INTERIM REPORT 2023
August 2023
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. YangXiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department(equivalent to financial manager) hereby guarantee that the Financial Statements carried inthis Report are factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report andits summary.Any plans for the future, development strategies and other forward-looking statementsmentioned in this Report and its summary shall NOT be considered as absolute promises of theCompany to investors. Therefore, investors are reminded to exercise caution when makinginvestment decisions. For further information, see “(X) Risks Facing the Company andCountermeasures” in Part III herein.The Company has no interim dividend plan, either in the form of cash or stock.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 versions shallprevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 10
Part IV Corporate Governance ...... 27
Part V Environmental and Social Responsibility ...... 29
Part VI Significant Events ...... 34
Part VII Share Changes and Shareholder Information ...... 46
Part VIII Preferred Shares ...... 54
Part IX Bonds ...... 55
Part X Financial Statements ...... 58
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:
25 August 2023
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| 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 |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| Microdisplay | Microdisplay technology |
| VR/AR | Virtual Reality /Augmented Reality |
| IoT | Internet of Things |
| X-ray | A type of radiation that can pass through objects that are not transparent and make it possible to see inside them |
| MEMS | Micro-Electro-Mechanical System |
| MLED | Mini/Micro LED |
| Mini/Micro LED | Submillimeter/Micro Light Emitting Diode |
| DMS | Driver Monitor System |
| LCD | Liquid Crystal Display |
| NB | Notebook |
| TV | Television |
| OLED | Organic Light Emitting Diode |
| UB Cell | BOE’s homegrown display technology, with multiple competitive edges such as Ultra Black, Ultra Brightness and Ultra Brilliance |
| Gaming | Gaming monitor |
| Oxide | A compound of oxygen and another chemical element |
| QHD | Quad High Definition (2560 x 1440) |
| SID | The Society for Information Display |
| COE | Colorfilter On Encapsulation |
| LTPO | Low Temperature Polycrystalline Oxide |
| CDIA | China Display Industry Award |
| IFI | IFI Claims |
| WIPO | World Intellectual Property Organization |
| PCT | Patent Cooperation Treaty |
| ITU | International Telecommunication Union |
| P2P | Peer-to-peer |
| H.629.1 | Standard H.629.1: Scenarios, Framework and Metadata for Digitalized Artwork Images Display System approved by the International Telecommunication Union |
| IDTRE | Integration of digital technologies and the real economy |
Part II Corporate Information and Key Financial Information
I 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 | Luo Wenjie |
| Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, Beijing, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, Beijing, P.R.China |
| Tel. | 010-64318888 ext. | 010-64318888 ext. |
| Fax | 010-64366264 | 010-64366264 |
| Email address | liuhongfeng@boe.com.cn | luowenjie@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, emailaddress and other contact information of the Company in the Reporting Period.? Applicable □ Not applicable
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China |
| Zip code | 100015 |
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, Beijing, P.R.China |
| Zip code | 100176 |
| Company website | www.boe.com |
| Email address | ir@boe.com.cn |
| Date when the announcement on the information change (if any) was disclosed on the designated website | 28 March 2023 |
| Index to the announcement on the information change (if any) disclosed on the designated website | See Announcement No. 2023-011 on the Change of the Company’s Email Address, which has been disclosed on http://www.cninfo.com.cn dated 28 March 2023 |
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 website of the stock exchange, the media and other website where the Company’s periodic reports are disclosed, as well as theplace for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual Report.
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable ? Not applicable
IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement:
Change of accounting policy.
| Item | H1 2023 | H1 2022 | Change (%) | |
| Before | Restated | Restated | ||
| Operating revenue (RMB) | 80,177,875,220.00 | 91,610,241,869.00 | 91,610,241,869.00 | -12.48% |
| Net profit attributable to the listed company’s shareholders (RMB) | 735,809,609.00 | 6,595,661,738.00 | 6,595,661,738.00 | -88.84% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -1,584,440,291.00 | 4,239,456,093.00 | 4,239,456,093.00 | -137.37% |
| Net cash generated from/used in operating activities (RMB) | 16,243,669,123.00 | 28,112,000,665.00 | 28,112,000,665.00 | -42.22% |
| Basic earnings per share (RMB/share) | 0.02 | 0.17 | 0.17 | -88.24% |
| Diluted earnings per share (RMB/share) | 0.02 | 0.17 | 0.17 | -88.24% |
| Weighted average return on equity (%) | 0.50% | 4.80% | 4.80% | -4.30% |
| Item | 30 June 2023 | 31 December 2022 | Change (%) | |
| Before | Restated | Restated | ||
| Total assets (RMB) | 409,414,907,091.00 | 420,562,103,212.00 | 420,567,865,936.00 | -2.65% |
| Equity attributable to the listed company’s shareholders (RMB) | 129,031,756,302.00 | 136,089,410,395.00 | 136,079,680,294.00 | -5.18% |
Reason for accounting policy change and correction of accounting error:
As required by Interpretation No. 16 for the Accounting Standards for Business Enterprises issued by the Ministry of Finance, theGroup has retrospectively restated relevant financial statement items at the beginning of the year and in the same period of last year.
The said changes of accounting policies have no significant impact on the Company’s financial condition and operating results.
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.VI 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) | -8,863,349.00 | 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 consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) | 2,720,705,196.00 | 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 management | 0.00 | N/A |
| 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 held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and | 211,275,427.00 | N/A |
| liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | ||
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 14,453,653.00 | 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 | 185,555,680.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | N/A |
| Less: Income tax effects | 114,191,959.00 | N/A |
| Non-controlling interests effects (net of tax) | 688,684,748.00 | N/A |
| Total | 2,320,249,900.00 |
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
Part III Management Discussion and AnalysisI Principal Operations of the Company in the Reporting Period
(I) About the CompanyIn constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligentinterface products and professional services for information interaction and human health.With the vision “To Be the Most Respected Company on Earth”, BOE has always been adhering to the mission of “Change Life withHeart”. Upholding the core values of integrity & reliability, dedication to customers, being people-oriented, openness and innovation,as well as the business philosophy of doing the right thing, innovation and progress seeking, it has been forging ahead throughinnovation. Upon three decades of hard work, BOE has grown into a world leader in the semiconductor display industry and a globalinnovative company in the IoT sector. At present, it has a significant number of manufacturing bases in Beijing, Hefei, Chengdu,Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc., with subsidiaries in the United States, Germany, Japan, South Korea,Singapore, India, Brazil, the United Arab Emirates and other countries and regions, as well as a service system that covers the majorregions of the world, such as Europe, Americas, Asia, and Africa.In March 2023, BOE was selected as one of the “Demonstration World-Class Enterprises”. In full compliance with the requirementsof “excellent products, outstanding brand, leading innovation and modern governance” for a world-class enterprise, it is committed tomaking good products, creating high value, and providing better products and services for customers with continuous innovation in theIoT era.(II) About the Company’s principal operations
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interfacedevices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-qualitydisplay devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers withcompetitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI andbig data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions forsegments including smart industrial parks, smart finance, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for glass- and silicon-based system solutions,focuses on medical imaging, smart display windows, innovative glass-based sensor devices, industrial applications, consumerelectronics, automotive electronics and other fields, and provides customers with products and solutions including back plates for flatpanel X-ray detectors (FPXD), intelligent PDLC windows and PDLC system solutions, industrial sensors and solutions, and MEMSsensors, among others.
4. The MLED business
MLED business renders MLED backlight products with high reliability and high partition of dimming for LCD of TVs, monitors,notebooks, vehicles, VR/AR devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and highcontrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All these products are designed andmanufactured in an integrated manner.
5. The Smart Medical Engineering business
The Smart Medical Engineering business adopts the professional service model that integrates technologies and medical services in aninnovative manner to provide people-oriented health services for households, communities and hospitals. It provides a closed loop ofthrough-life health services with health management as the core, medical terminals as the traction, and digital hospitals and recreationalcommunities as the support. It connects testing equipment, healthcare workers and customers through the smart health managementecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing.
6. The “N” business
With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for differentsegments, including smart vehicle connection, industrial IoT, digital art, etc., which can provide customers with all-dimensional, one-stop and smart new experience under IoT scenarios. For example, in terms of smart vehicle connection, the business integrates DMS,gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO"innovative application scenarios that include four dimensions of health, entertainment, leisure, and office, and provides customers withprofessional integrated solutions, which can bring a new and more intelligent driving experience. The industrial IoT business providesenterprises with solutions, products, and services like smart production, smart factory, and cloud services. Relying on its self-developedindustrial Internet platform, it helps realise refined operation and management and achieve cost reduction and efficiency enhancementfrom all procedures of design, supply, production, and sales, offering all-dimensional, one-stop and smart industrial IoT solutions tocustomers and empowering customers in their digital transformation. In the field of digital artworks, the business adheres to "culture +technology" cross-field integration and innovation, launches the "one million digital culture experience scenario programme" aroundInternational Standard H.629.1 for digital art display, and join hands with partners at the content-, technology- and application-ends,so as to empower culture with display products and solutions with more functions and forms and better experience.II Core Competitiveness Analysis
1. Clear development strategy and sustainable value growth system
Based on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposedthe strategy of "Empower IoT with display" that is suitable for the transformation and development of its IoT. It regards "screen" as animportant port for human information interaction and the first channel that shows the integration of digital and real world in the IoTera, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage of "screen" to work with partnersto continuously expand the application capabilities of "screen" by integrating more functions, deriving more forms, and inserting morescenarios. In this way, the Company will achieve the user perception revolution of "screen as terminal" in the digital era, build anindustrial ecology of "screen as platform and screen as system", and reshape the value growth model.Guided by the strategy of "Empower IoT with display", the Company has established a value creation system for the entire industrychain, from display panels to smart terminals to system solutions. With the strongest product competitiveness and system integrationability in the industry, it meets the diversified needs of customers and achieves a transformation from "single device value creation" to"Empower IoT with display entire industry chain value creation", from "independent company value creation" to "synergistic ecologicalvalue creation", strengthening the synergistic empowerment effect of industrial ecology, and promoting the construction of a new valuegrowth system.
2. Stable market position and agile market responsiveness
The Company keeps following the trend of digitalisation and intelligence in industrial development, with a keen eye to capture customerneeds, track market dynamics, and seek new development opportunities and market breakthroughs on top of its existing business. Whilestabilizing its position in its principal business markets, the Company continues to strengthen its market development capabilities andexplore new business growth opportunities.In the first half of 2023, BOE continued to maintain its leading position in the display market, with its shipment volume in LCD displaysand five major applications remaining the largest in the world. Meanwhile, due to its continuous optimisation of product mix, theshipment volume of its advantageous high-end flagship products remained on the rise, with extra large-sized products (≥ 85") achieving
the world's largest shipment volume. In the OLED sector, the Company's shipment volume of flexible AMOLEDs increasedsignificantly, with more than 50 million units sold within six months, an increase of nearly 80% year-on-year.The Company's ongoing efforts in driving the IoT transformation continue to bear fruit in terms of market expansion. The shipmentvolume of whiteboards, splicing products and other products ranked first in the world. The system solution business has been promotedin an orderly manner, and the comprehensive management platform for smart financial outlets has been put into operation at the smartoutlets of China Minsheng Bank, Postal Savings Bank of China, Bank of Beijing and other banks. The construction of smart industrialparks for benchmark projects such as the Mangrove Tree Resort World Qingdao and the Dream Langfang has been successfullydelivered. Revenues in the sensor business continued to grow in the first half of the year, and the mass production and delivery of thefirst fibre optic colour sensor was achieved. The MLED overseas market has been actively expanded and orders have been signed withcountries in South America and the Middle East. The core capabilities and performance of the digital hospital improved significantly,with the total outpatient volume exceeding 585,000, up more than 63% year on year. The total discharge volume exceeded 26,000, upmore than 97% year on year. The number of Zhongxiangying's new external customers increased by more than 40% year on year.
3. Solid technological foundation and outstanding innovation capability
Persisting in driving the development with technological innovation, the Company has built a technology architecture of "EmpowerIoT with display" that is suitable for the transformation and development of its IoT, including device layer, terminal layer, platformlayer, and application layer. With a systematic technological innovation capability that integrates software and hardware, provides keysupport for the value extension of its "device - terminal - scenario".In terms of technology and products, the Company has accelerated the upgrade of its UB Cell and Oxide LCD technologies in thedisplay sector and has achieved breakthroughs in Gaming high-end flagship products. The NB QHD 240Hz Mini LED product withmega contrast ratio has been listed as a customer flagship model. In addition, the 110" UB Cell LCD technology has won the SID BestLCD-Based Technology, and the flexible OLED high-end foldable products with COE+LTPO technology have been exclusively forbrand customers. In terms of IoT innovation, BOE has become the first company in the industry to release a 16K video restorationsolution that solves the industry pain points of 16K image generation and playback and enables detailed light and shadowrepresentation. In terms of sensor technology, BOE has achieved mass production and delivery of its first fibre optic colour sensor withindustry-leading specifications such as product recognition capability and response time. In terms of MLED, BOE's 65" and 8K TVbacklight products won the "CDIA Bronze Award for Best Innovative Display Component of the Year" in 2023. With continuoustechnological breakthroughs, the Company was once again selected as one of the "Top 100 Global Innovators" by Clarivate Analyticsin February 2023, further demonstrating its innovation strength and technological leadership as an industry leader.In terms of patents, in the first half of the year, the number of new patent applications exceeded 3,900, including more than 90% forinventions and over 30% for overseas patents. Patent applications in respect of flexible OLEDs, sensors, artificial intelligence (AI) andother sectors exceeded 2,100 and accounted for more than 50%. The Company ranked 11th worldwide in Global U.S. Patent LicensingRanking issued by IFI in January 2023, and it has also been among the global top 20 for five consecutive years. The Company rankedseventh worldwide in Global PCT Patent Application Ranking issued by World Intellectual Property Organization (WIPO) in February2023, and it has been among the global top 10 for seven consecutive years. In terms of technical standards, two international standardproposals, namely the world's first fingerprint recognition test method and the flexible curling display flattening force test method,have been formally approved by the International Electrotechnical Commission (IEC) in the electronic display sector, filling a gap ofthe Company in related sectors. An international standard for ITU ultra-high definition teleconsulting system and two P2P nationalstandards have been issued. Besides, two group standards for Mini LED backlight LCD display and ultra-high definition TV variablefrequency display have been issued at the 2023 Fourth Global Mini/Micro LED Display Technology Week and the 2023 World Ultra-High Definition Video Industry Development Conference.
4. Efficient lean management capability and comprehensive digital management systemThe Company is committed to promoting the upgrading of its management system and creating a long-term leading global competitiveedge. In terms of operational management, it keeps improving the platform-based organisational design and optimises the operationalmanagement system of "three offices and three managements". The Company combines the organisational mechanism of an agile front
office, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance tocontinuously strengthen the coordinated operation of the three offices and increase the Company's operational efficiency. In terms ofproject management, the Company has innovatively established a five level management mechanism, clarifying the target positioningand output requirements for each stage of innovation, continuously optimizing the implementation effect of major projects of the Group,and strengthening management systems such as "linkages between the Group and business", "coordination between target andexecution", and "processes and results traced back to each other". In terms of digital transformation, the Company promotes the efficientprocessing of the Group's overall business on the basis of online business process management and continues to promote theconstruction of "one digital and visible BOE" with digital transformation projects as breach. In the first half of the year, the Companyissued a new management system for digital transformation projects, optimised the main process of the transformation projects,clarified the decision-making rules and responsibilities of all parties for pilot, implementation, and closure reviews, improved theseparation mechanism of review and decision-making, and further supported the orderly development of the Company's digitaltransformation.
5. Cohesion-oriented corporate culture and value system
2023 marks the 30th anniversary of BOE. In more than 30 years of entrepreneurship and innovation practices, the Company hasdeveloped a series of outstanding corporate culture and core values, which have inspired generations of its employees to continue toforge ahead. The Company sticks to the establishment of the cultural atmosphere that refers to "step forward and bear yourresponsibilities bravely, use your time efficiently, and innovate proactively without fear of hardship" and guides its employees to workand develop their career under the principles of "scholar wisdom, commercial thinking, and chivalrous bearing", "observe the problemand bear the responsibility from an overall point of view, think from a different point of view and clarify the responsibilities of eachposition, dare to raise problems and help solve them", and so on. Thus, "three virtues" and "five spirits" can be formed. "Three virtues"refers to the gratitude for building ideal and belief oriented and sustainable entrepreneurial organisations, the awe for buildingsustainable innovation and learning oriented organisations, and the transcendence for building organisations with large talent tanks,while "five spirits" refer to backbone, ambition, courage, morale, and confidence. In the face of the opportunities and challenges of theCompany's new development era, all BOE members will continue to carry on and promote the excellent corporate culture and valuesand work tirelessly to achieve the vision of “To Be the Most Respected Company on Earth”.III Analysis of Core Businesses
Overview:
See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.Year-on-year changes in key financial data:
Unit: RMB
| Item | H1 2023 | H1 2022 | Change (%) | Main reason for change |
| Operating revenue | 80,177,875,220.00 | 91,610,241,869.00 | -12.48% | N/A |
| Cost of sales | 72,933,845,456.00 | 74,499,068,362.00 | -2.10% | N/A |
| Selling expense | 1,927,463,296.00 | 1,862,479,468.00 | 3.49% | N/A |
| Administrative expense | 2,733,334,581.00 | 2,948,599,229.00 | -7.30% | N/A |
| Finance costs | 436,869,094.00 | 654,112,804.00 | -33.21% | Increased interest income and net exchange gains in the Reporting Period |
| Income tax expense | 820,532,936.00 | 1,681,324,244.00 | -51.20% | Decreased earnings in the Reporting Period |
| R&D investments | 5,817,182,841.00 | 5,689,976,471.00 | 2.24% | N/A |
| Net cash generated from/used in operating | 16,243,669,123.00 | 28,112,000,665.00 | -42.22% | Decreased sales in the Reporting |
| activities | Period | |||
| Net cash generated from/used in investing activities | -2,022,756,127.00 | -22,841,690,510.00 | 91.14% | Increased net cash inflows from investments in wealth management products in the Reporting Period |
| Net cash generated from/used in financing activities | -18,815,007,770.00 | -3,178,244,904.00 | -491.99% | Decreased cash inflows from borrowings received and repayment of perpetual bonds in the Reporting Period |
| Net increase in cash and cash equivalents | -3,793,720,888.00 | 3,181,592,619.00 | -219.24% | Decreased cash inflows from borrowings received and repayment of perpetual bonds in the Reporting Period |
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 operating revenue:
Unit: RMB
| Item | H1 2023 | H1 2022 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 80,177,875,220.00 | 100% | 91,610,241,869.00 | 100% | -12.48% |
| By operating division | |||||
| Display Devices business | 67,875,605,158.00 | 84.66% | 78,902,161,398.00 | 86.13% | -13.97% |
| IoT Innovation business | 17,416,958,825.00 | 21.72% | 17,230,638,158.00 | 18.81% | 1.08% |
| Sensor business | 183,294,095.00 | 0.23% | 103,681,585.00 | 0.11% | 76.79% |
| MLED business | 457,988,865.00 | 0.57% | 411,634,393.00 | 0.45% | 11.26% |
| Smart Medical Engineering business | 1,353,661,118.00 | 1.69% | 1,044,238,829.00 | 1.14% | 29.63% |
| Others and offset | -7,109,632,841.00 | -8.87% | -6,082,112,494.00 | -6.64% | 16.89% |
| By product category | |||||
| Display Devices business | 67,875,605,158.00 | 84.66% | 78,902,161,398.00 | 86.13% | -13.97% |
| IoT Innovation business | 17,416,958,825.00 | 21.72% | 17,230,638,158.00 | 18.81% | 1.08% |
| Sensor business | 183,294,095.00 | 0.23% | 103,681,585.00 | 0.11% | 76.79% |
| MLED business | 457,988,865.00 | 0.57% | 411,634,393.00 | 0.45% | 11.26% |
| Smart Medical Engineering business | 1,353,661,118.00 | 1.69% | 1,044,238,829.00 | 1.14% | 29.63% |
| Others and offset | -7,109,632,841.00 | -8.87% | -6,082,112,494.00 | -6.64% | 16.89% |
| By operating segment | |||||
| Mainland China | 34,647,943,197.00 | 43.21% | 37,391,483,962.00 | 40.81% | -7.34% |
| Other regions in Asia | 25,141,466,187.00 | 31.36% | 37,757,230,449.00 | 41.22% | -33.41% |
| Europe | 2,879,703,018.00 | 3.59% | 2,914,549,849.00 | 3.18% | -1.20% |
| America | 17,499,907,821.00 | 21.83% | 13,503,340,713.00 | 14.74% | 29.60% |
| Other regions | 8,854,997.00 | 0.01% | 43,636,896.00 | 0.05% | -79.71% |
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
? Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
| Display Devices business | 67,875,605,158.00 | 63,795,640,147.00 | 6.01% | -13.97% | -4.21% | -9.58% |
| IoT Innovation business | 17,416,958,825.00 | 15,917,582,582.00 | 8.61% | 1.08% | 2.39% | -1.17% |
| By product category | ||||||
| Display Devices business | 67,875,605,158.00 | 63,795,640,147.00 | 6.01% | -13.97% | -4.21% | -9.58% |
| IoT Innovation business | 17,416,958,825.00 | 15,917,582,582.00 | 8.61% | 1.08% | 2.39% | -1.17% |
| By operating segment | ||||||
| Mainland China | 34,647,943,197.00 | 31,714,542,215.00 | 8.47% | -7.34% | 8.12% | -13.08% |
| Other regions in Asia | 25,141,466,187.00 | 23,350,469,032.00 | 7.12% | -33.41% | -24.59% | -10.87% |
| America | 17,499,907,821.00 | 15,214,561,053.00 | 13.06% | 29.60% | 31.52% | -1.27% |
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable ? Not applicable
IV Analysis of Non-Core Businesses
? Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Source/Reason | Recurrent or not |
| Return on investment | 775,299,042.00 | - | Income recognized from associates | Not |
| Gain/loss on changes in fair value | 167,439,034.00 | - | N/A | Not |
| Asset impairments | -1,056,660,701.00 | - | Inventory valuation allowances established based on market conditions | Not |
| Non-operating income | 195,938,361.00 | - | N/A | Not |
| Non-operating expense | 31,666,388.00 | - | N/A | Not |
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
| Item | 30 June 2023 | 31 December 2022 | Change in percentage (%) | Reason for material change | ||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary assets | 63,920,860,892.00 | 15.61% | 68,800,307,369.00 | 16.36% | -0.75% | N/A |
| Accounts receivable | 27,385,120,678.00 | 6.69% | 28,203,647,569.00 | 6.71% | -0.02% | N/A |
| Contract assets | 84,853,547.00 | 0.02% | 71,636,461.00 | 0.02% | 0.00% | N/A |
| Inventories | 25,631,092,148.00 | 6.26% | 22,787,814,225.00 | 5.42% | 0.84% | N/A |
| Investment property | 1,133,922,798.00 | 0.28% | 1,122,025,138.00 | 0.27% | 0.01% | N/A |
| Long-term equity | 13,496,498,758.00 | 3.30% | 12,421,878,851.00 | 2.95% | 0.35% | N/A |
| investments | ||||||
| Fixed assets | 217,485,104,581.00 | 53.12% | 205,987,050,430.00 | 48.98% | 4.14% | Transfer of new constructions to fixed assets in the Reporting Period, resulting in increased fixed assets |
| Construction in progress | 24,587,302,375.00 | 6.01% | 43,386,134,668.00 | 10.32% | -4.31% | Transfer of new constructions to fixed assets in the Reporting Period, resulting in decreased construction in progress |
| Right-of-use assets | 732,367,564.00 | 0.18% | 687,120,946.00 | 0.16% | 0.02% | N/A |
| Short-term borrowings | 1,417,656,654.00 | 0.35% | 2,373,938,871.00 | 0.56% | -0.21% | N/A |
| Contract liabilities | 3,063,774,937.00 | 0.75% | 2,411,717,792.00 | 0.57% | 0.18% | N/A |
| Long-term borrowings | 121,134,621,227.00 | 29.59% | 123,143,479,690.00 | 29.28% | 0.31% | N/A |
| Lease liabilities | 600,388,222.00 | 0.15% | 538,586,010.00 | 0.13% | 0.02% | N/A |
2. Major Assets Overseas
□ Applicable ? Not applicable
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 17,187,993,936.00 | 117,940,261.00 | 0.00 | 0.00 | 37,184,060,618.00 | 42,899,497,338.00 | 0.00 | 11,595,506,620.00 |
| 2.Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Investments in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Investments in other equity instruments | 483,060,306.00 | 0.00 | -201,896,700.00 | 0.00 | 1,179,686.00 | 0.00 | 15,589,954.00 | 520,058,002.00 |
| 5. Other non-current financial assets | 2,022,967,681.00 | 49,498,773.00 | 0.00 | 0.00 | 7,033,758.00 | 0.00 | 0.00 | 2,079,500,212.00 |
| Subtotal of financial assets | 19,694,021,923.00 | 167,439,034.00 | -201,896,700.00 | 0.00 | 37,192,274,062.00 | 42,899,497,338.00 | 15,589,954.00 | 14,195,064,834.00 |
| Investment property | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total of the above | 19,694,021,923.00 | 167,439,034.00 | -201,896,700.00 | 0.00 | 37,192,274,062.00 | 42,899,497,338.00 | 15,589,954.00 | 14,195,064,834.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes:
N/A
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 2,817,459,430.00 | Mainly security deposits, and amounts put in pledge for the issuance of notes payable |
| Notes receivable | 29,667,971.00 | Endorsed and transferred with right of recourse, and those put in pledge for the issuance of notes payable |
| Inventories | 0.00 | N/A |
| Fixed assets | 129,659,013,078.00 | As collateral for guarantee |
| Intangible assets | 1,444,529,663.00 | As collateral for guarantee |
| Construction in progress | 2,223,828,526.00 | As collateral for guarantee |
| Investment property | 50,727,532.00 | As collateral for guarantee |
| Total | 136,225,226,200.00 | -- |
VI 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（%） |
| 492,972,629.00 | 252,036,272.00 | 95.60% |
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
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Funding source |
| Domestic/overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 53,614,432.00 | 0.00 | -14,137,913.00 | 0.00 | 0.00 | 728,606.00 | 76,022,515.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 91,600,150.00 | 0.00 | -26,699,396.00 | 0.00 | 0.00 | 9,772,660.00 | 93,384,979.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01518 | New Century Healthcare | 140,848,850.00 | Fair value method | 9,098,008.00 | 0.00 | -131,952,448.00 | 0.00 | 0.00 | 0.00 | 8,896,402.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | SZ002841 | CVTE | 299,999,939.00 | Fair value method | 256,525,783.00 | 39,575,751.00 | 0.00 | 0.00 | 0.00 | 39,575,751.00 | 296,101,534.00 | Held-for-trading financial assets | Self-funded |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 651,093,592.00 | -- | 410,838,373.00 | 39,575,751.00 | -172,789,757.00 | 0.00 | 0.00 | 50,077,017.00 | 474,405,430.00 | -- | -- | ||
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
? Applicable □ Not applicable
(1) Overall Usage of Funds Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Year | Way of raising | Total funds raised | Total funds used in the Current Period | Accumulative fund used | Total funds with usage changed | Accumulative funds with usage changed | Proportion of accumulative funds with usage changed | Total unused funds | The usage and destination of unused funds | Amount of funds raised idle for over two years |
| 2021 | Private placement of stocks | 2,033,260 | 0 | 1,867,094 | 0 | 0 | 0.00% | 166,166 | Continuously used for the construction of equity investment project | 0 |
| 2022 | Renewable corporate bonds | 200,000 | 0 | 200,000 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| Total | -- | 2,233,260 | 0 | 2,067,094 | 0 | 0 | 0.00% | 166,166 | -- | 0 |
| Explanation of overall usage of funds raised | ||||||||||
| The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus. The cumulative amount of raised funds through private placement of stocks was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the Reporting Period, the raised funds were used according to project investment plans, conforming to the relevant promise. | ||||||||||
(2) Commitment Projects of Fund Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Changed or not (including partial | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the Reporting | Accumulative investment amount as of the period-end | Investment schedule as the period-end (3)＝ | Date of reaching intended use of the project | Realized income in the Reporting | Whether reached anticipated income | Whether occurred significant changes in |
| changes) | Period | (2) | (2)/(1) | Period | project feasibility | |||||
| Committed investment project | ||||||||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 100,000 | 100,000 | 0 | 100,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 90,000 | 90,000 | 0 | 90,000 | 100.00% | - | - | N/A | Not |
| Supplementing the working capital | Not | 10,000 | 8,888 | 0 | 8,888 | 100.00% | - | - | N/A | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Not | 300,000 | 300,000 | 0 | 300,000 | 100.00% | - | - | N/A | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 650,000 | 650,000 | 0 | 650,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 600,000 | 600,000 | 0 | 533,834 | 88.97% | December 2023 | - | N/A | Not |
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Not | 100,000 | 100,000 | 0 | 0 | 0.00% | January 2024 | - | N/A | Not |
| Chengdu BOE Hospital Co., Ltd. | Not | 50,000 | 50,000 | 0 | 50,000 | 100.00% | April 2021 | - | N/A | Not |
| Supplementing the working capital | Not | 286,951 | 286,951 | 0 | 286,951 | 100.00% | - | - | N/A | Not |
| Subtotal of committed investment project | -- | 2,186,951 | 2,185,839 | 0 | 2,019,673 | -- | -- | 0 | -- | -- |
| Super raised funds arrangement | ||||||||||
| N/A | ||||||||||
| Total | -- | 2,186,951 | 2,185,839 | 0 | 2,019,673 | -- | -- | 0 | -- | -- |
| Describe project by project any failure to meet the schedule or anticipated income, as well as the reasons (including reasons for inputting “N/A” for “Whether reached anticipated income”) | All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loans from Fuzhou Urban Construction Investment Group Co., Ltd. / acquiring 24.06% of equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / supplementing the working capital by the 2021 private placement of shares) have been put to use. As a result, the Company's main business will be developed, its competitiveness will be enhanced, its debt-to-asset ratio will be effectively reduced, its debt paying ability will be strengthened, and its financial position will be improved.The committed investment project (capital increase in Chengdu BOE Hospital Co., Ltd. and construction) is in the early stage of opening and has not entered into the operation and profitability period. The committed investment projects (capital increase in Chongqing BOE Display Technology Co., Ltd. and construction /capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) have not yet reached the scheduled useful state The committed investment project (capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) is implemented in three stages. In the first stage, the Company invests with its own funds. It has realized the production of goods in small batches in 2021 and stable delivery in 2022 which is currently in normal operation. Since the silicon-based OLED industry is in the early stage of rapid development and the technological | |||||||||
| innovation is emerging endlessly, the Company successively launches the second and third stages considering the risks of changing technology and market demand. As of the disclosure date of this Report, the raised funds for the 12-inch silicon-based OLED project has not yet been put into use and will be invested based on market conditions subsequently. According to the commitment, the capital injection and construction investment project of Chongqing BOE Display Technology Co., Ltd. will be implemented in three phases. Of these, Phase I has achieved its design objectives and is continuously scheduled for production based on market demand and customer introduction. Phase II is in the ramp-up phase, where the equipment parameters need to be gradually adjusted in a timely manner according to the operation to ensure that the equipment reaches the optimal usage state. In Phase III, equipment transportation, move-in and commissioning have been delayed to varying degrees because of external factors such as market environment. In addition, due to the rapid update of OLED technology, the factory has made corresponding adjustments to delay the construction schedule of Phase III to adapt to the pace of key technology upgrades, ensuring that can meet the latest technological needs. | |
| Notes of condition of significant changes occurred in project feasibility | N/A |
| Amount, usage and schedule of super raise fund | N/A |
| Changes in implementation address of investment project | N/A |
| Adjustment of implementation mode of investment project | N/A |
| Advance investments in projects financed with raised funds and swaps of such advance investments with subsequent raised funds | Applicable |
| As at 30 June 2023, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9 billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and the remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds. As at 30 June 2023, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public offering of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited, and RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd. | |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | Applicable |
| As at 30 June 2023, the funds raised through the perpetual bonds have been used up, with a balance of RMB0.9284 million in the raised funds account, which was the interest income generated during the deposit period. As at 30 June 2023, the balance of the raised funds from the non-public offering of shares was RMB1,731,239,100, representing the unused raised funds and interest income generated during the deposit period. | |
| Usage and destination of unused funds | There is a balance of RMB0.9284 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the bonds; and there is a balance of RMB1,731,239,100 in the account of the funds raised through the private placement, which will be invested step by step in the projects of Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and Chongqing BOE Display Technology Co., Ltd. |
| Problems incurred in fund using and disclosure or other condition | N/A |
(3) Re-purposed Raised Funds
□ Applicable ? Not applicable
No such cases in the Reporting Period.VII 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
VIII Main Controlled and Joint Stock Companies? Applicable □ Not applicableMain subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, Production, and sales of semi-conductor display device, complete machine, and relevant products; import and export business and technology consulting of goods. | 19,226,000,000.00 | 54,463,712,495.00 | 43,787,101,666.00 | 8,759,248,745.00 | 1,746,496,542.00 | 1,482,103,021.00 |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 19,500,000,000.00 | 36,157,564,923.00 | 25,757,129,109.00 | 8,998,785,863.00 | 779,328,559.00 | 662,169,017.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 9,000,000,000.00 | 22,861,895,334.00 | 16,501,177,140.00 | 2,643,124,918.00 | 366,384,636.00 | 318,808,062.00 |
Subsidiaries obtained or disposed in this Reporting Period? Applicable □ Not applicable
| Name of subsidiary | How the subsidiary was acquired or disposed of | Effects on the overall operations and performance |
| Mianyang BOE Electronic Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Beijing Shiyan Technology Co., Ltd. | Incorporated with investment | No significant effects |
Information about major majority- and minority-owned subsidiaries:
N/A
IX Structured Bodies Controlled by the Company
□ Applicable ? Not applicable
X Risks Facing the Company and CountermeasuresIn the first half of 2023, due to factors such as geopolitics and inflation, the global economic recovery progressed more slowly thanexpected and consumer confidence continued to be weak. While there are signs of a rebound in prices of semiconductor display productsas market demand gradually recovers, the future trend of the industry remains uncertain. In the face of a market environment whereopportunities and challenges co-exist, the Company adheres to innovation-driven development strategy and continuously solidifies itscompetitive edge. Guided by the strategy of "Empower IoT with display", the company keeps enhancing its capabilities in marketdevelopment, technology and product development, supply chain guarantee, and lean management, and accelerates the transformationof Internet of Things. It actively promotes the construction of a safe and healthy industrial ecosystem that can fully cope with externalenvironmental impacts
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Meeting resolutions |
| The 2022 Annual General Meeting | Annual General Meeting | 23.11% | 5 May 2023 | 6 May 2023 | The following reports and proposals were deliberated and approved, i.e., Report on the Work of the Board of Directors for 2022, Report on the Work of the Board of Supervisors for 2022, Full Annual Report and Summary for 2022, Financial Final Report for 2022 and Business Plan for 2023, Proposal for the Distribution of Profits for 2022, Proposal on Borrowing and Credit Line, Proposal on the Development of Structured Deposits and Other Principal-protected Business, Proposal on the Appointment of an Audit Agency for 2023, Proposal on Repurchase and Deregistration of Some Restricted Shares |
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with ResumedVoting Rights
□ Applicable ? Not applicable
II Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Miao Chuanbin | Senior management | Dismissed | 1 March 2023 | Voluntary resignation |
| Xie Zhongdong | Senior management | Dismissed | 31 March 2023 | Voluntary resignation |
| Feng Qiang | Senior management | Appointed | 31 March 2023 | Appointed |
| Guo Huaping | Senior management | Appointed | 31 March 2023 | Appointed |
| Yue Zhanqiu | Senior management | Appointed | 28 April 2023 | Appointed |
III Interim Dividend Plan
□ Applicable ? Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees? Applicable □ Not applicable
1. Equity Incentives
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. The Company disclosed the Announcement on the Achievement of Lifting the RestrictionConditions in the First Lifting Restriction Period for Restricted Stocks Granted by the 2020 Stock Option and Restricted Stock IncentiveScheme and on the Satisfaction of the Exercise Conditions of the First Exercise Schedule of the First Granted Stock Option(Announcement No.: 2023-020) on 4 April 2023. The lifting of the restriction conditions in the first lifting restriction period forrestricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company has been achieved, and thefirst exercise schedule of the first granted stock option has satisfied the exercise conditions. A total of 746 awardees met the conditionsfor the lifting of the restrictions, resulting in a total of 102,260,780 shares of restricted stock that could be lifted. A total of 1,820awardees were eligible for stock option exercise, resulting in a total of 183,779,741 shares of stock options available for exercise. TheCompany disclosed the Announcement on the Repurchase and Write-off of Certain Restricted Stocks (Announcement No.: 2023-021)and the Announcement on the Write-off of Certain Stock Options (Announcement No.: 2023-022) on 4 April 2023, in which theCompany intends to repurchase and cancel 10,298,610 shares of restricted stock and 15,120,600 shares of stock option that have beengranted to incentive objects but have not been exercised by them since some incentive objects resigned, died, gave up voluntarily, andfailed to meet the performance appraisal goals for personal reasons. Moreover, the above-mentioned matters regarding the repurchaseand cancelation of restricted stocks were deliberated and approved in the Annual General Meeting of Shareholders of 2022 held on 5May 2023. The Company disclosed the Reminder Announcement on Release and Circulation of Restricted Shares Granted under the2020 Stock Option and Restricted Stock Incentive Scheme in the First Release Period (Announcement No.: 2023-026) on 7 April 2023.The total number of incentive targets who meet the conditions for releasing the restricted shares is 746, and the number of restrictedshares that can be released is 102,260,780 shares, accounting for 0.2677% of the total share capital of the Company at present. Thelisting date for the lifted restricted stocks is 11 April 2023. The Company disclosed the Announcement on Adjustment of the ExercisePrice of the Stock Option and the Restricted Share Repurchase Price in the 2020 Stock Option and Restricted Stock Incentive Schemeof the Company (Announcement No.: 2023-045) on 29 August 2023. Since the equity distribution of the Company for 2022 has beencompleted, the restricted stock repurchase price involved in this incentive scheme is adjusted from RMB2.41/share to RMB2.349/share,the exercise price of the first grant of the stock option is adjusted from RMB5.12/share to RMB5.059/share, and the exercise price ofthe reserved and granted stock option is adjusted from RMB5.62/share to RMB5.559/share.
2. Implementation of Employee Stock Ownership Plans
□ Applicable ? Not applicable
3. Other Incentive Measures for Employees
□ Applicable ? Not applicable
Part V Environmental and Social Responsibility
I Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmentalprotection authorities of China.?Yes □ NoPolicies and industry standards pertaining to environmental protectionWith the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies withthe laws and regulations such as the Environmental Protection Law of the People's Republic of China, Water Pollution Prevention andControl Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollution by SolidWaste. The green environment management system was built in combination with the requirements of a series of management systems,such as ISO 9001, QC 080000, ISO 14001 and ISO 50001.Environmental protection administrative licenseCorresponding environmental impact assessments have been conducted for all construction projects under the control of the Companyin conformity with applicable national and local laws and regulations, and corresponding administrative licenses have also beenobtained.The regulations for industrial emissions and the particular requirements for controlling pollutant emissionsthat are associated with production and operational activities.
| Name of polluter | Type of major pollutants | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 32.98 mg/L | 500mg/L | 51.11t | 828.42t | None |
| Ammonia nitrogen | 1.82 mg/L | 45mg/L | 2.488t | 59.17t | ||||||
| The 4.5th generation TFT-LCD production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 154.79 mg/l | 500mg/l | 72.49t | 564.14t | None |
| Ammonia nitrogen | 10.47 mg/l | 45mg/L | 4.90t | 50.77t | ||||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 32.73mg/L | 380mg/L | 56.50t | 1081.55t | None |
| Ammonia nitrogen | 1.51mg/L | 30mg/L | 2.63t | 101.23t | ||||||
| Beijing BOE Display | Waste water | COD | Standard emission | 1 | East gate of | 89.20mg/L | 500mg/l | 180.51t | 1570.32t | None |
| Technology Co., Ltd. | pollutant Waste water pollutant | Ammonia nitrogen | after being treated by sewage treatment system | factory | 12.11mg/L | 45mg/l | 25.11t | 183.20t | ||
| COD | 1(S2 domestic sewage outlet II) | South gate of dormitory area | 63mg/L | 500mg/l | 4.02t | 80.76t | ||||
| Ammonia nitrogen | 5.75mg/L | 45mg/l | 0.37t | 6.06t | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast gate of factory | 61.82mg/L | 350mg/L | 168.75t | 3135.04t | None |
| Ammonia nitrogen | 11.1mg/L | 35mg/L | 30.30t | 313.50t | ||||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 43.41mg/L | 500mg/L | 25.15t | 713.81t | None |
| Ammonia nitrogen | 0.38mg/L | 45mg/L | 0.23t | 76.82t | ||||||
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 22.92mg/L | 500mg/L | 25.55t | 6383.16t | None |
| Ammonia nitrogen | 11.82mg/L | 45mg/L | 13.38t | 574.48t | ||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 75.52 mg/L | 400mg/L | 139.06t | 1900.24t | None |
| Ammonia nitrogen | 9.4 mg/L | 30mg/L | 18.41t | 146.17t | ||||||
| Hefei BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 59.83mg/L | 400mg/L | 340.82t | 4759.56t | None |
| Ammonia nitrogen | 11mg/L | 35mg/L | 63.01t | 416.46t | ||||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment | 1 | Northeast side of factory | 12.94 mg/L | 500mg/L | 29.59t | 297.50t | None |
| Ammonia nitrogen | 0.43 mg/L | 45mg/L | 1.00t | 29.75t |
| system | ||||||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 21.1mg/L | 500mg/L | 37.14 t | 4326.12 t | None |
| Ammonia nitrogen | 4.38mg/L | 45mg/L | 7.71t | 262.00t | ||||||
| Chongqing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 20.5mg/L | 400mg/L | 22.3t | 4171.2t | None |
| Ammonia nitrogen | 1.25mg/L | 35mg/L | 1.36t | 398.4t | ||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast corner of factory | 23.31mg/L | 500mg/L | 119.73t | 488.6t | None |
| Ammonia nitrogen | 0.085mg/L | 45mg/L | 0.44t | 25.85t | ||||||
| Nanjing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 48.47mg/L | 500mg/L | 290.87t | 2215.01t | None |
| Ammonia nitrogen | 3.43mg/L | 45mg/L | 9.77t | 183.67t | ||||||
| Chengdu BOE Display Sci-tech Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast corner of factory | 199.54mg/L | 500mg/L | 630.25t | 4310.1t | None |
| Ammonia nitrogen | 12.11mg/L | 45mg/L | 38.25t | 148.8t | ||||||
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 99.1mg/L | 500mg/L | 2.59t | Industrial and domestic sewage of the project, upon treatment, is discharged to the industrial sewage plant of Linkong Industrial Park in Dianzhong New Zone, | None |
| Ammonia nitrogen | 12.8mg/L | 45mg/L | 0.33t |
Kunming,YunnanProvinceandincluded inthe totaldischarge ofthe sewageplant.
Treatment of pollutantsThe waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water andhousehold waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according todifferent natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected byrain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste wateris discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water compriseshousehold fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewagetreatment factory. All industrial and household waste water is not discharged directly, and the concentration and total amount of drainagesatisfy the requirements of national and local relevant standards.The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can beemitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the nationaland local relevant standards.The waste materials which are generated by each subordinate subsidiary can be divided into general industrial solid waste, hazardouswaste materials and household waste materials, and they all handed over to qualified recycler for regular treatment. The disposal rateof hazardous waste materials is 100%.Contingency Plan for Emergent Environmental IncidentsEvery subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmentalincidents in local environmental protection departments according to their requirements. However, such contingency plan consists ofcomprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardouswastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.Input in environment governance and protection and payment of environmental protection taxThe Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasinginvestment in environmental governance and protection, and improving the production and operation processes regardingenvironmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Companythat emit taxable pollutants to the environment shall strictly comply with the requirements of the Environmental Protection Tax Lawof the People's Republic of China and the local government and pay the environmental protection taxes.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been publishedvia Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.Administrative penalties imposed for environmental issues during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment information that should be disclosedNoMeasures taken to decrease carbon emission in the Reporting Period and corresponding effects? Applicable □ Not applicableTo respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbonemission peak and carbon neutrality of the Company, clearly raised a carbon emission management policy featuring "comprehensivecoordination, continuous reduction in carbon emissions, value extension and green development" and management objective featuring
“Achieve carbon emission peak and carbon neutrality of the Company”. Meanwhile, it included the performance in carbon emissionmanagement in the Company's performance management system to promote the Company's management of carbon emission.On the basis of the "6·24" action plan for peaking carbon emissions, more detailed measures and action plans for green management,green products, green manufacturing, green recycling, green investment and green actions were implemented. Meanwhile, in order toimprove the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and controlplatform was developed to realize full-process management featuring optimization and control at the source, continuous improvementsin the energy structure, dynamic control of processes, and effective analysis of data.The Company sets carbon targets in a scientific way. As a representative of the company, Chongqing BOE Optoelectronics TechnologyCo., Ltd. officially joined the Science Based Targets initiative (SBTi) and made a commitment to keep the increase in global averagetemperature 1.5°C below pre-industrial levels. Thereby, it becomes the first semiconductor display panel manufacturer in Chinesemainland to join SBTi. It carried out internal carbon inventory in accordance with the GHG Protocol to determine the base year foremission reduction and set emission reduction targets, and then planned the path to achieve the targets.Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system andthe incentive energy-saving program through refined management on the energy management platform.The number of energy-saving and emission reduction projects was 222 in total in 2023 (including 63 projects of 2022). It is expectedthat 195.438 million kWh of electricity, 5.9416 million tons of water, 140,000 cubic meters of natural gas, 3.3995 million cubic metersof nitrogen, and 20,000 cubic meters of vapor could be saved. As at the end of June, 49.5735 million kWh of electricity, 1.2869 milliontons of water, 74,300 cubic meters of natural gas, and 20,500 cubic meters of vapor had been saved. Meanwhile, in order to cope withthe challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conducted carbon emission trading andaccumulated carbon trading experience to assist the Company in achieving its goals of carbon emission peak and carbon neutrality.Other related environment protection informationThe Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheresto the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resourceconsumption, minimizing the impact on the ecological environment and maximizing the recyclability.In order to reduce the impact of the logistics transportation process on the environment, the Company and its partners constantlyimprove the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improvethe delivery efficiency, and reduce greenhouse gas emissions.
II Social ResponsibilityWith the sustainable development concept of Green+, Innovation+ and Community+ as its management and operation philosophy,BOE actively participates in the practices of the "Empower IoT with display" and the industrial value innovation ecosystem that is"Powered by BOE" with global partners.Under the principles of "integrity, standardisation, transparency, and responsibility", BOE continuously optimises the governancestructure for corporate legal person, improves the internal control system, and enhances the corporate governance capability inaccordance with the laws and regulations such as the Company Law, the Securities Law, and the Code of Corporate Governance forListed Companies, as well as relevant requirements of listed companies on the exchange. At the same time, it continues to improve itsenvironmental management system and the green operation of the whole process to efficiently utilise resources and energy. BOE issuedthe Towards Carbon Neutrality: BOE Display Low Carbon Development Report at the Display Forum of the Innovation PartnerConference on 28 June, disclosing BOE Display's low-carbon development goals for the first time and promising to achieve its ownoperational carbon neutrality by 2050. BOE has consistently implemented the country's rural revitalisation strategy, firmly fulfilledcorporate social responsibility, and established a long-term working mechanism for timely promotion, coordination and overallplanning, as well as reporting and summarisation. It conducts in-depth education and publicity and makes full use of internal corporateculture publicity platforms to promote rural revitalisation. It is dedicated to tasks such as employment support, consumption supportand public welfare support. It continues the implementation of the Lighting the Way to Growth education project and empowers digitaleducation in rural areas with technology to raise its level. BOE will explore more ways of support in light of its own developmentcharacteristics and actual situation, further consolidate the achievements of rural revitalisation, and contribute to high-qualitydevelopment and improvement of people's livelihood in the region.
Part VI Significant Events
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself andother Entities Fulfilled in the Reporting Period or Ongoing at the Period-end? Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | |
| Commitments made in time of asset restructuring | - | - | - | - | - | |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | |
| Equity incentive commitments | - | - | - | - | - | |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun Vice Chairman of the Board: Mr. Liu Xiaodong Director: Ms. Sun Yun and Mr. Gao Wenbao Supervisor: Mr. Xu Yangping, Mr. Yan Jun and Mr. Teng Jiao Senior Management: Ms. Feng Liqiong and | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific shares), they shall still keep their promises till the commitment period expires. | 21 February 2020 | During the term as director, supervisor or senior manager, and in six months after the expiration of the term (the term determined when taking office). | Ongoing |
| Mr. Liu Hongfeng Former Senior Management: Mr. Miao Chuanbin and Mr. Xie Zhongdong | ||
| Executed on time or not | Yes | |
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent AuditorAre the interim financial statements audited?
□ Yes ? No
The interim financial statements have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding theIndependent Auditor's “Modified Opinion” on the Financial Statements of the ReportingPeriod
□ Applicable ? Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's“Modified Opinion” on the Financial Statements of Last Year
□ Applicable ? Not applicable
VII Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Other legal matters:
? Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Litigations for H1 2023 (including carryforwards in previous years ) | 44,819.49 | No | N/A | - | N/A | N/A | N/A |
IX Punishments and Rectifications
□ Applicable ? Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De FactoController
□ Applicable ? Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with anyrelated finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable ? Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any otherfinance business with any related parties.
7. Other Major Related-Party Transactions
? Applicable □ Not applicableNoneIndex to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Estimated Continuing Related-party Transactions for 2023 | 4 April 2023 | www.cninfo.com.cn |
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
? Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||||
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 30 November 2016 | 554,774 | 15 March 2017 | 85,910 | Joint-liability | N/A | N/A | 2017-3-17 to 2027-3-17 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 24 April 2017 | 2,300,810 | 30 August 2017 | 1,482,738 | Joint-liability | N/A | N/A | 2017-9-6 to 2029-9-6 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 30 November 2016 | 1,733,191 | 30 August 2017 | 199,091 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2017-9-7 to 2027-9-7 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 9 December 2015 | 1,373,800 | 8 November 2016 | 69,383 | Joint-liability | N/A | N/A | 2016-12-19 to 2026-7-4 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 18 May 2018 | 2,136,768 | 18 September 2018 | 1,544,111 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2018-9-26 to 2031-9-26 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 27 April 2020 | 2,088,638 | 29 December 2020 | 1,350,748 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-12-31 to 2033-12-31 | Not | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 25 March 2019 | 2,065,806 | 16 August 2019 | 1,441,775 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2019-8-23 to 2032-8-23 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 180,000 | 12 May 2021 | 45,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-5-31 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 120,000 | 12 May 2021 | 120,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-6-6 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 10,500 | 27 December 2021 | 1,500 | Joint-liability | N/A | The secured party provides | 2021-12-27 to 2026-8-24 | Not | Not |
| a counter guarantee for the guarantor | ||||||||||
| Chengdu BOE Hospital Co., Ltd. | 27 April 2020 | 240,000 | 15 June 2020 | 146,499 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-6-15 to 2042-6-30 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 0 | Total actual amount of such guarantees in the Reporting Period (B2) | -1,234,329 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 12,804,286 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 6,486,755 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 3,600 | 30 September 2020 | 3,299 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 2,800 | 30 September 2020 | 2,566 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 3,300 | 30 September 2020 | 2,689 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,700 | 30 September 2020 | 1,385 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,100 | 30 September 2020 | 896 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 890 | 18 December 2017 | 506 | Pledge, joint-liability | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 18 December 2017 | 1,678 | Pledge, joint-liability | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyue Solar Energy | N/A | 960 | 18 | 464 | Pledge, | Equity | N/A | 2017-12-18 to 2032- | Not | Not |
| Technology (Wuyi) Co., Ltd | December 2017 | joint-liability | interests | 12-18 | ||||||
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 2,210 | 18 December 2017 | 1,271 | Pledge, joint-liability | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 18 December 2017 | 896 | Pledge, joint-liability | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,800 | 3 December 2020 | 1,504 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd. | N/A | 2,500 | 3 December 2020 | 2,088 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Ke’en Solar Energy Power Generation (Pingyang) Co., Ltd. | N/A | 1,600 | 3 December 2020 | 1,337 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 1,400 | 3 December 2020 | 1,170 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 700 | 3 December 2020 | 585 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 12,800 | 23 October 2017 | 11,809 | Pledge | Charging right | N/A | 2017-10-24 to 2032-10-23 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 20,560 | 15 August 2018 | 13,520 | Pledge | Charging right | N/A | 2018-9-26 to 2032-12-21 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 25,418 | 28 November 2017 | 20,347 | Pledge | Charging right | N/A | 2017-12-1 to 2032-12-1 | Not | Not |
| Hefei BOE Hospital Co., Ltd. | 27 April 2018 | 130,000 | 27 April 2018 | 120,000 | Joint-liability | N/A | N/A | 2018-4-27 to 2036-4-27 | Not | Not |
| Beijing BOE Life Technology Co., Ltd. | N/A | 60,000 | 29 December 2021 | 22,600 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-29 to 2039-12-28 | Not | Not |
| BOE Video Technology Co., Ltd. | 30 March 2022 | 216,774 | 23 March 2023 | 6,165 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2023-3-23 to the time when all orders under the Purchase and Sales Agreement are fulfilled | Not | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 0 | Total actual amount of such guarantees in the Reporting Period (C2) | 235 |
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 495,443 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 216,775 |
| Total guarantee amount (total of the three kinds of guarantees above) | |||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 0 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | -1,234,094 |
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,299,729 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 6,703,530 |
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 51.95% | ||
| Of which: | |||
| Balance of guarantees provided for shareholders, actual controller and their related parties (D) | 0 | ||
| Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) | 292,665 | ||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 251,942 | ||
| Total of the three amounts above (D+E+F) | 371,942 | ||
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A | ||
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A | ||
Compound guaranteesNone
3. Cash Entrusted for Wealth Management
? Applicable □ Not applicable
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Overdue amount | Overdue amount with provision for impairment |
| Structured bank deposits | Self-owned funds | 1,529,800 | 1,127,200 | 0 | 0 |
| Total | 1,529,800 | 1,127,200 | 0 | 0 | |
Particulars of entrusted cash management with single significant amount or low security, bad liquidity, and no capital preservation
□ Applicable ? Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrustedasset management
□ Applicable ? Not applicable
4. Other Major Contracts
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Other Significant Events? Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors. Among them, the redeemed and delisted bonds are detailed in the table below:
| Bond name | Abbr. | Bond code | Date of issue | Maturity | Redemption and delisting date | Disclosure index |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 | 31 October 2022 | www.cninfo.com.cn |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) | 20BOEY1 | 149046 | 27 February 2020 | 28 February 2023 | 28 February 2023 | |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 20BOEY2 | 149065 | 18 March 2020 | 19 March 2023 | 20 March 2023 | |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2023 | 27 April 2023 |
The bond outstanding as of the disclosure date of this Report is as follows:
| Bond name | Abbr. | Bond code | Date of issue | Maturity |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2025 |
The Company disclosed 2023 "22BOEY1" Interest Payment Announcement (Announcement No. 2023-010) on 23 March 2023. Theinterest payment plan was RMB35.00 (including tax) every ten bonds.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in whichthe Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. Thenet fund raised was expected to be no more than RMB20 billion. On 19 August 2021, the Company disclosed the Report on the Non-public Offering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcementNo. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, whichwere listed on the Shenzhen Stock Exchange on 20 August 2021. The Company disclosed the Suggestive Announcement on RelievingRestricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854restricted shares of the Company's non-publicly offered A shares in 2021 were relieved on 20 February 2023 and could be traded onthe market thereafter. The number of the relieved restricted shares accounted for 1.9324% of the Company's non-restricted shares, and
1.8801% of the Company's total share capital.
3. The Company disclosed the Announcement on Resignation of Senior Management (Announcement No.: 2023-006) on 2 March 2023,due to the change of work, Mr. Miao Chuanbin applied for resignation as Senior Vice President and Chief Culture Officer and will nothold any position in the Company after his resignation. The Company disclosed the Announcement on Resignation of SeniorManagement (Announcement No.: 2023-013) on 1 April 2023, due to personal reasons, Mr. Xie Zhongdong applied for resignation asSenior Vice President, Chief Audit Officer and Chief Risk Control Officer and will not hold any position in the Company after hisresignation. The Company disclosed the Announcement of Resolutions of the 13th Meeting of the 10th Board of Directors(Announcement No.: 2023-014) on 4 April 2023, at the 13th Meeting of the 10th Board of Directors, the Company considered andapproved the Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the ExecutiveCommittee of the Company, the Board of Directors appointed Mr. Feng Qiang as a member of the Executive Committee and ExecutiveVice President, Mr. Guo Huaping as Senior Vice President and Chief Cultural Officer; and to adjust the current senior management ofthe Company, Ms. Yang Xiaoping, from Senior Vice President and Chief Financial Officer to a member of the Executive Committee,Executive Vice President and Chief Financial Officer. [The Company disclosed the Announcement of Resolutions of the 15th Meetingof the 10th Board of Directors (Announcement No.: 2023-028) on 29 April 2023. At the 15th Meeting of the 10th Board of Directorsof the Company, the Proposal on the Appointment of Senior Management of the Company was reviewed and approved, and the Boardof Directors appointed Mr. Yue Zhanqiu as Senior Vice President and Chief Audit Officer of the Company.]
4. The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Sharesto Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory Committee, theCompany disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted StockIncentive Scheme (Announcement No.: 2020-086) on 31 December 2020. Following the approval of the Proposal on the Achievementof Lifting Conditions of the First lifting Restriction Period for the Restricted Stock Granted by the Stock Incentive Scheme of 2020 andthe Fulfillment of the Exercise Conditions for the Stock Option Granted for the First Time, the Proposal on the Repurchase and Write-off of Certain Restricted Shares and the Proposal for the Write-off of Certain Stock Options at the 13th Meeting of the 10th Board ofDirectors and the 4th Meeting of the 10th Supervisory Committee, the Company’s independent directors, lawyers and independentfinancial advisers respectively issued opinions on matters related to stock options and restricted stock incentives. The Companydisclosed the Reminder Announcement on Release and Circulation of Restricted Shares Granted under the 2020 Stock Option andRestricted Stock Incentive Scheme in the First Release Period (Announcement No.: 2023-026) on 7 April 2023. The total number ofincentive targets who meet the conditions for releasing the restricted shares is 746, and the number of restricted shares that can bereleased is 102,260,780 shares, accounting for 0.2677% of the total share capital of the Company at present. The Company disclosedthe Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share Repurchase Price in the 2020Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2023-045) on 29 August 2023. Since theequity distribution of the Company for 2022 has been completed, the restricted stock repurchase price involved in this incentive schemeis adjusted from RMB2.41/share to RMB2.349/share, the exercise price of the first grant of the stock option is adjusted fromRMB5.12/share to RMB5.059/share, and the exercise price of the reserved and granted stock option is adjusted from RMB5.62/shareto RMB5.559/share.
5. On 31 May 2023, the Company disclosed the Announcement No. 2023-034 on the Distribution of the 2022 Final Dividend. As the2022 Final Dividend Plan had been approved at the 2022 Annual General Meeting on 5 May 2023, the Company distributed a 2022final dividend of RMB0.61 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity rate of RMB andHKD declared by the People’s Bank of China on the first working day immediately after the date of the relevant general meetingresolution), with no bonus issue from either profit or capital reserves.
| Overview of significant event | Disclosure date | Disclosure website |
| Announcement on the Signing of Supplemental Agreement (III) to the Cooperation Agreement for the Life Science and Technology Industrial Base Project | 10 June 2023 | www.cninfo.com.cn |
XIV Significant Events of Subsidiaries
□ Applicable ? Not applicable
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
| Item | Before | Increase/decrease (+/-) | After | ||||||
| Number | Percentage | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Number | Percentage | |
| I. Restricted shares | 1,033,130,290 | 2.70% | 0 | 0 | 0 | -828,717,549 | -828,717,549 | 204,412,741 | 0.54% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 718,132,854 | 1.88% | 0 | 0 | 0 | -718,132,854 | -718,132,854 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 289,137,936 | 0.76% | 0 | 0 | 0 | -101,540,675 | -101,540,675 | 187,597,261 | 0.49% |
| Among which: Shares held by domestic corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by domestic individuals | 289,137,936 | 0.76% | 0 | 0 | 0 | -101,540,675 | -101,540,675 | 187,597,261 | 0.49% |
| 4. Shares held by foreign investors | 25,859,500 | 0.07% | 0 | 0 | 0 | -9,044,020 | -9,044,020 | 16,815,480 | 0.04% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign individuals | 25,859,500 | 0.07% | 0 | 0 | 0 | -9,044,020 | -9,044,020 | 16,815,480 | 0.04% |
| II. Non-restricted shares | 37,163,233,131 | 97.30% | 0 | 0 | 0 | 818,418,939 | 818,418,939 | 37,981,652,070 | 99.46% |
| 1. RMB ordinary shares | 36,470,349,004 | 95.48% | 0 | 0 | 0 | 818,418,939 | 818,418,939 | 37,288,767,943 | 97.65% |
| 2. Domestically listed foreign shares | 692,884,127 | 1.81% | 0 | 0 | 0 | 0 | 0 | 692,884,127 | 1.81% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 38,196,363,421 | 100.00% | 0 | 0 | 0 | -10,298,610 | -10,298,610 | 38,186,064,811 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicable
1. A total of 718,132,854 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 20 February 2023.
2. On 11 April 2023, the Company has lifted the restriction conditions of some restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme, and 102,260,780 sharesof restricted stock were actually lifted. During the Reporting Period, the Company repurchased and cancelled 10,298, 610 shares of restricted stock that had been authorised to 36 incentiverecipients but were still locked, resulting in a decrease of 112,559,390 shares of restricted stock of the Company's equity incentive.
3. During the Reporting Period, the equity incentive shares held by the Company's directors, supervisors, and senior management were lifted, resulting in an increase of 1,518,620 shares in themanagement lock-up shares. The management lock-up shares increased by 270,525 as a result of the Company's hiring of senior management and by 185,550 as a result of the resignation of theCompany's senior management. In total, the Company's management lock-up shares increased by 1,974,695.
4. During the Reporting Period, the total number of shares decreased by 10,298,610. Specifically, restricted shares decreased by 828,717,549, and non-restricted shares increased by 818,418,939.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Progress on any share repurchase:
□ 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
| Item | January-December 2022 | January-June 2023 |
| Basic earnings per share (RMB/share) | 0.19 | 0.02 |
| Diluted earnings per share (RMB/share) | 0.19 | 0.02 |
| Item | 31 December 2022 | 30 June 2023 |
| Equity per share attributable to the Company’s ordinary shareholders | 3.42 | 3.39 |
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 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | 718,132,854 | 0 | 0 | - | 20 February 2023 |
| Locked shares of executives | 2,366,636 | 0 | 1,974,695 | 4,341,331 | Locked shares of executives | - |
| Restricted shares for equity incentive | 312,630,800 | 112,559,390 | 0 | 200,071,410 | Restricted shares for equity incentive | - |
| Total | 1,033,130,290 | 830,692,244 | 1,974,695 | 204,412,741 | -- | -- |
II Issuance and Listing of Securities
□ Applicable ? Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
| Number of ordinary shareholders at the period-end | 1,320,143 (including 1,288,035 A-shareholders and 32,108 B-shareholders) | |||||||
| 5% or greater ordinary shareholders or top 10 ordinary shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total ordinary shares held at the period-end | Increase/decrease in the Reporting Period | Restricted ordinary shares held | Unrestricted ordinary shares held | Shares in pledge, marked or frozen | |
| Status | Shares | |||||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.64% | 4,063,333,333 | 0 | 0 | 4,063,333,333 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 8.66% | 3,307,482,377 | 1,857,289,096 | 0 | 3,307,482,377 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.15% | 822,092,180 | 0 | 0 | 822,092,180 | N/A | 0 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.88% | 718,132,854 | 0 | 0 | 718,132,854 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.74% | 666,195,772 | 0 | 0 | 666,195,772 | N/A | 0 |
| Fuqing Huirong Venture Capital Co., Ltd. | Domestic non-state-owned legal person | 1.41% | 537,469,040 | 3,484,700 | 0 | 537,469,040 | N/A | 0 |
| Ningxia Risheng High-tech Industry Co., Ltd. | Domestic non-state-owned legal person | 0.89% | 339,025,766 | -11,900,000 | 0 | 339,025,766 | N/A | 0 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | Other | 0.80% | 305,330,128 | 0 | 0 | 305,330,128 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.72% | 273,735,583 | 0 | 0 | 273,735,583 | N/A | 0 |
| Xu Lili | Foreign natural person | 0.71% | 272,735,592 | 31,410,294 | 0 | 272,735,592 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten ordinary shareholders due to placing of new shares (if any) | N/A | |||||||
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |||||||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | 1. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 2. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert | |||||||
| Agreement with Beijing Electronics Holdings Co., Ltd. | |||
| Special account for share repurchases (if any) among the top 10 shareholders | At the end of the Reporting Period, among the top ten shareholders of the Company, the special securities account for the repurchase of BOE Technology Group Co., Ltd. held 528,186,052 shares, accounting for 1.38%. According to relevant regulations in the Rule No. 3 for Content and Format of Information Disclosure of the Company Issuing Securities Publicly, if there are repurchase accounts in the top ten shareholders of the Company, it should be specified, but these shareholders should not be included and listed as the top ten shareholders. | ||
| Shareholdings of the top ten unrestricted ordinary shareholders | |||
| Name of shareholder | Number of unrestricted ordinary shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 3,307,482,377 | RMB ordinary share | 3,307,482,377 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | RMB ordinary share | 718,132,854 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Fuqing Huirong Venture Capital Co., Ltd. | 537,469,040 | RMB ordinary share | 537,469,040 |
| Ningxia Risheng High-tech Industry Co., Ltd. | 339,025,766 | RMB ordinary share | 339,025,766 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | 305,330,128 | RMB ordinary share | 305,330,128 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Xu Lili | 272,735,592 | RMB ordinary share | 272,735,592 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as between top 10 unrestricted ordinary shareholders and top 10 ordinary shareholders | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of | ||
| the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see Note 4) | 1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. held 296,442,066 shares in the Company via its credit securities account, and shareholder Xu Lili held 266,458,492 shares in the Company via her credit securities account. 2. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company increase by 3,484,700 shares due to securities refinancing. 3. Shareholders Beijing State-owned Capital Operation and Management Company Limited, Beijing BOE Investment & Development Co., Ltd., Beijing Jing Guorui SOE Reform and Development Fund (L.P.), Hefei Jianxiang Investment Co., Ltd., Beijing Electronics Holdings Co., Ltd. and Sinatay Life Insurance Co., Ltd.-Traditional Product were not involved in securities refinancing. 4. Except for the aforesaid, the Company does not know any other top-10 ordinary shareholder who was involved in securities refinancing. |
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 Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.IV 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) | Restricted shares granted at the period-beginning (share) | Restricted shares granted in the Reporting Period (share) | Restricted shares granted at the period-end (share) |
| Chen Yanshun | Chairman of the Board and Chairman of the Executive Committee | Incumbent | 2,900,000 | 0 | 0 | 2,900,000 | 2,000,000 | 0 | 1,320,000 |
| Pan Jinfeng | Vice Chairman of the Board | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liu Xiaodong | Vice Chairman of the Board and member of the Executive Committee | Incumbent | 2,480,000 | 0 | 0 | 2,480,000 | 1,800,000 | 0 | 1,188,000 |
| Gao Wenbao | Director, President and Vice Chairman of the Executive Committee | Incumbent | 1,860,700 | 0 | 0 | 1,860,700 | 1,500,000 | 0 | 990,000 |
| Sun Yun | Director, member of the Executive Committee and Executive Vice President | Incumbent | 1,989,481 | 0 | 0 | 1,989,481 | 1,500,000 | 0 | 990,000 |
| Ye Feng | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Tang Shoulian | Independent Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhang Xinmin | Independent Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Guo He | Independent Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wang Duoxiang | Independent Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wang Jin | Chairman of the Supervisory Committee | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sun Fuqing | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shi Xiaodong | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Xu Jinghe | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yan Jun | Employee Supervisor | Incumbent | 32,000 | 0 | 0 | 32,000 | 0 | 0 | 0 |
| Xu Yangping | Employee Supervisor | Incumbent | 35,000 | 0 | 0 | 35,000 | 0 | 0 | 0 |
| Teng Jiao | Employee Supervisor | Incumbent | 55,200 | 0 | 0 | 55,200 | 0 | 0 | 0 |
| Feng Qiang | Member of the Executive Committee and Executive Vice President | Incumbent | 975,700 | 0 | 0 | 975,700 | 750,000 | 0 | 495,000 |
| Wang Xiping | Member of the Executive Committee and Executive Vice President | Incumbent | 852,400 | 0 | 0 | 852,400 | 750,000 | 0 | 495,000 |
| Feng Liqiong | Member of the Executive Committee, Executive Vice President and CLO | Incumbent | 1,360,000 | 0 | 0 | 1,360,000 | 1,000,000 | 0 | 660,000 |
| Zhang Yu | Member of the Executive Committee and Executive Vice President | Incumbent | 751,600 | 0 | 0 | 751,600 | 634,000 | 0 | 418,440 |
| Yang Xiaoping | Member of the Executive Committee, Executive Vice President and CFO | Incumbent | 742,300 | 0 | 0 | 742,300 | 634,000 | 0 | 418,440 |
| Guo Huaping | Senior Vice President and CCO | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yue Zhanqiu | Senior Vice President and CASO | Incumbent | 553,440 | 0 | 0 | 553,440 | 418,440 | 0 | 418,440 |
| Liu Hongfeng | Vice President and Board Secretary | Incumbent | 1,024,500 | 0 | 0 | 1,024,500 | 750,000 | 0 | 495,000 |
| Miao Chuanbin | Senior management | Former | 758,800 | 0 | 0 | 108,800 | 650,000 | 0 | 0 |
| Xie Zhongdong | Senior management | Former | 1,057,000 | 0 | 0 | 307,000 | 750,000 | 0 | 0 |
| Total | -- | -- | 17,428,121 | 0 | 0 | 16,028,121 | 13,136,440 | 0 | 7,888,320 |
Note: 1. Mr Feng Qiang and Mr Guo Huaping were appointed as the Company’s senior management members by the Board of Directors on 31 March 2023 and Mr Yue Zhanqiu was appointed asthe Company’s senior management member by the Board of Directors on 28 April 2023. On this basis, the number of shares held by and the number of restricted shares granted to Mr Feng Qiang,Mr Guo Huaping and Mr Yue Zhanqiu at the beginning of the Reporting Period were indicated by the number of shares held at the date of their appointment;
2. The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company hasbeen achieved. The listing date is 11 April 2023. The above lifting of the restrictions resulted in a reduction in the number of restricted shares granted to directors and senior management at theend of the Reporting Period. After the lifting of certain restricted shares held by the Company's directors and senior management in this incentive scheme, the locking and trading of shares heldby them shall comply with the Company Law, the Securities Law, the Management Rules for Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Changesin Such Shares (2022 Revision), the Guidelines No. 1 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Standardised Operation of the Companies Listed on theMainboard, the Guidelines No. 10 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Management of Share Changes, and other the relevant laws and regulations.
3. Mr Miao Chuanbin and Mr Xie Zhongdong resigned from the senior management of the Company in March 2023 and will no longer hold any position in the Company after their resignation.On 25 May 2023, the Company repurchased and cancelled the restricted shares held by Mr Miao Chuanbin and Mr Xie Zhongdong which had been granted but not lifted in accordance with theprovisions of the 2020 Stock Option and Restricted Stock Incentive Scheme (Draft).
V Change of the Controlling Shareholder or the Actual Controller
Change 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 VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
? Applicable □ Not applicableI Enterprise Bonds
□ Applicable ? Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
? Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB’0,000
| Bond name | Abbr. | Bond code | Date of issue | Value date | Maturity | Balance (RMB’0,000) | Coupon rate | Way of redemption | Trade place |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2022 | 25 March 2025 | 200,000 | 3.50% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| Appropriate arrangement of the investors (if any) | Only for the qualified investors | ||||||||
| Applicable trade mechanism | centralized bidding trade and negotiated block trade | ||||||||
| Risk of delisting (if any) and countermeasures | Not | ||||||||
Overdue bonds
□ Applicable ? Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause? Applicable □ Not applicableFor the renewable corporate bonds “20BOEY1”, “20BOEY2”, “20BOEY3” and “22BOEY1”, 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall havethe right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. The Company has fully redeemed the "20BOEY1",“20BOEY2" and “20BOEY3" renewable corporate bonds respectively on 28 February 2023, 20 March 2023 and 27 April 2023. As at the date of approval of this report, the Company has notexercised the renewal option of issuer. Additionally, as the above-mentioned renewable corporate bonds incorporate the option of issuer to postpone interest payment, the Company has notexercised such option as at the date of approval of this report.
3. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable ? Not applicable
4. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as well as Influence on Equity of Bond Investors duringthe Reporting Period
□ Applicable ? Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□ Applicable ? Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding10% of Net Assets up the Period-end of Last Year
□ Applicable ? Not applicable
VI The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: RMB’0,000
| Item | 30 June 2023 | 31 December 2022 | Change |
| Current ratio | 1.56 | 1.66 | -6.02% |
| Debt/asset ratio | 52.61% | 51.96% | 0.65% |
| Quick ratio | 1.26 | 1.39 | -9.35% |
| Item | H1 2023 | H1 2022 | Change |
| Net profit before exceptional gains and losses | -158,444 | 423,946 | -137.37% |
| EBITDA/debt ratio | 12.52% | 15.30% | -2.78% |
| Interest cover (times) | 0.61 | 3.93 | -84.48% |
| Cash-to-interest cover (times) | 6.35 | 12.20 | -47.95% |
| EBITDA-to-interest cover (times) | 8.24 | 14.19 | -41.93% |
| Loan repayment ratio (%) | 100.00% | 100.00% | 0.00% |
| Interest payment ratio (%) | 100.00% | 100.00% | 0.00% |
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes ? No
These interim financial statements have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
30 June 2023
Unit: RMB
| Item | 30 June 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 63,920,860,892.00 | 68,800,307,369.00 |
| Settlement reserve | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 |
| Held-for-trading financial assets | 11,595,506,620.00 | 17,187,993,936.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 236,499,653.00 | 211,792,061.00 |
| Accounts receivable | 27,385,120,678.00 | 28,203,647,569.00 |
| Accounts receivable financing | 0.00 | 0.00 |
| Prepayments | 514,704,768.00 | 589,764,680.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Other receivables | 623,339,254.00 | 975,809,236.00 |
| Including: Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 22,234,936.00 | 0.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 25,631,092,148.00 | 22,787,814,225.00 |
| Contract assets | 84,853,547.00 | 71,636,461.00 |
| Assets held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 9,038,005.00 | 8,561,307.00 |
| Other current assets | 3,228,004,419.00 | 3,394,036,919.00 |
| Total current assets | 133,229,019,984.00 | 142,231,363,763.00 |
| Non-current assets: | ||
| Loans and advances to customers | 0.00 | 0.00 |
| Investments in debt obligations | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Long-term receivables | 21,315,882.00 | 28,637,449.00 |
| Long-term equity investments | 13,496,498,758.00 | 12,421,878,851.00 |
| Investments in other equity instruments | 520,058,002.00 | 483,060,306.00 |
| Other non-current financial assets | 2,079,500,212.00 | 2,022,967,681.00 |
| Investment property | 1,133,922,798.00 | 1,122,025,138.00 |
| Fixed assets | 217,485,104,581.00 | 205,987,050,430.00 |
| Construction in progress | 24,587,302,375.00 | 43,386,134,668.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 732,367,564.00 | 687,120,946.00 |
| Intangible assets | 9,218,018,054.00 | 8,948,327,143.00 |
| Development costs | 0.00 | 0.00 |
| Goodwill | 675,109,498.00 | 660,823,651.00 |
| Long-term prepaid expense | 559,848,749.00 | 556,941,377.00 |
| Deferred income tax assets | 76,111,028.00 | 76,013,149.00 |
| Other non-current assets | 5,600,729,606.00 | 1,955,521,384.00 |
| Total non-current assets | 276,185,887,107.00 | 278,336,502,173.00 |
| Total assets | 409,414,907,091.00 | 420,567,865,936.00 |
| Current liabilities: | ||
| Short-term borrowings | 1,417,656,654.00 | 2,373,938,871.00 |
| Borrowings from the central bank | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 |
| Held-for-trading financial liabilities | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 791,809,127.00 | 870,221,538.00 |
| Accounts payable | 31,303,322,731.00 | 29,834,720,464.00 |
| Advances from customers | 87,615,272.00 | 79,848,977.00 |
| Contract liabilities | 3,063,774,937.00 | 2,411,717,792.00 |
| 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 |
| Employee benefits payable | 2,947,353,900.00 | 2,818,532,823.00 |
| Taxes payable | 1,636,536,296.00 | 1,331,401,188.00 |
| Other payables | 19,560,680,858.00 | 19,632,223,269.00 |
| Including: Interest payable | 163,348.00 | 151,200.00 |
| Dividends payable | 84,847,829.00 | 6,410,514.00 |
| Handling charges and commissions payable | 0.00 | 0.00 |
| Reinsurance payables | 0.00 | 0.00 |
| Liabilities directly associated with assets held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 20,803,467,035.00 | 22,703,750,744.00 |
| Other current liabilities | 3,544,265,387.00 | 3,613,967,673.00 |
| Total current liabilities | 85,156,482,197.00 | 85,670,323,339.00 |
| Non-current liabilities: | ||
| Insurance contract reserve | 0.00 | 0.00 |
| Long-term borrowings | 121,134,621,227.00 | 123,143,479,690.00 |
| Bonds payable | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 600,388,222.00 | 538,586,010.00 |
| Long-term payables | 212,301,613.00 | 229,587,077.00 |
| Long-term employee benefits payable | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 4,479,125,511.00 | 5,156,347,332.00 |
| Deferred income tax liabilities | 1,334,020,659.00 | 1,289,899,658.00 |
| Other non-current liabilities | 2,494,840,955.00 | 2,499,075,805.00 |
| Total non-current liabilities | 130,255,298,187.00 | 132,856,975,572.00 |
| Total liabilities | 215,411,780,384.00 | 218,527,298,911.00 |
| Owners’ equity: | ||
| Share capital | 38,186,064,811.00 | 38,196,363,421.00 |
| Other equity instruments | 2,008,115,275.00 | 8,176,366,808.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 2,008,115,275.00 | 8,176,366,808.00 |
| Capital reserves | 55,326,344,280.00 | 55,218,504,392.00 |
| Less: Treasury stock | 3,192,004,285.00 | 3,508,201,911.00 |
| Other comprehensive income | -780,793,751.00 | -1,073,768,030.00 |
| Specific reserve | 56,260,433.00 | 0.00 |
| Surplus reserves | 3,241,181,456.00 | 3,241,063,934.00 |
| General reserve | 0.00 | 0.00 |
| Retained earnings | 34,186,588,083.00 | 35,829,351,680.00 |
| Total equity attributable to owners of the Company as the parent | 129,031,756,302.00 | 136,079,680,294.00 |
| Non-controlling interests | 64,971,370,405.00 | 65,960,886,731.00 |
| Total owners’ equity | 194,003,126,707.00 | 202,040,567,025.00 |
| Total liabilities and owners’ equity | 409,414,907,091.00 | 420,567,865,936.00 |
Legal representative: Chen Yanshun Chief Executive Officer: Gao WenbaoChief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2023 | 1 January 2023 |
| Current assets: | ||
| Monetary assets | 3,526,801,918.00 | 7,121,641,234.00 |
| Held-for-trading financial assets | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 0.00 | 0.00 |
| Accounts receivable | 5,265,293,085.00 | 4,863,665,269.00 |
| Accounts receivable financing | 0.00 | 0.00 |
| Prepayments | 12,556,998.00 | 7,045,311.00 |
| Other receivables | 24,860,553,352.00 | 19,878,145,375.00 |
| Including: Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 334,081,592.00 | 333,352,986.00 |
| Inventories | 31,180,205.00 | 15,065,947.00 |
| Contract assets | 0.00 | 0.00 |
| Assets held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 0.00 |
| Other current assets | 33,366,620.00 | 57,226,515.00 |
| Total current assets | 33,729,752,178.00 | 31,942,789,651.00 |
| Non-current assets: | ||
| Investments in debt obligations | 0.00 | 0.00 |
| Investments in other debt obligations | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 218,229,029,454.00 | 214,308,953,020.00 |
| Investments in other equity instruments | 82,842,547.00 | 60,434,464.00 |
| Other non-current financial assets | 1,472,604,765.00 | 1,416,072,234.00 |
| Investment property | 247,141,795.00 | 251,870,591.00 |
| Fixed assets | 907,564,040.00 | 921,510,043.00 |
| Construction in progress | 641,474,672.00 | 616,247,335.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Right-of-use assets | 106,159,884.00 | 126,373,643.00 |
| Intangible assets | 1,040,393,964.00 | 1,122,230,564.00 |
| Development costs | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 |
| Long-term prepaid expense | 373,191,577.00 | 384,123,386.00 |
| Deferred income tax assets | 0.00 | 0.00 |
| Other non-current assets | 3,852,083,138.00 | 1,080,322,988.00 |
| Total non-current assets | 226,952,485,836.00 | 220,288,138,268.00 |
| Total assets | 260,682,238,014.00 | 252,230,927,919.00 |
| Current liabilities: | ||
| Short-term borrowings | 0.00 | 0.00 |
| Held-for-trading financial liabilities | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 |
| Accounts payable | 430,488,068.00 | 312,100,258.00 |
| Advances from customers | 16,174,192.00 | 14,819,929.00 |
| Contract liabilities | 90,206.00 | 19,200.00 |
| Employee benefits payable | 223,016,167.00 | 282,792,422.00 |
| Taxes payable | 155,008,679.00 | 139,166,672.00 |
| Other payables | 2,971,263,971.00 | 4,249,391,146.00 |
| Including: Interest payable | 0.00 | 0.00 |
| Dividends payable | 6,451,171.00 | 6,410,514.00 |
| Liabilities directly associated with assets held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 3,525,222,265.00 | 2,704,607,119.00 |
| Other current liabilities | 35,593,743.00 | 20,283,257.00 |
| Total current liabilities | 7,356,857,291.00 | 7,723,180,003.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 40,116,000,000.00 | 39,557,500,000.00 |
| Bonds payable | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Lease liabilities | 66,995,385.00 | 85,830,813.00 |
| Long-term payables | 0.00 | 0.00 |
| Long-term employee benefits payable | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 1,397,862,621.00 | 1,933,587,746.00 |
| Deferred income tax liabilities | 122,773,301.00 | 111,987,272.00 |
| Other non-current liabilities | 111,794,661,805.00 | 96,394,661,805.00 |
| Total non-current liabilities | 153,498,293,112.00 | 138,083,567,636.00 |
| Total liabilities | 160,855,150,403.00 | 145,806,747,639.00 |
| Owners’ equity: | ||
| Share capital | 38,186,064,811.00 | 38,196,363,421.00 |
| Other equity instruments | 2,008,115,275.00 | 8,176,366,808.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 2,008,115,275.00 | 8,176,366,808.00 |
| Capital reserves | 53,796,432,629.00 | 53,693,627,213.00 |
| Less: Treasury stock | 3,192,004,285.00 | 3,508,201,911.00 |
| Other comprehensive income | 24,529,980.00 | 340,345.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 3,241,181,456.00 | 3,241,063,934.00 |
| Retained earnings | 5,762,767,745.00 | 6,624,620,470.00 |
| Total owners’ equity | 99,827,087,611.00 | 106,424,180,280.00 |
| Total liabilities and owners’ equity | 260,682,238,014.00 | 252,230,927,919.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Revenue | 80,177,875,220.00 | 91,610,241,869.00 |
| Including: Operating revenue | 80,177,875,220.00 | 91,610,241,869.00 |
| Interest income | 0.00 | 0.00 |
| Insurance premium income | 0.00 | 0.00 |
| Handling charge and commission income | 0.00 | 0.00 |
| 2. Costs and expenses | 83,839,057,017.00 | 85,954,099,199.00 |
| Including: Cost of sales | 72,933,845,456.00 | 74,499,068,362.00 |
| Interest expense | 0.00 | 0.00 |
| Handling charge and commission expense | 0.00 | 0.00 |
| Surrenders | 0.00 | 0.00 |
| Net insurance claims paid | 0.00 | 0.00 |
| Net amount provided as insurance contract reserve | 0.00 | 0.00 |
| Expenditure on policy dividends | 0.00 | 0.00 |
| Reinsurance premium expense | 0.00 | 0.00 |
| Taxes and surcharges | 540,534,727.00 | 627,834,518.00 |
| Selling expense | 1,927,463,296.00 | 1,862,479,468.00 |
| Administrative expense | 2,733,334,581.00 | 2,948,599,229.00 |
| R&D expense | 5,267,009,863.00 | 5,362,004,818.00 |
| Finance costs | 436,869,094.00 | 654,112,804.00 |
| Including: Interest expense | 1,838,822,216.00 | 1,503,427,051.00 |
| Interest income | 978,583,668.00 | 651,030,668.00 |
| Add: Other income | 2,746,029,724.00 | 2,976,852,563.00 |
| Return on investment (“-” for loss) | 775,299,042.00 | 646,167,675.00 |
| Including: Share of profit or loss of joint ventures and associates | 698,402,235.00 | 586,980,332.00 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | 0.00 | 0.00 |
| Exchange gain (“-” for loss) | 0.00 | 0.00 |
| Net gain on exposure hedges (“-” for loss) | 0.00 | 0.00 |
| Gain on changes in fair value (“-” for loss) | 167,439,034.00 | 77,771,038.00 |
| Credit impairment loss (“-” for loss) | 8,479,174.00 | -19,995,527.00 |
| Asset impairment loss (“-” for loss) | -1,056,660,701.00 | -4,528,459,543.00 |
| Asset disposal income (“-” for loss) | 9,272,560.00 | 3,601,605.00 |
| 3. Operating profit (“-” for loss) | -1,011,322,964.00 | 4,812,080,481.00 |
| Add: Non-operating income | 195,938,361.00 | 99,586,182.00 |
| Less: Non-operating expense | 31,666,388.00 | 17,425,496.00 |
| 4. Profit before tax (“-” for loss) | -847,050,991.00 | 4,894,241,167.00 |
| Less: Income tax expense | 820,532,936.00 | 1,681,324,244.00 |
| 5. Net profit (“-” for net loss) | -1,667,583,927.00 | 3,212,916,923.00 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | -1,667,583,927.00 | 3,212,916,923.00 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to shareholders of the Company as the parent (“-” for net loss) | 735,809,609.00 | 6,595,661,738.00 |
| 5.2.2 Net profit attributable to non-controlling interests (“-” for net loss) | -2,403,393,536.00 | -3,382,744,815.00 |
| 6. Other comprehensive income, net of tax | 403,948,040.00 | -497,059,876.00 |
| Attributable to owners of the Company as the parent | 294,149,500.00 | -478,538,335.00 |
| 6.1 Items that will not be reclassified to profit or loss | 23,249,572.00 | -20,609,687.00 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | 0.00 | 0.00 |
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 6,317,985.00 | -10,265,385.00 |
| 6.1.3 Changes in the fair value of investments in other equity instruments | 16,931,587.00 | -10,344,302.00 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | 0.00 | 0.00 |
| 6.1.5 Other | 0.00 | 0.00 |
| 6.2 Items that will be reclassified to profit or loss | 270,899,928.00 | -457,928,648.00 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 0.00 | 51,684.00 |
| 6.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 6.2.4 Credit impairment allowance for investments in other debt obligations | 0.00 | 0.00 |
| 6.2.5 Reserve for cash flow hedges | 0.00 | 0.00 |
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 270,899,928.00 | -457,980,332.00 |
| 6.2.7 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | 109,798,540.00 | -18,521,541.00 |
| 7. Total comprehensive income | -1,263,635,887.00 | 2,715,857,047.00 |
| Attributable to owners of the Company as the parent | 1,029,959,109.00 | 6,117,123,403.00 |
| Attributable to non-controlling interests | -2,293,594,996.00 | -3,401,266,356.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.02 | 0.17 |
| 8.2 Diluted earnings per share | 0.02 | 0.17 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.Legal representative: Chen Yanshun Chief Executive Officer: Gao WenbaoChief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Operating revenue | 1,666,351,287.00 | 2,712,812,036.00 |
| Less: Cost of sales | 4,658,611.00 | 5,281,222.00 |
| Taxes and surcharges | 21,158,994.00 | 26,370,648.00 |
| Selling expense | 0.00 | 0.00 |
| Administrative expense | 642,786,470.00 | 625,941,940.00 |
| R&D expense | 967,119,283.00 | 1,019,595,582.00 |
| Finance costs | 194,966,535.00 | 293,782,658.00 |
| Including: Interest expense | 256,256,753.00 | 322,061,288.00 |
| Interest income | 42,139,306.00 | 53,616,149.00 |
| Add: Other income | 480,480,116.00 | 488,504,655.00 |
| Return on investment (“-” for loss) | 1,294,301,319.00 | 1,516,746,783.00 |
| Including: Share of profit or loss of joint ventures and associates | 588,103,242.00 | 416,617,496.00 |
| 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) | 49,498,773.00 | 0.00 |
| Credit impairment loss (“-” for loss) | 4,667,251.00 | -636,303.00 |
| Asset impairment loss (“-” for loss) | -154,130.00 | 0.00 |
| Asset disposal income (“-” for loss) | 703.00 | 0.00 |
| 2. Operating profit (“-” for loss) | 1,664,455,426.00 | 2,746,455,121.00 |
| Add: Non-operating income | 3,121,629.00 | 3,538,481.00 |
| Less: Non-operating expense | 231,353.00 | 882,153.00 |
| 3. Profit before tax (“-” for loss) | 1,667,345,702.00 | 2,749,111,449.00 |
| Less: Income tax expense | 150,625,221.00 | 230,231,274.00 |
| 4. Net profit (“-” for net loss) | 1,516,720,481.00 | 2,518,880,175.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 1,516,720,481.00 | 2,518,880,175.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5. Other comprehensive income, net of tax | 25,364,856.00 | -9,746,293.00 |
| 5.1 Items that will not be reclassified to profit or loss | 25,364,856.00 | -9,797,977.00 |
| 5.1.1 Changes caused by remeasurements on defined benefit schemes | 0.00 | 0.00 |
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | 6,317,985.00 | -10,265,385.00 |
| 5.1.3 Changes in the fair value of investments in other equity instruments | 19,046,871.00 | 467,408.00 |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | 0.00 | 0.00 |
| 5.1.5 Other | 0.00 | 0.00 |
| 5.2 Items that will be reclassified to profit or loss | 0.00 | 51,684.00 |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | 0.00 | 51,684.00 |
| 5.2.2 Changes in the fair value of investments in other debt obligations | 0.00 | 0.00 |
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | 0.00 | 0.00 |
| 5.2.4 Credit impairment allowance for investments in other debt obligations | 0.00 | 0.00 |
| 5.2.5 Reserve for cash flow hedges | 0.00 | 0.00 |
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 0.00 | 0.00 |
| 5.2.7 Other | 0.00 | 0.00 |
| 6. Total comprehensive income | 1,542,085,337.00 | 2,509,133,882.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.04 | 0.06 |
| 7.2 Diluted earnings per share | 0.04 | 0.06 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 85,492,716,009.00 | 105,748,212,621.00 |
| Net increase in customer deposits and interbank deposits | 0.00 | 0.00 |
| Net increase in borrowings from the central bank | 0.00 | 0.00 |
| Net increase in loans from other financial institutions | 0.00 | 0.00 |
| Premiums received on original insurance contracts | 0.00 | 0.00 |
| Net proceeds from reinsurance | 0.00 | 0.00 |
| Net increase in deposits and investments of policy holders | 0.00 | 0.00 |
| Interest, 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 from acting trading of securities | 0.00 | 0.00 |
| Tax rebates | 5,175,265,145.00 | 11,422,361,466.00 |
| Cash generated from other operating activities | 3,319,951,107.00 | 5,584,434,829.00 |
| Subtotal of cash generated from operating activities | 93,987,932,261.00 | 122,755,008,916.00 |
| Payments for commodities and services | 64,067,391,607.00 | 76,855,395,277.00 |
| Net increase in loans and advances to customers | 0.00 | 0.00 |
| Net increase in deposits in the 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 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 | 9,063,210,388.00 | 11,234,924,468.00 |
| Taxes paid | 2,054,933,349.00 | 3,972,911,897.00 |
| Cash used in other operating activities | 2,558,727,794.00 | 2,579,776,609.00 |
| Subtotal of cash used in operating activities | 77,744,263,138.00 | 94,643,008,251.00 |
| Net cash generated from/used in operating activities | 16,243,669,123.00 | 28,112,000,665.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 42,819,205,131.00 | 35,710,798,594.00 |
| Return on investment | 335,703,497.00 | 178,876,792.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 15,350,205.00 | 4,016,426.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 2,109,245,407.00 | 627,086,392.00 |
| Subtotal of cash generated from investing activities | 45,279,504,240.00 | 36,520,778,204.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 9,606,032,165.00 | 15,758,092,463.00 |
| Payments for investments | 37,684,686,228.00 | 42,524,036,688.00 |
| 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 | 11,541,974.00 | 1,080,339,563.00 |
| Subtotal of cash used in investing activities | 47,302,260,367.00 | 59,362,468,714.00 |
| Net cash generated from/used in investing activities | -2,022,756,127.00 | -22,841,690,510.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 1,302,100,202.00 | 3,073,997,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 1,302,100,202.00 | 1,073,997,000.00 |
| Borrowings raised | 15,195,788,662.00 | 32,623,869,532.00 |
| Cash generated from other financing activities | 1,528,590.00 | 5,212,625.00 |
| Subtotal of cash generated from financing activities | 16,499,417,454.00 | 35,703,079,157.00 |
| Repayment of borrowings | 20,880,858,261.00 | 27,288,608,429.00 |
| Interest and dividends paid | 5,419,025,898.00 | 10,659,724,426.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 0.00 | 0.00 |
| Cash used in other financing activities | 9,014,541,065.00 | 932,991,206.00 |
| Subtotal of cash used in financing activities | 35,314,425,224.00 | 38,881,324,061.00 |
| Net cash generated from/used in financing activities | -18,815,007,770.00 | -3,178,244,904.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 800,373,886.00 | 1,089,527,368.00 |
| 5. Net increase in cash and cash equivalents | -3,793,720,888.00 | 3,181,592,619.00 |
| Add: Cash and cash equivalents, beginning of the period | 64,382,037,764.00 | 76,623,486,083.00 |
| 6. Cash and cash equivalents, end of the period | 60,588,316,876.00 | 79,805,078,702.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2023 | H1 2022 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,269,226,153.00 | 3,060,528,996.00 |
| Tax rebates | 0.00 | 0.00 |
| Cash generated from other operating activities | 392,751,073.00 | 1,115,844,542.00 |
| Subtotal of cash generated from operating activities | 1,661,977,226.00 | 4,176,373,538.00 |
| Payments for commodities and services | 492,729,509.00 | 610,354,078.00 |
| Cash paid to and for employees | 757,624,819.00 | 1,117,218,033.00 |
| Taxes paid | 245,139,284.00 | 585,318,767.00 |
| Cash used in other operating activities | 1,064,303,277.00 | 26,588,246.00 |
| Subtotal of cash used in operating activities | 2,559,796,889.00 | 2,339,479,124.00 |
| Net cash generated from/used in operating activities | -897,819,663.00 | 1,836,894,414.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 8,005,131.00 | 169,798,594.00 |
| Return on investment | 886,073,757.00 | 468,135,647.00 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 8,482.00 | 0.00 |
| Net proceeds from the disposal of subsidiaries and other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 813,908,196.00 | 2,743,609,848.00 |
| Subtotal of cash generated from investing activities | 1,707,995,566.00 | 3,381,544,089.00 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 512,646,566.00 | 425,914,421.00 |
| Payments for investments | 3,309,208,139.00 | 1,987,008,586.00 |
| Net payments for the acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 8,239,614,905.00 | 8,169,528,356.00 |
| Subtotal of cash used in investing activities | 12,061,469,610.00 | 10,582,451,363.00 |
| Net cash generated from/used in investing activities | -10,353,474,044.00 | -7,200,907,274.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 2,000,000,000.00 |
| Borrowings raised | 4,700,000,000.00 | 18,500,000,000.00 |
| Cash generated from other financing activities | 15,400,000,000.00 | 12,710,000,000.00 |
| Subtotal of cash generated from financing activities | 20,100,000,000.00 | 33,210,000,000.00 |
| Repayment of borrowings | 3,319,000,000.00 | 14,039,500,000.00 |
| Interest and dividends paid | 3,124,115,362.00 | 8,778,110,111.00 |
| Cash used in other financing activities | 6,024,923,290.00 | 282,280,201.00 |
| Subtotal of cash used in financing activities | 12,468,038,652.00 | 23,099,890,312.00 |
| Net cash generated from/used in financing activities | 7,631,961,348.00 | 10,110,109,688.00 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 28,438,446.00 | 6,521,149.00 |
| 5. Net increase in cash and cash equivalents | -3,590,893,913.00 | 4,752,617,977.00 |
| Add: Cash and cash equivalents, beginning of the period | 7,111,879,033.00 | 5,591,885,722.00 |
| 6. Cash and cash equivalents, end of the period | 3,520,985,120.00 | 10,344,503,699.00 |
7. Consolidated Statements of Changes in Owners’ Equity
H1 2023
Unit: RMB
| Item | H1 2023 | ||||||||||||||
| 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. Balance as at the end of the period of prior year | 38,196,363,421.00 | 0.00 | 8,176,366,808.00 | 0.00 | 55,218,504,392.00 | 3,508,201,911.00 | -1,073,768,030.00 | 0.00 | 3,241,063,934.00 | 0.00 | 35,829,351,680.00 | 0.00 | 136,079,680,294.00 | 65,960,886,731.00 | 202,040,567,025.00 |
| Add: Adjustment for change in accounting policy | 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 | |
| Adjustment for correction of previous error | 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 |
| Adjustment for business combination under common control | 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 |
| 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. Balance as at the beginning of the Reporting Period | 38,196,363,421.00 | 0.00 | 8,176,366,808.00 | 0.00 | 55,218,504,392.00 | 3,508,201,911.00 | -1,073,768,030.00 | 0.00 | 3,241,063,934.00 | 0.00 | 35,829,351,680.00 | 0.00 | 136,079,680,294.00 | 65,960,886,731.00 | 202,040,567,025.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | -10,298,610.00 | 0.00 | -6,168,251,533.00 | 0.00 | 107,839,888.00 | -316,197,626.00 | 292,974,279.00 | 56,260,433.00 | 117,522.00 | 0.00 | -1,642,763,597.00 | 0.00 | -7,047,923,992.00 | -989,516,326.00 | -8,037,440,318.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 294,149,500.00 | 0.00 | 0.00 | 0.00 | 735,809,609.00 | 0.00 | 1,029,959,109.00 | -2,293,594,996.00 | -1,263,635,887.00 |
| 3.2 Capital increased and reduced by owners | -10,298,610.00 | 0.00 | -5,967,915,094.00 | 0.00 | 90,695,386.00 | -299,023,729.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -5,588,494,589.00 | 1,357,218,378.00 | -4,231,276,211.00 |
| 3.2.1 Ordinary shares increased 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 | 0.00 | 1,345,108,348.00 | 1,345,108,348.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | -5,967,915,094.00 | 0.00 | -32,084,906.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -6,000,000,000.00 | 0.00 | -6,000,000,000.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 171,294,839.00 | -240,210,572.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 411,505,411.00 | 12,110,030.00 | 423,615,441.00 |
| 3.2.4 Other | -10,298,610.00 | 0.00 | 0.00 | 0.00 | -48,514,547.00 | -58,813,157.00 | 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 | -200,336,439.00 | 0.00 | 0.00 | -17,173,897.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,379,630,905.00 | 0.00 | -2,562,793,447.00 | -73,637,385.00 | -2,636,430,832.00 |
| 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 | -17,173,897.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,296,367,344.00 | 0.00 | -2,279,193,447.00 | -73,637,385.00 | -2,352,830,832.00 |
| 3.3.4 Other | 0.00 | 0.00 | -200,336,439.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -83,263,561.00 | 0.00 | -283,600,000.00 | 0.00 | -283,600,000.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,175,221.00 | 0.00 | 117,522.00 | 0.00 | 1,057,699.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) | 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 |
| 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 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 | -1,175,221.00 | 0.00 | 117,522.00 | 0.00 | 1,057,699.00 | 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 | 56,260,433.00 | 0.00 | 0.00 | 0.00 | 0.00 | 56,260,433.00 | 10,322,148.00 | 66,582,581.00 |
| 3.5.1 Increase in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 97,538,621.00 | 0.00 | 0.00 | 0.00 | 0.00 | 97,538,621.00 | 19,966,628.00 | 117,505,249.00 |
| 3.5.2 Used in the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 41,278,188.00 | 0.00 | 0.00 | 0.00 | 0.00 | 41,278,188.00 | 9,644,480.00 | 50,922,668.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 17,144,502.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 17,144,502.00 | 10,175,529.00 | 27,320,031.00 |
| 4. Balance as at the end of the Reporting Period | 38,186,064,811.00 | 0.00 | 2,008,115,275.00 | 0.00 | 55,326,344,280.00 | 3,192,004,285.00 | -780,793,751.00 | 56,260,433.00 | 3,241,181,456.00 | 0.00 | 34,186,588,083.00 | 0.00 | 129,031,756,302.00 | 64,971,370,405.00 | 194,003,126,707.00 |
H1 2022
Unit: RMB
| Item | H1 2022 | ||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controllin | Total owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital | Less: | Other | Specific | Surplus | Gener | Retained | Othe | Subtotal | |||
| Preferred shares | Perpetual bonds | Other | reserves | Treasury stock | comprehensive income | reserve | reserves | al reserve | earnings | r | g interests | ||||
| 1. Balance as at the end of the period of prior year | 38,445,746,482.00 | 0.00 | 14,146,997,427.00 | 0.00 | 53,917,609,094.00 | 3,415,768,207.00 | 113,551,147.00 | 0.00 | 2,889,590,205.00 | 0.00 | 37,106,514,799.00 | 0.00 | 143,204,240,947.00 | 74,174,525,569.00 | 217,378,766,516.00 |
| Add: Adjustment for change in accounting policy | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -6,403,546.00 | 0.00 | -6,403,546.00 | 0.00 | -6,403,546.00 |
| Adjustment for correction of previous error | 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 |
| Adjustment for business combination under common control | 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 |
| 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. Balance as at the beginning of the Reporting Period | 38,445,746,482.00 | 0.00 | 14,146,997,427.00 | 0.00 | 53,917,609,094.00 | 3,415,768,207.00 | 113,551,147.00 | 0.00 | 2,889,590,205.00 | 0.00 | 37,100,111,253.00 | 0.00 | 143,197,837,401.00 | 74,174,525,569.00 | 217,372,362,970.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 2,059,216,738.00 | 0.00 | 506,929,092.00 | 214,322,569.00 | -484,821,671.00 | 0.00 | 628,334.00 | 0.00 | -1,636,899,832.00 | 0.00 | 230,730,092.00 | -2,532,282,288.00 | -2,301,552,196.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -478,538,335.00 | 0.00 | 0.00 | 0.00 | 6,595,661,738.00 | 0.00 | 6,117,123,403.00 | -3,401,266,356.00 | 2,715,857,047.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 1,989,415,094.00 | 0.00 | 506,559,784.00 | 214,322,569.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,281,652,309.00 | 910,245,590.00 | 3,191,897,899.00 |
| 3.2.1 Ordinary shares increased 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 | 0.00 | 1,073,997,000.00 | 1,073,997,000.00 |
| 3.2.2 Capital increased by holders of other | 0.00 | 0.00 | 1,989,415,094.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,989,415,094.00 | 0.00 | 1,989,415,094.00 |
| equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 305,704,628.00 | -60,417,632.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 366,122,260.00 | 20,365,186.00 | 386,487,446.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 200,855,156.00 | 274,740,201.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -73,885,045.00 | -184,116,596.00 | -258,001,641.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 69,801,644.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -8,238,216,572.00 | 0.00 | -8,168,414,928.00 | -41,261,522.00 | -8,209,676,450.00 |
| 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 | -7,954,814,928.00 | 0.00 | -7,954,814,928.00 | -41,261,522.00 | -7,996,076,450.00 |
| 3.3.4 Other | 0.00 | 0.00 | 69,801,644.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -283,401,644.00 | 0.00 | -213,600,000.00 | 0.00 | -213,600,000.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -6,283,336.00 | 0.00 | 628,334.00 | 0.00 | 5,655,002.00 | 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 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 | -6,283,336.00 | 0.00 | 628,334.00 | 0.00 | 5,655,002.00 | 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 | 369,308.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 369,308.00 | 0.00 | 369,308.00 |
| 4. Balance as at the end of the Reporting Period | 38,445,746,482.00 | 0.00 | 16,206,214,165.00 | 0.00 | 54,424,538,186.00 | 3,630,090,776.00 | -371,270,524.00 | 0.00 | 2,890,218,539.00 | 0.00 | 35,463,211,421.00 | 0.00 | 143,428,567,493.00 | 71,642,243,281.00 | 215,070,810,774.00 |
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023
Unit: RMB
| Item | H1 2023 | |||||||||||
| 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. Balance as at the end of the period of prior year | 38,196,363,421.00 | 0.00 | 8,176,366,808.00 | 0.00 | 53,693,627,213.00 | 3,508,201,911.00 | 340,345.00 | 0.00 | 3,241,063,934.00 | 6,624,620,470.00 | 0.00 | 106,424,180,280.00 |
| Add: Adjustment for change in accounting policy | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustment for correction of previous error | 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. Balance as at the beginning of the Reporting Period | 38,196,363,421.00 | 0.00 | 8,176,366,808.00 | 0.00 | 53,693,627,213.00 | 3,508,201,911.00 | 340,345.00 | 0.00 | 3,241,063,934.00 | 6,624,620,470.00 | 0.00 | 106,424,180,280.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | -10,298,610.00 | 0.00 | -6,168,251,533.00 | 0.00 | 102,805,416.00 | -316,197,626.00 | 24,189,635.00 | 0.00 | 117,522.00 | -861,852,725.00 | 0.00 | -6,597,092,669.00 |
| 3.1 Total comprehens | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 25,364,856.00 | 0.00 | 0.00 | 1,516,720,481.00 | 0.00 | 1,542,085,337.00 |
| ive income | ||||||||||||
| 3.2 Capital increased and reduced by owners | -10,298,610.00 | 0.00 | -5,967,915,094.00 | 0.00 | 102,805,416.00 | -299,023,729.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -5,576,384,559.00 |
| 3.2.1 Ordinary shares increased 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 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | -5,967,915,094.00 | 0.00 | -32,084,906.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -6,000,000,000.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 183,404,869.00 | -240,210,572.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 423,615,441.00 |
| 3.2.4 Other | -10,298,610.00 | 0.00 | 0.00 | 0.00 | -48,514,547.00 | -58,813,157.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | -200,336,439.00 | 0.00 | 0.00 | -17,173,897.00 | 0.00 | 0.00 | 0.00 | -2,379,630,905.00 | 0.00 | -2,562,793,447.00 |
| 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 | -17,173,897.00 | 0.00 | 0.00 | 0.00 | -2,296,367,344.00 | 0.00 | -2,279,193,447.00 |
| 3.3.3 Other | 0.00 | 0.00 | -200,336,439.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -83,263,561.00 | 0.00 | -283,600,000.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,175,221.00 | 0.00 | 117,522.00 | 1,057,699.00 | 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 |
| 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 |
| 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 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 | -1,175,221.00 | 0.00 | 117,522.00 | 1,057,699.00 | 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. Balance as at the end | 38,186,064,811.00 | 0.00 | 2,008,115,275.00 | 0.00 | 53,796,432,629.00 | 3,192,004,285.00 | 24,529,980.00 | 0.00 | 3,241,181,456.00 | 5,762,767,745.00 | 0.00 | 99,827,087,611.00 |
of theReportingPeriod
H1 2022
Unit: RMB
| Item | H1 2022 | |||||||||||
| 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. Balance as at the end of the period of prior year | 38,445,746,482.00 | 0.00 | 14,146,997,427.00 | 0.00 | 53,598,033,152.00 | 3,415,768,207.00 | 89,024,650.00 | 0.00 | 2,889,590,205.00 | 11,950,975,927.00 | 0.00 | 117,704,599,636.00 |
| Add: Adjustment for change in accounting policy | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustment for correction of previous error | 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. Balance as at the beginning of the Reporting Period | 38,445,746,482.00 | 0.00 | 14,146,997,427.00 | 0.00 | 53,598,033,152.00 | 3,415,768,207.00 | 89,024,650.00 | 0.00 | 2,889,590,205.00 | 11,950,975,927.00 | 0.00 | 117,704,599,636.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 2,059,216,738.00 | 0.00 | 326,439,122.00 | 214,322,569.00 | -16,029,629.00 | 0.00 | 628,334.00 | -5,713,681,395.00 | 0.00 | -3,557,749,399.00 |
| 3.1 Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -9,746,293.00 | 0.00 | 0.00 | 2,518,880,175.00 | 0.00 | 2,509,133,882.0 |
| comprehensive income | 0 | |||||||||||
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 1,989,415,094.00 | 0.00 | 326,069,814.00 | 214,322,569.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,101,162,339.00 |
| 3.2.1 Ordinary shares increased 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 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 1,989,415,094.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,989,415,094.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 326,069,814.00 | -60,417,632.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 386,487,446.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 274,740,201.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -274,740,201.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 69,801,644.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -8,238,216,572.00 | 0.00 | -8,168,414,928.00 |
| 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 |
| 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 | -7,954,814,928.00 | 0.00 | -7,954,814,928.00 |
| 3.3.3 Other | 0.00 | 0.00 | 69,801,644.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -283,401,644.00 | 0.00 | -213,600,000.00 |
| 3.4 Transfers within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -6,283,336.00 | 0.00 | 628,334.00 | 5,655,002.00 | 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 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 | -6,283,336.00 | 0.00 | 628,334.00 | 5,655,002.00 | 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 | 369,308.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 369,308.00 |
| 4. Balance | 38,445,746,482.00 | 0.00 | 16,206,214,165.00 | 0.00 | 53,924,472,274.00 | 3,630,090,776.00 | 72,995,021.00 | 0.00 | 2,890,218,539.00 | 6,237,294,532.00 | 0.00 | 114,146,850,23 |
| as at the end of the Reporting Period | 7.00 |
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 five major business divisions,namely, display business, Internet of Things (IoT) innovation business, sensor business, MLED business and smart medicine &engineering business. For information about the Company’s subsidiaries, see Note IX herein.The consolidation scope for consolidated financial statements was determined based on control including the Company and subsidiariescontrolled by the Company.Information about subsidiaries was presented in Note IX.The increase and decrease of subsidiaries 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 EstimatesReminder 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 2023, the consolidated results of operations and results of operationsand the consolidated cash flows and cash flows in the first half year of 2023 of the Company.These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information Disclosuresby Companies Issuing Securities, No. 15: General Requirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“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 normaloperating 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 in accordance with V Significant AccountingPolicies and Estimates-9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements.
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 is nottransitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined at thecombination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paidfor the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If the balance of sharepremium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Group conducting businesscombinations is recognized in current profit and loss. The combination date is the date on which one combining enterprise effectivelyobtains 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 the acquiree’sidentifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities or liabilitysecurities as on combination consideration offering is recognized in initial recording capital on equity securities or liability securities.Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss. The differencebetween the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the acquisition date,recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The acquisition date isthe 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 purchase datewith the difference between the fair value and its book value be recorded in the current investment income or other comprehensiveincome. The other comprehensive income which could be reclassified in the gains and losses afterwards under the measurement of theequity method and the changes of the equities of the other owners that involved with the afterwards equity of the purchases held beforethe purchase date should be transferred in the current investment income. When the equity in the acquiree held before the acquisitiondate is the investment in equity instrument at fair value through other comprehensive income, the other comprehensive incomerecognized before the acquisition date shall be transferred into retained earnings on the acquisition date.
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 its subsidiaries.The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtainvariable returns and is able to influence the amount of returns. When judging whether the Group owns the right on the investees or not,the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed by the Group itselfand by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the consolidated financialstatements 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 in consolidatedincome 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 the sameway 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 common control,the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the consolidatedbalance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the date that commoncontrol was established. Therefore the opening balances and the comparative figures of the consolidated financial statements arerestated.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 income
during 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 calculatedsince the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financialstatements, which together transferred into the current profits and losses in the loss of control , when the Group losing control on itssubsidiary.
(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 the amountof the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If the creditbalance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint OperationsA 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 the participantparty enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement where theparticipant 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 rate atthe date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange ratesat 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 foreign currencyborrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated in foreigncurrencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rate at thedate the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of non-transactionalequity investments designated to be measured at fair value and changes thereof recorded into other comprehensive income, it shall beconsidered as other comprehensive income; other differences 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. The equityitems, 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 of
foreign 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.Note: The determination methods for conversion exchange rates under foreign currency transactions, translation methods for foreigncurrency monetary items at the balance sheet date, accounting treatments for foreign exchange gains and losses, and accountingtreatments for translation of foreign currency financial statements shall be explained.
10. Financial instruments
Financial instruments of the Group include monetary assets, bond investments, equity investments other than long-term equityinvestments, accounts receivable, accounts payable, borrowings, bonds payable, share capital, etc.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the contractual provisionsof a financial instrument.Financial assets and financial liabilities are measured initially at fair value. For financial assets and financial liabilities at fair valuethrough profit or loss, any related directly attributable transaction costs are charged to profit or loss; for other categories of financialassets and financial liabilities, any related directly attributable transaction costs are included in their initial costs. A trade receivablewithout a significant financing component is initially measured at the transaction price according to Accounting Standards for BusinessEnterprises No.14-Revenue.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assetsThe classification of financial assets is generally based on the business model in which a financial asset is managed and its contractualcash flow characteristics. On initial recognition, a financial asset is classified as measured at amortised cost, at fair value through othercomprehensive income (“FVOCI”), or at fair value through profit or loss (“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managingfinancial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following thechange in the business model.A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets;and- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changesin the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis. Theinstrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initialrecognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortisedcost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
The business model refers to how the Group manages its financial assets in order to generate cash flows. That is, the Group’s businessmodel determines whether cash flows will result from collecting contractual cash flows, selling financial assets or both. The Groupdetermines the business model for managing the financial assets according to the facts and based on the specific business objective formanaging the financial assets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual termsof the instrument. For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstandingduring a particular period of time and for other basic lending risks and costs, as well as a profit margin. The Group also assesses whetherthe financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would notmeet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, arerecognised in profit or loss unless the financial assets are part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. A gain or loss on a financial asset that ismeasured at amortised cost and is not part of a hedging relationship shall be recognised in profit or loss when the financial asset isderecognised, reclassified, through the amortisation process or in order to recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, impairment andforeign exchange gains and losses are recognised in profit or loss. Other net gains and losses are recognised in other comprehensiveincome. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss. Other net gains and lossesare recognised in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income arereclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivative financial liability) or it isdesignated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and losses, including any interest expense, arerecognised in profit or loss, unless the financial liabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet, and are not offset. However, a financialasset and a financial liability are offset and the net amount is presented in the balance sheet when both of the following conditions aresatisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；- The Group intends either to settle on a net basis, or to realise the financial asset and settle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of the risks and rewards of ownership of thefinancial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks and rewardsof ownership of the financial asset, it does not retain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the difference between the two amounts belowis recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of derecognition;- the sum of the consideration received from the transfer and, when the transferred financial asset is a debt investment at FVOCI,any cumulative gain or loss that has been recognised directly in other comprehensive income for the part derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;- contract assets;
- debt investments at FVOCI;- lease accounts receivable
Financial assets measured at fair value, including debt investments or equity securities at FVTPL, equity securities designated at FVOCIand derivative financial assets, are not subject to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. thedifference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period (including extension options) over whichthe Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the balance sheetdate (or a shorter period if the expected life of the instrument is less than 12 months).
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECL. ECLs on thesefinancial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors thatare specific to the debtors and an assessment of both the current and forecast general economic conditions at the balance sheet date.Except for accounts receivable, lease accounts receivable and contract assets, the Group measures loss allowance at an amount equalto 12-month ECL for the following financial instruments, and at an amount equal to lifetime ECL for all other financial instruments.
- If the financial instrument is determined to have low credit risk at the balance sheet date;- If the credit risk on a financial instrument has not increased significantly since initial recognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low risk of default, the borrower has a strongcapacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Group comparesthe risk of default occurring on the financial instrument assessed at the balance sheet date with that assessed at the date of initialrecognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimatingECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect onthe debtor’s ability to meet its obligation to the Group.
Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on either anindividual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortised cost and debt investments at FVOCI arecredit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated futurecash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observabledata:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, the Group having granted to the borrower aconcession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial instrument’s credit risk since initial recognition. Anychange in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, exceptfor debt investments that are measured at FVOCI, for which the loss allowance is recognised in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect ofrecovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines that the debtor does nothave assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However,financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures forrecovery of amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal of impairment in profit or loss in theperiod in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is recognised in shareholders’ equity.Consideration and transaction costs paid by the Company for repurchasing self-issued equity instruments are deducted fromshareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. All expenditure relating to the repurchaseis recorded in the cost of the treasury shares, with the transaction recording in the share register. Treasury shares are excluded fromprofit distributions and are presented as a deduction under shareholders’ equity in the balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the extent of the total par value of the treasury sharescancelled. Where the cost of the treasury shares cancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury shares cancelled is less than the total par value, thedifference is credited to the capital reserve (share premium).
When treasury shares are disposed of, any excess of proceeds above cost is recognised in capital reserve (share premium); otherwise,the shortfall is deducted against capital reserve (share premium), surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued or their components as financial assets, financial liabilities orequity instruments based on their contractual terms and their economic substance after considering the definition of financial assets,financial liabilities and equity instruments.Perpetual bonds issued that should be classified as equity instruments are recognised in equity based on the actual amount received.Any distribution of dividends or interests during the instruments’ duration is treated as profit appropriation. When the perpetual bondsare redeemed according to the contractual terms, the redemption price is charged to equity.
11. Notes Receivable
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
12. Accounts Receivable
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
13. Accounts Receivable Financing
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14. Other Receivables
The recognition method and accounting treatment of expected credit losses of other receivablesSee V Significant Accounting Policies and Estimates-10. Financial Instruments for details
15. Inventory
(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 and finishedgoods 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 adopting one-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 production ofinventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net realizablevalue of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities of inventoriesspecified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of inventoriesshall 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 the valueof inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories
The Group maintains a perpetual inventory system.
16. Contract Assets
Contract assets refer to the right that the Group has to charge consideration from customers due to the transfer of commodities to them,and the right depends on other factors than time lapse. If the Group sells two highly distinguishable commodities to a customer, andhas the right to receive payment due to the delivery of one of the commodities, but with the collection of the payment depending onthe delivery of the other, the Group will treat this right of payment as a contract asset.See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
17. Contract Costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfill a contract with a customer.Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would nothave incurred if the contract had not been obtained. The Group recognizes as an asset the incremental costs of obtaining a contract witha customer if it expects to recover those costs. Other costs of obtaining a contract are expensed when incurred. Incremental costsincurred as the Group obtains a contract refer to those costs which will not incur without entering into a contract.If the costs to fulfill a contract with a customer are not within the scope of inventories or other accounting standards, the Grouprecognizes an asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria:
-the costs relate directly to an existing contract or to a specifically identifiable anticipated contract, including direct labor, directmaterials, allocations of overheads (or similar costs), costs that are explicitly chargeable to the customer and other costs that are incurredonly because the Group entered into the contract;-the costs enhance resources of the Group that will be used in satisfying performance obligations in the future;-the costs are expected to be recovered.Assets recognized for the incremental costs of obtaining a contract and assets recognized for the costs to fulfill a contract (the "assetsrelated to contract costs") are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognized in profit or loss for the current period.-The Group recognizes an impairment loss in profit or loss to the extent that the carrying amount of an asset related to contract costsexceeds:
-remaining amount of consideration that the Group expects to receive in exchange for the goods or services to which the asset relates;-the costs that relate directly to providing those goods or services that have not yet been recognized as expenses.
18. Assets Held for Sale
The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of a non-current asset or disposalgroup will be recovered through a sale transaction rather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as a whole in a single transaction andliabilities directly associated with those assets that will be transferred in the transaction.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.The Group measures the non-current assets held for sale, deferred income tax assets and the investment properties be follow-upmeasured by the fair value mode according to the lower one between the book value and the fair value after deducting the net amountof the disposal expenses, while the deference that the book value higher than the fair value which deducted the disposal expenses shouldbe recognized as the impairment losses of the assets.
19. Investments in Debt Obligations
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
20. Other Investments in Debt Obligations
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
21. Long-term Receivables
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
22. 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 the samecontrol that realized step by step of the multiple transaction not belong to package deal, the Company would adjust the capital stockpremium among the capital surplus according to the difference between the initial investment cost of the long-term equity investmentrecognized according to the above principles and the sum of the book value of the long-term equity investment before reaching themerger and the book value of the newly paid consideration which be further received on the merger date, and if the balance of the sharepremium 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 obtainedthrough a business combination involving entities not under common control by two or more transactions and by several steps, theinitial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the acquisition dateheld 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 is acquiredby 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.As for the impairment testing method and impairment provisions for investments in subsidiaries, please refer to V. SignificantAccounting Policies and Estimates-31. Long-term Asset Impairment.
In the Group’s consolidated financial statements, long-term equity investments in subsidiaries are treated in accordance with V.Significant Accounting Policies and Estimates-6. Preparation Method for Consolidated Financial Statements.(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 enjoy therights 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 the equityinvestment difference is amortized using the straight-line method over a period which is determined in accordance with previousaccounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the investment isreduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and losses, othercomprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as “changes ofother owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be enjoyed 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 from transactionsbetween the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interest in the associatesor jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates or jointly controlledenterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment.– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investmentand any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointly controlled enterpriseis reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net profits are subsequentlymade by the associate or jointly controlled enterprise, the Group resumes recognizing its share of those profits only after its share ofthe profits equals the share of losses not recognized.As for the impairment testing method and impairment provisions for investments in joint ventures and associated enterprises, pleaserefer to V. Significant Accounting Policies and Estimates-31. Long-term Asset Impairment.
(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 or jointcontrol over those policies.
23. Investment Property
Measurement model for investment propertyCost measurementMethod of depreciation and amortizationThe 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 through deductingthe predicted net residual value and the accumulated provision reserves from the costs, unless the investment real estate could meetcorresponding held-for-sale conditions. See See V Significant Accounting Policies and Estimates-31. Impairment of Long-term Assetsfor details about methods for impairment testing and impairment provision.The life time, residual rate and yearly depreciation of various investment properties are respectively as follows:
| Item | Life time | Residual rate | Yearly depreciation |
| Land use right | 32-50 years | 0% | 2%-3.1% |
| Houses and buildings | 20-40 years | 0%-10% | 2.3%-5% |
24. 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 to othersor for operation and administrative purposes with useful lives over one year.The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directly attributable expenditure for bringingthe asset to working condition for its intended use. The cost of self-constructed assets is measured in accordance with the policy setout in Note V. Significant Accounting Policies and Estimates-25. Construction in Progress.Where parts of an item of fixed assets have different useful lives or provide benefits to the Group in different patterns thus necessitatinguse of different depreciation rates or methods, each part is recognized as a separate fixed asset.The subsequent costs, including the cost of replacing part of an item of fixed assets, are recorded into fixed asset cost when the economicinterests related to costs may flow into the Group, and the carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit or loss as incurred. Fixed assets are stated in the balance sheet at cost lessaccumulated depreciation and impairment losses, unless that the fixed assets meet the conditions of held-for-sale.
(2) Depreciation Methods
| Category of fixed assets | Depreciation method | Depreciable life | Residual value rate (%) | Yearly depreciation |
| Houses 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% |
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(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
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25. Construction in Progress
The cost of the self-constructed fixed asset including the engineering materials, direct labor, borrowing expenses met with thecapitalization condition (refer to V. Significant Accounting Policies and Estimates-26. Borrowing Costs) and the necessary expenseshappened before the assets reach the expected available state.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.
26. Borrowing Costs
Borrowing costs incurred directly attributable to the acquisition and construction of a qualifying asset are capitalized as part of the costof the asset. Other borrowing costs are recognised as financial expenses when incurred.During the capitalisation period, the amount of interest (including amortisation of any discount or premium on borrowing) to becapitalised in each accounting period is determined as follows:
-Where funds are borrowed specifically for the acquisition and construction of a qualifying asset, the amount of interest to be capitalisedis the interest expense calculated using effective interest rates during the period less any interest income earned from depositing theborrowed funds or any investment income on the temporary investment of those funds before being used on the asset.
-To the extent that the Group borrows funds generally and uses them for the acquisition and construction of a qualifying asset, theamount of borrowing costs eligible for capitalisation is determined by applying a capitalisation rate to the weighted average of theexcess amounts of cumulative expenditure on the asset over the above amounts of specific borrowings. The capitalisation rate is theweighted average of the interest rates applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future cash flow through the expected life of theborrowing or, when appropriate, a shorter period to the initially recognised amount of the borrowings.During the capitalisation period, exchange differences related to the principal and interest on a specific-purpose borrowing denominatedin foreign currency are capitalised as part of the cost of the qualifying asset. The exchange differences related to the principal andinterest on foreign currency borrowings other than a specific-purpose borrowing are recognised as a financial expense when incurred.The capitalisation period is the period from the date of commencement of capitalisation of borrowing costs to the date of cessation ofcapitalisation, excluding any period over which capitalisation is suspended. Capitalisation of borrowing costs commences whenexpenditure for the asset is being incurred, borrowing costs are being incurred and activities of acquisition and construction that arenecessary to prepare the asset for its intended use are in progress, and ceases when the assets become ready for their intended use.When the parts of the qualifying assets acquired or constructed that are eligible for capitalisation are completed separately, and eachpart is available for use in other parts of the construction process or can be sold externally, and for the purpose of making the parts ofthe assets ready for use or necessary for the sales status, the acquisition or construction activities have been substantially completed,the Group ceases the capitalization of the borrowing costs related to the parts of the assets. Capitalisation of borrowing costs issuspended when the acquisition and construction activities are interrupted abnormally for a period of more than three months.
27. Living Assets
Naught
28. Oil and Gas Assets
Naught
29. Right-of-Use Assets
The term "right-of-use assets" refers to the right of the Group as the lessee to use the leased assets during the lease term
(1) Initial measurement
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initiallymeasured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before the commencementdate (less any lease incentives received), any initial direct costs incurred and an estimate of costs to dismantle and remove the underlyingasset or to restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions ofthe lease.
(2) Subsequent measurement
The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase option bythe end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise, theright-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or theend of the lease term. Impairment losses of right-of-use assets are accounted for in accordance with the accounting policy described in
31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates.
30. 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 amortisation (where the estimated useful life is finite) andimpairment losses (see 31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates).(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.The respective amortisation periods for intangible assets are as follows:
| Item | Amortisation period (years) |
| Land use rights | 20 - 50 years |
| Patent and proprietary technology | 5 – 20 years |
| Computer software | 3 – 10 years |
| Others | 5 – 20 years |
Useful lives and amortisation methods of intangible asset with finite useful life are reviewed at least at each year-end. An intangibleasset is regarded as having an indefinite useful life and is not amortized when there is no foreseeable limit to the period over which theasset is expected to generate economic benefits for the Group. At the balance sheet date, the Group doesn’t have any intangible assetswith indefinite useful lives.
(2) Accounting Policies of Internal R & D Expenses
Expenditures 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 less impairmentlosses in the balance sheet (see 31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates).Other development expenditures are recognized as expenses in the period in which they are incurred.
31. 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.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, thecarrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged toprofit 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 set ofasset 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.
32. 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 construction and use of public facilities | 10-15 years |
| Cost of operating lease assets improvement | 2-10 years |
| Others | 2-10 years |
33. Contract Liabilities
Contract liabilities refer to the Company’s obligations in transferring commodities or services to the client for the received or predictedconsideration. Contract assets and contract liabilities under the same contract shall be presented based on the net amount.
34. 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 worker wages,bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and birthinsurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and recordswhich in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
The defined contribution plans participated by the Group including: the basic endowment insurance and unemployment insuranceamong the social security system set up and managed by the government institutions according to the requirements of the relevantChinese regulations 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.
(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 the demissionwelfare 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 and long-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
35. Lease Liabilities
(1) Initial measurement
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discountedusing the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.
(2) Subsequent measurement
A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a correspondingcharge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not included in the measurementof the lease liability are charged to profit or loss or included in the cost of assets where appropriate as incurred.
(3) Remeasurement
Under the following circumstances after the commencement date, the Group remeasures lease liabilities based on the present value ofrevised lease payments:
- there is a change in the amounts expected to be payable under a residual value guarantee;- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or there is a changein the exercise of the extension or termination option.When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or isrecorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 monthsor less and leases of low-value assets. The Group recognises the lease payments associated with these leases in profit or loss or as thecost of the assets where appropriate using the straight-line method or other systematic basis over the lease term.
36. Provisions
A provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimated reliably,and it is probable that an outflow of economic benefits will be required to settle the obligation.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 estimated liabilitiesshould be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the best estimated
number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money related to thecontingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range is the sameand the best estimated number should be recognized according to the mediant within the range; under other circumstance, the bestestimated 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 and therelevant 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.
37. Share-based Payment
The Group conducts accounting treatment in accordance with relevant provisions of the Accounting Standards for Business EnterprisesNo. 11 - Share-based Payment and the application guide.Share-based payment is a transaction in which an enterprise grants equity instruments or takes liabilities based on equity instrumentsin order to obtain services provided by employees and other parties.Share-based payments include equity-settled share-based payment and cash-settled share-based payment.If an equity-settled share-based payment is adopted for services provided by employees, it shall be measured at the fair value of theequity instrument granted to employees.Cash-settled share-based payment shall be measured at the fair value of liabilities calculated and determined on the basis of shares orother equity instruments undertaken by the enterprise.The Group makes corresponding accounting treatment according to the implementation schedule of the equity incentive plan.
(1) Grant date
For an equity-settled share-based payment, if the right can be exercised immediately after the grant, the fair value of the equityinstruments shall, on the grant date, be included in the relevant costs or expenses and the capital reserves shall be increased accordingly.For a cash-settled share-based payment, if the right can be exercised immediately after the grant, the fair value of the obligations borneby the Company shall, on the grant date, be included in the relevant costs or expenses and the obligations shall be increased accordingly.Neither equity-settled share-based payments nor cash-settled share-based payments, except for share-based payments which can beexercised immediately, undergo accounting treatment on the grant date.
(2) Each balance sheet date in the vesting period
Vesting period refers to the period during which the vesting conditions are satisfied.For share-based payments subject to the prescribed period of service, the vesting period is the period from the grant date to the vestingdate. For share-based payments subject to prescribed performance, the length of the vesting period is estimated at the grant date basedon the most likely performance results.For a share-based payment, if the right cannot be exercised until the vesting period ends or until the prescribed performance conditionsare met, on each balance sheet date within the vesting period, the services acquired in the current period shall, based on the best estimateof the information about the exercisable right and at the fair value of the equity instrument on the grant date for equity-settled share-based payments, be included in the costs or expenses and the corresponding obligations. For a cash-settled share-based payment, theservices acquired in the current period shall be included in the costs or expenses and the corresponding obligations at the fair value ofthe obligations borne by the enterprise.
(3) Vesting date
Vesting date refers to the date on which the vesting conditions are satisfied and the employees and other parties have the right to acquireequity instruments or cash from the enterprise.Vesting date refers to the date on which employees and other parties exercise their rights and acquire cash or equity instruments.For an equity-settled share-based payment, no adjustment will be made to the related costs or expenses recognized and to the totalowner's equity after the vesting date. On the vesting date, share capital or treasury stock and share premium shall be recognized basedon the exercise situation, and capital reserves recognized during the vesting period shall be carried forward.For cash-settled share-based payments, the enterprise shall re-measure the fair value of the obligations on each balance sheet date andsettlement date after the vesting date and before the settlement of the relevant obligations, and the changes shall be included in theprofit and loss of the current period. On the vesting date, the recognized obligations shall be carried forward at the time of settlementaccording to the exercise.The share-based payment of the Company was paid with shares settled in equity.
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details.
39. Revenue
Accounting policies for recognition and measurement of revenueRevenue is the gross inflow of economic benefits arising in the course of the Group’s ordinary activities when the inflows result inincrease in shareholders’ equity, other than increase relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in the contract by transferring the control over relevantgoods or services to the customers.Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception ofthe distinct good or service underlying each performance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of the transaction price that is allocated to eachperformance obligation. The stand-alone selling price is the price at which the Group would sell a promised good or service separatelyto a customer. If a stand-alone selling price is not directly observable, the Group considers all information that is reasonably availableto the entity, maximises the use of observable inputs to estimate the stand-alone selling price.
For the contract which the Group grants a customer the option to acquire additional goods or services (such as, loyalty points, discountcoupons for future purchase, etc.,), the Group assesses whether the option provides a material right to the customer. If the optionprovides a material right, the Group recognises the option as a performance obligation, and recognises revenue when those future goodsor services are transferred or when the option expires. If the stand-alone selling price for a customer’s option to acquire additionalgoods or services is not directly observable, the Group estimates it, taking into account all relevant information, including the differencein the discount that the customer would receive when exercising the option or without exercising the option, and the likelihood that theoption will be exercised.
For the contract with a warranty, the Group analyses the nature of the warranty provided, if the warranty provides the customer with adistinct service in addition to the assurance that the product complies with agreed-upon specifications, the Group recognises for thepromised warranty as a performance obligation. Otherwise, the Group accounts for the warranty in accordance with the requirementsof CAS No.13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promisedgoods or services to a customer, excluding amounts collected on behalf of third parties. The Group recognises the transaction priceonly to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occurwhen the uncertainty associated with the variable consideration is subsequently resolved. To determine the transaction price forcontracts in which a customer promises consideration in a form other than cash, the Group measures the non-cash consideration at fairvalue. If the Group cannot reasonably estimate the fair value of the non-cash consideration, the Group measures the considerationindirectly by reference to the stand-alone selling price of the goods or services promised to the customer in exchange for theconsideration. Where the contract contains a significant financing component, the Group recognises the transaction price at an amountthat reflects the price that a customer would have paid for the promised goods or services if the customer had paid cash for those goodsor services when (or as) they transfer to the customer. The difference between the amount of promised consideration and the cashselling price is amortised using an effective interest method over the contract term. The Group does not adjust the consideration forany effects of a significant financing component if it expects, at contract inception, that the period between when the Group transfersa promised good or service to a customer and when the customer pays for that good or service will be one year or less.The Group satisfies a performance obligation over time if one of the following criteria is met; or otherwise, a performance obligationis satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance; or- the Group’s performance does not create an asset with an alternative use to it and the Group has an enforceable right to paymentfor performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time by measuring the progress towards completesatisfaction of that performance obligation. When the outcome of that performance obligation cannot be measured reasonably, but theGroup expects to recover the costs incurred in satisfying the performance obligation, the Group recognises revenue only to the extentof the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Group recognises revenue at the point in time at which the customer obtainscontrol of relevant goods or services. To determine whether a customer has obtained control of goods or services, the Group considersthe following indicators:
- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards of ownership of the goods to the customer;and
- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether it obtains control of the specified good or servicebefore that good or service is transferred to a customer. The Group is a principal if it controls the specified good or service before thatgood or service is transferred to a customer, and recognises revenue in the gross amount of consideration to which it has received (orreceivable). Otherwise, the Group is an agent, and recognises revenue in the amount of any fee or commission to which it expects tobe entitled. The fee or commission is the net amount of consideration that the Group retains after paying the other party the consideration,or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when the Group obtains control of that product, in theamount of consideration to which the Group expects to be entitled in exchange for the product transferred (i.e. excluding the amountof which expected to be returned), and recognises a refund liability for the products expected to be returned. Meanwhile, an asset isrecognised in the amount of carrying amount of the product expected to be returned less any expected costs to recover those products(including potential decreases in the value of returned products), and carry forward to cost in the amount of carrying amount of thetransferred products less the above costs. At the end of each reporting period, the Group updates its assessment of future sales return.If there is any change, it is accounted for as a change in accounting estimate.The Group determines whether the licence transfers to a customer either at a point in time or over time. If all of the following criteriaare met, revenue is recognised for performance obligations satisfied over time. Otherwise, revenue is recognised for performanceobligations satisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake activities that significantly affect theintellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negative effects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as those activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised in exchange for a licence of intellectual property onlywhen (or as) the later of the following events occurs:
- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied).
For a change in the scope or price of a contract that is approved by the parties to the contract, the Group accounts for the contractmodification according to the following situations:
- The addition of promised goods or services are distinct and the price of the contract increases by an amount of considerationreflects stand-alone selling prices of the additional promised goods or services, the Group shall account for a contract modification asa separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from the goods or services transferred on thedate of the contract modification, the Group accounts for the contract modification as if it were a termination of the existing contractand the creation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct from the goods or services transferred onthe date of the contract modification, the Group accounts for the contract modification as if it were a part of the existing contract. Theeffect that the contract modification has on the revenue is recognised as an adjustment to revenue in the reporting period.
A contract asset is the Group’s right to consideration in exchange for goods or services that it has transferred to a customer when thatright is conditional on something other than the passage of time. The Group recognises loss allowances for expected credit loss oncontract assets (See V Significant Accounting Policies and Estimates-10. Financial Instruments for details). Accounts receivable is theGroup’s right to consideration that is unconditional (only the passage of time is required). A contract liability is the Group’s obligationto transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) fromthe customer.The following is the description of accounting policies regarding revenue from the Group’s principal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually contain various trading terms. Depending on the tradingterms, customers obtain control of the goods when the goods are delivered and received, or when they are received by the carrier.Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent that it is highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur. Therefore, the amount of revenue recognised is adjusted for the amountexpected to be returned, which are estimated based on the historical data. The Group recognises a refund liability based on the amountexpected to be returned. An asset is initially measured by reference to the former carrying amount of the product expected to be returnedless any expected costs to recover those products (including potential decreases in the value to the Group of returned products). Ateach balance sheet date, the Group updates the measurement of the refund liability for changes in expectations about the amount offunds. The above asset and liability are adjusted accordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period of time according to the progress of theperformance as the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Groupperforms. Otherwise, for performance obligation satisfied at a point in time, the Group recognises revenue at the point in time at whichthe customer obtains control of relevant services.
Note: accounting policies used in revenue recognition and measurement, and judgments and changes in judgments that materially affectthe determination of the point and amount of revenue recognition include the method for determining the performance progress andthe reasons for adopting the method, the judgment relating to the point at which the customer acquires control of the transferredcommodity, the methods for determining the transaction price, estimating the variable consideration included in the transaction price,apportioning transaction price, and measuring similar obligations such as the funds expected to be returned to the customer.Differences in accounting policies for the recognition of revenue caused by different business models for the same type of businessNaughtNote: if there are differences in revenue recognition accounting policies for similar businesses due to different business models, theyshall be disclosed separately.
40. Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the government to the Group except forcapital contributions from the government in the capacity as an investor in the Group.A government grant is recognised when there is reasonable assurance that the grant will be received and that the Group will complywith the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a governmentgrant is in the form of a transfer of a non-monetary asset, it is measured at fair value.Government grants related to assets are grants whose primary condition is that the Group qualifying for them should purchase, constructor otherwise acquire long-term assets. Government grants related to income are grants other than those related to assets.Those related to daily activities of the Company are included in other income or used to write off related cost based on the nature ofeconomic businesses, or included in non-operating income and expense in respect of those not related to daily activities of the Company.With respect to the government grants related to assets, if the Group first obtains government grants related to assets and then recognizesthe long-term assets purchased and constructed, deferred income is included in profit and loss based on a reasonable and systematicapproach by stages when related assets are initially depreciated or amortized; or the deferred income is written off against the carryingamount of the asset when the asset becomes ready for its intended status or intended use. If the Group obtains government grants relatedto the assets after relevant long-term assets are put into use, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages within the remaining useful life of relevant assets, or the deferred income is written off against thecarrying amount of relevant asset when the grants are obtained; the assets shall be depreciated or amortized based on the carryingamount after being offset and the remaining useful life of relevant assets.For the government grants related to income which 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 directlyincluded in profit and loss or used to offset related 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 as theentry value and relevant borrowing costs are calculated on the basis of the loan principal and the preferential interest rate. If the interestsubsidy is directly appropriated to the Group, relevant borrowing costs shall be offset by corresponding interest subsidy. If borrowingcosts are capitalized as part of the cost of the asset (see Note V. Significant Accounting Policies and Estimates-26. Borrowing Costs),the interest subsidy shall be used to offset relevant asset costs.
Note: Specific criteria for asset-related government subsidies and income-related government subsidies shall be distinguished. If thegovernment document does not specify the subsidy object, the judgment basis for determining the government subsidy is asset-relatedor income-related shall be described. Whether government subsidies adopt the gross method or the net method shall be disclosed. Ifthe gross method is adopted, the amortization method of deferred income related to government subsidies and the recognition methodof the amortization period shall also be disclosed. The time when government subsidies are confirmed shall be disclosed.
41. 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 be carriedforward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets shall berecognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by thedeductible 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 to theinvestments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred incometax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can control thetime of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006 ("previous leases standard"). Under new leasesstandard, the Group no longer distinguishes between operating leases and finance leases. The Group recognises right-of-use assets andlease liabilities for all leases (except for short-term leases and leases of low-value assets which are accounted for using practicalexpedient). The specific accounting treatments are as follows:
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initiallymeasured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before the commencementdate (less any lease incentives received), any initial direct costs incurred and an estimate of costs to dismantle and remove the underlyingasset or to restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions ofthe lease.The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase option bythe end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise, theright-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or theend of the lease term. Impairment losses of right-of-use assets are accounted for in accordance with the accounting policy described in
31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates.The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discountedusing the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a correspondingcharge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not included in the measurementof the lease liability are charged to profit or loss or included in the cost of assets where appropriate as incurred.Under the following circumstances after the commencement date, the Group remeasures lease liabilities based on the present value ofrevised lease payments:
- there is a change in the amounts expected to be payable under a residual value guarantee;- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or there is a changein the exercise of the extension or termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or isrecorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 monthsor less and leases of low-value assets. The Group recognises the lease payments associated with these leases in profit or loss or as thecost of the assets where appropriate using the straight-line method or other systematic basis over the lease term.
2. Lessor
The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a financelease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with reference to the right-of-use asset arising fromthe head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies practicalexpedient described above, then it classifies the sub-lease as an operating lease.Lease receipts from operating leases are recognised as income using the straight-line method or other systematic basis over the leaseterm. The initial direct costs incurred in respect of the operating lease are initially capitalised and subsequently amortised in profit orloss over the lease term on the same basis as the lease income. Variable lease payments not included in lease receipts are recognisedas income as they are earned.
(2) Accounting Treatments of Financial Lease
1. Lessee
New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006 ("previous leases standard"). Under new leasesstandard, the Group no longer distinguishes between operating leases and finance leases. The Group recognises right-of-use assets andlease liabilities for all leases (except for short-term leases and leases of low-value assets which are accounted for using practicalexpedient). The specific accounting treatments are the same as those in 42. Lease (1) Accounting treatment of operating leases 1. Lesseeunder V. Significant Accounting Policies and Accounting Estimates.
2. Lessor
The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a financelease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.Under a finance lease, at the commencement date, the Group recognises the finance lease receivable and derecognises the finance leaseasset. The finance lease receivable is initially measured at an amount equal to the net investment in the lease. The net investment in thelease is measured at the aggregate of the unguaranteed residual value and the present value of the lease receivable that are not receivedat the commencement date, discounted using the interest rate implicit in the lease.The Group calculates and recognises interest income for each period of the lease term based on a fixed periodic interest rate. Thederecognition and impairment of the finance lease receivable are recognised in accordance with the accounting policy described in 10.Financial instruments under V. Significant Accounting Policies and Accounting Estimates. Variable lease payments not included inthe measurement of net investment in the lease are recognised as income as they are earned
43. 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 or joint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under common control only from the State and that have noother related party relationships are not regarded as related parties.In addition to the related parties stated above, the Company determines related parties based on the disclosure requirements ofAdministrative Procedures on the Information Disclosures of Listed Companies issued by the CSRC.
(2) Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the Group’s internalorganisation, management requirements and internal reporting system after taking the materiality principle into account. Two or moreoperating segments may be aggregated into a single operating segment if the segments have the similar economic characteristics and
are same or similar in respect of the nature of each segment’s products and services, the nature of production processes, the types orclasses of customers for the products and services, the methods used to distribute the products or provide the services, and the natureof the regulatory environment.Inter-segment revenues are measured on the basis of the actual transaction prices for such transactions for segment reporting. Segmentaccounting policies are consistent with those for the consolidated financial statements.
(3) Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be approved after the balance sheet date, are notrecognised as a liability at the balance sheet date, but are disclosed in the notes separately.
(4) Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date.When measuring fair value, the Group takes into account the characteristics of the particular asset or liability (including the conditionand location of the asset and restrictions, if any, on the sale or use of the asset) that market participants would consider when pricingthe asset or liability at the measurement date, and uses valuation techniques that are appropriate in the circumstances and for whichsufficient data and other information are available to measure fair value. Valuation techniques mainly include the market approach, theincome approach and the cost approach.
(5) Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer's interest in the fair value of the identifiablenet assets of the acquiree under a business combination not involving entities under common control.Goodwill is not amortised and is stated in the balance sheet at cost less accumulated impairment losses (see 31. Long-term assetimpairment under V. Significant Accounting Policies and Accounting Estimates). On disposal of an asset group or a set of asset groups,any attributable goodwill is written off and included in the calculation of the profit or loss on disposal.
(6) Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensive income) the gain or loss on the hedginginstrument and the hedged item in the same accounting period(s) to represent the effect of risk management.Hedged items are items that expose the Group to risks of changes in fair value or cash flows and that are designated as being hedgedand can be reliably measured. The Group's hedged items include a firm commitment that is settled with a fixed amount of foreigncurrency and that exposes the Group to foreign currency risk.A hedging instrument is a designated financial instrument whose changes in fair value or cash flows are expected to offset changes inthe fair value or cash flows of the hedged item. For a hedge of foreign currency risk, the foreign currency risk component of a non-derivative financial asset or non-derivative financial liability may also be designated as a hedging instrument provided that it is not aninvestment in an equity instrument for which an entity has elected to present changes in the fair value in other comprehensive income.A hedging instrument is a designated financial instrument whose changes in fair value or cash flows are expected to offset changes inthe fair value or cash flows of the hedged item. For a hedge of foreign currency risk, the foreign currency risk component of a non-derivative financial asset or non-derivative financial liability may also be designated as a hedging instrument provided that it is not aninvestment in an equity instrument for which an entity has elected to present changes in the fair value in other comprehensive income.The Group assesses at the inception of a hedging relationship, and on an ongoing basis, whether the hedging relationship meets thehedge effectiveness requirements. A hedging relationship is regarded as having met the hedge effectiveness requirements if all of thefollowing conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.- The effect of credit risk does not dominate the value changes that result from the economic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actuallyhedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of the hedged item.The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis of which it qualified for hedge accounting.- The hedging instrument expires or is sold, terminated or exercised.- There is no longer an economic relationship between the hedged item and the hedging instrument or the effect of credit risk starts todominate the value changes that result from that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.Cash flow hedgesA cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of the gain or loss on a hedging instrument thatis determined to be an effective hedge is recognised in other comprehensive income as a cash flow hedge reserve. The amount of thecash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;- the cumulative change in present value of the expected future cash flows on the hedged item from inception of the hedge.The change in the amount of the cash flow hedge reserve is recognised in other comprehensive income in each period.The portion of the gain or loss on the hedging instrument that is determined to be ineffectiveness is recognised in profit or loss.If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedgedforecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedgeaccounting is applied, the Group removes that amount from the cash flow hedge reserve and includes it in the initial cost or othercarrying amount of the asset or liability.For cash flow hedges other than those covered above, that amount is reclassified from the cash flow hedge reserve to profit or loss asa reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss.When the Group discontinues hedge accounting for a cash flow hedge, the amount of the accumulated cash flow hedge reserverecognised in other comprehensive income is accounted for as follows:
- If the hedged future cash flows are still expected to occur, that amount will remain in the cash flow hedge reserve, and be accountedfor in accordance with the above policy.- If the hedged future cash flows are no longer expected to occur, that amount is immediately reclassified from the cash flow hedgereserve to profit or loss as a reclassification adjustment.
44. 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 |
| On 30 November 2022, the Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business Enterprises. The Company conducted accounting treatment in accordance with this standards with specific contents including: (1) accounting treatment for deferred income tax relating to assets and liabilities arising from a single transaction that is not subject to the initial recognition exemption (2) accounting treatment of the income tax effect of financial instrument related dividend whose issuer is classified as equity instrument (3) accounting treatment of share-based payment in cash settlement modified into share-based payment in equity settlement by the enterprise | Reviewed and approved by the Board of Directors and the Executive Committee | No significant influence on the financial status and operating results of the Company |
Naught
(2) Changes in Accounting Estimates
□Applicable ? Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New AccountingStandards Implemented since 2023? Applicable □ Not applicableNote to adjustmentsThe Company will make corresponding adjustments to relevant accounting policies in accordance with the Notice on Issuing theInterpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) issued by the Ministry of Finance on 30November 2022 (hereinafter referred to as the "Interpretation No. 16").According to Interpretation No. 16, for single transactions that are not business combinations, that affect neither accounting profit nortaxable income (or deductible losses) at the time the transaction occurs, and where the initial recognition of assets and liabilities resultsin taxable temporary differences and deductible temporary differences of equal amounts (including lease transactions in which thelessee recognises the initial lease liability and includes it in the right to use asset at the commencement date of the lease term, as wellas transactions in which estimated liabilities are recognised and included in the costs of related assets due to fixed assets disposalobligations and other disposal obligations, etc. Hereinafter referred to as single transactions that are applicable to this interpretation),exemption from initial recognition of deferred income tax liabilities and deferred income tax assets under Article XI (II) and ArticleXIII of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxes is not applicable. The Company shall recognisethe corresponding deferred income tax liabilities and deferred income tax assets for the taxable temporary differences and deductibletemporary differences arising from the initial recognition of assets and liabilities in respect of the transaction when the transactionoccurs, in accordance with the relevant provisions of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxesand other regulations.According to Interpretation No. 16, the Company started from 1 January 2023 to adjust the retained income brought forward in theearliest period presented in the financial statement and other relevant items of the financial statement based on the accumulated numberof impacts. Interpretation No. 16 has no impact on the parent company's financial statement, and has no significant impact on theconsolidated income statement and consolidated cash flow statement. The impact on the consolidated balance sheet is as follows:
| ? | 31 December 2022 (Unit: RMB） | ||
| Before | After | Adjusted | |
| Deferred income tax assets | 70,250,425.00 | 76,013,149.00? | 5,762,724.00 |
| Deferred income tax liabilities | 1,274,406,833.00 | 1,289,899,658.00 | 15,492,825.00.00 |
| Retained earnings | 35,839,081,781.00? | 35,829,351,680.00? | -9,730,101.00 |
45. Others
NaughtVI. 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, provision of 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%, 13% |
| Consumption tax | Naught | Naught |
| Urban maintenance and construction tax | Based on VAT paid, VAT exemption and offset for the period | 7%, 5% |
| Enterprise income tax | Based on taxable income | 15%-30% |
| Education surcharge and local education surcharge | Based on VAT paid, VAT exemption and offset 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% |
| BOE Mled Technology Co., Ltd. (Mled Technology) | 15% |
| Hefei BOE Display Technology Co., Ltd. | 15% |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 15% |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 15% |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 15% |
| Nanjing BOE Display Technology Co., Ltd. | 15% |
| Chengdu BOE Display 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% |
| Chongqing BOE Intelligent Electronic System Co., Ltd. | 15% |
| Suzhou K-Tronics Co., Ltd. | 15% |
| Beijing BOE Vacuum Electronics Co., Ltd. | 15% |
| Beijing BOE Vacuum Technology Co., Ltd. | 15% |
| BOE Smart IoT Technology Co., Ltd. | 15% |
| Beijing Zhongxiangying Technology Co., Ltd. | 15% |
| Beijing BOE Health Technology Co., Ltd. | 15% |
| Hefei BOE Semiconductor Co., Ltd. | 15% |
| Beijing BOE Energy Technology Co., Ltd. | 15% |
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | 15% |
| Chongqing BOE Electronic Technology Co., Ltd. | 15% |
| Beijing BOE Sensor Technology Co., Ltd. | 15% |
2. Tax Preference
Naught
3. Others
Naught
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Cash at Bank and on Hand
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 735,362.00 | 896,267.00 |
| Bank deposits | 61,100,542,391.00 | 64,769,442,741.00 |
| Other monetary assets | 2,819,583,139.00 | 4,029,968,361.00 |
| Total | 63,920,860,892.00 | 68,800,307,369.00 |
| Of which: the total amount deposited overseas | 6,973,694,228.00 | 5,780,461,058.00 |
| Total amount of restriction in use by guaranteed, pledged or frozen | 2,817,459,430.00 | 4,027,358,544.00 |
Other notes:
N/A
2. Trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financial assets at fair value through profit or loss | 11,595,506,620.00 | 17,187,993,936.00 |
| Of which: | ||
| Wealth management products | 11,299,405,086.00 | 16,931,468,153.00 |
| Equity instrument investment | 296,101,534.00 | 256,525,783.00 |
| 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 | 11,595,506,620.00 | 17,187,993,936.00 |
Other notes:
N/A
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 232,018,976.00 | 211,292,061.00 |
| Commercial acceptance bill | 4,480,677.00 | 500,000.00 |
| Total | 236,499,653.00 | 211,792,061.00 |
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |||||
| Amount | Percentage | Amount | Withdrawal proportion | Amount | Percentage | Amount | Withdrawal proportion | |||
| Notes receivable for which bad debt provision accrued separately | 236,499,653.00 | 100.00% | 0.00 | 0.00% | 236,499,653.00 | 211,792,061.00 | 100.00% | 0.00 | 0.00% | 211,792,061.00 |
| Notes receivable for which bad debt provision accrued by group | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Total | 236,499,653.00 | 100.00% | 0.00 | 0.00% | 236,499,653.00 | 211,792,061.00 | 100.00% | 0.00 | 0.00% | 211,792,061.00 |
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 byreference to the disclosure method of other receivables:
□ Applicable ? Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Others | |||
| N/A | ||||||
Of which bad debt provision reversed or recovered 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 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Total | 0.00 |
(4) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on the Balance 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 | 127,671,333.00 | 29,667,971.00 |
| Commercial acceptance bill | 0.00 | 0.00 |
| Total | 127,671,333.00 | 29,667,971.00 |
(5) Notes Transferred to Accounts Receivable Because Drawer of the Notes Failed to Execute the Contract or Agreement
Unit: RMB
| Item | Amount of the notes transferred to accounts receivable at the period-end |
| Commercial acceptance bill | 0.00 |
| Bank acceptance bill | 0.00 |
| Total | 0.00 |
Other notes: N/A
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
| Item | Amount verified |
| N/A |
Of which, verification of significant notes receivable:
Unit: RMB
| Subsidiary | Nature | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transactions |
| N/A |
Notes of the verification of notes receivable:
N/A
4. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |||||
| Amount | Percentage | Amount | Withdrawal proportion | Amount | Percentage | Amount | Withdrawal proportion | |||
| Accounts receivable for which bad debt provision accrued separately | 1,504,033,885.00 | 5.47% | 48,679,382.00 | 3.24% | 1,455,354,503.00 | 1,421,580,721.00 | 5.02% | 59,921,373.00 | 4.22% | 1,361,659,348.00 |
| Of which: | ||||||||||
| Customers with a high credit risk | 52,734,393.00 | 0.19% | 48,679,382.00 | 92.31% | 4,055,011.00 | 62,016,470.00 | 0.22% | 59,921,373.00 | 96.62% | 2,095,097.00 |
| Customers with a low credit risk | 1,451,299,492.00 | 5.28% | 0.00 | 0.00% | 1,451,299,492.00 | 1,359,564,251.00 | 4.80% | 0.00 | 0.00% | 1,359,564,251.00 |
| Accounts receivable withdrawal of bad debt provision of by portfolio | 25,993,294,070.00 | 94.53% | 63,527,895.00 | 0.24% | 25,929,766,175.00 | 26,901,946,645.00 | 94.98% | 59,958,424.00 | 0.22% | 26,841,988,221.00 |
| Of which: | ||||||||||
| Customers with a moderate credit risk | 25,993,294,070.00 | 94.53% | 63,527,895.00 | 0.24% | 25,929,766,175.00 | 26,901,946,645.00 | 94.98% | 59,958,424.00 | 0.22% | 26,841,988,221.00 |
| Total | 27,497,327,955.00 | 100.00% | 112,207,277.00 | 0.41% | 27,385,120,678.00 | 28,323,527,366.00 | 100.00% | 119,879,797.00 | 0.42% | 28,203,647,569.00 |
Bad debt provision withdrawn separately:
Unit: RMB
| Name | Ending balance | |||
| Book value | Provision for impairment | Withdrawal proportion | Reason for withdrawal | |
BOE Technology Group Co., Ltd. Interim Report 2023
| Customers with high credit risks | 52,734,393.00 | 48,679,382.00 | 92.31% | N/A |
| Customers with low credit risks | 1,451,299,492.00 | 0.00 | 0.00% | N/A |
| Total | 1,504,033,885.00 | 48,679,382.00 |
Bad debt provision accrued by group:
Unit: RMB
| Name | Ending balance | ||
| Book value | Provision for impairment | Withdrawal proportion | |
| Customers with moderate credit risks | 25,993,294,070.00 | 63,527,895.00 | 0.24% |
| Total | 25,993,294,070.00 | 63,527,895.00 | |
Notes of the basis of recognizing the group:
| Customer group | Basis |
| Customers with high credit risks | With special matters, litigations or the deterioration of customers’ credit status |
| Customers with low credit risks | Banks, insurance companies, large state-owned enterprises and public institutions |
| Customers with moderate credit risks | Customers not included in Groups above |
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode of expected credit loss to withdraw bad debt provision ofnotes receivable:
? Applicable □ Not applicableAt all times the Group measures the impairment loss for accounts receivable at an amount equal to lifetime ECLs, and the ECLs are based on the number of overdue days and the expected lossrate. According to the Group’s historical experience, different loss models are applicable to different customer groups.
Disclosed by aging
Unit: RMB
| Ageing | Ending balance |
| Within 1 year (including 1 year) | 26,826,645,982.00 |
| 1 to 2 years | 335,441,275.00 |
| 2 to 3 years | 167,454,054.00 |
| Over 3 years | 167,786,644.00 |
| 3 to 4 years | 101,093,374.00 |
| 4 to 5 years | 48,880,241.00 |
| Over 5 years | 17,813,029.00 |
| Total | 27,497,327,955.00 |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Others | |||
| Bad debt of accounts receivable | 119,879,797.00 | 10,586,284.00 | -19,266,599.00 | -319,846.00 | 1,327,641.00 | 112,207,277.00 |
| Total | 119,879,797.00 | 10,586,284.00 | -19,266,599.00 | -319,846.00 | 1,327,641.00 | 112,207,277.00 |
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
| Subsidiary | Amount reversed or recovered | Way of recovery |
| N/A |
N/A
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Accounts receivable with actual verification | 319,846.00 |
Of which the verification of significant accounts receivable:
Unit: RMB
| Subsidiary | Nature | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transactions |
| N/A |
Verification of accounts receivable:
N/A
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Subsidiary | Ending balance of accounts receivable | Proportion to the total ending balance of accounts receivable | Ending balance of bad debt provisions |
| Sum of top 5 accounts receivable | 8,823,335,291.00 | 32.09% | 0.00 |
| Total | 8,823,335,291.00 | 32.09% |
(5) Accounts Receivable Derecognized Due to the Transfer of Financial AssetsN/A
BOE Technology Group Co., Ltd. Interim Report 2023
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement ofAccounts Receivable
N/AOther notes:
N/A
5. Prepayments
(1) List by Aging Analysis
Unit: RMB
| Ageing | Ending balance | Beginning balance | ||
| Amount | Percentage | Amount | Percentage | |
| Within 1 year | 397,084,894.00 | 77.15% | 471,778,052.00 | 79.99% |
| 1 to 2 years | 100,436,849.00 | 19.51% | 112,700,267.00 | 19.11% |
| 2 to 3 years | 13,385,177.00 | 2.60% | 2,959,783.00 | 0.50% |
| Over 3 years | 3,797,848.00 | 0.74% | 2,326,578.00 | 0.40% |
| Total | 514,704,768.00 | 589,764,680.00 | ||
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The Group did not have prepayments that aged over one year with a significant amount but were not settled in time.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment TargetThe total amount of the prepayment of the top 5 of the Group at the period-end was of RMB245,142,111.00 that covered 48% of thetotal amount of the ending balance of the prepayment at the period-end.Other notes:
N/A
6. Other Accounts Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 22,234,936.00 | 0.00 |
| Other receivables | 601,104,318.00 | 975,809,236.00 |
| Total | 623,339,254.00 | 975,809,236.00 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed time deposit | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Entrusted loan | 0.00 | 0.00 |
| Bond investment | 0.00 | 0.00 |
| Total | 0.00 | 0.00 |
2) Significant Overdue Interest
Unit: RMB
| Borrower | Ending balance | Overdue time | Reason | Whether occurred impairment and its judgment basis |
| N/A |
Other notes:
N/A
3) 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 Electronics Zone High-Tech Group Co., Ltd. | 728,607.00 | 0.00 |
| Bank of Chongqing | 9,945,049.00 | 0.00 |
| Danhua Capital, L.P. | 4,335,480.00 | 0.00 |
| Danhua Capital II, L.P. | 7,225,800.00 | 0.00 |
| Total | 22,234,936.00 | 0.00 |
2) Significant Dividend Receivable Aging Over One Year
Unit: RMB
| Item (or investee) | Ending balance | Ageing | Unrecovered reason | Whether occurred impairment and its judgment basis |
| N/A |
3) Withdrawal of Bad Debt Provision
□ Applicable ? Not applicable
Other notes:
N/A
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Nature of other receivables | Ending carrying balance | Beginning carrying balance |
| Margins and guaranteed deposits | 289,235,691.00 | 598,972,862.00 |
| Amount due from equity transfer | 200,000,000.00 | 200,000,000.00 |
| Others | 121,781,012.00 | 187,448,759.00 |
| Total | 611,016,703.00 | 986,421,621.00 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Provision for impairment | 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 of 1 January 2023 | 0.00 | 0.00 | 10,612,385.00 | 10,612,385.00 |
| Balance of 1 January 2023 in the current period | ||||
| -Transfer to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Transfer to Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawal of the current period | 0.00 | 0.00 | 42,689.00 | 42,689.00 |
| 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 | -742,689.00 | -742,689.00 |
| Other changes | 0.00 | 0.00 | 0.00 | 0.00 |
| Balance of 30 June 2023 | 0.00 | 0.00 | 9,912,385.00 | 9,912,385.00 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable ? Not applicable
Disclosed by aging
Unit: RMB
| Ageing | Ending balance |
| Within 1 year (including 1 year) | 303,936,411.00 |
| 1 to 2 years | 25,426,591.00 |
| 2 to 3 years | 36,252,080.00 |
| Over 3 years | 245,401,621.00 |
| 3 to 4 years | 14,568,084.00 |
| 4 to 5 years | 15,111,877.00 |
| Over 5 years | 215,721,660.00 |
| Total | 611,016,703.00 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or | Write-off | Others | |||
BOE Technology Group Co., Ltd. Interim Report 2023
| recovery | ||||||
| Bad debt provisions for other receivables | 10,612,385.00 | 42,689.00 | 0.00 | -742,689.00 | 0.00 | 9,912,385.00 |
| Total | 10,612,385.00 | 42,689.00 | 0.00 | -742,689.00 | 0.00 | 9,912,385.00 |
N/AOf which bad debt provision reversed or recovered with significant amount:
Unit: RMB
| Subsidiary | Amount reversed or recovered | Way of recovery |
| N/A |
N/A
4) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Customer 1 | 700,000.00 |
| Customer 2 | 42,689.00 |
Of which the verification of significant other accounts receivable:
Unit: RMB
| Subsidiary | Nature | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transactions |
| N/A |
Notes:
N/A
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Subsidiary | Nature | Ending balance | Ageing | Proportion to the total ending balance of other receivables | Ending balance of bad debt provisions |
| Customer A | Equity transfer fee receivable | 200,000,000.00 | Over 5 year | 32.73% | 0.00 |
| Customer B | Security deposit and deposit | 72,258,000.00 | Within 1 year (including 1 year) | 11.83% | 0.00 |
| Customer C | Security deposit and deposit | 56,839,949.00 | Within 1 year (including 1 year) | 9.30% | 0.00 |
| Customer D | Security deposit and deposit | 19,675,966.00 | 1 to 2 years, and 2 to3 years | 3.22% | 0.00 |
| Customer E | Other | 11,495,000.00 | 4 to 5 years | 1.88% | 0.00 |
| Total | 360,268,915.00 | 58.96% | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
6) Accounts Receivable Involving Government Grants
Unit: RMB
| Subsidiary | Project of government grants | Ending balance | Ending aging | Estimated recovering time, amount and basis |
| N/A |
N/A
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial AssetsN/A
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and ContinuedInvolvementN/AOther notes:
N/A
7. Inventories
Whether the Company shall comply with the disclosure requirements for real estate industryNo
(1) Category of Inventories
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Falling price reserves or impairment provision for contract performance costs | Carrying amounts | Book value | Falling price reserves or impairment provision for contract performance costs | Carrying amounts | |
| Raw materials | 10,878,171,767.00 | 2,530,602,975.00 | 8,347,568,792.00 | 11,178,326,632.00 | 2,890,923,826.00 | 8,287,402,806.00 |
| Work in progress | 5,375,523,216.00 | 1,416,714,266.00 | 3,958,808,950.00 | 4,879,573,518.00 | 1,316,529,598.00 | 3,563,043,920.00 |
| Finished goods | 16,981,404,642.00 | 3,972,090,293.00 | 13,009,314,349.00 | 14,699,012,100.00 | 4,072,862,311.00 | 10,626,149,789.00 |
| Consumables | 154,662,425.00 | 0.00 | 154,662,425.00 | 147,843,921.00 | 0.00 | 147,843,921.00 |
| Consumptive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Costs to fulfil a contract with a customer | 160,737,632.00 | 0.00 | 160,737,632.00 | 163,373,789.00 | 0.00 | 163,373,789.00 |
| Goods in transit | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 33,550,499,682.00 | 7,919,407,534.00 | 25,631,092,148.00 | 31,068,129,960.00 | 8,280,315,735.00 | 22,787,814,225.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Falling Price Reserves of Inventories and Impairment Provision for Contract Performance Costs
Unit: RMB
| Item | Beginning balance | Increased amount | Decrease | Ending balance | ||
| Withdrawal | Others | Reverse or write-off | Others | |||
| Raw materials | 2,890,923,826.00 | 208,304,316.00 | 0.00 | 568,625,167.00 | 0.00 | 2,530,602,975.00 |
| Work in progress | 1,316,529,598.00 | 294,269,455.00 | 0.00 | 194,084,787.00 | 0.00 | 1,416,714,266.00 |
| Finished goods | 4,072,862,311.00 | 1,662,682,942.00 | 0.00 | 1,763,454,960.00 | 0.00 | 3,972,090,293.00 |
| Consumables | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Consumptive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Costs to fulfil a contract with a customer | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 8,280,315,735.00 | 2,165,256,713.00 | 0.00 | 2,526,164,914.00 | 0.00 | 7,919,407,534.00 |
N/A
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing ExpenseN/A
(4) Amount of Contract Performance Costs Amortized in the Reporting Period
N/A
8. Contract Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |
| Contract assets | 84,853,547.00 | 0.00 | 84,853,547.00 | 71,636,461.00 | 0.00 | 71,636,461.00 |
| Total | 84,853,547.00 | 0.00 | 84,853,547.00 | 71,636,461.00 | 0.00 | 71,636,461.00 |
The amount of significant changes in the carrying value of contract assets and reason during the Reporting Period:
Unit: RMB
| Item | Amount changed | Reason |
| N/A |
Please refer to the relevant information of disclosure of bad debt provision of other contract assets if adopting the general mode ofexpected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable ? Not applicable
Additions, recoveries or reversals of provision for contract assets during the Reporting Period
Unit: RMB
| Item | Withdrawal of the current period | Reversal of the current period | Write-offs/Verification of the current period | Reason for change |
| N/A |
BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
9. 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 |
| Current portion of long-term receivables | 9,038,005.00 | 8,561,307.00 |
| Total | 9,038,005.00 | 8,561,307.00 |
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 | |
| N/A | ||||||||
Other notes:
N/A
10. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Contract acquisition cost | 0.00 | 0.00 |
| Costs receivables for recovering products from a customer | 108,465,505.00 | 108,097,353.00 |
| VAT on tax credits | 2,727,791,488.00 | 2,556,625,457.00 |
| Input tax to be verified or deducted | 319,634,524.00 | 329,605,466.00 |
| Prepaid income taxes | 3,196,400.00 | 331,652,233.00 |
| Others | 68,916,502.00 | 68,056,410.00 |
| Total | 3,228,004,419.00 | 3,394,036,919.00 |
Other notes:
N/A
11. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
| Item | Ending balance | Beginning balance | Interval of discount rate | ||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | ||
| Finance lease payment | 21,315,882.00 | 0.00 | 21,315,882.00 | 28,637,449.00 | 0.00 | 28,637,449.00 | 4.65%-39.22% |
| Of which: unrealized financing | -21,919,713.00 | 0.00 | -21,919,713.00 | -25,004,361.00 | 0.00 | -25,004,361.00 | 4.65%-39.22% |
BOE Technology Group Co., Ltd. Interim Report 2023
| income | |||||||
| Sales of goods by installments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Rendering of services by installments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total | 21,315,882.00 | 0.00 | 21,315,882.00 | 28,637,449.00 | 0.00 | 28,637,449.00 |
Impairment of bad debt provision
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | 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 2023 | 0.00 | 0.00 | 0.00 | 0.00 |
| Balance of 1 January 2023 in the current period | ||||
| -Transfer to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Transfer to Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawal of the current period | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 2023 | 0.00 | 0.00 | 0.00 | 0.00 |
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable ? Not applicable
N/A
(2) Derecognition of Long-term Receivables due to the Transfer of Financial AssetsN/A
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofLong-term ReceivablesN/AOther notes:
N/A
12. Long-term Equity Investment
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance for impairment provisions | |||||||
| Additional investments | Reduced investments | Profit and loss on investments confirmed according to equity law | Adjustment of other comprehensive income | Other equity movements | Declared distribution of cash dividends or profits | Impairment provisions | Others | ||||
| I. Joint ventures | |||||||||||
| Chongqing Maite Optoelectronics Co., Ltd. | 392,291,560.00 | 0.00 | 0.00 | 8,767,739.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 401,059,299.00 | 0.00 |
| Subtotal | 392,291,560.00 | 0.00 | 0.00 | 8,767,739.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 401,059,299.00 | 0.00 |
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision Component Co., Ltd. | 3,049,888.00 | 0.00 | 0.00 | -19,978.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,029,910.00 | 0.00 |
| Beijing Nittan Electronic Co., Ltd. | 77,049,589.00 | 0.00 | 0.00 | -2,113,779.00 | 0.00 | 0.00 | -800,000.00 | 0.00 | 0.00 | 74,135,810.00 | 0.00 |
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 2,073,333.00 | 0.00 | 350,000.00 | -295,183.00 | 0.00 | 0.00 | -1,428,150.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Erdos BOE Energy Investment Co., Ltd. | 1,811,883,330.00 | 0.00 | 0.00 | -143,926.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,811,739,404.00 | 777,858,312.00 |
| TPV Display Technology (China) Co., Ltd. | 30,237,982.00 | 0.00 | 0.00 | -11,151.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 30,226,831.00 | 0.00 |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 2,034,870,324.00 | 0.00 | 0.00 | 582,469,724.00 | 6,317,985.00 | 0.00 | -173,692,640.00 | 0.00 | 0.00 | 2,449,965,393.00 | 0.00 |
| Beijing Xindongneng Investment Management Co., Ltd. | 13,963,180.00 | 0.00 | 0.00 | 289,640.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 14,252,820.00 | 0.00 |
| Beijing Xloong Technologies Co., Ltd. | 20,544,910.00 | 0.00 | 0.00 | -117,901.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 20,427,009.00 | 0.00 |
| New On Technology Co., Ltd. | 2,162,264.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 69,469.00 | 2,231,733.00 | 2,231,733.00 |
| Cnoga Medical Ltd. | 276,916,033.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10,385,445.00 | 287,301,478.00 | 287,301,478.00 |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Beijing United Ultra High- | 1,210,671.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,210,671.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Definition Video Technology Collaboration Center Co., Ltd. | |||||||||||
| Tianjin Xianzhilian Investment Management Centre (Limited Partnership) | 10,008,807.00 | 0.00 | 0.00 | 4,482,796.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 14,491,603.00 | 0.00 |
| Tianjin Xianzhilian Investment Centre (Limited Partnership) | 1,387,079,224.00 | 380,000,000.00 | 0.00 | 109,632,627.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,876,711,851.00 | 0.00 |
| Beijing Innovation Industry Investment Co., Ltd. | 223,216,553.00 | 0.00 | 0.00 | 10,497,016.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 233,713,569.00 | 0.00 |
| BEHC Industrial Investment Co., Ltd. | 258,149,907.00 | 56,801,200.00 | 0.00 | 131,025.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 315,082,132.00 | 0.00 |
| BOE Houji Technology (Beijing) Co., Ltd. | 3,538,961.00 | 0.00 | 0.00 | -256,395.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,282,566.00 | 0.00 |
| Biochain (Beijing) Science-Technology Inc | 334,093,785.00 | 0.00 | 0.00 | -7,293,446.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 326,800,339.00 | 0.00 |
| Beijing BOE Microbial Technology Co., Ltd. | 5,851,238.00 | 0.00 | 0.00 | -8,286,727.00 | 0.00 | 6,244,275.00 | 0.00 | 0.00 | 0.00 | 3,808,786.00 | 0.00 |
| Hefei Jiangcheng Technology Co., Ltd. | 7,076,713.00 | 0.00 | 0.00 | -3,975,744.00 | 0.00 | 0.00 | 0.00 | 0.00 | -3,100,969.00 | 0.00 | 0.00 |
| BOE Art Cloud Technology Co., Ltd. | 430,598,164.00 | 0.00 | 0.00 | -1,360,158.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 429,238,006.00 | 0.00 |
| Guoke BOE (Shanghai) Equity Investment Management Co., Ltd. | 3,418,472.00 | 0.00 | 0.00 | -1,222,087.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,196,385.00 | 0.00 |
| Beijing Yandong Microelectronic Co., Ltd. | 1,171,247,551.00 | 0.00 | 0.00 | 10,702,283.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,181,949,834.00 | 0.00 |
| Chongqing BOE Smart Private Equity Investment Fund Partnership (Limited Partnership) | 57,545,008.00 | 46,666,667.00 | 0.00 | -1,048,341.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 103,163,334.00 | 0.00 |
| BOE Digital Technology Co., Ltd. | 36,662,344.00 | 0.00 | 0.00 | -668,743.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 35,993,601.00 | 0.00 |
| SES Imagotag SA | 4,883,374,020.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 59,478,657.00 | 4,942,852,677.00 | 0.00 |
| Anhong Technology (Suzhou) Co., Ltd. | 701,649.00 | 1,291,318.00 | 0.00 | -1,757,056.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 235,911.00 | 0.00 |
| Sub-total | 13,086,523,900.00 | 484,759,185.00 | 350,000.00 | 689,634,496.00 | 6,317,985.00 | 6,244,275.00 | -175,920,790.00 | 0.00 | 65,621,931.00 | 14,162,830,982.00 | 1,067,391,523.00 |
| Total | 13,478,815,460.00 | 484,759,185.00 | 350,000.00 | 698,402,235.00 | 6,317,985.00 | 6,244,275.00 | -175,920,790.00 | 0.00 | 65,621,931.00 | 14,563,890,281.00 | 1,067,391,523.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
13. Other Equity Instrument Investment
Unit: RMB
| Item | Ending balance | Beginning balance |
| Beijing Electronics Zone High-Tech Group Co., Ltd. | 76,022,515.00 | 53,614,432.00 |
| Zhejiang BOE Display Technology Co., Ltd. | 321,256.00 | 321,256.00 |
| Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. | 248,776.00 | 248,776.00 |
| Beijing Digital TV National Engineering Laboratory Co., Ltd. | 6,250,000.00 | 6,250,000.00 |
| Qingdao Ultra HD Video Innovation Technology Co., Ltd. | 500,000.00 | 500,000.00 |
| Bank of Chongqing | 93,384,979.00 | 91,600,150.00 |
| New Century Medical Treatment | 8,896,402.00 | 9,098,008.00 |
| Horizon Robotics, Inc. | 36,760,278.00 | 35,616,005.00 |
| Nanjing Xinjiayuan Technology Co., Ltd. | 1,062,926.00 | 1,094,875.00 |
| Danhua Capital, L.P. | 36,129,000.00 | 34,823,000.00 |
| Danhua Capital II, L.P. | 72,258,000.00 | 69,646,002.00 |
| Kateeva Inc. | 86,312,181.00 | 83,192,147.00 |
| Nanosys INC | 22,401,413.00 | 21,591,641.00 |
| Ceribell INC | 9,393,532.00 | 9,053,972.00 |
| Baebies INC | 31,747,904.00 | 30,600,273.00 |
| KA IMAGING INC. | 2,079,347.00 | 2,004,182.00 |
| MOOV INC. | 0.00 | 0.00 |
| Illumina Fund I,L.P. | 33,468,410.00 | 31,079,577.00 |
| ACQIS Technology, Inc. | 1,445,160.00 | 1,392,920.00 |
| Beijing Dongfang Electronic Industry Co. Ltd. | 0.00 | 0.00 |
| Dongfang Xinchuang (Beijing) Automobile Technology Co., Ltd. | 1,375,923.00 | 1,333,090.00 |
| Total | 520,058,002.00 | 483,060,306.00 |
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
| Item | Dividend income recognized | Accumulative gains | Accumulative losses | Amount transferred from other comprehensive income to retained earnings | Reason for being designated at fair value through other comprehensive income | Reason for transferring from other comprehensive income to retained earnings |
| Beijing Electronics Zone High-Tech Group Co., Ltd. | 728,606.00 | 11,114,961.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Zhejiang BOE Display Technology Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. | 0.00 | 3,040,266.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Beijing Digital TV National Engineering Laboratory Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Qingdao Ultra HD Video Innovation Technology Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Bank of Chongqing | 9,772,660.00 | 42,724,097.00 | 0.00 | 0.00 | With intention of | N/A |
BOE Technology Group Co., Ltd. Interim Report 2023
| long-term holding for strategic reasons | ||||||
| New Century Medical Treatment | 0.00 | 0.00 | 131,042,146.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Horizon Robotics, Inc. | 0.00 | 4,805,778.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Nanjing Xinjiayuan Technology Co., Ltd. | 0.00 | 0.00 | 937,074.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Danhua Capital, L.P. | 4,181,160.00 | 24,953,156.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Danhua Capital II, L.P. | 6,968,600.00 | 45,563,349.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Kateeva Inc. | 0.00 | 3,449,715.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Nanosys INC | 0.00 | 0.00 | 27,947,587.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Ceribell INC | 0.00 | 731,249.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Baebies INC | 0.00 | 2,624,350.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| KA IMAGING INC. | 0.00 | 71,827.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| MOOV INC. | 0.00 | 0.00 | 27,862,839.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Illumina Fund I,L.P. | 0.00 | 13,555,863.00 | 0.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| ACQIS Technology, Inc. | 0.00 | 0.00 | 118,800.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
| Beijing Dongfang Electronic Industry Co. | 0.00 | 0.00 | 180,000.00 | 0.00 | With intention of long-term holding | N/A |
BOE Technology Group Co., Ltd. Interim Report 2023
| Ltd. | for strategic reasons | |||||
| Dongfang Xinchuang (Beijing) Automobile Technology Co., Ltd. | 0.00 | 0.00 | 93,480.00 | 0.00 | With intention of long-term holding for strategic reasons | N/A |
Other notes:
N/A
14. Other Non-current Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Equity investment | 2,079,500,212.00 | 2,022,967,681.00 |
| Total | 2,079,500,212.00 | 2,022,967,681.00 |
Other notes:
N/A
15. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
? Applicable □ Not applicable
Unit: RMB
| Item | Houses and buildings | Land use rights | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 1,028,293,708.00 | 687,434,677.00 | 0.00 | 1,715,728,385.00 |
| 2. Increased amount of the period | 14,166,052.00 | 0.00 | 37,381,265.00 | 51,547,317.00 |
| (1) Outsourcing | 0.00 | 0.00 | 0.00 | 0.00 |
| (2)Transfer from inventory/fixed assets/construction in progress | 14,166,052.00 | 0.00 | 0.00 | 14,166,052.00 |
| (3) Business combination increase | 0.00 | 0.00 | 0.00 | 0.00 |
| (4) Other | 0.00 | 0.00 | 37,381,265.00 | 37,381,265.00 |
| 3. Decreased amount of the period | 63,350,533.00 | 0.00 | 0.00 | 63,350,533.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 63,350,533.00 | 0.00 | 0.00 | 63,350,533.00 |
| 4. Ending balance | 979,109,227.00 | 687,434,677.00 | 37,381,265.00 | 1,703,925,169.00 |
| II. Accumulative depreciation and accumulative amortization | ||||
| 1. Beginning balance | 412,062,741.00 | 181,640,506.00 | 0.00 | 593,703,247.00 |
| 2. Increased amount of the period | 7,477,935.00 | 6,512,834.00 | 0.00 | 13,990,769.00 |
| (1)Withdrawal or amortization | 7,477,935.00 | 6,512,834.00 | 0.00 | 13,990,769.00 |
| 3. Decreased amount of the period | 37,691,645.00 | 0.00 | 0.00 | 37,691,645.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 37,691,645.00 | 0.00 | 0.00 | 37,691,645.00 |
| 4. Ending balance | 381,849,031.00 | 188,153,340.00 | 0.00 | 570,002,371.00 |
| III. Depreciation reserves | ||||
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| 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 | 597,260,196.00 | 499,281,337.00 | 37,381,265.00 | 1,133,922,798.00 |
| 1. Beginning carrying value | 616,230,967.00 | 505,794,171.00 | 0.00 | 1,122,025,138.00 |
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable ? Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying amounts | Reason |
| N/A |
Other notes:
N/A
16. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 217,485,104,581.00 | 205,987,050,430.00 |
| Disposal of fixed assets | 0.00 | 0.00 |
| Total | 217,485,104,581.00 | 205,987,050,430.00 |
(1) List of Fixed Assets
Unit: RMB
| Item | Houses & buildings | Equipment | Others | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 65,890,430,033.00 | 297,350,722,399.00 | 12,351,989,023.00 | 375,593,141,455.00 |
| 2. Increased amount of the period | 7,657,551,755.00 | 19,060,523,214.00 | 1,194,627,523.00 | 27,912,702,492.00 |
| (1) Purchase | 238,912,241.00 | 290,578,627.00 | 573,024,603.00 | 1,102,515,471.00 |
| (2)Transfer from construction in progress | 7,407,004,050.00 | 18,767,799,470.00 | 598,981,476.00 | 26,773,784,996.00 |
| (3) Business combination increase | 0.00 | 53,863,890.00 | 13,367,713.00 | 67,231,603.00 |
| (4) Offset of government grants | -3,108,890.00 | -91,642,707.00 | 0.00 | -94,751,597.00 |
| (5) Differences arising from translation of foreign currency-denominated financial statements | 14,744,354.00 | 39,923,934.00 | 9,253,731.00 | 63,922,019.00 |
| 3. Decreased amount of the period | 14,125,047.00 | 821,330,956.00 | 54,082,316.00 | 889,538,319.00 |
| (1) Disposal or scrap | 0.00 | 541,068,478.00 | 54,082,316.00 | 595,150,794.00 |
| (2) Transfer from construction in progress | 0.00 | 280,262,478.00 | 0.00 | 280,262,478.00 |
| (3) Transfer from investment properties | 14,125,047.00 | 0.00 | 0.00 | 14,125,047.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| 4. Ending balance | 73,533,856,741.00 | 315,589,914,657.00 | 13,492,534,230.00 | 402,616,305,628.00 |
| II. Accumulative depreciation | ||||
| 1. Beginning balance | 9,950,729,093.00 | 150,179,918,690.00 | 7,539,650,009.00 | 167,670,297,792.00 |
| 2. Increased amount of the period | 1,241,212,276.00 | 14,019,556,949.00 | 1,057,785,874.00 | 16,318,555,099.00 |
| (1) Withdrawal | 1,239,721,896.00 | 14,004,150,018.00 | 1,054,467,533.00 | 16,298,339,447.00 |
| (2) Differences arising from translation of foreign currency-denominated financial statements | 1,490,380.00 | 15,406,931.00 | 3,318,341.00 | 20,215,652.00 |
| 3. Decreased amount of the period | 28,250.00 | 724,140,032.00 | 32,550,056.00 | 756,718,338.00 |
| (1) Disposal or scrap | 28,250.00 | 473,127,991.00 | 32,550,056.00 | 505,706,297.00 |
| (2) Transfer from construction in progress | 0.00 | 251,012,041.00 | 0.00 | 251,012,041.00 |
| 4. Ending balance | 11,191,913,119.00 | 163,475,335,607.00 | 8,564,885,827.00 | 183,232,134,553.00 |
| III. Depreciation reserves | ||||
| 1. Beginning balance | 34,480.00 | 1,740,161,554.00 | 195,597,199.00 | 1,935,793,233.00 |
| 2. Increased amount of the period | 0.00 | 0.00 | 13,363,140.00 | 13,363,140.00 |
| (1) Withdrawal | 0.00 | 0.00 | 13,363,140.00 | 13,363,140.00 |
| 3. Decreased amount of the period | 0.00 | 47,812,976.00 | 2,276,903.00 | 50,089,879.00 |
| (1) Disposal or scrap | 0.00 | 47,812,976.00 | 2,276,903.00 | 50,089,879.00 |
| (2) Transfer from construction in progress | 0.00 | 20,791,196.00 | 0.00 | 20,791,196.00 |
| 4. Ending balance | 34,480.00 | 1,692,348,578.00 | 206,683,436.00 | 1,899,066,494.00 |
| IV. Carrying value | ||||
| 1. Ending carrying value | 62,341,909,142.00 | 150,422,230,472.00 | 4,720,964,967.00 | 217,485,104,581.00 |
| 2. Beginning carrying value | 55,939,666,460.00 | 145,430,642,155.00 | 4,616,741,815.00 | 205,987,050,430.00 |
(2) Temporarily Idle Fixed Assets
Unit: RMB
| Item | Book value | Accumulated depreciation | Provision for impairment | Carrying amounts | Notes |
| N/A |
(3) Fixed Assets Leased out by Operating Lease
Unit: RMB
| Item | Ending carrying value |
| Fixed assets leased out by operating lease | 96,019,182.00 |
(4) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason for not obtaining ownership certificate |
| None |
Other notesOn 30 June 2023, the carrying value of fixed assets with certificate of title uncompleted totaled RMB6,281,909,591.00, and thecertificate of title was in process.
BOE Technology Group Co., Ltd. Interim Report 2023
(5) Disposal of Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| N/A | ||
| Total | 0.00 | 0.00 |
Other notes:
N/A
17. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
| Construction in progress | 24,587,302,375.00 | 43,386,134,668.00 |
| Engineering materials | 0.00 | 0.00 |
| Total | 24,587,302,375.00 | 43,386,134,668.00 |
(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |
| The 6th generation AMOLED (flexible) production line-Chongqing | 13,836,333,674.00 | 0.00 | 13,836,333,674.00 | 31,013,623,277.00 | 0.00 | 31,013,623,277.00 |
| Others | 10,825,230,788.00 | 74,262,087.00 | 10,750,968,701.00 | 12,446,773,478.00 | 74,262,087.00 | 12,372,511,391.00 |
| Total | 24,661,564,462.00 | 74,262,087.00 | 24,587,302,375.00 | 43,460,396,755.00 | 74,262,087.00 | 43,386,134,668.00 |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginning balance | Increased amount | Transfer in intangible assets | Other decreased amount during the Reporting Period | 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 Period | Sources of funding |
| The 6th generation AMOLED (flexible) production line-Chongqing | 46,500,000,000.00 | 31,013,623,277.00 | 3,002,387,686.00 | 20,064,820,612.00 | 114,856,677.00 | 13,836,333,674.00 | 76.93% | 76.93% | 966,878,443.00 | 342,863,482.00 | 5.45% | Self-raised and borrowings |
| Total | 46,500,000,000.00 | 31,013,623,277.00 | 3,002,387,686.00 | 20,064,820,612.00 | 114,856,677.00 | 13,836,333,674.00 | 966,878,443.00 | 342,863,482.00 | 5.45% |
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
| Item | Withdrawal amount | Reason for withdrawal |
| N/A |
Other notes:
N/A
(4) Engineering Materials
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |
| N/A | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other notes:
N/A
18. Right-of-use Assets
Unit: RMB
| Item | Houses and buildings | Equipment | Others | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 686,288,720.00 | 15,961,065.00 | 198,423,285.00 | 900,673,070.00 |
| 2. Increased amount of the period | 146,018,817.00 | 0.00 | 417,427.00 | 146,436,244.00 |
| (1) Addition | 111,200,352.00 | 0.00 | 400,476.00 | 111,600,828.00 |
| (2) Exchange rate change | 34,818,465.00 | 0.00 | 16,951.00 | 34,835,416.00 |
| 3. Decreased amount of the period | 11,919,291.00 | 0.00 | 0.00 | 11,919,291.00 |
| 4. Ending balance | 820,388,246.00 | 15,961,065.00 | 198,840,712.00 | 1,035,190,023.00 |
| II. Accumulative depreciation | ||||
| 1. Beginning balance | 192,934,379.00 | 510,082.00 | 20,107,663.00 | 213,552,124.00 |
| 2. Increased amount of the period | 88,672,676.00 | 2,682,065.00 | 4,373,877.00 | 95,728,618.00 |
| (1) Withdrawal | 81,322,309.00 | 2,682,065.00 | 4,345,176.00 | 88,349,550.00 |
| (2) Exchange rate change | 7,350,367.00 | 0.00 | 28,701.00 | 7,379,068.00 |
| 3. Decreased amount of the period | 6,458,283.00 | 0.00 | 0.00 | 6,458,283.00 |
| (1) Disposal | 6,458,283.00 | 0.00 | 0.00 | 6,458,283.00 |
| (2) Fluctuation of exchange rate | ||||
| 4. Ending balance | 275,148,772.00 | 3,192,147.00 | 24,481,540.00 | 302,822,459.00 |
| III. Depreciation reserves | ||||
| 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 |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. Carrying value | ||||
| 1. Ending carrying value | 545,239,474.00 | 12,768,918.00 | 174,359,172.00 | 732,367,564.00 |
| 2. Beginning carrying value | 493,354,341.00 | 15,450,983.00 | 178,315,622.00 | 687,120,946.00 |
Other notes:
N/A
19. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use rights | Patent | Non-patent technology | Patent and proprietary technology | Computer software | Others | Total |
| I. Original carrying value | |||||||
| 1. Beginning balance | 5,796,437,186.00 | 0.00 | 0.00 | 5,245,259,551.00 | 1,894,880,882.00 | 704,836,612.00 | 13,641,414,231.00 |
| 2. Increased amount of the period | 508,649,360.00 | 0.00 | 0.00 | 38,807,922.00 | 178,661,056.00 | 4,702,497.00 | 730,820,835.00 |
| (1) Purchase | 508,649,360.00 | 0.00 | 0.00 | 24,854,456.00 | 38,269,087.00 | 3,305,077.00 | 575,077,980.00 |
| (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 | 13,795,530.00 | 854,471.00 | 0.00 | 14,650,001.00 |
| (4) Transfer from construction in progress | 0.00 | 0.00 | 0.00 | 42,717.00 | 139,096,810.00 | 0.00 | 139,139,527.00 |
| (5) Written down with interest subsidies | 0.00 | 0.00 | 0.00 | 0.00 | -547,390.00 | 0.00 | -547,390.00 |
| (6) Exchange difference on translating foreign operations | 0.00 | 0.00 | 0.00 | 115,219.00 | 988,078.00 | 1,397,420.00 | 2,500,717.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 811,593.00 | 0.00 | 811,593.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 811,593.00 | 0.00 | 811,593.00 |
| 4. Ending balance | 6,305,086,546.00 | 0.00 | 0.00 | 5,284,067,473.00 | 2,072,730,345.00 | 709,539,109.00 | 14,371,423,473.00 |
| II. Accumulated amortization | |||||||
| 1. Beginning balance | 660,214,345.00 | 0.00 | 0.00 | 2,562,045,161.00 | 1,192,207,819.00 | 278,619,763.00 | 4,693,087,088.00 |
| 2. Increased amount of the period | 81,870,907.00 | 0.00 | 0.00 | 257,713,808.00 | 98,588,376.00 | 22,952,664.00 | 461,125,755.00 |
| (1) Withdrawal | 81,222,018.00 | 0.00 | 0.00 | 257,598,589.00 | 98,370,835.00 | 22,295,482.00 | 459,486,924.00 |
| (2) Exchange difference on translating foreign operations | 648,889.00 | 0.00 | 0.00 | 115,219.00 | 217,541.00 | 657,182.00 | 1,638,831.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 807,424.00 | 0.00 | 807,424.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 807,424.00 | 0.00 | 807,424.00 |
| 4. Ending balance | 742,085,252.00 | 0.00 | 0.00 | 2,819,758,969.00 | 1,289,988,771.00 | 301,572,427.00 | 5,153,405,419.00 |
| III. Depreciation reserves |
BOE Technology Group Co., Ltd. Interim Report 2023
| 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 | 5,563,001,294.00 | 0.00 | 0.00 | 2,464,308,504.00 | 782,741,574.00 | 407,966,682.00 | 9,218,018,054.00 |
| 2. Beginning carrying value | 5,136,222,841.00 | 0.00 | 0.00 | 2,683,214,390.00 | 702,673,063.00 | 426,216,849.00 | 8,948,327,143.00 |
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 |
| N/A |
Other notes:
N/A
20. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance |
| Formed by business combination | Disposals | |||
| Beijing Yinghe Century Co., Ltd. | 42,940,434.00 | 0.00 | 0.00 | 42,940,434.00 |
| K-Tronics (Suzhou) Technology Co., Ltd. | 8,562,464.00 | 0.00 | 0.00 | 8,562,464.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 4,423,876.00 |
| BOE Healthcare Investment & Management Co., Ltd. | 146,460,790.00 | 0.00 | 0.00 | 146,460,790.00 |
| Chengdu CEC Panda Display Technology Co., Ltd. | 537,038,971.00 | 0.00 | 0.00 | 537,038,971.00 |
| Nanjing BOE Display Technology Co., Ltd. | 155,714,415.00 | 0.00 | 0.00 | 155,714,415.00 |
| Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. | 0.00 | 14,285,847.00 | 0.00 | 14,285,847.00 |
| Total | 895,140,950.00 | 14,285,847.00 | 0.00 | 909,426,797.00 |
(2) Provisions for Impairment of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance |
| Withdrawal | Disposal | |||
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 4,423,876.00 |
| BOE Healthcare Investment & Management Co., Ltd. | 82,137,669.00 | 0.00 | 0.00 | 82,137,669.00 |
| Chengdu CEC Panda Display Technology Co., Ltd. | 147,755,754.00 | 0.00 | 0.00 | 147,755,754.00 |
| Total | 234,317,299.00 | 0.00 | 0.00 | 234,317,299.00 |
Information of assets group or the combination of assets group where goodwill isN/ANotes of the testing process of goodwill impairment, key parameters(growth rate of predictive period in estimating he present value offuture cash flow, grow rate of stable period, profit rate, discount rate, predictive period, etc.) and the recognition method of goodwillimpairment losses:
The recoverable amounts of goodwill of Beijing Yinghe Century Co., Ltd., K-Tronics (Suzhou) Technology Co., Ltd., BOE HealthcareInvestment & Management Co., Ltd., Nanjing BOE Display Technology Co., Ltd., and Chengdu CEC Panda Display Technology Co.,Ltd. were determined based on the expectations of future cash flows. The cash flows in the next five years are determined based on thefinancial budget approved by the Management. For a period longer than five years in the financial budget, the cash flows after the fifthyear are considered stable. For the pre-tax rate of discount, refer to comparable companies and relevant capital structures.The influence of testing goodwillN/AOther notes:
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
21. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount of the period | Other decreased amount | Ending balance |
| Payment for public facilities construction and use | 41,161,291.00 | 0.00 | 4,309,059.00 | 0.00 | 36,852,232.00 |
| Cost of operating lease assets improvement | 19,430,433.00 | 39,332,636.00 | 6,649,562.00 | 0.00 | 52,113,507.00 |
| Others | 496,349,653.00 | 37,968,712.00 | 63,435,355.00 | 0.00 | 470,883,010.00 |
| Total | 556,941,377.00 | 77,301,348.00 | 74,393,976.00 | 0.00 | 559,848,749.00 |
Other notes:
N/A
22. 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 differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for impairment of assets | 150,503,298.00 | 30,661,222.00 | 151,264,910.00 | 31,020,460.00 |
| Internal unrealized profit | 0.00 | 0.00 | 0.00 | 0.00 |
| Deductible tax losses | 478,892.00 | 79,017.00 | 459,130.00 | 75,757.00 |
| Changes in fair value of investments in other equity instruments | 120,139,521.00 | 18,020,928.00 | 142,547,604.00 | 21,382,141.00 |
| Depreciation of fixed assets | 237,498,694.00 | 37,038,752.00 | 239,415,255.00 | 37,326,236.00 |
| Assessed value added by investing real estate in subsidiaries | 117,118,474.00 | 29,279,619.00 | 119,895,400.00 | 29,973,850.00 |
| Government grants | 143,385,420.00 | 21,507,813.00 | 143,385,420.00 | 21,507,813.00 |
| Others | 93,560,670.00 | 16,472,944.00 | 86,936,422.00 | 15,037,373.00 |
| Total | 862,684,969.00 | 153,060,295.00 | 883,904,141.00 | 156,323,630.00 |
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Revaluation due to business combinations involving entities not under common control | 873,050,298.00 | 216,604,513.00 | 882,129,374.00 | 217,980,404.00 |
| Changes in fair value of investment in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 |
| Changes in fair value of investments in other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 |
| Depreciation of fixed assets | 7,538,384,961.00 | 1,135,804,119.00 | 7,266,110,223.00 | 1,094,970,944.00 |
| Long-term equity investments | 120,141,687.00 | 18,021,253.00 | 120,141,687.00 | 18,021,253.00 |
| Others | 214,232,057.00 | 40,540,041.00 | 202,069,699.00 | 39,237,538.00 |
| Total | 8,745,809,003.00 | 1,410,969,926.00 | 8,470,450,983.00 | 1,370,210,139.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(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 the period-end | Ending balance of deferred income tax assets or liabilities after off-set | Mutual set-off amount of deferred income tax assets and liabilities at the period-begin | Beginning balance of deferred income tax assets or liabilities after off-set |
| Deferred tax assets | 76,949,267.00 | 76,111,028.00 | 80,310,481.00 | 76,013,149.00 |
| Deferred tax liabilities | 76,949,267.00 | 1,334,020,659.00 | 80,310,481.00 | 1,289,899,658.00 |
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible temporary differences | 16,597,998,040.00 | 22,749,630,064.00 |
| Deductible tax losses | 49,539,317,772.00 | 44,677,908,573.00 |
| Total | 66,137,315,812.00 | 67,427,538,637.00 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
| Year | Ending amount | Beginning amount | Notes |
| 2023 | 0.00 | 280,957,810.00 | N/A |
| 2024 | 297,735,361.00 | 451,137,106.00 | N/A |
| 2025 | 1,118,946,692.00 | 1,253,378,510.00 | N/A |
| 2026 | 1,456,246,810.00 | 1,473,908,686.00 | N/A |
| 2027 | 3,049,207,566.00 | 3,146,172,377.00 | N/A |
| 2028 | 3,206,619,968.00 | 2,279,355,553.00 | N/A |
| 2029 | 4,822,580,125.00 | 5,008,814,339.00 | N/A |
| 2030 | 4,196,072,639.00 | 4,196,348,029.00 | N/A |
| 2031 | 2,488,369,145.00 | 2,502,424,694.00 | N/A |
| 2032 | 23,381,773,397.00 | 23,569,766,818.00 | N/A |
| 2033 | 5,003,318,431.00 | 0.00 | N/A |
| Others | 518,447,638.00 | 515,644,651.00 | N/A |
| Total | 49,539,317,772.00 | 44,677,908,573.00 |
Other notes:
N/A
23. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |
| Contract acquisition cost | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Costs to fulfil a contract with a customer | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Costs receivables for recovering products from a customer | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Contract assets | 24,104,653.00 | 0.00 | 24,104,653.00 | 42,427,274.00 | 0.00 | 42,427,274.00 |
| Deferred VAT for | 0.00 | 0.00 | 0.00 | 2,696,796.00 | 0.00 | 2,696,796.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| imported equipment | ||||||
| Prepayment for fixed assets | 375,745,428.00 | 0.00 | 375,745,428.00 | 148,834,349.00 | 0.00 | 148,834,349.00 |
| VAT on tax credits | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Prepayments for construction | 522,766,989.00 | 0.00 | 522,766,989.00 | 153,690,890.00 | 0.00 | 153,690,890.00 |
| Prepayment for management fee of loans | 138,858,631.00 | 0.00 | 138,858,631.00 | 161,193,670.00 | 0.00 | 161,193,670.00 |
| Cash deposit | 1,389,080,774.00 | 0.00 | 1,389,080,774.00 | 1,338,834,402.00 | 0.00 | 1,338,834,402.00 |
| Others | 3,150,173,131.00 | 0.00 | 3,150,173,131.00 | 107,844,003.00 | 0.00 | 107,844,003.00 |
| Total | 5,600,729,606.00 | 0.00 | 5,600,729,606.00 | 1,955,521,384.00 | 0.00 | 1,955,521,384.00 |
Other notes:
N/A
24. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loan | 0.00 | 0.00 |
| Mortgage loan | 0.00 | 0.00 |
| Guaranteed loan | 450,737,500.00 | 901,622,500.00 |
| Credit loan | 966,919,154.00 | 1,472,316,371.00 |
| Total | 1,417,656,654.00 | 2,373,938,871.00 |
Notes of category of short-term borrowings:
N/A
(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
| Borrower | Ending balance | Loan interest rate | Overdue time | Overdue charge rate |
| N/A |
Other notes:
N/A
25. Notes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Commercial acceptance bills | 9,260,269.00 | 22,803,013.00 |
| Bank acceptance bills | 782,548,858.00 | 847,418,525.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Total | 791,809,127.00 | 870,221,538.00 |
The total overdue and outstanding notes payable at the period-end were RMB0.00.
26. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Payables to related parties | 102,656,915.00 | 179,047,266.00 |
| Payables to third parties | 31,200,665,816.00 | 29,655,673,198.00 |
| Total | 31,303,322,731.00 | 29,834,720,464.00 |
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| N/A |
Other notes:
N/A
27. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advances from third parties | 87,388,824.00 | 79,660,354.00 |
| Advances from related parties | 226,448.00 | 188,623.00 |
| Total | 87,615,272.00 | 79,848,977.00 |
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| N/A |
Other notes:
N/A
28. Contract Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Sale of goods | 3,063,774,937.00 | 2,411,717,792.00 |
| Total | 3,063,774,937.00 | 2,411,717,792.00 |
The amount of significant changes of carrying value and reason during the Reporting Period:
Unit: RMB
BOE Technology Group Co., Ltd. Interim Report 2023
| Item | Amount changed | Reason |
| N/A |
29. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 2,656,369,348.00 | 8,309,333,260.00 | 8,133,429,295.00 | 2,832,273,313.00 |
| II. Post-employment benefit-defined contribution plans | 58,051,832.00 | 881,231,538.00 | 880,474,008.00 | 58,809,362.00 |
| III. Termination benefits | 104,111,643.00 | 17,435,012.00 | 65,275,430.00 | 56,271,225.00 |
| IV. Other benefits due within one year | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 2,818,532,823.00 | 9,207,999,810.00 | 9,079,178,733.00 | 2,947,353,900.00 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 1,689,488,356.00 | 6,674,704,377.00 | 6,602,678,188.00 | 1,761,514,545.00 |
| 2. Employee welfare | 0.00 | 526,802,788.00 | 526,802,788.00 | 0.00 |
| 3. Social insurance | 45,026,603.00 | 413,471,534.00 | 413,478,185.00 | 45,019,952.00 |
| Of which: Medical insurance premiums | 40,366,802.00 | 376,248,989.00 | 378,108,835.00 | 38,506,956.00 |
| Work-related injury insurance | 2,430,318.00 | 24,323,848.00 | 22,956,759.00 | 3,797,407.00 |
| Maternity insurance | 2,229,483.00 | 12,898,697.00 | 12,412,591.00 | 2,715,589.00 |
| 4. Housing fund | 29,798,139.00 | 492,639,757.00 | 506,163,550.00 | 16,274,346.00 |
| 5. Labor union budget and employee education budget | 871,474,749.00 | 198,924,931.00 | 82,186,592.00 | 988,213,088.00 |
| 6. Short-term compensated absence | 0.00 | 0.00 | 0.00 | 0.00 |
| 7. Short-term profit-sharing plan | 0.00 | 2,730,990.00 | 2,055,109.00 | 675,881.00 |
| 8. Bonus and allowance bond | 20,553,209.00 | 0.00 | 0.00 | 20,553,209.00 |
| 9. Other short-term salary | 28,292.00 | 58,883.00 | 64,883.00 | 22,292.00 |
| Total | 2,656,369,348.00 | 8,309,333,260.00 | 8,133,429,295.00 | 2,832,273,313.00 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 37,012,623.00 | 743,012,340.00 | 744,206,739.00 | 35,818,224.00 |
| 2. Unemployment insurance | 1,320,821.00 | 24,332,995.00 | 24,474,819.00 | 1,178,997.00 |
| 3. Annuity | 19,718,388.00 | 113,886,203.00 | 111,792,450.00 | 21,812,141.00 |
| Total | 58,051,832.00 | 881,231,538.00 | 880,474,008.00 | 58,809,362.00 |
Other notes:
N/A
30. Taxes Payable
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Ending balance | Beginning balance |
| Value-added tax | 155,868,185.00 | 142,337,422.00 |
| Consumption tax | 0.00 | 0.00 |
| Corporate income tax | 606,406,463.00 | 287,859,236.00 |
| Individual income tax | 25,833,227.00 | 48,228,934.00 |
| City maintenance and construction tax | 425,690,980.00 | 428,525,949.00 |
| Education surcharges and local education surcharges | 305,221,274.00 | 306,515,854.00 |
| Others | 117,516,167.00 | 117,933,793.00 |
| Total | 1,636,536,296.00 | 1,331,401,188.00 |
Other notes:
N/A
31. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest payable | 163,348.00 | 151,200.00 |
| Dividends payable | 84,847,829.00 | 6,410,514.00 |
| Other payables | 19,475,669,681.00 | 19,625,661,555.00 |
| Total | 19,560,680,858.00 | 19,632,223,269.00 |
(1) Interest Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loan interest of installment payment of interest and repay the due capital | 0.00 | 0.00 |
| Enterprise bond interest | 0.00 | 0.00 |
| Interest paid for short-term borrowings | 163,348.00 | 151,200.00 |
| Interest of preferred shares/perpetual bonds classified as financial liabilities | 0.00 | 0.00 |
| Others | 0.00 | 0.00 |
| Total | 163,348.00 | 151,200.00 |
Significant overdue and outstanding interests:
Unit: RMB
| Borrower | Overdue amount | Reason |
| N/A |
Other notes:
N/A
(2) Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary share dividends | 84,847,829.00 | 6,410,514.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Dividends of preferred shares/perpetual bonds classified as equity instruments | 0.00 | 0.00 |
| Others | 0.00 | 0.00 |
| Total | 84,847,829.00 | 6,410,514.00 |
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year:
N/A
(3) Other Accounts Payable
1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Projects and equipment | 13,848,999,472.00 | 13,185,841,311.00 |
| Fund transaction | 3,156,283,068.00 | 3,130,038,067.00 |
| Margins and guaranteed deposits | 503,367,375.00 | 505,702,125.00 |
| Restricted stock repurchase obligations | 470,194,635.00 | 753,440,228.00 |
| Pre-withdrawal water and electricity & logistics freight | 302,516,117.00 | 407,770,818.00 |
| External intermediary fees | 138,390,375.00 | 172,851,477.00 |
| Imposition of VAT of imported equipment | 118,071,543.00 | 196,440,706.00 |
| Others | 937,847,096.00 | 1,273,576,823.00 |
| Total | 19,475,669,681.00 | 19,625,661,555.00 |
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| N/A |
Other notes:
N/A
32. Non-current Liabilities Due within One Year
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loans due within 1 year | 20,110,128,285.00 | 21,931,190,138.00 |
| Bonds payable due within 1 year | 0.00 | 0.00 |
| Long-term accounts payable due within 1 year | 48,375,495.00 | 143,117,840.00 |
| Lease liabilities due within 1 year | 134,463,255.00 | 118,302,766.00 |
| Others | 510,500,000.00 | 511,140,000.00 |
| Total | 20,803,467,035.00 | 22,703,750,744.00 |
Other notes:
N/A
33. Other Current Liabilities
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Ending balance | Beginning balance |
| Short-term bonds payable | 0.00 | 0.00 |
| Refund liability | 107,764,172.00 | 101,672,253.00 |
| Warranty provisions | 3,287,824,380.00 | 3,368,859,501.00 |
| Pending output VAT | 144,242,949.00 | 139,462,782.00 |
| Others | 4,433,886.00 | 3,973,137.00 |
| Total | 3,544,265,387.00 | 3,613,967,673.00 |
Increase or decrease in short-term bonds payable:
Unit: RMB
| Debenture | Face value | Issuance date | Maturity period | Issuance amount | Beginning balance | Issued in the Current Period | Interest at face value | Amortization of premium and depreciation | Repayment during the period | Ending balance |
| N/A | ||||||||||
| Total |
Other notes:
N/A
34. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loan | 817,415,210.00 | 941,892,405.00 |
| Mortgage loan | 56,730,979,288.00 | 65,112,313,021.00 |
| Guaranteed loan | 2,795,243,933.00 | 4,231,932,517.00 |
| Credit loan | 60,790,982,796.00 | 52,857,341,747.00 |
| Total | 121,134,621,227.00 | 123,143,479,690.00 |
Notes of the category of long-term borrowings:
N/AOther notes, including the interest rate range:
The interest rate of RMB long-term loans for the Group ranged from 0% to 4.55% in 2023 (2022: from 0% to 5.90%).
35. Lease Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Lease liabilities | 600,388,222.00 | 538,586,010.00 |
| Total | 600,388,222.00 | 538,586,010.00 |
Other notes:
N/A
36. Long-term Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term payables | 212,301,613.00 | 229,587,077.00 |
| Specific payables | 0.00 | 0.00 |
| Total | 212,301,613.00 | 229,587,077.00 |
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term payables | 212,301,613.00 | 229,587,077.00 |
Other notes: N/A
(2) Specific Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Formed reason |
| N/A | |||||
| Total | 0.00 | 0.00 |
Other notes:
N/A
37. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Formed reason |
| Government grants | 5,156,347,332.00 | 1,820,333,412.00 | 2,497,555,233.00 | 4,479,125,511.00 | Government grants |
| Total | 5,156,347,332.00 | 1,820,333,412.00 | 2,497,555,233.00 | 4,479,125,511.00 |
Item involving government grants:
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 | 3,798,389,149.00 | 394,995,517.00 | 0.00 | 259,777,983.00 | 0.00 | 95,298,990.00 | 3,838,307,693.00 | Related to assets |
| Related to income | 1,357,958,183.00 | 1,425,337,895.00 | 0.00 | 2,142,478,260.00 | 0.00 | 0.00 | 640,817,818.00 | Related to income |
| Total | 5,156,347,332.00 | 1,820,333,412.00 | 0.00 | 2,402,256,243.00 | 0.00 | 95,298,990.00 | 4,479,125,511.00 |
Other notes:
N/A
38. Other Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Contract liabilities | 0.00 | 0.00 |
| Contribution of non-controlling interests with redemption provisions | 2,494,840,955.00 | 2,499,075,805.00 |
| Deferred VAT for imported equipment | 0.00 | 0.00 |
| Others | 0.00 | 0.00 |
| Total | 2,494,840,955.00 | 2,499,075,805.00 |
Other notes:
N/A
39. Share Capital
Unit: RMB
| Item | Beginning balance | Increase/decrease (+/-) | Ending balance | ||||
| New issues | Bonus shares | Bonus issue from profit | Others | Sub-total | |||
| Total shares | 38,196,363,421.00 | 0.00 | 0.00 | 0.00 | -10,298,610.00 | -10,298,610.00 | 38,186,064,811.00 |
Other notes:
BOE Technology Group Co., Ltd. Interim Report 2023
N/A
40. Other Equity Instrument
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End of the Period
| Outstanding financial instruments | Issuance date | Accounting classification | Interest rate | Issuance price | Quantity | Amount | Maturity date or renewal status | Conditions for conversion | Conversion status |
| 20BOEY1 | 28 February 2020 | Equity instrument | 3.64% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable |
| 20BOEY2 | 19 March 2020 | Equity instrument | 3.54% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable |
| 20BOEY3 | 27 April 2020 | Equity instrument | 3.50% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable |
| 22BOEY1 | 25 March 2022 | Equity instrument | 3.50% | RMB 100/bond | 20 million | RMB 2 billion | 3+N years | Not applicable | Not applicable |
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End of the Period
Unit: RMB
| Outstanding financial instruments | Period-beginning | Increase | Decrease | Period-end | ||||
| Quantity | Carrying amounts | Quantity | Carrying amounts | Quantity | Carrying amounts | Quantity | Carrying amounts | |
| 20BOEY1 | 20,000,000.00 | 2,050,610,478.00 | 0.00 | 11,368,767.00 | 20,000,000.00 | 2,061,979,245.00 | 0.00 | 0.00 |
| 20BOEY2 | 20,000,000.00 | 2,045,184,865.00 | 0.00 | 14,935,890.00 | 20,000,000.00 | 2,060,120,755.00 | 0.00 | 0.00 |
| 20BOEY3 | 20,000,000.00 | 2,037,168,519.00 | 0.00 | 22,246,575.00 | 20,000,000.00 | 2,059,415,094.00 | 0.00 | 0.00 |
| 22BOEY1 | 20,000,000.00 | 2,043,402,946.00 | 0.00 | 34,712,329.00 | 0.00 | 70,000,000.00 | 20,000,000.00 | 2,008,115,275.00 |
| Total | 80,000,000.00 | 8,176,366,808.00 | 0.00 | 83,263,561.00 | 60,000,000.00 | 6,251,515,094.00 | 20,000,000.00 | 2,008,115,275.00 |
Changes in other equity instruments for the Current Period, explanation on reasons for the changes and basis for related accounting treatment:
On 30 June 2023, as the issued renewable corporate bonds aforementioned are classified as cumulative other equity instruments, the Company accrued interest of RMB83,263,561.00 on renewablecorporate bonds from undistributed profits and paid interest of RMB283,600,000.00.Other notes:
N/A
41. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium (premium on stock) | 53,831,291,956.00 | 0.00 | 222,408,531.00 | 53,608,883,425.00 |
| Other capital reserves | 1,387,212,436.00 | 330,248,419.00 | 0.00 | 1,717,460,855.00 |
| Total | 55,218,504,392.00 | 330,248,419.00 | 222,408,531.00 | 55,326,344,280.00 |
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
N/A
42. Treasury Shares
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Repurchase of public shares | 3,508,201,911.00 | 0.00 | 316,197,626.00 | 3,192,004,285.00 |
| Total | 3,508,201,911.00 | 0.00 | 316,197,626.00 | 3,192,004,285.00 |
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
N/A
43. 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 period and transferred in profit or loss in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred in retained earnings in the Current Period | Less: Income tax expense | Net-of-tax amount attributable to shareholders of the Company | Net-of-tax amount attributable to non-controlling interests | |||
| I. Other comprehensive income that will not be reclassified to profit or loss | -121,272,681.00 | 28,824,098.00 | 0.00 | 1,175,221.00 | 5,574,526.00 | 22,074,351.00 | 0.00 | -99,198,330.00 |
| Of which: Changes caused by re-measurements 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 | 121,391,777.00 | 6,317,985.00 | 0.00 | 1,175,221.00 | 0.00 | 5,142,764.00 | 0.00 | 126,534,541.00 |
| Changes in fair value of investments in other equity instruments | -242,664,458.00 | 22,506,113.00 | 0.00 | 0.00 | 5,574,526.00 | 16,931,587.00 | 0.00 | -225,732,871.00 |
| 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 | -952,495,349.00 | 380,698,468.00 | 0.00 | 0.00 | 0.00 | 270,899,928.00 | 109,798,540.00 | -681,595,421.00 |
| Of which: Other comprehensive income that will be reclassified to profit or loss under equity method | -156,851.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -156,851.00 |
| Changes in fair value of investment in other debt obligations | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| of investment in other debt obligations | ||||||||
| Reserves for cash flow hedges | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Translation differences arising from translation of foreign currency financial statements | -952,338,498.00 | 380,698,468.00 | 0.00 | 0.00 | 0.00 | 270,899,928.00 | 109,798,540.00 | -681,438,570.00 |
| Total of other comprehensive income | -1,073,768,030.00 | 409,522,566.00 | 0.00 | 1,175,221.00 | 5,574,526.00 | 292,974,279.00 | 109,798,540.00 | -780,793,751.00 |
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:
N/A
44. Specific reserve
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Production safety reserve | 0.00 | 97,538,621.00 | 41,278,188.00 | 56,260,433.00 |
| Total | 0.00 | 97,538,621.00 | 41,278,188.00 | 56,260,433.00 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
N/A
45. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserve | 2,951,392,625.00 | 117,522.00 | 0.00 | 2,951,510,147.00 |
| Discretionary surplus reserve | 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 | 3,241,063,934.00 | 117,522.00 | 0.00 | 3,241,181,456.00 |
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
N/A
46. Retained Profits
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Opening balance of retained profits before adjustments | 35,829,351,680.00 | 37,106,514,799.00 |
| Total beginning balance of retained profits before adjustments (increase+, decrease-) | 0.00 | -9,730,101.00 |
| Beginning balance of retained profits after adjustments | 35,829,351,680.00 | 37,096,784,698.00 |
| Add: Net profit attributable to owners of the Company as the parent | 735,809,609.00 | 7,550,877,790.00 |
| Less: Appropriation for statutory surplus reserve | 0.00 | 348,186,351.00 |
| Withdrawal of discretional surplus reserves | 0.00 | 0.00 |
| Withdrawal of general reserve | 0.00 | 0.00 |
| Dividends to ordinary shares | 2,296,367,344.00 | 7,958,923,130.00 |
| Dividend of common stock transferred into share capital | 0.00 | 0.00 |
| Interest on holders of other equity instruments | 83,263,561.00 | 530,695,890.00 |
| Transfer of other comprehensive income to retained earnings | -1,057,699.00 | -19,494,563.00 |
| Other | 0.00 | 0.00 |
| Retained earnings | 34,186,588,083.00 | 35,829,351,680.00 |
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting Standardsfor 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.
BOE Technology Group Co., Ltd. Interim Report 2023
(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.
47. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Income | Cost | Income | Cost | |
| Principal activities | 78,056,831,790.00 | 71,421,814,017.00 | 89,179,455,575.00 | 72,658,074,746.00 |
| Other operating activities | 2,121,043,430.00 | 1,512,031,439.00 | 2,430,786,294.00 | 1,840,993,616.00 |
| Total | 80,177,875,220.00 | 72,933,845,456.00 | 91,610,241,869.00 | 74,499,068,362.00 |
Relevant information of revenue:
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Total |
| Types of products | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By operating places | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By types of market or customers | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| Types of contracts | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By the time of transferring goods | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By contract term | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By marketing channel | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| Total | 0.00 | 0.00 | 0.00 |
Information related to performance obligations:
Generally, the Group assumes the performance obligations of merchandise sales and services for customers. For merchandise sales, ifterms of sales returns are offered, the limit of income recognition is that cumulated recognised income most likely will not havesignificant returns. In terms of performance obligations to be performed within a certain period of time, income is recognised accordingto the performance progress. Quality assurance provided by customers generally is guaranteed quality assurance. Such guaranteedquality assurance will not be regarded as a single performance obligation.Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet wasRMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in 0 year, RMB0.00 in 0 year and RMB0.00 in 0year.Other notes:
N/A
48. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Consumption tax | 0.00 | 0.00 |
| City maintenance and construction tax | 79,884,109.00 | 131,231,387.00 |
| Education Surcharge | 58,436,254.00 | 94,462,019.00 |
| Resources tax | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Property tax | 286,396,295.00 | 284,268,154.00 |
| Land use tax | 28,677,316.00 | 24,478,318.00 |
| Vehicle and vessel tax | 0.00 | 0.00 |
| Stamp duty | 74,697,903.00 | 82,804,123.00 |
| Others | 12,442,850.00 | 10,590,517.00 |
| Total | 540,534,727.00 | 627,834,518.00 |
Other notes:
N/A
49. Selling Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Warranty provisions | 1,088,263,993.00 | 956,829,173.00 |
| Staff cost | 515,360,662.00 | 578,952,537.00 |
| Share payments | 25,496,986.00 | 46,359,186.00 |
| Others | 298,341,655.00 | 280,338,572.00 |
| Total | 1,927,463,296.00 | 1,862,479,468.00 |
Other notes:
N/A
50. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Staff cost | 1,426,764,708.00 | 1,599,827,857.00 |
| Maintenance fees | 19,889,386.00 | 18,250,114.00 |
| Depreciation and amortization | 477,193,704.00 | 413,687,986.00 |
| Share payments | 64,712,156.00 | 110,814,289.00 |
| Others | 744,774,627.00 | 806,018,983.00 |
| Total | 2,733,334,581.00 | 2,948,599,229.00 |
Other notes:
N/A
51. Development Costs
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Staff cost | 2,214,105,050.00 | 2,400,991,826.00 |
| Material expenses | 836,275,235.00 | 920,452,382.00 |
| Depreciation and amortization | 1,080,150,516.00 | 1,003,150,020.00 |
| Equity incentives | 69,400,282.00 | 124,763,007.00 |
| Others | 1,067,078,780.00 | 912,647,583.00 |
| Total | 5,267,009,863.00 | 5,362,004,818.00 |
Other notes:
N/A
52. Finance costs
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest expense | 1,838,822,216.00 | 1,503,427,051.00 |
| Interest income | -978,583,668.00 | -651,030,668.00 |
| Net loss on exchange | -461,917,499.00 | -244,097,140.00 |
| Others | 38,548,045.00 | 45,813,561.00 |
| Total | 436,869,094.00 | 654,112,804.00 |
Other notes:
N/A
53. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Government grants related to assets | 259,777,983.00 | 439,754,949.00 |
| Government grants related to income | 2,460,713,617.00 | 2,518,837,330.00 |
| Others | 25,538,124.00 | 18,260,284.00 |
| Total | 2,746,029,724.00 | 2,976,852,563.00 |
54. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Income from long-term equity investments accounted for using equity method | 698,402,235.00 | 586,980,332.00 |
| Investment income from disposal of long-term equity investments | 1,581,850.00 | 0.00 |
| Investment income arising from holding of trading financial assets | 8,641,691.00 | 0.00 |
| Investment income from disposal of financial assets held for trading | 43,836,393.00 | 44,551,952.00 |
| Dividend income received from holding of other equity instrument investment | 21,651,026.00 | 14,635,391.00 |
| Gain from remeasurement of remaining equity interests to fair value upon the loss of control | 0.00 | 0.00 |
| Interest income of investment in debt obligations during holding period | 0.00 | 0.00 |
| Interest income of investment in other debt obligations during holding period | 0.00 | 0.00 |
| Investment income from disposal of investment in other debt obligations | 0.00 | 0.00 |
| Gains from debt restructuring | 0.00 | 0.00 |
| Other | 1,185,847.00 | 0.00 |
| Total | 775,299,042.00 | 646,167,675.00 |
Other notes:
N/A
55. Gains from Changes in Fair Value
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Financial assets held for trading | 167,439,034.00 | 77,771,038.00 |
| 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 | 167,439,034.00 | 77,771,038.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
56. Credit Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Bad debt loss of other receivables | -42,689.00 | -28,243.00 |
| Impairment loss of investment in debt obligations | 0.00 | 0.00 |
| Impairment loss of investment in other debt obligations | 0.00 | 0.00 |
| Bad debt loss of long-term receivables | 0.00 | 0.00 |
| Bad debt loss of accounts receivables | 8,521,863.00 | -19,967,284.00 |
| Total | 8,479,174.00 | -19,995,527.00 |
Other notes:
N/A
57. Asset Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| I. Bad debt loss | 0.00 | 0.00 |
| II. Loss on inventory valuation and contract performance cost | -1,043,297,559.00 | -4,520,260,362.00 |
| III. Impairment losses on long-term equity investment | 0.00 | -8,199,181.00 |
| IV. Impairment losses on investment property | 0.00 | 0.00 |
| V. Fixed assets impairment losses | -13,363,142.00 | 0.00 |
| VI. Impairment losses on engineering materials | 0.00 | 0.00 |
| VII. Impairment losses on construction in progress | 0.00 | 0.00 |
| VIII. Impairment losses on productive living assets | 0.00 | 0.00 |
| IX. Impairment losses on oil and gas assets | 0.00 | 0.00 |
| X. Impairment losses on intangible assets | 0.00 | 0.00 |
| XI. Goodwill impairment losses | 0.00 | 0.00 |
| XII. Impairment Losses of Contract Assets | 0.00 | 0.00 |
| XIII. Others | 0.00 | 0.00 |
| Total | -1,056,660,701.00 | -4,528,459,543.00 |
Other notes:
N/A
58. Asset Disposal Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| (Loss) on/gains from disposal of fixed assets | 8,393,532.00 | 3,590,536.00 |
| Gains from disposal of right-of-use assets | 866,428.00 | -4,975.00 |
| Gains from disposal of assets held for sale | 0.00 | 16,044.00 |
| Gains from disposal of intangible assets | 0.00 | 0.00 |
| Loss on disposal of construction in progress | 12,600.00 | 0.00 |
| Total | 9,272,560.00 | 3,601,605.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
59. 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 non-monetary assets exchange | 0.00 | 0.00 | 0.00 |
| Donations accepted | 5,025.00 | 2,000.00 | 5,025.00 |
| Government grants | 213,595.00 | 1,761,349.00 | 213,595.00 |
| Others | 195,719,741.00 | 97,822,833.00 | 195,719,741.00 |
| Total | 195,938,361.00 | 99,586,182.00 | 195,938,361.00 |
Government grants 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 |
| Policy incentives and others | Government | Rewards | Grants obtained due to compliance with local supporting policies, such as investment attraction policies | Yes | No | 213,595.00 | 1,761,349.00 | Related to income |
Other notes:
N/A
60. Non-operating Expense
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Non-monetary asset exchange losses | 0.00 | 0.00 | 0.00 |
| Donations provided | 1,726,822.00 | 1,808,206.00 | 1,726,822.00 |
| Loss on scrap of non-current assets | 25,712,531.00 | 9,362,295.00 | 25,712,531.00 |
| Others | 4,227,035.00 | 6,254,995.00 | 4,227,035.00 |
| Total | 31,666,388.00 | 17,425,496.00 | 31,666,388.00 |
Other notes:
N/A
61. Income Tax Expense
(1) List of Income Tax Expense
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Current income tax expense | 782,932,000.00 | 1,657,492,994.00 |
| Deferred income tax expense | 37,600,936.00 | 23,831,250.00 |
| Total | 820,532,936.00 | 1,681,324,244.00 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | -847,050,991.00 |
| Current income tax expense accounted at statutory/applicable tax rate | 0.00 |
| Influence of applying different tax rates by subsidiaries | 36,062,087.00 |
| Influence of income tax before adjustment | 0.00 |
| Influence of non-taxable income | -109,291.00 |
| Effect of non-deductible costs, expense and losses | 2,640,938.00 |
| Influence of deductible loss of unrecognized deferred income tax assets in prior period | -137,234,044.00 |
| Influence of deductible temporary difference or deductible loss of unrecognized deferred income tax assets in the Reporting Period | 1,051,048,907.00 |
| Others | -131,875,661.00 |
| Income tax expenses | 820,532,936.00 |
Other notes:
N/A
62. Other Comprehensive Income
Refer to Notes 43 for details.
63. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Government grants related to income | 2,761,847,535.00 | 4,610,789,391.00 |
| Restricted deposits and others | 558,103,572.00 | 973,645,438.00 |
| Total | 3,319,951,107.00 | 5,584,434,829.00 |
Cash generated from other operating activities:
N/A
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Daily expenditure paid | 1,703,860,982.00 | 2,141,762,138.00 |
| Daily operation margins, deposits, and others paid | 854,866,812.00 | 438,014,471.00 |
| Total | 2,558,727,794.00 | 2,579,776,609.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Cash used in other operating activities:
N/A
(3) Cash Generated from Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest income from investment activities | 878,583,608.00 | 604,391,438.00 |
| Recovery of restricted deposits with financial institutions | 1,224,495,078.00 | 0.00 |
| Investment-based margins and others received | 6,166,721.00 | 22,694,954.00 |
| Total | 2,109,245,407.00 | 627,086,392.00 |
Cash generated from other investing activities:
N/A
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Increase in restricted deposits in financial institutions | 0.00 | 658,308,951.00 |
| Investment-based margins and others returned | 11,541,974.00 | 422,030,612.00 |
| Total | 11,541,974.00 | 1,080,339,563.00 |
Cash used in other investing activities:
N/A
(5) Cash Generated from Other Financing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Recovery of restricted deposits in financial institutions | 1,528,590.00 | 0.00 |
| Dividends of A and B shares returned and others | 0.00 | 5,212,625.00 |
| Total | 1,528,590.00 | 5,212,625.00 |
Cash generated from other financing activities:
N/A
(6) Cash Used in Other Financing Activities
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Repurchase of shares | 2,771,603,700.00 | 274,740,201.00 |
| Repayment of perpetual bonds | 6,000,000,000.00 | 0.00 |
| Leasing-related principals and interests and others | 242,937,365.00 | 658,251,005.00 |
| Total | 9,014,541,065.00 | 932,991,206.00 |
Cash used in other financing activities:
N/A
64. 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 | -1,667,583,927.00 | 3,212,916,923.00 |
| Add: Provision for impairment of assets | 1,048,181,527.00 | 4,548,455,070.00 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 16,438,531,529.00 | 16,649,076,929.00 |
| Depreciation of right-to-use assets | 86,990,672.00 | 74,631,909.00 |
| Amortization of intangible assets | 444,129,765.00 | 480,460,970.00 |
| Amortization of long-term deferred expenses | 89,102,010.00 | 79,302,831.00 |
| Losses on disposal of fixed assets, intangible assets and other long-lived assets (gains: negative) | -9,272,560.00 | -3,601,605.00 |
| Losses on scrap of fixed assets (gains: negative) | 21,497,303.00 | 5,081,737.00 |
| Losses from variation of fair value (gains: negative) | -167,439,034.00 | -77,771,038.00 |
| Finance costs (gains: negative) | 1,093,562,434.00 | 1,687,897,812.00 |
| Investment loss (gains: negative) | -775,299,042.00 | -646,167,675.00 |
| Decrease in deferred income tax assets (gains: negative) | -27,116,549.00 | 3,698,440.00 |
| Increase in deferred income tax liabilities (“-” means decrease) | 102,428,281.00 | 20,929,956.00 |
| Decrease in inventory (gains: negative) | -3,863,870,302.00 | -9,786,577,845.00 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | 1,164,869,933.00 | 10,599,972,473.00 |
| Increase in accounts payable used in operating activities (decrease: negative) | 2,708,785,180.00 | 1,146,723,792.00 |
| Others | -443,828,097.00 | 116,969,986.00 |
| Net cash inflow from operating activities | 16,243,669,123.00 | 28,112,000,665.00 |
| 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 | 60,588,316,876.00 | 79,805,078,702.00 |
| Less: Beginning balance of cash | 64,382,037,764.00 | 76,623,486,083.00 |
| 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 | -3,793,720,888.00 | 3,181,592,619.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
| Item | Amount |
| Cash or cash equivalents paid in the Reporting Period for business combination occurring in the Reporting Period | 0.00 |
| Of which: | |
| Less: Cash and cash equivalents held by subsidiaries on the date of purchase date | 0.00 |
| Of which: | |
| Add: Cash or cash equivalents paid in the Reporting Period for business combination occurring in the prior period | 0.00 |
| Of which: | |
| Net payments for acquisition of subsidiaries | 0.00 |
Other notes:
N/A
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
| Item | Amount |
| Cash or cash equivalents received in the Reporting Period from disposal of subsidiaries in the Current Period | 0.00 |
| Of which: | |
| Less: Cash and cash equivalents held by subsidiaries on the date of losing control power | 0.00 |
| Of which: | |
| Add: Cash or cash equivalents received in the Reporting Period from disposal of subsidiaries in the prior period | 0.00 |
| Of which: | |
| Net cash received from disposal of subsidiaries | 0.00 |
Other notes:
N/A
(4) Cash and Cash Equivalent
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 60,588,316,876.00 | 64,382,037,764.00 |
| Including: Cash on hand | 735,362.00 | 896,267.00 |
| Bank deposits available on demand | 60,585,457,805.00 | 64,378,531,680.00 |
| Other monetary funds available on demand | 2,123,709.00 | 2,609,817.00 |
| Accounts deposited in the central bank available for payment | 0.00 | 0.00 |
| Deposits in other banks | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Accounts of interbank | 0.00 | 0.00 |
| II. Cash equivalents | 0.00 | 0.00 |
| Of which: Bond investment expired within three months | 0.00 | 0.00 |
| III. Ending balance of cash and cash equivalents | 60,588,316,876.00 | 64,382,037,764.00 |
| Of which: Cash and cash equivalents with restriction in use for the Company as the parent or subsidiaries of the Group | 0.00 | 0.00 |
Other notes:
N/A
65. 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 corresponding amount:
N/A
66. Assets with Restricted Ownership or Right to Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Cash at bank | 2,817,459,430.00 | Mainly margin deposits for security and pledge for issuance of bills payable |
| Bills receivable | 29,667,971.00 | Endorsed and transferred with right of recourse, and put in pledge for the issuance of notes payable |
| Inventories | 0.00 | N/A |
| Fixed assets | 129,659,013,078.00 | Mortgaged as collateral |
| Intangible assets | 1,444,529,663.00 | Mortgaged as collateral |
| Construction in progress | 2,223,828,526.00 | Mortgaged as collateral |
| Investment properties | 50,727,532.00 | Mortgaged as collateral |
| Total | 136,225,226,200.00 |
Other notes:
N/A
67. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Cash at bank | 20,718,098,483.00 | ||
| Including: USD | 2,853,897,339.00 | 7.2258 | 20,621,691,390.00 |
| EUR | 6,736,302.00 | 7.8771 | 53,062,526.00 |
| HKD | 47,011,461.00 | 0.9220 | 43,344,567.00 |
| Accounts receivable | 27,497,327,955.00 | ||
| Including: USD | 2,089,186,063.00 | 7.2258 | 15,096,040,653.00 |
| EUR | 1,494,747.00 | 7.8771 | 11,774,271.00 |
| HKD | 546,864,233.00 | 0.9220 | 504,208,823.00 |
| Long-term loans | 23,183,020,931.00 | ||
| Including: USD | 3,208,367,368.50 | 7.2258 | 23,183,020,931.00 |
| EUR | 0.00 | 7.8771 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| HKD | 0.00 | 0.9220 | 0.00 |
Other notes:
N/A
(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
68. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
| Category | Amount | Listed items | Amount recorded in the current profit or loss |
| Government grants related to assets with influence on the current profit or loss | 826,664,251.00 | Other income/fixed assets/intangible assets | 826,664,251.00 |
| Government grants related to income with influence on the current profit or loss | 3,092,880,435.00 | Other income/non-operating revenue/financial expenses | 3,092,880,435.00 |
| Others | 3,919,544,686.00 | -- | 3,919,544,686.00 |
(2) Return of Government Grants
□ Applicable ? Not applicable
Other notes:
N/A
69. Other
N/A
VIII. Changes of Consolidation Scope
1. Business Combinations Involving Entities Not Under Common Control
(1) Business Combinations Involving Entities Not Under Common Control Occurred During the Reporting Period
Unit: RMB
| Name of the acquiree | Date of equity acquisition | Cost of equity acquisition | Proportion of equities acquired | Method of equity acquisition | Acquisition date | Basis for determining the acquisition date | The acquiree’s revenue from the acquisition date to the period-end | The acquiree’s net profit from the acquisition date to the period-end |
| Beijing United Ultra High-Definition | 31 January 2023 | 152,990,214.00 | 56.28% | Capital increase | 31 January 2023 | Actual control obtained by holding | 651,628.00 | -8,454,546.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Video Technology Collaboration Center Co., Ltd. | more than half of the board seats of the acquiree |
Other notes:
N/A
(2) Acquisition Cost and Goodwill
Unit: RMB
| Acquisition cost | Amount |
| --Cash | 150,000,000.00 |
| --Fair value of non-cash assets | 0.00 |
| --Fair value of issued or assumed debts | 0.00 |
| --Fair value of issued equity securities | 0.00 |
| --Fair value of the contingent consideration | 0.00 |
| --Fair value of equity interests held before the acquisition date on the acquisition date | 2,990,214.00 |
| --Others | 0.00 |
| Total acquisition cost | 152,990,214.00 |
| Less: Share of the fair value of the identifiable net assets acquired | 138,704,367.00 |
| Amount of goodwill/acquisition cost less than share of the fair value of the identifiable net assets acquired | 14,285,847.00 |
Notes to the method for determining the fair value of the acquisition cost and contingent consideration and its changes:
N/AMain reasons for the formation of large-amount goodwill:
N/AOther notes:
N/A
(3) Identifiable Assets and Liabilities of the Acquiree on the Acquisition Date
Unit: RMB
| Item | Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. | |
| Fair value on the acquisition date | Carrying value on the acquisition date | |
| Assets: | ||
| Cash at bank | 209,293,141.00 | 209,293,141.00 |
| Receivables | 119,000.00 | 119,000.00 |
| Inventories | 14,159.00 | 14,159.00 |
| Fixed assets | 71,815,827.00 | 67,353,815.00 |
| Intangible assets | 14,648,248.00 | 1,579,014.00 |
| Liabilities: | ||
| Loans | 0.00 | 0.00 |
| Payables | 6,891,987.00 | 6,891,987.00 |
| Deferred tax liabilities | 4,382,811.00 | 0.00 |
| Net assets | 246,454,099.00 | 225,505,664.00 |
| Less: Non-controlling interests | 107,749,732.00 | 98,591,076.00 |
| Net assets acquired | 138,704,367.00 | 126,914,588.00 |
Method for determining the fair value of identifiable assets and assets:
Valuation report
BOE Technology Group Co., Ltd. Interim Report 2023
Contingent liabilities of the acquiree assumed in the business combination:
N/AOther notes:
N/A
(4) Gain or Loss from Remeasurement of Equity Interests Held before the Acquisition Date at Fair ValueWhether there were several transactions to realize business combinations and acquire controls during the Reporting Period? Yes □ No
Unit: RMB
| Name of acquiree | Carrying value before the purchase date of the equity held prior to the purchase date | Fair value on the purchase date of the equity held prior to the purchase date | Gains or losses resulting from the remeasurement of the equity held prior to the purchase date at fair value | Determination methods and main assumptions of the fair value on the date of purchase of the equity held prior to the purchase date | Amount of other comprehensive income related to the equity originally held and transferred into investment income |
| Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. | 1,210,671.00 | 2,990,214.00 | 1,779,543.00 | Valuation report | 0.00 |
Other notes:
On 25 December 2018, the Company paid the consideration in cash of RMB3,000,000.00 to obtain 4.85% equity in Beijing UnitedUltra High-Definition Video Technology Collaboration Center Co., Ltd. On 31 January 2023, the Company paid the consideration incash of RMB150,000,000.00 to obtain 55.18% equity in Beijing United Ultra High-Definition Video Technology Collaboration CenterCo., Ltd.
(5) Notes to Failure to Reasonably Determine the Combination Consideration or the Fair Value of Identifiable Assets andLiabilities of the Acquiree on the Acquisition Date or at the End of the Current PeriodN/A
(6) Other Notes
N/A
2. Business Combinations Involving Entities Under Common Control
(1) Business Combinations Involving Entities Under Common Control Occurred During the Reporting Period
Unit: RMB
| Name of the combined party | Proportion of equity interests acquired in the business | Basis for the judgment about the business combination | Combination date | Basis for determining the combination date | The combined party’s revenue from the beginning | The combined party’s net profit from the beginning | The combined party’s revenue during the | The combined party’s net profit during the |
BOE Technology Group Co., Ltd. Interim Report 2023
| combination | under common control | of the current period, in which the combination occurred, to the combination date | of the current period, in which the combination occurred, to the combination date | comparison period | comparison period | |||
| N/A |
Other notes:
N/A
(2) Acquisition Cost
Unit: RMB
| Acquisition cost | |
| --Cash | 0.00 |
| --Carrying value of non-cash assets | 0.00 |
| --Carrying value of issued or assumed debts | 0.00 |
| --Carrying value of issued equity securities | 0.00 |
| --Contingent consideration | 0.00 |
Notes to contingent consideration and its changes:
N/AOther notes:
N/A
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
| Item | ||
| Combination date | End of the previous period | |
| Assets: | 0.00 | 0.00 |
| Cash at bank | 0.00 | 0.00 |
| Receivables | 0.00 | 0.00 |
| Inventories | 0.00 | 0.00 |
| Fixed assets | 0.00 | 0.00 |
| Intangible assets | 0.00 | 0.00 |
| Liabilities: | 0.00 | 0.00 |
| Loans | 0.00 | 0.00 |
| Payables | 0.00 | 0.00 |
| Net assets | 0.00 | 0.00 |
| Less: Non-controlling interests | 0.00 | 0.00 |
| Net assets acquired | 0.00 | 0.00 |
Contingent liabilities of the combined party assumed in business combinations: N/AOther notes: N/A
3. Counter Purchase
Basic information of the transactions, basis of the counter purchase, basis and whether assets and liabilities retained by the listedcompany constitute business, determination of the combination cost, the amount and calculation of the equity amount adjusted intreatment for the equity transaction:
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
4. 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
5. 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:
Two subsidiaries were established this year, namely Mianyang BOE Electronics Technology Co., Ltd. with a shareholding ratio of
100.00% and Beijing Shiyan Technology Co., Ltd. with a shareholding ratio of 80.00%.
6. Other
N/A
IX. Equity in Other Entities
1. Interests in Subsidiaries
(1) Subsidiaries
| Name of the subsidiary | Principal place of business | Registered place | Business nature | Shareholding percentage | Acquisition method | |
| Direct | Indirect | |||||
| Beijing BOE Optoelectronics Technology Co., Ltd. | Beijing, China | Beijing, China | Research and development (“R&D”), design and manufacturing of TFT-LCD | 0.00% | 100.00% | Founded by 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 combinations involving entities not under common control |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products. | 100.00% | 0.00% | Business combinations involving entities not under common control |
| Beijing BOE Display Technology Co., Ltd. (“Beijing BOE Display”) | Beijing, China | Beijing, China | Development of TFT-LCD, manufacturing and sale of LCD | 97.17% | 2.83% | Founded by investment |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products. | 99.97% | 0.03% | Business combinations involving entities not under common control |
| Erdos Yuansheng Optoelectronics Co., Ltd. (“Yuansheng Optoelectronics”) | Erdos, China | Erdos, China | Manufacture and sales of AM-OLED products and auxiliary products. | 100.00% | 0.00% | Founded by investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. (“Chongqing BOE”) | Chongqing, China | Chongqing, China | R&D, production, and sales of semiconductor display devices, entire machines, and relevant products; import and export of goods and technical consultancy | 100.00% | 0.00% | Business combinations involving entities not under common control |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. (“Fuzhou BOE”) | Fuzhou, China | Fuzhou, China | Investment, building, R&D, production, and sales of products related to Thin Film Transistor Liquid Crystal Display (TFT-LCD) devices and their supporting products (business premises are separately established); proprietary and agency import and export of commodities and technologies (excluding commodities and technologies that are restricted or prohibited by the government); business management consultancy and services; house leasing; leasing of machinery equipment; technological development, transfer, consultancy, and services of display | 83.24% | 0.00% | Business combinations involving entities not under common control |
BOE Technology Group Co., Ltd. Interim Report 2023
| devices-related products. (Business activities that require approval in accordance with laws shall be subject to approval by relevant authorities.) | ||||||
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | Beijing, China | Beijing, China | An investment platform that sells Liquid Crystal Displays (LCDs) and develop terminal products and systems such as TFT-LCD display and TV | 100.00% | 0.00% | Founded by investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | Beijing, China | Manufacture and sale of vacuum electronic products | 57.89% | 0.00% | Founded by investment |
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | Beijing, China | Dry pump repair | 100.00% | 0.00% | Founded by investment |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | Beijing, China | Engineering project management; property management services; rental of commercial properties; rental of offices; enterprise management consultancy | 100.00% | 0.00% | Founded by 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% | Founded by investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | Beijing, China | Development, manufacture and sale of liquid display for mobile termination. | 75.00% | 0.00% | Founded by investment |
| BOE (Hebei) Mobile Technology Co., Ltd. (“BOE Hebei”) | Langfang, China | Langfang, China | Manufacture and sale of mobile flat screen display technical products and related services. | 100.00% | 0.00% | Founded by investment |
| Beijing BOE Multimedia Technology Co. Ltd. (“BOE Multimedia”) | Beijing, China | Beijing, China | Technology development, technology transfer, technology consulting and technology services; sales of computer software, hardware and auxiliary equipment, digital video and audio technology products, electronic digital products, video telephone, mobile phones and spare parts, hardware (excluding electric bicycle), household appliances, photographic equipment, sporting goods, Class I medical devices, lamps, stationery, cosmetics, bathroom appliances, knitwear and textile, clothing, daily necessities, timepieces, glasses, toys and food; equipment maintenance; import and export of goods; basic software services; application software service; machinery and equipment leases; design, production, agency and publication of advertisements. (Market participants independently select the business activities and carry out the business activities | 100.00% | 0.00% | Founded by investment |
BOE Technology Group Co., Ltd. Interim Report 2023
| in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city. | ||||||
| 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. | 68.40% | 0.00% | Founded by investment |
| Beijing BOE Life Technology Co., Ltd. (“BOE Life Technology”) | Beijing, China | Beijing, China | Technology promotion services, property management, sales of electronic products | 100.00% | 0.00% | Founded by investment |
| Beijing Zhongxiangying Technology Co., Ltd. (“Zhongxiangying”) | Beijing, China | Beijing, China | Technology promotion services, property management, sales of electronic products | 91.10% | 0.00% | Founded by investment |
| Ordos City Haosheng Energy Investment Co., Ltd. | Ordos, China | Ordos, China | Energy investment | 0.00% | 100.00% | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | Beijing, China | Glass thinning and metal part processing | 84.00% | 0.00% | Founded by investment |
| BOE Optoelectronics Holding Co., Ltd (“Optoelectronics Holding”) | Hong Kong | British Virgin Islands | Investment holding | 100.00% | 0.00% | Founded by investment |
| BOE (Korea) Co., Ltd. | Korea | Korea | Wholesale and retail trade | 100.00% | 0.00% | Founded by investment |
| BOE Health Investment Management Co., Ltd. (“Health Investment”) | Beijing, China | Beijing, China | Investment management and project investment. | 100.00% | 0.00% | Business combinations involving entities not under common control |
| Beijing Matsushita Color CRT Co., Ltd. (“Matsushita Color CRT”) | Beijing, China | Beijing, China | Colour TV set, display tube, color RPTV projection tube and materials of electronic components; property management and parking services, etc. | 88.80% | 0.00% | Business combinations involving entities not under common 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 combinations involving entities not under common control |
| Beijing BOE Technology Development Co., Ltd. (“Technology Development”) | Beijing, China | Beijing, China | Development, transfer, consulting and service of technology | 100.00% | 0.00% | Founded by 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% | Founded by investment |
| Beijing BOE Land 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 | 70.00% | 0.00% | Founded by investment |
BOE Technology Group Co., Ltd. Interim Report 2023
| vehicles public parking service. | ||||||
| Beijing BOE Marketing Co., Ltd. | Beijing, China | Beijing, China | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices. | 100.00% | 0.00% | Founded by investment |
| Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. (“Yunnan BOE”) | Kunming, China | Kunming, China | Development, spread, transfer, consultancy and service providing of display technology; service 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 management of such projects; import and export of goods and technologies; leasing of houses and machinery equipment | 79.10% | 0.00% | Founded by investment |
| Mianyang BOE Optoelectronics Co., Ltd. | Mianyang, China | Mianyang, China | R&D, production, and sales of soft AMOLEDs that are mainly applied in smartphones, wearable devices, and vehicle display systems | 83.46% | 0.00% | Business combinations involving entities not under common control |
| Beijing BOE Sensor Technology Co., Ltd. | Beijing, China | Beijing, China | Building of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennae, biosensors, and logistics network technologies and other semiconductor sensors, as well as technical detection, consultancy, services, and transfer | 100.00% | 0.00% | Business combinations involving entities not under common control |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Wuhan, China | Wuhan, China | Investment, building, R&D, production, sales, and technological development, transfer, consultancy, and services of TFT-LCD devices-related products and supporting products | 47.14% | 0.00% | Business combinations involving entities not under common control |
| Chongqing BOE Display Technology Co., Ltd. | Chongqing, China | Chongqing, China | R&D, production, and sales of semiconductor-related products and supporting products; import and export of goods and technologies | 38.46% | 0.00% | Founded by investment |
| Fuzhou BOE Display Technology Co., Ltd. | Fuzhou, China | Fuzhou, China | R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or | 43.46% | 0.00% | Business combinations involving entities not under common control |
BOE Technology Group Co., Ltd. Interim Report 2023
| technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical services; business management consulting; property management; house rental; machinery and equipment rental | ||||||
| Hefei BOE Xingyu Technology Co., Ltd. | Hefei, China | Hefei, China | R&D, production, and sales of Mini LED backlight components and Mini LED display modules and components | 63.77% | 0.00% | Founded by investment |
| BOE Education Technology Co., Ltd. | Beijing, China | Beijing, China | Technological development, consultancy, services, transfer, and promotion; software development; basic software services; application software services; computer system services; sales of stationery supplies, sporting goods, household appliances, and electronic products; business management; market research; economic and trade consultancy; business management consultancy; education consultancy; public relations services; corporate image planning; organisation of exhibitions; conference services; natural science research and experimental development; engineering research and experimental development; agricultural research and experimental development; medical research and experimental development; copyright agency; arts and crafts creation services. (The enterprise chooses its own business projects and carries out business activities by law. Projects, which must be approved, shall be conducted upon approval of relevant departments. Business activities prohibited and restricted by municipal industrial policies.) | 100.00% | 0.00% | Founded by investment |
| Oriental Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | Beijing, China | General items: Technical services, development, consultancy, exchanges, transfer, and promotion; digital technology services; software outsourcing services; software sales; | 100.00% | 0.00% | Founded by investment |
BOE Technology Group Co., Ltd. Interim Report 2023
BOE Technology Group Co., Ltd. Interim Report 2023
| business; operating services of urban domestic waste; kitchen waste. (Projects, which must be approved, shall be conducted upon approval of relevant departments. Specific business projects shall be subject to the approval document or license of relevant departments.) (The enterprise shall not engage in business activities that are prohibited and restricted by national and municipal industrial policies.) | ||||||
| BOE Innovation Investment Co., Ltd. | Beijing, China | Beijing, China | Project investment; investment management. (“1. The company shall not raise funds in any public manner; 2. It shall not conduct securities products and financial derivative transactions in any public manner; 3. It shall not issue loans; 4. It shall not provide guarantees for enterprises other those it invests in; 5. It shall not promise any principal guarantee or minimum return to investors”; (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)) | 100.00% | 0.00% | Founded by investment |
| BOE Smart Technology Co., Ltd. | Beijing, China | Beijing, China | Provision of hardware and software integrated system solutions for the IoT market segment; smart city, smart transport, smart finance, smart parks and the display terminal products such as the smart all-in-one machines | 100.00% | 0.00% | Founded by investment |
| Nanjing BOE Display Technology Co., Ltd. (Formerly Nanjing CEC Panda FPD Technology Co., Ltd.) | Nanjing, China | Nanjing, China | R&D, manufacturing and sales of TFT-LCD panels, color filters and whole liquid crystal modules; provision of products and business-related services, as well as other business activities associated with the foregoing; proprietary and agency import and export of various goods and technologies (excluding | 80.83% | 0.00% | Business combinations involving entities not under common control |
BOE Technology Group Co., Ltd. Interim Report 2023
| goods and technologies restricted by state or import & export prohibited). (For items that require approval by law, the approval from related authorities must be obtained before engagement in the business activities) | ||||||
| Chengdu CEC Panda Display Technology Co., Ltd. | Chengdu, China | Chengdu, China | R&D, production and sales of TFT-LCD panels and modules, liquid crystal display monitors, televisions, instruments, machinery equipment and accessories as well as provision of technical services; foreign trade in form of import and export of goods and technology. (For items that require approval by law, the approval from related authorities must be obtained before engagement in the business activities) | 35.03% | 0.00% | Business combinations involving entities not under common control |
| BOE Jingxin Technology Co., Ltd. | Beijing, China | Beijing, China | Technology development, technology consultancy, technology transfer, and technology services; basic software services; application software services; computer system services; Internet data services (excluding data centres in Internet data services and cloud computing data centre with PUE over 1.4); information processing and storage support services; general contracting, professional contracting, and labour subcontracting; equipment installation, maintenance, and leasing; literary and artistic creation; computer animation design; product design; enterprise management consulting; sales of computers, software and auxiliary equipment, as well as electronic products. | 100.00% | 0.00% | Founded by investment |
| BOE Environmental Energy Technology Co., Ltd. | Beijing, China | Beijing, China | Energy-saving technology, new energy technology for environmental protection, environmental protection equipment, solar power generation, technology development, technology consulting, technology transfer, technology promotion, technology services, and technology testing for building integrated photovoltaics and green building, electric power, and power station operation and maintenance; software development; internet | 100.00% | 0.00% | Founded by investment |
BOE Technology Group Co., Ltd. Interim Report 2023
| data services (data centres in Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services (data centres in information processing and storage support services, excluding cloud computing data centres with a PUE over 1.4); energy management contracting; water contamination governance; atmospheric pollution governance; solid wastes governance; soil pollution control and remediation services; environmental protection monitoring; installation, maintenance and lease of equipment; professional design services; property management; sales of special equipment for environmental protection, illuminating equipment, electronic products, machinery and equipment, electrical equipment, instruments, hardware products, computers, software and ancillary equipment, and chemical products (excluding licensed chemical products); import and export of goods; import and export of technologies; agency of import & export; power service; construction engineering design; electrical installation services; miscellaneous engineering construction activities; general contracting of housing construction and municipal infrastructure project engineering; construction labour subcontracting. | ||||||
| Chengdu BOE Display Technology Co., Ltd. | Chengdu, China | Chengdu, China | General items: Technological services, development, consultancy, exchanges, transfer, and promotion; manufacturing of display devices [operated by a branch]; sales of display devices; manufacturing of electronic components [operated by a branch]; wholesale of electronic components; manufacturing of other electronic devices [operated by a branch]; import and export of goods; import | 52.63% | 0.00% | Investment establishment |
BOE Technology Group Co., Ltd. Interim Report 2023
| and export of technologies; business management consultancy; property management; rental of non-residential real estate; leasing of machinery equipment. (business activities shall be conducted independently in accordance with laws with the business license, except the items that require approval in accordance with laws) | ||||||
| Beijing BOE Chuangyuan Technology Co., Ltd. | Beijing, China | Beijing, China | Manufacturing of display devices; sales of display devices; manufacturing of electronic components; wholesale of electronic components; technological services, development, consultancy, exchanges, transfer, and promotion; import and export of goods; import and export of technologies; business management consultancy; property management; leasing of machinery equipment; manufacturing of other electronic devices. | 79.31% | 0.00% | Investment establishment |
| Mianyang BOE Electronics Technology Co., Ltd. | Sichuan, China | Sichuan, China | General items: Manufacturing of display devices; sales of display devices; manufacturing of electronic components; technological services, development, consultancy, exchanges, transfer, and promotion; leasing of machinery equipment; integration of intelligent control systems; integration services of information systems; manufacturing of industrial control computers and systems; loT technological services; data processing services; sales of electronic products; sales of digital and cultural creative equipment; sales of semiconductor lighting devices; integration services of artificial intelligence application systems; cloud computing equipment and technological services; industrial Internet data services; Internet data services; manufacturing of semiconductor lighting devices; sales of new energy original equipment; import and export of technologies. (business activities shall be | 100.00% | 0.00% | Investment establishment |
BOE Technology Group Co., Ltd. Interim Report 2023
| conducted independently in accordance with laws with the business license, except the items that require approval in accordance with laws) | ||||||
| Beijing Shiyan Technology Co., Ltd. | Beijing, China | Beijing, China | General items: Technological services, development, consultancy, exchanges, transfer, and promotion; manufacturing of computer hardware and software and peripherals; wholesale of computer hardware and software and auxiliary equipment; retail of computer hardware and software and auxiliary equipment; manufacturing of electronic components; manufacturing of optoelectronic devices; manufacturing of display devices; manufacturing of mobile terminal equipment; manufacturing of virtual reality equipment; TV manufacturing; manufacturing of IoT equipment; sales of electronic products; sales of display devices; sales of mobile terminal equipment; sales of communication equipment; sales of IoT equipment; leasing of computers and communication equipment; manufacturing of integrated circuits; design of integrated circuits; sales of integrated circuits; manufacturing of chips and products of integrated circuits; software sales; import and export of goods; import and export of technologies; sales of Class I medical devices; production of Class I medical devices; leasing of Class I medical devices; sales of Class II medical devices; leasing of Class II medical devices. (The enterprise shall conduct business activities according to its business license by law, besides projects that must be approved by law.) (The enterprise shall not engage in business activities that are prohibited and restricted by national and municipal industrial policies.) | 80.00% | 0.00% | Investment establishment |
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
BOE Technology Group Co., Ltd. Interim Report 2023
(1) BOE signed the Agreement of Persons Acting in Concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) and Hefei Xingrong Investment Co., Ltd. Based on theagreement, Hefei Core Screen Industrial Investment Fund (Limited Partnership) and Hefei Xingrong Investment Co., Ltd. agreed to act as the persons acting in concert according to the wishes ofthe Company, and exercised the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, BOE owns 100% of the voting right ratio to Hefei BOEDisplay and includes it in the consolidation scope.
(2) BOE signed the Agreement of Acting in Concert with Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. and Hubei Changbai IndustrialInvestment Fund Partnership (Limited Partnership). Based on the agreement, Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. and Hubei ChangbaiIndustrial Investment Fund Partnership (Limited Partnership) agreed to act as the persons acting in concert according to the wishes of the Company, and exercised the voting rights unconditionallyand irrevocably in accordance with the opinions of the Company. Therefore, BOE owns 100% of the voting right ratio to Wuhan BOE Optoelectronics Technology and includes it in theconsolidation scope.
(3) BOE signed the Agreement of Acting in Concert with Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi OptoelectronicIndustry Investment Co., Ltd., Chongqing Jianxin Junheng Private Equity Fund Partnership (Limited Partnership), and Chongqing Jingping Equity Investment Fund Partnership (LimitedPartnership). Based on the agreement, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry InvestmentCo., Ltd., Chongqing Jianxin Junheng Private Equity Fund Partnership (Limited Partnership), and Chongqing Jingping Equity Investment Fund Partnership (Limited Partnership) agreed to act asthe persons acting in concert according to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore,BOE owns 100% of the voting right ratio to Chongqing BOE Display Technology and includes it in the consolidation scope.
(4) BOE signed the Agreement of Acting in Concert with Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. Based on theagreement, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. agreed to act as the persons acting in concert according tothe wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, BOE owns 100% of the voting right ratioto Fuzhou BOE Display Technology Co., Ltd. and includes it in the consolidation scope.
(5) BOE signed an agreement of acting in concert with Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., Ya’an YashuangInvestment Co., Ltd., Nanjing Panda Information Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd., aiming to control Chengdu CEC Panda Display TechnologyCo., Ltd. by acting in concert. Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., Chengdu Xihanggang IndustrialDevelopment Investment Co., Ltd., Nanjing Panda Information Industry Group Co., Ltd., and China Electronics Corporation agreed to act as the persons acting in concert according to the wishesof the Company on exercising their shareholders’ rights at the Board of Directors and voting rights on recommended directors in Chengdu CEC Panda Display Technology Co., Ltd., on the premiseof not harming their interests. Therefore, BOE owns 96.75% of the voting right ratio to Chengdu CEC Panda Display Technology Co., Ltd. and includes it in the consolidation scope.
Basis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
N/ABasis for the control over the significant structured entities included in the scope of combination:
N/ABasis for the determining the Company as the agent or the trustor:
N/AOther notes:
N/A
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name of the subsidiary | 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 |
| Hefei BOE Display Technology Co., Ltd. | 91.67% | -725,412,821.00 | 0.00 | 18,104,773,689.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 16.54% | 33,721,531.00 | 0.00 | 3,591,814,262.00 |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 52.86% | -605,583,434.00 | 0.00 | 12,544,146,535.00 |
| Chongqing BOE Display Technology Co., Ltd. | 61.54% | -117,528,531.00 | 0.00 | 15,449,246,431.00 |
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
N/AOther notes:
N/A
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name of the subsidiary | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Hefei BOE Display Technology Co., Ltd. | 11,509,761,234.00 | 18,260,650,406.00 | 29,770,411,640.00 | 4,438,987,644.00 | 5,581,479,970.00 | 10,020,467,614.00 | 12,595,285,193.00 | 20,269,449,516.00 | 32,864,734,709.00 | 6,306,350,492.00 | 6,025,395,194.00 | 12,331,745,686.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 10,378,164,398.00 | 36,906,568,339.00 | 47,284,732,737.00 | 10,222,166,068.00 | 15,346,640,055.00 | 25,568,806,123.00 | 12,372,285,496.00 | 37,212,140,922.00 | 49,584,426,418.00 | 11,072,411,471.00 | 17,008,183,759.00 | 28,080,595,230.00 |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 7,249,550,083.00 | 37,154,039,570.00 | 44,403,589,653.00 | 6,516,451,930.00 | 14,156,251,353.00 | 20,672,703,283.00 | 7,442,285,566.00 | 38,934,335,172.00 | 46,376,620,738.00 | 6,251,107,827.00 | 15,254,593,174.00 | 21,505,701,001.00 |
| Chongqing BOE Display Technology | 9,394,982,496.00 | 35,681,268,798.00 | 45,076,251,294.00 | 7,260,358,165.00 | 12,711,495,290.00 | 19,971,853,455.00 | 8,590,561,462.00 | 32,479,448,086.00 | 41,070,009,548.00 | 5,410,946,190.00 | 12,186,708,120.00 | 17,597,654,310.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Co., Ltd.
Unit: RMB
| Name of the subsidiary | Reporting Period | Same period of last year | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Hefei BOE Display Technology Co., Ltd. | 6,102,514,499.00 | -791,330,665.00 | -791,330,665.00 | 1,893,921,796.00 | 6,859,750,975.00 | -1,134,274,044.00 | -1,134,274,044.00 | -87,608,184.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 10,278,165,117.00 | 203,878,666.00 | 203,878,666.00 | 4,925,480,711.00 | 5,554,777,261.00 | -1,593,827,191.00 | -1,593,827,191.00 | 4,096,026,311.00 |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 7,036,723,065.00 | -1,145,636,462.00 | -1,145,636,462.00 | 1,446,335,090.00 | 7,746,898,476.00 | -1,238,456,854.00 | -1,238,456,854.00 | 427,041,611.00 |
| Chongqing BOE Display Technology Co., Ltd. | 1,395,192,424.00 | -190,979,088.00 | -190,979,088.00 | -297,292,696.00 | 64,074,397.00 | -93,951,667.00 | -93,951,667.00 | 64,280,967.00 |
Other notes:
N/A
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the CompanyN/A
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope of Consolidated Financial StatementsN/A
Other notes:
N/A
2. Transactions That Cause Changes in the Group’s Interests in Subsidiaries That Do Not Result in Loss ofControl
(1) Explanations on Changes in Owner’s Equity of Subsidiary
N/A
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of the Company as theParent
Unit: RMB
| Item | |
| Purchase cost/disposal consideration | 0.00 |
| --Cash | 0.00 |
| --Fair value of non-cash assets | 0.00 |
| Total of purchase cost/disposal consideration | 0.00 |
| Less: Subsidiary net assets proportion calculated by share proportion obtained/disposal | 0.00 |
| Difference | 0.00 |
| Of which: Adjustment of capital reserves | 0.00 |
| Surplus reserves adjustments | 0.00 |
| Retained profits adjustments | 0.00 |
Other notes:
N/A
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
| Name | Principal place of business | Registered place | Business nature | Shareholding percentage | Accounting treatment method for the investment in joint ventures or associated enterprises | |
| Direct | Indirect | |||||
| N/A | ||||||
Explanations that the shareholding percentage is different from the voting right percentage in joint ventures or associated enterprises:
N/ABasis of the voting rights below 20% but with major influence, or without major influence but with over 20% (included) voting rightsheld:
N/A
(2) The Main Financial Information of Significant Joint Ventures
Unit: RMB
| Item | Ending balance/Reporting Period | Beginning balance/The same period of last year |
BOE Technology Group Co., Ltd. Interim Report 2023
| N/A |
Other notes:
N/A
(3) The Main Financial Information of Significant Associated Enterprises
Unit: RMB
| Item | Ending balance/Reporting Period | Beginning balance/The same period of last year |
| N/A |
Other notes:
N/A
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Item | Ending balance/Reporting Period | Beginning balance/The same period of last year |
| Joint venture: | ||
| Total carrying value of investment | 0.00 | 0.00 |
| The total of following items according to the shareholding proportions | ||
| --Net profit | 0.00 | 0.00 |
| --Other comprehensive income | 0.00 | 0.00 |
| --Total comprehensive income | 0.00 | 0.00 |
| Associated enterprise: | ||
| Total carrying value of investment | 13,496,498,758.00 | 12,421,878,851.00 |
| The total of following items according to the shareholding proportions | ||
| --Net profit | 698,402,235.00 | 586,980,332.00 |
| --Other comprehensive income | 6,317,985.00 | -10,213,701.00 |
| --Total comprehensive income | 704,720,220.00 | 576,766,631.00 |
Other notes:
N/A
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to TransferFunds to the Company
N/A
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
| Name | The cumulative recognized losses in previous accumulatively derecognized | The derecognized losses (or the share of net profit) in Reporting Period | The accumulative unrecognized losses in Reporting Period |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | -14,922,087.00 | 624,844.00 | -14,297,243.00 |
| Hefei Jiangcheng Technology Co., Ltd. | 0.00 | -2,473,727.00 | -2,473,727.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
As at 30 June 2023, Hefei Xinjingyuan Electronic Materials Co., Ltd. has continuously incurred losses. Since the Company has noobligation to undertake extra losses for it, the recognition of the share of its net losses born by the Company shall be limited to that thecarrying value of long-term equity investments is reduced to zero. And the accumulative unrecognized investment losses areRMB14,297,243.As at 30 June 2023, Hefei Jiangcheng Technology Co., Ltd. had accumulated losses. The Group has no obligation to bear additionallosses for it. Therefore, in terms of the determination of the share of the net losses incurred to be assumed by the Company, the carryingvalue of the long-term equity investment should be written down to zero. The accumulated unrecognised losses on investment wereRMB2,473,727.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
N/A
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesN/A
4. Significant Common Operation
| Name | Main Operating Place | Place of Registration | Business Nature | Proportion/Share portion | |
| Directly | Indirectly | ||||
| None | |||||
Notes to holding proportion or share portion in common operation different from voting proportion:
N/AFor common operation as a single entity, basis of classifying as common operationN/AOther notesN/A
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNotes to the structured entity excluded in the scope of consolidated financial statements:
N/A
6. Other
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
X. The Risk Related to Financial Instruments
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 by theother party. The credit risk of the Group is mainly from accounts receivable. And the management will continue to monitor the exposureof these credit risks.The cash at bank of the Group is mainly held with well-known financial institutions. Management does not foresee any significantcredit risks from these deposits and does not expect that these financial institutions may default and cause losses to the Group.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 financial condition,external rating and historical transaction records. The accounts receivable will expire within 7 to 120 days since the issue date ofaccount bills. The debtors of overdue accounts receivable will be required to pay off all outstanding balance before obtaining furthercredit lines. Generally, the Group will not ask customers to provide collaterals.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 and contract assets of the Groupfrom individual customers. On the balance sheet date, the accounts receivable of the Group and the Company’s top five customersrespectively account for 30% (in 2022: 39%) of total accounts receivable and total contract assets 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 debtrecords 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 XIV, the Group has no external guarantee that will bring credit risks to the Group as at 30 June 2023.
2. Liquidity Risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled by delivering cash or anotherfinancial asset. The Company and its individual subsidiaries are responsible for their own cash management, including short-terminvestment of cash surpluses and the raising of loans to cover expected cash demands (subject to approval by the Company’s boardwhen the borrowings exceed certain predetermined levels of authority). 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 fair valueinterest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instrumentsbased on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floatingrate exposure. The Group does not enter into financial derivatives to hedge interest rate risk.As at 30 June 2023, it is estimated that a general increase/decrease of 100 basis points in interest rates of variable rate instrument, withall other variables held constant, would decrease/increase the Group’s net profit and equity by RMB442.82 million (2022: RMB679.15million).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 annualized 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 by buying
BOE Technology Group Co., Ltd. Interim Report 2023
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 recognised foreign currency assets or liabilities is mainlydenominated in US dollar. The amount of the USD exposure is net liabilities exposure USD762,574,278 (2022 net liabilities exposure:
USD1,523,210,633), translated into RMB5,510,209,218 (2022: RMB10,608,552,775), using the spot rate at the balance sheet 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 decrease/increase both the Group’s equity and net profit by the amount RMB91,925,478 (2022: increased/decreasedRMB136,665,926).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 is performedon the same basis for the previous year.XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Level 1 Fair value measurement | Level 2 Fair value measurement | Level 3 Fair value measurement | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (I) Trading financial assets | 296,101,534.00 | 0.00 | 13,378,905,298.00 | 13,675,006,832.00 |
| 1. Financial assets at fair value through profit or loss | 296,101,534.00 | 0.00 | 13,378,905,298.00 | 13,675,006,832.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 11,299,405,086.00 | 11,299,405,086.00 |
| (2) Equity instruments investment | 296,101,534.00 | 0.00 | 2,079,500,212.00 | 2,375,601,746.00 |
| (3) Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Financial assets assigned measured by fair value and the changes be included in the current gains and losses | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Equity instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (II) Investment in other debt obligations | 0.00 | 0.00 | 0.00 | 0.00 |
| (III) Other equity instrument investment | 178,303,896.00 | 0.00 | 341,754,106.00 | 520,058,002.00 |
| (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 measured at fair value on a recurring basis | 474,405,430.00 | 0.00 | 13,720,659,404.00 | 14,195,064,834.00 |
| (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 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 |
| (VII) Refer as financial liabilities measured by fair value and the | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| changes included in the current gains and losses | ||||
| Total liabilities of consistent fair value measurement | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
| (I) Assets held for sale | 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 inconsistently measured at fair value | 0.00 | 0.00 | 0.00 | 0.00 |
2. Basis of Determining the Market Price for Recurring and Non-recurring Fair Value MeasurementsCategorized within Level 1The unadjusted offer in active market obtaining same assets or liabilities on the calculation date.
3. Consistent and Inconsistent Fair Value Measurement Items at Level 2, Valuation Techniques Adopted, theQualitative and Quantitative Information of Important ParametersObservable 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, theQualitative 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 Carrying Valueand the Ending Carrying Value and Sensitivity Analysis on Unobservable ParametersN/A
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens if ConversionHappens among Consistent Fair Value Measurement Items at Different LevelN/A
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the Changes
N/A
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
N/A
9. Other
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
| Company name | Registered place | Business nature | 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, Jiuxianqiao Road, Chaoyang District, Beijing | Operation and management of state-owned assets within authorization, etc. | RMB3,139,210,000.00 | 0.72% | 12.20% |
Notes to the Company as the parent:
N/AThe final controller of the Company is Beijing Electronics Holding Co., Ltd.Other notes:
N/A
2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For 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. | An affiliated enterprise of the Group and the Company |
| TPV Display Technology (China) Co., Ltd. | An affiliated enterprise of the Group and the Company |
| BOE Digital Technology Co., Ltd. | An affiliated enterprise and subsidiary of the Group and the Company |
| BOE Art Cloud Technology Co., Ltd. | An affiliated enterprise and subsidiary of the Group and the Company |
| BOE Art Cloud (Suzhou) Technology Co., Ltd. | An affiliated enterprise and subsidiary of the Group and the Company |
| BOE Art Cloud (Hangzhou) Technology Co., Ltd. | An affiliated enterprise and subsidiary of the Group and the Company |
| BOE Art Cloud (Beijing) Technology Co., Ltd. | An affiliated enterprise and subsidiary of the Group and the Company |
| Beijing Xindongneng Investment Management Co., Ltd. | An affiliated enterprise of the Group and the Company |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | An affiliated enterprise of the Group |
| Beijing BOE Microbial Technology Co., Ltd. | An affiliated enterprise of the Group |
| Shenzhen Jiangcheng Technology Co., Ltd. | An affiliated enterprise of the Group |
| BOE Houji Technology (Beijing) Co., Ltd. | An affiliated enterprise of the Group |
| Biochain (Beijing) Science-Technology Inc | An affiliated enterprise and subsidiary of the Group |
| Beijing Yandong Microelectronic Co., Ltd. | An affiliated enterprise of the Group |
| SES Imagotag SA Co., Ltd. | An affiliated enterprise and subsidiary of the Group |
| Chongqing Maite Optoelectronics Co., Ltd. | An affiliated enterprise of the Group |
| Beijing Borcheng Medical Laboratory Co. Ltd. | An affiliated enterprise and subsidiary of the Group |
| SES-Imagotag GmbH Co., Ltd. | An affiliated enterprise and subsidiary of the Group |
| PDi Digital GmbH | An affiliated enterprise and subsidiary of the Group |
| Pervasive Displays Inc | An affiliated enterprise and subsidiary of the Group |
Other notes:
BOE Technology Group Co., Ltd. Interim Report 2023
N/A
4. Information on Other Related Parties
| Name of other related parties | Relationship with the Company |
| Beijing BOE Investment Development Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| NAURA Technology Group Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Dongdian Industrial Development Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Naura Microelectronics Equipment Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Sevenstar Semiconductor Technologies Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Zhaowei Technology Development Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing C&W Intelligent Equipment Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Ether Electronics Group Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Yansong Economic and Trade Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Peony Electronic Group Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Electronics Holding & SK Technology Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Yan Dong Microelectronic Technology Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Electrical Control Jiuyi Industrial Development Company | An enterprise controlled by the same ultimate holding company |
| 761 Workshop (Beijing) Technology Development Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| Beijing Smart-Aero Display Technology Co., Ltd. | An enterprise controlled by the same ultimate holding company |
| New Vision Microelectronics (Hong Kong) Limited | An associate enterprise of the enterprise controlled by the same ultimate holding company |
| Beijing Senju Electronic Materials Co., Ltd. | An associate enterprise of the enterprise controlled by the same ultimate holding company |
| Hefei Construction Investment and Holding Co., Ltd. | Other related party |
| Shanghai New Vision Microelectronics Co., Ltd. | Other related party |
| Beijing Yizhuang Environmental Technology Group Co., Ltd. | Other related party |
| China Minsheng Bank Co., Ltd. | Other related party |
| Beijing Jingcheng Machinery Electric Holding Co., Ltd. | Other related party |
| Nexchip Semiconductor Corporation | Other related party |
| Hefei Visionox Technology Co., Ltd. | Other related party |
Other notes:
N/A
5. Transactions with Related Parties
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
| Name of related party | Nature of transaction | 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 | 126,531,434.00 | 600,000,000.00 | No | 196,001,751.00 |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Receiving of services | 4,882,973.00 | 25,000,000.00 | No | 8,395,214.00 |
| Other related parties | Purchase of goods | 419,867,816.00 | 832,000,000.00 | No | 618,189,627.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Other related parties | Receiving of services | 104,939.00 | 1,000,000.00 | No | 4,448,768.00 |
| Other related parties | Interest costs | 17,315,453.00 | 140,000,000.00 | No | 43,423,377.00 |
Information of sales of goods and provision of labor service
Unit: RMB
| Name of related party | Nature of transaction | Reporting Period | Same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Sale of goods | 273,238,127.00 | 776,906,136.00 |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Rendering of services | 2,948,091.00 | 9,388,915.00 |
| Other related parties | Sale of goods | 1,673,991,112.00 | 391,395,870.00 |
| Other related parties | Rendering of services | 2,365,367.00 | 2,615,873.00 |
| Other related parties | Interest income | 11,933,168.00 | 23,183,395.00 |
Explanation of Information on Acquisition of Goods and Reception of Labor ServiceN/A
(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 |
| N/A |
Notes to connected trusteeship/contractN/ALists 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 |
| N/A |
Notes to entrust/contracteeN/A
(3) Information on Connected Lease
The Company served as the lessor:
Unit: RMB
| Name of lessee | Type of assets leased | 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 | Investment properties | 1,682,277.00 | 3,684,450.00 |
| Other related parties | Investment properties | 971,113.00 | 4,240,693.00 |
The Company served as the lessee:
Unit: RMB
| Name of lessor | Type of assets leased | Rental expenses of short-term lease simplified treated and low-value asset lease (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Paid rent | Income expense of lease liabilities undertaken | Increased right-of-use assets | |||||
| Reporting Period | The same period of last year | Reporting Period | The same period of last year | Reporting Period | The same period of last year | Reporting Period | The same period of last year | Reporting Period | The same period of last year | ||
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Fixed assets | 0.00 | 0.00 | 0.00 | 0.00 | 1,526,423.00 | 2,676,474.00 | 79,763.00 | 209,567.00 | 0.00 | 0.00 |
| Other related parties | Fixed assets | 143,991.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Notes to connected lease:
N/A
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
| Secured party | Amount | Start date | Due date | Whether completely performed |
| N/A |
The Company served as the secured party
Unit: RMB
| Guarantee | Amount | Start date | Due date | Whether completely performed |
| N/A |
Notes to connected guarantee: N/A
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
| Name of related party | Amount of funding | Inception date | Maturity date | Note |
| Funds received | ||||
| N/A | ||||
| Funds provided | ||||
| N/A | ||||
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
| Name of related party | Nature of transaction | Reporting Period | Same period of last year |
| N/A |
(7) Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Remuneration of key management personnel | 38,920,597.00 | 70,157,777.00 |
(8) Other Connected Transactions
N/A
6. Receivables from and Payables to Related Parties
(1) Accounts Receivable
Unit: RMB
| Item | Name of related party | Ending balance | Beginning balance | ||
| Book value | Provision for impairment | Book value | Provision for impairment | ||
| Accounts receivable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 88,888,963.00 | 4,371.00 | 142,590,194.00 | 2,601.00 |
| Contract assets | Beijing Electronics Holding Co., Ltd and its affiliated companies | 0.00 | 0.00 | 222,912.00 | 0.00 |
| Other receivables | Beijing Electronics Holding Co., Ltd and its affiliated companies | 577,297.00 | 0.00 | 179,015.00 | 0.00 |
| Prepayments | Beijing Electronics Holding Co., Ltd and its affiliated companies | 0.00 | 0.00 | 3,735,164.00 | 0.00 |
| Other Non-current Assets | Beijing Electronics Holding Co., Ltd and its affiliated companies | 17,203,153.00 | 0.00 | 14,026,424.00 | 0.00 |
| Monetary assets | Other related parties | 1,138,907,638.00 | 0.00 | 965,569,850.00 | 0.00 |
| Accounts receivable | Other related parties | 988,687,234.00 | 4,985,637.00 | 928,258,123.00 | 4,983,620.00 |
| Contract assets | Other related parties | 1,157,057.00 | 0.00 | 2,180,062.00 | 0.00 |
| Other receivables | Other related parties | 10,369,703.00 | 0.00 | 16,409,519.00 | 0.00 |
| Prepayments | Other related parties | 6,897,324.00 | 0.00 | 2,880,203.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Accounts Payable
Unit: RMB
| Item | Name of related party | Ending carrying balance | Beginning carrying balance |
| Accounts payable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 29,177,761.00 | 17,550,142.00 |
| Other payables | Beijing Electronics Holding Co., Ltd and its affiliated companies | 162,892,393.00 | 177,747,607.00 |
| Advance payments received | Beijing Electronics Holding Co., Ltd and its affiliated companies | 141,120.00 | 0.00 |
| Contract liabilities | Beijing Electronics Holding Co., Ltd and its affiliated companies | 2,071,260.00 | 5,163,782.00 |
| Non-current Liabilities Due within One Year | Other related parties | 6,000,000.00 | 6,000,000.00 |
| Long-term borrowings | Other related parties | 1,110,750,000.00 | 1,257,250,000.00 |
| Accounts payable | Other related parties | 73,479,154.00 | 161,497,124.00 |
| Other payables | Other related parties | 1,435,108.00 | 4,806,791.00 |
| Advance payments received | Other related parties | 85,328.00 | 188,623.00 |
| Contract liabilities | Other related parties | 19,257,241.00 | 29,000,509.00 |
7. Commitments of the Related Parties
As at the balance sheet date, the commitments of the related parties, which are signed but not listed in financial statement, are for theprocurement of equipment. The amount was RMB57,524,635.00. It was RMB16,594,169.00 in the same period last year.
8. Other
N/AXIII. Share-based Payments
1. Overview of Share-based Payments
? Applicable □ Not applicable
Unit: RMB
| The total amount of equity instruments granted to the Company during the Reporting Period | 0.00 |
| The total amount of equity instruments exercised by the Company during the Reporting Period | 0.00 |
| The total amount of equity instruments of the Company that expire during the Reporting Period | 0.00 |
| Scope of the exercise price of outstanding stock options of the Company at the end of the Reporting Period and remaining contract term | -- |
| Scope of the exercise price of other outstanding equity instruments of the Company at the end of the Reporting Period and remaining contract term | -- |
Other notes:
On 17 November 2020, the General Meeting of the Company approved the implementation of share options and restricted shareincentive plans since 2020. The shares for the share options and restricted share incentive plans are from the Company’s Renminbi A-
BOE Technology Group Co., Ltd. Interim Report 2023
share ordinary shares repurchased from the secondary market.Vesting plans of share options and restricted share incentive plans are presented as follows:
(1) Share option incentive plan
The share option incentive plan is classified into initial grant and reserved grant. The initial grant date was 21 December 2020, and theimplementation was completed on 25 December 2020. The actual number of grantees was 1,988, with a number of grants of596,229,700 shares; the implementation was completed on 22 October 2021. The actual number of grantees was 110, with a numberof grants of 33,000,000 shares.The share options are exercised in three phases after 24 months from the grant date. The exercise ratios for each phase are 34%, 33%,and 33%, respectively. The corresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.The fair value of equity instruments at the grant date is determined based on the difference between the assessed fair value of theexercisable share options at each grant date and the subscription price in RMB (First grant: RMB1.68/share, RMB1.93/share andRMB2.09/share, respectively; reserved grant: RMB1.70/share, RMB2.02/share and RMB2.17/share, respectively).When the Company’s performance meets the corresponding criteria, the proportion of exercisable rights of the above-mentioned shareoptions is determined based on the business performance of the incentive object’s operation and the contribution value of the incentiveobject. In accordance with the plan, the Company will deregister the current exercisable shares of the options obtained by the incentiveobjects if the exercise criteria stipulated in this plan are not met.
(2) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020, and the implementation was completed on 29 December 2020.The actual number of grantees was 793, with a number of grants of 321,813,800 share.The lock-up periods of the restricted shares are 24, 36 and 48 months from the grant date. During the lock-up period, restricted sharesgranted to the incentive object under this plan shall not be transferred, used for guarantee or debt repayment before the lock-up release.Lock-up restricted shares are released in three phases after 24 months from the grant date. The release ratios for each phase are 34%,33%, and 33%, respectively. The corresponding release dates are 2 years, 3 years, and 4 years from the grant date. The actual numberreleased shall be based on the performance assessment result in the previous year.The fair value of equity instruments at the grant date is determined based on the difference between the fair value of shares at the grantdate and the subscription price at RMB2.68/share.When the Company’s performance meets the corresponding criteria, the release proportion of the above-mentioned restricted shares isdetermined based on the business performance of the incentive object’s operation and the contribution value of the incentive object.The Company will repurchase the locked restricted shares at the granted price of the incentive objects if the release criteria stipulatedin this plan are not met, and the incentive object shall not release the restricted shares for the current period.The Company made an achievement of lifting the restriction conditions in the first lifting restriction period of the 2020 RestrictedShare Incentive Scheme. The Board of Directors lifted restrictions for the incentive personnel meeting restriction conditions in linewith the authorisation of the Second Extraordinary General Meeting of Shareholdings in 2020 and relevant provisions. The totalnumber of incentive personnel whose restrictions were lifted was 746. Statistically, 102,260,780 restricted shares were lifted out ofrestrictions, accounting for 0.2677% of the current total share capital of the Company.If the unlocking conditions stipulated in the plan were not met, the restricted shares of incentive personnel shall not be unlocked forthe current period and shall be repurchased by the Company in accordance with the grant price for the incentive personnel.
2. Equity-settled Share-based Payments
? Applicable □ Not applicable
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Method for determining the fair value of equity instruments at the grant date | Share option: The fair value of equity instruments at the grant date is determined based on the difference between the assessed fair value of the exercisable share options at each grant date and the subscription price in RMB (First: RMB1.68/share, RMB1.93/share and RMB2.09/share, respectively; Second: RMB1.70/share, RMB2.02/share and RMB2.17/share, respectively). Restricted shares: The fair value of equity instruments at the grant date is determined based on the difference between the fair value of shares at the grant date and the subscription price at RMB2.68/share. |
| Basis of determining the number of equity instruments expected to vest | At each balance sheet date during the vesting period, the best estimation is made according to the latest information, such as the number of employees who are granted options and the completion of performance indicators, and the number of equity instruments expected to vest is revised accordingly. On the vesting date, the estimated number is equal to the number of equity instruments that are ultimately vested. |
| Causes for material difference between the current estimate and the previous estimate | N/A |
| Payment of the cumulative amount included in capital reserves with equity-settled shares | 1,917,748,998.00 |
| Total costs recognized by equity-settled share-based payment in the Reporting Period | 183,844,464.00 |
Other notes:
N/A
3. Cash-settled Share-based Payments
□ Applicable ? Not applicable
4. Modification and Termination of Share-based Payments
N/A
5. Others
N/A
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Unit: RMB
| The Group | 30 June 2023 | 31 December 2022 |
| Outward investment contract signed but not performed or not performed fully | 33,261,033,429.00 | 31,109,629,604.00 |
| Outward investment contract authorized but contract not signed | 97,900,140,388.00 | 100,442,930,917.00 |
| Total | 131,161,173,817.00 | 131,552,560,521.00 |
Unit: RMB
| The Group | 30 June 2023 | 31 December 2022 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Outward investment contract signed but not performed or not performed fully | 28,148,307,292.00 | 28,350,937,574.00 |
| Outward investment contract authorized but contract not signed | 0.00 | 0.00 |
| Total | 28,148,307,292.00 | 28,350,937,574.00 |
2. Contingency
(1) Significant Contingency on the Balance Sheet Date
N/A
(2) Explanations Should Also Be Given when there Was No Significant Contingency to DiscloseThere was no significant contingency to disclose.
3. Other
N/A
XV. Other Significant Events
1. Debt Restructuring
N/A
2. Assets Replacement
(1) Replacement of Non-monetary Assets
N/A
(2) Replacement of Other Assets
N/A
3. 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 a long-term talent retaining mechanism, as per China’s relevant policies and regulations, BOE has established the annuity programme sinceJanuary 2014. The annuity fund consists of the contributions by the Company (paid as per the government’s regulations according tothe applicable taxation policy), the contributions by employees (deducted by the Company from their salaries according to theapplicable taxation policy) and the returns on investment by the fund (operated by the relevant government department according tothe investment principle of high security and moderate income).
BOE Technology Group Co., Ltd. Interim Report 2023
4. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(a) Display business—The Display Devices business offers integrated design and manufacturing services for devices, and is committedto providing interface devices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customerswith high-quality display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL),industrial control, household medical applications, applications on wearable devices, whiteboards, tiled display screens, commercialdevices, VR/AR devices, etc.(b) Internet of Things (IoT) innovation business—The IoT Innovation business offers integrated design and manufacturing services forsystem solutions, and provides customers with competitive smart terminal products for TVs, monitors, laptops, tablets, low-powerdevices, IoT, 3D display, etc. Backed by AI and big data technologies, it focuses on products and services combining hardware andsoftware, providing integrated IoT solutions for segments including smart industrial parks, smart finance, smart government affairs andtransportation, visual arts, smart energy, all-in-one machines, etc.(c) Sensor business—The sensing business designs and integrates manufacturing models for system solutions, covering both glass-based and silicon-based areas. It focuses on medical imaging, intelligent windows, innovative glass-based sensor devices, industrialapplications, consumer electronics, and automotive electronics, and provides customers with products and solutions, including the backpanels of X-ray flat panel detectors, intelligent dimming windows and dimming system solutions, industrial sensors and solutions, andsensors.(d) MLED business—The MLED business designs and integrates manufacturing models for devices. It provides fine-patch LEDbacklight products with high reliability, high zoning, and fine dimming for display products in the fields of TVs, displays, laptops,automobiles, and VR/AR. Meanwhile, it provides Mini/Micro LED display products, featuring high brightness, high reliability, andhigh contrast, to application segments, such as outdoor, commercial, transparent, and special display.(e) Smart medicine and engineering—The Smart Medical Engineering business provides professional healthcare service models,features the innovative integration of technology and medicine, and focuses on healthcare service scenarios, such as families,communities, and hospitals. It creates a full-cycle closed loop of health services that centres on health management, is driven by medicalengineering terminals, and supported by digital hospitals and healthcare communities, and establishes an ecosystem of smart healthmanagement. Moreover, it connects testing equipment, medical personnel, and customers and provide customers with full-chainprofessional health services covering “prevention, diagnosis and treatment, and healthcare”.(f) 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 display business, IoT innovation business,sensor business, MLED business, smart medicine and engineering business and other businesses. As these business segmentsmanufacture and/or sell different products, apply different manufacturing processes and specify in gross profit, the business segmentsare managed independently. The management evaluates the performance and allocates resources according to the profit of each businesssegment and does not take financing cost and investment income into account.
(2) The Financial Information of Reportable Segment
Unit: RMB
| Item | Display business | Smart systems innovation business | Sensor business | MLED business | Smart medical engineering business | Others and offset | Offset among segment | Total |
| Operating income | 67,875,605,158.00 | 17,416,958,825.00 | 183,294,095.00 | 457,988,865.00 | 1,353,661,118.00 | -7,109,632,841.00 | 0.00 | 80,177,875,220.00 |
| Operating costs | 63,795,640,147.00 | 15,917,582,582.00 | 148,832,046.00 | 497,625,089.00 | 1,084,810,592.00 | -8,510,645,000.00 | 0.00 | 72,933,845,456.00 |
(3) If There Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable Segment Could not Be Reported, Relevant ReasonsShall Be Clearly StatedThe Company develops various businesses by using common assets and liabilities and therefore, it could not analyze assets and liabilities of each reportable segment respectively by business.
(4) Other Notes
N/A
5. Other Important Transactions and Matters Impacting Investors’ Decision-makingN/A
6. Other
N/A
XVI. 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 | ||||||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |||||
| Amount | Percentage | Amount | Withdrawal proportion | Amount | Percentage | Amount | Withdrawal proportion | |||
| Accounts receivable for which bad debt provision accrued separately | 5,273,499,462.00 | 100.00% | 8,406,011.00 | 0.16% | 5,265,093,451.00 | 4,872,009,123.00 | 100.00% | 8,406,011.00 | 0.17% | 4,863,603,112.00 |
| Of which: | ||||||||||
| Customers with a high credit risk | 91,158,884.00 | 1.73% | 8,406,011.00 | 9.22% | 82,752,873.00 | 8,406,011.00 | 0.17% | 8,406,011.00 | 100.00% | 0.00 |
| Customers with a low credit risk | 5,182,340,578.00 | 98.27% | 0.00 | 0.00% | 5,182,340,578.00 | 4,863,603,112.00 | 99.82% | 0.00 | 0.00% | 4,863,603,112.00 |
| Accounts receivable withdrawal of bad debt provision of by portfolio | 199,634.00 | 0.00% | 0.00 | 0.00% | 199,634.00 | 141,554.00 | 0.00% | 79,397.00 | 56.09% | 62,157.00 |
| Of which: | ||||||||||
| Customers with a moderate credit risk | 199,634.00 | 0.00% | 0.00 | 0.00% | 199,634.00 | 141,554.00 | 0.00% | 79,397.00 | 56.09% | 62,157.00 |
| Total | 5,273,699,096.00 | 100.00% | 8,406,011.00 | 0.16% | 5,265,293,085.00 | 4,872,150,677.00 | 100.00% | 8,485,408.00 | 0.17% | 4,863,665,269.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
Bad debt provision withdrawn separately:
Unit: RMB
| Name | Ending balance | |||
| Book value | Provision for impairment | Withdrawal proportion | Reason for withdrawal | |
| Customers with high credit risks | 91,158,884.00 | 8,406,011.00 | 9.22% | None |
| Customers with low credit risks | 5,182,340,578.00 | 0.00 | 0.00% | None |
| Total | 5,273,499,462.00 | 8,406,011.00 | ||
Bad debt provision accrued by group:
Unit: RMB
| Name | Ending balance | ||
| Book value | Provision for impairment | Withdrawal proportion | |
| Customers with moderate credit risks | 199,634.00 | 0.00 | 0.00% |
| Total | 199,634.00 | 0.00 | |
Notes of the basis of recognizing the group:
| Customer group | Basis |
| Customers with high credit risk | With special matters, litigations or the deterioration of customers’ credit status |
| Customers with low credit risk | Banks, insurance companies, large state-owned enterprises and public institutions |
| Customers with moderate credit risk | Customers not included in Groups above |
Please 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 accounts receivable.? Applicable □ Not applicableAt all times the Group measures the impairment loss for accounts receivable at an amount equal to lifetime ECLs, and the ECLs arebased on the number of overdue days and the expected loss rate. According to the Group’s historical experience, different loss modelsare applicable to different customer groups.Disclosed by aging
Unit: RMB
| Ageing | Ending balance |
| Within 1 year (including 1 year) | 3,427,604,743.00 |
| 1 to 2 years | 1,505,619,854.00 |
| 2 to 3 years | 184,006,305.00 |
| Over 3 years | 156,468,194.00 |
| 3 to 4 years | 142,504,342.00 |
| 4 to 5 years | 12,739,868.00 |
| Over 5 years | 1,223,984.00 |
| Total | 5,273,699,096.00 |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Others | |||
| Bad debt of accounts receivable | 8,485,408.00 | 9,367.00 | -88,764.00 | 0.00 | 0.00 | 8,406,011.00 |
| Total | 8,485,408.00 | 9,367.00 | -88,764.00 | 0.00 | 0.00 | 8,406,011.00 |
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
| Subsidiary | Amount reversed or recovered | Way of recovery |
| N/A |
N/A
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Accounts receivable with actual verification | 0.00 |
Of which the verification of significant accounts receivable:
Unit: RMB
| Subsidiary | Nature | Amount verified | Reason for | Verification | Whether generated |
BOE Technology Group Co., Ltd. Interim Report 2023
| verification | procedures performed | from connected transactions | |||
| N/A |
Verification of accounts receivable:
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Subsidiary | Ending balance of accounts receivable | Proportion to the total ending balance of accounts receivable | Ending balance of bad debt provisions |
| Sum of top 5 accounts receivable | 4,733,465,351.00 | 89.76% | 0.00 |
| Total | 4,733,465,351.00 | 89.76% |
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement ofAccounts ReceivableN/AOther notes:
N/A
2. Other Accounts Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | 0.00 | 0.00 |
| Dividends receivable | 334,081,592.00 | 333,352,986.00 |
| Other receivables | 24,526,471,760.00 | 19,544,792,389.00 |
| Total | 24,860,553,352.00 | 19,878,145,375.00 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed time deposit | 0.00 | 0.00 |
| Entrusted loan | 0.00 | 0.00 |
| Bond investment | 0.00 | 0.00 |
| Total | 0.00 | 0.00 |
2) Significant Overdue Interest
Unit: RMB
| Borrower | Ending balance | Overdue time | Reason | Whether occurred impairment and its |
BOE Technology Group Co., Ltd. Interim Report 2023
| judgment basis | ||||
| N/A |
Other notes:
N/A
3) 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 Matsushita Colour Innovation Co., Ltd. | 333,352,986.00 | 333,352,986.00 |
| Beijing Electronics Zone High-Tech Group Co., Ltd. | 728,606.00 | 0.00 |
| Total | 334,081,592.00 | 333,352,986.00 |
2) Significant Dividend Receivable Aging over One Year
Unit: RMB
| Item (or investee) | Ending balance | Ageing | Unrecovered reason | Whether occurred impairment and its judgment basis |
| N/A |
3) Withdrawal of Bad Debt Provision
□ Applicable ? Not applicable
Other notes:
N/A
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature of other receivables | Ending carrying balance | Beginning carrying balance |
| Transaction amount | 24,295,439,284.00 | 19,338,630,021.00 |
| Others | 247,152,418.00 | 226,870,164.00 |
| Total | 24,542,591,702.00 | 19,565,500,185.00 |
2) Withdrawal of Bad Debt Provision
Unit: RMB
| Provision for impairment | 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) |
BOE Technology Group Co., Ltd. Interim Report 2023
| Balance of 1 January 2023 | 0.00 | 0.00 | 20,707,796.00 | 20,707,796.00 |
| Balance of 1 January 2023 in the current period | ||||
| -Transfer to the Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Transfer to Phase III | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase II | 0.00 | 0.00 | 0.00 | 0.00 |
| -Reverse to Phase I | 0.00 | 0.00 | 0.00 | 0.00 |
| Withdrawal of the current period | 0.00 | 0.00 | 158,067.00 | 158,067.00 |
| Reversal of the current period | 0.00 | 0.00 | 4,745,921.00 | 4,745,921.00 |
| 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 2023 | 0.00 | 0.00 | 16,119,942.00 | 16,119,942.00 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable ? Not applicable
Disclosed by aging
Unit: RMB
| Ageing | Ending balance |
| Within 1 year (including 1 year) | 12,196,630,358.00 |
| 1 to 2 years | 9,928,547,558.00 |
| 2 to 3 years | 2,340,741,214.00 |
| Over 3 years | 76,672,572.00 |
| 3 to 4 years | 19,273,731.00 |
| 4 to 5years | 43,267,042.00 |
| Over 5 years | 14,131,799.00 |
| Total | 24,542,591,702.00 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawal | Reversal or recovery | Write-off | Others | |||
| Bad debt provisions for other receivables | 20,707,796.00 | 158,067.00 | 4,745,921.00 | 0.00 | 0.00 | 16,119,942.00 |
| Total | 20,707,796.00 | 158,067.00 | 4,745,921.00 | 0.00 | 0.00 | 16,119,942.00 |
N/AOf which bad debt provision reversed or recovered with significant amount:
Unit: RMB
| Subsidiary | Amount reversed or recovered | Way of recovery |
| N/A |
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
4) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| N/A |
Of which the verification of significant other accounts receivable:
Unit: RMB
| Subsidiary | Nature | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transactions |
| N/A |
Notes of verification of other receivables:
N/A
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Subsidiary | Nature | Ending balance | Ageing | Proportion to the total ending balance of other receivables | Ending balance of bad debt provisions |
| Customer A | Transaction amount | 6,400,644,338.00 | Within 1 year (including 1 year), 1 to 2 years, and 2 to 3 years | 26.08% | 0.00 |
| Customer B | Transaction amount | 5,034,990,393.00 | Within 1 year (including 1 year), 1 to 2 years, 2 to 3 years, 4 to 5 years, and 5 years and above | 20.52% | 0.00 |
| Customer C | Transaction amount | 3,433,790,865.00 | Within 1 year (including 1 year), 1 to 2 years, 2 to 3 years,, and 4 to 5 years | 13.99% | 0.00 |
| Customer D | Transaction amount | 2,498,484,647.00 | Within 1 year (including 1 year) and 3 to 4 years | 10.18% | 0.00 |
| Customer E | Transaction amount | 2,203,861,316.00 | Within 1 year (including 1year) and 1 to 2 years | 8.98% | 0.00 |
| Total | 19,571,771,559.00 | 79.75% | 0.00 |
6) Accounts Receivable Involving Government Grants
Unit: RMB
| Subsidiary | Project of government grants | Ending balance | Ending aging | Estimated recovering time, amount and basis |
| N/A |
N/A
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued InvolvementN/AOther notes:
N/A
3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Book value | Provision for impairment | Carrying amounts | Book value | Provision for impairment | Carrying amounts | |
| Investment to subsidiaries | 214,623,892,313.00 | 32,000,000.00 | 214,591,892,313.00 | 211,178,767,516.00 | 32,000,000.00 | 211,146,767,516.00 |
| Investment to joint ventures and associated enterprises | 3,637,137,141.00 | 0.00 | 3,637,137,141.00 | 3,162,185,504.00 | 0.00 | 3,162,185,504.00 |
| Total | 218,261,029,454.00 | 32,000,000.00 | 218,229,029,454.00 | 214,340,953,020.00 | 32,000,000.00 | 214,308,953,020.00 |
(1) Investment to Subsidiaries
Unit: RMB
| Investee | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance for impairment provisions | |||
| Additional investments | Reduced investments | Impairment provisions | Others | ||||
| BOE Semi-conductor Co., Ltd. | 9,450,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 9,450,000.00 | 0.00 |
| Beijing Yinghe Century Co., Ltd. | 352,398,076.00 | 0.00 | 0.00 | 0.00 | 2,617,830.00 | 355,015,906.00 | 0.00 |
| Beijing BOE Land Co., Ltd. | 9,480,764.00 | 0.00 | 0.00 | 0.00 | 233,472.00 | 9,714,236.00 | 0.00 |
| BOE (Heibei) Mobile Display Technology Co., Ltd. | 1,356,283,555.00 | 0.00 | 0.00 | 0.00 | 247,284.00 | 1,356,530,839.00 | 0.00 |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 41,986,755.00 | 0.00 | 0.00 | 0.00 | 1,261,746.00 | 43,248,501.00 | 0.00 |
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,933,529.00 | 0.00 | 0.00 | 0.00 | 86,568.00 | 20,020,097.00 | 0.00 |
| Beijing BOE Vacuum Technology Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 32,000,000.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 40,981,121.00 | 0.00 | 0.00 | 0.00 | 3,516,114.00 | 44,497,235.00 | 0.00 |
| BOE Optical Science and Technology Co., Ltd. | 667,477,273.00 | 0.00 | 0.00 | 0.00 | 1,388,886.00 | 668,866,159.00 | 0.00 |
| Beijing BOE Sales Co., Ltd. | 31,573,496.00 | 0.00 | 0.00 | 0.00 | 140,190.00 | 31,713,686.00 | 0.00 |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25,108,960,003.00 | 0.00 | 0.00 | 0.00 | 12,884,952.00 | 25,121,844,955.00 | 0.00 |
| BOE (Korea) Co., Ltd. | 7,095,901.00 | 0.00 | 0.00 | 0.00 | 852,876.00 | 7,948,777.00 | 0.00 |
| BOE Optoelectronics Holding Co., Ltd. | 3,487,684,762.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,487,684,762.00 | 0.00 |
| Beijing BOE Display Technology Co., Ltd. | 17,647,311,114.00 | 0.00 | 0.00 | 0.00 | 31,610,868.00 | 17,678,921,982.00 | 0.00 |
| Beijing BOE Energy Technology Co., Ltd. | 857,581,382.00 | 0.00 | 0.00 | 0.00 | 891,570.00 | 858,472,952.00 | 0.00 |
| Beijing BOE Multimedia Technology Co., Ltd. | 400,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 400,000,000.00 | 0.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,063,122,784.00 | 0.00 | 0.00 | 0.00 | 7,196,886.00 | 9,070,319,670.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Beijing Matsushita Colour Innovation Co., Ltd. | 5,151,625.00 | 0.00 | 0.00 | 0.00 | 668,274.00 | 5,819,899.00 | 0.00 |
| Beijing BOE Vision Electronic Technology Co., Ltd. | 4,427,357,720.00 | 0.00 | 0.00 | 0.00 | 487,590.00 | 4,427,845,310.00 | 0.00 |
| Beijing BOE Life Technology Co., Ltd. | 10,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 |
| Beijing Zhongxiangying Technologies Co., Ltd. | 102,267,168.00 | 0.00 | 0.00 | 0.00 | 100,596.00 | 102,367,764.00 | 0.00 |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,814,307,688.00 | 0.00 | 0.00 | 0.00 | 1,283,460.00 | 11,815,591,148.00 | 0.00 |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 20,155,950,604.00 | 0.00 | 0.00 | 0.00 | 8,358,828.00 | 20,164,309,432.00 | 0.00 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 19,599,657,767.00 | 0.00 | 0.00 | 0.00 | 3,556,950.00 | 19,603,214,717.00 | 0.00 |
| Hefei BOE Display Technology Co., Ltd. | 2,041,579,920.00 | 0.00 | 0.00 | 0.00 | 5,163,360.00 | 2,046,743,280.00 | 0.00 |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 14,701,372,178.00 | 0.00 | 0.00 | 0.00 | 3,121,974.00 | 14,704,494,152.00 | 0.00 |
| BOE Healthcare Investment & Management Co., Ltd. | 7,824,073,441.00 | 620,000,000.00 | 0.00 | 0.00 | 863,382.00 | 8,444,936,823.00 | 0.00 |
| BOE Wisdom IOT Technology Co., Ltd. | 28,396,091.00 | 0.00 | 0.00 | 0.00 | 3,160,836.00 | 31,556,927.00 | 0.00 |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 604,704,163.00 | 0.00 | 0.00 | 0.00 | 623,424.00 | 605,327,587.00 | 0.00 |
| Beijing BOE Technology Development Co., Ltd. | 2,512,354.00 | 0.00 | 0.00 | 0.00 | 199,230.00 | 2,711,584.00 | 0.00 |
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | 1,518,597,279.00 | 0.00 | 0.00 | 0.00 | 1,343,346.00 | 1,519,940,625.00 | 0.00 |
| Beijing BOE Sensor Technology Co., Ltd. | 4,496,105,589.00 | 0.00 | 0.00 | 0.00 | 3,920,910.00 | 4,500,026,499.00 | 0.00 |
| Mianyang BOE Optoelectronics Co., Ltd. | 22,342,273,335.00 | 0.00 | 0.00 | 0.00 | 3,035,214.00 | 22,345,308,549.00 | 0.00 |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 12,524,485,421.00 | 0.00 | 0.00 | 0.00 | 2,872,524.00 | 12,527,357,945.00 | 0.00 |
| Chongqing BOE Display Technology Co., Ltd. | 9,312,579,810.00 | 700,275,250.00 | 0.00 | 0.00 | 2,095,944.00 | 10,014,951,004.00 | 0.00 |
| Fuzhou BOE Display Technology Co., Ltd. | 22,836,726.00 | 0.00 | 0.00 | 0.00 | 100,596.00 | 22,937,322.00 | 0.00 |
| Hefei BOE Xingyu Technology Co., Ltd. | 506,367,236.00 | 0.00 | 0.00 | 0.00 | 242,964.00 | 506,610,200.00 | 0.00 |
| BOE Innovation Investment Co., Ltd. | 3,198,191,319.00 | 380,000,000.00 | 0.00 | 0.00 | 255,780.00 | 3,578,447,099.00 | 0.00 |
| BOE Education Technology Co., Ltd. | 29,259,274.00 | 0.00 | 0.00 | 0.00 | 0.00 | 29,259,274.00 | 0.00 |
| BOE Smart Technology Co., Ltd. | 2,072,000,000.00 | 150,000,000.00 | 0.00 | 0.00 | 0.00 | 2,222,000,000.00 | 0.00 |
| Nanjing BOE Display Technology Co., Ltd. | 5,598,629,797.00 | 0.00 | 0.00 | 0.00 | 2,569,350.00 | 5,601,199,147.00 | 0.00 |
| Chengdu CEC Panda Display Technology Co., Ltd. | 7,557,371,638.00 | 0.00 | 0.00 | 0.00 | 2,265,870.00 | 7,559,637,508.00 | 0.00 |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | 13,786,416.00 | 0.00 | 0.00 | 0.00 | 962,280.00 | 14,748,696.00 | 0.00 |
| BOE Mled Technology Co., Ltd. | 1,312,793,925.00 | 39,000,000.00 | 0.00 | 0.00 | 5,147,346.00 | 1,356,941,271.00 | 0.00 |
| BOE Environmental Energy Technology Co., Ltd. | 50,000,000.00 | 0.00 | 0.00 | 0.00 | 1,134,630.00 | 51,134,630.00 | 0.00 |
| Chengdu BOE Display Technology Co., Ltd. | 5,263,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5,263,000.00 | 0.00 |
| Beijing BOE Chuangyuan Technology Co., Ltd. | 0.00 | 1,049,653,000.00 | 0.00 | 0.00 | 0.00 | 1,049,653,000.00 | 0.00 |
| Mianyang BOE Electronics Technology Co., Ltd. | 0.00 | 200,000,000.00 | 0.00 | 0.00 | 0.00 | 200,000,000.00 | 0.00 |
| Beijing Shiyan Technology Co., Ltd. | 0.00 | 167,200,000.00 | 0.00 | 0.00 | 0.00 | 167,200,000.00 | 0.00 |
| Others* | 167,575,517.00 | 0.00 | 0.00 | 0.00 | 22,532,647.00 | 190,108,164.00 | 0.00 |
| Total | 211,146,767,516.00 | 3,306,128,250.00 | 0.00 | 0.00 | 138,996,547.00 | 214,591,892,313.00 | 32,000,000.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| The investor | Beginning balance (carrying value) | Increase/decrease | Ending balance (carrying value) | Ending balance for impairment provisions | |||||||
| Additional investments | Reduced investments | Profit and loss on investments confirmed according to equity law | Adjustment of other comprehensive income | Other equity movements | Declared distribution of cash dividends or profits | Impairment provisions | Others | ||||
| I. Joint ventures | |||||||||||
| N/A | |||||||||||
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision Component Co., Ltd. | 3,049,888.00 | 0.00 | 0.00 | -19,978.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,029,910.00 | 0.00 |
| Beijing Nittan Electronic Co., Ltd. | 77,049,589.00 | 0.00 | 0.00 | -2,113,779.00 | 0.00 | 0.00 | -800,000.00 | 0.00 | 0.00 | 74,135,810.00 | 0.00 |
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 2,073,333.00 | 0.00 | 350,000.00 | -295,183.00 | 0.00 | 0.00 | -1,428,150.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Erdos BOE Energy Investment Co., Ltd. | 136,459,610.00 | 0.00 | 0.00 | -143,926.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 136,315,684.00 | 0.00 |
| TPV Display Technology (China) Limited | 30,237,982.00 | 0.00 | 0.00 | -11,151.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 30,226,831.00 | 0.00 |
| Beijing XindongNeng Investment Fund (LLP) | 2,034,870,324.00 | 0.00 | 0.00 | 582,469,724.00 | 6,317,985.00 | 0.00 | -173,692,640.00 | 0.00 | 0.00 | 2,449,965,393.00 | 0.00 |
| Beijing Xindongneng Investment | 13,963,180.00 | 0.00 | 0.00 | 289,640.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 14,252,820.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
| Management Co., Ltd. | |||||||||||
| Beijing Xloong Technologies Co., Ltd. | 20,544,910.00 | 0.00 | 0.00 | -117,901.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 20,427,009.00 | 0.00 |
| Beijing Innovation Industry Investment Co., Ltd. | 223,216,553.00 | 0.00 | 0.00 | 10,497,016.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 233,713,569.00 | 0.00 |
| Beijing Electric Control Industry Investment Co., Ltd. | 258,149,907.00 | 56,801,200.00 | 0.00 | 131,025.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 315,082,132.00 | 0.00 |
| BOE Yiyun Science & Technology Co., Ltd. | 359,151,756.00 | 0.00 | 0.00 | -1,360,158.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 357,791,598.00 | 0.00 |
| Guoke BOE (Shanghai) Equity Investment Management Co., Ltd. | 3,418,472.00 | 0.00 | 0.00 | -1,222,087.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,196,385.00 | 0.00 |
| Sub-total | 3,162,185,504.00 | 56,801,200.00 | 350,000.00 | 588,103,242.00 | 6,317,985.00 | 0.00 | -175,920,790.00 | 0.00 | 0.00 | 3,637,137,141.00 | 0.00 |
| Total | 3,162,185,504.00 | 56,801,200.00 | 350,000.00 | 588,103,242.00 | 6,317,985.00 | 0.00 | -175,920,790.00 | 0.00 | 0.00 | 3,637,137,141.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2023
(3) Other Notes
N/A
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Income | Cost | Income | Cost | |
| Principal activities | 1,659,293,001.00 | 4,572,011.00 | 2,707,458,580.00 | 5,154,112.00 |
| Other operating activities | 7,058,286.00 | 86,600.00 | 5,353,456.00 | 127,110.00 |
| Total | 1,666,351,287.00 | 4,658,611.00 | 2,712,812,036.00 | 5,281,222.00 |
Relevant information of revenue
Unit: RMB
| Category of contracts | Segment 1 | Segment 2 | Total |
| Types of products | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By operating places | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By types of market or customers | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| Types of contracts | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By the time of transferring goods | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By contract term | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| By marketing channel | 0.00 | 0.00 | 0.00 |
| Of which: | |||
| Total | 0.00 | 0.00 | 0.00 |
Information related to performance obligations:
Generally, the Group assumes the performance obligations of merchandise sales and services for customers. For merchandise sales, ifterms of sales returns are offered, the limit of income recognition is that cumulated recognised income most likely will not havesignificant returns. In terms of performance obligations to be performed within a certain period of time, income is recognised accordingto the performance progress. Quality assurance provided by customers generally is guaranteed quality assurance. Such guaranteedquality assurance will not be regarded as a single performance obligation.The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet wasRMB0.00 at the period-end.Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet wasRMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in 0 year, RMB0.00 in 0 year and RMB0.00 in 0year.Other notes:
N/A
5. Investment Income
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Income from long-term equity investments accounted for using cost method | 699,897,436.00 | 1,099,923,077.00 |
| Income from long-term equity investments accounted for using equity method | 588,103,242.00 | 416,617,496.00 |
| Investment income from disposal of long-term equity investments | 1,581,850.00 | 0.00 |
| Investment income arising from holding of trading financial assets | 3,990,185.00 | 0.00 |
| Investment income from disposal of financial assets held for trading | 0.00 | 0.00 |
| Dividend income received from holding of other equity instrument investment | 728,606.00 | 206,210.00 |
| Gain from remeasurement of remaining equity interests to fair value upon the loss of control | 0.00 | 0.00 |
| Interest income of investment in debt obligations during holding period | 0.00 | 0.00 |
| Interest income of investment in other debt obligations during holding period | 0.00 | 0.00 |
| Investment income from disposal of investment in other debt obligations | 0.00 | 0.00 |
| Others | 0.00 | 0.00 |
| Total | 1,294,301,319.00 | 1,516,746,783.00 |
6. Other
N/A
XVII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
? Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses on the disposal of non-current assets (inclusive of impairment allowance write-offs) | -8,863,349.00 | N/A |
| Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents | 0.00 | N/A |
| Government grants recognised 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 | 2,720,705,196.00 | 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 management | 0.00 | N/A |
| 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 held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 211,275,427.00 | N/A |
| Reversed portions of impairment allowances for accounts receivable which are tested individually for impairment | 14,453,653.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | N/A |
BOE Technology Group Co., Ltd. Interim Report 2023
| 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 |
| Other non-operating income and expenses besides items above | 185,555,680.00 | N/A |
| Other items qualified as extraordinary gain and loss | 0.00 | N/A |
| Less: Income tax effects | 114,191,959.00 | N/A |
| Non-controlling interests effects | 688,684,748.00 | N/A |
| Total | 2,320,249,900.00 | -- |
Others that meets the definition of non-recurring gain/loss:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory Announcement No. 1 onInformation Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as a recurrent gain/lossitem
□ Applicable ? Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average return on net assets | EPS (Yuan/share) | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to the Company’s ordinary equity shareholders | 0.50% | 0.02 | 0.02 |
| Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | -1.31% | -0.05 | -0.05 |
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 International andChinese 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 Overseas AccountingStandards; for any Adjustment Made to the Difference Existing in the Data Audited by the Foreign AuditingAgent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
N/A
4. Other
N/A