading | 0.00 | 0.00 |
| Net increase in interbank loans granted | 0.00 | 0.00 |
| Interest, handling charges and commissions paid | 0.00 | 0.00 |
| Policy dividends paid | 0.00 | 0.00 |
| Cash paid to and for employees | 5,573,637,042.00 | 5,206,850,022.00 |
| Taxes paid | 2,198,469,763.00 | 1,826,914,249.00 |
| Cash used in other operating activities | 4,102,320,555.00 | 2,802,378,487.00 |
| Subtotal of cash used in operating activities | 62,248,495,594.00 | 41,625,531,502.00 |
| Net cash generated from/used in operating activities | 11,594,984,349.00 | 11,581,507,174.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 18,789,102,436.00 | 42,727,697,470.00 |
| Return on investment | 151,529,241.00 | 225,460,451.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 355,478,346.00 | 6,071,367.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 108,292,744.00 | 3,878,193,685.00 |
| Subtotal of cash generated from investing activities | 19,404,402,767.00 | 46,837,422,973.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 25,040,541,960.00 | 22,369,952,658.00 |
| Payments for investments | 15,917,595,394.00 | 46,687,262,053.00 |
| Net increase in pledged loans granted | 0.00 | 0.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 56,414,722.00 | 1,729,746,759.00 |
| Subtotal of cash used in investing activities | 41,014,552,076.00 | 70,786,961,470.00 |
| Net cash generated from/used in investing activities | -21,610,149,309.00 | -23,949,538,497.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 4,049,510,000.00 | 4,211,130,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 4,049,510,000.00 | 4,211,130,000.00 |
| Borrowings obtained | 27,379,807,336.00 | 16,019,313,696.00 |
| Net proceeds from issuance of bonds | 0.00 | 0.00 |
| Cash generated from other financing activities | 133,415,725.00 | 1,736,188,263.00 |
| Subtotal of cash generated from financing activities | 31,562,733,061.00 | 21,966,631,959.00 |
| Repayments of borrowings | 20,994,050,384.00 | 9,708,459,433.00 |
| Payments for interest and dividends | 3,614,070,682.00 | 3,920,842,959.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 36,394,420.00 | 0.00 |
| Cash used in other financing activities | 73,504,151.00 | 188,678,823.00 |
| Subtotal of cash used in financing activities | 24,681,625,217.00 | 13,817,981,215.00 |
| Net cash generated from/used in financing activities | 6,881,107,844.00 | 8,148,650,744.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 26,694,157.00 | -603,907,413.00 |
| 5. Net increase in cash and cash equivalents | -3,107,362,959.00 | -4,823,287,992.00 |
| Add: Cash and cash equivalents, beginning of the period | 43,350,696,520.00 | 47,913,287,583.00 |
| 6. Cash and cash equivalents, end of the period | 40,243,333,561.00 | 43,089,999,591.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,957,952,087.00 | 3,175,402,626.00 |
| Tax rebates | 0.00 | 2,294,981.00 |
| Cash generated from other operating activities | 152,224,777.00 | 431,273,788.00 |
| Subtotal of cash generated from operating activities | 3,110,176,864.00 | 3,608,971,395.00 |
| Payments for commodities and services | 2,289,301,920.00 | 242,669,705.00 |
| Cash paid to and for employees | 641,963,448.00 | 495,217,910.00 |
| Taxes paid | 474,699,572.00 | 388,375,276.00 |
| Cash used in other operating activities | 289,787,986.00 | 49,861,076.00 |
| Subtotal of cash used in operating activities | 3,695,752,926.00 | 1,176,123,967.00 |
| Net cash generated from/used in operating activities | -585,576,062.00 | 2,432,847,428.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 306,360,000.00 | 506,475,341.00 |
| Return on investment | 545,676,646.00 | 614,938,715.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 140.00 | 5,330.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 491,043,184.00 | 3,464,350,013.00 |
| Subtotal of cash generated from investing activities | 1,343,079,970.00 | 4,585,769,399.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 860,127,202.00 | 139,310,504.00 |
| Payments for investments | 3,960,930,200.00 | 9,916,742,439.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 2,317,216,289.00 | 200,000,000.00 |
| Subtotal of cash used in investing activities | 7,138,273,691.00 | 10,256,052,943.00 |
| Net cash generated from/used in investing activities | -5,795,193,721.00 | -5,670,283,544.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 0.00 |
| Borrowings obtained | 12,504,230,556.00 | 3,567,000,000.00 |
| Net proceeds from the issuance of bonds | 0.00 | 0.00 |
| Cash generated from other financing activities | 3,967,183,652.00 | 7,306,322,534.00 |
| Subtotal of cash generated from financing activities | 16,471,414,208.00 | 10,873,322,534.00 |
| Repayments of borrowings | 10,890,000,000.00 | 3,882,732,992.00 |
| Payments for interest and dividends | 1,658,259,754.00 | 2,224,217,165.00 |
| Cash used in other financing activities | 1,796,768.00 | 700,000,000.00 |
| Subtotal of cash used in financing activities | 12,550,056,522.00 | 6,806,950,157.00 |
| Net cash generated from/used in financing activities | 3,921,357,686.00 | 4,066,372,377.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -13,630,052.00 | 43,102,003.00 |
| 5. Net increase in cash and cash equivalents | -2,473,042,149.00 | 872,038,264.00 |
| Add: Cash and cash equivalents, beginning of the period | 3,829,814,050.00 | 2,990,801,501.00 |
| 6. Cash and cash equivalents, end of the period | 1,356,771,901.00 | 3,862,839,765.00 |
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
| Item | H1 2019 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balances as at the end of the prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,213,100,596.00 | 0.00 | -125,258,252.00 | 0.00 | 1,152,626,310.00 | 0.00 | 11,817,881,286.00 | 0.00 | 85,856,748,703.00 | 34,500,548,858.00 | 120,357,297,561.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -206,191,381.00 | 0.00 | -881.00 | 0.00 | 200,341,707.00 | 0.00 | -5,850,555.00 | -1,223,107.00 | -7,073,662.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for business combinations under common | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| control | |||||||||||||||
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as at the beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,213,100,596.00 | 0.00 | -331,449,633.00 | 0.00 | 1,152,625,429.00 | 0.00 | 12,018,222,993.00 | 0.00 | 85,850,898,148.00 | 34,499,325,751.00 | 120,350,223,899.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | -178,595.00 | 0.00 | 48,131,789.00 | 0.00 | 0.00 | 0.00 | 624,496,486.00 | 0.00 | 672,449,680.00 | 3,468,596,529.00 | 4,141,046,209.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 48,131,789.00 | 0.00 | 0.00 | 0.00 | 1,668,448,449.00 | 0.00 | 1,716,580,238.00 | -539,603,101.00 | 1,176,977,137.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | -178,595.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -178,595.00 | 4,011,048,595.00 | 4,010,870,000.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | -178,595.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -178,595.00 | 4,011,048,595.00 | 4,010,870,000.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,043,951,963.00 | 0.00 | -1,043,951,963.00 | -2,848,965.00 | -1,046,800,928.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.3 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,043,951,963.00 | 0.00 | -1,043,951,963.00 | -2,848,965.00 | -1,046,800,928.00 |
| 3.3.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Increase in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balances as at the end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,212,922,001.00 | 0.00 | -283,317,844.00 | 0.00 | 1,152,625,429.00 | 0.00 | 12,642,719,479.00 | 0.00 | 86,523,347,828.00 | 37,967,922,280.00 | 124,491,270,108.00 |
H1 2018
Unit: RMB
| Item | H1 2018 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balances as at the end of the prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,585,515,122.00 | 0.00 | 150,602,933.00 | 0.00 | 889,640,475.00 | 0.00 | 10,385,659,084.00 | 0.00 | 84,809,816,377.00 | 19,474,446,456.00 | 104,284,262,833.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for business combinations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| under common control | |||||||||||||||
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as at the beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,585,515,122.00 | 0.00 | 150,602,933.00 | 0.00 | 889,640,475.00 | 0.00 | 10,385,659,084.00 | 0.00 | 84,809,816,377.00 | 19,474,446,456.00 | 104,284,262,833.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | -340,753,766.00 | 0.00 | -238,286,517.00 | 0.00 | 0.00 | 0.00 | 1,234,416,621.00 | 0.00 | 655,376,338.00 | 7,454,228,908.00 | 8,109,605,246.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -238,286,517.00 | 0.00 | 0.00 | 0.00 | 2,975,206,500.00 | 0.00 | 2,736,919,983.00 | -131,095,922.00 | 2,605,824,061.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 7,588,004,608.00 | 7,244,826,244.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 7,588,004,608.00 | 7,244,826,244.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | 0.00 | -1,740,789,879.00 | -2,679,778.00 | -1,743,469,657.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.3 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | 0.00 | -1,740,789,879.00 | -2,679,778.00 | -1,743,469,657.00 |
| 3.3.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Increase in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | 2,424,598.00 |
| 4. Balances as at the end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,244,761,356.00 | 0.00 | -87,683,584.00 | 0.00 | 889,640,475.00 | 0.00 | 11,620,075,705.00 | 0.00 | 85,465,192,715.00 | 26,928,675,364.00 | 112,393,868,079.00 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
| Item | H1 2019 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balances as at the end of the prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,590,966,191.00 | 0.00 | -28,507,585.00 | 0.00 | 1,152,626,310.00 | 2,392,243,713.00 | 0.00 | 75,905,727,392.00 |
| Add: | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -256,101,258.00 | 0.00 | -881.00 | 256,093,223.00 | 0.00 | -8,916.00 |
| Adjustments for changed accounting policies | ||||||||||||
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as at the beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,590,966,191.00 | 0.00 | -284,608,843.00 | 0.00 | 1,152,625,429.00 | 2,648,336,936.00 | 0.00 | 75,905,718,476.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 184,891,191.00 | 0.00 | 0.00 | 1,060,791,147.00 | 0.00 | 1,245,682,338.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 184,891,191.00 | 0.00 | 0.00 | 2,104,743,110.00 | 0.00 | 2,289,634,301.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,043,951,963.00 | 0.00 | -1,043,951,963.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,043,951,963.00 | 0.00 | -1,043,951,963.00 |
| 3.3.3 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other | ||||||||||||
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Changes in defined benefit pension schemes transferred to | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Increase in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balances as at the end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,590,966,191.00 | 0.00 | -99,717,652.00 | 0.00 | 1,152,625,429.00 | 3,709,128,083.00 | 0.00 | 77,151,400,814.00 |
H1 2018
Unit: RMB
| Item | H1 2018 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balances as at the end of the prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,588,541,593.00 | 0.00 | 192,097,489.00 | 0.00 | 889,640,475.00 | 1,765,291,136.00 | 0.00 | 75,233,969,456.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as at the beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,588,541,593.00 | 0.00 | 192,097,489.00 | 0.00 | 889,640,475.00 | 1,765,291,136.00 | 0.00 | 75,233,969,456.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | -34,867,001.00 | 0.00 | 0.00 | 374,832,825.00 | 0.00 | 342,390,422.00 |
| 3.1 Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -34,867,001.00 | 0.00 | 0.00 | 2,115,622,704.00 | 0.00 | 2,080,755,703.00 |
| comprehensive income | ||||||||||||
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | 0.00 | -1,740,789,879.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | 0.00 | -1,740,789,879.00 |
| 3.3.3 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Loss offset by surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.5 Other comprehensive income transferred to retained earnings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Increase in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 |
| 4. Balances as at the end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,590,966,191.00 | 0.00 | 157,230,488.00 | 0.00 | 889,640,475.00 | 2,140,123,961.00 | 0.00 | 75,576,359,878.00 |
III. Company ProfileFounded in Beijing on 9 April 1993 and headquartered in the city, BOE Technology Group Co., Ltd. (hereinafter referred to as the“Company”) is a company limited by shares. Its parent and ultimate controller is Beijing Electronics Holding Co., Ltd. (“ElectronicsHolding”).The Company and its affiliated subsidiaries (hereinafter jointly referred to as the “Group”) are divided into three major businessdivisions, namely, interface devices, smart IoT and smart medicine and engineering.For information about the Company’s subsidiaries, see item IX herein.The consolidation scope for consolidated financial statements was determined based on control including the Company andsubsidiaries controlled by the Company. Information about subsidiaries was presented in Note IX. The increase and decrease ofsubsidiaries was listed in Note VIII.IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statements have been prepared on the basis of going concern.
2. Continuing Operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant Accounting Policies and Estimates
Reminder of the specific accounting policies and estimates:
Naught
1. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprisesissued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely theconsolidated financial position and financial position as of 30 June 2019, the consolidated results of operations and results ofoperations and the consolidated cash flows and cash flows in the first half year of 2019 of the Company.These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of InformationDisclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the ChinaSecurities Regulatory Commission (hereinafter referred to as “CSRC”) in 2014.
2. Accounting period
The accounting year of the Group is from January 1
st
to December 31
st
.
3. Operating Cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal
operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
4. Recording Currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing thefunctional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. Somesubsidiaries of the Company adopt the currency other than RMB as the recording currency. The Company translates the foreigncurrency financial statement of subsidiaries when compiling the financial statement.
5. Accounting Treatments for a Business Combination Involving Entities Under and those not UnderCommon Control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combiningenterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control isnot transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combinedat the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount ofconsideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. Ifthe balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Groupconducting business combinations is recognized in current profit and loss. The combination date is the date on which one combiningenterprise effectively obtains control of the other combining enterprises.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining entitiesare not ultimately controlled by the same party or parties both before and after the business combination. When the Group acts as thecombination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date ofassets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equitysecurities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of theacquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of theacquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securitiesor liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liabilitysecurities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss.The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at theacquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. Theacquisition date is the date on which the acquirer effectively obtains control of the acquiree.In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchasesheld before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchasedate with the difference between the fair value and its book value be recorded in the current investment income. The othercomprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the otherowners under the measurement of the equity method that involved with the afterwards equity of the purchases held before thepurchase date should be transferred in the current investment income.
6. Preparation Methods for Consolidated Financial Statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and itssubsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of theinvestee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right onthe investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyedby the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in theconsolidated financial statements from the date that control commences until the date that control ceases.Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity inconsolidated income statement and the net profits in the consolidated income statement.If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy atowners’ equity at period-begin, its balance still offset minority shareholders’ equity.When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makesnecessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period or accountingpolicies. Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminatedin preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in thesame way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities under commoncontrol, the financial statements of the subsidiary are included in the consolidated financial statements based on book value in theconsolidated balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at thedate that common control was established. Therefore the opening balances and the comparative figures of the consolidated financialstatements are restated.Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under commoncontrol, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into theconsolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.
(3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment incomeduring the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair valueat the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losingcontrol right.Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multipletransactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;- These transactions only when be regarded as a whole could achieve a complete business result;- The occurrence of a deal depends on at least one other transactions；- A deal alone is not economical, it is economical with other trading together.If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposedaccording to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing thecontrol right.If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated
since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidatedfinancial statements, which together transferred into the current profits and losses in the loss of control , when the Group losingcontrol on its subsidiary.
(4) Changes of non-controlling interests
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in asubsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and theamount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. Ifthe credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are restricted bythe arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant should notindividually control the arrangement, while any of the participant that owns the jointly control could stop other participants or theparticipants group from individually control the arrangement.Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where theparticipant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangementwhere the participant party is only entitled to the net assets of the arrangement.The participant party should confirm the following items related to the interests portion among the jointly operation and execute theaccounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears inthe joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the jointoperation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from saleof the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and theexpense incurred to the joint operation according to the Group’s stake in it.
8. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-termand high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value areminimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rateat the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchangerates at the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. Theresulting exchange differences are recognized in profit or loss, except those arising from the principals and interests on foreigncurrency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominatedin foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transactiondate. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchangerate at the date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item ofavailable-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; otherdifferences shall be recognized in current profit or loss.
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Theequity items, excluding “Retained earning” and “Difference arising from translation of foreign currency financial statements in othercomprehensive income”, are translated to Renminbi at the spot exchange rates at the transaction dates. The income and expenses offoreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the transaction dates. The resultingexchange differences are listed in other comprehensive income. Upon disposal of a foreign operation, the cumulative amount of theexchange differences recognized in equity which relates to that foreign operation is transferred to profit or loss in the period in whichthe disposal occurs.
10. Financial Instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.
(1) Classification, recognition and measurement of financial assets
The Company classifies the financial assets into financial assets measured at amortized cost, financial assets measured by the fairvalue and the changes recorded in other comprehensive income and financial assets at fair value through profit or loss based on thebusiness model for financial assets management and characteristics of contractual cash flow of financial assetsFinancial assets initially recognized shall be measured at their fair values. For financial assets measured at their fair values and ofwhich the variation is recorded into the profit or loss of the current period, the transaction expenses thereof shall be directly includedinto the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into the initially recognizedamount. For accounts receivable and notes receivable generated from sales of commodities or provision of labor services, excludingor without regard to major financing, the expected consideration amount the Company has the right to collect will be taken by theCompany as the initially recognized amount.
① Financial assets measured by the amortized cost
The business mode of the Company to manage the financial assets targets at collecting the contractual cash flow. What's more, thecontractual cash flow characteristics of the financial assets are consistent with the basic lending arrangement, that is, the cash flowgenerated in the specific date is the payment of the interest based on the principal and outstanding principal amount. This kind offinancial assets of the Company shall be subsequently measured based on the amortized cost, the interest income shall be recognizedby effective interest method, and the gains or losses arising from the amortization, impairment shall be included into current profitand loss.
②Financial assets measured at the fair value with its changes included into other comprehensive incomeFor the Company, the business mode to manage this type of financial assets aims at not only the recovery of contract cash flows butthe sales, and cash flows of the financial assets generated from the financial assets on a specific date merely used to the payment forprincipals and interests based on the amount of outstanding principals. The Company calculates such financial assets as per fair valuewhose change is included into corresponding comprehensive income, but impairment loss or gain, exchange gain or loss and interestincome calculated as per actual interest rate method are included into the current profit and loss.Furthermore, the Company designates partial non-tradable equity vehicle investment as the financial asset measured with fair valuewhose change is included into other comprehensive income. The Company includes the related dividend income of such financialassets into the current profit and loss with the change in fair value included into other comprehensive income. At the time ofderecognition of such financial assets, accumulated gain or loss included into other comprehensive income before will be shifted toretained earnings from other comprehensive incomes but not included into the current profit and loss.
③ Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized cost and financialassets measured with fair value whose change is included into other comprehensive income into financial assets at fair value throughprofit or loss and listed as trading financial assets. For such financial assets, the Company adopts the fair value for the subsequent
measurement, and the changes in fair value are included into current profit and loss. Financial assets which will mature in more thanone year since the balance sheet date and expected to be held for more than one year shall be presented as other non-current financialassets.
(2) Classification, recognition and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or lossand other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediatelyrecognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initialrecognition amounts.
① Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative instrumentsbelonging to financial liabilities) and financial liabilities designated at the initial recognition to be measured by the fair value andtheir changes are recorded in the current profit or loss.Trading financial liabilities (including the derivative instruments belonging to financial liabilities) are subsequently measured at fairvalue, and the changes of fair value except those related to hedge accounting) shall be recorded in the current profit or loss.For the financial liabilities at fair value through profit or loss, the change of such liability's fair value arising from changes in theCompany's own credit risk is included into other comprehensive income. And when the liability is derecognized, the accumulativechange amount of its fair value arising from the change of own credit risk included into other comprehensive income is transferred tothe retained earnings. The changes of the remaining fair value are included in the current profit or loss. If the treatment of changeeffects in own credit risk of such financial liability in the above method may cause or expand the accounting mismatching in theprofit or loss, the Company will include all gains or losses (including the amount influenced due to the changes in own credit risk ofthe enterprise) of such financial liability into the current profit or loss.
② Other financial liabilities
Other financial liabilities except for those formed due to transfer of financial assets failing to comply with derecognition condition orcontinuously getting involved in transferred financial assets and financial guarantee contract are classified into financial liabilitiesmeasured with amortized cost and subject to subsequent measurement based on amortized cost. Gains or losses generated fromderecognition or amortization are included into the current profit or loss.
(3) Recognition and measurement of financial assets transfer
The Company derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risksand rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but hastransferred control of the asset.If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset isrecognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refersthe level of risk by the financial asset changes the enterprise is facing.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of the financial assettransferred; and (b) the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognizedin other comprehensive income, is recognized in profit or loss.If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocatedbetween the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. Thedifference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for thepart derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in othercomprehensive income, is recognized in profit or loss.
If the Company endorses the financial assets sold by right of recourse and holding financial assets, it needs to confirm that whetheralmost all risks and remuneration in the ownership of financial assets have been transferred or not. Where an enterprise hastransferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall stop recognizingthe financial asset； If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stoprecognizing the financial asset. If the Company does not transfer or retain nearly all of the risks and rewards related to the ownershipof the financial asset, then it continuously judges that whether the Company retain the control of the assets, and conducts accountingtreatment according to the principles described in former paragraphs.
(4) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated, derecognition of such financialliabilities (or partial financial liabilities) is conducted by the Company. If the Company (borrower) concludes an agreement with thelender to replace original financial liabilities with new ones and contact terms of new financial liabilities are different from those oforiginal financial liabilities, derecognition of original financial liabilities and recognition of new financial liabilities shall beconducted. In case of material alteration of contract terms of original financial liabilities (partial financial liabilities) by the Company,derecognition of original financial liabilities and recognition of new financial liabilities as per modified terms shall be conducted.In case of derecognition of financial liabilities (partial financial liabilities), the Company includes the balance between its carryingvalue and payment consideration (including non-cash assets transferred out or borne liabilities) into the current profit or loss.
(5) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities,and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financialasset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances,financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
(6) Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in anarm’s length transaction. For a financial instrument which has an active market, the Company uses quoted price in the active marketto establish its fair value. The quoted price in the active market refers to the price that can be regularly obtained from exchangemarket, agencies, industry associations, pricing authorities; it represents the fair market trading price in the actual transaction. For afinancial instrument which does not have an active market, the Company establishes fair value by using a valuation technique.Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, reference to thecurrent fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. TheCompany measures initially and subsequently the fair value of an interest rate swap at the value of a competitor’s interest rate swapquoted by a recognized financial institution as at the Company’s balance sheet date in accordance with the principle of consistency.In valuation, the Company adopts applicable valuation techniques supported by sufficient utilizable data and other information incurrent circumstances, selects input values consistent with asset or liability characteristics considered in relevant asset or liabilitytransactions of market participators and prioritizes the applying relevant observable input values. Unobservable input values shall notbe applied unless relevant observable input values are not accessible or feasible.
(7) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.The consideration received from issuing equity instruments, net of transaction costs, are added to shareholders’ equity. All types ofdistribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted from shareholders’equity. The Company does not recognize any changes in the fair value of equity instruments.An equity instrument distributing dividends during the period of continued existence (including the “interest” generated from thoseclassified as equity instrument) shall be treated as profit distribution.
(8) Testing Method and Accounting Treatment of Impairment for Financial Assets (Excluding Accounts Receivable)
The Company evaluated the expected credit losses of financial assets measured at amortized cost and financial assets (debtinstruments) measured at fair value and changes thereof recorded into other comprehensive income in a single or group wayconsidering all reasonable and well-founded information, including forward-looking information. The measurement of expectedcredit losses was based on whether the credit risk of the financial assets increases remarkably after the initial recognition on thebalance sheet day; if the credit risk increases remarkably after the initial recognition, the Company shall measure the provision forloss based on the specific expected credit loss amount during the entire period of existence; if not, the Company shall measure theprovision for loss based on the specific expected credit loss amount in the following 12 months. Amount increased or reversed ofimpairment lose generated this shall be recorded into the current profit or loss as gains or losses of impairment.Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial RecognitionIf any financial assets’ probability of default within the expected period of existence determined on the balance sheet day isobviously higher than that within the expected period of existence determined during the initial recognition, it shall indicate theremarkable increase of the financial assets’ credit risk. Unless it is under special circumstances, the Company shall adopt variousvariations in the default risk in the following 12 months as the reasonable basis for estimating corresponding variations in the defaultrisk within the entire period of existence and determining whether the credit risk increases remarkably after the initial recognition.
11. Notes Receivable
The Company will always measure the provision for notes receivable whether including major financing components or not based onthe amount similar to that of expected credit losses for the whole existence period and the amount increased or reversed ofimpairment for losses generated shall be recorded into the current profit or loss as gains or losses of impairment.
12. Accounts Receivable
The recognition standard and withdrawal method of bad debt provision for accounts receivable of the Company in 2018 are asfollows:
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made Individually
| Definition or amount criteria for an account receivable with a significant single amount | The single amount is more than RMB50,000,000.00 |
| Making individual bad-debt provisions for accounts receivable with a significant single amount | Impairment test is made individually |
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
| Name of portfolios | Bad debt provision method |
| Credit Risk Characteristics | Other method |
Note: Respectively fill in the withdrawal method of bad debt provision for various portfolios according to names of specificportfolios.
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made Independently
| Reason for bad debt provision | Lawsuits or deteriorative customers’ credit status |
| Withdrawal method | The lower one of the expected future receivable amount and carrying value |
Recognition standards and withdrawal methods of the bad debt provision for accounts receivable since 1 January 2019:
For the accounts receivable (regardless of any significant financing composition), the Company will always measure correspondingprovision for loss based on the amount equaling to the expected credit loss within the entire existence period, and the Company hasdivided its clients into different groups based on different credit risks. Within the same group, various clients should possess similarrisk features, and the historical loss rule should have no obvious difference among various clients; in addition, it could be predictedthat this rule would remain unchanged within the predicted collection period of the outstanding accounts receivable. In terms ofdifferent groups, the above-mentioned financial assets’ predicted credit loss should be calculated based on the history credit lossexperience and the usage preparation matrix. Meanwhile, according to relevant historical experience, special factors of the borroweron the balance sheet date, the current situation and the future economic situation, corresponding evaluation could be performed forfuture adjustment.
13. Other Receivables
The recognition method and accounting treatment of expected credit losses of other receivablesThe recognition standard and withdrawal method of bad debt provision for other receivables of the Company in 2018 are as follows:
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made Individually
| Definition or amount criteria for an account receivable with a significant single amount | The single amount is more than RMB50,000,000.00 |
| Making individual bad-debt provisions for accounts receivable with a significant single amount | Impairment test is made individually |
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
| Name of portfolios | Bad debt provision method |
| Credit Risk Characteristics | Other method |
Note: Respectively fill in the withdrawal method of bad debt provision for various portfolios according to names of specificportfolios.
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made Independently
| Reason for bad debt provision | Lawsuits or deteriorative customers’ credit status |
| Withdrawal method | The lower one of the expected future receivable amount and carrying value |
Recognition standards and withdrawal methods of the bad debt provision for other receivables since 1 January 2019:
For the other receivables (regardless of any significant financing composition), the Company will always measure correspondingprovision for loss based on the amount equaling to the expected credit loss within the entire existence period, and the Company has
divided its clients into different groups based on different credit risks. Within the same group, various clients should possess similarrisk features, and the historical loss rule should have no obvious difference among various clients; in addition, it could be predictedthat this rule would remain unchanged within the predicted collection period of the outstanding accounts receivable. In terms ofdifferent groups, the above-mentioned financial assets’ predicted credit loss should be calculated based on the history credit lossexperience and the usage preparation matrix. Meanwhile, according to relevant historical experience, special factors of the borroweron the balance sheet date, the current situation and the future economic situation, corresponding evaluation could be performed forfuture adjustment.At the end of the Reporting Period, when the Company accounts the expected credit losses of other receivables, if the expected creditloss is higher than the carrying amount of its current provision for impairment, the difference will be recognized as impairment loss;if lower, the difference will be recognized as impairment gains.
14. Inventory
Is the Company subject to any disclosure requirements for special industry?No
(1) Classification and cost of inventories
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include low-valueconsumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition of fixed assets.Inventories are initially measured by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress andfinished goods include direct labor costs and an appropriate allocation of production overheads.
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adoptingone-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventoriesOn the balance sheet day, inventories are carried at the lower of cost and net realizable value.Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and theestimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the productionof inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The netrealizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities ofinventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion ofinventories shall be based on general selling prices.Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in thevalue of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories
The Group maintains a perpetual inventory system.
15. Assets Held for Sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through sellingor other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction,the same below )which simultaneously meet with the following conditions as the assets held for sale.– The non-current assets or disposal group could be immediately sold under the current condition in accordance with the usual termsof selling this kind of assets in similar transactions;– The sale is extremely possible that is to say, the Company has made a resolution regarding a sales planning and signed a legallybinding purchase agreement with other party, and the sale is expected to be finished within one year.When the non-current assets be divided as assets held for sale (excluding financial assets), the Group measures the non-current assetsheld for sale, deferred income tax assets and the investment properties be follow-up measured by the fair value mode according to thelower one between the book value and the fair value after deducting the net amount of the disposal expenses, while the deference thatthe book value higher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of theassets.The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by thecost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held forsale that measured by equity method should cease the equity method measurement.
16. Investments in Debt Obligations
See Note V. 10 Financial Instruments for details
17. Other Investments in Debt Obligations
See Note V. 10 Financial Instruments for details
18. Long-term Equity Investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Long-term equity investments acquired through a business combination– The initial investment cost of a long-term equityinvestment obtained through a business combination involving entities under common control is the Company’s share of thesubsidiary’s equity at the combination date. The difference between the initial investment cost and the carrying amounts of theconsideration given is adjusted to share premium in capital reserve. If the balance of the share premium is insufficient, any excess isadjusted to retained earnings. For the long-term equity investment of the subsidiaries formed from the enterprise merger under thesame control that realized step by step of the multiple transaction not belong to package deal, the Company would adjust the capitalstock premium among the capital surplus according to the difference between the initial investment cost of the long-term equityinvestment recognized according to the above principles and the sum of the book value of the long-term equity investment beforereaching the merger and the book value of the newly paid consideration which be further received on the merger date, and if thebalance of the share premium is insufficient, any excess is adjusted to retained earnings.– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control onthe acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment
obtained through a business combination involving entities not under common control by two or more transactions and by severalsteps, the initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before theacquisition date held by the Company and newly investment cost at the acquisition date.(b) Long-term equity investments acquired otherwise than through a business combinationFor the Long-term equity investments acquired otherwise than through a business combination, if the long-term investment isacquired by paying cash, the Group shall, upon initial recognition, take the purchase price actually paid as the initial investment cost ;For the long-term equity investment obtained by issuing equity securities, the Group takes the fair value of equity securities issued asthe initial investment cost.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment(a) Investments in subsidiariesIn the Company’s financial statements, investments in subsidiaries are accounted for using the cost method, unless the investment isclassified as held for sale. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall berecognized as investment income, without dividing whether it’s the net profit realized by the investee before the investment or afterthe investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid orconsideration.The investment into the subsidiaries is stated at cost less impairment losses in the balance sheet.In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles.(b) Investment in jointly controlled enterprises and associatesThe joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoythe rights of their own net assets.An associate is an enterprise over which the Group has significant influence.Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equitymethod, unless the investment is classified as held for sale.The Group makes the following accounting treatments when using the equity method:
– Where the initial investment cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’sidentifiable net assets at the date of acquisition, the investment is initially recognized at the initial investment cost. Where the initialinvestment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference ischarged to profit or loss.– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting theamortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoptionof CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of theequity investment difference is amortized using the straight-line method over a period which is determined in accordance withprevious accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of theinvestment is reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains andlosses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as“changes of other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to beenjoyed or shared, and at the same time adjust the book value of the long-term equity investment.– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based onthe fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting fromtransactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interestin the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates
or jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence ofimpairment.– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equityinvestment and any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointlycontrolled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where netprofits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of thoseprofits only after its share of the profits equals the share of losses not recognized.
(3) The basis for determination of joint control or significant influence over investee enterpriseJoint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities ofthe arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-makingthrough the unanimous consent of the parties sharing control.The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
? No single venture is in a position to control the operating activities unilaterally;? Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control orjoint control over those policies.
19. Investment Property
The Company classified its real estate held for earning rents or capital appreciation or for both into the investment property. TheCompany applied the cost model to measure the investment real estate. Namely, it would be presented in the Balance Sheet throughdeducting the accumulated depreciation, amortization and the depreciation reserves from the costs. Besides, the Company wouldcalculate and withdraw or amortize the investment real estate by using the straight-line method within the service life throughdeducting the predicted net residual value and the accumulated provision reserves from the costs, unless the investment real estatecould meet corresponding held-for-sale conditions.For the asset showing any sign of depreciation, the Company would conduct the impairment test and evaluate its recoverable amount.The recoverable amount refers to the higher value between the net amount by deducting various disposal expenses from the fair valueof the asset (or the asset group/asset portfolio) and the current value of its predicted future cash flow. However, the asset portfolioshould be the smallest asset portfolio which could be recognized, and the generated cash inflow would basically be independent ofother assets or asset portfolios. The asset group should consist of relevant assets creating the cash inflow. While recognizing the assetgroup, it’s required to consider whether the asset group could independently generate any cash inflow. Meanwhile, it’s also necessaryto take the management’s production and business operation activities control or the decision-making way into consideration.The net amount by deducting various disposal expenses from the asset’s fair value would be determined based on the amount bydeducting the amount that could be directly attributed to the asset’s disposal expense from the price recognized during the fairdealing. However, the current value of the asset’s predicted future cash flow should be determined based on the predicted future cashflow generated during the continuous use and the ultimate disposal after corresponding discounting by selecting an appropriatepre-tax discount rate.According to the recoverable amount’s estimated results, if the asset’s recoverable amount is lower than its book value, its bookvalue would write down to the recoverable amount, and the write-down amount should be recognized as the asset impairment losswhich would be calculated into the current loss and gain. At the same time, corresponding asset impairment provisions should also becalculated and withdrawn. In terms of the impairment loss related to the asset group or the asset portfolio, it’s required to firstlydeduct and amortize the book value of Goodwill in the asset group or the asset portfolio; then, according to the proportion of thebook value of other assets in the asset group or asset portfolio (except the Goodwill), the book value of other assets would be
deducted based on such proportion. However, the book value of various assets after such deduction would not be lower than thehighest value among the net amount by deducting various disposal expenses from the asset’s fair value (if any), the current value ofthe asset’s predicted future cash flow (if any) and zero. Upon recognized, the asset impairment loss would not be reversed during thesubsequent accounting periods.The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
| Category | Depreciable life | Residual value rate (%) | Yearly depreciation |
| Land use rights | 32 - 50 years | 0% | 2.0% - 3.1% |
| Houses and buildings | 25 - 40 years | 3%-10% | 2.3% - 3.9% |
20. Fixed Assets
(1) Conditions for Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental toothers or for operation and administrative purposes with useful lives over one year. The cost of a purchased fixed asset comprises thepurchase price, related taxes, and any directly attributable expenditure for bringing the asset to working condition for its intended use.The cost of self-constructed assets is measured in accordance with the policy set out in Note V.21. Where parts of an item of fixedassets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciationrates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of anitem of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group, and thecarrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit orloss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation Methods
| Category of fixed assets | Depreciation method | Depreciable life | Residual value rate (%) | Yearly depreciation |
| Workshops and buildings | Straight-line method | 10-50 years | 3%-10% | 1.8%-9.7% |
| Equipments | Straight-line method | 2-25 years | 0-10% | 3.6%-50% |
| Others | Straight-line method | 2-10 years | 0-10% | 9.0%-50% |
Naught
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to thelower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum leasepayment should be regarded as the entry value of the long-term account payable with the difference be recognized as theunrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it isreasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assetsshall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one ofthe lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest rate methodwithin each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,the Group will respectively list the difference from the long-term account payable related to the finance lease minuses the
unrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
21. Construction in Progress
(1) Categories of construction in progress
The enterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructedfixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and thenecessary expenses happened before the assets reach the expected available state.。
(2) Standards and time of transferring construction in progress into fixed asset
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listedamong the construction in progress and not withdraw the depreciation.
(3) Impairment test method and withdrawal method for impairment provision of construction in progressIf any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of anasset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cashflows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cashinflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identificationof an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflowsfrom other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’soperations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less coststo sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directlyattributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discountingfuture cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairmentlosses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset groupor set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro ratabasis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less coststo sell (if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
22. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized aspart of the cost of the asset.
(2) Capitalization period of borrowing costs
The capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessationof capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowingexpenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach theexpected available state had began, the borrowing expenses had began capitalization.When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of
the borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructedand completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to differentsituation.Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use orsale during the continuing construction of other parts, and if the acquisition and construction or production activities which arenecessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization ofthe borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition ofuse or sale.
(3) Period for suspending capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lastsfor more than 3 months, the capitalization of the borrowing costs shall be suspended.
(4) Calculation method of capitalized amount of borrowing costs
? As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, theto-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at thepresent period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporaryinvestment.? Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, theenterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying theweighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by thecapitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weightedaverage interest rate of the general borrowing.? During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount ofinterest actually incurred to the relevant borrowings in the current period.When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of theborrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount duringthe initial recognition of the borrowings.During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currencyspecific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchangedifferences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specificborrowings, should be regarded as the financial expenses and included in the current gains and losses.
23. Intangible Assets
(1) Pricing Method, Useful life and Impairment test
(a) Pricing method of intangible assetsIntangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) andimpairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized onthe straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.(b) Estimated useful life of intangible assets with limited useful lifeAs for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Groupamortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classifiedas held for sale.
| Item | Estimated useful life | Basis |
| Land use rights | 40-50 years | Period stipulated by the Land Use Right Certificate |
| Proprietary technology and patent right | 5-10 years | Period agreed in the contract or estimated to bring economic benefits for the Company |
| Computer software | 3-10 years | Period agreed in the contract or estimated to bring economic benefits for the Company |
| others | 5-20 years | Period agreed in the contract or estimated to bring economic benefits for the Company |
(c) Judgment basis of intangible assets with uncertain useful lifeAn intangible asset is regarded as having an indefinite useful life and is not amortized when there is no foreseeable limit to the periodover which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group doesn’t have anyintangible assets with indefinite useful lives.(d) Withdrawal of impairment provision of intangible assetsIf any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of anasset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cashflows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cashinflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification ofan asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows fromother assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’soperations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less coststo sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directlyattributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discountingfuture cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment lossesrelated to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or setof asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell(if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting Policies of Internal R & D Expenses
(a) Criteria of dividing the research phase and development phase of internal R&D projectResearch is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge andunderstanding. Development is the application of research findings or other knowledge to a plan or design for the production of newor substantially improved materials, devices, or products before the start of commercial production or use.(b) Calculation of the expenditures of internal R&D projectExpenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on thedevelopment phase.
Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase arecapitalized if development costs can be measured reliably, the product or process is technically and commercially feasible, and theGroup intends to and has sufficient resources to complete development. Capitalized development costs are stated at cost lessimpairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they areincurred.
24. Impairment of Long-term Assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. TheGroup will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise mergerby the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its presentvalue of expected future cash flows. An asset group is the smallest identifiable group of assets that generates cash inflows that arelargely independent of the cash inflows from other assets or asset groups. Fair value refers to the price received from selling an assetor paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Groupevaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on themeasurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use ofthe assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequateavailable data and supported by other information. The evaluation technology used mainly including the market method, equitymethod and cost method.An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflowsfrom other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of an assetgroup is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from otherassets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations andhow management makes decisions about continuing or disposing of the Group’s assets.The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derivedfrom continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects currentmarket assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment lossesrelated to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or setof asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell(if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
25. Long-term Deferred Expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
| Item | Amortization period (years) |
| Cost of operating lease assets improvement | 3-10 years |
| Cost of construction and use of public facilities | 10-15 years |
| Others | 2-10 years |
26. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn workerwages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium andbirth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities andrecords which in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or afterthe labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-termcompensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The definedcontribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among thesocial security system set up and managed by the government institutions according to the requirements of the relevant Chineseregulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departmentsaccording to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance andthe unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. Theenterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employeesvoluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Companyrecognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Groupnot involved with any defined benefit plans.
(3) Accounting Treatment of the Demission Welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice forcompensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from thedemission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
? When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations orthe reduction advice:
? The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time whenthe reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then ledall parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfareafter demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits andlong-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
27. Lease Liabilities
Not applicable
28. Provisions
(1) Criteria of estimated liabilities
A provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimatedreliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
(2) Measurement of estimated liabilities
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent whencaring out the relevant current obligations. As for those with significant influences on the time value of money, the estimatedliabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing thebest estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of moneyrelated to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the rangeis the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,the best estimated number should be handled respectively according to the following situations:
? If the contingencies involve with a single item, should be recognized according to the most likely happened amount.? If the contingencies involve with various items, should be recognized according to the calculation of various possible results andthe relevant probabilities.The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the bookvalue according to the current best estimated number.
29. Revenue
Is the Company subject to any disclosure requirements of special industry?NoIs the Company has implemented the new standards governing revenue?
□ Yes √No
30. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
If the Group first obtains government grants related to assets and then recognizes the long-term assets purchased and constructed,deferred income is included in profit and loss based on a reasonable and systematic approach by stages when related assets areinitially depreciated or amortized; or the 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 government grants related to the assets after relevantlong-term assets are put into use, deferred income is included in profit and loss based on a reasonable and systematic approach bystages within the remaining useful life of relevant assets, or the deferred income is written off against the carrying amount of relevantasset when the grants are obtained; the assets shall be depreciated or amortized based on the carrying amount after being offset andthe remaining useful life of relevant assets.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Related to ProfitsIf they are used to compensate for related costs or losses of the Group in the future period, it shall be recognized as deferred income,and included in profit and loss or used to offset related costs; otherwise it shall be directly included in profit and loss or used to offsetrelated costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriated to thelending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loan amount is used asthe entry value and relevant borrowing costs are calculated on the basis of the loan principal and the preferential interest rate. If theinterest subsidy is directly appropriated to the Group, relevant borrowing costs shall be offset by corresponding interest subsidy.
31. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a differencebetween the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can becarried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assetsshall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset bythe deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of thesubsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred incometax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future;and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.
(2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a differencebetween the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from theinitial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating tothe investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferredincome tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise cancontrol the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
32. Lease
(1) Accounting Treatment of Operating Lease
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.Fixed assets leased out under operating leases, except for investment property (see Notes V. 16), are depreciated in accordance withthe Group’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the accountingpolicy. Income derived from operating leases is recognized in the income statement using the straight-line method over the lease term.If initial direct costs incurred in respect of the assets leased out are material, the costs are initially capitalized and subsequentlyamortized in profit or loss over the lease term on the same basis as the lease income. Otherwise, the costs are charged to profit or lossimmediately.
(2) Accounting Treatments of Financial Lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values andthe present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments arerecorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognizedas unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to theamounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accountingpolicies described in Notes V. 16 and Notes V. 20, respectively.If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset isdepreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and its
estimated useful life.Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. Theamortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arisingfrom finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities duewithin one year, respectively in the balance sheet.The economic essence of leaseback formed financial lease is mortgage loan. The Company takes the received financing asborrowings to report, and conducts subsequent measurements for long-term accounts payable according to amortized costs byeffective interest method.
33. Other Significant Accounting Policies and Estimates
(1) Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two ormore parties are subject to common control, joint control, or significant influence from another party, they are considered to berelated parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control onlyfrom the State and that have no other related party relationships are not regarded as related parties of the Group. Related parties of theGroup and the Company include, but are not limited to:
(a) the Company’s parent(b) the Company’s subsidiaries(c) enterprises that are controlled by the Company’s parent(d) investors that have joint control or over exercise significant influence over the Group(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals andthe Group(f) joint ventures of the Group, including subsidies of joint ventures(g) associates of the Group, including subsidies of associates(h) principal individual investors and close family members of such individuals(i) key management personnel of the Group and close family members of such individuals(j) key management personnel of the Company’s parent(k) close family members of key management personnel of the Company’s parent; and(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key managementpersonnel of the Group, and close family members of such individuals.Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises andindividuals are considered as (but not restricted to) related parties based on the disclosure requirements of “AdministrativeProcedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold 5% or more of the Company’s shares(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the Company’s shares(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within thenext 12 months pursuant to a relevant agreement(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within thenext 12 months pursuant to a relevant agreement; and(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by anindividual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive.
(2) Segment Report
The Company will define various operation divisions based on the internal organizational structure, management requirements andthe internal reporting system. If two or above operation divisions possess similar economic features and the identical or similarfeatures can be observed in each single product’s or service’s nature, the production process’s nature, the product or servicecustomer’s type, the product selling or service rendering method, the legal influence and the administrative law impact on the productor the rendered service, it could be consolidated into one operation division. Based on each single operation division, the reportingdivision could be determined by taking the importance principle into consideration.While formulating the divisional report, the Company should measure the divisional transaction revenue based on the actualtransaction price, and the accounting policy applied to formulate the divisional report should be consistent with that applied toformulate the group’s financial statements.
34. Changes in Significant Accounting Policies and Estimates
(1) Changes in Significant Accounting Policies
√ Applicable □ Not applicable
| Contents of changes in accounting policies and reasons thereof | Approval procedures | Note |
| (a) Presentation of financial statements The Company prepared the financial statements for 2019 and adjusted data of same period as required by the CK (2019) No. 6 Notice on Revising and Issuing Formats of 2019 Financial Statements for General Enterprises enacted by the Ministry of Finance in April 2019. (b) Non-monetary asset exchange The Ministry of Finance issued the CK (2019) No. 8 “Notice on Revising and Issuing Accounting Standards for Business Enterprises No. 7-Non-monetary Assets Exchange” in May 2019. The Company starts to implement above notice since 10 June 2019 and adjusted all non-monetary assets exchange occurring during the period from 1 January 2019 to the execution date in accordance with the aforesaid standards. (c) Debt restructuring The Ministry of Finance issued the CK (2019) No. 8 “Notice on Revising and Issuing Accounting Standards for Business Enterprises No. 12-Debt Restructuring”. The Company starts to implement this notice since 17 June 2019 and it is unnecessary to adjust the debt restructuring occurring during the period from 1 January 2019 to the execution date. (d) Financial instruments In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments (revised), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (revised), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (revised) and Accounting Standards for Business Enterprises No. 37-Presentation of | Reviewed and approved by the Company’s Board of Directors and Supervisory Committee | The implementation of Accounting Standards for Business Enterprises No. 7-Non-monetary Assets Exchange, Accounting Standards for Business Enterprises No. 12 Debt Restructuring and new standards governing financial instruments did not greatly influence the Company’s financial condition and operating results. |
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Financial Instruments (revised) (hereinafter collectively referred to as “newstandards governing financial instruments”). The Company starts toimplement above revised accounting standards since 1 January 2019 andadjusts relevant contents of accounting policies.Item
| Item | 31 December 2018 | 1 January 2019 | Adjusted |
| Current assets: | |||
| Monetary capital | 51,481,539,711.00 | 51,481,539,711.00 | 0.00 |
| Settlement reserve | 0.00 | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 | 0.00 |
| Trading financial assets | 0.00 | 5,534,413,566.00 | 5,534,413,566.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 | 0.00 |
| Notes receivable | 656,781,577.00 | 656,781,577.00 | 0.00 |
| Accounts receivable | 19,880,680,518.00 | 19,874,492,119.00 | -6,188,399.00 |
| Financing backed by accounts receivable | 0.00 | 0.00 | 0.00 |
| Prepayments | 770,633,448.00 | 770,633,448.00 | 0.00 |
| Premiums receivable | 0.00 | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 | 0.00 |
| Other receivables | 2,454,174,971.00 | 2,453,289,708.00 | -885,263.00 |
| Including: Interest receivable | 140,597,317.00 | 140,597,317.00 | 0.00 |
| Dividends receivable | 3,711,768.00 | 3,711,768.00 | 0.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 | 0.00 |
| Inventories | 11,985,398,172.00 | 11,985,398,172.00 | 0.00 |
| Contract assets | 0.00 | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 | 0.00 |
| Other current assets | 12,463,073,779.00 | 6,928,660,213.00 | -5,534,413,566.00 |
| Total current assets | 99,692,282,176.00 | 99,685,208,514.00 | -7,073,662.00 |
| Non-current assets: | |||
| Loans and advances to customers | 0.00 | 0.00 | 0.00 |
| Investments in debt obligations | 0.00 | 0.00 | 0.00 |
| Available-for-sale financial assets | 734,022,359.00 | 0.00 | -734,022,359.00 |
| Investments in other debt obligations | 0.00 | 0.00 | 0.00 |
| Held-to-maturity investments | 0.00 | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 | 0.00 |
| Long-term equity investments | 2,389,166,886.00 | 2,389,166,886.00 | 0.00 |
| Investments in other equity instruments | 0.00 | 721,155,927.00 | 721,155,927.00 |
| Other non-current financial assets | 0.00 | 12,866,432.00 | 12,866,432.00 |
| Investment property | 1,283,867,651.00 | 1,283,867,651.00 | 0.00 |
| Fixed assets | 128,157,730,995.00 | 128,157,730,995.00 | 0.00 |
| Construction in progress | 56,423,354,887.00 | 56,423,354,887.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 | 0.00 |
| Intangible assets | 5,937,679,394.00 | 5,937,679,394.00 | 0.00 |
| R&D expense | 0.00 | 0.00 | 0.00 |
| Goodwill | 904,370,509.00 | 904,370,509.00 | 0.00 |
| Long-term prepaid expense | 360,640,853.00 | 360,640,853.00 | 0.00 |
| Deferred income tax assets | 252,373,622.00 | 252,373,622.00 | 0.00 |
| Other non-current assets | 7,893,002,053.00 | 7,893,002,053.00 | 0.00 |
| Total non-current assets | 204,336,209,209.00 | 204,336,209,209.00 | 0.00 |
| Total assets | 304,028,491,385.00 | 304,021,417,723.00 | -7,073,662.00 |
| Current liabilities: | |||
| Short-term borrowings | 5,449,954,885.00 | 5,449,954,885.00 | 0.00 |
| Borrowings from central bank | 0.00 | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 |
| Notes payable | 591,109,272.00 | 591,109,272.00 | 0.00 |
| Accounts payable | 22,213,956,616.00 | 22,213,956,616.00 | 0.00 |
| Advances from customers | 1,218,934,743.00 | 1,218,934,743.00 | 0.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 | 0.00 |
| Customer deposits and interbank deposits | 0.00 | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 | 0.00 |
| Payroll payable | 2,224,931,171.00 | 2,224,931,171.00 | 0.00 |
| Taxes payable | 970,108,298.00 | 970,108,298.00 | 0.00 |
| Other payables | 22,956,979,828.00 | 22,956,979,828.00 | 0.00 |
| Including: Interest payable | 1,016,761,921.00 | 1,016,761,921.00 | 0.00 |
| Dividends payable | 23,648,778.00 | 23,648,778.00 | 0.00 |
| Handling charges and commissions payable | 0.00 | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 | 0.00 |
| Contract liabilities | 0.00 | 0.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current liabilities | 5,597,563,204.00 | 5,597,563,204.00 | 0.00 |
| Other current liabilities | 1,004,557,061.00 | 1,004,557,061.00 | 0.00 |
| Total current liabilities | 62,228,095,078.00 | 62,228,095,078.00 | 0.00 |
| Non-current liabilities: | |||
| Insurance contract reserve | 0.00 | 0.00 | 0.00 |
| Long-term borrowings | 94,780,077,864.00 | 94,780,077,864.00 | 0.00 |
| Bonds payable | 10,288,666,233.00 | 10,288,666,233.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 | 0.00 |
| Long-term payables | 1,416,092,239.00 | 1,416,092,239.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 | 0.00 |
| Provisions | 16,457,010.00 | 16,457,010.00 | 0.00 |
| Deferred income | 2,187,558,533.00 | 2,187,558,533.00 | 0.00 |
| Deferred income tax liabilities | 1,419,373,545.00 | 1,419,373,545.00 | 0.00 |
| Other non-current liabilities | 11,334,873,322.00 | 11,334,873,322.00 | 0.00 |
| Total non-current liabilities | 121,443,098,746.00 | 121,443,098,746.00 | 0.00 |
| Total liabilities | 183,671,193,824.00 | 183,671,193,824.00 | 0.00 |
| Owners’ equity: | |||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 | 0.00 |
| Other equity instruments | 0.00 | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Capital reserves | 38,213,100,596.00 | 38,213,100,596.00 | 0.00 |
| Less: Treasury stock | 0.00 | 0.00 | 0.00 |
| Other comprehensive income | -125,258,252.00 | -331,449,633.00 | -206,191,381.00 |
| Specific reserve | 0.00 | 0.00 | 0.00 |
| Surplus reserves | 1,152,626,310.00 | 1,152,625,429.00 | -881.00 |
| General reserve | 0.00 | 0.00 | 0.00 |
| Retained earnings | 11,817,881,286.00 | 12,018,222,993.00 | 200,341,707.00 |
| Total equity attributable to owners of the Company as the parent | 85,856,748,703.00 | 85,850,898,148.00 | -5,850,555.00 |
| Non-controlling interests | 34,500,548,858.00 | 34,499,325,751.00 | -1,223,107.00 |
| Total owners’ equity | 120,357,297,561.00 | 120,350,223,899.00 | -7,073,662.00 |
| Total liabilities and owners’ equity | 304,028,491,385.00 | 304,021,417,723.00 | -7,073,662.00 |
Note for adjustment:
The Company starts to implement the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets, the AccountingStandards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37 –Presentation of Financial Instruments which are revised in 2017 since 1 January 2019 and adjust the financial statements of the firstexecution year as required by standards.Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjusted |
| Current assets: | |||
| Monetary capital | 3,829,814,050.00 | 3,829,814,050.00 | 0.00 |
| Trading financial assets | 0.00 | 0.00 | 0.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 | 0.00 |
| Notes receivable | 1,500,000.00 | 1,500,000.00 | 0.00 |
| Accounts receivable | 36,952,623.00 | 36,952,623.00 | 0.00 |
| Financings backed by accounts receivable | 0.00 | 0.00 | 0.00 |
| Prepayments | 25,020,734.00 | 25,020,734.00 | 0.00 |
| Other receivables | 2,015,828,460.00 | 2,015,819,544.00 | -8,916.00 |
| Including: Interest receivable | 9,659,279.00 | 9,659,279.00 | 0.00 |
| Dividends receivable | 14,115,915.00 | 14,115,915.00 | 0.00 |
| Inventories | 9,289,141.00 | 9,289,141.00 | 0.00 |
| Contract assets | 0.00 | 0.00 | 0.00 |
| Assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current assets | 450,000,000.00 | 450,000,000.00 | 0.00 |
| Other current assets | 47,805,096.00 | 47,805,096.00 | 0.00 |
| Total current assets | 6,416,210,104.00 | 6,416,201,188.00 | -8,916.00 |
| Non-current assets: | |||
| Investments in debt obligations | 0.00 | 0.00 | 0.00 |
| Available-for-sale financial assets | 128,297,254.00 | 0.00 | -128,297,254.00 |
| Investments in other debt obligations | 0.00 | 0.00 | 0.00 |
| Held-to-maturity investments | 0.00 | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 | 0.00 |
| Long-term equity investments | 143,499,733,485.00 | 143,499,733,485.00 | 0.00 |
| Investments in other equity instruments | 0.00 | 128,297,254.00 | 128,297,254.00 |
| Other non-current financial assets | 0.00 | 0.00 | 0.00 |
| Investment property | 290,253,475.00 | 290,253,475.00 | 0.00 |
| Fixed assets | 969,371,352.00 | 969,371,352.00 | 0.00 |
| Construction in progress | 251,314,313.00 | 251,314,313.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 | 0.00 |
| Right-of-use assets | 0.00 | 0.00 | 0.00 |
| Intangible assets | 514,186,496.00 | 514,186,496.00 | 0.00 |
| R&D expense | 0.00 | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 | 0.00 |
| Long-term prepaid expense | 99,701,797.00 | 99,701,797.00 | 0.00 |
| Deferred income tax assets | 290,794,548.00 | 290,794,548.00 | 0.00 |
| Other non-current assets | 284,243,667.00 | 284,243,667.00 | 0.00 |
| Total non-current assets | 146,327,896,387.00 | 146,327,896,387.00 | 0.00 |
| Total assets | 152,744,106,491.00 | 152,744,097,575.00 | -8,916.00 |
| Current liabilities: | |||
| Short-term borrowings | 1,000,000,000.00 | 1,000,000,000.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 | 0.00 |
| Accounts payable | 35,322,286.00 | 35,322,286.00 | 0.00 |
| Advances from customers | 1,577,035,515.00 | 1,577,035,515.00 | 0.00 |
| Contract liabilities | 0.00 | 0.00 | 0.00 |
| Payroll payable | 201,139,261.00 | 201,139,261.00 | 0.00 |
| Taxes payable | 250,558,556.00 | 250,558,556.00 | 0.00 |
| Other payables | 8,209,736,090.00 | 8,209,736,090.00 | 0.00 |
| Including: Interest payable | 330,964,989.00 | 330,964,989.00 | 0.00 |
| Dividends payable | 6,451,171.00 | 6,451,171.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 | 0.00 |
| Current portion of non-current liabilities | 2,590,000,000.00 | 2,590,000,000.00 | 0.00 |
| Other current liabilities | 0.00 | 0.00 | 0.00 |
| Total current liabilities | 13,863,791,708.00 | 13,863,791,708.00 | 0.00 |
| Non-current liabilities: | |||
| Long-term borrowings | 26,520,000,000.00 | 26,520,000,000.00 | 0.00 |
| Bonds payable | 9,976,533,425.00 | 9,976,533,425.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Lease liabilities | 0.00 | 0.00 | 0.00 |
| Long-term payables | 0.00 | 0.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 | 0.00 |
| Deferred income | 5,523,949,841.00 | 5,523,949,841.00 | 0.00 |
| Deferred income tax liabilities | 0.00 | 0.00 | 0.00 |
| Other non-current liabilities | 20,954,104,125.00 | 20,954,104,125.00 | 0.00 |
| Total non-current liabilities | 62,974,587,391.00 | 62,974,587,391.00 | 0.00 |
| Total liabilities | 76,838,379,099.00 | 76,838,379,099.00 | 0.00 |
| Owners’ equity: | |||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 | 0.00 |
| Other equity instruments | 0.00 | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 | 0.00 |
| Capital reserves | 37,590,966,191.00 | 37,590,966,191.00 | 0.00 |
| Less: Treasury stock | 0.00 | 0.00 | 0.00 |
| Other comprehensive income | -28,507,585.00 | -284,608,843.00 | -256,101,258.00 |
| Specific reserve | 0.00 | 0.00 | 0.00 |
| Surplus reserves | 1,152,626,310.00 | 1,152,625,429.00 | -881.00 |
| Retained earnings | 2,392,243,713.00 | 2,648,336,936.00 | 256,093,223.00 |
| Total owners’ equity | 75,905,727,392.00 | 75,905,718,476.00 | -8,916.00 |
| Total liabilities and owners’ equity | 152,744,106,491.00 | 152,744,097,575.00 | -8,916.00 |
Note for adjustment:
The Company starts to implement the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets, the AccountingStandards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37 –Presentation of Financial Instruments which are revised in 2017 since 1 January 2019 and adjust the financial statements of the firstexecution year as required by standards.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any NewStandards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
35. Others
Naught
VI. Taxation
1. Main Taxes and Tax Rate
| Category of taxes | Tax basis | Tax rate |
| VAT | Output VAT is calculated on the income from product sales, taxable labor services and provision of taxable services, based on tax laws. The remaining balance of output VAT, after subtracting the deductible input VAT of the period, is VAT payable. | 6%，9%，10%，11%，13%，16%，17% |
| Urban maintenance and construction tax | Based on business tax and VAT paid and the VAT tax free for the Period | 7%，5% |
| Enterprise income tax | Based on taxable income | 15%-25% |
| Education surcharge and local education surcharge | Based on business tax and VAT paid and the VAT tax free for the Period | 3%，2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Name | Income tax rate |
| BOE Technology Group Co., Ltd. | 15% |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 15% |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 15% |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 15% |
| Beijing BOE Display Technology Co., Ltd. | 15% |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 15% |
| Erdos Yuansheng Optoelectronics Co., Ltd. | 15% |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 15% |
| Hefei BOE Display Technology Co., Ltd. | 15% |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 15% |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 15% |
| BOE (Hebei) Mobile Display Technology Co., Ltd. | 15% |
| Beijing BOE Special Display Technology Co., Ltd. | 15% |
| Beijing BOE Energy Technology Co., Ltd. | 15% |
| Beijing BOE Multimedia Technology Co., Ltd. | 15% |
| BOE Optical Science and Technology Co., Ltd. | 15% |
| Beijing BOE Tea Valley Electronic Co., Ltd. | 15% |
| Hefei BOE Display Light Source Co., Ltd. | 15% |
| Chongqing BOE Display Lighting Co., Ltd. | 15% |
| Beijing BOE Semi-conductor Co., Ltd. | 15% |
| Hefei BOE Semi-conductor Co., Ltd. | 15% |
| Beijing BOE Vacuum Electronics Co., Ltd. | 15% |
| Beijing BOE Vacuum Technology Co., Ltd. | 15% |
| Beijing Asahi Electron Material Co., Ltd. | 15% |
| BOE Intelligent Technology Co., Ltd. | 15% |
2. Tax Preference
| Company | Policy basis | Authority of Approval, Approval Document No. and Valid Period |
| Hefei BOE Optoelectronics Technology Co., Ltd. | According to corresponding provision stipulated in CS [2010] No.100—Notice on Returning the Excess VAT Paid at the End of the Period related to Partial Projects’ Imported Equipment by Ministry of Finance SAT, it’s allowed to return the excess VAT paid at the end of the period related to partial projects’ imported equipment. | On 4 November 2010, Ministry of Finance and SAT jointly issued CS [2010] No.100 Document, it’s allowed to return the excess VAT paid at the end of the period related to partial projects’ imported equipment, and the document was officially implemented from 1 December 2010 on. |
| Beijing BOE Display Technology Co., Ltd. Hefei BOE Optoelectronics Technology Co., Ltd. Hefei Xinsheng Optoelectronics Technology Co., Ltd. | According to CS [2011] No. 107--Notice on Returning the Excess VAT Paid at the End of the Period related to Integrated Circuit Enterprise’s Purchase of Equipment by Ministry of Finance SAT, it’s allowed to return the excess VAT paid at the end of the period by the major integrated circuit enterprise for purchasing the equipment. | On 4 November 2010, Ministry of Finance and SAT jointly issued CS [2011] No.107 Document, it’s allowed to return the excess VAT paid at the end of the period by the major integrated circuit enterprise for purchasing the equipment and the document was officially implemented from 1 November 2011 on. |
| Beijing BOE Display Technology Co., Ltd. Erdos Yuansheng Optoelectronics Co., Ltd. Chongqing BOE Optoelectronics Technology Co., Ltd. | According to CGS [2012] No. 17—Notice on various Policies related to VAT Payment by Installments for the Imported Equipment Involved in the Significant New FPD Project by Ministry of Finance General Administration of Customs, the significant new FPD project enterprises were allowed to pay corresponding new key imported equipment VAT by installments. | On 4 November 2010, Ministry of Finance and General Administration of Customs jointly issued CS [2012] No.17 Document, the significant new FPD project enterprises were allowed to pay corresponding new key imported equipment VAT by installments, and the document was officially implemented from 1 January 2011 on. |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | According to CGS [2013] No. 63—Notice on the Policy of Tax Payment by Installments granted to the 3rd Batch of New FPD Project by Ministry of Finance General Administration of Customs, the significant new FPD project enterprises were allowed to pay corresponding new key imported equipment VAT by | In September 2013, Ministry of Finance and General Administration of Customs jointly issued CS [2013] No.63 Document, the significant new FPD project enterprises were allowed to pay corresponding new key imported equipment VAT by installments, and the document was officially implemented |
| installments. | from March 2013 on. | |
| Hefei BOE Display Technology Co., Ltd. Fuzhou BOE Optoelectronics Technology Co., Ltd. Chengdu BOE Optoelectronics Technology Co., Ltd. | In June 2016, Ministry of Finance issued [2016] No.30 Document. According to the document, in terms of the new FPD project and new key equipment imported between 1 January 2015 and 31 December 2018. Import VAT could be paid by installments within 6 years (72 consecutive months) after the first device was imported. | In 2016, Ministry of Finance, General Administration of Customs and SAT jointly issued CS [2016] No.30 Notice on various Policies related to VAT Payment by Installments for the Imported Equipment Involved in the New FPD Project. According to the document, in terms of the new FPD project and new key equipment imported between 1 January 2015 and 31 December 2018. Import VAT could be paid by installments within 6 years (72 consecutive months) after the first device was imported. |
3. Others
NaughtVII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Monetary Capital
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 528,768.00 | 537,805.00 |
| Bank deposits | 40,202,349,838.00 | 43,340,146,382.00 |
| Other monetary capital | 6,988,792,091.00 | 8,140,855,524.00 |
| Total | 47,191,670,697.00 | 51,481,539,711.00 |
| Of which: the total amount deposited overseas | 4,013,274,534.00 | 5,012,219,357.00 |
Other notesIncluding: Total overseas deposits were equivalent to RMB4,013,274,534.As at 30 June 2019, other monetary funds were pledged by the Group amounting to USD154,000,000 (2018: USD305,000,000) forshort-term loans, and RMB1,353,140,291 (2018: RMB142,547,192 and USD18,500,000) were pledged for long-term loans. The restof other restricted monetary funds amount to RMB4,536,493,045, and they are mainly the margin deposits for security deposited inthe bank.
2. Trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financial assets at fair value through profit or loss | 3,932,990,942.00 | 5,534,413,566.00 |
| Of which: | ||
| Financial assets designated to be measured at fair value and changes thereof recorded into the current profit or loss | 0.00 | 0.00 |
| Of which: | ||
| total | 3,932,990,942.00 | 5,534,413,566.00 |
Other notes:
Naught
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 139,552,718.00 | 655,081,577.00 |
| Commercial acceptance bill | 1,371,417.00 | 1,700,000.00 |
| Total | 140,924,135.00 | 656,781,577.00 |
If the bad debt provision for notes receivable was withdrawn in accordance with the general model of expected credit losses,information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
| Category | Beginning balance | Increase/decrease | Ending balance | ||
| Withdrawn | Reversed or collected | Verified | |||
| Naught | |||||
Of which, bad debt provision collected or reversed with significant amount:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount |
| Bank acceptance bill | 0.00 |
| Commercial acceptance bill | 0.00 |
| Total | 0.00 |
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Bank acceptance bill | 85,698,911.00 | 47,900,262.00 |
| Commercial acceptance bill | 0.00 | 1,371,417.00 |
| Total | 85,698,911.00 | 49,271,679.00 |
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contractor Agreement
Unit: RMB
| Item | Amount of the notes transferred to accounts receivable at the period-end |
| Commercial acceptance bill | 0.00 |
| Total | 0.00 |
Other notesNaught
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
| Item | Amount |
| Naught |
Of which, verification of significant notes receivable:
Unit: RMB
| Name of the entity | Nature | Amount | Reason | Procedure | Whether occurred because of related-party transactions |
| Naught |
Notes of the verification of notes receivable:
Naught
4. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with single bad debt provision accrued | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Of which: | ||||||||||
| N/A | ||||||||||
| Accounts receivable with bad debt provision withdrawn according to groups | 19,607,717,635.00 | 100.00% | 340,044,585.00 | 2.00% | 19,267,673,050.00 | 20,200,002,348.00 | 100.00% | 325,510,229.00 | 2.00% | 19,874,492,119.00 |
| Of which: | ||||||||||
| N/A | ||||||||||
| Total | 19,607,717,635.00 | 100.00% | 340,044,585.00 | 2.00% | 19,267,673,050.00 | 20,200,002,348.00 | 100.00% | 325,510,229.00 | 2.00% | 19,874,492,119.00 |
Single bad debt provision accrued:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
| N/A | ||||
| Total | -- | -- | ||
Bad debt provision withdrawn according to groups:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Credit risks characteristics | 19,607,717,635.00 | 340,044,585.00 | 2.00% |
| Total | 19,607,717,635.00 | 340,044,585.00 | -- |
Notes of the basis for recognizing the group:
NaughtIf the bad debt provision for accounts receivable was withdrawn in accordance with the general model of expected credit losses,information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
√Applicable □ Not applicable
Withdrawal of bad debt provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses in the next 12 months | Expected credit losses for the whole existence period (no credit impairment) | Expected credit losses for the whole existence period (with credit impairment) | ||
| Balance on 1 January 2019 | 0.00 | 5,103,730.00 | 320,406,499.00 | 325,510,229.00 |
| Balance of 1 January 2019 in the Reporting Period | —— | —— | —— | —— |
| --Transferred to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Transferred to the Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawn in the Current Period | 0.00 | 1,366,584.00 | 13,183,163.00 | 14,549,747.00 |
| Reversed in the Current Period | 0.00 | 636,890.00 | 0.00 | 636,890.00 |
| write-off in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Verified in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Other changes | 0.00 | -3,504.00 | 625,003.00 | 621,499.00 |
| Balance on 30 June 2019 | 0.00 | 5,829,920.00 | 334,214,665.00 | 340,044,585.00 |
Disclosed by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 19,135,881,070.00 |
| 1 to 2 years | 124,570,022.00 |
| 2 to 3 years | 211,440,420.00 |
| over 3 years | 135,826,123.00 |
| Total | 19,607,717,635.00 |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodThe bad debt provision withdrawn in the Current Period was RMB14,549,747.00, and the bad debt provision recovered or reversed inthe Reporting Period was RMB636,890.00.
(3) Accounts Receivable with Actual Verification for the Reporting Period
Not applicable
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
The total amount of the accounts receivable of the top 5 of the Group at the period-end was of RMB10,194,327,444.00 that covered
51.99% of the total amount of the ending balance of the accounts receivable at the period-end, which no need to withdraw the baddebt provision after the assessment.
(5) Derecogniziton of Accounts Receivable due to the Transfer of Financial AssetsNot applicable
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts ReceivableNot applicable
5. Prepayments
(1) List by Aging Analysis
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 574,080,021.00 | 85.63% | 721,657,321.00 | 93.64% |
| 1 to 2 years | 85,713,054.00 | 12.79% | 46,363,026.00 | 6.02% |
| 2 to 3 years | 9,620,182.00 | 1.44% | 2,035,569.00 | 0.26% |
| Over 3 years | 977,255.00 | 0.15% | 577,532.00 | 0.07% |
| Total | 670,390,512.00 | -- | 770,633,448.00 | -- |
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The Group has no such over-1-year-old prepayments with a substantial amount that were not settled in time.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
The total amount of the prepayment of the top 5 of the Group at the period-end was of RMB438,563,518.00 that covered 65.42% ofthe total amount of the ending balance of the prepayment at the period-end.Other notes: naught
6. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | 173,298,920.00 | 140,597,317.00 |
| Dividends receivable | 4,367,120.00 | 3,711,768.00 |
| Other receivables | 484,954,863.00 | 2,308,980,623.00 |
| Total | 662,620,903.00 | 2,453,289,708.00 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed time deposit | 173,298,920.00 | 140,597,317.00 |
| Entrusted loans | 0.00 | 0.00 |
| Bond investment | 0.00 | 0.00 |
| Total | 173,298,920.00 | 140,597,317.00 |
2) Significant Overdue Interest
Unit: RMB
| Entity | Ending balance | Overdue time | Overdue reason | Whether occurred impairment and the judgment basis |
| Naught |
Other notes:
Naught
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable
Unit: RMB
| Item (or investees) | Ending balance | Beginning balance |
| Bank of Chongqing | 3,896,529.00 | 0.00 |
| Beijing Electronics Zone Co., Ltd. | 0.00 | 3,711,768.00 |
| TPV Technology | 470,591.00 | 0.00 |
| Total | 4,367,120.00 | 3,711,768.00 |
2) Significant Dividends Receivable Aged over 1 Year
Unit: RMB
| Item (or investees) | Ending balance | Aging | Reason | Whether occurred impairment and the judgment basis |
| Naught |
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
Other notes: naught
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Accounts receivable for equity transfer | 200,000,000.00 | 200,000,000.00 |
| Cash deposit and cash pledge | 124,833,259.00 | 148,893,918.00 |
| VAT refunds | 11,089,687.00 | 415,687,566.00 |
| Wealth management receivables | 0.00 | 1,408,094,816.00 |
| Other | 156,574,278.00 | 137,530,098.00 |
| Total | 492,497,224.00 | 2,310,206,398.00 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses in the next 12 months | Expected credit losses for the whole existence period (no credit impairment) | Expected credit losses for the whole existence period (with credit impairment) | ||
| Balance on 1 January 2019 | 0.00 | 1,114,609.00 | 111,166.00 | 1,225,775.00 |
| Balance of 1 January 2019 in the Reporting Period | —— | —— | —— | —— |
| --Transferred to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Transferred to the Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawn in the Current Period | 0.00 | 545,697.00 | 5,836,303.00 | 6,382,000.00 |
| Reversed in the Current Period | 0.00 | 64,412.00 | 0.00 | 64,412.00 |
| write-off in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Verified in the Current Period | 0.00 | 1,100.00 | 0.00 | 1,100.00 |
| Other changes | 0.00 | 98.00 | 0.00 | 98.00 |
| Balance on 30 June 2019 | 0.00 | 1,594,892.00 | 5,947,469.00 | 7,542,361.00 |
Changes in carrying amount of provision for loss with significant changes in amount in the Reporting Period
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 211,296,265.00 |
| 1 to 2 years | 20,108,014.00 |
| 2 to 3 years | 12,447,806.00 |
| Over 3 years | 248,645,139.00 |
| Total | 492,497,224.00 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The bad debt provision withdrawn in the Current Period was RMB6,382,000.00, and the bad debt provision recovered or reversed inthe Reporting Period was RMB64,412.00.
4) Other Receivables with Actual Verification in the Reporting Period
Unit: RMB
| Item | Amount verified |
| Customer 1 | 1,100.00 |
Of which, the verification of significant other receivables:
Unit: RMB
| Name of the entity | Nature | Amount verified | Reason for verification | Procedure | Whether occurred because of related-party transactions |
| Naught |
Notes of verification of other receivables:
None
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to ending balance of other receivables% | Ending balance of bad debt provision |
| Customer 1 | Accounts receivable for equity transfer | 200,000,000.00 | Over 5 years | 40.61% | 0.00 |
| Customer 2 | Cash deposit and cash pledge | 39,500,000.00 | 3 to 4 years | 8.02% | 0.00 |
| Customer 3 | Utilities, fees for gas, heat and power, etc. other | 38,565,098.00 | Within 1 year | 7.83% | 0.00 |
| Customer 4 | Rental income, other | 14,063,662.00 | Within 1 year | 2.86% | 0.00 |
| Customer 5 | other | 11,495,000.00 | Over 5 years | 2.33% | 0.00 |
| Total | -- | 303,623,760.00 | -- | 61.65% |
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
| Name of the entity | Project of government subsidies | Ending balance | Aging at period-end | Estimated recovering time, amount and basis |
| Naught |
7) Derecogniziton of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other ReceivablesNaughtOther notes:
Naught
7. Inventories
Has implemented the new standards governing revenue or not
□ Yes √ No
(1) Category of Inventories
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves | Carrying value | Carrying amount | Falling price reserves | Carrying value | |
| Raw materials | 4,778,202,798.00 | 253,152,715.00 | 4,525,050,083.00 | 4,350,466,710.00 | 293,435,033.00 | 4,057,031,677.00 |
| Goods in process | 1,523,923,584.00 | 146,601,394.00 | 1,377,322,190.00 | 1,442,498,808.00 | 150,867,947.00 | 1,291,630,861.00 |
| Inventory goods | 9,638,395,244.00 | 1,309,861,204.00 | 8,328,534,040.00 | 7,770,574,684.00 | 1,244,503,744.00 | 6,526,070,940.00 |
| Turnover materials | 121,655,602.00 | 72,456.00 | 121,583,146.00 | 113,493,354.00 | 2,828,660.00 | 110,664,694.00 |
| Consumptive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Finished but unsettled assets generated from, construction contract | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 16,062,177,228.00 | 1,709,687,769.00 | 14,352,489,459.00 | 13,677,033,556.00 | 1,691,635,384.00 | 11,985,398,172.00 |
Whether the Company needs satisfy relevant disclosure requirements stated in SZSE Industrial Information Disclosure Guidance No. 4-Listed Company Specialized in Seed Industry or PlantingBusiness or not?No
(2) Falling Price Reserves of Inventories
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Withdrawal | Other | Reverse or write-off | Other | |||
| Raw materials | 293,435,033.00 | 90,137,452.00 | 0.00 | 130,419,770.00 | 0.00 | 253,152,715.00 |
| Goods in process | 150,867,947.00 | 41,179,527.00 | 0.00 | 45,446,080.00 | 0.00 | 146,601,394.00 |
| Inventory goods | 1,244,503,744.00 | 863,560,222.00 | 0.00 | 798,202,762.00 | 0.00 | 1,309,861,204.00 |
| Turnover materials | 2,828,660.00 | 0.00 | 0.00 | 2,756,204.00 | 0.00 | 72,456.00 |
| Consumptive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Finished but unsettled assets generated from, construction contract | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 1,691,635,384.00 | 994,877,201.00 | 0.00 | 976,824,816.00 | 0.00 | 1,709,687,769.00 |
Naught
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Not applicable
(4) Completed but Unsettled Assets Generated from Construction Contacts at the Period-end
Unit: RMB
| Item | Amount |
| Accumulated incurred losses | 0.00 |
| Accumulated recognized gross margin | 0.00 |
| Less: estimated losses | 0.00 |
| Amount with settlement | 0.00 |
| Completed but unsettled assets resulting from construction contracts at the end of the period | 0.00 |
Other notes: Naught
8. Current Portion of Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current portion of investments in debt obligations | 0.00 | 0.00 |
| Current portion of other investments in debt obligations | 0.00 | 0.00 |
| Total | 0.00 | 0.00 |
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
| Naught | ||||||||
| Total | —— | —— | —— | —— | —— | —— | ||
Other notes:Naught
9. Other Current Assets
Has implemented the new standards governing revenue or not
□ Yes √ Not
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT retained | 5,843,671,073.00 | 4,841,165,133.00 |
| Input tax to be verified and deducted | 2,102,601,313.00 | 1,773,794,503.00 |
| Advance payment of income tax | 157,205,300.00 | 132,824,503.00 |
| Other | 207,534,207.00 | 180,876,074.00 |
| Total | 8,311,011,893.00 | 6,928,660,213.00 |
Other notes: Naught
10. Investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Impairment provision | Carrying value | Carrying amount | Impairment provision | Carrying value | |
| Convertible bonds of modern | 17,960,946.00 | 17,960,946.00 | 0.00 | 17,960,946.00 | 17,960,946.00 | 0.00 |
| LCD | ||||||
| Total | 17,960,946.00 | 17,960,946.00 | 0.00 | 17,960,946.00 | 17,960,946.00 | 0.00 |
Significant investments in debt obligations
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Par value | Coupon rate | Actual interest rate | Maturity date | |
| Naught | ||||||||
Withdrawal of impairment provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses in the next 12 months | Expected credit losses for the whole existence period (no credit impairment) | Expected credit losses for the whole existence period (with credit impairment) | ||
| Balance on 1 January 2019 | 0.00 | 0.00 | 17,960,946.00 | 17,960,946.00 |
| Balance of 1 January 2019 in the Reporting Period | —— | —— | —— | —— |
| --Transferred to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Transferred to the Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| --Reversed to the Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawn in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Reversed in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| write-off in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Verified in the Current Period | 0.00 | 0.00 | 0.00 | 0.00 |
| Other changes | 0.00 | 0.00 | 0.00 | 0.00 |
| Balance on 30 June 2019 | 0.00 | 0.00 | 17,960,946.00 | 17,960,946.00 |
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
Naught
11. Long-term Equity Investment
Unit: RMB
| Investees | Beginning balance | Increase/decrease | Ending balance | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision Component Co., Ltd. | 538,489.00 | 0.00 | 0.00 | -534,864.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,625.00 | 0.00 |
| Beijing Nittan Electronics Co., Ltd. | 61,733,085.00 | 0.00 | 0.00 | 2,152,314.00 | 0.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 60,885,399.00 | 0.00 |
| Beijing Yingfei Hailin Venture Capital Management Co., Ltd. | 435,828.00 | 0.00 | 0.00 | -435,828.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Ordos BOE Energy Investment Co., Ltd. (BOE Energy Investment) | 370,321,340.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 370,321,340.00 | 537,136,972.00 |
| Beijing Fly Hailin Investment Center | 82,336,933.00 | 0.00 | 0.00 | -332,938.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 82,003,995.00 | 0.00 |
| TPV Display Technology (China) Co., Ltd. | 23,001,359.00 | 0.00 | 0.00 | -2,258,314.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 20,743,045.00 | 0.00 |
| Beijing Xindong Neng Investment Fund (limited partnership) | 1,455,174,877.00 | 0.00 | 37,081,499.00 | -7,203,989.00 | 175,359,777.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,586,249,166.00 | 0.00 |
| Beijing Xindong Neng Investment Management Co., Ltd. | 5,188,862.00 | 0.00 | 0.00 | 987,022.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6,175,884.00 | 0.00 |
| Shenzhen Yunyinggu Technology Co., Ltd. | 15,481,506.00 | 0.00 | 0.00 | -8,660,243.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6,821,263.00 | 0.00 |
| Beijing XLOONG Technology Co., Ltd. | 22,609,211.00 | 0.00 | 0.00 | -232,848.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 22,376,363.00 | 0.00 |
| NewOnTechnology Co.Ltd. | 3,185,494.00 | 0.00 | 0.00 | 0.00 | 12,723.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,198,217.00 | 0.00 |
| CnogaMedical Ltd. | 343,160,000.00 | 0.00 | 0.00 | 0.00 | 575,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 343,735,000.00 | 0.00 |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | 2,999,902.00 | 0.00 | 0.00 | -33,979.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,965,923.00 | 0.00 |
| Beijing Zhonglianhe Ultra HD Collaborative Technology Center Co., Ltd. | 3,000,000.00 | 0.00 | 0.00 | -18,294.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,981,706.00 | 0.00 |
| Beijing Innovation | 0.00 | 100,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 100,000,000.00 | 0.00 |
| Industry Investment Co., Ltd. | |||||||||||
| Beijing Electronic Control Investment Co., Ltd. | 0.00 | 17,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 17,000,000.00 | 0.00 |
| Subtotal | 2,389,166,886.00 | 117,000,000.00 | 37,081,499.00 | -16,571,961.00 | 175,947,500.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 2,625,460,926.00 | 537,136,972.00 |
| Total | 2,389,166,886.00 | 117,000,000.00 | 37,081,499.00 | -16,571,961.00 | 175,947,500.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 2,625,460,926.00 | 537,136,972.00 |
Other notesNone
12. Other Equity Instrument Investment
Unit: RMB
| Item | Ending balance | Beginning balance |
| TPV Technology | 11,865,989.00 | 25,613,279.00 |
| Electronic Zone | 108,956,662.00 | 83,995,943.00 |
| Beijing Digital TV National Engineering Laboratory Co., Ltd. | 6,250,000.00 | 6,250,000.00 |
| Bank of Chongqing | 102,206,616.00 | 98,705,065.00 |
| China Securities | 58,219,470.00 | 44,412,577.00 |
| New Century Medical Treatment | 75,472,547.00 | 125,909,253.00 |
| Teralane Semiconductor Inc | 11,868,000.00 | 11,868,000.00 |
| Zhejiang BOE Display Technology Co., Ltd. | 321,256.00 | 321,256.00 |
| Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. | 248,776.00 | 248,776.00 |
| Danhua Capital, L. P. | 25,780,125.00 | 25,737,000.00 |
| Danhua Capital II, L.P. | 63,590,975.00 | 63,484,600.00 |
| Kateeva Inc. | 82,118,292.00 | 81,980,924.00 |
| DEPICT INC. | 13,749,400.00 | 13,726,400.00 |
| MOOV INC. | 27,612,607.00 | 27,566,417.00 |
| ZGLUE INC. | 10,312,038.00 | 10,294,788.00 |
| Nanosys INC | 51,560,250.00 | 51,474,000.00 |
| Ceribell INC | 8,937,102.00 | 8,922,152.00 |
| Baebies INC | 30,205,280.00 | 30,154,753.00 |
| Illumina Fund I,L.P. | 14,795,186.00 | 10,490,744.00 |
| Total | 704,070,571.00 | 721,155,927.00 |
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
| Item | Dividend income recognized | Accumulative gains | Accumulative losses | Amount of other compressive income transferred to retained earnings | Reason for assigning to measure at fair value and changes recorded into other comprehensive income | Reason of other comprehensive income transferred to retained earnings |
| TPV Technology | 470,591.00 | 0.00 | 122,792,169.00 | 0.00 | Non-trading equity instrument | Naught |
| Electronic Zone | 1,883,379.00 | 18,796,234.00 | 0.00 | 0.00 | Non-trading equity | Naught |
| instrument | ||||||
| Bank of Chongqing | 3,820,841.00 | 0.00 | 33,197,286.00 | 0.00 | Non-trading equity instrument | Naught |
| China Securities | 0.00 | 0.00 | 11,192,865.00 | 0.00 | Non-trading equity instrument | Naught |
| New Century Medical Treatment | 0.00 | 0.00 | 65,790,317.00 | 0.00 | Non-trading equity instrument | Naught |
| Zhejiang BOE Display Technology Co., Ltd. | 0.00 | 0.00 | 59,638,453.00 | 0.00 | Non-trading equity instrument | Naught |
| Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. | 0.00 | 0.00 | 46,183,150.00 | 0.00 | Non-trading equity instrument | Naught |
| Meta Company | 0.00 | 0.00 | 34,315,949.00 | 0.00 | Non-trading equity instrument | Naught |
| Other units | 0.00 | 0.00 | 180,000.00 | 0.00 | Non-trading equity instrument | Naught |
Other notes: None
13. Other Non-current Financial Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financial assets at fair value through profit or loss | 13,757,311.00 | 12,866,432.00 |
| Total | 13,757,311.00 | 12,866,432.00 |
Other notes:
None
14. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 1,012,158,845.00 | 687,434,677.00 | 0.00 | 1,699,593,522.00 |
| 2.Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Outsourcing | 0.00 | 0.00 | 0.00 | 0.00 |
| (2)Transfer from inventory/fixed assets/construction in progress | 0.00 | 0.00 | 0.00 | 0.00 |
| (3)Enterprise combination increase | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 148,919.00 | 0.00 | 0.00 | 148,919.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 148,919.00 | 0.00 | 0.00 | 148,919.00 |
| 4. Ending balance | 1,012,009,926.00 | 687,434,677.00 | 0.00 | 1,699,444,603.00 |
| II.Accumulative depreciation and accumulative amortization | ||||
| 1. Beginning balance | 288,576,169.00 | 127,149,702.00 | 0.00 | 415,725,871.00 |
| 2. Increased amount of the period | 15,573,246.00 | 6,811,349.00 | 0.00 | 22,384,595.00 |
| (1)Withdrawal or amortization | 15,573,246.00 | 6,811,349.00 | 0.00 | 22,384,595.00 |
| 3. Decreased amount of the period | 140,016.00 | 0.00 | 0.00 | 140,016.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 140,016.00 | 0.00 | 0.00 | 140,016.00 |
| 4. Ending balance | 304,009,399.00 | 133,961,051.00 | 0.00 | 437,970,450.00 |
| III. Depreciation reserves | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 |
| 2.Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. Carrying value |
| 1. Ending carrying value | 708,000,527.00 | 553,473,626.00 | 0.00 | 1,261,474,153.00 |
| 2.Beginning carrying value | 723,582,676.00 | 560,284,975.00 | 0.00 | 1,283,867,651.00 |
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| None |
Other notes：None
15. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 128,481,365,480.00 | 128,157,730,995.00 |
| Disposal of fixed assets | 0.00 | 0.00 |
| Total | 128,481,365,480.00 | 128,157,730,995.00 |
(1) List of Fixed Assets
Unit: RMB
| Item | Houses and buildings | Equipment | Other | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 36,749,694,289.00 | 152,959,161,443.00 | 3,253,525,318.00 | 192,962,381,050.00 |
| 2. Increased amount of the period | 1,302,811,328.00 | 7,612,615,563.00 | 643,066,692.00 | 9,558,493,583.00 |
| (1) Purchase | 1,434,114.00 | 334,604,862.00 | 262,146,699.00 | 598,185,675.00 |
| (2) Transfer from construction in progress | 1,300,645,690.00 | 7,272,362,086.00 | 380,262,302.00 | 8,953,270,078.00 |
| (3) Enterprise combination increase | 0.00 | 0.00 | 0.00 | 0.00 |
| (4) Differences arising from translation of foreign currency-denominated | 731,524.00 | 5,648,615.00 | 657,691.00 | 7,037,830.00 |
| financial statements | ||||
| 3. Decreased amount of the period | 0.00 | 167,721,482.00 | 9,571,717.00 | 177,293,199.00 |
| (1) Disposal or scrap | 0.00 | 97,741,482.00 | 9,571,717.00 | 107,313,199.00 |
| (2) Other decrease | 0.00 | 69,980,000.00 | 0.00 | 69,980,000.00 |
| 4. Ending balance | 38,052,505,617.00 | 160,404,055,524.00 | 3,887,020,293.00 | 202,343,581,434.00 |
| II. Accumulative depreciation | ||||
| 1. Beginning balance | 4,287,202,025.00 | 58,402,866,713.00 | 1,461,718,975.00 | 64,151,787,713.00 |
| 2. Increased amount of the period | 848,570,449.00 | 7,878,017,113.00 | 386,755,104.00 | 9,113,342,666.00 |
| (1) Withdrawal | 848,285,495.00 | 7,873,384,172.00 | 386,566,670.00 | 9,108,236,337.00 |
| (2) Differences arising from translation of foreign currency-denominated financial statements | 284,954.00 | 4,632,941.00 | 188,434.00 | 5,106,329.00 |
| 3. Decreased amount of the period | 0.00 | 48,145,553.00 | 6,094,090.00 | 54,239,643.00 |
| (1) Disposal or scrap | 0.00 | 48,145,553.00 | 6,094,090.00 | 54,239,643.00 |
| 4. Ending balance | 5,135,772,474.00 | 66,232,738,273.00 | 1,842,379,989.00 | 73,210,890,736.00 |
| III. Depreciation reserves | ||||
| 1. Beginning balance | 1,085,094.00 | 644,638,064.00 | 7,139,184.00 | 652,862,342.00 |
| 2. Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 1,398,661.00 | 138,463.00 | 1,537,124.00 |
| (1) Disposal or scrap | 0.00 | 1,398,661.00 | 138,463.00 | 1,537,124.00 |
| 4. Ending balance | 1,085,094.00 | 643,239,403.00 | 7,000,721.00 | 651,325,218.00 |
| IV. Carrying value | ||||
| 1. Ending carrying value | 32,915,648,049.00 | 93,528,077,848.00 | 2,037,639,583.00 | 128,481,365,480.00 |
| 2. Beginning carrying value | 32,461,407,170.00 | 93,911,656,666.00 | 1,784,667,159.00 | 128,157,730,995.00 |
(2) Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Provisions for impairment | Carrying value | Note |
| None |
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Provisions for impairment | Carrying value |
| Workshops and buildings | 11,291,665.00 | 4,483,849.00 | 0.00 | 6,807,816.00 |
| Machinery equipment | 111,358,145.00 | 7,816,271.00 | 0.00 | 103,541,874.00 |
(4) Fixed Assets Leased out by Operating Lease
Unit: RMB
| Item | Ending carrying value |
| Fixed assets leased out by operating lease | 18,135,184.00 |
(5) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| Fixed assets with certificate of title uncompleted | 15,840,670,803.00 | In process |
Other notes:None
(6) Disposal of Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| None | 0.00 | 0.00 |
| Total | 0.00 | 0.00 |
Other notes:None
16. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
| Construction in progress | 71,479,480,514.00 | 56,423,354,887.00 |
| Engineering materials | 0.00 | 0.00 |
| Total | 71,479,480,514.00 | 56,423,354,887.00 |
(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| The 6th generation AMOLED project | 30,049,388,048.00 | 0.00 | 30,049,388,048.00 | 23,065,639,272.00 | 0.00 | 23,065,639,272.00 |
| The 10.5th generation TFT-LCD project | 16,478,266,210.00 | 0.00 | 16,478,266,210.00 | 5,226,487,285.00 | 0.00 | 5,226,487,285.00 |
| The 6th generation LTPS / AMOLED project | 16,163,399,649.00 | 0.00 | 16,163,399,649.00 | 15,759,483,392.00 | 0.00 | 15,759,483,392.00 |
| Other | 8,788,426,607.00 | 0.00 | 8,788,426,607.00 | 12,371,744,938.00 | 0.00 | 12,371,744,938.00 |
| Total | 71,479,480,514.00 | 0.00 | 71,479,480,514.00 | 56,423,354,887.00 | 0.00 | 56,423,354,887.00 |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginning balance | Increased amount | Transferred in fixed assets | Other decreased amount | Ending balance | Proportion of accumulated investment in constructions to budget | Job schedule | Accumulated amount of interest capitalization | Of which: Amount of capitalized interests for the Reporting Period | Capitalization rate of interests for the Reporting | Capital resources |
| Period | ||||||||||||
| The 6th generation LTPS / AMOLED project | 44,800,000,000.00 | 15,759,483,392.00 | 2,055,945,099.00 | 1,654,225,615.00 | 2,186,522.00 | 16,159,016,354.00 | 78.65% | 78.65% | 591,016,437.00 | 208,042,341.00 | 2.49% | Self-raising and borrowing |
| The 6th generation AMOLED project | 44,500,000,000.00 | 23,065,639,272.00 | 7,124,394,239.00 | 140,645,463.00 | 0.00 | 30,049,388,048.00 | 69.71% | 69.71% | 296,625,755.00 | 240,348,884.00 | 4.49% | Self-raising and borrowing |
| The 10.5th generation TFT-LCD project | 44,000,000,000.00 | 5,226,487,285.00 | 11,251,778,925.00 | 0.00 | 0.00 | 16,478,266,210.00 | 38.08% | 38.08% | 1,195,055.00 | 1,195,055.00 | 2.64% | Self-raising and borrowing |
| Total | 133,300,000,000.00 | 44,051,609,949.00 | 20,432,118,263.00 | 1,794,871,078.00 | 2,186,522.00 | 62,686,670,612.00 | -- | -- | 888,837,247.00 | 449,586,280.00 | 0.00% | -- |
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
| Item | Withdrawal amount | Reason for withdrawal |
| None |
Other notesNone
(4) Engineering Materials
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| None | ||||||
| Total | 0.00 | 0.00 | ||||
Other notes: None
17. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent right | Non-patent technologies | Patent right and proprietary technology | Computer software | Other | Total |
| I. Original carrying value | |||||||
| 1. Beginning balance | 2,685,702,901.00 | 0.00 | 0.00 | 3,290,629,308.00 | 902,371,299.00 | 1,226,628,617.00 | 8,105,332,125.00 |
| 2. Increased amount of the period | 822,611,959.00 | 0.00 | 0.00 | 343,111,176.00 | 37,753,808.00 | 41,337,600.00 | 1,244,814,543.00 |
| (1) Purchase | 122,688,995.00 | 0.00 | 0.00 | 343,111,176.00 | 12,742,884.00 | 41,337,600.00 | 519,880,655.00 |
| (2) Internal R&D | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (3) Business combination increase | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (4) Transfer from construction in progress | 699,922,964.00 | 0.00 | 0.00 | 0.00 | 25,010,924.00 | 0.00 | 724,933,888.00 |
| 3. Decreased amount of the period | 17,664.00 | 0.00 | 0.00 | 0.00 | 508,547.00 | 0.00 | 526,211.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other decrease | 17,664.00 | 0.00 | 0.00 | 0.00 | 508,547.00 | 0.00 | 526,211.00 |
| 4. Ending balance | 3,508,297,196.00 | 0.00 | 0.00 | 3,633,740,484.00 | 939,616,560.00 | 1,267,966,217.00 | 9,349,620,457.00 |
| II. Accumulated amortization | |||||||
| 1. Beginning balance | 228,473,302.00 | 0.00 | 0.00 | 1,285,634,672.00 | 535,554,303.00 | 117,990,454.00 | 2,167,652,731.00 |
| 2. Increased amount of the period | 37,719,317.00 | 0.00 | 0.00 | 156,689,115.00 | 52,844,790.00 | 31,805,695.00 | 279,058,917.00 |
| (1) Withdrawal | 37,719,317.00 | 0.00 | 0.00 | 156,689,115.00 | 52,844,790.00 | 31,805,695.00 | 279,058,917.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 266,192,619.00 | 0.00 | 0.00 | 1,442,323,787.00 | 588,399,093.00 | 149,796,149.00 | 2,446,711,648.00 |
| III. Depreciation reserves | |||||||
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. Carrying value | |||||||
| 1. Ending carrying value | 3,242,104,577.00 | 0.00 | 0.00 | 2,191,416,697.00 | 351,217,467.00 | 1,118,170,068.00 | 6,902,908,809.00 |
| 2. Beginning carrying value | 2,457,229,599.00 | 0.00 | 0.00 | 2,004,994,636.00 | 366,816,996.00 | 1,108,638,163.00 | 5,937,679,394.00 |
The proportion of intangible assets generated from the internal R&D of the Company to the balance of intangible assets at the period-end: 0.00%
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| None |
Other notes: None
18. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance | ||
| Beijing Yinghe Century Co., Ltd. | 42,940,434.00 | 0.00 | 0.00 | 0.00 | 0.00 | 42,940,434.00 |
| Gaochuang (Suzhou) Electronics Co., Ltd. | 8,562,464.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,562,464.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4,423,876.00 |
| BOE Healthcare Investment & Management Co., Ltd. | 146,460,790.00 | 0.00 | 0.00 | 0.00 | 0.00 | 146,460,790.00 |
| SES Imagotag SA Co. Ltd. | 706,406,821.00 | 0.00 | 0.00 | 0.00 | 0.00 | 706,406,821.00 |
| Total | 908,794,385.00 | 0.00 | 0.00 | 0.00 | 0.00 | 908,794,385.00 |
(2) Provisions for Impairment of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance | ||
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4,423,876.00 |
| Total | 4,423,876.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4,423,876.00 |
Information of assets group or the combination of assets group where goodwill is
| Name of assets group | Composition of assets group or the combination of assets group | Determination method of assets group or the combination of assets group | Carrying amount of assets group or the combination of assets group | Combination of assets group changed or not |
| Beijing Yinghe Century Co., Ltd. | Assets of Beijing Yinghe Century Co., Ltd. | Cash inflow generated independent of other assets or assets group | 852,998,117.00 | No |
| Gaochuang (Suzhou) Electronics Co., Ltd. | Assets of Gaochuang (Suzhou) Electronics Co., Ltd. | Cash inflow generated independent of other assets or assets group | 1,355,364,080.00 | No |
| Beijing BOE Optoelectronics | Assets of Beijing BOE | Cash inflow generated | 4,691,384,329.00 | No |
| Technology Co., Ltd. | Optoelectronics Technology Co., Ltd. | independent of other assets or assets group |
| BOE Healthcare Investment & Management Co., Ltd. | Assets of OASIS International Hospital | Cash inflow generated independent of other assets or assets group | 246,603,069.00 | No |
| SES Imagotag SA Co.Ltd. | Assets of SES Imagotag SA Co.Ltd. and Chongqing BOE Intelligent Electronic System Co., Ltd. | Cash inflow generated independent of other assets or assets group | 3,024,707,813.00 | No |
Notes of the testing process of goodwill impairment, key parameters(growth rate of predictive period in estimating he present valueof future cash flow, grow rate of stable period, profit rate, discount rate, predictive period, etc.) and the recognition method ofgoodwill impairment losses:
The Company estimated the present value of future cash flow as calculating the recoverable amount of Yinghe Century, SuzhouK-Tronics, Health Investment and SES based on the the most recent five-year financial budgets and a pre-tax discount rate of 8.44%,
6.62%, 6.80% and 23.01% respectively. The cash flows over five-year financial budgets remain stable.Notes of the recognition method of goodwill impairment losses, refer to V-31.The influence of testing goodwill: NoneOther notes: None
19. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount of the period | Other decreased amount | Ending balance |
| Cost of construction and use of public facilities | 98,072,789.00 | 0.00 | 7,685,111.00 | 0.00 | 90,387,678.00 |
| Cost of operating lease assets improvement | 20,351,453.00 | 0.00 | 5,926,275.00 | 0.00 | 14,425,178.00 |
| Other | 242,216,611.00 | 110,226,217.00 | 48,275,285.00 | 1,495,150.00 | 302,672,393.00 |
| Total | 360,640,853.00 | 110,226,217.00 | 61,886,671.00 | 1,495,150.00 | 407,485,249.00 |
Other notes: None
20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary | Deferred income tax | Deductible temporary | Deferred income | |
| difference | assets | difference | tax assets | |
| Provision for impairment of assets | 386,571,126.00 | 68,342,060.00 | 391,727,136.00 | 69,662,802.00 |
| Internal unrealized profit | 0.00 | 0.00 | 0.00 | 0.00 |
| Deductable losses | 274,481,892.00 | 82,199,600.00 | 230,110,593.00 | 67,447,589.00 |
| Differences of depreciation and amortization | 124,591,284.00 | 22,403,658.00 | 125,811,735.00 | 22,699,045.00 |
| Evaluation increment of investment in subsidiaries with immovable property | 139,333,887.00 | 34,833,472.00 | 142,110,808.00 | 35,527,702.00 |
| Advances from customers | 0.00 | 0.00 | 290,000,000.00 | 43,500,000.00 |
| Other | 219,093,132.00 | 42,448,316.00 | 219,548,492.00 | 42,572,983.00 |
| Total | 1,144,071,321.00 | 250,227,106.00 | 1,399,308,764.00 | 281,410,121.00 |
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Asset evaluation increment of business combination not under the same control | 2,687,151,909.00 | 806,792,354.00 | 2,777,250,385.00 | 835,036,150.00 |
| Changes in fair value of other creditors’ investment | 0.00 | 0.00 | 0.00 | 0.00 |
| Changes in fair value of other equity instrument investment | 46,103,720.00 | 6,915,558.00 | 34,890,291.00 | 5,233,544.00 |
| Depreciation of fixed assets | 3,851,265,296.00 | 608,406,638.00 | 3,248,856,623.00 | 517,769,740.00 |
| Long-term equity investment | 360,863,027.00 | 54,129,454.00 | 360,863,027.00 | 54,129,454.00 |
| Bond interest | 71,525,943.00 | 10,728,891.00 | 71,525,943.00 | 10,728,891.00 |
| Other | 223,111,302.00 | 22,708,984.00 | 241,446,716.00 | 25,512,265.00 |
| Total | 7,240,021,197.00 | 1,509,681,879.00 | 6,734,832,985.00 | 1,448,410,044.00 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
| Item | Mutual set-off amount of deferred income tax assets and liabilities at | Ending balance of deferred income tax assets or liabilities after | Mutual set-off amount of deferred income tax assets and liabilities at | Beginning balance of deferred income tax assets or liabilities after |
| the period-end | off-set | the period-begin | off-set | |
| Deferred income tax assets | 30,718,513.00 | 219,508,593.00 | 29,036,499.00 | 252,373,622.00 |
| Deferred income tax liabilities | 30,718,513.00 | 1,478,963,366.00 | 29,036,499.00 | 1,419,373,545.00 |
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible temporary difference | 8,719,829,410.00 | 9,073,884,112.00 |
| Deductible losses | 8,747,237,628.00 | 6,752,930,780.00 |
| Total | 17,467,067,038.00 | 15,826,814,892.00 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
| Years | Ending amount | Beginning amount | Notes |
| Y2019 | 0.00 | 38,076,038.00 | Naught |
| Y2020 | 59,149,932.00 | 59,149,932.00 | Naught |
| Y2021 | 52,190,671.00 | 52,190,671.00 | Naught |
| Y2022 | 531,563,409.00 | 528,642,251.00 | Naught |
| Y2023 | 686,639,477.00 | 669,677,506.00 | Naught |
| Y2024 | 686,179,935.00 | 125,649,689.00 | Naught |
| Y2025 | 512,243,532.00 | 512,243,532.00 | Naught |
| Y2026 | 233,283,462.00 | 233,283,462.00 | Naught |
| Y2027 | 133,672,001.00 | 133,672,001.00 | Naught |
| Y2028 | 4,218,431,457.00 | 4,296,683,816.00 | Naught |
| Y2029 | 1,530,221,870.00 | 0.00 | Naught |
| Other | 103,661,882.00 | 103,661,882.00 | Naught |
| Total | 8,747,237,628.00 | 6,752,930,780.00 | -- |
Other notes:
According to the applicable local tax laws, Loss of some overseas subsidiaries of the Group has indefinite carry-over period to deductthe future taxable income.
21. Other Non-current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Ending balance | Beginning balance |
| The VAT collection of imported equipment | 3,948,863,762.00 | 3,187,164,914.00 |
| Prepayment for procurement of fixed assets | 2,180,573,049.00 | 2,896,176,554.00 |
| Excess VAT paid | 2,621,901,055.00 | 1,488,605,413.00 |
| Other | 780,839,037.00 | 321,055,172.00 |
| Total | 9,532,176,903.00 | 7,893,002,053.00 |
Other notes: None
22. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loans | 1,000,000,000.00 | 2,269,014,875.00 |
| Mortgage loans | 0.00 | 344,480,302.00 |
| Guaranteed loans | 0.00 | 0.00 |
| Credit loans | 6,719,908,693.00 | 2,836,459,708.00 |
| Total | 7,719,908,693.00 | 5,449,954,885.00 |
Notes of category of short-term borrowings: None
(2) Overdue and Outstanding Short-term Borrowings
The total overdue and outstanding short-term borrowings was RMB0.00, of which, the significant ones were listed as follows:
Unit: RMB
| Unit | Ending balance | Loan interest rate | Overdue time | Overdue charge rate |
| None |
Other notes: None
23. Notes Payable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Trade acceptance bill | 33,322,011.00 | 264,534,018.00 |
| Bank’s acceptance bill | 1,027,908,880.00 | 326,575,254.00 |
| Total | 1,061,230,891.00 | 591,109,272.00 |
The total overdue and outstanding notes payable at the period-end were RMBXXX.
24. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Accounts payable of connected parties | 32,351,984.00 | 30,361,810.00 |
| Accounts payable of the third-party | 20,531,568,839.00 | 22,183,594,806.00 |
| Total | 20,563,920,823.00 | 22,213,956,616.00 |
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| None |
Other notes: None
25. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advances from customers of connected parties | 10,679.00 | 1,111.00 |
| Advances from customers of the third-party | 1,245,349,097.00 | 1,218,933,632.00 |
| Total | 1,245,359,776.00 | 1,218,934,743.00 |
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| None |
(3) Uncompleted but Settled Items Resulting from Construction Contracts at the Period-end
Unit: RMB
| Item | Amount |
| Accumulated incurred cost | 0.00 |
| Accumulated recognized gross margin | 0.00 |
| Less: Estimated losses | 0.00 |
| Settlement amount | 0.00 |
| Completed but unsettled items resulting from construction contracts | 0.00 |
Other notes: None
26. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 2,175,807,665.00 | 5,118,440,766.00 | 6,016,696,272.00 | 1,277,552,159.00 |
| II. Post-employment benefit-defined contribution plans | 34,353,845.00 | 446,990,491.00 | 455,239,875.00 | 26,104,461.00 |
| III. Termination benefits | 14,769,661.00 | 1,690,111.00 | 1,739,846.00 | 14,719,926.00 |
| IV. Other benefits due within one year | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 2,224,931,171.00 | 5,567,121,368.00 | 6,473,675,993.00 | 1,318,376,546.00 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 1,817,946,511.00 | 4,169,283,240.00 | 5,043,580,100.00 | 943,649,651.00 |
| 2. Employee welfare | 0.00 | 334,548,858.00 | 334,548,858.00 | 0.00 |
| 3. Social insurance | 31,310,324.00 | 254,934,674.00 | 254,281,366.00 | 31,963,632.00 |
| Of which: Medical insurance premiums | 27,150,184.00 | 229,760,947.00 | 229,288,705.00 | 27,622,426.00 |
| Work-related injury insurance | 2,048,914.00 | 12,891,645.00 | 12,903,301.00 | 2,037,258.00 |
| Maternity insurance | 2,111,226.00 | 12,282,082.00 | 12,089,360.00 | 2,303,948.00 |
| 4. Housing fund | 22,081,660.00 | 261,387,790.00 | 263,228,710.00 | 20,240,740.00 |
| 5.Labor union budget and employee education budget | 274,477,650.00 | 92,457,978.00 | 96,584,933.00 | 270,350,695.00 |
| 6. Short-term compensated absence | 0.00 | 0.00 | 0.00 | 0.00 |
| 7. Short-term profit-sharing plan | 0.00 | 0.00 | 0.00 | 0.00 |
| 8. Employee bonus and welfare fund | 7,282,591.00 | 0.00 | 0.00 | 7,282,591.00 |
| 9. Other short-term salary | 22,708,929.00 | 5,828,226.00 | 24,472,305.00 | 4,064,850.00 |
| Total | 2,175,807,665.00 | 5,118,440,766.00 | 6,016,696,272.00 | 1,277,552,159.00 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 29,206,273.00 | 425,733,306.00 | 430,197,567.00 | 24,742,012.00 |
| 2. Unemployment insurance | 964,893.00 | 15,067,739.00 | 15,641,053.00 | 391,579.00 |
| 3. Annuity | 4,182,679.00 | 6,189,446.00 | 9,401,255.00 | 970,870.00 |
| Total | 34,353,845.00 | 446,990,491.00 | 455,239,875.00 | 26,104,461.00 |
Other notes: None
27. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 150,005,574.00 | 112,292,699.00 |
| Consumption tax | 0.00 | 0.00 |
| Corporate income tax | 277,951,727.00 | 387,053,187.00 |
| Personal income tax | 26,520,741.00 | 39,659,862.00 |
| Urban maintenance and construction tax | 78,343,132.00 | 205,222,860.00 |
| Education surcharge and local education surcharge | 46,494,761.00 | 148,544,558.00 |
| Other | 33,687,253.00 | 77,335,132.00 |
| Total | 613,003,188.00 | 970,108,298.00 |
Other notes:
None
28. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest payable | 893,836,112.00 | 1,016,761,921.00 |
| Dividends payable | 10,999,707.00 | 23,648,778.00 |
| Other accounts payable | 25,297,379,612.00 | 21,916,569,129.00 |
| Total | 26,202,215,431.00 | 22,956,979,828.00 |
(1) Interest Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loan interest of installment payment of interest and repay the due capital | 886,685,964.00 | 762,123,837.00 |
| Enterprise bond interest | 0.00 | 246,821,918.00 |
| Interest paid for short-term borrowings | 7,150,148.00 | 7,816,166.00 |
| Interest of preferred shares/perpetual bonds classified as financial liabilities | 0.00 | 0.00 |
| Total | 893,836,112.00 | 1,016,761,921.00 |
Significant overdue and outstanding interests:
Unit: RMB
| Entity | Overdue amount | Overdue reason |
| None |
Other notes:
None
(2) Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary share dividends | 10,999,707.00 | 23,648,778.00 |
| Dividends of preferred shares/perpetual bonds classified as equity instruments | 0.00 | 0.00 |
| Total | 10,999,707.00 | 23,648,778.00 |
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year: None
(3) Other Accounts Payable
1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Engineering and equipment | 21,545,410,992.00 | 18,042,357,713.00 |
| The VAT collection of imported equipment | 1,462,687,811.00 | 1,400,000,000.00 |
| Pre-withdrawal water and electricity & logistics freight | 556,309,425.00 | 606,071,394.00 |
| Margin | 520,741,366.00 | 440,792,988.00 |
| External agency fee | 55,659,961.00 | 53,393,714.00 |
| Other | 1,156,570,057.00 | 1,373,953,320.00 |
| Total | 25,297,379,612.00 | 21,916,569,129.00 |
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| None |
Other notes: None
29. Non-current Liabilities Due within One Year
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loans due within 1 year | 7,170,056,176.00 | 5,388,485,615.00 |
| Bonds payable due within 1 year | 0.00 | 0.00 |
| Long-term accounts payable due within 1 year | 112,936,757.00 | 209,077,589.00 |
| Lease liabilities due within 1 year | 0.00 | 0.00 |
| Total | 7,282,992,933.00 | 5,597,563,204.00 |
Other notes: None
30. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
The ending balance amount of other current liabilies is RMB1,143,477,445.00.The other current liabilities of the Group were warranty provision.Increase or decrease in short-term bonds payable:
Unit: RMB
| Bond name | Par value | Issuing date | Duration | Issuing amount | Beginning balance | Issued in the Current Period | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the Reporting Period | Ending balance |
| None |
Other notes: None
31. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loan | 2,208,409,413.00 | 2,282,358,683.00 |
| Mortgage loan | 70,482,455,673.00 | 65,103,423,213.00 |
| Guaranteed loan | 660,000,000.00 | 660,000,000.00 |
| Credit loan | 34,574,088,005.00 | 26,734,295,968.00 |
| Total | 107,924,953,091.00 | 94,780,077,864.00 |
Notes of the category of long-term borrowings: NoneOther notes, including the interest rate range: None
32. Bonds Payable
(1) Bonds Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bonds payable | 309,933,489.00 | 10,288,666,233.00 |
| Total | 309,933,489.00 | 10,288,666,233.00 |
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instruments Classified as Financial Liabilities such as Preferred Shares and PerpetualBonds)
Unit: RMB
| Bond name | Par value | Issuing date | Duration | Issuing amount | Beginning balance | Issued in the Current Period | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the Reporting Period | Differences arising from translation of foreign currency-denominated financial statements | Ending balance |
| 16BOE01 | RMB 10,000,000,000.00 | 21 March 2016 | 5 years | RMB 10,000,000,000.00 | 9,976,533,425.00 | 0.00 | 315,369,589.00 | 23,466,575.00 | 10,315,369,589.00 | 0.00 | 0.00 |
| Euro PP | Euro 10,000,000.00 | 29 December 2016 | 7 years | Euro 10,000,000.00 | 78,470,471.00 | 0.00 | 1,343,510.00 | 0.00 | 0.00 | -307,460.00 | 79,506,521.00 |
| Euro PP | Euro 30,000,000.00 | 29 March 2017 | 6 years | Euro 30,000,000.00 | 233,662,337.00 | 0.00 | 4,030,530.00 | -6,350,373.00 | 0.00 | -915,526.00 | 230,426,968.00 |
| Total | -- | -- | -- | 10,313,892,000.00 | 10,288,666,233.00 | 0.00 | 320,743,629.00 | 17,116,202.00 | 10,315,369,589.00 | -1,222,986.00 | 309,933,489.00 |
(3) Explanations on Share Transfer Conditions and Time for Convertible Corporate Bonds
None
(4) Other Financial Instruments Classified as Financial Liabilities
Basic situation of other financial instruments outstanding at the period-end such preferred shares and perpetual bondsNone
Changes in financial instruments outstanding at the period-end such preferred shares and perpetual liabilities
Unit: RMB
| Outstanding financial instruments | Period-beginning | Increase | Decrease | Period-end | ||||
| Amount | Carrying value | Amount | Carrying value | Amount | Carrying value | Amount | Carrying value | |
| None | ||||||||
Notes to the basis of classifying other financial instruments as financial liabilities:
NoneOther notesNone
33. Long-term Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term accounts payable | 1,127,696,942.00 | 1,416,092,239.00 |
| Specific payables | 0.00 | 0.00 |
| Total | 1,127,696,942.00 | 1,416,092,239.00 |
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financing lease | 1,127,696,942.00 | 1,416,092,239.00 |
Other notes: None
(2) Specific Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Reason for formation |
| None | |||||
| Total | 0.00 | 0.00 | -- |
Other notes:
None
34. Provision
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Ending balance | Beginning balance | Formed reason |
| External guaranty | 0.00 | 0.00 | Naught |
| Pending litigation | 0.00 | 0.00 | Naught |
| Product quality assurance | 0.00 | 0.00 | Naught |
| Restructuring obligations | 0.00 | 0.00 | Naught |
| Onerous contracts to be executed | 0.00 | 0.00 | Naught |
| Other | 16,457,010.00 | 16,457,010.00 | In 2009, the Group ceased producing several products and stopped fulfilling the purchase contract related to production. Due to the indemnity incurred accordingly, the Group withdrew the relevant estimated liabilities according to reasonable estimation of losses. |
| Refund payable | 0.00 | 0.00 | Naught |
| Total | 16,457,010.00 | 16,457,010.00 | -- |
Other notes, including significant assumptions and estimation related to significant provisions: None
35. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Formed reason |
| Government subsidies | 2,187,558,533.00 | 916,809,317.00 | 589,591,127.00 | 2,514,776,723.00 | Government subsidies |
| Total | 2,187,558,533.00 | 916,809,317.00 | 589,591,127.00 | 2,514,776,723.00 | -- |
Item involving government subsidies:
Unit: RMB
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related to income |
| Related to assets | 1,919,750,983.00 | 182,047,083.00 | 0.00 | 169,171,630.00 | 0.00 | 50,000.00 | 1,932,576,436.00 | Related to assets |
| Related to income | 267,807,550.00 | 734,762,234.00 | 0.00 | 420,369,497.00 | 0.00 | 0.00 | 582,200,287.00 | Related to income |
| Total | 2,187,558,533.00 | 916,809,317.00 | 0.00 | 589,541,127.00 | 0.00 | 50,000.00 | 2,514,776,723.00 |
Other notes: None
36. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Ending balance | Beginning balance |
| Convertible creditor's right | 4,270,342,467.00 | 4,175,131,508.00 |
| Equity investment with redemption items | 3,731,068,856.00 | 3,700,737,154.00 |
| The VAT collection of imported equipment | 3,948,863,762.00 | 3,187,164,914.00 |
| Other | 97,019,069.00 | 271,839,746.00 |
| Total | 12,047,294,154.00 | 11,334,873,322.00 |
Other notes: None
37. Share Capital
Unit: RMB
| Beginning balance | Increase/decrease (+/-) | Ending balance | |||||
| New shares issued | Bonus shares | Bonus issue from profit | Other | Subtotal | |||
| The sum of shares | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34,798,398,763.00 |
Other notes: None
38. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium (premium on stock) | 37,546,517,053.00 | 0.00 | 0.00 | 37,546,517,053.00 |
| Other capital reserves | 666,583,543.00 | 7,834,727.00 | 8,013,322.00 | 666,404,948.00 |
| Total | 38,213,100,596.00 | 7,834,727.00 | 8,013,322.00 | 38,212,922,001.00 |
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
None
39. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Reporting Period | Ending balance | |||||
| Income before taxation in the Current Period | Less: Recorded in other comprehensive income in prior | Less: Recorded in other comprehensive income in prior | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests | |||
| period and transferred in profit or loss in the Current Period | period and transferred in retained earnings in the Current Period | after tax | ||||||
| I. Other comprehensive income that will not be reclassified to profit or loss | -221,804,664.00 | -21,925,038.00 | 0.00 | 0.00 | 1,682,014.00 | -23,607,052.00 | 0.00 | -245,411,716.00 |
| Of which: Changes caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other comprehensive income that will not be reclassified to profit or loss under equity method | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Changes in fair value of other equity instrument investment | -221,804,664.00 | -21,925,038.00 | 0.00 | 0.00 | 1,682,014.00 | -23,607,052.00 | 0.00 | -245,411,716.00 |
| Changes in fair value of enterprise credit risk | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Other comprehensive income that may be reclassified to profit or loss | -109,644,969.00 | 72,503,557.00 | 0.00 | 0.00 | 0.00 | 71,738,841.00 | 764,716.00 | -37,906,128.00 |
| Of which: Other comprehensive income that will be reclassified to profit or loss under equity method | -58,383,948.00 | 175,359,777.00 | 0.00 | 0.00 | 0.00 | 175,359,777.00 | 0.00 | 116,975,829.00 |
| Changes in fair value of other creditors’ investment | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Amount of financial assets reclassified to other comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Provision for credit impairment of other creditors’ investment | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Reserves for cash flow hedges | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Differences arising from translation of foreign currency-denominated financial statements | -51,261,021.00 | -102,856,220.00 | 0.00 | 0.00 | 0.00 | -103,620,936.00 | 764,716.00 | -154,881,957.00 |
| Total of other comprehensive income | -331,449,633.00 | 50,578,519.00 | 0.00 | 0.00 | 1,682,014.00 | 48,131,789.00 | 764,716.00 | -283,317,844.00 |
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective gain/loss on cash flow hedges:
None
40. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserves | 862,954,120.00 | 0.00 | 0.00 | 862,954,120.00 |
| Discretionary surplus reserves | 289,671,309.00 | 0.00 | 0.00 | 289,671,309.00 |
| Reserve fund | 0.00 | 0.00 | 0.00 | 0.00 |
| Enterprise expansion fund | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 1,152,625,429.00 | 0.00 | 0.00 | 1,152,625,429.00 |
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
None
41. Retained Profits
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Opening balance of retained profits before adjustments | 11,817,881,286.00 | 10,385,659,084.00 |
| Total beginning balance of retained profits before adjustments (increase+, decrease-) | 200,341,707.00 | 0.00 |
| Beginning balance of retained profits after adjustments | 12,018,222,993.00 | 10,385,659,084.00 |
| Add: Net profit attributable to owners of the Company as the parent | 1,668,448,449.00 | 2,975,206,500.00 |
| Less: Withdrawal of statutory surplus reserves | 0.00 | 0.00 |
| Withdrawal of discretional surplus reserves | 0.00 | 0.00 |
| Withdrawal of general reserve | 0.00 | 0.00 |
| Dividend of ordinary shares payable | 1,043,951,963.00 | 1,740,789,879.00 |
| Dividend of common stock transferred into share capital | 0.00 | 0.00 |
| Ending retained profits | 12,642,719,479.00 | 11,620,075,705.00 |
List of adjustment of beginning retained profits:
(1) RMB200,341,707.00beginning retained profits was affected by retrospective adjustment conducted according to the AccountingStandards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
42. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 53,422,449,210.00 | 44,536,416,408.00 | 42,373,062,968.00 | 34,334,111,314.00 |
| Other operations | 1,616,759,477.00 | 1,275,916,823.00 | 1,100,841,998.00 | 810,470,817.00 |
| Total | 55,039,208,687.00 | 45,812,333,231.00 | 43,473,904,966.00 | 35,144,582,131.00 |
Whether the Company has executed the new income standards
□ Yes √ No
Other notes
43. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Urban maintenance and construction tax | 104,659,038.00 | 56,823,610.00 |
| Education Surcharge | 63,312,004.00 | 35,602,048.00 |
| Property tax | 169,090,680.00 | 148,231,522.00 |
| Land use tax | 23,948,298.00 | 15,009,812.00 |
| Stamp duty | 54,991,492.00 | 41,039,849.00 |
| Other | 8,851,895.00 | 5,858,913.00 |
| Total | 424,853,407.00 | 302,565,754.00 |
Other notes: None
44. Selling Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Warranty provisions | 586,582,634.00 | 600,466,512.00 |
| Labor cost | 300,120,333.00 | 234,613,824.00 |
| Logistic transport fees | 245,691,178.00 | 200,968,268.00 |
| Other | 232,893,141.00 | 258,733,990.00 |
| Total | 1,365,287,286.00 | 1,294,782,594.00 |
Other notes: None
45. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Labor cost | 1,030,099,305.00 | 993,219,826.00 |
| Maintenance cost | 520,428,006.00 | 438,011,265.00 |
| Depreciation and amortization | 221,481,455.00 | 293,524,665.00 |
| Other | 425,174,728.00 | 418,952,794.00 |
| Total | 2,197,183,494.00 | 2,143,708,550.00 |
Other notes: None
46. R&D Expenses
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Labor cost | 1,103,263,819.00 | 623,860,877.00 |
| Material fee | 737,490,376.00 | 385,327,401.00 |
| Depreciation and amortization | 532,776,728.00 | 296,109,145.00 |
| Other | 551,127,313.00 | 294,897,300.00 |
| Total | 2,924,658,236.00 | 1,600,194,723.00 |
Other notes:
None
47. Finance Costs
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest expense | 1,535,561,809.00 | 1,427,741,240.00 |
| Interest income | -398,822,857.00 | -345,988,686.00 |
| Net exchange (income)/ losses | -1,145,247.00 | 55,074,145.00 |
| Other finance costs | 31,159,667.00 | 64,346,956.00 |
| Total | 1,166,753,372.00 | 1,201,173,655.00 |
Other notes:
None
48. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Government subsidy related to enterprise daily activities | 1,117,952,927.00 | 1,904,160,159.00 |
49. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | -16,571,961.00 | -29,578,579.00 |
| Investment income from disposal of long-term equity investment | 0.00 | 9,317,244.00 |
| Investment income from holding of trading financial assets | 0.00 | 0.00 |
| Investment income from disposal of trading financial assets | 23,962,521.00 | 180,450,009.00 |
| Dividend income from holding of other equity instrument investment | 6,174,811.00 | 6,735,339.00 |
| Investment income from holding of held-to-maturity investment | 0.00 | 0.00 |
| Investment income from holding of available-for-dale financial assets | 0.00 | 0.00 |
| Investment income from disposal of available-for-sale financial assets | 0.00 | 0.00 |
| Investment income from disposal of held-to-maturity investment | 0.00 | 0.00 |
| Gains from remeasurement of residual stock rights at fair value after losing control power | 0.00 | 0.00 |
| Interest income from holding of creditors’ investment | 0.00 | 0.00 |
| Interest income from holding of other creditors’ investment | 0.00 | 0.00 |
| Investment income from disposal of other creditors’ investment | 0.00 | 0.00 |
| Total | 13,565,371.00 | 166,924,013.00 |
Other notes: None
50. Gains from changes in fair value
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Trading financial assets | 55,666,155.00 | 0.00 |
| Of which: Gains from changes in fair value of derivative financial instruments | 0.00 | 0.00 |
| Trading financial liabilities | 0.00 | 0.00 |
| Investment property measured by fair value | 0.00 | 0.00 |
| Total | 55,666,155.00 | 0.00 |
Other notes: None
51. Credit Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Bad debt loss of other receivables | -6,317,588.00 | 0.00 |
| Impairment loss of creditors’ investment | 0.00 | 0.00 |
| Impairment loss of other creditors’ investment | 0.00 | 0.00 |
| Bad debt loss of long-term receivables | 0.00 | 0.00 |
| Impairment loss of contract assets | 0.00 | 0.00 |
| Bad debt loss of accounts receivables | -13,912,857.00 | 0.00 |
| Total | -20,230,445.00 | 0.00 |
Other notes: None
52. Asset Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Reporting Period | Same period of last year |
| I. Bad debt loss | 0.00 | -358,199.00 |
| II. Inventory falling price loss | -598,106,867.00 | -457,791,061.00 |
| III. Impairment losses on available-for-sale financial assets | 0.00 | 0.00 |
| IV. Impairment losses on held-to-maturity investment | 0.00 | 0.00 |
| V. impairment losses on long-term equity investment | 0.00 | 0.00 |
| VI. Impairment losses on investment property | 0.00 | 0.00 |
| VII. Fixed assets impairment losses | 0.00 | 0.00 |
| VIII. Impairment losses on engineering materials | 0.00 | 0.00 |
| IX. Impairment losses on construction in progress | 0.00 | 0.00 |
| X. Impairment losses on productive living assets | 0.00 | 0.00 |
| XI. Impairment losses on oil and gas assets | 0.00 | 0.00 |
| XII. Impairment losses on intangible assets | 0.00 | 0.00 |
| XIII. Goodwill impairment losses | 0.00 | 0.00 |
| XIV. Other | 0.00 | 0.00 |
| Total | -598,106,867.00 | -458,149,260.00 |
Other notes: None
53. Asset Disposal Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Fixed assets disposal income | 373,679.00 | -158,511.00 |
54. Non-operating Income
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Income from debt restructuring | 0.00 | 0.00 | 0.00 |
| Income from non-monetary assets exchange | 0.00 | 0.00 | 0.00 |
| Donations accepted | 0.00 | 0.00 | 0.00 |
| Government subsidies | 34,368,058.00 | 61,057,457.00 | 34,368,058.00 |
| Other | 61,975,474.00 | 35,584,411.00 | 61,975,474.00 |
| Total | 96,343,532.00 | 96,641,868.00 | 96,343,532.00 |
Government subsidies recorded into current profit or loss:
Unit: RMB
| Item | Distribution entity | Distribution reason | Nature | Whether subsidies influence the current profit or loss | Special subsidy or not | Reporting Period | Same period of last year | Related to assets/related to income |
| Other non-recurring government subsidies | Municipal People’s Government, NDRC, Finance Bureau etc. | Subsidy | Due to engaged in special industry that the state encouraged and supported, gained subsidy (obtaining in line with the law and the regulations of | No | No | 34,368,058.00 | 61,057,457.00 | Related to income |
Other notes: None
55. Non-operating Expense
Unit: RMB
national policy)
Item
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Losses from debt reconstruction | 0.00 | 0.00 | 0.00 |
| Non-monetary asset exchange losses | 0.00 | 0.00 | 0.00 |
| Donation | 2,512,720.00 | 1,383,000.00 | 2,512,720.00 |
| Other | 9,335,620.00 | 6,270,811.00 | 9,335,620.00 |
| Total | 11,848,340.00 | 7,653,811.00 | 11,848,340.00 |
Other notes: None
56. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Current income tax expense | 579,625,856.00 | 600,652,106.00 |
| Deferred income tax expense | 94,149,185.00 | 58,916,454.00 |
| Total | 673,775,041.00 | 659,568,560.00 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 1,801,855,673.00 |
| Current income tax expense accounted at statutory/applicable tax rate | 270,278,351.00 |
| Influence of applying different tax rates by subsidiaries | -44,290,962.00 |
| Influence of income tax before adjustment | 0.00 |
| Influence of non-taxable income | -2,034,806.00 |
| Influence of not deductable costs, expenses and losses | 1,558,230.00 |
| Influence of deductable loss of unrecognized deferred income tax assets in prior period | -52,847,194.00 |
| Influence of deductable temporary difference or deductable loss of unrecognized deferred income tax assets in the Reporting Period | 358,004,462.00 |
| Other | 143,106,960.00 |
| Income tax expense | 673,775,041.00 |
Other notes: None
57. Other Comprehensive Income
Refer to Note VII-57 for details.
58. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
The total cash generated from other operation activities in Group’s consolidated cash flow statement was RMB4,211,734,116.00 inthe Reporting Period, most of which are government subsidies received and the recovery of restricted deposits in financialinstitutions.
(2) Cash Used in Other Operating Activities
The total cash used in other investment activities in Group’s consolidated cash flow statement was RMB4,102,320,555.00 in theReporting Period, most of which are payment for overheads.
(3) Cash Generated from Other Investing Activities
The total cash generated from other investment activities in Group’s consolidated cash flow statement was RMB108,292,744.00 inthe Reporting Period, most of which are bid price recovered, bid bond and interest income.
(4) Cash Used in Other Investing Activities
The total cash used in other investment activities in Group’s consolidated cash flow statement was RMB56,414,722.00 in theReporting Period, most of which are payment for the return on bid bond, performance bond, safety construction bond and customsbond.
(5) Cash Generated from Other Financing Activities
The total cash generated from other financing activities in Group’s consolidated cash flow statement was RMB133,415,725.00 in theReporting Period, most of which are the recovery of restricted deposits in financial institutions.
(6) Cash Used in Other Financing Activities
The total cash used in other financing activities in Group’s consolidated cash flow statement was RMB73,504,151.00 in theReporting Period, most of which are payment for the decrease capital of non-controlling interests and commission expenses.
59. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash flows generated from operating activities | -- | -- |
| Net profit | 1,128,080,632.00 | 2,829,093,457.00 |
| Add: Provision for impairment of assets | 598,106,867.00 | 458,149,260.00 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 9,019,062,288.00 | 6,556,160,630.00 |
| Depreciation of right-to-use assets | 0.00 | 0.00 |
| Amortization of intangible assets | 161,230,388.00 | 258,521,192.00 |
| Amortization of long-term prepaid expenses | 59,700,556.00 | 49,953,934.00 |
| Losses on disposal of fixed assets, intangible assets and other long-lived assets (gains: negative) | 217,671.00 | 421,587.00 |
| Losses on scrap of fixed assets (gains: negative) | 289,077.00 | 329,303.00 |
| Losses from variation of fair value (gains: negative) | -55,666,155.00 | 0.00 |
| Finance costs (gains: negative) | 1,700,086,916.00 | 1,330,319,892.00 |
| Investment loss (gains: negative) | -13,565,371.00 | -166,924,013.00 |
| Decrease in deferred income tax assets (gains: negative) | 32,865,030.00 | -70,086,012.00 |
| Increase in deferred income tax liabilities (“-” means decrease) | 59,589,820.00 | 723,822,985.00 |
| Decrease in inventory (gains: negative) | -2,520,248,329.00 | -2,381,077,971.00 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | 1,509,753,826.00 | -1,795,552,371.00 |
| Increase in accounts payable used in operating activities (decrease: negative) | 203,464,853.00 | 4,172,927,102.00 |
| Others | -287,983,720.00 | -384,551,801.00 |
| Net cash generated from/used in operating activities | 11,594,984,349.00 | 11,581,507,174.00 |
| 2. Significant investing and financing activities without involvement of cash receipts and payments | -- | -- |
| Transfer of debt to capital | 0.00 | 0.00 |
| Convertible corporate bonds due within one year | 0.00 | 0.00 |
| Fixed assets leased in through financing | 0.00 | 0.00 |
| 3. Net increase/decrease of cash and cash equivalent: | -- | -- |
| Ending balance of cash | 40,243,333,561.00 | 43,089,999,591.00 |
| Less: Beginning balance of cash | 43,350,696,520.00 | 47,913,287,583.00 |
| Add: Ending balance of cash equivalents | 0.00 | 0.00 |
| Less: Beginning balance of cash equivalents | 0.00 | 0.00 |
| Net increase in cash and cash equivalents | -3,107,362,959.00 | -4,823,287,992.00 |
(2) Cash and Cash Equivalents
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 40,243,333,561.00 | 43,350,696,520.00 |
| Including: Cash on hand | 528,768.00 | 537,805.00 |
| Bank deposit on demand | 40,202,349,838.00 | 43,340,146,382.00 |
| Other monetary funds on demand | 40,454,955.00 | 10,012,333.00 |
| II. Cash equivalents | 0.00 | 0 |
| III. Ending balance of cash and cash equivalents | 40,243,333,561.00 | 43,350,696,520.00 |
| Of which: Cash and cash equivalents with restricted use by the Company as the parent and its subsidiaries | 40,454,955.00 | 10,012,333.00 |
Notes: None
60. Notes to Items in Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the Same period of last year and the correspondingamount:
None
61. Assets with Restricted Ownership or Right to Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary capital | 6,948,337,136.00 | Pledged for guarantee and as cash deposit |
| Notes receivable | 49,271,680.00 | Discounted transfer with recourse attached, negotiability with recourse attached and pledged for issuing notes payable |
| Inventories | 0 | Naught |
| Fixed assets | 97,485,999,524.00 | Mortgaged for guarantee |
| Intangible assets | 1,297,670,069.00 | Mortgaged for guarantee |
| Investment property | 43,707,923.00 | Mortgaged for guarantee |
| Construction in progress | 43,789,518,170.00 | Mortgaged for guarantee |
| Total | 149,614,504,502.00 | -- |
Notes: None
62. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary fund | -- | -- | |
| Including: USD | 3,262,106,101.00 | 6.8747 | 22,426,000,810.00 |
| EUR | 70,639,172.00 | 7.8170 | 552,186,408.00 |
| HKD | 39,302,600.00 | 0.8797 | 34,574,497.00 |
| Accounts receivable | -- | -- | |
| Including: USD | 1,649,186,755.00 | 6.8747 | 11,337,664,185.00 |
| EUR | 45,904,620.00 | 7.8170 | 358,836,415.00 |
| HKD | 331.00 | 0.8797 | 291.00 |
| Long-term borrowings | -- | -- | |
| Including: USD | 4,622,590,000.00 | 6.8747 | 31,778,919,473.00 |
| EUR | 214,183,749.00 | 7.8170 | 1,674,274,362.00 |
| HKD | 0.00 | 0.8797 | 0.00 |
Notes: None
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, RecordingCurrency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, RelevantReasons Shall Be Disclosed.
□ Applicable √ Not applicable
VIII. Changes of Consolidation Scope
1. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rightsand interests in accordance with the equity transaction process: None
2. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
3. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevantinformation: None
4. Other
NoneIX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
| Name | Main operating place | Registration place | Nature of business | Holding percentage (%) | Way of gaining | |
| Directly | Indirectly | |||||
| Beijing BOE Optoelectronics Technology Co., Ltd. | Beijing, China | Beijing, China | Research, development, design and manufacture of TFT-LCD. | 82.49% | 17.51% | Investment |
| Chengdu BOE Optoelectronics Technology Co., Ltd. (“Chengdu Optoelectronics”) | Chengdu, China | Chengdu, China | R&D, design, production and sales of new display devices and modules and other electronic components. | 100.00% | 0.00% | Business combination not under the same 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. | 100.00% | 0.00% | Business combination not under the same control |
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | Beijing, China | Development of TFT-LCD, manufacture and sale of LCD. | 97.17% | 2.83% | Investment |
| (“Beijing BOE Display”) | ||||||
| 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. | 84.59% | 0.03% | Business combination not under the same control |
| Ordos Yuansheng Optoelectronics Co., Ltd. (“Yuansheng Optoelectronics”) | Ordos, China | Ordos, China | Manufacture and sales of AM-OLED products and auxiliary products. | 100.00% | 0.00% | Investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. (“Chongqing BOE”) | 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. | 100.00% | 0.00% | Business combination not under the same control |
| Fuzhou BOE Optoelectronic Technology Co., Ltd. (“Fuzhou BOE”) | Fuzhou, China | Fuzhou, China | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products. | 81.25% | 0.00% | Business combination not under the same control |
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | Beijing, China | Beijing, China | Manufacture of LCD TV, LCD; technology development of terminal products and systems such as TFT-LCD display and TV. | 100.00% | 0.00% | Investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | Beijing, China | Manufacture and sale of vacuum electronic products | 55.00% | 0.00% | Investment |
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | Beijing, China | Manufacture and sale of electronic tubes. | 100.00% | 0.00% | Investment |
| Beijing BOE Special Display Technology Co., Ltd. (“Special Display”) | Beijing, China | Beijing, China | Development of display products and sale of electronic products. | 100.00% | 0.00% | Investment |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | Beijing, China | Management of engineering projects; real estate development; public parking lot for motor vehicles service; office lease. | 100.00% | 0.00% | Investment |
| BOE Optical Science and Technology Co., Ltd. (“Optical Science and Technology”) | Suzhou, China | Suzhou, China | R&D, production and sales of LCD, back light for display and related components. | 95.17% | 0.00% | Investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | Beijing, China | Development, manufacture and sale of liquid display for mobile termination. | 75.00% | 0.00% | Investment |
| BOE (Hebei) Mobile | Langfang, | Langfang, | Manufacture and sale of mobile flat | 100.00% | 0.00% | Investment |
| Technology Co., Ltd. (“BOE Hebei”) | China | China | screen display technical products and related services. | |||
| Beijing BOE Multimedia Technology Co. Ltd. (“BOE Multimedia”) | Beijing, China | Beijing, China | Sale of computer software and hardware, the numeral regards the audio frequency technology. | 100.00% | 0.00% | Investment |
| Beijing BOE Energy Technology Co., Ltd. (“BOE Energy”) | 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. | 100.00% | 0.00% | Investment |
| Beijing BOE Life Technology Co., Ltd. (“BOE Life Technology”) | Beijing, China | Beijing, China | Technology promotion, property management, and sales of electronic products. | 100.00% | 0.00% | Investment |
| Beijing Zhongxiangying Technology Co., Ltd. (“Zhongxiangying”) | Beijing, China | Beijing, China | Technology promotion, property management, and sales of electronic products. | 100.00% | 0.00% | Investment |
| Erdos Haosheng Energy Investment Co., Ltd. (“Haosheng Energy”) | Ordos, China | Ordos, China | Energy investment. | 20.00% | 80.00% | Investment |
| Beijing 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 | 80.77% | 0.00% | Investment |
| BOE Optoelectronics Holding Co., Ltd (“Optoelectronics Holding”) | Hong Kong, China | Virgin Islands, British | Design, manufacturing and sales of electronic-information industry related products, investment and financing businesses. | 100.00% | 0.00% | Investment |
| Beijing Asahi Electronic Materials Co., Ltd. | Beijing, China | Beijing, China | Sales of TV bracket glass rod and CTV low-melting-point solder glass. | 100.00% | 0.00% | Business combination not under the same control |
| BOE Health Investment Management Co., Ltd. (“Health Investment”) | Beijing, China | Beijing, China | Investment management and project investment. | 100.00% | 0.00% | Business combination not under the same control |
| Beijing?Matsushita Color CRT Co., Ltd. (“Matsushita Color | Beijing, China | Beijing, China | Color TV set, display tube, color RPTV projection tube and materials of electronic components; property | 88.80% | 0.00% | Business combination not under the |
| CRT”) | management and parking services, etc. | same control | ||||
| Hefei BOE Display Technology Co., Ltd. (“Hefei Technology”) | Hefei, China | Hefei, China | Investment, R & D and production of products related to TFT-LCD and the supporting facility. | 8.33% | 0.00% | Business combination not under the same control |
| Beijing BOE Technology Development Co., Ltd. (“Technology Development”) | Beijing, China | Beijing, China | Development, transfer, consulting and service of technology. | 100.00% | 0.00% | Investment |
| BOE Wisdom IOT Technology Co., Ltd. (“Wisdom IOT Technology”) | Beijing, China | Beijing, China | Development, transfer, consulting, service and promotion of technology. | 100.00% | 0.00% | Investment |
| Hefei BOE Zhuoyin Technology Co., Ltd. (“Zhuoyin Technology”) | Hefei, China | Hefei, China | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products. | 75.00% | 0.00% | 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. | 70.00% | 0.00% | Investment |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | Beijing, China | Sales of communication equipment, hardward & 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. | 100.00% | 0.00% | Investment |
| Kunming BOE Display Technology Co., Ltd. (“Kunming BOE”) | Kunming, China | Kunming, China | Development, spread, transfer, consulting and service providing of display technology; service | 69.43% | 0.00% | Investment |
| providing of computer software/hardware and network systems; construction, operation and management of e-commerce platforms; providing service of conferences; undertaking of exhibitions; computer animation design; production, R&D and sales of OLED micro display devices and AR/VR complete machine; storage services; project investment and corresponding management; import & export of goods and technologies; lease of houses and mechanical equipments. | ||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. (“Wuhan BOE”) | Hubei, China | Hubei, China | Investing, researching, manufacturing and promoting TFT-LCD products and accessory product; import & export of goods and technologies by proprietary trading or agency (excluding goods and technologies restricted by state or import & export prohibited); management consulting and service of company; lease of houses and mechanical equipments (excluding special approval). | 23.08% | 0.00% | Business combination not under the same control |
| Beijing BOE Yiyun Science &Technology Co., Ltd. (“Yiyun Technology”) | Beijing, China | Beijing, China | Technology development, technology transfer, technical consulting, technical services; technology intermediary services: data processing and store service (excluding bank card center in data processing, PUE over 1.5 in cloud computing data center); information system integration; basic software services; application software services; software development; sales of hardware & software of computer and auxiliary equipment, electronic products, hardware & electric material (excluding electric bicycle), photographic equipment, household | 95.92% | 0.00% | Business combination not under the same control |
| appliances, arts and crafts, sports products, daily necessities, clothes, furniture, ceramics, wood products, metalware, lanterns, glass products, paper products, stationery, cosmetics; import & export of goods; maintenance of computer and auxiliary equipment, household electronic products; lease of mechanical equipment; conference service; undertaking display and exhibition activities; advertisement designing, producing, agency and publishing; literary and artistic creation; organizing exchange activity of culture and art (excluding performance); identification of artware; operation of sports projects (excluding high-risk sports); ticket agency; internet information service; retail of publication; auction business; road freight transportation. | ||||||
| Mianyang BOE Optoelectronic Technology Co., Ltd. (“Mianyang BOE”) | Sichuan, China | Sichuan, China | Production of display panel for high-end smart phones, folding laptops etc. and R&D, production and sales of modules. | 78.35% | 0.00% | Business combination not under the same control |
| Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”) | Chongqing, China | Chongqing, China | Research, development, manufacture and sales of semiconductor display devices, machine and relevant products, import and export of goods and technical consulting (excluding goods and technologies restricted by state or import & export prohibited); development, transfer, consulting, service in related fields of display devices and module, other electronic components, and display devices and electronic products (excluding electronic publications); company management consulting; property management (excluding A quality property management); lease | 38.46% | 0.00% | Business combination not under the same control |
| of houses and mechanical equipments. | ||||||
| Beijing BOE Senor Technology Co., Ltd. (“Senor Technology”) | Beijing, China | Beijing, China | Development, testing, consulting, service and transfer of technologies in X-ray sensors, micro fluidic chips, biochemical chips, gene chips, security sensors, microwave antenna, biological sensors, internet of things, and modules, systems and equipment of other semiconducting sensors. | 100.00% | 0.00% | Investment |
| SES Imagotag SA Co.Ltd | Nanterre, France | Nanterre, France | Supports color electronic paper, segment LCD, TFT-LCD display, covering ESL multi-frequency protocol, Wi-Fi, BLE and NFC; multiple communication methods, integrated electronic paper supply chain resources and downstream software around electronic shelf labels Platform, image recognition and big data analytics resources to create a complete solution for the retail industry. | 0.00% | 73.93% | Business combination not under the same control |
| Fuzhou BOE Display Technology Co., Ltd. | Fuzhou, China | Fuzhou, China | Research, development, manufacture and sales of semiconductor display devices, machine and relevant products, import & export of goods and technical consulting; development, transfer, consulting, service in related fields of display devices and module, other electronic components, and display devices and electronic products; company management consulting; property management; lease of houses and mechanical equipments. | 65.77% | 0.00% | Investment |
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
NoneBasis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
The Company and the shareholder of Hefei Display, Hefei Core Screen Industrial Investment Fund (Limited Partnership) signed aconcerted action agreement on November 30, 2016, Hefei Core Screen Industrial Investment Fund (Limited Partnership) agreed toact as a concerted action according to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably in
accordance with the opinions of the Company. Therefore, the Company's voting right ratio to Hefei is 71.67%.The Company and shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone Industrial Development InvestmentGroup Co., Ltd. signed a concerted action agreement on December 25, 2018. Wuhan Airport Economic Development Zone IndustrialDevelopment Investment Group Co., Ltd. agreed to follow the Company's will to act as a concerted action, unconditionally andirrevocably exercising voting rights in accordance with the opinions of the company, the voting rights of the Company to WuhanBOE is 74.45%.The Company and shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry Equity Investment FundPartnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. signed a concerted actionagreement on December 25, 2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership)and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. agreed to act as a concerted action according to the will of theCompany, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore,the proportion of voting rights displayed by the Company on Chongqing BOE is 100%.Basis for the control over the significant structured entities included in the scope of combination:
NoneBasis for the determining the Company as the agent or the trustor:
NoneOther notes: None
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Shareholding proportion of non-controlling interests | The profit or loss attributable to non-controlling interests | Declaring dividends distributed to non-controlling interests | Ending balance of non-controlling interests |
| None |
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
NoneOther notes: None
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | |
| None | ||||||
(Continued)
| Name | Beginning balance | ||||||
| Current assets | Current assets | Non-current assets | Total assets | Current liability | Non-current liabilities | Total liabilities | |
| None |
Unit: RMB
| Name | Reporting Period | Same period of last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| None | ||||||||
Other notes:
None
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the Company
None
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope ofConsolidated Financial Statements
None
2. The Transaction Resulting in Changes in Owner’s Equity of Subsidiary but Still Controlling theSubsidiary
(1) Explanations on Changes in Owner’s Equity of Subsidiary
The Company increased its investment in Mianyang BOE of RMB150,000,000 in May 2019; non-controlling interests increased theinvestment in Mianyang BOE of RMB700,000,000. The Company held 81.35% of shares in Mianyang BOE before the capitalincrease and 78.35% of shares after the capital increase.The Company increased its investment in Wuhan BOE of RMB1,920,000,000.00 in January, March, May, June 2019 successively;non-controlling interests increased the investment in Wuhan BOE of RMB3,290,000,000.00. The Company held 14.58% of shares inWuhan BOE before the capital increase and 23.08% of shares after the capital increase.The Company increased its investment in Kunming Display of RMB467,200,000.00 in January, February, April, May 2019successively; non-controlling interests increased the investment in Kunming Display of RMB48,200,000.00. The Company held
45.11% of shares in Kunming Display before the capital increase and 69.43% of shares after the capital increase.
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of theCompany as the Parent
Unit: RMB
| Item | Mianyang BOE | Kunming BOE | Wuhan BOE |
| Purchase cost/disposal consideration | 150,000,000.00 | 467,200,000.00 | 1,920,000,000.00 |
| --Cash | 150,000,000.00 | 467,200,000.00 | 1,920,000,000.00 |
| --Fair value of non-cash assets | 0.00 | 0.00 | 0.00 |
| Total of purchase cost /disposal consideration | 150,000,000.00 | 467,200,000.00 | 1,920,000,000.00 |
| Less: Subsidiary net assets proportion calculated by share proportion obtained/disposal | 156,929,235.00 | 462,311,177.00 | 1,917,780,993.00 |
| Difference | -6,929,235.00 | 4,888,823.00 | 2,219,007.00 |
| Of which: Adjustment of capital reserves | 6,929,235.00 | -4,888,823.00 | -2,219,007.00 |
| Surplus reserves adjustments | 0.00 | 0.00 | 0.00 |
| Retained profits adjustments | 0.00 | 0.00 | 0.00 |
Other notes: None
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
| Name | Main business place | Registration place | Nature of business | Shareholding proportion | Accounting treatment to joint ventures or associated enterprise | |
| Directly | Indirectly | |||||
| None | ||||||
Notes that the shareholding percentage is different from the voting right percentage in joint ventures or associated enterprises:
NoneBasis that having significant influence with voting right less than 20% or that not having significant influence with voting right morethan 20%:
None
(2) Summary Financial Information of Insignificant Joint Ventures and Associated Enterprises
Unit: RMB
| Item | Ending balance/Reporting Period | Beginning balance/Same period of last year |
| Joint ventures: | -- | -- |
| Total carrying value of investment | 0.00 | 0.00 |
| Total of the following items calculated by shareholding proportion | -- | -- |
| --Net profit | 0.00 | -3,900,535.00 |
| --Other comprehensive income | 0.00 | 0.00 |
| --Total comprehensive income | 0.00 | -3,900,535.00 |
| Associated enterprises: | -- | -- |
| Total carrying value of investment | 2,625,460,926.00 | 2,389,166,886.00 |
| Total of the following items calculated by shareholding proportion | -- | -- |
| --Net profit | -16,571,961.00 | -25,678,044.00 |
| --Other comprehensive income | 175,947,500.00 | 4,151,942.00 |
| --Total comprehensive income | 159,375,539.00 | -21,526,102.00 |
Other notesNone
(3) Notes to the Significant Limitation on Capital Transfer to the Company by Joint Ventures or AssociatedEnterprisesNone
(4) Unrecognized Commitments Related to Investment in Joint VenturesNone
(5) Contingent Liabilities Related to Investment in Joint Ventures or Associated EnterprisesNone
4. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNone
5. Other
NoneX. The Risk Related to Financial InstrumentsRisks related to financial instruments in daily activities for the Group include:
- Credit risk- Liquidity risk- Interest rate risk- Foreign exchange risk- Other price risksThe risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methodsof measuring risks and changes in this year will be discussed below.Risk management objective of the Company is to balance therisks and profits, minimize the negative effects to business performance and maximize the profits for stockholders and other equityinvestors. On the basis of risk management objectives, basic strategies of risk management are to determine and analyze all possible
risks, establish appropriate risk baseline, control and manage risks and monitor all risks timely and reliably within defined scope. TheGroup will regularly review the risk management policies and internal control system to adapt to the market and changes of operatingactivities. The Internal Audit Department will regularly review or randomly inspect whether implementation of internal controlsystem satisfies risk management policies.
(1) Credit Risk
Credit risk refers to the risk of financial losses to one party of a financial instrument due to the failure of obligation performance bythe other party. The credit risk of the Group is mainly from accounts receivable. And the management will continue to monitor theexposure of these credit risks.The monetary capital of the Group except for cash is mainly deposited in financial institutions with good credit. The managementbelieves it has no material credit risks and will not cause losses to the Group due to the counterpart’s default.As for accounts receivable, the Group has worked out the credit policies based on actual situation to evaluate customers’ credit so asto decide the limit of sales on credit and credit period. The credit evaluation is conducted on the basis of a customer’s financialcondition, external rating and historical transaction records. The accounts receivable will expire within 15 to 120 days since the issuedate of account bills. The debtors of overdue accounts receivable will be required to pay off all outstanding balance before obtainingfurther credit lines. In general, the Group will not ask customers to offer any collateral.The credit risk of the Group is mainly influenced by characteristics of customers, not the industries, countries or regions they are in.Thus, the concentration of material credit risks is mainly generated from material accounts receivable of the Group from individualcustomers. On the balance sheet date, the accounts receivable of the Group and the Company from top five customers respectivelyaccount for 51.99% and 73.07% (in 2018: 40% and 0.06%) of total accounts receivable of the Group and the Company. What’s more,the accounts receivable of the Group not overdue and without impairment are mainly from customers without debt records recently.The maximum credit risk exposure born by the Group is the carrying amount of each financial asset in the balance sheet. As stated inNote XII, the Group has no external guarantee that will bring credit risks to the Group as of 30 June 2019.
(2) Liquidity Risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled by delivering cash oranother financial asset. The Company and its individual subsidiaries are responsible for their own cash management, includingshort-term investment of cash surpluses and the raising of loans to cover expected cash demands (subject to approval by theCompany’s board when the borrowings exceed certain predetermined levels). The Group’s policy is to regularly monitor its liquidityrequirements and its compliance with lending covenants, to ensure that it maintains sufficient reserves of cash, readily realisablemarketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements inthe short and longer term.
(3) Interest Rate Risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fairvalue interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearinginstruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix offixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interest rate risk.As at 30 June 2019, it is estimated that a general increase/decrease of 100 basis points in interest rates of variable rate instrument,with all other variables held constant, would decrease/increase the Group’s net profit and equity by RMB81.15 million （2018:
RMB104.38 million).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at thebalance sheet date, the impact on the net profit and equity is estimated as an annualised impact on interest expense or income of sucha change in interest rates. The analysis is performed on the same basis for the previous year.
(4) Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans and other assets and liabilities denominatedin foreign currencies other than the functional currency, the Group ensures that its net exposure is kept to an acceptable level bybuying or selling foreign currencies at spot rates when necessary to address short-term imbalances.(a) The Group’s exposure as at 30 June to currency risk arising from recognized foreign currency assets or liabilities is mainlydenominated in US dollar. The amount of the USD exposure is net liabilities exposure USD 2,140,890,803 (2018 net liabilitiesexposure: USD 2,098,686,634), translated into RMB 14,717,982,001 (2018: RMB 14,403,706,106), using the spot rate at the balancesheet date. Differences resulting from the translation of the financial statements denominated in foreign currency are excluded.(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening of the Renminbi against the US dollar at 30June would have increased / decreased both the Group’s equity and net profit by the amount RMB 460,553,954 (2018: RMB506,911,356).The sensitivity analysis above assumes that the change in foreign exchange rates had been applied to re-measure those financialinstruments held by the Group which expose the Group to foreign currency risk at the balance sheet date. The analysis excludesdifferences that would result from the translation of the financial statements denominated in foreign currency. The analysis isperformed on the same basis for the previous year.
(5) Other Price Risks Include Equity Price Risk, Commodity Price Risk, etc.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (I) Trading financial assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Financial assets at fair value through profit or loss | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 3,932,990,942.00 | 3,932,990,942.00 |
| (2) Equity instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (3) Derivative financial | 0.00 | 0.00 | 0.00 | 0.00 |
| assets | ||||
| 2. Financial assets assigned measured by fair value and the changes be included in the current gains and losses | 0.00 | 0.00 | 13,757,311.00 | 13,757,311.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 13,757,311.00 | 13,757,311.00 |
| (2) Equity instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (II) Other creditors’ investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (III) Other equity instrument investment | 356,721,284.00 | 0.00 | 0.00 | 356,721,284.00 |
| (IV) Investment property | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Lease the land use right | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Rental buildings | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Land use right held and prepared to transfer after appreciation | 0.00 | 0.00 | 0.00 | 0.00 |
| (V)Biological assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Consumable biological assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 |
| Total assets of consistent fair value measurement | 356,721,284.00 | 0.00 | 0.00 | 356,721,284.00 |
| (VI) Trading financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 |
| Of which: Tradable bond issued | 0.00 | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 |
| Other | 0.00 | 0.00 | 0.00 | 0.00 |
| (VII) Refer as financial liabilities measured by fair value and the changes included in the current gains and losses | 0.00 | 0.00 | 71,000,000.00 | 71,000,000.00 |
| Total liabilities of | 0.00 | 0.00 | 71,000,000.00 | 71,000,000.00 |
| consistent fair value measurement | ||||
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
| (I) Held-for-sale assets | 0.00 | 0.00 | 0.00 | 0.00 |
| Total assets inconsistently measured at fair value | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities inconsistent measured at fair value | 0.00 | 0.00 | 0.00 | 0.00 |
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,the Qualitative and Quantitative Information of Important ParametersThe unobservable input value of related assets or liabilities
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning CarryingValue and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
None
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different Level
None
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the ChangesNone
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair ValueNone
9. Other
None
XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
| Name | Registration place | Nature of business | Registered capital | Proportion of share held by the Company as the parent against the Company (%) | Proportion of voting rights owned by the Company as the parent against the Company (%) |
| Beijing Electronics Holding Co., Ltd. | No.12 Jiuxian Bridge, Zhaoyang District, Beijing | Operation and management of state-owned assets within authorization | RMB2,418,350,000.00 | 0.79% | 11.32% |
Notes to the Company as the parent:
NoneThe final controller of the Company is Beijing Electronics Holding Co., Ltd.Other notes: None
2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the CompanyFor information of significant joint ventures or associated enterprises of the Company, please refer to Note IX-3.List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance duringor before the Reporting Period:
| Name | Relationship with the Company |
| Beijing Nittan Electronic Co., Ltd. | Associated enterprise of the Group and the Company |
| TPV Display Technology (China) Limited | Associated enterprise of the Group and the Company |
| Beijing Rishen Electronic Precision Parts Co., Ltd. | Associated enterprise of the Group and the Company |
Other notes:
None
4. Information on Other Connected Parties
| Name | Relationship with the Company |
| Beijing BOE Investment Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Sevenstar Huadian Technology Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing BOE Investment Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Dongdian Industrial Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Yansong Trading Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing North Microelectronics Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhaowei Technology Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhaowei Intelligent Equipment Co., Ltd. | Controlled by the same ultimate holding company |
| Xin Xiang Microelectronic (Hong Kong) Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Ether Electronics Group Co., Ltd. | Controlled by the same ultimate holding company |
| BAIC BJEV | Other connected party |
| China United Network Communications Limited | Other connected party |
Other notesNone
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor ServiceInformation on acquisition of goods and reception of labor service
Unit: RMB
| Connected party | Content | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Purchase of goods | 299,540,011.00 | 600,000,000.00 | No | 226,147,968.00 |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Accepting labor service | 1,453,989.00 | 8,000,000.00 | No | 1,887,192.00 |
| Other connected party | Purchase of goods | 0.00 | 130,000,000.00 | No | 7,719,867.00 |
| Other connected party | Accepting labor | 1,292,600.00 | 5,000,000.00 | No | 0.00 |
Information of sales of goods and provision of labor service
Unit: RMB
service
Connected party
| Connected party | Content | Reporting Period | Same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Sales of goods | 265,677.00 | 403,808.00 |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Providing labor service | 383,744.00 | 45,745.00 |
| Other connected party | Sales of goods | 315,673.00 | 3,239,373.00 |
| Other connected party | Providing labor service | 32,781.00 | 6,253,228.00 |
Notes: None
(2) Connected Trusteeship/Contract and Entrust/Contractee
Lists of connected trusteeship/contract:
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in the Reporting Period |
| None |
Notes: NoneLists of entrust/contractee
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in the Reporting Period |
| None |
Notes:
None
(3) Information on Connected Lease
The Company served as the lessor:
Unit: RMB
| Name of lessee | Category of leased assets | The lease income confirmed in the Reporting Period | The lease income confirmed in the same period of last year |
| Beijing Electronics Holding Co., Ltd and its | Investment property | 21,164.00 | 757,937.00 |
The Company served as the lessee:
Unit: RMB
affiliated companies
Name of lessor
| Name of lessor | Category of leased assets | The lease income confirmed in the Reporting Period | The lease income confirmed in the Same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Fixed assets | 1,445,383.00 | 1,218,031.00 |
Notes to connected lease: None
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
| Secured party | Amount | Start date | Due date | Whether completely performed |
| None |
The Company served as the secured party
Unit: RMB
| Guarantee | Amount | Start date | Due date | Whether completely performed |
| None |
Notes to connected guarantee: None
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
| Connected party | Amount | Start date | Due date | Note |
| Borrowings | ||||
| None | ||||
| Lending | ||||
| None | ||||
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
| Connected party | Content | Reporting Period | Same period of last year |
| None |
(7) Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Remuneration for key management personnel | 26,153,302.00 | 50,069,577.00 |
(8) Other Connected Transactions
None
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
| Item | Connected party | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Accounts receivable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 232,242.00 | 0.00 | 18,982.00 | 0.00 |
| Prepayment | Beijing Electronics Holding Co., Ltd and its affiliated companies | 1,142,210.00 | 0.00 | 2,814,000.00 | 0.00 |
| Accounts receivable | Other connected parties | 205,957.00 | 0.00 | 33,264.00 | 0.00 |
| Other accounts receivable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 12,148.00 | 0.00 | 12,148.00 | 0.00 |
| Prepayment | Other connected parties | 1,054,527.00 | 0.00 | 0.00 | 0.00 |
(2) Accounts Payable
Unit: RMB
| Item | Connected party | Ending carrying balance | Beginning carrying balance |
| Accounts payable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 29,895,259.00 | 25,736,668.00 |
| Other accounts payable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 237,097,543.00 | 294,453,309.00 |
| Advances from | Beijing Electronics Holding Co., Ltd and its | 10,679.00 | 1,111.00 |
| customers | affiliated companies | ||
| Accounts payable | Other connected parties | 2,456,725.00 | 4,625,142.00 |
| Other accounts payable | Other connected parties | 91,479.00 | 116,479.00 |
7. Commitments of Connected Party
Signed commitments in relation to related parties on the balance sheet date that didn’t need to be presented on the balance sheet:
| Item | 2019 | 2018 |
| Equipment purchase commitment | 327,370,768.00 | 370,768,209.00 |
8. Other
None
XIII. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
(1) Capital Commitments
| The Group | 30 June 2019 | 31 December 2018 |
| Signed but not performed | 71,517,184,458.00 | 61,515,573,632.00 |
| Approved but contract unsigned | 94,709,082,722.00 | 84,789,129,465.00 |
| Total | 166,226,267,180.00 | 146,304,703,097.00 |
| The Company | 30 June 2019 | 31 December 2018 |
| Signed but not performed | 44,326,641,398.00 | 39,666,849,756.00 |
| Approved but contract unsigned | 0.00 | 0.00 |
| Total | 44,326,641,398.00 | 39,666,849,756.00 |
(2) Operating Commitments
| The Group | 30 June 2019 | 31 December 2018 |
| Within 1 year (including 1 year) | 52,839,746.00 | 53,187,055.00 |
| Over 1 year and within 2 years (including 2 years) | 24,811,029.00 | 30,220,405.00 |
| Over 2 years and within 3 years (including 3 years) | 23,708,000.00 | 21,345,206.00 |
| Over 3 years | 60,190,211.00 | 82,499,050.00 |
| Total | 161,548,986.00 | 187,251,716.00 |
2. Contingency
(1) Significant Contingency on the Balance Sheet Date
None
(2) Explanations Should Also Be Given when there Was No Significant Contingency to Disclose
There was no significant contingency to disclose.
3. Other
None
XIV. Other Significant Events
1. Pension Plans
In order to ensure and improve the living standards of BOE retirees and put in place a multi-layer old-age security system and along-term talent retaining mechanism, as per China’s relevant policies and regulations, BOE has established the annuity programmesince January 2014. The annuity fund consists of the contributions by the Company (paid as per the government’s regulationsaccording to the applicable taxation policy), the contributions by employees (deducted by the Company from their salaries accordingto the applicable taxation policy) and the returns on investment by the fund (operated by the relevant government departmentaccording to the investment principle of high security and moderate income). Currently, the Company pays 5% of an employee’sannuity contribution to the fund. 2,627 employees have so far participated in the annuity programme with an accumulative net assetvalue of RMB177.71 million and an average annualized rate of return of 4.49%.
2. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting Considerations
The Group principal decision-makers review the operation performance and distribute resources in accordance to the businesssegments below.(a) Display and Sensor Devices — This business mainly leading the innovation and development of TFT-LCD technologies, has beencommitted to speeding up the development of AMOLED, flexible display, VR/AR and other new display devices and sensors,promoting the development of gene sequencing, molecular antenna, multi-sign sensor, photoelectric sensing, fingerprintidentification and security, and upgrading information exchange ports and related sensors on the basis of the display, so as to offerbetter products and services in smart phones, tablet PCs, laptops, displays, televisions, industrial control, health care, VR/AR and
other applications.(b) Smart systems — This business mainly expanding its business in digital art exhibition, supermarket retailing services, financialretailing services, smart equipment design and manufacturing services, photovoltaic facilities construction and operation &maintenance, vehicle-based display and Internet of Vehicles (IoV). It provides smart solutions for smart retailing, smart manufacturingservices, smart energy and smart Internet of Vehicles.(c) Healthcare service — This business mainly accumulate the display, sensor, artificial intelligence and large data four years coretechnology and medicine, life science combination, the integration of medical innovation, build, including artificial intelligence, lifedata detection, cell engineering, medical technology innovation transformation And other innovative technology platform, focusingon the development of mobile health, digital hospitals, regenerative medicine and health park four business, for human health toprovide intelligent port products and professional services.(d) Others — Other service mainly includes technical development service and patent maintenance service.The main reason to separate the segments is that the Group independently manages the port devices business, the smart IoT business,and healthcare service businesses and other businesses. Because the business segments manufacture and distribute different products,apply different manufacturing processes and specifies in gross profit, the business segments are managed independently. Themanagement evaluates the performance and allocates resources according to the profit of each business segment and does not takefinancing cost and investment income into account
(2) Accounting policy for the measurements of segment profit or loss, assets and liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s management regularlyreviews the assets, liabilities, revenue, expenses and financial performance, attributable to each reportable segment on the followingbases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exceptionof deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank borrowings and otherlong-term liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporateliabilities.Financial performance is operating income (including operating income from external customers and inter-segment operating income)after deducting expenses, depreciation, amortization, impairment losses, gains or losses from changes in fair value, investment gain,non-operating income and expenses and income tax expenses attributable to the individual segments. The transfer pricing ofinter-segment sales are determined with reference to prices charged to external parties for similar orders.
(2) The Financial Information of Reportable Segment
Unit: RMB
| Item | Display and Sensor Devices | Smart systems | Healthcare service | Others | Offset among segments | Total |
| Operation revenue | 50,896,645,297.00 | 7,521,943,172.00 | 663,753,643.00 | 3,567,353,945.00 | -7,610,487,370.00 | 55,039,208,687.00 |
| Cost of sales | 42,975,736,712.00 | 6,831,554,480.00 | 322,726,810.00 | 4,206,107.00 | -4,321,890,878.00 | 45,812,333,231.00 |
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable Segment Could not Be Reported, RelevantReasons Shall Be Clearly StatedNone
(4)Other Notes
None
3. Other Significant Transactions with Influence on Investors’ Decision-making
None
4. Other
None
XV. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Of which: | ||||||||||
| Accounts receivable withdrawn bad debt provision by group | 909,239,939.00 | 100.00% | 5,799,220.00 | 1.00% | 903,440,719.00 | 39,842,489.00 | 100.00% | 2,889,866.00 | 7.00% | 36,952,623.00 |
| Of which: | ||||||||||
| Total | 909,239,939.00 | 100.00% | 5,799,220.00 | 1.00% | 903,440,719.00 | 39,842,489.00 | 100.00% | 2,889,866.00 | 7.00% | 36,952,623.00 |
Bad Debt Provision Withdrawn by Single Item:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdrawal | |
| None | ||||
| Total | -- | -- | ||
Bad Debt Provision Withdrawn by Group:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Portfolio of credit risk | 909,239,939.00 | 5,799,220.00 | 1.00% |
| Total | 909,239,939.00 | 5,799,220.00 | -- |
Notes of the basis of recognizing the group:
NonePlease refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of notes receivable.
√Applicable □ Not applicable
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2019 | 0.00 | 0.00 | 2,889,866.00 | 2,889,866.00 |
| Balance of 1 January 2019 in the current period | —— | —— | —— | —— |
| --Transfer to Second stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Transfer to Third stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Reverse to Second stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Reverse to Third stage | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawal of the current period | 0.00 | 774.00 | 2,908,580.00 | 2,909,354.00 |
| Reversal of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| Write-offs of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| Verification of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| Other changes | 0.00 | 0.00 | 0.00 | 0.00 |
| Balance of 30 June 2019 | 0.00 | 774.00 | 5,798,446.00 | 5,799,220.00 |
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 808,566,868.00 |
| 1 to 2 years | 83,234,894.00 |
| 2 to 3 years | 0.00 |
| Over 3 years | 17,438,177.00 |
| Total | 909,239,939.00 |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB2,909,354.00; there is no reversed orcollected amount during the Reporting Period.
(3) Accounts Receivable with Actual Verification during the Reporting PeriodNone
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
The total amount of top 5 accounts receivable in ending balance was RMB 664,369,915.00, accounting 73.07% in ending balance ofaccounts receivable without withdrawing bad debt by evaluation.
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
None
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement ofAccounts ReceivableNone
2. Other Accounts Receivable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Interest receivable | 9,216,577.00 | 9,659,279.00 |
| Dividend receivable | 10,874,738.00 | 14,115,915.00 |
| Other accounts receivable | 3,130,653,415.00 | 1,992,044,350.00 |
| Total | 3,150,744,730.00 | 2,015,819,544.00 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Fixed time deposit | 9,216,577.00 | 9,659,279.00 |
| Entrusted loan | 0.00 | 0.00 |
| Bond investment | 0.00 | 0.00 |
| Total | 9,216,577.00 | 9,659,279.00 |
2) Significant Overdue Interest
| Borrower | Ending balance | Overdue time | Reason | Whether occurred impairment and its judgment basis |
| None |
Other notes:
None
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
| Item(or investee) | Ending balance | Beginning balance |
| Beijing BOE Vacuum Electronics Co., Ltd. | 2,200,000.00 | 2,200,000.00 |
| Beijing Yinghe Century Co., Ltd. | 8,204,147.00 | 8,204,147.00 |
| Beijing Electronic City Co., Ltd. | 0.00 | 3,711,768.00 |
| TPV Technology Co., Ltd. | 470,591.00 | 0.00 |
| Total | 10,874,738.00 | 14,115,915.00 |
2) Significant Dividend Receivable Aging Over One Year
Unit: RMB
| Item(or investee) | Ending balance | Aging | Unrecovered reason | Whether occurred impairment and its judgment basis |
| None |
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
None
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Intercourse funds | 2,832,468,418.00 | 305,938,861.00 |
| Rent receivable | 14,979,329.00 | 227,919,843.00 |
| Royalty receivable | 183,977,983.00 | 1,441,130,049.00 |
| Other | 103,371,649.00 | 17,064,513.00 |
| Total | 3,134,797,379.00 | 1,992,053,266.00 |
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2019 | 0.00 | 8,916.00 | 0.00 | 8,916.00 |
| Balance of 1 January 2019 in the current period | —— | —— | —— | —— |
| --Transfer to Second stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Transfer to Third stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Reverse to Second stage | 0.00 | 0.00 | 0.00 | 0.00 |
| -- Reverse to Third stage | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawal of the current period | 0.00 | 30,905.00 | 4,104,234.00 | 4,135,139.00 |
| Reversal of the current period | 0.00 | 0.00 | 91.00 | 91.00 |
| Write-offs of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| Verification of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| Other changes | 0.00 | 0.00 | 0.00 | 0.00 |
| Balance of 30 June 2019 | 0.00 | 39,730.00 | 4,104,234.00 | 4,143,964.00 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year） | 2,805,740,314.00 |
| 1 to 2 years | 83,099,394.00 |
| 2 to 3 years | 18,968,330.00 |
| Over 3 years | 226,989,341.00 |
| Total | 3,134,797,379.00 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The bad debt provision withdrawn in the Current Period was RMB4,135,139.00 and the bad debt provision recovered or reversed inthe Reporting Period was RMB91.00.
4) Other Accounts Receivable with Actual Verification during the Reporting Period
None
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to total ending balance of other accounts receivable | Ending balance of bad debt provision |
| Customer 1 | Intercourse funds | 1,057,322,258.00 | Within 1 year, over 5 years | 33.73% | 0.00 |
| Customer 2 | Intercourse funds | 792,916,546.00 | Within 1 year,1 to 2 years, 2 to 3 years | 25.29% | 0.00 |
| Customer 3 | Intercourse funds | 401,301,353.00 | Within 1 year | 12.80% | 0.00 |
| Customer 4 | Intercourse funds | 391,405,909.00 | Within 1 year | 12.49% | 0.00 |
| Customer 5 | Intercourse funds | 189,779,388.00 | Within 1 year, over 5 years | 6.05% | 0.00 |
| Total | -- | 2,832,725,454.00 | -- | 90.36% | 0.00 |
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
| Name of the entity | Project of government subsidies | Ending balance | Ending aging | Estimated recovering time, amount and basis |
| None |
None
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
None
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued InvolvementNoneOther notes:
None
3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserve | Carrying value | Carrying amount | Depreciation reserve | Carrying value | |
| Investment to subsidiaries | 145,727,705,023.00 | 60,000,000.00 | 145,667,705,023.00 | 141,883,775,023.00 | 60,000,000.00 | 141,823,775,023.00 |
| Investment to joint ventures and associated enterprises | 1,911,717,052.00 | 0.00 | 1,911,717,052.00 | 1,675,958,462.00 | 0.00 | 1,675,958,462.00 |
| Total | 147,639,422,075.00 | 60,000,000.00 | 147,579,422,075.00 | 143,559,733,485.00 | 60,000,000.00 | 143,499,733,485.00 |
(1) Investment to Subsidiaries
Unit: RMB
| Investee | Beginning balance | Increase | Decrease | Ending balance | Depreciation reserve withdrawn | Ending balance of depreciation reserve |
| Beijing BOE Semiconductor Co., Ltd. | 9,450,000.00 | 0.00 | 0.00 | 9,450,000.00 | 0.00 | 0.00 |
| Beijing Yinghe Century Co., Ltd. | 333,037,433.00 | 0.00 | 0.00 | 333,037,433.00 | 0.00 | 0.00 |
| Beijing BOE Land Co., Ltd. | 7,731,474.00 | 0.00 | 0.00 | 7,731,474.00 | 0.00 | 0.00 |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,353,651,020.00 | 0.00 | 0.00 | 1,353,651,020.00 | 0.00 | 0.00 |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 31,038,525.00 | 0.00 | 0.00 | 31,038,525.00 | 0.00 | 0.00 |
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,250,000.00 | 0.00 | 0.00 | 19,250,000.00 | 0.00 | 0.00 |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000.00 | 0.00 | 0.00 | 32,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,172,288,084.00 | 0.00 | 0.00 | 4,172,288,084.00 | 0.00 | 0.00 |
| Beijing BOE Special Display Technology Co., Ltd. | 40,000,000.00 | 0.00 | 0.00 | 40,000,000.00 | 0.00 | 60,000,000.00 |
| BOE Optoelectronics Technology Co., Ltd. | 658,961,914.00 | 0.00 | 0.00 | 658,961,914.00 | 0.00 | 0.00 |
| BOE Marketing Co., Ltd. | 30,500,000.00 | 0.00 | 0.00 | 30,500,000.00 | 0.00 | 0.00 |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 19,283,149,991.00 | 760,000,000.00 | 0.00 | 20,043,149,991.00 | 0.00 | 0.00 |
| Beijing Asahi Electronic Material Co., Ltd. | 30,888,470.00 | 0.00 | 0.00 | 30,888,470.00 | 0.00 | 0.00 |
| BOE (Korea) Co., Ltd. | 788,450.00 | 0.00 | 0.00 | 788,450.00 | 0.00 | 0.00 |
| Beijing BOE Optoelectronics Holding Co., Ltd. | 2,768,662,024.00 | 0.00 | 0.00 | 2,768,662,024.00 | 0.00 | 0.00 |
| Beijing BOE Display Technology Co., Ltd. | 17,418,713,599.00 | 0.00 | 0.00 | 17,418,713,599.00 | 0.00 | 0.00 |
| Beijing BOE Energy Technology Co., Ltd. | 850,000,000.00 | 0.00 | 0.00 | 850,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Multimedia Technology Co. Ltd. | 400,000,000.00 | 0.00 | 0.00 | 400,000,000.00 | 0.00 | 0.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,000,000,000.00 | 0.00 | 0.00 | 9,000,000,000.00 | 0.00 | 0.00 |
| Beijing?Matsushita Color CRT Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Beijing BOE Video Technology Co., Ltd. | 3,020,000,000.00 | 220,000,000.00 | 0.00 | 3,240,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Smart Commerce Co., Ltd. | 10,000,000.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 | 0.00 |
| Beijing Zhongxiangying Technology Co., Ltd. | 10,000,000.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 | 0.00 |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,804,000,000.00 | 0.00 | 0.00 | 11,804,000,000.00 | 0.00 | 0.00 |
| Ordos Haosheng Energy Investment Co., Ltd. | 2,000,000.00 | 0.00 | 0.00 | 2,000,000.00 | 0.00 | 0.00 |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 16,575,150,000.00 | 0.00 | 0.00 | 16,575,150,000.00 | 0.00 | 0.00 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 19,565,354,599.00 | 0.00 | 0.00 | 19,565,354,599.00 | 0.00 | 0.00 |
| Hefei BOE Display Technology Co., Ltd. | 1,998,765,323.00 | 0.00 | 0.00 | 1,998,765,323.00 | 0.00 | 0.00 |
| Fuzhou BOE Optoelectronic Technology Co., Ltd. | 14,300,042,079.00 | 0.00 | 0.00 | 14,300,042,079.00 | 0.00 | 0.00 |
| BOE Healthcare Co., Ltd. | 1,743,154,069.00 | 275,000,000.00 | 0.00 | 2,018,154,069.00 | 0.00 | 0.00 |
| Intelligent Technology | 50,000,000.00 | 30,000,000.00 | 0.00 | 80,000,000.00 | 0.00 | 0.00 |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 600,000,000.00 | 0.00 | 0.00 | 600,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Technology Development Co., Ltd. | 1,000,000.00 | 0.00 | 0.00 | 1,000,000.00 | 0.00 | 0.00 |
| Kunming BOE Display Technology Co., Ltd. | 202,800,000.00 | 467,200,000.00 | 0.00 | 670,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Sensor Technology Co., Ltd. | 50,000,000.00 | 0.00 | 0.00 | 50,000,000.00 | 0.00 | 0.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 13,936,980,083.00 | 150,000,000.00 | 0.00 | 14,086,980,083.00 | 0.00 | 0.00 |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 1,230,860,516.00 | 1,920,000,000.00 | 0.00 | 3,150,860,516.00 | 0.00 | 0.00 |
| Beijing BOE Yiyun Technology Co., Ltd. | 90,000,000.00 | 0.00 | 0.00 | 90,000,000.00 | 0.00 | 0.00 |
| Chongqing BOE Display Technology Co., Ltd. | 193,557,370.00 | 0.00 | 0.00 | 193,557,370.00 | 0.00 | 0.00 |
| Fuzhou BOE Display Technology Co., Ltd. | 0.00 | 21,730,000.00 | 0.00 | 21,730,000.00 | 0.00 | 0.00 |
| Total | 141,823,775,023.00 | 3,843,930,000.00 | 0.00 | 145,667,705,023.00 | 0.00 | 60,000,000.00 |
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| The investor | Beginning balance | Increase/decrease | Ending balance | Ending balance for impairment provisions | |||||||
| Additional investments | Reduced investments | Profit and loss on investments confirmed according to equity law | Adjustment of other comprehensive income | Changes in other equity | Cash, dividends and profits declared to issue | Impairment provisions | Other | ||||
| I. Joint ventures | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision | 538,489.00 | 0.00 | 0.00 | -534,864.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,625.00 | 0.00 |
| Component Co., Ltd. (Nissin Electronics ) | |||||||||||
| Beijing Nittan Electronic Co., Ltd. (Nittan Electronics) | 61,733,085.00 | 0.00 | 0.00 | 2,152,314.00 | 0.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 60,885,399.00 | 0.00 |
| Beijing Yingfei Hailin Venture Capital Management Co., Ltd.(Yingfei Hailin) | 435,828.00 | 0.00 | 0.00 | -435,828.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Ordos BOE Energy Investment Co., Ltd. (BOE Energy Investment) | 9,458,312.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 9,458,312.00 | 0.00 |
| Beijing Fly Hailin Investment Center | 82,336,933.00 | 0.00 | 0.00 | -332,938.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 82,003,995.00 | 0.00 |
| TPV Display Technology (China) Limited | 23,001,359.00 | 0.00 | 0.00 | -2,258,314.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 20,743,045.00 | 0.00 |
| Beijing Xindong Neng Investment Fund (LLP) | 1,455,174,877.00 | 0.00 | 37,081,499.00 | -7,203,989.00 | 175,359,777.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,586,249,166.00 | 0.00 |
| Beijing Xindong Neng Investment Management Co., Ltd. | 5,188,862.00 | 0.00 | 0.00 | 987,022.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6,175,884.00 | 0.00 |
| Shenzhen | 15,481,506.00 | 0.00 | 0.00 | -8,660,243.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6,821,263.00 | 0.00 |
| Yunyinggu Technology Co., Ltd. | |||||||||||
| Beijing XLOONG Technology Co., Ltd. | 22,609,211.00 | 0.00 | 0.00 | -232,848.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 22,376,363.00 | 0.00 |
| Beijing Innovation Industry Investment Co., Ltd. | 0.00 | 100,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 100,000,000.00 | 0.00 |
| Beijing Electronic Control Industry Investment Co., Ltd. | 0.00 | 17,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 17,000,000.00 | 0.00 |
| Subtotal | 1,675,958,462.00 | 117,000,000.00 | 37,081,499.00 | -16,519,688.00 | 175,359,777.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 1,911,717,052.00 | 0.00 |
| Total | 1,675,958,462.00 | 117,000,000.00 | 37,081,499.00 | -16,519,688.00 | 175,359,777.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 1,911,717,052.00 | 0.00 |
(3) Other Notes
None
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 2,864,081,627.00 | 3,942,511.00 | 0.00 | 0.00 |
| Other operations | 25,614,205.00 | 5,284,077.00 | 2,146,860,956.00 | 12,786,733.00 |
| Total | 2,889,695,832.00 | 9,226,588.00 | 2,146,860,956.00 | 12,786,733.00 |
Whether the Company has executed the new income standards
□ Yes √ No
Other notes:
None
5. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by cost method | 806,360,000.00 | 900,000,000.00 |
| Long-term equity investment income accounted by equity method | -16,519,688.00 | -17,602,562.00 |
| Investment income arising from disposal of long-term equity investments | 0.00 | 0.00 |
| Investment income arising from disposal of trading financial assets | 0.00 | 0.00 |
| Investment income received from holding of other equity instrument investment | 2,353,967.00 | 2,071,592.00 |
| Investment income of held-to-maturity investment during holding period | 0.00 | 0.00 |
| Investment income received from holding of available-for-sale financial assets | 0.00 | 0.00 |
| Investment income received from disposal of available-for-sale financial assets | 0.00 | 0.00 |
| Investment income from disposal of held-to-maturity investment | 0.00 | 0.00 |
| After losing control, gains from re-measurement of residual shares at fair value | 0.00 | 0.00 |
| Interest income of creditors’ investment during holding | 0.00 | 0.00 |
| period | ||
| Interest income of other creditors’ investment during holding period | 0.00 | 0.00 |
| Investment income from disposal of other creditors’ investment | 0.00 | 0.00 |
| Total | 792,194,279.00 | 884,469,030.00 |
6. Other
NoneXVI. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Explanation |
| Gains/losses on the disposal of non-current assets | -672,378.00 | Naught |
| Tax rebates, reductions or exemptions due to approval beyond authority or the lack of official approval documents | 0.00 | Naught |
| Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the government’s unified standards | 1,152,320,986.00 | Naught |
| Capital occupation charges on non-financial enterprises that are recorded into current gains and losses | 0.00 | Naught |
| Gains due to that the investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the enjoyable fair value of the identifiable net assets of the investees when making the investments | 0.00 | Naught |
| Gain/loss on non-monetary asset swap | 0.00 | Naught |
| Gain/loss on entrusting others with investments or asset management | 0.00 | Naught |
| Asset impairment provisions due to acts of God such as natural disasters | 0.00 | Naught |
| Gains and losses from debt restructuring | 0.00 | Naught |
| Expenses on business reorganization, such as expenses on staff arrangements, integration, etc. | 0.00 | Naught |
| Gain/loss on the part over the fair value due to transactions with distinctly unfair prices | 0.00 | Naught |
| Current net gains and losses of subsidiaries acquired in business combination under the same control from period-begin to combination date | 0.00 | Naught |
| Profit and loss from contingencies irrelative to the normal business operations of | 0.00 | Naught |
| company | ||
| Gain/loss from change of fair value of trading assets and liabilities, and derivative financial assets and liabilities, and investment gains from disposal of trading financial assets and liabilities and derivative financial assets and liabilities, and other creditors’ investment, other than valid hedging related to the Company’s common businesses | 79,628,679.00 | Naught |
| Depreciation reserves returns of receivables with separate depreciation test | 701,302.00 | Naught |
| Gain/loss on entrustment loans | 0.00 | Naught |
| Gain/loss on change of the fair value of investing real estate of which the subsequent measurement is carried out adopting the fair value method | 0.00 | Naught |
| Effect on current gains/losses when a one-off adjustment is made to current gains/losses according to requirements of taxation, accounting and other relevant laws and regulations | 0.00 | Naught |
| Custody fee income when entrusted with operation | 0.00 | Naught |
| Other non-operating income and expense other than the above | 51,173,190.00 | Naught |
| Project confirmed with the definition of non-recurring gains and losses and losses | 0.00 | Naught |
| Less: Income tax effects | 70,992,401.00 | Naught |
| Non-controlling interests effects | 195,201,363.00 | Naught |
| Total | 1,016,958,015.00 | -- |
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit orLoss, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average ROE (%) | EPS (Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 1.92% | 0.048 | 0.048 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | 0.75% | 0.019 | 0.019 |
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under Internationaland Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas andChinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and OverseasAccounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by theForeign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly StatedNone
4. Other
None
Part XI 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); and(II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod.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: 23
rd
August 2019