ANNUAL REPORT 2020
April 2021
Part I Important Notes, Table of Contents and DefinitionsThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President, Ms.Sun Yun, Chief Financial Officer, and Ms. Yang Xiaoping, head of the financial department(equivalent to financial manager) hereby guarantee that the Financial Statements carried inthis Report are factual, accurate and complete.All the directors of the Company except for the following attended in person the Boardmeeting for the review of this Report and its summary.
| Name | Office title | Reason for not attending the meeting in person | Proxy entrusted to attend the meeting |
| Pan Jinfeng | Director | Due to work | Li Yantao |
| Song Jie | Director | Due to work | Li Yantao |
| Sun Yun | Director | Due to work | Liu Xiao Dong |
Any plans for the future and other forward-looking statements mentioned in this Report shallNOT be considered as absolute promises of the Company to investors. Investors, amongothers, shall be sufficiently aware of the risk and shall differentiate between plans andforecasts and promises.The Board has approved a final dividend plan for the Reporting Period. Based on34,770,212,630 shares (the total share capital minus the shares in the share repurchaseaccount), a cash dividend of RMB1.00 (tax inclusive) per 10 shares is to be distributed to allthe shareholders, with no bonus issue from either profit or capital reserves.This Report has been prepared as per the Chinese Accounting Standards for BusinessEnterprises and other relevant regulations. KPMG Huazhen LLP has issued an independentauditor’s report with unmodified unqualified opinion for the Company.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Business Summary ...... 11
Part IV Operating Performance Discussion and Analysis ...... 15
Part V Significant Events ...... 42
Part VI Share Changes and Shareholder Information ...... 70
Part VII Preferred Shares ...... 83
Part VIII Convertible Corporate Bonds ...... 84
Part IX Directors, Supervisors, Senior Management and Staff ...... 85
Part X Corporate Governance ...... 102
Part XI Corporate Bonds ...... 111
Part XII Financial Statements ...... 117
Part XIII Documents Available for Reference ...... 309
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| SZSE, the Stock Exchange | The Shenzhen Stock Exchange |
| The Stock Listing Rules | The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2020) |
| 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 |
| KPMG | KPMG Huazhen LLP |
| OASIS Hospital | OASIS International Hospital |
| Microdisplay | Microdisplay technology |
| LCD | Liquid Crystal Display |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| OLED | Organic Light Emitting Diode |
| Mini-LED | Submillimeter Light Emitting Diode |
| P0.9 | Point 0.9mm |
| AM | Active matrix |
| Micro-LED | Micro Light Emitting Diode |
| VR/AR | Virtual Reality /Augmented Reality |
| IoT | Internet of Things |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| ESL | Electronic Shelf Label |
| 3C | Computer, communication and consumer electronics |
| CsI | Cesium iodide |
| ICT | Information and Communication Technology |
| OEE management system | Overall Equipment Effectiveness management system |
| MRP | Material Requirement Planning |
| C-end | Customer-end |
| B-end | Business-end |
| SID | The Society for Information Display |
| OEE management system | Overall Equipment Effectiveness management system |
| IEC | International Electrotechnical Commission |
| COG | Chip (Mini LED) On Glass |
| SMD | Surface Mount Technology |
| COB | Chip (Mini LED) On Board (PCB) |
| BD Cell | BOE Dual Cell |
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Changed stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Chen Yanshun | ||
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China | ||
| Zip code | 100015 | ||
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | ||
| Zip code | 100176 | ||
| Company website | www.boe.com | ||
| Email address | web.master@boe.com.cn | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | Su Xuefei |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China |
| Tel. | 010－64318888 ext. | 010－64318888 ext. |
| Fax | 010－64366264 | 010－64366264 |
| E-mail address | liuhongfeng@boe.com.cn | suxuefei@boe.com.cn |
III Media for Information Disclosure and Place where this Report Is Lodged
| Newspapers designated by the Company for information disclosure | China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK) |
| Website designated by CSRC for publication of this Report | http://www.cninfo.com.cn/ |
| Place where this Report is lodged | Board Secretary’s Office |
IV Changes to Company Registered Information
| Unified social credit code | No change |
| Change to principal activity of the Company since going public (if any) | No change |
| Every change of controlling shareholder since incorporation (if any) | No change |
V Other Information
The independent audit firm hired by the Company:
| Name | KPMG Huazhen LLP |
| Office address | 8/F, KPMG Tower, Oriental Plaza, 1 East Chang An Avenue, Beijing, P.R.China |
| Accountants writing signatures | Zhang Huan and Chai Jing |
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Item | 2020 | 2019 | 2020-over-2019 change (%) | 2018 |
| Operating revenue (RMB) | 135,552,569,729.00 | 116,059,590,164.00 | 16.80% | 97,108,864,935.00 |
| Net profit attributable to the listed company’s shareholders (RMB) | 5,035,627,952.00 | 1,918,643,871.00 | 162.46% | 3,435,127,975.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 2,670,454,834.00 | -1,166,793,317.00 | - | 1,517,702,353.00 |
| Net cash generated from/used in operating activities (RMB) | 39,251,773,458.00 | 26,083,079,194.00 | 50.49% | 25,684,047,196.00 |
| Basic earnings per share (RMB/share) | 0.13 | 0.05 | 160.00% | 0.10 |
| Diluted earnings per share (RMB/share) | 0.13 | 0.05 | 160.00% | 0.10 |
| Weighted average return on equity (%) | 5.15% | 2.16% | 2.99% | 4.00% |
| Item | 31 December 2020 | 31 December 2019 | Change of 31 December 2020 over 31 December 2019 (%) | 31 December 2018 |
| Total assets (RMB) | 424,256,806,331.00 | 340,412,203,308.00 | 24.63% | 304,028,491,385.00 |
| Equity attributable to the listed company’s shareholders (RMB) | 103,276,766,835.00 | 95,058,129,055.00 | 8.65% | 85,856,748,703.00 |
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there wasuncertainty about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 23,887,380,060.00 | 32,863,949,005.00 | 38,149,823,526.00 | 40,651,417,138.00 |
| Net profit attributable to the listed company’s shareholders | 566,676,460.00 | 568,773,865.00 | 1,340,387,777.00 | 2,559,789,850.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | -502,352,271.00 | 326,023,686.00 | 1,064,128,213.00 | 1,782,655,206.00 |
| Net cash generated from/used in operating activities | 5,223,671,919.00 | 4,493,003,615.00 | 13,751,838,874.00 | 15,783,259,050.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
√Yes □No
The quarterly operating revenue is re-presented according to the approved data, which has no impact on other financial indicators.
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | 2020 | 2019 | 2018 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 373,432,171.00 | 20,340,136.00 | -25,632,761.00 | N/A |
| Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents | 0.00 | 0.00 | 0.00 | N/A |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 2,332,107,692.00 | 2,640,634,861.00 | 2,073,709,661.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 0.00 | 0.00 | 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 | 0.00 | 0.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on assets entrusted to other entities for investment or management | 0.00 | 0.00 | 0.00 | N/A |
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | 0.00 | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair prices | 0.00 | 0.00 | 0.00 | N/A |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & income from | 82,698,484.00 | 112,668,244.00 | 315,279,377.00 | N/A |
| disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | ||||
| Reversed portions of impairment allowances for accounts receivable and contract assets which are tested individually for impairment | 15,447,820.00 | 1,498,805.00 | 1,779,710.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | 0.00 | 0.00 | N/A |
| Gain or loss on fair-value changes in investment property of which subsequent measurement is carried out using the fair value method | 0.00 | 0.00 | 0.00 | N/A |
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current profit or loss | 0.00 | 0.00 | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | 0.00 | 0.00 | N/A |
| Non-operating income and expense other than the above | 65,391,368.00 | 96,799,305.00 | 63,734,628.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | 795,126,980.00 | 0.00 | N/A |
| Less: Income tax effects | 185,966,533.00 | 285,904,312.00 | 328,634,385.00 | N/A |
| Non-controlling interests effects (net of tax) | 317,937,884.00 0 | 295,726,831.00 | 182,810,608.00 | N/A |
| Total | 2,365,173,118.00 | 3,085,437,188.00 | 1,917,425,622.00 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/LossItems:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
Part III Business SummaryI Principal Activity of the Company in the Reporting PeriodBOE is an IoT company that provides smart ports and professional services for information interaction and human health. After yearsof innovation-driven development, the Group recorded revenue of over RMB100 billion for the first time in 2019, establishing itsstatus as a global leader in the semiconductor display sector. In 2020, the Group established a strategic goal of becoming aninnovative IoT enterprise with absolute advantages in a number of segments. It furthered management changes based on analysis andbusiness model study of the development trends of the semiconductor display and IoT markets. By building platforms at multiplelevels and on all fronts, it integrated ecological chain, expedited integrated development, and built a multi-layer strategic businessstructure on the basis of core capacities and extension of industrial value chain. Under its strategic thinking, the Group hasestablished a "1+4+N" BG structure extended to the semiconductor display chain and the value chain of many IoT scenarios based onits core capacities in display and sensor."1" means the Semiconductor Display business, which is the key driver of the Group's business growth and has taken up the leadingposition on the industrial chain thanks to core technical capability reserves. The business has the intellectual capital and resourcereserves to propel the fast growth of other businesses."4" means Sensor and Solution business, Mini-LED business, Intelligence System and Innovation business, and Smart MedicalEngineering business, which the Group is concentrating resources to develop for their enormous potential, on the back of the corecapacities in the Semiconductor Display business and the predictions of future technology and market development. These businesseshave gathered momentum for building of core capacities and are poised to be the principal businesses as the Group goes forward."N" means specific businesses integrated into IoT scenarios, including Intelligent Car Networking, Smart Retail, Smart Finance,Smart Medicine and Engineering, Industrial IoT, and Smart City Public Service, and Digital Art. It is an extended business layer onthe basis of the core capacities in value chains of "1" and "4". Under the principle of "core capacities empowerment and outwarddevelopment", this business layer will penetrate deep into the IoT scenarios and market segments to boost business growth and corecapacities upgrading.To promote the development of the "1+4" BG structure, the Group strengthens investment business dominated by industrial funds,with the primary objective of ensuring the security of the supply chain and building industrial clusters and ecological alliances tofacilitate the better and faster development of "1+4+N" businesses. In the meanwhile, the Group builds customer touchpointsfocusing on product and market innovation cooperation with strategic partners, suppliers, customers, investors and even allenterprises and individuals with innovative mindset and ability, who are not only a crucial driving force for rapid market expansionand supply chain security but also a key window for gaining insights into market changes, understanding product and customer needs,and swiftly responding to characteristics and specific market segments.As an open platform, the Smart System Innovation Center is open to all layers of the "1+4" BG structure, especially to strategictechnology and market partners, upstream and downstream industrial partners, investors, and internal and external entities andindividuals with innovative ideas, channels and market methods. This platform facilitates cooperation to expand market and customerbase and jointly create products and value for win-win outcomes.The specifics are as follows:
1. Display business
Display business offers TFT-LCD, AMOLED, Microdisplay and other intelligent interface devices designed and manufactured in anintegrated way, to create an integrated platform of panels, modules, whole products and services. Display business providescustomers with high-quality display devices such as smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic
shelf label (ESL), tiled display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare,mobile payment, and interactive whiteboards, as well as the most competitive intelligent services in 3C display, smart IoT, systemplatform, and other fields.
2. Sensor and Solution business
Sensor and Solution business offers B2B customers integrated design and manufacturing services of sensor devices for use inmedical detection, household detection, communication & transportation, smart homes, etc., as well as sensor system solutionsregarding medical imaging, biological detection, smart screens, microwave communication, fingerprint identification and the like,with products including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification systems,etc.
3. Mini-LED business
Mini-LED business renders Mini-LED backlight products with high reliability and high dynamic range of dimming for mobile phones,tablet PCs, laptops, monitors, TVs, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and highdynamic range for outdoor, commercial and other purposes. All these products are designed and manufactured in an integrated manner.
4. Intelligence System and Innovation business
Intelligence System and Innovation business offers overall system solutions under integrated design and backed by AI and big data,such as smart government affairs, city beautification, smart transportation, smart finance, smart education, smart park, smart energyand other IoT solutions, for products and services combining hardware and software.
5. Smart Medical Engineering business
Smart Medical Engineering business adopts the professional healthcare service model to combine technologies with medicine andintegrate medicine and engineering with innovation, so as to provide families, communities and hospitals with the four core servicesof health management, health technology, digital hospital, and technology services. The health IoT platform connects testingequipment, medical workers and customers to build a smart health management ecosystem where customers enjoy health servicesincluding prevention, treatment, therapy and nursing.II Significant Changes in Major Assets
1. Significant Changes in Major Assets
| Major assets | Main reason for significant changes |
| Equity assets | N/A |
| Fixed assets | Fixed assets increased primarily driven by the reclassification of new constructions into fixed assets and the changes to the consolidation scope in the Reporting Period. |
| Intangible assets | N/A |
| Construction in progress | Construction in progress decreased primarily driven by the reclassification of new constructions into fixed assets in the Reporting Period. |
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
With the vision of becoming the "Best on Earth, The World Leader", BOE "never says tired, never says difficult, never says give up,and never says satisfied" in driving its development through unceasing independent innovation. Leveraging its core technologies indisplay and sensor products, it has constructed a BG structure extended to the industry chain of semiconductor display and the valuechain of various IoT scenarios.After nearly 28 years of development, BOE has become a global leader in the semiconductor display sector, with total display screenshipments ranking first and the largest market share in the five mainstream applications and innovative applications in the world. In2020, BOE took an active part in the integration and reorganization of the display sector, successfully completing mergers andacquisitions of production lines to further expand its advantages in terms of market share, technology and regional layout. As a result,it has further consolidated its leading position in the industry. In the meanwhile, BOE launched a brand-new development platformcalled Smart System Innovation Center as a key engine for the transformation and development of IoT.Market position was steadily improved:
In 2020, BOE continued its innovation-driven development in the context of the global spread of COVID-19 that badly hit the workeconomy. Display business recorded growth of display device sales despite all the difficulties. The sales volume of annual displaydevices climbed by 18% year on year. The market share of sales of smartphone LCD, tablet PC display screen, laptop display screen,display monitor and TV display continued its first ranking status. Sales of innovative application products registered year-on-yeargrowth of more than 60%, with an increase in shipping area of over 70%; the market share of wearables, ESL, electronic tags, tileddisplay screens and IoT finance applications ranked top globally. Breakthroughs were made in the shipments of flexible OLEDproducts, with year-on-year expansion of more than 100%. Sales of whole 3C products of above 65 inches rose by more than 15%year on year, and that of whole TV in China increased by over 145%. BOE completed the acquisition of Gen-8.5 LCD productionline of Nanjing CEC Panda and Gen-8.6 LCD production line of Chengdu CEC Panda, further enhancing its product varieties andcapacity advantages.Sensor and Solution business: The full-size X-ray flat panel X-ray detectors (FPXD) of 12-46 inches for medical purpose have beenapplied in global high-end medical device companies in Europe, the United States, Japan, South Korea and other countries. Inparticular, CsI products sales growth 300% year on year. With innovative displays and sensors and light transmittance adjustable bytouch or keystroke, smart screens have been applied in many areas including transportation and construction. The product wasdelivered for Beijing-Xiong'an Tourist Area, Beijing-Zhangjiakou Tourist Area, maglev, and other projects.Intelligence System and Innovation business: BOE provided smart financial solutions for around 1,500 banking outlets across China,including ICBC, CCB, ABC, CITIC Bank, and CMB; smart retail solutions for more than 20,000 stores in over 61 countries aroundthe world; and display products for over 80% of high-speed rail lines and 22 urban subway lines in China. As for smart parksolutions, BOE leveraged technologies such as IoT, cloud computing and AI to build all park subsystems and enable integratedmanagement of people, vehicles and the environment. The Company's smart park solutions have been applied to projects in six majorcities, including Taoxichuan in Jingdezhen City, Guangnian Town in Tianjin Municipality, and Universal Studios in BeijingMunicipality. As for urban beautification, BOE has completed a series of projects including Twin Towers in Chengdu and WandaSquare in Wuhan, which are new engines and new landmarks for boosting the economic development of the cities.Smart Medical Engineering business: BOE rendered smart health management services through a digital hospital platform integratingdigital treatment and therapy, digital services, digital management and digital promotion. Furthermore, BOE rolled out IoT solutionssuch as integrated management of chronic diseases, Smart Emergency, Smart Health Care Community, and Smart Public Health andPhysical Examination, and joined hands with Beijing Emergency Center to enable synchronous flow of information of alarms,emergency centers, hospitals, ambulances, doctors/volunteers, thus effectively shortening the time of responding to patients needingfirst aid. The Company partnered with Peking University Third Hospital to promote the use of a new model for early screening, earlydiagnosis and early treatment of chronic obstructive pulmonary disease. Outpatients and discharges of Hefei Hospital grew by 120%and 200% year on year, respectively, and operations increased by over 185%. BOE also integrated digital human APP into mobile
health APP. The Company carried out in-depth cooperation with BioChain in cancer early diagnosis detection and tumor concomitantdiagnosis to build a whole industry chain to protect people's health.Technical strengths were further enhanced:
BOE continued to apply for and obtain more patents, with more than 9,000 new patent applications in the year. In particular, theCompany filed over 4,500 new patent applications in respect of flexible OLED, sensor, AI, big data and other innovative fields. Newpatent authorizations amounted to 5,500, including over 2,300 overseas authorizations. Besides, the Company led the formulationand amendment of 36 external technical standards, and group standards led by BOE such as IEC international standards for LCDmulti-screen display terminals and 8K TV display interface specifications were officially released. The flexible AMOLED R&D andindustrialization project won the special prize of Beijing Annual Science and Technology Progress Award. Five AI technologies ofBOE including character recognition and behavior recognition took the first place in international industry competitions.As for innovation in product and technology applications, TV BD Cell won the SID Global Display Industry Award 2020, as itsapplication was extended to vehicles, hospitals and broadcast. InP-based red quantum dot light-emitting diode and green devices sawconsiderable efficiency improvement, continuing to lead the industry. The face recognition algorithm for masked people had a passrate of above 95%, among the highest in the industry. In biochip development, BOE completed R&D of a nucleic acid detectionsystem prototype that was fully automatic microfluidic.Operating efficiency was continuously increased:
BOE continuously optimized its operation mechanism, strengthened effective and rapid collaboration marketing, supply andmanufacturing, and further enhanced production line operations through OEE management system, thus further increasing efficiency.The tiled display screens from Beijing Gen-8.5 LCD production line and e-sports display products reached a new high by shipmentrate. The oxide TFT products from Chongqing Gen-8.5 production line achieved breakthroughs, with a further rise in proportion ofminiaturized products. The yield of Hefei Gen-10.5 production line hit a new high, and that of Wuhan Gen-10.5 production linecontinued to improve. Comprehensive product yield reached a record high. BOE continued to rank first in terms of qualityperformance of customers, 27 of the 28 core LCD customers making it to top two and 20 to number one. Five of the 12 strategiccustomers ranked first in terms of quality.Innovative transformation was continuously deepened:
To establish a group-level capabilities system appropriate to the IoT transformation strategy, BOE launched Phase II innovativetransformation of SOPIC in 2020. It has built a "three vertical and three horizontal" operation management mechanism with highefficiency and collaboration, an organizational system for agile response, capabilities reuse and efficient operation, and a verticalmanagement system with strategy, process and performance as the core and integration the front, middle and back offices. As a result,organizational efficiency has notably improved.Besides, with confidence in its future development prospects and high recognition of its value, the Group issued its first medium- andlong-term equity incentive plan in 2020, which was implemented by buying back some social public shares with proprietary funds.Beneficiaries of the plan are the core technical team and key management members. The implementation of the first equity incentiveplan has further improved the corporate governance structure to the interest of shareholders, the Company and core personnel andwill facilitate the realization of the Company's long-term business objectives and the creation of value for all stakeholders.
Part IV Operating Performance Discussion and AnalysisI Overview
In 2020, the world experienced profound changes unseen in a century. The sudden outbreak of COVID-19 hit hard the globaleconomy, triggering a global economic recession, which, coupled with further intensifying trade frictions between China and theUnited States, brought great challenges to the development and operation of companies. On the other hand, China was speeding upefforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulationsreinforcing each other. Online education, online entertainment, telecommuting, telemedicine and other application scenarios spurredthe pandemic saw exponential growth. 5G, AI and other new technologies were integrated with traditional industries at a faster pace.Digital transformation presented strategic opportunities to the market. In the meanwhile, the semiconductor display sector reboundedin the midst of accelerating industry integration. In a complex development environment in China and globally, BOE identifiedopportunities from the crisis in the face of the changing situation. By actively responding to challenges and grasping developmentopportunities, it saw its operating revenue continued to grow to approximately RMB135.553 billion for the whole year, up about
16.80% year on year, and achieved a net profit attributable to the listed company’s shareholders of RMB5.036 billion, up about
162.46% year on year
1. Fast development of the five businesses
Display business: BOE further consolidated its leading position in the semiconductor display sector, which generated operatingrevenue of about RMB131.971 billion in this business during the Reporting Period, up about 16.03% year on year. The Company'smarket position in display devices steadily improved, and product sales volume rose by 18% year on year. The market share of fivemainstream products, such as smartphone LCD screens, tablet PC displays, laptop displays, display screens and TV displays,continued to rank first globally. The market share of innovative application products expanded rapidly, and that of wearables, ESL,electronic tags, tiled display screens and IoT financial applications ranked first in the world. Flexible OLED products grew faster,with year-on-year sales growth of above 100%. BOE completed the acquisition of Gen-8.5 LCD production line of Nanjing CECPanda and Gen-8.6 LCD production line of Chengdu CEC Panda, thus improving its technology and product mixes and competitiveedges.Sensor and Solution business: For medical imaging and smart screens, breakthroughs were made in market development, customerbase expansion, R&D of new products and new technologies, and they witnessed moderate growth, generating operating revenue ofabout RMB120 million in this business during the Reporting Period, up about 90.95% year on year. The shipments of medicalimaging products went up by more than 70% year on year, propelled by more breakthroughs in overseas market expansion; inparticular, shipments to South Korea rose by over 30%. BOE established a partnership with leading medical equipment companies inEurope and the US and the largest detector company in the world. Smart screens were delivered for Beijing-Xiong'an Tourist Area,Beijing-Zhangjiakou Tourist Area, maglev, and other projects, and passenger vehicle skylight, Metro display screens and otherprojects were launched. BOE led the formulation of national standards for electronic dyed glass to pave the way for morebreakthroughs.Mini-LED business: BOE integrated its competitive resources to make early layout for the next-generation display technology. Thus,it has established Mini-LED business as an integral part of its BG structure. The Company made breakthroughs in products,technologies and markets. It has produced 75-inch glass double backlight lighting product and promoted it to some influentialcustomers. The world's first largest needle-type die bonding machine, co-developed by BOE, was installed and commissioned,leading to substantial increase in die bonding speed. Glass straight side lines, die bonding and assembly and other key technologieswere developed. The development and marketing of P0.9 AM glass product are progressing steadily.
Intelligence System and Innovation business: BOE made breakthroughs in business landscape and headway in market expansion.Operating revenue of this business posted about RMB1.328 billion during the Reporting Period, up about 61.72% year on year. Greatbreakthroughs were made in building an innovation center network. With Beijing as the core, the Company built innovation centersnationwide in Chongqing and Chengdu with the focus on six major economic circles, according to the general plan of "one horizontaland one vertical". As for urban beautification, BOE has completed a series of projects including Twin Towers in Chengdu andWanda Square in Wuhan, which are new engines and new landmarks for boosting the economic development of the cities. Smartfinance solutions have been provided for more than 1,500 banking outlets. BOE joined hands with Jindezhen Ceramic Culture Groupto create a new-generation model street and with Universal Studios to create an international top theme park, and these projects havefurther enhanced the international recognition of BOE brand. The Company launched C-series and E-series smart whole products.Smart transportation solutions were offered to build a number of benchmark projects, including Taiyuan Metro Line 2.Smart Medical Engineering business: BOE continued to offer closed-loop full-lifecycle health services with health management asthe core, smart terminals as tools and digital hospitals as support. Health management, health technology, digital hospitals and otherbusinesses saw rapid development. This business generated operating revenue of approximately RMB1.522 billion during theReporting Period, a year-on-year increase of around 12.15%. Regarding health management, BOE also integrated digital human APPinto mobile health APP. Neonatal stem cell storage increased by 180%. Revenue from health technology grew by over 90% year onyear. Health IoT solutions integrating software and hardware such as smart health care and smart emergency were launched inZhejiang, Guangxi, Shandong and Beijing on a trial basis. The market of methylation testing products was expanded in an orderlymanner, and more than 10 dealers have been acquired. The performance of Hefei Hospital, a digital hospital, experienced significantimprovement, with outpatients and discharges up 120% and 200% respectively and operations by more than 185% over last year.
2. Further improved technological innovation capacities
BOE continued to apply for and obtain more patents, with more than 9,000 new patent applications in the year. In particular, theCompany filed over 4,500 new patent applications in respect of flexible OLED, sensor, AI, big data and other innovative fields. Newpatent authorizations amounted to 5,500, including over 2,300 overseas authorizations. Besides, the Company led the formulationand amendment of 36 external technical standards, and group standards led by BOE such as IEC international standards for LCDmulti-screen display terminals and 8K TV display interface specifications were officially released. The flexible AMOLED R&D andindustrialization project won the special prize of Beijing Annual Science and Technology Progress Award. Five AI technologies ofBOE including character recognition and behavior recognition took the first place in international industry competitions. As forinnovation in product and technology applications, TV BD Cell won the SID Global Display Industry Award 2020, as its applicationwas extended to vehicles, hospitals and broadcasting level display. InP-based red quantum dot light-emitting diode and green devicessaw considerable efficiency improvement, continuing to lead the industry. The face recognition algorithm for masked people had apass rate of above 95%, among the highest in the industry. In biochip development, BOE completed R&D of a nucleic acid detectionsystem prototype that was fully automatic microfluidic.II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| Item | 2020 | 2019 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 135,552,569,729.00 | 100% | 116,059,590,164.00 | 100% | 16.80% |
| By operating division | |||||
| Display business | 131,970,602,256.00 | 97.36% | 113,741,071,151.00 | 98.00% | 16.03% |
| Smart System Innovation business | 1,328,060,494.00 | 0.98% | 821,226,259.00 | 0.71% | 61.72% |
| Smart Medicine and Engineering business | 1,522,460,282.00 | 1.12% | 1,357,484,752.00 | 1.17% | 12.15% |
| Sensor and Solution business | 119,817,921.00 | 0.09% | 62,748,635.00 | 0.05% | 90.95% |
| Others | 7,372,351,461.00 | 5.44% | 7,320,141,513.00 | 6.31% | 0.71% |
| Offset | -6,760,722,685.00 | -4.99% | -7,243,082,146.00 | -6.24% | -6.66% |
| By product category | |||||
| Display business | 131,970,602,256.00 | 97.36% | 113,741,071,151.00 | 98.00% | 16.03% |
| Smart System Innovation business | 1,328,060,494.00 | 0.98% | 821,226,259.00 | 0.71% | 61.72% |
| Smart Medicine and Engineering business | 1,522,460,282.00 | 1.12% | 1,357,484,752.00 | 1.17% | 12.15% |
| Sensor and Solution business | 119,817,921.00 | 0.09% | 62,748,635.00 | 0.05% | 90.95% |
| Others | 7,372,351,461.00 | 5.44% | 7,320,141,513.00 | 6.31% | 0.71% |
| Offset | -6,760,722,685.00 | -4.99% | -7,243,082,146.00 | -6.24% | -6.66% |
| By operating segment | |||||
| Mainland China | 65,241,679,286.00 | 48.13% | 59,444,025,767.00 | 51.22% | 9.75% |
| Other regions in Asia | 54,895,384,319.00 | 40.50% | 45,030,859,656.00 | 38.80% | 21.91% |
| Europe | 4,804,966,123.00 | 3.54% | 4,511,337,220.00 | 3.89% | 6.51% |
| America | 10,316,934,261.00 | 7.61% | 6,911,922,720.00 | 5.96% | 49.26% |
| Other regions | 293,605,740.00 | 0.22% | 161,444,801.00 | 0.14% | 81.86% |
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of OperatingRevenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating | YoY change in cost of | YoY change in gross profit |
| revenue (%) | sales (%) | margin (%) | ||||
| By operating division | ||||||
| Display business | 131,970,602,256.00 | 107,769,219,236.00 | 18.34% | 16.03% | 9.60% | 4.79% |
| By product category | ||||||
| Display business | 131,970,602,256.00 | 107,769,219,236.00 | 18.34% | 16.03% | 9.60% | 4.79% |
| By operating segment | ||||||
| Mainland China | 65,241,679,286.00 | 51,556,683,702.00 | 20.98% | 9.75% | 2.21% | 5.84% |
| Other regions in Asia | 54,895,384,319.00 | 44,201,707,545.00 | 19.48% | 21.91% | 17.29% | 3.17% |
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable√ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
| Operating division | Item | Unit | 2020 | 2019 | Change (%) |
| TFT-LCD | Unit sales | K㎡ | 55,653 | 50,316 | 10.61% |
| Output | K㎡ | 55,628 | 50,118 | 10.99% | |
| Inventory | K㎡ | 2,555 | 2,427 | 5.27% | |
| AMOLED | Unit sales | K㎡ | 501 | 269 | 86.25% |
| Output | K㎡ | 537 | 277 | 93.86% | |
| Inventory | K㎡ | 40 | 9 | 344.44% |
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
The reasons for the increase in AMOLED sales and production in 2020: The flexible AMOLED production line in Chengdu operatedefficiently, prompting shipment growth, and the flexible AMOLED production line in Mianyang managed to carry out massproduction and mass shipments.The reasons for the increase of AMOLED inventory in 2020: The production capacities of the flexible AMOLED flexible productionlines in Chengdu and Mianyang climbed with an increase in needed inventory turnover and reserve.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
| By operating | Item | 2020 | 2019 | Change |
| division | Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | (%) | |
| Display business | Materials, labor costs, depreciation, etc. | 107,769,219,236.00 | 99.03% | 98,329,154,262.00 | 99.88% | 9.60% |
| Smart System Innovation business | Materials, labor costs, depreciation, etc. | 981,563,055.00 | 0.90% | 498,624,217.00 | 0.51% | 96.85% |
| Smart Medicine and Engineering business | Materials, labor costs, depreciation, etc. | 724,268,025.00 | 0.67% | 668,875,829.00 | 0.68% | 8.28% |
| Sensor and Solution business | Materials, labor costs, depreciation, etc. | 75,405,672.00 | 0.07% | 30,963,371.00 | 0.03% | 143.53% |
| Others | Materials, labor costs, depreciation, etc. | 2,213,785,494.00 | 2.03% | 1,681,836,505.00 | 1.71% | 31.63% |
| Offset | Materials, labor costs, depreciation, etc. | -2,941,118,726.00 | -2.70% | -2,763,184,888.00 | -2.81% | 6.44% |
Unit: RMB
| By product category | Item | 2020 | 2019 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display business | Materials, labor costs, depreciation, etc. | 107,769,219,236.00 | 99.03% | 98,329,154,262.00 | 99.88% | 9.60% |
| Smart System Innovation business | Materials, labor costs, depreciation, etc. | 981,563,055.00 | 0.90% | 498,624,217.00 | 0.51% | 96.85% |
| Smart Medicine and Engineering business | Materials, labor costs, depreciation, etc. | 724,268,025.00 | 0.67% | 668,875,829.00 | 0.68% | 8.28% |
| Sensor and Solution business | Materials, labor costs, depreciation, etc. | 75,405,672.00 | 0.07% | 30,963,371.00 | 0.03% | 143.53% |
| Others | Materials, labor costs, depreciation, etc. | 2,213,785,494.00 | 2.03% | 1,681,836,505.00 | 1.71% | 31.63% |
| Offset | Materials, labor costs, depreciation, etc. | -2,941,118,726.00 | -2.70% | -2,763,184,888.00 | -2.81% | 6.44% |
Note: N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 61,960,413,826.00 |
| Total sales to top five customers as % of total sales of the Reporting Period (%) | 45.71% |
| Total sales to related parties among top five customers as % of total sales of the Reporting Period (%) | 0.00% |
Information about top five customers:
| No. | Customer | Sales revenue contributed for the Reporting Period (RMB) | As % of total sales revenue (%) |
| 1 | Customer A | 20,861,019,239.00 | 15.39% |
| 2 | Customer B | 14,559,514,510.00 | 10.74% |
| 3 | Customer C | 11,434,056,234.00 | 8.44% |
| 4 | Customer D | 8,141,898,845.00 | 6.01% |
| 5 | Customer E | 6,963,924,998.00 | 5.14% |
| Total | -- | 61,960,413,826.00 | 45.71% |
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 20,135,159,623.00 |
| Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) | 18.50% |
| Total purchases from related parties among top five suppliers as % of total purchases of the Reporting Period (%) | 0.00% |
Information about top five suppliers:
| No. | Supplier | Purchase in the Reporting Period (RMB) | As % of total purchases (%) |
| 1 | Supplier A | 7,061,923,225.00 | 6.49% |
| 2 | Supplier B | 4,333,966,398.00 | 3.98% |
| 3 | Supplier C | 3,421,545,273.00 | 3.14% |
| 4 | Supplier D | 2,921,777,045.00 | 2.68% |
| 5 | Supplier E | 2,395,947,682.00 | 2.20% |
| Total | -- | 20,135,159,623.00 | 18.50% |
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
| Item | 2020 | 2019 | Change (%) | Reason for any significant change |
| Selling expense | 3,137,719,001.00 | 2,917,865,380.00 | 7.53% | N/A |
| Administrative expense | 6,203,600,521.00 | 5,214,948,027.00 | 18.96% | N/A |
| Finance costs | 2,650,153,972.00 | 1,994,150,258.00 | 32.90% | Repayment of the carrying amount of debt that was convertible to stock in last year |
| R&D expense | 7,622,597,925.00 | 6,699,973,240.00 | 13.77% | N/A |
4. R&D Investments
√ Applicable □ Not applicable
Details about R&D input:
| Item | 2020 | 2019 | Change (%) |
| Number of R&D personnel | 19,694 | 19,617 | 0.39% |
| R&D personnel as % of total employees | 25.76% | 30.17% | -4.41% |
| R&D investments (RMB) | 9,441,596,318.00 | 8,748,156,031.00 | 7.93% |
| R&D investments as % of operating revenue | 6.97% | 7.54% | -0.57% |
| Capitalized R&D investments (RMB) | 1,939,420,807.00 | 2,048,182,791.00 | -5.31% |
| Capitalized R&D investments as % of total R&D investments | 20.54% | 23.41% | -2.87% |
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
| Item | 2020 | 2019 | Change (%) |
| Subtotal of cash generated from operating activities | 169,593,756,177.00 | 145,523,323,441.00 | 16.54% |
| Subtotal of cash used in operating activities | 130,341,982,719.00 | 119,440,244,247.00 | 9.13% |
| Net cash generated from/used in operating activities | 39,251,773,458.00 | 26,083,079,194.00 | 50.49% |
| Subtotal of cash generated from investing activities | 25,532,266,564.00 | 35,949,685,082.00 | -28.98% |
| Subtotal of cash used in investing activities | 68,939,233,413.00 | 83,365,812,518.00 | -17.31% |
| Net cash generated from/used in investing activities | -43,406,966,849.00 | -47,416,127,436.00 | -- |
| Subtotal of cash generated from financing activities | 70,901,578,897.00 | 75,724,272,107.00 | -6.37% |
| Subtotal of cash used in financing activities | 47,083,848,940.00 | 47,945,626,777.00 | -1.80% |
| Net cash generated from/used in financing activities | 23,817,729,957.00 | 27,778,645,330.00 | -14.26% |
| Net increase in cash and cash equivalents | 17,794,414,798.00 | 6,919,625,053.00 | 157.16% |
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities increased 50.49% year on year, primarily driven by the expansion of the Company'soperating revenue and the improvement of operating results.Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this ReportingPeriod
√ Applicable □Not applicable
The net cash generated from operating activities was higher than the net profit primarily because the depreciation amount of displayequipment is high.III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Source/Reason | Recurrent or not |
| Return on investment | 897,891,109.00 | 14.74% | Income recognized from associates and wealth management products | Not |
| Gain/loss on changes in fair value | 31,936,339.00 | 0.52% | N/A | Not |
| Asset impairments | -3,280,425,399.00 | -53.84% | Inventory valuation allowances established based on market conditions | Not |
| Non-operating income | 120,503,628.00 | 1.98% | N/A | Not |
| Non-operating expense | 72,139,666.00 | 1.18% | N/A | Not |
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated thebeginning amounts of relevant financial statement line items in the year.Applicable.
Unit: RMB
| Item | 31 December 2020 | 1 January 2020 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 73,694,296,095.00 | 17.37% | 56,972,723,239.00 | 16.73% | 0.64% | N/A |
| Accounts receivable | 22,969,140,355.00 | 5.41% | 18,107,976,861.00 | 5.32% | 0.09% | N/A |
| Inventories | 17,875,454,490.00 | 4.21% | 12,396,194,762.00 | 3.64% | 0.57% | Inventories increased primarily driven by expanding operating revenue and the changes to the consolidation scope in the Reporting Period. |
| Investment property | 1,196,168,511.00 | 0.28% | 1,241,242,850.00 | 0.36% | -0.08% | N/A |
| Long-term equity investments | 3,693,170,224.00 | 0.87% | 2,718,037,934.00 | 0.80% | 0.07% | N/A |
| Fixed assets | 224,866,586,069.00 | 53.00% | 125,786,241,938.00 | 36.94% | 16.06% | Fixed assets increased primarily driven by the reclassification of new constructions into fixed assets and the changes to the consolidation scope in the Reporting Period. |
| Construction in progress | 42,575,849,952.00 | 10.04% | 87,376,782,527.00 | 25.66% | -15.62% | Construction in progress decreased primarily driven by the reclassification of new constructions into fixed assets in the Reporting Period. |
| Short-term borrowings | 8,599,569,471.00 | 2.03% | 6,366,717,121.00 | 1.87% | 0.16% | N/A |
| Long-term borrowings | 132,452,767,135.00 | 31.22% | 107,730,595,615.00 | 31.64% | -0.42% | N/A |
| Other payables | 32,867,709,024.00 | 7.75% | 24,570,589,610.00 | 7.22% | 0.53% | Other payables increased primarily driven by the changes to the consolidation scope in the Reporting Period and a rise in payables for engineering and equipment. |
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (excluding derivative financial assets) | 5,809,184,994.00 | 31,936,339.00 | 98,409,419.00 | 0.00 | 13,937,058,793.00 | 15,379,041,954.00 | 0.00 | 4,367,201,833.00 |
| 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 | 632,076,647.00 | -35,969,241.00 | -161,611,179.00 | 0.00 | 19,168,059.00 | 137,485,294.00 | 0.00 | 533,645,423.00 |
| Subtotal of financial assets | 6,441,261,641.00 | -4,032,899.00 | -63,201,760.00 | 0.00 | 13,956,226,852.00 | 15,516,527,248.00 | 0.00 | 4,900,847,256.00 |
| 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 | 6,441,261,641.00 | -4,032,899.00 | -63,201,760.00 | 0.00 | 13,956,226,852.00 | 15,516,527,248.00 | 0.00 | 4,900,847,256.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes: N/ASignificant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 5,488,099,634.00 | As pledge for guarantee and as security deposits |
| Notes receivable | 60,214,157.00 |
| Inventories | 0.00 | N/A |
| Fixed assets | 168,972,932,363.00 | As collateral for guarantee，Leaseback assets |
| Intangible assets | 1,769,040,417.00 | As collateral for guarantee |
| Construction in progress | 21,137,162,080.00 | As collateral for guarantee |
| Investment property | 42,959,088.00 | As collateral for guarantee |
| Accounts receivable | 44,682,510.00 | Factoring discounted with right of recourse |
| Total | 197,515,090,249.00 | -- |
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | Change (%) |
| 933,268,059.00 | 123,621,675.00 | 654.94% |
2. Significant Equity Investments Acquired in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
| Investee | Principal activities | Way of investment | Amount of investment | The Company’s interest | Funding source | Partner | Term of investment | Type of product | Progress as of the balance sheet date | Estimated return | Income/loss in the current period | Any legal matter involved or not | Date of disclosure (if any) | Index to disclosed information (if any) |
| Nanjing CEC Panda FPD Technology Co., Ltd. | 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 | Acquisition | 5,591,221,400.00 | 80.831% | Self and externally-funded | - | - | - | Completed | 0.00 | 0.00 | Not | 24 Sept., 20 Oct., 25 Nov., 17 Dec., and 26 Dec. 2020 | www.cninfo.com.cn |
| Chengdu CEC Panda Display Technology Co., Ltd. | R&D, manufacturing and sales of TFT-LCD panels and modules, LCD monitors, TVs, instruments, machinery, equipment and parts, and related technical services; import and export of goods and technologies. | Capital increase | 7,550,000,000.00 | 35.0348% | Self and externally-funded | - | - | - | Completed | 0.00 | 0.00 | Not | 24 Sept., 1 Dec., 18 Dec., and 25 Dec. 2020 | www.cninfo.com.cn |
| Total | -- | -- | 13,141,221,400.00 | -- | -- | -- | -- | -- | -- | 0.00 | 0.00 | -- | -- | -- |
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Funding source |
| Domestic/overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 72,585,692.00 | 0.00 | -15,787,588.00 | 0.00 | 0.00 | 1,842,137.00 | 74,372,840.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 105,407,103.00 | 0.00 | -17,238,707.00 | 0.00 | 0.00 | 5,804,204.00 | 102,845,668.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK06066 | China Securities | 70,041,364.00 | Fair value method | 68,545,920.00 | 0.00 | 0.00 | 0.00 | 77,058,346.00 | 0.00 | 0.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01518 | New Century | 140,848,850.00 | Fair value method | 53,586,259.00 | 0.00 | -103,853,337.00 | 0.00 | 0.00 | 0.00 | 36,995,513.00 | Other equity | Self-funded |
| Healthcare | instrument investment | |||||||||||
| Total | 421,135,017.00 | -- | 300,124,974.00 | 0.00 | -136,879,632.00 | 0.00 | 77,058,346.00 | 7,646,341.00 | 214,214,021.00 | -- | -- | |
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | |||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | |||||||||||
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
| Counterparty | Relationship with the Company | Related-party transaction or not | Type of derivative | Initial investment amount | Start date | End date | Beginning investment amount | Purchased in the Reporting Period | Sold in the Reporting Period | Impairment allowance (if any) | Ending investment amount | Ending investment amount as % of the Company’s ending net asset value | Actual gain/loss in the Reporting Period |
| Financial institutions | Not related parties | Not | Foreign exchange forward contract | 78,133.44 | 1 Jan. 2020 | 31 Dec. 2020 | 78,133.44 | 137,123.01 | 96,568.52 | - | 118,687.93 | 0.68% | 1,451.15 |
| Total | 78,133.44 | -- | -- | 78,133.44 | 137,123.01 | 96,568.52 | - | 118,687.93 | 0.68% | 1,451.15 | |||
| Funding source | Self-funded | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Analysis of risks and control measures associated with the | As of the end of the reporting period, the financial derivatives held by the company are foreign exchange forward contracts, and the | ||||||||||||
| derivative investments held in the Reporting Period (including but not limited to market, liquidity, credit, operational and legal risks, etc.) | risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the financial derivatives are as follows: the company controls the types of derivative transactions, reasonably matches the scale of derivative transactions, and the transactions must match the company's production, operation and development planning, mainly for the purpose of cost locking and risk prevention. |
| Changes in market prices or fair value of derivative investments in the Reporting Period (fair value analysis should include measurement methods and related assumptions and parameters) | The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation of the external financial institutions. |
| Significant changes in accounting policies and specific accounting principles adopted for derivative investments in the Reporting Period compared to the last reporting period | No major changes |
| Opinion of independent directors on derivative investments and risk control | N/A |
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 |
| 2019 | Renewable corporate bonds | 800,000 | 50,130 | 795,600 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| 2020 | Renewable corporate bonds | 600,000 | 596,666 | 596,666 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| Total | -- | 1,400,000 | 646,796 | 1,392,266 | 0 | 0 | 0.00% | 0 | -- | 0 |
| Explanation of overall usage of funds raised |
| The cumulative amount of raised funds was RMB14,000,000,000, and the net proceeds after deducting issuance costs were RMB13,922,660,000, which was used to increase capital in subsidiaries, repay debt and supplement working capital. In the Reporting Period, the raised funds were used according to project investment plans, conforming to the promise in the bond offering prospectus. |
(2) Commitment Projects of Fund Raised
√ Applicable □ Not applicable
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Changed or not (including partial changes) | Committed investment amount | Investment amount after adjustment (1) | Investment amount in the Reporting Period | Accumulative investment amount as of the period-end (2) | Investment schedule as the period-end (3)＝(2)/(1) | Date of reaching intended use of the project | Realized income in the Reporting Period | Whether reached anticipated income | Whether occurred significant changes in project feasibility |
| Committed investment project | ||||||||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 175,000 | 172,000 | - | 172,000 | 100.00% | - | - | N/A | Not |
| Mianyang BOE Optoelectronics Co., Ltd | Not | 50,000 | 50,000 | - | 50,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 50,000 | 48,600 | - | 48,600 | 100.00% | - | - | N/A | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 100,000 | 100,000 | 48,630 | 100,000 | 100.00% | - | - | N/A | Not |
| BOE Health Investment Management Co., Ltd. | Not | 75,000 | 75,000 | 1,500 | 75,000 | 100.00% | - | - | N/A | Not |
| Repayment of bank loan | Not | 350,000 | 350,000 | 350,000 | 100.00% | - | - | N/A | Not | |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 50,000 | 50,000 | 50,000 | 50,000 | 100.00% | - | - | N/A | Not |
| Mianyang BOE Optoelectronics Co., Ltd | Not | 20,000 | 20,000 | 20,000 | 20,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 100,000 | 100,000 | 100,000 | 100,000 | 100.00% | - | - | N/A | Not |
| Wuhan BOE Optoelectronics | Not | 30,000 | 28,900 | 28,900 | 28,900 | 100.00% | - | - | N/A | Not |
| Technology Co., Ltd. | ||||||||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 30,000 | 30,000 | 30,000 | 30,000 | 100.00% | - | - | N/A | Not |
| Mianyang BOE Optoelectronics Co., Ltd | Not | 30,000 | 30,000 | 30,000 | 30,000 | 100.00% | - | - | N/A | Not |
| Chongqing BOE Display Technology Co., Ltd. | Not | 60,000 | 60,000 | 60,000 | 60,000 | 100.00% | - | - | N/A | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 50,000 | 50,000 | 50,000 | 50,000 | 100.00% | - | - | N/A | Not |
| BOE Health Investment Management Co., Ltd. | Not | 30,000 | 28,878 | 28,878 | 28,878 | 100.00% | - | - | N/A | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Not | 20,000 | 20,000 | 20,000 | 20,000 | 100.00% | - | - | N/A | Not |
| Mianyang BOE Optoelectronics Co., Ltd | Not | 80,000 | 80,000 | 80,000 | 80,000 | 100.00% | - | - | N/A | Not |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Not | 30,000 | 30,000 | 30,000 | 30,000 | 100.00% | - | - | N/A | Not |
| BOE Health Investment Management Co., Ltd. | Not | 50,000 | 50,000 | 50,000 | 50,000 | 100.00% | - | - | N/A | Not |
| Supplementation of working capital | Not | 20,000 | 18,888 | 18,888 | 18,888 | 100.00% | - | - | N/A | Not |
| Subtotal of committed investment project | -- | 1,400,000 | 1,392,266 | 646,796 | 1,392,266 | -- | -- | - | -- | -- |
| Super raised funds arrangement | ||||||||||
| N/A | ||||||||||
| Total | -- | 1,400,000 | 1,392,266 | 646,796 | 1,392,266 | -- | -- | - | -- | -- |
| Condition and reason for not reaching the schedule and anticipated income (by specific items) | No such cases in the Reporting Period. | |||||||||
| Notes of condition of significant changes occurred in project feasibility | Naught |
| 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 of 31 December 2020, the Company swapped, with subsequent raised funds, a total of advance investments of RMB4,515 million in projects financed with raised funds. To be specific, the funds raised in the first tranche of renewable corporate bonds of 2019 were swapped with advance investments of RMB785 million, the funds raised in the first tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB1,600 million, the funds raised in the second tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB1,200 million, and the funds raised in the third tranche of renewable corporate bonds of 2020 were swapped with advance investments of RMB930 million. | |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | Applicable |
| The total amount of raised funds was used up. As of 31 December 2020, the balance in the raised funds account was RMB10.5813 million, which were interest accrued. | |
| Usage and destination of unused funds | Naught |
| Problems incurred in fund using and disclosure or other condition | Naught |
(3) Changes in Items of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 17,600,000,000.00 | 30,407,333,280.00 | 17,809,446,805.00 | 12,252,638,949.00 | 701,953,345.00 | 652,955,131.00 |
| 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 | 20,627,969,062.00 | 14,397,418,136.00 | 11,831,116,284.00 | 2,243,141,730.00 | 1,945,010,307.00 |
| 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 | 40,201,139,504.00 | 27,977,438,793.00 | 21,209,287,381.00 | 2,935,981,237.00 | 2,444,775,419.00 |
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 |
| Nanjing CEC Panda FPD Technology Co., Ltd. | Acquisition | Solidifying leadership in the industry |
| Chengdu CEC Panda Display Technology Co., Ltd. | Capital increase | Solidifying leadership in the industry |
| Hunan BOE Yiyun Technology Co., Ltd. | Capital increase by other shareholder and revision of the articles of association | No significant effects |
| Beijing Asahi Electronic Materials Co., Ltd. | Transferred by putting up for sale | No significant effects |
Other information on principal subsidiaries and joint stock companies:
N/AVIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Prospects
1. Expansion of network of Smart System Innovation Centers
With the focus on cutting-edge technologies such as AI, big data and cloud computing, BOE Innovation Centers are dedicating tobuilding five platforms, namely technology development platform integrating software and hardware, new material and equipmentindustry transformation platform, product and service marketing and display platform, international talent exchange and trainingplatform, and open technology and market cooperation platform, to develop the six products, namely, Intelligent Car Networking,Smart Retail, Smart Finance, Smart Medicine and Engineering, Industrial IoT, and Smart City Public Service, and Digital Art. In2020, BOE put into effect a plan to build three innovation centers in Qingdao, Chongqing and Chengdu, and the construction ofChongqing and Chengdu innovation centers has commenced. In the future, the Company will advance the construction of smartsystem innovation centers and build 10 to 15 innovation centers nationwide in five years. It will concentrate efforts to makebreakthroughs in technologies and products integrating software and hardware and dig deeper into IoT application scenarios with aview to creating more innovative IoT products and solutions.
2. Outlook of the five businesses
Display business: To optimize LCD product structure and promote innovative transformation, BOE will promote coordinateddevelopment of display devices and whole product business, steadily enhance the comprehensive competitiveness of the Displayindustry, and continue to consolidate its leading position in the mainstream market. It will accelerate the enhancement of OLEDtechnology capabilities and customer structure optimization and establish and maintain the smart product ecosystem in cooperationwith customers. In adherence to the customer-centric principle, the Company will deepen the coordinated business development onthe basis of ensuring the quality performance of customers, integrate resources, advance digital transformation, and strengthen leanmanagement. All these are expected to achieve business breakthroughs.Sensor and Solution business: BOE will continue to push forward innovative transformation and deepen the development ofmedical imaging, biological testing, smart screens, microwave communications, and fingerprint recognition, to provide customerswith a wide range of high-performance products and services.Mini-LED business: BOE will create a Mini/Micro-LED product group with active driver, COG as the core and coordinateddevelopment of SMD/COB, strengthen the collaboration with upstream and downstream resources, constantly enrich product mix,enhance product competitiveness, expand applications and expedite the development of business landscape in pursuit of the goal ofbecoming a global leader in Mini/Micro-LED products and solutions.Intelligence System and Innovation business: With the aim of creating industrial ecological chain platform for smart cities, BOEwill provide smart finance and park solutions to acquire strategic customers, quickly implement benchmark projects, step upcooperation with ecological partners, and enhance brand influence. It will establish partnerships with regional channel companies,and improve the sales channel system for large-sized products, tiled display screens and smart whole products to see fast expansionin sales volume and market share of core products.Smart Medical Engineering business: BOE will further optimize the overall business model for health management, accelerate theR&D and transformation of smart terminal products, enhance the core competitiveness of digital hospitals, steadily carry out projectssuch as Beijing Life Technology Industrial Base and Suzhou Hospital, and move faster to better closed-loop full-lifecycle healthservices health management as the core, smart terminals as tools and digital hospitals as support.
X Communications with the Investment Community such as Researches, Inquiries andInterviews
1. During the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 2 January 2020 | Company Conference Room | By phone | Institution | KB asset | Main content: 1. Main situation of the industry; 2. Major operating information of the Company; 3. Technologies and product innovation. | www.cninfo.com.cn |
| 8 January 2020 | Company Conference Room | One-site visit | Institution | Guotai Junan GJS Capital | ||
| 9 January 2020 | Company Conference Room | By phone | Institution | Four institutions including CITC Securities | ||
| 9 January 2020 | Company Conference Room | One-site visit | Institution | Morgan Stanley | ||
| 10 January 2020 | Company Conference Room | One-site visitt | Institution | China Southern Asset Management, Founder Securities | ||
| 10 January 2020 | Company Conference Room | One-site visit | Institution | Jinyang Union Asset Management | ||
| 15 January 2020 | Company Conference Room | By phone | Institution | JS Funds, Mega International Investment Trust, TransGlobe Life Insurance, Franklin Asset Management, Jilifu, Capital ITC | ||
| 15 January 2020 | Company Conference Room | By phone | Institution | BlackRock Capital | ||
| 16 January 2020 | Company Conference Room | One-site visit | Institution | Guotai Junan Securities, Lion Fund Management | ||
| 16 January 2020 | Company Conference Room | One-site visit | Institution | Taikang Capital Management, GF Securities | ||
| 4 February 2020 | Company Conference Room | By phone | Institutions and individuals | 277 institutional and individual investors including Millennium | Main content: 1. Latest operating status of the Company; 2. Changes in | www.cninfo.com.cn |
| supply and demand in the industry; 3. Health segment of the Company; | ||||||
| 29 April 2020 | Company Conference Room | By phone | Institution | 237 institutions including Asia Lion Capital | Main content: 1. Performance results of the Company and main situation of the industry; 2. Major operating information of the Company; 3. Technologies and innovation. | www.cninfo.com.cn |
| 13 May 2020 | Company Conference Room | By phone | Institution | GF Securities, GF Fund Management | ||
| 20 May 2020 | Company Conference Room | By phone | Institution | Hermes Investment | ||
| 26 May 2020 | Company Conference Room | By phone | Institution | 16 institutions including Cavalry | ||
| 28 May 2020 | Company Conference Room | By phone | Institution | Bosera Asset Management, Cathay Securities | ||
| 29 May 2020 | Company Conference Room | By phone | Institution | SIG | ||
| 29 May 2020 | Company Conference Room | By phone | Institution | Artemis Investment Management | ||
| 1 June 2020 | Company Conference Room | By phone | Institution | BOCOM Schroders, Huatai Securities | ||
| 4 June 2020 | Company Conference Room | By phone | Institution | China Southern Asset Management, Tianfeng Securities | ||
| 5 June 2020 | Company Conference Room | By phone | Institution | CITIC Securities | ||
| 8 June 2020 | Company Conference Room | By phone | Institution | Ping An Annuity Insurance | ||
| 8 June 2020 | Company Conference Room | One-site visit | Institution | Huaxi Securities | ||
| 10 June 2020 | Company Conference Room | By phone | Institution | Manulife Asset Management | ||
| 15 June 2020 | Company Conference Room | By phone | Institution | China Asset Management, CITIC Securities | ||
| 16 June 2020 | Company Conference Room | By phone | Institution | Seven institutions including SinoPac Securities | ||
| 17 June 2020 | Company Conference Room | By phone | Institution | First Seafront Fund, Guosheng Securities |
| 18 June 2020 | Company Conference Room | By phone | Institution | Invesco Great Wall, Changjiang Securities | ||
| 19 June 2020 | Company Conference Room | By phone | Institution | Four institutions including Maplelane Capital LLC | ||
| 1 September 2020 | Technology Innovation Center, and Conference Room of the Company | One-site visit | Institution | 98 institutions including GF Fund Management | Main content: 1. The Company's interim results in 2020 and main situation of the industry; 2. Major operating information of the Company; 3. Technologies and product innovation; 4. Future strategic layout. | www.cninfo.com.cn |
| 24 September 2020 | Company Conference Room | By phone | Institution | 327 institutions including Essence Securities | Main content: 1. Main situation of the industry; 2. Major operating information of the Company; 3. The Company's participation in industry integration. | www.cninfo.com.cn |
| 25 September 2020 | Company Conference Room | By phone | Institution | Orient Securities Asset Management | Main content: 1. Main situation of the industry; 2. Major operating information of the Company; 3. Technologies | www.cninfo.com.cn |
| and product innovation; 4. Future strategic layout. | |||||
| 3 October 2020 | Hefei 10.5G Line Exhibition Hall, and Conference Room of the Company | One-site visit and by phone | Institution | 246 institutions including Changjiang Securities |
www.cninfo.com.cn
2 November 2020
| 2 November 2020 | Company Conference Room | By phone | Institution | GF Fund Management | |
| 4 November 2020 | Company Conference Room | By phone | Institution | Egerton Capital | |
| Times of communications | 35 | ||||
| Number of institutions communicated with | 1,255 | ||||
| Number of individuals communicated with | 11 | ||||
| Number of other communication parties | 0 | ||||
| Tip-offs or leakages of substantial confidential information | None | ||||
Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated, executed or revisedin the Reporting Period:
□ Applicable √ Not applicable
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the ReportingPeriod) are summarized as follows:
For 2018, based on the total shares of 34,798,398,763, the Company distributed, with the undistributed profit, a cash dividend ofRMB0.30 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB1,043,951,962.89. Andno bonus share was granted, nor was any capital reserve converted into share capital.For 2019, based on the total shares of 34,798,398,763, the Company distributed, with the undistributed profit, a cash dividend ofRMB0.20 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB695,967,975.26. Andno bonus share was granted, nor was any capital reserve converted into share capital.For 2020, based on the total shares of 34,770,212,630 after the deduction of shares held through the special account for repurchase,the Company planned to distribute, with the undistributed profit, a cash dividend of RMB1.00 (tax inclusive) per 10 shares to all itsshareholders, with the total distributed amount reaching RMB3,477,021,263. And no bonus share was granted, nor was any capitalreserve converted into share capital.Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
| Year | Cash dividends (tax inclusive) (A) | Net profit attributable to ordinary shareholders of the listed company in consolidated statements for the year (B) | A as % of B (%) | Cash dividends in other forms (such as share repurchase) (C) | C as % of B (%) | Total cash dividends (including those in other forms) (D) | D as % of B (%) |
| 2020 | 3,477,021,263.00 | 5,035,627,952.00 | 69.05% | 1,998,774,693.72 | 39.86% | 5,475,795,956.72 | 109.19% |
| 2019 | 695,967,975.26 | 1,918,643,871.00 | 36.27% | 0.00 | 0.00% | 695,967,975.26 | 37.38% |
| 2018 | 1,043,951,962.89 | 3,435,127,975.00 | 30.39% | 0.00 | 0.00% | 1,043,951,962.89 | 30.39% |
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite thefacts that the Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to theordinary shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
| Bonus shares for every 10 shares (share) | 0 |
| Dividend for every 10 shares (RMB) (tax inclusive) | 1.00 |
| Total shares as the basis for the profit distribution proposal (share) | 34,770,212,630 |
| Cash dividends (RMB) (tax inclusive) | 3,477,021,263.00 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 1,998,774,693.72 |
| Total cash dividends (including those in other forms) (RMB) | 5,475,795,956.72 |
| Attributable profit (RMB) | 11,954,088,031.00 |
| Total cash dividends (including those in other forms) as % of total profit distribution (%) | 100% |
| Cash dividend policy adopted | |
| If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends shall be 20% or above. | |
| Details about the proposal for profit distribution and converting capital reserve into share capital | |
| Based on the total shares of 34,770,212,630 after the deduction of shares held through the special account for repurchase, the Company planned to distribute, with the undistributed profit, a cash dividend of RMB1.00 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted into share capital. The said proposal is in compliance with the Company’s Articles of Association and relevant approval procedure, and the independent directors have expressed their independent opinion on the proposal, which fully protects the legal rights and interests of the minority investors. | |
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other EntitiesFulfilled 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. He Daopin, Mr. Yan Jun and Mr. Teng Jiao | 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 | 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 |
| Senior Management: Mr. Yao Xiangjun, Mr. Zhang Zhaohong, Mr. Zhong Huifeng, Ms. Feng Liqiong, Mr. Xie Zhongdong, Mr. Miao Chuanbin and Mr. Liu Hongfeng | 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. | |||
| Executed on time or not | Yes | |||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within the forecast period, explain why the forecasthas been reached for the Reporting Period.
□ Applicable √ Not applicable
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent Directors (if any) Regarding theIndependent Auditor's “Modified Opinion” on the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
The Ministry of Finance amended and issued the Accounting Standards for Business Enterprises No. 14 - Revenues in 2017. The Group started to adopt the said standards on 1 January 2020 andadjusted its accounting policies accordingly, which caused no significant impact on the Group's financial position and operating results.The Ministry of Finance issued the Interpretation No. 13 of the Accounting Standards for Enterprises (C.K. [2019] No. 21) ("Interpretation No. 13") in 2019. The Group started to adoptInterpretation No. 13 on 1 January 2020 and adjusted its accounting policies accordingly, which caused no significant impact on the Group's financial position and operating results.The Ministry of Finance issued the Provisions on Accounting Processing of Rent Concessions Associated with the COVID-19 Pandemic (C.K. [2020] No. 10) in 2020. The Group started toadopt the said Provisions on 24 June 2020 and could, pursuant to the Provisions, adjust relevant rent concessions that occurred between 1 January 2020 and the adoption date of the Provisions,which caused no significant impact on the Group's financial position and operating results.VII Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Five new subsidiaries were established in the current period, including Hefei BOE Xingyu Technology Co., Ltd., BOE EducationalTechnology Co., Ltd., Oriental Chengqi (Beijing) Business Technology Co., Ltd., BOE Innovation Investment Co., Ltd., and BOESmart Technology Co., Ltd. The Company holds a 43.40% interest in Hefei BOE Xingyu Technology Co., Ltd., with subscribedshareholding of 65.00%, and the 100% in all the others.Two subsidiaries were combined involving entities under different control during the year, namely Nanjing CEC Panda FPDTechnology Co., Ltd., with 80.831% shareholding and Chengdu CEC Panda Display Technology Co., Ltd., with 35.0348%shareholding.This year, Beijing Asahi Electronic Materials Co., Ltd. was disposed, with 100% shareholding at the beginning of the period and 0shareholding at the end of the period.This year, the control of one subsidiary was lost due to the capital increase of a other shareholders and amending the company's articlesof association.. The subsidiary was Hunan BOE Yiyun Technology Co., Ltd., with 95.92% shareholding at the beginning of the periodand 48.99% shareholding at the end of the period.IX Engagement and Disengagement of Independent AuditorCurrent independent auditor
| Name of the domestic independent auditor | KPMG Huazhen (LLP) |
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 1,000 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 16 years |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Zhanghuan and Chai Jing |
| How many consecutive years the certified public accountants from the domestic independent auditor have provided audit service for the Company | Zhanghuan 4 years and Chai Jing 2 years |
| Name of the foreign independent auditor (if any) | N/A |
| The Company’s payment to the foreign independent auditor (RMB’0,000) (if any) | 0 |
| How many consecutive years the foreign independent auditor has provided audit service for the Company (if any) | N/A |
| Names of the certified public accountants from the foreign independent auditor writing signatures on the auditor’s report (if any) | N/A |
| How many consecutive years the certified public accountants from the foreign independent auditor have provided audit service for the Company (if any) | N/A |
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
During the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and theCompany paid KPMG Huazhen (LLP) total compensation of RMB[10 million] for the 2020 annual audit and internal control audit.During the Reporting Period, the Company engaged China Securities Co., Ltd. as an independent financial advisor for matters relatedto the equity incentive, and paid a total financial advisory fee of RMB[450,000] during the period.X Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.XII Major Legal Matters
√ Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Disputes case of sales contract that BOE Technology (HK) Limited sued LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, LeTV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Mr. JiaYueting | 28,471.43 | No | The judgment of the first instance has taken effect. BOE Technology (HK) Limited has submitted the Application for Execution to Beijing Municipal High People's Court. On 24 December 2020, the Beijing No. 3 Intermediate People's Court made an Application for Execution that LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, and LeTV Holdings (Beijing) Co., Ltd. had been included in the list of defaulters, and the court ruled to terminate | The first instance judgment result: I. The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK) Limited) the owed principal USD36,940,476.77 and the resulting interests (regarding the principal USD12,871,274.5 as the interest basis from 8 September 2016 to 1 March 2017, USD12,144,001.77 from 2 March 2017 to the actual payment day, USD16,172,935 from 13 October 2016 to the actual payment day, USD8,488,690 from 10 November 2016 to the actual payment day, and US134,850 from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days) ), as well as the liquidated damages (regarding the principal | On 24 December 2020, the Beijing No. 3 Intermediate People's Court made an Application for Execution that LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, and LeTV Holdings (Beijing) Co., Ltd. had been included in the list of defaulters, and the court ruled to terminate this enforcement | 29 August 2017; 24 April 2018; 28 August 2018; 26 March 2019; 27 August 2019; 28 April 2020; 29 August 2020. | For details, see Interim Report 2017 of BOE Technology Group Co., Ltd., 2017 Annual Report, of BOE Technology Group Co., Ltd., Interim Report 2018 of BOE Technology Group Co., Ltd., 2018 Annual Report, of BOE Technology Group Co., Ltd., Interim Report 2019 of BOE Technology Group Co., Ltd. 2019 Annual |
| this enforcement because the defaulters had no property available for execution. | USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71 from May 31, 2017 to July 1, 2017, USD2,052,248.71 from 30 June 2017 to 1 July 2017, and USD36,940,476.77 from July 2, 2017 to the actual payment day; the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after the judgment took effect; II. The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. Defined in the judgment (Item I); III. After the Defendant LETV Holdings (Beijing) Co., Ltd. burdens the joint and several guarantee related to Item II, LETV Holdings (Beijing) Co., Ltd. shall have the right to claim compensation from LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.; IV. The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK) Limited) the owed principal USD2,459,090.91 and the resulting interests (regarding the principal USD2,459,090.91 as the interest basis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period | because the defaulters had no property available for execution. | Report, of BOE Technology Group Co., Ltd., and Interim Report 2020 of BOE Technology Group Co., Ltd., disclosed on www.cninfo.com.cn. |
| as the standard; USD2,459,090.91 from 20 August 2019 to the actual payment day with the quoted interest rate of the loan market issued by the national inter-bank offer center as the standard; the year shall have 365 days) under the Purchase Order with the goods payment USD2.75 million; V. Other claims of the plaintiff (BOE Technology (HK) Limited) shall be rejected. If the Defendant LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. fails to fulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayed period according to Article 253 of Civil Procedure Law of the People’s Republic of China. | |||||||
| Litigations for 2020 (including carryforwards in previous years ) | 15,645.38 | No | N/A | N/A | N/A | N/A |
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for Employees
√ Applicable □ Not applicable
The Company disclosed the Announcement on the Resolution of the 15
th
Meeting of the 9
thBoard of Directors (Announcement No.: 2020-047) and the 2020 Stock Option and Restricted StockGrant Program and other related announcements on 29 August 2020, in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option IncentiveScheme and the Restricted Stock Incentive Scheme. The source of the stock is the Company's A-shares repurchased from the secondary market. The total stock options and restricted stockincentive plan stock interests shall not exceed 981,150,000 shares, including 639,900,000 stock options and 341,250,000 restricted stock shares, representing approximately 2.82% of the total34,798,398,763 shares of the Company's share capital at the time of the announcement of this draft incentive plan. On 30 October 2020, the Company received the Approval on theImplementation of the Equity Incentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned Assets Supervision and Administration Commission of People's Government of BeijingMunicipality forwarded by Beijing Electronics Holding Co., Ltd, the actual controller, and the State-owned Assets Supervision and Administration Commission of People's Government ofBeijing Municipality approved in principle the implementation of this incentive plan by the Company. The Company disclosed the Announcement on the Adjustment of the List of IncentiveSubjects and the Number of Equities Granted under the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-081) and the Announcement on the First Grant ofStock Options and Restricted Shares to Incentive Subjects (Announcement No.: 2020-082) on 22 December 2020 to determine that the grant date/authorization date of the Incentive Scheme is21 December 2020, and 596,229,700 stock options will be granted to 1,988 incentive recipients and 321,813,800 restricted shares will be granted to 793 incentive recipients. The Companydisclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-086) on 31 December2020. The conditions for the grant under the Incentive Scheme of the Company have been fulfilled and the first registration of the grant has been completed. The completion date of theregistration of the first grant of options under the Stock Option Incentive Scheme was 25 December 2020. The option ticker was 037100 and the option ticker is Eastern JLC1; the listing date ofthe restricted shares granted was 29 December 2020.
XVI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Major Related-Party Transactions
√ Applicable □ Not applicable
NaughtIndex to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on the Prediction of 2020 Annual Routine Connected Transaction | 28 April 2020 | www.cninfo.com.cn |
| Announcement on 16.67% of equity in BEHC Industrial Investment Co., Ltd. held and transferred by NAURA and Related-party Transactions | 24 July 2020 | www.cninfo.com.cn |
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB'0,000
| Guarantees provided by the Company 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 | 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 | Term of guarantee | Having expired or not | Guarantee for a related |
| party or not | ||||||||
| Hefei XinSheng Optoelectronics Technology Co., Ltd. | 14 August 2014 | 1,207,107 | 15 January 2015 | 174,946 | Joint-liability | 6 January 2014 to 6 January 2024 | Not | Not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 30 November 2016 | 544,611 | 15 March 2017 | 192,273 | Joint-liability | 17 March 2017 to 17 March 2027 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25 April 2017 | 2,234,178 | 30 August 2017 | 2,160,441 | Joint-liability | 6 September 2017 to 6 September 2029 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25 April 2017 | 450,000 | 31 July 2017 | 111,850 | Joint-liability | Opening date of the letter of guarantee to 25 May 2027 | Not | Not |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 14 August 2014 | 1,389,055 | 29 September 2014 | 392,416 | Joint-liability | 5 November 2014 to 5 November 2024 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 1 December 2016 | 1,630,103 | 30 August 2017 | 1,493,210 | Joint-liability | 7 September 2017 to 7 September 2027 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 10 December 2015 | 1,302,308 | 8 November 2016 | 820,671 | Joint-liability | 19 December 2016 to 19 December 2026 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 10 December 2015 | 300,000 | 8 November 2016 | 72,000 | Joint-liability | Opening date of the letter of guarantee to 24 September 2025 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 18 May 2018 | 2,071,675 | 18 September 2018 | 1,878,176 | Joint-liability | 26 September 2018 to 26 September 2031 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 18 May 2018 | 460,000 | 22 June 2018 | 169,000 | Joint-liability | Opening date of the letter of guarantee to 6 November 2027 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 28 April 2020 | 1,985,465 | 29 December 2020 | 508,187 | Joint-liability | 31 December 2020 to 31 December 2033 | Not | Not |
| Wuhan BOE Optoelectronics Co., Ltd. | 25 March 2019 | 1,962,423 | 16 August 2019 | 1,545,602 | Joint-liability | 23 August 2019 to 23 August 2032 | Not | Not |
| Chengdu BOE Hospital Co., Ltd. | 28 April 2020 | 240,000 | 15 June 2020 | 99,909 | Joint-liability | 15 June 2020 to 30 June 2042 | Not | Not |
| Chongqing BOE Display Technology Co., Ltd. | 28 April 2020 | 370,000 | N/A | 0 | Joint-liability | Not signing the contract yet | Not | Not |
| Total approved line for such guarantees in the Reporting Period (B1) | 2,595,465 | Total actual amount of such guarantees in the Reporting Period (B2) | 457,159 | |||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 16,146,924 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 9,618,681 | |||||
| Guarantees provided between subsidiaries | ||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Guangtai Solar Energy Technology (Suzhou) Co., Ltd. | N/A | 5,450 | 20 December 2017 | 4,087 | Joint-liability | 20 December 2017 to 6 April 2029 | Not | Not |
| Huanda Trading (Hebei) Co., Ltd. | N/A | 14,600 | 24 May 2017 | 9,297 | Joint-liability | 15 June 2017 to 16 March 2031 | Not | Not |
| Yangyuan Photovoltaic Power Generation (Huanggang) Co., Ltd. | N/A | 3,800 | 30 September 2020 | 3,789 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 3,600 | 30 September 2020 | 3,589 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 2,800 | 30 September 2020 | 2,792 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 3,300 | 30 September 2020 | 3,242 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,700 | 30 September 2020 | 1,670 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,100 | 30 September 2020 | 1,081 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Hefei Hexu Technology Co., Ltd. | N/A | 400 | 30 September 2020 | 399 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Hefei Chenneng Technology Co., Ltd. | N/A | 800 | 30 September 2020 | 798 | Joint-liability | 30 September 2020 to 30 September 2034 | Not | Not |
| Rongke New Energy (Hefei) Co., Ltd. | N/A | 1,400 | 18 December 2017 | 1,244 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Tianchi New Energy (Hefei) Co., Ltd. | N/A | 1,100 | 18 December 2017 | 974 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 890 | 18 December 2017 | 759 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 18 December 2017 | 2,518 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 960 | 18 December 2017 | 696 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 2,210 | 18 December 2017 | 1,907 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 18 December 2017 | 1,343 | Joint-liability | 18 December 2017 to 18 December 2032 | Not | Not |
| Anhui BOE Energy Investment Co., Ltd | N/A | 13,575 | 27 December 2017 | 11,589 | Joint-liability | 27 December 2017 to 27 December 2032 | Not | Not |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 300 | 3 December 2020 | 300 | Joint-liability | 3 December 2020 to 3 December 2034 | Not | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,800 | 3 December 2020 | 1,800 | Joint-liability | 3 December 2020 to 3 December 2034 | Not | Not |
| Hongyang Solar Energy Power | N/A | 2,500 | 3 December 2020 | 2,500 | Joint-liability | 3 December 2020 to 3 December 2034 | Not | Not |
| Generation (Anji) Co., Ltd. | ||||||||
| Ke’en Solar Energy Power Generation (Pingyang) Co., Ltd. | N/A | 1,600 | 3 December 2020 | 1,600 | Joint-liability | 3 December 2020 to 3 December 2034 | Not | Not |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 1,400 | 3 December 2020 | 1,400 | Joint-liability | 3 December 2020 to 3 December 2034 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 700 | 3 December 2020 | 700 | Joint-liability | 3 December 2020 to3 December 2034 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 12,800 | 23 October 2017 | 12,530 | Pledge | 24 October 2017 to 23 October 2032 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 20,560 | 15 August 2018 | 17,120 | Pledge | 26 September 2018 to 21 December 2032 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 25,418 | 28 November 2017 | 22,618 | Pledge | 1 December 2017 to 1 December 2032 | Not | Not |
| Hengchuang New Energy Technology (Hong’an) Co., Ltd. | N/A | 6,892 | 31 January 2018 | 5,845 | Joint-liability | 31 January 2018 to 31 January 2033 | Not | Not |
| Anhui BOE Energy Investment Co., Ltd. | N/A | 2,060 | 25 April 2018 | 1,841 | Joint-liability | 25 April 2018 to 25 April 2033 | Not | Not |
| Junlong New Energy Technology (Huaibin) Co., Ltd. | N/A | 8,459 | 25 April 2018 | 7,560 | Joint-liability | 25 April 2018 to 25 April 2033 | Not | Not |
| Shaoxing Guangnian New Energy Co., Ltd. | N/A | 16,000 | 13 December 2018 | 15,872 | Joint-liability | 13 December 2018 to 12 December 2033 | Not | Not |
| Shaoxing Xuhui New Energy Co., Ltd. | N/A | 4,500 | 13 December 2018 | 4,464 | Joint-liability | 13 December 2018 to 12 December 2033 | Not | Not |
| Hefei BOE Hospital Co., Ltd. | 27 April 2018 | 130,000 | 27 April 2018 | 104,100 | Joint-liability | 27 April 2018 to 27 April 2036 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 0 | Total actual amount of such guarantees in the Reporting | -95,788 | |||||
| Period (C2) | |||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 298,005 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 252,024 |
| Total guarantee amount (total of the three kinds of guarantees above) | |||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 2,595,465 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 361,371 |
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 16,444,929 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 9,870,705 |
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 95.58% | ||
| 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) | 39,119 | ||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 4,706,867 | ||
| Total of the three amounts above (D+E+F) | 4,706,867 | ||
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A | ||
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A | ||
Compound guarantees: none
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Overdue amount |
| Bank financial products and structured deposit | Self-owned funds | 716,300 | 436,100 | 0 |
| Total | 716,300 | 436,100 | 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 entrusted asset management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Continuing Major Contracts
□ Applicable √ Not applicable
5. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVIII Corporate Social Responsibility (CSR)
1. Measures Taken to Fulfill CSR Commitment
BOE discloses its Corporate Social Responsibility Report every year. As of 2020, BOE had consecutively disclosed SocialResponsibility Report for 11 years. Please view and download such report via official website of BOE www.boe.com.
2. Measures Taken for Targeted Poverty Alleviation
(1) Plans
BOE actively responds to the national call for precise poverty alleviation, fully fulfills its corporate social responsibility, and activelyparticipates in poverty alleviation through education, health aid, and consumption. In terms of poverty alleviation through education,BOE actively promotes education public welfare projects such as "Lighting the Way to Growth" and "Dream Space"; in terms ofpoverty alleviation through health aid, BOE relies on its advantages and accumulation in Smart Medical Engineering business topopularize medical and health knowledge and help poor patients with major diseases; in terms of poverty alleviation throughconsumption, BOE actively promotes the establishment of long-term and stable cooperative relationships with its designatedpoverty-stricken areas, achieving poverty alleviation in those areas through logistics procurement, employee consumption and otherforms.
(2) Summary of the Related Work Done in the Reporting Period
In 2020, BOE mainly worked in the fields of poverty alleviation through education, health aid, and consumption. In the field of povertyalleviation through education, BOE mainly helped poor students and improved education resources in poverty-stricken areas throughdonations of materials, and have carried out poverty alleviation projects such as "Lighting the Way to Growth", "Raindrop Program"and "100,000+ Academic Support". In the field of poverty alleviation through health aid, in 2020, Hefei BOE Hospital donated RMB1million to the Red Cross Society of Anhui to aid poverty-stricken patients with diseases such as congenital heart disease, tumor,cataract, kidney failure, etc. In addition, BOE also carried out a series of voluntary medical checkups and medical services for remoteareas such as Tibet and Daliang Mountains in Sichuan to provide medical aid to local patients, and also to provide professional supportand assistance to local medical teams. In terms of poverty alleviation through consumption, RMB8,231,500 was invested to support thecirculation of products and income increase in poor areas through logistic procurement and employee consumption.
(3) Results
| Indicator | Measurement unit | Quantity/Progress |
| I. General results | —— | —— |
| Of which: 1. Capital | RMB’0,000 | 951.05 |
| 2. Materials converted into cash | RMB’0,000 | 8.7 |
| II. Itemized results | —— | —— |
| 1. Out of poverty by employment transfer | —— | —— |
| Of which: 1.1 Number of persons out of poverty which were helped to set up file card | Person | 22 |
| 2. Out of poverty by education | —— | —— |
| Of which: 2.1 Invested amounts to subsidize poor students | RMB’0,000 | 23.5 |
| 2.2 Number of poor students subsidized | Person | 313 |
| 2.3 Invested amounts to improve education resources in poverty-stricken area | RMB’0,000 | 4.4 |
| 3. Health poverty alleviation | —— | —— |
| Of which: 3.1 Investment in health resources in poverty-stricken area | RMB’0,000 | 100 |
| 4. Other items | —— | —— |
| Of which: 4.1 Numbers of items | Piece | 2 |
| 4.2 Invested amounts | RMB’0,000 | 823.15 |
(4) Subsequent Plans
In 2021, BOE will continuously carry forward the educational poverty alleviation project focused on “Light up Your Growth”,carrying out education support, materials support, and voluntary activities, etc, taking the location of BOE production line as themain place to carry out these activities and gradually expand coverage scale of projects; additionally, by relying on the advantagesand accumulation of smart medicine & engineering integration business, BOE will carry out projects on health poverty alleviation tohelp poor patients and popularize medical and health knowledge and services; meanwhile, taking the BOE employees volunteerssystem as the platform to continuously conduct activities of helping the poor and various donations.
3. Issues Related to Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protectionauthorities.
□ Yes √ No
Yes
| Name of polluter | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration | Discharge standards implemented | Total discharge (t) | Approved total discharge | Excessive discharge |
| Beijing BOE | COD | Standard | 1 | Northwe | 56mg/L | 500mg/L | 414.21t | 828.418t | None |
| Optoelectronics Technology Co., Ltd. | Ammonia nitrogen | emission after being treated by sewage treatment system | st corner of factory | 3mg/L | 45 mg/L | 29.59t | 59.173t | ||
| The 4.5th generation TFT-LCD production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 205.55mg/L | 500mg/L | 217.1t | 607.66t | None |
| Ammonia nitrogen | 21.30mg/L | 45mg/L | 22.50t | 54.69t | |||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 38.133mg/L | 380mg/L | 138.9t | 1081.55t | None |
| Ammonia nitrogen | 1.898mg/L | 30mg/L | 6.85t | 101.23t | |||||
| Beijing BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1(main discharge outlet of wastewater) | East gate of factory | 173.17mg/L | 500mg/l | 1090.15t | 1618.8t | None |
| Ammonia nitrogen | 12.88mg/L | 45mg/l | 79.17t | 134.4t | |||||
| COD | 1(S2 Phase II discharge outlet of sanitary sewage) | South gate of dormitory area | 43.92mg/L | 500mg/l | 6.61t | 60.57t | |||
| Ammonia nitrogen | 12.43mg/L | 45mg/l | 1.90t | 6.06t | |||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast gate of factory | 62.96mg/L | 380mg/L | 342.168t | 3383.54t | None |
| Ammonia nitrogen | 18.27mg/L | 30mg/L | 99.31t | 267.12t | |||||
| Erdos Yuansheng Optoelectroni | COD | Standard emission after being treated | 1 | North side of factory | 50.09mg/L | 500mg/l | 71.24t | 713.81t | None |
| Ammonia nitrogen | 1.29mg/L | - | 1.67t | 76.82t |
| cs Co., Ltd. | by sewage treatment system | ||||||||
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 47.6mg/L | 500mg/L | 158.37t | 9590.40 t | None |
| Ammonia nitrogen | 1.85mg/L | 45 mg/L | 8.921t | 863.14t | |||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 101.19mg/L | 400mg/L | 490.00t | 1900.24t | None |
| Ammonia nitrogen | 4.03mg/L | 30 mg/L | 19.49t | 146.17t | |||||
| Hefei BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 82mg/L | 400mg/L | 708.657t | 1189.88t | None |
| Ammonia nitrogen | 11.63mg/L | 35mg/L | 102.668t | 118.98t | |||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 112.87mg/L | 500mg/L | 84.03t | 510.35t | None |
| Ammonia nitrogen | 7.11 mg/L | 45mg/L | 1.57t | 68.05t | |||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment | 1 | North side of factory | 35.02mg/L | 500mg/L | 140.55t | 6911.4t | None |
| Ammonia nitrogen | 3.02mg/L | 45 mg/L | 11.987t | 364.68t |
| system | |||||||||
| BOE Technology Group Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 39.3mg/L | 500mg/L | 0.24t | 11.114t | None |
| Ammonia nitrogen | 6.8mg/L | 45mg/L | 0.042t | 0.341t | |||||
| BOE (Heibei) Mobile Display Technology Co., Ltd. | COD | Discharged into sewage treatment plant through municipal pipes | 2 | Southeast side of factory | 13.25mg/L | 500mg/L | 0.195t | 13.554t | None |
| Ammonia nitrogen | 0.133mg/L | 45mg/L | 0.002t | 1.01t | |||||
| COD | North side of factory | 151mg/L | 500mg/L | 7.213t | 74.937t | ||||
| Ammonia nitrogen | 9.8mg/L | 45mg/L | 0.714t | 6.744t |
Construction of pollution prevention equipment and operation conditionDuring the Reporting Period, the Company did not have any serious environmental problems. The Company builds soundenvironment management systems and establishes the environment management organizations to supervise the overall environmentperformance of the Company, work out the environment management objectives and related systems, conduct regular supervisionand instruction for the environment management of subordinate companies and push forward the implementation of environmentmanagement.Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial wastewater and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separatelyaccording to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water iscollected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Householdwaste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water isdischarged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and theconcentration and total amount of drainage satisfy the requirements of national and local relevant standards.In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas duringproduction process, generally including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special exhaust gas and organicexhaust gas etc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emissionconcentration and total amount satisfy the national and local relevant standards.“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance withrequirements of national relevant environmental regulations and the registration, assessment, permission and restriction system ofchemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which aregenerated by each subordinate enterprise can be divided into general industrial solid waste, hazardous waste materials and householdwaste materials, and they all handed over to qualified recycler for regular treatment.The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted forprocessing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemicaland other materials maximally and reducing the discharge of waste water and waste materials.At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollution
management standard, hazardous waste materials management standard, energy management standard etc. The methods specify theoperation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervisingmechanism, in order to ensure the continuous stable operation of each system.In recent years, the environmental emission index of the Company is up to national standards such as Sewage ComprehensiveDischarge Standard, Air Pollutant Comprehensive Emission Standard, Industrial Enterprise Environmental Noise Emission Standardwithin Factory Boundary, etc and local standards. The Company will continue to promote the environmental management, devote toforging green factory and improve environmental management level constantly.Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental ProtectionAt present, corresponding environmental impact assessments have been conducted for all construction projects under the control ofthe Company in conformity with applicable national and local laws and regulations, and corresponding administrative licenses havealso been obtained.Contingency Plan for Emergent Environmental IncidentsThe Company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmentalprotection agency according to relevant requirements of local environmental protection bureaus. However, such contingency planconsists of comprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas,hazardous wastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have beenpublished via the company’s official website.Other environment information that should be disclosedNoOther related environment protection informationNo
XIX 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. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue)(“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October 2019, the issuing scale ofRMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issued renewable corporate bonds (toqualified investors) (the first issue) (epidemic prevention and control bonds) (“20BOEY1” for short; Code: 149046) in 2020 with theissue term from 27 February 2020 to 28 February 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of
3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (the second issue) (epidemic preventionand control bonds) (“20BOEY2” for short; Code: 149065) in 2020 with the issue term from 18 March 2020 to 19 March 2020, theissuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.54%. The Company publicly issued the renewablecorporate bonds (to qualified investors) (the third issue) (epidemic prevention and control bonds) (“20BOEY3” for short; Code: 149108)in 2020 with the issue term from 24 April 2020 to 27 April 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominalinterest of 3.50%.The Company disclosed 2020 "19BOEY1" Interest Payment Announcement (Announcement No. 2020-065) on 22
October 2020. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) in 2019 was one yearold until 29 October 2020. According to the regulations, interest will be paid once a year during the interest-bearing period. Theinterest payment plan is RMB40.00 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY1" Interest PaymentAnnouncement (Announcement No. 2021-016) on 23 February 2021. BOE Public Issuance of Renewable Corporate Bonds (toQualified Investors) (the First Issue) (epidemic prevention and control bonds) in 2020 was one year old until 27 February 2021.According to the regulations, interest will be paid once a year during the interest-bearing period. The interest payment plan isRMB36.40 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY2" Interest Payment Announcement (AnnouncementNo. 2021-018) on 17 March 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue)(pandemic prevention and control bonds) in 2020 was one year old until 18 March 2021. According to the regulations, interest willbe paid once a year during the interest-bearing period. The interest payment plan is RMB35.40 (including tax) per 10 bonds.
2. The Company’s wholly-owned subsidiary BOE Technology (HK) Limited filed a lawsuit on the sales contract dispute to the superiorpeople’s court in Beijing, and the defendants included LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.(hereinafter referred to as “LETV Mobile”), LETV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and JiaYueting with the claimed amount of USD41.84 million in total. However, Beijing Municipal Superior People’s Court respectivelyissued the Notice of Acceptance and the Civil Ruling Paper on Property Preservation on July 6, 2017 and July 31, 2017. LETV Mobileever put forward the jurisdiction objection to Beijing Municipal Superior People’s Court, which was rejected, and then launched alawsuit on the judgment of the jurisdiction objection to the Supreme People’s Court. Finally, the Supreme People’s Court made thefinal ruling, rejected the appeal of LETV Mobile and affirmed the original judgment. On 8 March 2019, the first hearing was held inBeijing Municipal Superior People’s Court. On 19 February 2020, Beijing Municipal Superior People’s Court issued the first instancejudgment:
(1) The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK)Limited) the owed principal USD36,940,476.77 and the resulting interests (regarding the principal USD12,871,274.5 as the interestbasis from 8 September 2016 to 1 March 2017, USD12,144,001.77 from 2 March 2017 to the actual payment day, USD16,172,935from October 13, 2016 to the actual payment day, USD8,488,690 from November 10, 2016 to the actual payment day, and US134,850from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days)), as well as the liquidated damages(regarding the principal USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71 from 31 May 2017 to 1July 2017, USD2,052,248.71 from 30 June 2017 to 1 July 2017, and USD36,940,476.77 from 2 July 2017 to the actual payment day;the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after the judgment took effect;
(2) The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETV MobileIntelligent Information Technology (Beijing) Co., Ltd. Defined in the judgment (Item I);
(3) After the Defendant LETV Holdings (Beijing) Co., Ltd. burdens the joint and several guarantee related to Item II, LETV Holdings(Beijing) Co., Ltd. shall have the right to claim compensation from LETV Mobile Intelligent Information Technology (Beijing) Co.,Ltd.;
(4) The defendant(LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK)Limited) the owed principal USD2,459,090.91 and the resulting interests (regarding the principal USD2,459,090.91 as the interestbasis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period as the standard;USD2,459,090.91 from August 20, 2019 to the actual payment day with the quoted interest rate of the loan market issued by thenational inter-bank offer center as the standard; the year shall have 365 days) under the Purchase Order with the goods paymentUSD2.75 million;
(5) Other claims of the plaintiff (BOE Technology (HK) Limited) shall be rejected.
If the defendant LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. fails tofulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayedperiod according to Article 253 of Civil Procedure Law of the People’s Republic of China.
The litigation fee was RMB1,465,371.63, of which, RMB5,371.63 shall be paid by the plaintiff BOE Technology (HK) Limited(already paid), and RMB1.46 million shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.and LETV Holdings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect); the preservation fee was RMB5000,which shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing)Co., Ltd. (payment within 7 days after the judgment took effect).On 17 March 2020, BOE Technology (HK) Limited received the petition for appeal submitted by LETV Holdings (Beijing) Co., Ltd. tothe court. LETV Holdings (Beijing) Co., Ltd. failed to pay the fee for the appeal it had instituted. The Supreme People’s Court made thejudgment that the case was treated as that the appellant LeTV Holdings (Beijing) Co., Ltd. automatically withdrew the appeal on 8 July2020. And the judgment of the first instance will take effect since the date when the written order is served. BOE Technology (HK)Limited has submitted the Application for Execution to Beijing High People’s Court and the court has accepted the executionapplication. On 24 December 2020, the Beijing No. 3 Intermediate People's Court made an Application for Execution that LeTVMobile Intelligent Information Technology (Beijing) Co., Ltd, and LeTV Holdings (Beijing) Co., Ltd. had been included in the list ofdefaulters, and the court ruled to terminate this enforcement because the defaulters had no property available for execution. TheCompany has calculated corresponding bad-debt provision for the account receivables equaling the above-mentioned claimed amountaccording to the accounting standards, which has uncertain influence on the Company.
3. On 10 April 2020, the Company disclosed the Suggestive Announcement on Shareholders’ Equity Changes (Announcement No.:
2020-014) and the Short Form of Report on Shareholders’ Equity Changes. According to the disclosure, the Company’s shareholderChongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. reduced its shareholding of the Company’s unrestricted tradable Ashares by 280,814,800 shares, accounting for 0.0807% of the Company’s total share capital, by means of block trade through thetrading system of Shenzhen Stock Exchange. After the reduction, the shares held of the Company by Chongqing EzcapitalOpto-electronics Industry Investment Co., Ltd. account for about 4.9999997% of the Company’s total share capital, making it no longera shareholder holding more than 5% of the Company’s shares.
4. On 22 April 2020, the Company disclosed the Shareholders’ Announcement on Reducing More than 1% of the Company’s Shares(Announcement No.: 2020-017), Suggestive Announcement on Shareholders’ Equity Changes (Announcement No.: 2020-018) and theShort Form of Report on Shareholders’ Equity Changes. According to the disclosure, the Company’s shareholder Hefei JianxiangInvestment Co., Ltd. gratuitously transferred to Hefei Jianxin Investment Co., Ltd. 800 million shares of unrestricted tradable A sharesit held of the Company (accounting for 2.30% of the Company’s total share capital). After the gratuitous transfer, the shares held of theCompany by Hefei Jianxiang Investment Co., Ltd. account for 4.91% of the Company’s total share capital, making it no longer ashareholder holding more than 5% of the Company’s shares.
5. On 28 April 2020, the Company disclosed the Announcement on the Resolution of the Tenth Meeting of the Ninth Session of theBoard of Directors (Announcement No.: 2020-026) and the Announcement on the Departure of an Independent Director at TenureExpiration and the Selection of a Replacement Independent Director (Announcement No.: 2020-034). According to the disclosure, Mr.Lv Tingjie applied for departing from his position as Independent Director of the Company and other positions in related committeesunder the Board due to the expiration of his tenure as Independent Director. At the Tenth Meeting of the Ninth Session of the Board ofDirectors, the Company considered and approved the Proposal on Selecting Mr. Tang Shoulian as an Independent Director of the NinthSession of the Board of Directors, and nominated Mr. Tang Shoulian as a candidate for Independent Director of the Ninth Session of theBoard of Directors. On May 30, 2020, the Company disclosed the Announcement on the Resolution of the Annual General Meeting of2020 (Announcement No.: 2020-039). At the meeting, the Proposal on Selecting Mr. Tang Shoulian as an Independent Director of theNinth Session of the Board of Directors was considered and approved. Mr. Tang Shoulian has been selected as an Independent Directorof the Ninth Session of the Board of Directors of the Company.
| Overview of significant events | Disclosure date | Index to disclosure website for interim report |
| Announcement on Investment in the Suzhou BOE Hospital | 29 June 2020 | www.cninfo.com.cn |
| Announcement on Construction of BOE (Chongqing) Smart System Innovation Center via Investment | 29 June 2020 | www.cninfo.com.cn |
| Announcement on Construction of BOE (Chengdu) Smart System Innovation Center via Investment | 29 June 2020 | www.cninfo.com.cn |
| Announcement on the 16.67% of Equity in BEHC Industrial Investment Co., Ltd. Held by NAURA | 24 July 2020 | www.cninfo.com.cn |
| Announcement on Intention to Purchasing Some Equity in Nanjing Cec Panda Fpd Technology Co., Ltd. and Chengdu Cec Panda Display Technology Co., Ltd. | 24 September 2020 | www.cninfo.com.cn |
| Announcement on Progress of Purchasing Some Equity in Nanjing Cec Panda Fpd Technology Co., Ltd. | 20 October 2020; 25 November 2020; 17 December 2020; 26 December 2020 | www.cninfo.com.cn |
| Announcement on 100% of Equity in Beijing Asahi Electronic Materials Co., Ltd. Listed for Transfer | 4 November 2020 | www.cninfo.com.cn |
| Announcement on Capital Increase in Chengdu Cec Panda Display Technology Co., Ltd. | 1 December 2020 | www.cninfo.com.cn |
| Announcement on Progress of 100% of Equity in Beijing Asahi Electronic Materials Co., Ltd. Listed for Transfer | 5 December 2020; 24 December 2020 | www.cninfo.com.cn |
| Announcement on Progress of Capital Increase in Chengdu Cec Panda Display Technology Co., Ltd. | 18 December 2020; 25 December 2020 | www.cninfo.com.cn |
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
Part VI Share Changes and Shareholder InformationI. 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 | 1,724,761 | 0.00% | 0 | 0 | 0 | 323,620,850 | 323,620,850 | 325,345,611 | 0.93% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 1,724,761 | 0.00% | 0 | 0 | 0 | 295,639,650 | 295,639,650 | 297,364,411 | 0.85% |
| Among which: Shares held by domestic corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by domestic individuals | 1,724,761 | 0.00% | 0 | 0 | 0 | 295,639,650 | 295,639,650 | 297,364,411 | 0.85% |
| 4. Shares held by foreign investors | 0 | 0.00% | 0 | 0 | 0 | 27,981,200 | 27,981,200 | 27,981,200 | 0.08% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign individuals | 0 | 0.00% | 0 | 0 | 0 | 27,981,200 | 27,981,200 | 27,981,200 | 0.08% |
| II. Non-restricted shares | 34,796,674,002 | 100.00% | 0 | 0 | 0 | -323,620,850 | -323,620,850 | 34,473,053,152 | 99.07% |
| 1. RMB ordinary shares | 33,860,560,514 | 97.30% | 0 | 0 | 0 | -323,620,850 | -323,620,850 | 33,536,939,664 | 96.37% |
| 2. Domestically listed foreign shares | 936,113,488 | 2.69% | 0 | 0 | 0 | 0 | 0 | 936,113,488 | 2.69% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 34,798,398,763 | 100.00% | 0 | 0 | 0 | 0 | 0 | 34,798,398,763 | 100.00% |
Reasons for share changes:
√ Applicable □ Not applicable
During the Reporting Period, the executives of the Company increased their holding of the Company's shares by 2,409,400 shares, resulting in an increase of 1,807,050 shares in the locked-upshares of the executives. During the Reporting Period, the Company completed the grant of a total of 321,813,800 restricted shares under the 2020 Stock Option and Restricted Stock IncentiveScheme, resulting in an increase of 321,813,800 restricted shares of the Company's equity incentive. The total number of restricted shares increased by 323,620,850 shares during the ReportingPeriod.Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
√ Applicable □ Not applicable
The Company first implemented the share repurchase on 2 September 2020 and disclosed the relevant progress during the repurchase in accordance with the requirements of relevant laws andregulations (for details, please refer to the Announcement on the First Repurchase of Some Public Shares disclosed on the cninfo website on 3 September 2020, Announcement No. 2020-056).As at 3 September 2020, the Company has implemented the repurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase, and thecumulative number of A-shares repurchased was 349,999,933, accounting for approximately 1.03% of the Company's A-shares and 1.01% of the Company's total share capital, with the highesttransaction price of RMB5.79 per share and the lowest transaction price of RMB5.54 per share. The total amount paid was RMB1,998,774,693.72 (including other fixed fees such ascommissions). So far, the number of shares repurchased has reached the cap of shares under the repurchase scheme and the implementation of the share repurchase scheme has been completed.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 2020 |
| Basic earnings per share (RMB/share) | 0.13 |
| Diluted earnings per share (RMB/share) | 0.13 |
| Item | 31 December 2020 |
| Equity per share attributable to the Company’s ordinary shareholders | 2.56 |
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares increased of the period | Restricted shares relieved of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Shares locked by senior executives | 1,724,761 | 1,807,050 | 0 | 3,531,811 | Shareholding increase by senior executives | - |
| Restricted shares for equity incentive | 0 | 321,813,800 | 0 | 321,813,800 | Grant for equity incentive | - |
| Total | 1,724,761 | 323,620,850 | 0 | 325,345,611 | -- | -- |
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
| Name of Stock and derivative securities thereof | Issue date | issue price (interest) | Issue amount | Listing date | Approved amount for listing | Termination date for trading | Disclosure index | Disclosure date |
| Stock | ||||||||
| None | ||||||||
| Convertible corporate bonds, convertible corporate bonds separately traded and corporate bonds | ||||||||
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control | 27 February 2020 | 3.64% | 200,000 | 12 March 2020 | 200,000 | 28 February 2023 | Refer to the Listing Memorandum of 2020 Public Offering of Renewable Corporate | 12 March 2020 |
| bonds) | Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) disclosed on www.cninfo.com.cn for details | |||||||
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) | 18 March 2020 | 3.54% | 200,000 | 3 April 2020 | 200,000 | 19 March 2023 | Refer to the Listing Memorandum of 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds) disclosed on www.cninfo.com.cn for details | 3 April 2020 |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 24 April 2020 | 3.50% | 200,000 | 12 May 2020 | 200,000 | 27 April 2023 | Refer to the Listing Memorandum of 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) disclosed on www.cninfo.com.cn for details | 12 May 2020 |
| Other derivative securities | ||||||||
| None | ||||||||
Note: none
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
| Number of ordinary shareholders at the Period-end | 1,012,008 (including 973,560 A-shareholders and 38,448 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,329,925（including 1,292,791 A-shareholders and 37,134 B-shareholders） | ||||||
| 5% or greater shareholders or top 10 shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge or frozen | ||
| Status | Shares | ||||||||
| Beijing State-owned Capital Operation and Management Center | State-owned legal person | 11.68% | 4,063,333,333 | 0 | 0 | 4,063,333,333 | N/A | 0 | |
| Hong Kong Securities Clearing Company | Foreign legal person | 5.88% | 2,047,015,619 | 718,680,014 | 0 | 2,047,015,619 | N/A | 0 | |
| Ltd. | ||||||||
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | 0 | 0 | 822,092,180 | N/A | 0 |
| Hefei Jianxin Investment Co., Ltd. | State-owned legal person | 2.30% | 800,000,000 | 800,000,000 | 0 | 800,000,000 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 2.10% | 730,885,417 | -1,779,257,536 | 0 | 730,885,417 | N/A | 0 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | State-owned legal person | 1.93% | 669,956,235 | -1,350,778,406 | 0 | 669,956,235 | N/A | 0 |
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | Other | 1.09% | 379,856,777 | 379,856,777 | 0 | 379,856,777 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 1.05% | 364,706,898 | -551,051,102 | 0 | 364,706,898 | N/A | 0 |
| China Merchants Bank- Galaxy Innovation Growth Mixed Type Securities Investment Fund | Other | 0.88% | 307,000,000 | 274,648,600 | 0 | 307,000,000 | N/A | 0 |
| Industrial and Commercial Bank of China-GF Double Engines Upgrade Mixed Type Securities Investment Fund | Other | 0.88% | 306,718,505 | 234,297,285 | 0 | 306,718,505 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten shareholders due to placing of new shares (if any) | Naught | |||||||
| Related or acting-in-concert parties among the shareholders above | Except for the below relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |||||||
| Above shareholders involved in entrusting/being entrusted with voting rights and giving up voting rights | After the non-public offering of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd, by entering into the Agreement on Exercise of Voting Right respectively, agreed to maintain unanimous with Beijing BOE Investment & Development Co., Ltd. when exercising the voting rights of the shareholders by | |||||||
| all shares of the Company held by them. | |||
| Shareholdings of the top ten unrestricted shareholders | |||
| Name of shareholder | Number of unrestricted shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Center | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 2,047,015,619 | RMB ordinary share | 2,047,015,619 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hefei Jianxin Investment Co., Ltd. | 800,000,000 | RMB ordinary share | 800,000,000 |
| Hefei Jianxiang Investment Co., Ltd. | 730,885,417 | RMB ordinary share | 730,885,417 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | 669,956,235 | RMB ordinary share | 669,956,235 |
| China Construction Bank-GF Technology Pioneer Mixed Type Securities Investment Fund | 379,856,777 | RMB ordinary share | 379,856,777 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 364,706,898 | RMB ordinary share | 364,706,898 |
| China Merchants Bank- Galaxy Innovation Growth Mixed Type Securities Investment Fund | 307,000,000 | RMB ordinary share | 307,000,000 |
| Industrial and Commercial Bank of China-GF Double Engines Upgrade Mixed Type Securities Investment Fund | 306,718,505 | RMB ordinary share | 306,718,505 |
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | 1. After the non-public offering of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd, by entering into the Agreement on Exercise of Voting Right respectively, agreed to maintain unanimous with Beijing BOE Investment & Development Co., Ltd. when exercising the voting rights of the shareholders by all shares of the Company held by them. 2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 164,694,800 shares due to engaging in securities financing. | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the ReportingPeriod.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal personType of the controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Wang Yan | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipments, audio & visual products for broadcasting and television,computer and its supporting equipments and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipments, electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Controlling shareholder’s holdings in other listed companies at home or abroad in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it held 51,983,223 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 10.47% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 35.89% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 50,610,116 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.45% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd. | |||
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets managementType of the actual controller: legal person
| Name of actual controller | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Wang Yan | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipments, audio & visual products for broadcasting and television, computer and its supporting equipments and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipments; electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Other listed companies at home or abroad controlled by the actual controller in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it held 51,983,223 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 10.47% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 35.89% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 50,610,116 shares of A share of BAIC BluePark (Stock Code: 600733), which was of 1.45% of the total shares amount of BAIC BluePark. | |||
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for theCompany to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders ofIntelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capitalcontribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, ZhaoCaiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%,Wang Yanjun 3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng
1.667%, Wang Aizhen 1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and ManagementCenter transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through aShares Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposaland earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in aVoting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of theremaining 30% stake directly held by it in the Company.Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person in | Date of establishment | Registered capital | Principal activity |
| charge | ||||
| Beijing State-owned Capital Management Administrative Center | Zhang Guilin | 30 December 2008 | RMB35,000 million | Investment and investment management; assets management; organize the reorganization as well as the merger and acquisition of the enterprise assets. |
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
Part IX Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
| Name | Office title | Incumbent/Former | Gender | Age | Start of tenure | End of tenure | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Other increase/decrease (share) | Ending shareholding (share) |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Incumbent | Male | 55 | 28 June 2019 | 27 June 2022 | 600,000 | 300,000 | 0 | 2,000,000 | 2,900,000 |
| Pan Jinfeng | Vice Chairman of the Board | Incumbent | Male | 41 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | Incumbent | Male | 56 | 28 June 2019 | 27 June 2022 | 250,000 | 430,000 | 0 | 1,800,000 | 2,480,000 |
| Wang Chenyang | Director | Incumbent | Male | 51 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Song Jie | Director | Incumbent | Male | 53 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Sun Yun | Director, member of Executive Committee, Executive vice president, CFO | Incumbent | Female | 51 | 28 June 2019 | 27 June 2022 | 223,981 | 265,500 | 0 | 1,500,000 | 1,989,481 |
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, CEO of the | Incumbent | Male | 45 | 28 June 2019 | 27 June 2022 | 90,700 | 270,000 | 0 | 1,500,000 | 1,860,700 |
| Display bussiness | |||||||||||
| Li Yantao | Director | Incumbent | Male | 39 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Wang Huacheng | Independent director | Incumbent | Male | 57 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Hu Xiaolin | Independent director | Incumbent | Male | 42 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Li Xuan | Independent director | Incumbent | Male | 52 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Tang Shoulian | Independent director | Incumbent | Male | 68 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Yang Xiangdong | Chairman of the Supervisory Committee | Incumbent | Male | 59 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Xu Tao | Supervisor | Incumbent | Male | 56 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Wei Shuanglai | Supervisor | Incumbent | Male | 53 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Chen Xiaobei | Supervisor | Incumbent | Female | 48 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Shi Hong | Supervisor | Incumbent | Female | 38 | 28 June 2019 | 27 June 2022 | 0 | 0 | 0 | 0 | 0 |
| Xu Yangping | Employee supervisor | Incumbent | Male | 46 | 28 June 2019 | 27 June 2022 | 0 | 35,000 | 0 | 0 | 35,000 |
| He Daopin | Employee supervisor | Incumbent | Male | 51 | 28 June 2019 | 27 June 2022 | 0 | 32,600 | 0 | 0 | 32,600 |
| Yan Jun | Employee supervisor | Incumbent | Male | 49 | 28 June 2019 | 27 June 2022 | 0 | 32,000 | 0 | 0 | 32,000 |
| Teng Jiao | Employee supervisor | Incumbent | Male | 38 | 28 June 2019 | 27 June 2022 | 0 | 55,200 | 0 | 0 | 55,200 |
| Yao Xiangjun | Member of Executive Committee, Executive vice president | Incumbent | Male | 43 | 28 June 2019 | 27 June 2022 | 100,000 | 165,000 | 0 | 1,000,000 | 1,265,000 |
| Zhang Zhaohong | Member of Executive Committee, Executive vice president, CEO of Mini-LED business | Incumbent | Male | 50 | 28 June 2019 | 27 June 2022 | 328,700 | 170,100 | 0 | 1,000,000 | 1,498,800 |
| Zhong Huifeng | Member of Executive Committee, Executive | Incumbent | Male | 50 | 28 June 2019 | 27 June 2022 | 150,000 | 160,000 | 0 | 1,000,000 | 1,310,000 |
| vice president, Chief Performance Officer | |||||||||||
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | Incumbent | Female | 48 | 28 June 2019 | 27 June 2022 | 200,000 | 160,000 | 0 | 1,000,000 | 1,360,000 |
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | Incumbent | Male | 50 | 28 June 2019 | 27 June 2022 | 200,000 | 107,000 | 0 | 750,000 | 1,057,000 |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | Incumbent | Male | 47 | 28 June 2019 | 27 June 2022 | 1,800 | 107,000 | 0 | 650,000 | 758,800 |
| Zhang Yu | Vice president, Chief Human Resource Officer | Incumbent | Male | 50 | 22 March 2021 | 27 June 2022 | 117,600 | 0 | 0 | 634,000 | 751,600 |
| Liu Hongfeng | Vice president, Secretary of the Board | Incumbent | Male | 42 | 28 June 2019 | 27 June 2022 | 154,500 | 120,000 | 0 | 750,000 | 1,024,500 |
| Lv Tingjie | Independent director | Former | Male | 65 | 28 June 2019 | 29 May 2020 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 2,417,281 | 2,409,400 | 0 | 13,584,000 | 18,410,681 |
II Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Lv Tingjie | Independent director | Left for term expiration | 29 May 2020 | Left for term expiration |
| Tang Shoulian | Independent director | Elected | 29 May 2020 | Elected |
| Zhang Yu | Senior management | Appointed | 22 March 2021 | Appointed |
III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors andsenior managementDirectorMr. Chen Yanshun, Master of Economics, senior accountant, he had served in the Company from the year of 1993, has taken theposts of Secretary of the Board of the 1
st
Board of Directors of the Company, Secretary of the 2
ndBoard of Directors and VicePresident, Executive Director of the 3
rd
Board of Directors and Senior Vice President, Executive Director of the 4
th,
th
and the 6
th
Board of Directors and President, and Vice Chairman of the 7
th Board of Directors and President, Vice Chairman of the 8
thBoard ofDirectors, Chairman of Executive Committee (CEO), Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd,and Chairman of the Board of many subordinate subsidiaries such as Hefei BOE Optoelectronics Technology Co., Ltd. andChongqing BOE Optoelectronics Technology Co., Ltd.Now he takes the posts of Chairman of the 9
th
Board of Directors of the Company and Chief of Executive Committee, BOEOptoelectronics Holdings Co., Ltd. and BOE Technology (Hong Kong) Co., Ltd., Vice Chairman of Beijing BOE InvestmentDevelopment Co., Ltd., Chairman of the Board of Beijing Kechuang Intelligent Technology Development Co., Ltd., BOE SmartTechnology Co., Ltd. and BOE Educational Technology Co., Ltd. Meanwhile, he serves as Vice Chairman of China InformationTechnology Industry Federation（CITIF）, Vice Chairman of China Optics & Optoelectronics Manufactures Association（COEMA）,Chairman of China Optics & Optoelectronics Manufactures Association LCB（CODA）, Chief Supervisor of The Listed CompaniesAssociation of Beijing, and was awarded as National Model Worker in 2020
Mr. Pan Jinfeng, senior management, MBA, senior economist. He once acted as a staff and a staff of Corporate PlanningDepartment of Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Manager, Manager of OperationDepartment, Manager of Zhaowei Building Project Department, Assistant of GM, Deputy GM, GM of Zhaowei IndustrialCorporation of Beijing Zhaowei Electronics (Group) Co., Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group)Co., Ltd., Deputy Secreatry of Party Committee, GM of Beijing Yiheng Electronics Group Co., Ltd., Assistant of GM and DeputyGM of Beijing Electronics Holding Co., Ltd.Now, he acts as the Deputy Secretary of CPC and GM of Beijing Electronics Holding Co., Ltd., Vice Chairman of the 9
thBoard ofDirectors of the Company & Deputy Chairman of the Board of NAURA Technology Group Co., Ltd., Chairman of the Board of BENew Energy Technology (Jiangsu) Co., Ltd., Director of Beijing Electronics Holding & SK Technology Co., Ltd. and Chairman ofthe Board of BE Aisite (Jiangsu) Technology Co., Ltd.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. Hesuccessively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.,
Ltd., Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOEVision-electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., DeputyChairman of the Board of Chongqing BOE Optoelectronics Technology Co., Ltd., Chairman of the Board of Beijing BOEMultimedia Science and Technology Co., Ltd. and Beijing BOE Living Technology Co., Ltd, Director of TPV Display Technology(China) Limited, Beijing BOE Display Technology Co., Ltd., Fuzhou BOE Optoelectronics Technology Co., Ltd., BOE HealthInvestment Management Co., Ltd., Beijing BOE CHATANI Electronics Co.,Ltd., Director of the 7
thBoard of Directors, ExecutiveVice President, COO, Director of the 8
th
Board of Directors, Deputy Chairman of Executive Committee, President & COO of theCompany.Now he takes the posts of Vice Chairman of the 9
th
Board of Director, President, Deputy Chairman of Executive Committee of theCompany, Chairman of Mianyang BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd.,Wuhan BOE Optoelectronics Technology Co., Ltd., Yunnan Chuangshijie Optoelectronics Technology Co., Ltd., Fuzhou BOEDisplay Technology Co., Ltd. and Director of Beijing BOE Technology Development Co., Ltd., Fuzhou BOE Display TechnologyCo., Ltd. and BOE Educational Technology Co., Ltd.
Mr. Wang Chenyang, Master, senior political division. He has served as division-head level and deputy-bureau level cadre in theGeneral Office of Beijing Municipal Government and Director of the 8
thBoard of Directors of the Company.Now he takes the posts of Director of the 9
thBoard of Directors of the Company and Deputy GM of Beijing State-owned CapitalManagement Center.
Mr. Song Jie, Senior Economist, MBA of Peking University, Countries travelled visiting scholar of University of Sydney from Feb,2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation, Officer ofProject examination and approval of Beijing Economic and Technological Development Zone Management Committee, Officer ofForeign Investment Service Center, the Director of Yi Da Tong Paging Center, Deputy General Manager of Chinese Human GenomeResearch Center, Beijing (SinoGenoMax Co., Ltd.), Project Manager of East Zone Sewage project of Beijing Yizhuang InvestmentHoldings Co., Limited, Director of the 7
th Board of Directors of the Company, Director of the 8
thBoard of Directors of the Company.Now he is the Director of the 9
thBoard of Directors of the Company, GM of Beijing Yizhuang Investment Co., Limited.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of FinanceDepartment of the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8
thBoard of Directors,Director of Erdos Yuansheng Optoelectronics Co., Ltd., Beijing BOE Video Technology Co., Ltd., Beijing BOE Multimedia Scienceand Technology Co., Ltd., BOE Health Investment Management Co., Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd.and Supervisor of Beijing Orient Vacuum Electric Co., Ltd.Now she is Director of the 9
thBoard of Directors, Member of Executive Committee, Executive Vice President and CFO of theCompany, Director of Beijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Director of BOE SmartTechnology Co., Ltd., Chairman of the Board of BOE Innovation Investment Co., Ltd. and Director of BOE Educational TechnologyCo., Ltd.
Mr. Gao Wenbao, doctor of MSE. He joined the Company in 2003, and once acted as the section chief and minister of producttechnology division, Deputy Technical Director, Deputy GM in Beijing BOE Optoelectronics Technology Co., Ltd., GM of TPCSBU, GM of Chongqing BOE Optoelectronics Technology Co., Ltd., Chairman of the Board of Hefei BOE Zhuoyin Technology Co.,Ltd. and Director of Chongqing BOE Display Technology Co., Ltd.Now, he acts as the Director of the 9
thBoard of Directors and Member of Executive Committee, Executive Vice President of theCompany, CEO of the Display BG, Executive Director & Chairman of the Board in BOE Varitronix Co., Ltd., Chairman of the
Board of Beijing BOE Optoelectronics Co., Ltd., Chengdu BOE Optoelectronics Co., Ltd., Hefei BOE Optoelectronics Co., Ltd.,Beijing BOE Display Technology Co., Ltd., Hefei Xinsheng BOE Optoelectronics Co., Ltd., Chongqing BOE Optoelectronics Co.,Ltd., Fuzhou BOE Optoelectronics Co., Ltd., Director of Mianyang BOE Optoelectronics Co., Ltd., Fuzhou BOE DisplayTechnology Co., Ltd., Wuhan BOE Optoelectronics Co., Ltd., TPV Display Technology (China) Limited, BOE EducationalTechnology Co., Ltd. and Chairman of the Board of Beijing Zhongxiangying Technology Co., Ltd.
Mr. Li Yantao, Master Degree Candidate, MBA in Financial Accounting of Tsinghua University-Chinese University of Hong Kong,Intermediate Economist, PMP, with fund qualification. He once worked as an engineer of Module Technology Department andSection Chief of Public Relations of Administrative Security Department in Beijing BOE Optoelectronics Technology Co., Ltd.,Section Chief of Tender Approval of Commerce Group, noviate vice minister of Engineering Cost Control Department and BiddingContract Management Section of Engineering Cost Control Department in Beijing BOE Display Technology Co., Ltd., Secretary ofYouth League Committee, minister of Corporate Culture/Party Work Department of Corporate Culture Centre and Chief of CorporateCulture Section and Group Work Section, Vice Minister (Assistant Director Level) of Planning & Coordination Department andDirector of Office for Promotion of Major Projects, Minister of Market & New Business Planning Department, Head of Planning &Coordination Centre (Deputy Director Level) and Minister of Market Insight Department, Minister of Strategic Planning Department,Minister of Performance Management Department, Minister of Office for Promotion of Major Projects and Minister of KnowledgeManagement & Training Department in the Company, Director of the 8
thDirectors of the Board of the CompanyNow he serves as the Director of the 9
thDirectors of the Board of the Company, Director of Strategic Development Department ofBeijing Electronics Holdings Co., Ltd., Director and GM of Beijing Electronic Control Industry Investment Co., Ltd., Chairman ofthe Board of Beijing Nuohua Capital Investment Management Co., Ltd., Director of Office for Promotion of Old Industrial BaseTransformation in Beijing Electronics City, Vice Chairman of Beijing Enterprise Conferation.
Independent DirectorMr. Wang Huacheng, Doctoral Candidate Degree, Professor Doctoral Supervisor, In July 1985, graduate from Department ofFinance, Renmin University of China, obtained bachelor of economics degree, in July 1988, graduated from Department ofAccounting, Renmin University of China, obtained master's degree in economics, in July 1998, graduated from Department ofAccounting, Renmin University of China, obtained PhD degree. Since September 1988, worked as a teacher in Renmin University ofChina, He successively worked as teaching assistant, lecturer, associate professor, professor, PhD supervisor, social appointments:
Director of the institute of Chinese accounting. He once was the Independent Director of the 7
th
Board of Directors of the Company,Independent Director of the 8
thBoard of Directors of the Company.Now he is the Independent Director of the 9
thBoard of Directors of the Company, Professor of Renmin University of China, theIndependent Director of Hua Xia Bank Co.,Limited, China Railway Construction Corporation Limited, CHINA GREATWALLSECURITIES CO.,LTD. and Tsinghua Tongfang Co.,Ltd..
Mr. Hu Xiaolin, doctor, associate professor of Tsinghua University, artificial intelligence professor, used to be the independentdirector of the 8
thBoard of Directors of the Company.Now he serves as the Independent Director of the 9
thBoard of Directors of the Company, Editorial Board Member of IEEETransactions on Image Processing and Cognitive Neurodynamics.
Mr. Li Xuan, doctor of laws, associate professor, graduate student tutor. He once worked as the Vice President of School of Lawand Dean of Legal Affairs Office of Central University of Finance and Economics, Independent Director of China Minzu SecuritiesCo., Ltd. and China Shengmu Organic Milk Limited. (Listed in Hong Kong Exchanges and Clearing Limited), Independent Directorof the 8
thBoard of Directors of the Company.
Now he serves as the Independent Director of the 9
thboard of directors of the Company, Chief of Central University of Finance andEconomics Master of Laws (J.M) Education Center, Executive Dean of Public Policy-Making Research Center of China Universityof Political Science and Law, Deputy Chief of Committee for Social and Legal Affairs of Beijing Municipal Committee of the CDL,vice chairman of Case Study Association of China Law Society, Executive Director of Lawyer Law Research Institute, governmentlegal advisor of State Administration of Coal Mine Safety, Independent Director of Beijing Da Bei Nong Science and TechnologyGroup Co., Ltd. and Independent Supervisor of China National Building Materials Company Limited (listed in Hong KongExchange), and part-time arbitrator and lawyer.
Mr. Tang Shoulian, professor, holds a master's degree.He has served as Director of Finance Office, Dean of School of Management and Humanities, Secretary of Party Committee ofSchool of Economics and Management, Executive Dean of School of Economics and Management, and Standing Committee ofAcademic Committee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications(BUPT). He has served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry andInformation Technology, a permanent member of the Chinese Association of Market Development, a standing member of theInformation Law Research Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, astanding member of the Commerce Statistical Society of China, and a reviewer of the Management Science Department of theNational Natural Science Foundation of China.He is currently an Independent Director of the 9
th
Board of Directors.
SupervisorMr. Yang Xiangdong, postgraduate. He once worked as chief of Technology Security Section, minister of Sales Department andminister of Materials Department in Beijing TV Accessories Third Factory, Deputy GM of Beijing Jile Electronics Group Co., Ltd.,Deputy GM of Beijing Sevenstar Electronics Co., Ltd., and Deputy GM of Beijing North Microelectronics Co., Ltd., Chairman ofthe 8
th
Supervisory Committee (convener),Now he serves as the Chairman of the 9
th
Supervisory Committee, assigned full-time Chairman of Supervisory Committee of BeijingElectronics Holdings Co., Ltd., Chairman of Supervisory Committee of Beijing Zhaowei Electronic (Group) Co., Ltd., Chairman ofSupervisory Committee of Beijing Seven Star Huadian Technology Group Co., Ltd., Chairman of Supervisory Committee ofKingstronic (Beijing) Limited, Supervisor of Beijing Electronics Holding & SK Technology Co., Ltd., Supervisor of BeijingElectronics New Energy Technology (Jiangsu) Co., Ltd. and supervisor of BEST, Supervisor of Beijing Electronic InformationTechnician College.
Mr. Xu Tao, master degree, Senior Accountant, Minister of Finance Department of Beijing TV Accessories Third Factory, ChiefAccountant and CFO of Beijing Jile Economics Group Co., Ltd, Minister of Finance Department, Head of FinanceDepartment/Settlement Center of Beijing Electronics Holding Co., Ltd. and Supervisor of the 7
th
and 8
th
Supervisory Committee ofthe Company.Currently, he serves as the Supervisor of the 9
th
Supervisory Committee of the Company, Director of the Financial Department ofBeijing Electronics Holdings Co., Ltd. and Chairman of the Board of Beijing BOE Investment & Development Co., Ltd.
Mr. Wei Shuanglai, MBA, senior Engineer. He once acted as a staff of Beijing BBEF Electronics Group Co., Ltd., deputy directorof Technology Center, director of General Labor Office, Deputy GM of Beijing BBEF Digital Broadcasting and Television Co., Ltd.,president assistant & minister of Television Department, Executive President & Strategic Director, Deputy GM & ExecutivePresident, Deputy Secretary of Party Committee, Director, GM in Beijing BBEF Science & Technology Co., Ltd., Vice Minister ofTechnology Industry Department, Minister of Market Department, Head of Smart Equipment and System Business Department in
Beijing Electronics Holding Co., Ltd. and Deputy GM of Beijing Zhaowei Electronics (Group) Co., Ltd.Now, he acts as the Supervisor of the 9
th
Supervisory Committee of the Company, Director of Operation Management Department ofBeijing Electronics Holding Co., Ltd. & Director of Beijing Zhaowei Electronics (Group) Co., Ltd.Beijing BBEF Science & Technology Co., Ltd.
Ms. Chen Xiaobei, bachelor, economist. She once acted as deputy director of general office, director of General Office (PartyCommittee Office), Board Secreatry and Supervisor in Hefei Construction and Investment Holding (Group) Co., Ltd.Now, she acts as the Supervisor of the 9
th
Supervisory Committee of the Company, Member of the Party Committee, Director,Deputy GM and Board Secretary in Hefei Construction and Investment Holding (Group) Co., Ltd.
Ms. Shi Hong, Master of Economics, Senior Economist, Supervisor of the 7
th
Supervisory Committee of the Company, Supervisor ofthe 8
thSupervisory Committee of the Company.Now he is the Supervisor of the 9
thSupervisory Committee of the Company, Vice GM of Beijing Yizhuang Investment Co., Ltd. &Chairman of the Board of Yizhuang Equity Investment Fund Management (Tianjin) Co., Ltd., Vice Chairman of the Board ofSchneider (Beijing) LV Appliance Co.,Ltd., Member of Investment Decision Committee of China Reform Fund Management Co., Ltd.Director of Beijing Jinyuan Jingkai Limited Liability Company for Sewage Treatment and Supervisor of Beijing Boda XinyuanHouse Real Estate Development Co., Ltd..
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s LegalDepartment, and Employee Supervisor of the 7
th
Supervisory Committee of the Company, Employee Supervisor of the 8
th
Supervisory Committee of the CompanyNow he acts as Employee Supervisor of the 9
thSupervisory Committee of the Company, Chief of the Group’s Legal Center, SeniorChief Officer and the Director of Board of Directors of Gaochuang (Suzhou) Electronics Co., Ltd, Director of Beijing BOE EnergyTechnology Co., Ltd., Director of Orient Chengqi (Beijing) Business Technology Co., Ltd., Nanjing CEC Panda FPD TechnologyCo., Ltd., Qingdao BOE Smart Technology Co., Ltd., Chengdu BOE Smart Technology Co., Ltd., Chongqing BOE SmartTechnology Co., Ltd., Suzhou BOE Smart Technology Co., Ltd., Yunnan BOE Smart Technology Co., Ltd., Shenzhen BOE SmartTechnology Co., Ltd., Guangzhou BOE Smart Technology Co., Ltd. and BEHC Industrial Investment Co., Ltd., Supervisor of BOESmart Technology Co., Ltd., BOE Innovation Investment Co., Ltd., Tianjin BOE Innovation Investment Co., Ltd., Beijing BOEVacuum Electric Appliance Co., Ltd., Beijing BOE Technology Development Co., Ltd., BOE Jingxin Technology Co., Ltd., HefeiBOE Ruisheng Technology Co., Ltd. and BOE Digital Technology Co., Ltd.
Mr. He Daopin, master. He once worked as Production Supervisor, Purchasing Supervisor, Financial Manager, Vice GeneralManager of Beijing Oriental Aristocratic Paper Co., Ltd., Vice General Manager, General Manager of Industrial Gas UnderwritingCompany of Business Department of Park of the Company, Management Representative of Business Department of Park, Chief ofHR and Administrative Department, Chief of Property Department and Chief of Labor Union, Deputy Chief, Chief of Party MassWork Department of the Company, Corporate Cultural Center, Employee Supervisor of the 8
thSupervisory Committee of theCompany,He now serves as Employee Supervisor of the 9
th
Supervisory Committee of the Company, Head of the North China RegionalCorporate Culture Center, Chairman of Labor Union and Secretary of Committee for Discipline Inspection of Beijing BOE DisplayTechnology Co., Ltd. & Chief of Corporate Culture of the Display BG, Chief of Corporate Culture of Beijing BOE DisplayTechnology Co., Ltd. and Vice Chairman of Labor Union of the Group.
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister ofCorporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd. andDeputy Director of General Office of the Group.Now he acts as the Employee Supervisor of the 9
th
Supervisory Committee, Deputy Head of Party Mass/Corporate Culture Center,Deputy Secreatry of Discipline and Inspection Committee, Deputy Chairman of Labor Union in the Company.
Mr. Teng Jiao, bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department, Minister ofPerformance Analysis of the Company and Minister of Accounting Department of Beijing BOE Display Technology Co., Ltd.,Director of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd., Beijing BOE HealthTechnology Co., Ltd. and Supervisor of Beijing BOE CHATANI Electronics Co.,Ltd.Now, he acts as the Employee Supervisor of the 9
th
Supervisory Committee, Head of Finance Organization Accounting TaxationCenter, Senior Director of the Company, Director of Beijing BOE Vacuum Electric Co., Ltd., Beijing BOE Special DisplayTechnology Co., Ltd., Director of Beijing BOE Matsushita Color CRT Innovation Co., Ltd., Hefei BOE Hospital Co., Ltd., ChengduBOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou) Electronics Co., Ltd.
Senior ManagementMr. Yao Xiangjun, MBA, Chinese CPA. He once worked as Minister and Chief Inspector of Financing Departmentof the Company, CFO of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Business Planning Center, ChiefStrategic Officer of the Company, CEO of Intelligent System Business Group, Chairman of the Board of Beijing BOE VideoTechnology Co., Ltd., Hefei BOE Video Technology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOEOptical Science and Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd. and BOE Smart IoTTechnology Co., Ltd.Now he serves as member of Executive Committee, Executive Vice President of the Company, Director of SES-imgotag, andChairman of the Board of Hunan BOE Yiyun Technology Co., Ltd., and BOE Smart Retail (Hong Kong) Co., Limited.
Mr. Zhang Zhaohong, bachelor of inorganic nonmetallic materials, engineer. He joined in the Company in 1992, he once worked asCEO of the Display BG of BOE, Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd., Chengdu BOEOptoelectronics Technology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd.,Erdos Yuansheng Optoelectronics Co., Ltd., and Fuzhou BOE Optoelectronics Technology Co., Ltd., Director of Wuhan BOEOptoelectronics Technology Co., Ltd., Chairman of the Board of Beijing BOE Display Technology Co., Ltd., Chinese GM of BeijingAsahi Glass Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd. and Chairman of the Board of BOE HealthInvestment Management Co., Ltd., Beijing BOE Health Technology Co., Ltd., Beijing BOE Living Technology Co., Ltd., BOEHyundai LCD Inc.Now he serves as the member of Executive Committee, Executive Vice President and CEO of the Mini LED BG, Chairman of theBoard of BOE Jingxin Technology Co., Ltd.
Mr. Zhong Huifeng, Master Degree, awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever tookposts of Securities Affairs Representative and Manager of Security Department of the 2
nd
Board of Directors, Secretary to the Boardof the 3
rd, 4
th
and 5
th
Board of Directors of the Company, Employee Supervisor of the 6
thSupervisory Committee and EmployeeSupervisor of the 7
th
Supervisory Committee, Supervisor of Beijing Orient Top Victory Electronics Co., Ltd.. and Vice Secretary ofthe CPC, Secretary of Discipline Inspection Commission, Principal of Labor Union, CHO of the Company and President of BOEUniversity, Supervisor of Beijing BOE TPV Electronics Co., Ltd., Member of the Third National Committee of China’s Defense ofPosts and Telecommunications Union.
Now he acts as member of Executive Committee, Executive Vice President and Chief Performance Officer of the Company, Directorof Beijing BOE Investment Development Co., Ltd. and BOE Educational Technology Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of LegalAffairs Department of the Company, and as Secretary of the 5
th and 6thBoard of Directors.Now she is member of Executive Committee, Executive Vice President, Chief Counsel and Director of Beijing BOE Land Co., Ltd.and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Xie Zhongdong, Master, CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si WaterConservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C, Chief andDeputy Auditor of Auditing & Supervision Division of the Company, Vice Chief and Chief of Auditing & Supervision Division ofBeijing BOE Optoelectronics Technology Co., Ltd.Now he acts as member of Executive Committee, Senior Vice President, Chief Audit Officer and Chief Risk Control Officer of theCompany & Vice President of Beijing Internal Audit Association, Supervisor of Beijing BOE Optoelectronics Technology Co., Ltd.,Beijing BOE Display Technology Co., Ltd., Erdos Yuansheng Optoelectronics Co., Ltd., Chongqing BOE OptoelectronicsTechnology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Chengdu BOE Optoelectronics Technology Co., Ltd.,Chongqing BOE Display Technology Co., Ltd., Beijing BOE Sensor Technology Co., Ltd., Beijing BOE Video Technology Co., Ltd.,Gaochuang (Suzhou) Electronics Co., Ltd., Hefei BOE Video Technology Co., Ltd. and BOE Health Investment Management Co.,Ltd., Hefei BOE Display Technology Co., Ltd., Fuzhou BOE Optoelectronics Technology Co., Ltd., Nanjing CEC Panda FPDTechnology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOE Optical Science and Technology Co., Ltd.,Beijing BOE CHATANI Electronics Co.,Ltd., Suzhou BOE IT Co., Ltd., Hefei BOE Display Light Sources Co., Ltd., ChongqingBOE Display Lighting Co., Ltd., BOE Smart IoT Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd.,Hefei BOE Hospital Co., Ltd., Chengdu BOE Hospital Co., Ltd., Beijing BOE Health Technology Co., Ltd., BOE RegenerativeMedical Technologies Co. Ltd., Suzhou BOE Hospital Co., Ltd., Beijing BOE Life Technology Co., Ltd., Beijing BOE Hospital Co.,Ltd., Beijing BOE Marketing Co., Ltd., BOE Indonesia Co., Ltd, Beijing BOE Living Technology Co., Ltd. and BOE EducationalTechnology Co., Ltd.
Mr. Miao Chuanbin, Master degree, once worked as Manager of Market Department Beijing Wireless Power Plant PutaiTechnology Company, Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plan,Deputy General Manager of Beijing Ether-led Electronic Group Co., Ltd., Secretary of Party Committee Work Department,Enterprise Minister of Culture of Beijing Electronics Holdings Co., Ltd, Employee Supervisor of the 7
thSupervisory Committee ofthe Company, Employee Supervisor of the 8
thSupervisory Committee of the Company,.Now he is the member of Executive Committee, vice president, CCO of the Company, Deputy Secretary of CPC, Secretary of theCommission for Discipline Inspection, Union Chairman of the Company, Deputy Chairman of Beijing Industry (National Defense)Labor Union, member of Beijing Electronic Union, member of Beijing Industrial Movement Theory Research Association andmember of the Commission for Discipline Inspection in Beijing Electronics Holding Co., Ltd.
Mr. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,General Manager of Hefei Office, and Deputy General Manager of Hefei Xinsheng Optoelectronics Technology Co., Ltd.He is currently the Vice President, Chief Human Resources Officer and Director of the Digital Change Management Office of theCompany. He was awarded the "National Model Worker" in 2020.
Mr. Liu Hongfeng, master. He once worked as the Deputy Chief of the Finance Department of the Company, the Deputy Chief and
Chief of the BOD Office, the Securities Representative and the Secretary of the 7
thBoard of the Company.Now he is a vice president and the Secretary of the 9
thBoard of Directors of the Company, as well as a director of Beijing NissinElectronics Precision Component Co., Ltd. and Supervisor of Beijing Yinghe Century Land Co., Ltd.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
| Name | Shareholding entity | Office held in the shareholding entity | Start of tenure | End of tenure | Remuneration or allowance from the shareholding entity |
| Pan Jinfeng | Beijing Electronics Holdings Co., Ltd. | GM | 11 December 2020 | -- | Yes |
| Wang Chenyang | Beijing State-owned Capital Management Center | Vice GM | 19 November 2014 | -- | Yes |
| Li Yantao | Beijing Electronics Holdings Co., Ltd. | Minister of Strategic Department | 12 August 2016 | -- | Yes |
| Yang Xiangdong | Beijing Electronics Holdings Co., Ltd. | Full-time Chairman of the Dispatched Supervisory Committee | 17 April 2015 | -- | Yes |
| Xu Tao | Beijing Electronics Holdings Co., Ltd. | Finance Minister | 26 October 2012 | -- | Yes |
| Wei Shuanglai | Beijing Electronics Holdings Co., Ltd. | Minister of Operation and Management Department | 16 January 2019 | -- | Yes |
| Notes to post-holding in shareholder’s unit | The documents for holding the posts of shareholders entities haven’t listed the expiry date. | ||||
Offices held concurrently in other entities:
√Applicable □Not applicable
| Name | Other entity | Office held in the entity | Start of tenure | End of tenure | Remuneration or allowance from the entity |
| Wang Huacheng | Renmin University of China | Doctor Advisor | -- | -- | Yes |
| Hu Xiaolin | Tsinghua University | Associate professor | -- | -- | Yes |
| Li Xuan | The Central University of Finance and Economics | Post-graduate Tutor | -- | -- | Yes |
| Chen Xiaobei | Hefei Construction Investment Holding (Group) Co., Ltd. | Director, member of CPC Committee, Deputy GM, Secretary of the Board | -- | -- | Yes |
| Notes to post-holding in other unit | Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed. |
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior ManagementProposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1
stExtraordinary GeneralMeeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2million (before tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisorsas well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) Up to the end of the Reporting Period, the current directors, supervisors and senior management drew their remuneration from theCompany totaled RMB58.1914 million (before tax). Allowance for independent directors is RMB0.2 million (before tax) per year in2020. For details please referred to the statement below.Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
| Name | Office title | Gender | Age | Incumbent/Former | Total before-tax remuneration from the Company | Any remuneration from related party |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Male | 55 | Incumbent | 320.48 | No |
| Pan Jinfeng | Vice Chairman of the Board | Male | 41 | Incumbent | 0 | - |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | Male | 56 | Incumbent | 851.09 | No |
| Wang Chenyang | Director | Male | 51 | Incumbent | 0 | - |
| Song Jie | Director | Male | 53 | Incumbent | 0 | - |
| Sun Yun | Director, member of Executive Committee, Executive vice president, CFO | Female | 51 | Incumbent | 924.23 | No |
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, CEO of the Display BG | Male | 45 | Incumbent | 618.16 | No |
| Li Yantao | Director | Male | 39 | Incumbent | 0 | - |
| Wang Huacheng | Independent director | Male | 57 | Incumbent | 20 | - |
| Hu Xiaolin | Independent director | Male | 42 | Incumbent | 20 | - |
| Li Xuan | Independent director | Male | 52 | Incumbent | 20 | - |
| Tang Shoulian | Independent director | Male | 68 | Incumbent | 11.67 | - |
| Yang Xiangdong | Chairman of the Supervisory Committee | Male | 59 | Incumbent | 0 | - |
| Xu Tao | Supervisor | Male | 56 | Incumbent | 0 | - |
| Wei Shuanglai | Supervisor | Male | 53 | Incumbent | 0 | - |
| Chen Xiaobei | Supervisor | Female | 48 | Incumbent | 0 | - |
| Shi Hong | Supervisor | Female | 38 | Incumbent | 0 | - |
| Xu Yangping | Employee supervisor | Male | 46 | Incumbent | 131.31 | No |
| He Daopin | Employee supervisor | Male | 51 | Incumbent | 100.03 | No |
| Yan Jun | Employee supervisor | Male | 49 | Incumbent | 76.37 | No |
| Teng Jiao | Employee supervisor | Male | 38 | Incumbent | 154.46 | No |
| Yao Xiangjun | Member of Executive Committee, Executive vice president | Male | 43 | Incumbent | 373.49 | No |
| Zhang Zhaohong | Member of Executive Committee, Executive vice president, CEO of Mini LED BG | Male | 50 | Incumbent | 386.47 | No |
| Zhong Huifeng | Member of Executive Committee, Executive vice president, Chief Performance Officer | Male | 50 | Incumbent | 417.37 | No |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | Female | 48 | Incumbent | 417.66 | No |
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | Male | 50 | Incumbent | 276.39 | No |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | Male | 47 | Incumbent | 205.04 | No |
| Zhang Yu | Vice president, Chief Human Resource Officer | Male | 50 | Incumbent | 170.8 | No |
| Liu Hongfeng | Vice president, Secretary of the Board | Male | 42 | Incumbent | 315.79 | No |
| Lv Tingjie | Independent director | Male | 65 | Former | 8.33 | - |
| Total | -- | -- | -- | -- | 5,819.14 | -- |
Equity incentives for directors, supervisors and senior management in the Reporting Period:
√Applicable □Not applicable
Unit: share
| Name | Office title | Shares feasible to exercise during the | Shares exercised during the Reporting Period | Exercise price of exercised shares during the Reporting | Market price at the Period-end (RMB/share) | Number of restricted shares held at the period-begin | Number of released shares for the Reportin | Number of restricted shares newly granted during the | The grant price of restricted shares (RMB/share) | Number of restricted shares held at the period-end |
| Reporting Period | Period (RMB/share) | g Period | Reporting Period | |||||||
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | 0 | 0 | - | 6 | 0 | 0 | 2,000,000 | 2.72 | 2,000,000 |
| Liu Xiaodong | Vice Chairman of the Board, President, Vice Chairman of Executive Committee | 0 | 0 | - | 6 | 0 | 0 | 1,800,000 | 2.72 | 1,800,000 |
| Sun Yun | Director, member of Executive Committee, Executive vice president, CFO | 0 | 0 | - | 6 | 0 | 0 | 1,500,000 | 2.72 | 1,500,000 |
| Gao Wenbao | Director, member of Executive Committee, Executive vice president, | 0 | 0 | - | 6 | 0 | 0 | 1,500,000 | 2.72 | 1,500,000 |
| Yao Xiangjun | Member of Executive Committee, Executive vice president | 0 | 0 | - | 6 | 0 | 0 | 1,000,000 | 2.72 | 1,000,000 |
| Zhang Zhaohong | Member of Executive Committee, Executive vice president | 0 | 0 | - | 6 | 0 | 0 | 1,000,000 | 2.72 | 1,000,000 |
| Zhong Huifeng | Member of Executive Committee, Executive vice president, Chief Performance Officer | 0 | 0 | - | 6 | 0 | 0 | 1,000,000 | 2.72 | 1,000,000 |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | 0 | 0 | - | 6 | 0 | 0 | 1,000,000 | 2.72 | 1,000,000 |
| Xie Zhongdong | Member of Executive Committee, Senior vice president, Auditor General, Chief Risk Officer | 0 | 0 | - | 6 | 0 | 0 | 750,000 | 2.72 | 750,000 |
| Miao Chuanbin | Member of Executive Committee, vice president, Chief Culture Officer | 0 | 0 | - | 6 | 0 | 0 | 650,000 | 2.72 | 650,000 |
| Zhang Yu | Vice president, Chief Human Resource Officer | 0 | 0 | - | 6 | 0 | 0 | 634,000 | 2.72 | 634,000 |
| Liu Hongfeng | Vice president, Secretary of the Board | 0 | 0 | - | 6 | 0 | 0 | 750,000 | 2.72 | 750,000 |
| Total | -- | 0 | 0 | -- | -- | 0 | 0 | 13,584,000 | -- | 13,584,000 |
| Note (if any) | The restricted shares granted to the directors and senior management of the Company are restricted for a period of 24 months, 36 months and 48 months from the grant date of this equity incentive on 21 December 2020. As at the end of the Reporting Period, all equity incentives received by the directors and senior management of the Company were unlocked shares. | |||||||||
V Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent | 2,346 |
| Number of in-service employees of major subsidiaries | 53,242 |
| Total number of in-service employees | 76,459 |
| Total number of paid employees in the Reporting Period | 76,459 |
| Number of retirees to whom the Company as the parent or its major subsidiaries need to pay retirement pensions | 22 |
| Functions | |
| Function | Employees |
| Production | 47,309 |
| Sales | 2,334 |
| Technical | 23,666 |
| Financial | 679 |
| Administrative | 272 |
| Manager | 1,826 |
| Other | 373 |
| Total | 76,459 |
| Educational backgrounds | |
| Educational background | Employees |
| Doctor and post-doctorate | 368 |
| Master | 8,639 |
| Bachelor | 19,033 |
| College | 22,432 |
| Technical secondary school | 10,894 |
| Other | 15,093 |
| Total | 76,459 |
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to theexternal competitive compensation and internal fairness, strengthening the control of the group as well as considering the differenceamong all business groups and subsidiaries.
3. Employee Training Plans
Since its establishment in 2015, BOE University (BOEU) has been adhering to the philosophy of "education before career", tappingand developing excellent cultural and wisdom assets to help various professionals grow. It has been cultivating a new generation ofprofessional executives and business leaders, focusing on improving organizational performance and promoting the achievement ofcorporate strategic goals. BOEU is committed to providing targeted training programs for the Group's industrialists, professionals,managers and leaders, and helping BOE share its corporate philosophy and culture with similar SMEs, upstream and downstreamindustrial chain and eco-chain partners to achieve mutual benefits and win-win results. After five years of efforts, BOEU is steadilyexploring and developing towards the vision of "becoming an internationally competitive and respectable industrial university".In 2020, BOEU has formulated the working policy of "user thinking, value creation, open breakthrough, quality improvement andefficiency increase", and organized and implemented a series of empowerment projects themed with leadership, management,
marketing, professional techniques and general professional ability. Focusing on the strategic objectives of the Group, BOEU hasdesigned and implemented a series of empowerment and development projects, combining systemization and customization. Throughthe design of combining training and practice, BOEU has effectively helped management to change their concepts and enhance theirmanagement awareness, and cultivated a number of reserve young talents and professional and technical talents for the Group.Through holding innovation competitions, BOEU has helped the construction of BOE's innovative and entrepreneurial atmosphereand promoted the transformation of innovation achievements. Through consulting and diagnosis, training and counseling, BOEU hasdesigned and implemented a number of performance improvement projects, helping to solve practical business problems. At thesame time, BOEU actively promotes communication and cooperation with industry chain and eco-chain enterprises by providingBOE management methodology training for executives of eco-chain enterprises, and has achieved good results.
4. Labor Outsourcing
□ Applicable √ Not applicable
Part X Corporate GovernanceI General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting PeriodThe Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance forListed Companies, etc., and requirements of Guidelines of the Shenzhen Stock Exchange for the Standardized Operation ofCompanies, to continuously improve the corporate governance of the Company, to perfect internal control system as well as topromote corporate governance level of the Company.During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with therequirement of related laws and Company rules and regulations perform their obligations; ensure the standardization andeffectiveness of corporate governance. During the Reporting Period, the Company revised the Articles of Association and Rules ofProcedure of the Board and newly set up Financing Business Management System, Implementing Rules for the Enterprise AnnuityPlan Further promote the standardization of the corporate governance level. During the Reporting Period, the Company continued topromote the Company’s governance in many ways. Actively arranged the Company's new directors, supervisors to join specialtraining organized by the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propagandainside the Company. The Company preserved the related party fund transaction, external guarantee and regularly self-inspection ofthe shareholding and its changes of the directors, supervisors and senior executives, through maintaining and perfecting the ShenzhenStock Exchange Investors Interactive Platform to strengthen the communication of the investors.In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliancewith various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegalrelated-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow theconcept of “honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws andregulations. The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile,on the basis of ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internetvoting for minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevantlaws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and nobehaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulationsand the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They allperformed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept aconstant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They
also took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientificdecision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles ofAssociation and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors,namely, the Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and AuditCommittee. The Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of dutyperformance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevantmatters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior managementstaffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rightsof the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance withthe Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’sactivities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Shenzhen StockExchange for the Standardized Operation of Companies, Companies Publicly Issuing Securities Information Disclosure Standardson the Contents and Formats No.2 - Content And Format of the Annual Report, the Business Guidelines for Companies Listed atShenzhen Stock Exchange No. 2 - Regular Report Disclosure Related Matters. The Articles of Association and Management Methodsfor Information Disclosure and other requirements, the Company disclosed information in a timely and fair manner and ensured thefactuality, accuracy and completeness of the information disclosed.The Company attached importance to communication with investors through investor visits reception, investors interaction platform,online business performance explanation session, telephone and attending the investment strategy session organized by the securitiesbrokers, etc. Except for the aforesaid services, the Company’s senior management joined in the investor conference held by largeinternational investment institutions, actively communicated with the global institutional investors and discussed the situation anddevelopment strategy of the Company with investors and analyst, so as to promote the open, transparent, efficient and consistentcommunication between the Company, investors and analyst of securities, made them known more about the strategy, operation anddevelopment of the Company. As unremitting effort was made to establish the investor relations communication platform, theCompany innovated and developed the investor relations mini APP. While the communication will become more convenient betweenthe investor and the Company via the digital platform, the compliance and fairness of the investor relations work can also beguaranteed.
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period, based on the development demand, the Company revised a number of governance systems which hadbeen disclosed on Cninfo and details were presented in the following table:
| Diclosure date | Name of system | Established/Revised |
| 24 April 2020 | Composition and Rules of Procedure for Risk Control and Audit Committee under the Board of Directors | Revised |
| 24 April 2020 | Composition and Rules of Procedure for Nomination, Remuneration and Appraisal Committee under the Board of Directors | Revised |
| 24 April 2020 | Management System for Information Disclosure | Revised |
| 24 April 2020 | Management System for Independent Directors | Revised |
| 24 April 2020 | Management System for Registration of Insiders | Revised |
| 24 April 2020 | Management System for Investor Relations | Revised |
| 24 April 2020 | Internal Audit System | Revised |
| 24 April 2020 | Management System for Internal Control | Revised |
| 24 April 2020 | Management System for Raised Funds | Revised |
| 24 April 2020 | Management System for Financial Products and Structural Deposits | Revised |
| 24 April 2020 | Measures for Administration of External Guarantees | Revised |
| 29 May 2020 | Articles of Association | Revised |
| 29 May 2020 | Rules of Procedures for Shareholders Meetings | Revised |
| 29 May 2020 | Rules of Procedure for the Board of Directors | Revised |
| 29 May 2020 | Rules of Procedure for the Supervisory Committee | Revised |
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the CSRC governing thegovernance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,Asset, Organization and Financial AffairsThe Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production andbusiness departments and management system, the Company had the capability to make its own decisions, assume sole responsibilityfor its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operatingmanagement team. CEO, President, Chief Financial Officer, Secretary of the Board as well as other senior management staffs of theCompany all worked on full-time basis in the Company and did not hold any post in or receive any remuneration in the controllingshareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independentlyowned the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets likeland use rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated anyassets of the Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and theactual controller, with independent and sound organs and corporate governance structure. The Company had not handled any officialaffairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between thecontrolling shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company hadalso formulated a standard and independent finance accounting system as well as financial measurement system, established the
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account inbank, and paid tax independently.III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Index to disclosed information |
| The 2019 Annual General Meeting | Annual General Meeting | 30.81% | 29 May 2020 | 30 May 2020 | Announcement on Resolution of the 2019 Annual General Meeting (2020-039) disclosed on China Securities Journal, Shanghai Securities News, Securities Times and Ta Kung Pao as well as http://www.cninfo.com.cn. |
| The 1st Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 34.10% | 12 October 2020 | 13 October 2020 | Announcement on Resolution of the 1st Extraordinary General Meeting of 2020 (2020-063) disclosed on China Securities Journal, Shanghai Securities News, Securities Times and Ta Kung Pao as well as http://www.cninfo.com.cn. |
| The 2nd Extraordinary General Meeting of 2020 | Extraordinary General Meeting | 30.84% | 17 November 2020 | 18 November 2020 | Announcement on Resolution of the 2nd Extraordinary |
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with ResumedVoting Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
General Meeting of2020 (2020-071)disclosed on ChinaSecurities Journal,Shanghai SecuritiesNews, SecuritiesTimes and Ta KungPao as well ashttp://www.cninfo.com.cn.Attendance of independent directors at board meetings and general meetings
| Attendance of independent directors at board meetings and general meetings | |||||||
| Independent director | Total number of board meetings the independent director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the independent director failed to attend | The independent director failed to attend two consecutive board meetings (yes/no) | General meetings attended |
| Wang Huacheng | 12 | 2 | 10 | 0 | 0 | No | 1 |
| Hu Xiaolin | 12 | 2 | 10 | 0 | 0 | No | 2 |
| Li Xuan | 12 | 2 | 10 | 0 | 0 | No | 3 |
| Tang Shoulian | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Lyu Tingjie (former) | 3 | 0 | 3 | 0 | 0 | No | 1 |
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
2. Objections Raised by Independent Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent DirectorsIndicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the CompanyThe Company has four current independent directors, who are experts and scholars in the fields of finance, law and industry. Duringthe Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules, Guidance on Establishing IndependentDirector System for Listed Companies, Articles of Association and Independent Director System, the independent directors paidspecial attention to the standardized operation of the Company, performed their duties independently and diligently, issued manyprecious professional advice in terms of the perfection of systems and routine operating decision-making, etc., and issued theirindependent and fair opinion as independent directors on the related-party transactions, engagement of audit firm, decision of annualremuneration of senior management staffs, external guarantee and other events needing their opinion occurred in the ReportingPeriod, as well as played their due roles in perfecting the supervisory mechanism of the Company, protecting the legal right of theCompany and the whole shareholders.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period
1. Duty fulfillment of the Strategy Committee under Board of Directors
In the Reporting Period, the Strategy Committee under Board of Directors conscientiously controlled the strategic guidance,significant projects, and production and operation activities. During the recess of the board session, the Strategy Committee was incharge of working out the operating strategies of the Company, planning its significant investment and financing projects, andmonitoring its major operation activities, which played an important role in ensuring the Company’s stable and smooth operation inthe year.
2. Duty fulfillment of the Audit Committee under Board of Directors
In the Reporting Period, the Audit Committee conscientiously performed its routine duties, and actively advanced the launch of theaudit work for Y2020. Before the periodic reports were submitted to the Board for review, the Audit Committee convened specialsessions to discuss the reports. At the sessions, the committee members listened to relevant reports, expressed their opinions and putforward constructive advices concerning the Company’s internal control, financial auditing and so on.The Committee will quarterly examine the Company’s risk management, auditing and supervision work, and supervise the internalcontrol’s effective implementation. Meanwhile, the committee will also hold the annual report audit communication meeting so as todeliberate the annual internal control evaluation report and make relevant decisions.The 2020 annual audit work on financial report of the Audit Committee was detailed as follows:
1) Before the audit, the Committee discussed and decided the schedule of audit work for the 2020 annual report with KPMGHuazhen Certified Public Accountants (LLP) (hereinafter referred to as “KPMG”);
2) Before the presence of KPMG, the Committee reviewed the financial statements prepared by the Company and issued a writtenopinion;
3) Upon the presence of KPMG, the Audit Committee convened meetings to communicate with KPMG, reviewed the Company’sfinancial statements following the preliminary audit opinion issued by KPMG, and issued the written opinion concerned. Before theBoard reviewed the annual report, the Committee reviewed the annual financial statements, the employment of the CPAs firm, etc.,and made resolutions for further review by the Board.
4) In the audit process, the Committee issued a written Audit Urge Letter to KPMG, asking KPMG to finish the audit in an orderlymanner in strict accordance with the set schedule, so as to submit the annual audit report on time;The Audit Committee is of the opinion that the Financial Report is complete and factual with complete consolidated entities and
statements, an accurate consolidation basis, a steady and consistent accounting policy, proper application of the accounting policyand reasonable accounting estimates, which is in line with the Enterprise Accounting Standards and other regulations promulgated bythe Ministry of Finance.
3. Duty fulfillment of Nomination & Remuneration & Appraisal Committee under Board of DirectorsIn the Reporting Period, in accordance with relevant rules and laws, the Nomination & Remuneration & Appraisal Committeeconscientiously performed its duties endowed by the Board through strictly executing the appointment procedure of directors, andsenior management. And it reviewed the basic remuneration of senior managerial of the Company, the Proposal on the Appointmentof Professional Manager, the Proposal on the Election of Independent Director, the Proposal on the First Grant of Share Options andRestricted Shares to Awardees under the 2020 Share Option and Restricted Share Incentive Plans, etc. were approved.VII Performance of Duty by the Supervisory CommitteeIndicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the ReportingPeriod.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.VIII Appraisal of and Incentive for Senior ManagementAccording to the Articles of Association, Management System for Professional Managers and the Performance Management System,members of the senior management of the Company are appointed by the Board of Directors and sign the Appointment Contract andthe Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment will beimplemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and theappointment period targets, and the appointment period assessment is based on medium- and long-term targets, and the salary andrewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option and Restricted StockIncentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-upperiod based on the achievement of relevant conditions.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
2. Internal Control Self-Evaluation Report
| Disclosure date of the internal control self-evaluation report | 13 April 2021 |
| Index to the disclosed internal control self-evaluation report | On 13 April 2021, the Company disclosed 2020 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details. |
| Evaluated entities’ combined assets as % of consolidated total assets | 99.24% |
| Evaluated entities’ combined operating | 95.46% |
| revenue as % of consolidated operating revenue | ||
| Identification standards for internal control weaknesses | ||
| Type | Weaknesses in internal control over financial reporting | Weaknesses in internal control not related to financial reporting |
| Nature standard | The nature standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: Material weakness: In case of the following situations, it will be deemed as that major defects (including but not limited to the following situations) may occur: (1) Directors, supervisors and Senior Management make the malpractices; (2) The enterprise corrects the released financial statements; (3) The certified public accountant finds that there is a material misstatement in the current financial report, but the internal control fails to find the misstatement in the process of operation; (4) Supervision of the risk control and audit committee and the internal audit organization for internal control is ineffective. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the real and accurate objective of the financial report. The common weakness refers to other internal control weaknesses except for material weaknesses and serious weaknesses. | Evaluation standards for internal defects not related to financial reporting specified by the Company are as below: Material weakness: (1) The business scope of the Company violates national laws and regulations seriously; (2) The decision-making procedure is not scientific, major decision errors are released, the development strategies of the Company are deviated from severely and major property losses are caused for the Company; (3) Safety and environmental accidents occur, resulting in major negative effects on the Company; (4) A lot of senior management personnel and key technicians leave the Company; (5) Important business lacks system control or the system is failure; (6) Material weaknesses or serious weaknesses are not corrected. Serious weakness refers to one or combination of several control items, and its severity and economic consequence are lower than those of the material weaknesses but may still affect the enterprise to deviate from the control goal. The common weakness refers to other internal control defects except for material weaknesses and Serious weakness. |
| Quantitative standard | The quantitative standards of internal control deficiency evaluation over financial reporting determined by the Company are as follows: | The quantitative standards for internal control defects not related to financial reporting determined by the Company are consistent with those over the |
| Material weakness: The amount reported incorrectly is ≥1‰* total amount of assets of the Group (operating revenue) Serious weakness: 0.5‰*total amount of assets of the Group (operating revenue)≤ the amount reported incorrectly<1‰*total amount of assets of the Group (operating revenue) Common weakness: 0.1‰*total group assets (operating revenue)≤ the amount reported incorrectly <0.5‰*total group assets (operating revenue) | financial reporting. See the left side for details. | |
| Number of material weaknesses in internal control over financial reporting | 0 | |
| Number of material weaknesses in internal control not related to financial reporting | 0 | |
| Number of serious weaknesses in internal control over financial reporting | 0 | |
| Number of serious weaknesses in internal control not related to financial reporting | 0 | |
X Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
| Opinion paragraph in the independent auditor’s report on internal control | |
| We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on 31 December 2020 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations. | |
| Independent auditor’s report on internal control disclosed or not | Disclosed |
| Disclosure date | 13 April 2021 |
| Index to such report disclosed | The Company disclosed the Audit Report on Internal Control on 13 April 2021, for details, please refer to http://www.cninfo.com.cn |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Material weaknesses in internal control not related to financial reporting | No |
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internalcontrol.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internalcontrol self-evaluation report issued by the Company’s Board.
√ Yes □ No
Part XI Corporate BondsDoes the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full?YesI. Basic Information of the Corporate Bonds
| Bond name | Abbr. | Bond code | Date of issue | Maturity | Balance (RMB’0,000) | Coupon rate | Way of redemption |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 | 800,000 | 4.00% | 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. |
| 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 | 200,000 | 3.64% | 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. |
| 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 | 200,000 | 3.54% | 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. |
| 2020 Public Offering of Renewable Corporate | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2024 | 200,000 | 3.50% | If the issuer does not execute its right in the |
| Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 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. | ||
| Listed or transferred trading place of the Company bonds | SZSE. | ||
| Appropriate arrangement of the investors | The qualified investors | ||
| Interest payment during the Reporting Period | The Company paid the interests of the corporate bonds 19BOEY1 for the period from 29 October 2019 to 28 October 2020 on 29 October 2020. | ||
| Execution of the relevant regulations during the Reporting Period such as the affiliated option clause of the issuers or investors, special clauses such as the exchangeable regulations of the Company bonds (if applicable) | For the renewable corporate bonds “19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3” 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall have the 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. All bonds issued in the Reporting Period entitle the issuer the right in the deferred interest payment. As of the approval quotation date of the Annual Report, these bonds have not yet been executed. | ||
II. List of the Bond Trustee and the Rating Organization
| Bond trustee: | ||||||||
| Name | China Securities Co., Ltd. | Office address | Rm. 2203, North Tower, Shanghai Securities Plaza, 528 Pudong Road South, Shanghai | Contact person | Zhu Mingqiang, Han Yong, Liao Ling, Xu Tianquan, Chen Qiaoling, Minggennamuer | Contact number | 021-68801569 | |
| Rating organization executed the tracking rating of the corporate bonds of the Reporting Period: | ||||||||
| Name | China Lianhe Credit Rating Co., Ltd. | Office address | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | |||||
| Alternation reasons, execution process and influences on the investors’ interests etc. if there was alternation of the bond trustees and the credit rating agencies engaged by the Company during the Reporting Period (if applicable) | The People's Bank of China and the China Securities Regulatory Commission jointly issued Announcement [2018] No. 14 to encourage the integration of different credit-rating agencies, as legal entities, under the same actual controller through mergers, restructuring and other market-based approaches. China Lianhe Credit Rating Co., Ltd. (the former parent company of the rating agency United Ratings) assumed all the securities rating business of United Ratings and its corresponding rights and obligations on 26 October 2020. China Lianhe Credit Rating Co., Ltd. will be responsible for the Company's subsequent follow-up rating business, which will have | |||||||
III. List of the Usage of the Raised Funds of the Corporate Bonds
no impact on the Company's bond business.List of the usage of the raised funds andthe execution process of the Companybonds
| List of the usage of the raised funds and the execution process of the Company bonds | The Company executed the internal decision-making process strictly according to the applications committed by the prospectus as well as the review and approval regulations of the Board of Directors and meetings of shareholders of the Company. |
| Ending balance (RMB’0,000) | 1,058.13 |
| Operating situation of the raised funds special account | The Company signed the Agreement on BOE’s Public Issue of Renewable Corporate Bonds Account and Three-party Supervision of Funds with Beijing Branch of Ping An Bank, CITIC Bank Beijing Branch, BDA Sub-branch of ABC, and BDA Sub-branch of ICBC and the Business Department of Beijing Branch of China Merchants Bank and opened special bank accounts for the raised fund so as to earmark the fund for its specified purpose only. |
| Whether the usage of the raised funds met with the usage, using plan and other agreements committed on the prospectus | Yes |
IV. Rating Situation of the Corporate Bonds Information
| Bond name | Corporate credit rating | Outlook on corporate rating | Credit rating of corporate bonds | Letter of credit rating | Date of report disclosure |
| 19BOEY1 | AAA | Stable | AAA | LH[2019]No.2141 | 23 October 2019 |
| 20BOEY1 | AAA | Stable | AAA | LH[2020]No.236 | 25 February 2020 |
| 20BOEY2 | AAA | Stable | AAA | LHPZ[2020]No.376 | 16 March 2020 |
| 20BOEY3 | AAA | Stable | AAA | LHPZ[2020]No.692 | 22 April 2020 |
On 19 June 2020, United Credit Ratings Co., Ltd. issued the Follow-up Rating Report of the 2020 for the Renewable CorporateBonds of BOE Technology Group Co., Ltd. According to the Report, the issuer was still granted with a corporate long-term creditrating of AAA with rating outlook rated as Stable; the bond credit rating remained AAA. The Follow-up Rating Report waspublished on http://www.cninfo.com.cn/ and the website of United Ratings at www.unitedratings.com.cn. on 22 June 2020.It is estimated that China Lianhe Credit Rating Co., Ltd. will issue the Follow-up Rating Report of the 2021 for the RenewableCorporate Bonds of BOE Technology Group Co., Ltd. in June 2021. The Company will disclose the tracking rating analysis report on
www.szse.cn in time. And please investors pay attention to it.
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures ofthe Corporate Bonds“19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3” renewable corporate bonds are unsecured bonds without any other creditenhancement measures.“19BOEY1” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 29 October 2019; (2) if theissuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and eachOctober 29 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be the
interest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If theissuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cyclefrom the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal optionexecution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.“20BOEY1” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 28 February 2020; (2) if theissuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and eachFebruary 28 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be theinterest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If theissuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cyclefrom the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal optionexecution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.“20BOEY2” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 19 March 2020; (2) if theissuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and eachMarch 19 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be theinterest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If theissuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cyclefrom the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal optionexecution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.“20BOEY3” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 27 April 2020; (2) if theissuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and eachApril 27 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be theinterest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If theissuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cyclefrom the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal optionexecution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.The repayment guarantee measures of the corporate bonds of “19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3”: to formulatethe Meeting Regulations of the Bondholders and the repayment guarantee measures; to formulate and strictly carry out the fundsmanagement plans; to fully exert the functions of the bond trustees; to strictly disclose the information; at the same time, when expectedto fail to repay the principals and interest of the bonds on time or failed to repay the principals and interest of the bonds when expired,the Company will at least adopt the measures of the execution of the capital expenditures projects such as to postpone the significantexternal investment and the purchase as well as merger and so on that guarantee the repayment of the debts.During the Reporting Period and before the approval quotation date of this Report, there was no alternation of the credit-addingmechanism, debt repayment plan and other repayment guarantee measures of the corporate bonds.VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
Naught
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bonds trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention to the operating, finance and creditsituation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Tradingof the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed theresponsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
| Item | 2020 | 2019 | YoY Change |
| EBITDA（RMB’0,000） | 3,215,335 | 2,201,586 | 46.05% |
| Current ratio | 1.23 | 1.33 | -7.52% |
| Asset-liability ratio | 59.13% | 58.56% | 0.57% |
| Quick ratio | 1.06 | 1.17 | -9.40% |
| Total debt ratio of EBITDA | 19.23% | 16.26% | 2.97% |
| Times interest earned | 2.27 | 1.14 | 99.12% |
| Times interest earned of cash | 8.07 | 5.80 | 39.14% |
| Times interest earned of EBITDA | 6.69 | 6.03 | 10.95% |
| Loan repayment rate | 100.00% | 100.00% | 0.00% |
| Interest coverage | 100.00% | 100.00% | 0.00% |
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA increased 46.05% compared with that of the same period of last year, mainly due to the increase of total profit.Times interest earned increased 99.12% compared with that of the same period of last year, mainly due to the increase of total profit.Times interest earned of cash increased 39.14% compared with that of the same period of last year, mainly due to the increase of netcash generated from/used in operating activities.IX. List of the Interest Payment of Other Bonds and Debt Financing Instruments during theReporting PeriodThe Company paid interest of the private placement bond Euro PP for the period from 24 December 2019 to 23 December 2020respectively on 30 June 2020 and 24 December 2020. .
X. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The Company has standardized operation, good reputation, strong profitability and solvency. It has a good credit status with majorbanks. It has maintained long-term partnership with major domestic commercial banks, obtained higher credit lines from variousbanks, and has indirect debt financing capabilities Strong. Up to 31 December 2020, the total amount of credit lines from majorbanks was RMB63 billion with the used credit lines of RMB30.5 billion and the unused credit lines of RMB32.5 billion. TheCompany has a good record of debt repayment. The principals and the interest of bank loans were repaid on time. No bank loanswere extended in the Reporting Period.
XI. List of the Execution of the Agreements or the Commitments Related to the CompanyBonds Raising Specification during the Reporting PeriodUp to the approval quotation date of the Annual Report, the Company strictly carried out each agreement and commitment of thecurrent bond prospectus, and there was no any situation of the inefficient execution of the relevant agreements or commitmentsaccording to the bond prospectus by the Company that caused the negative influences on the bonds investors.XII. Significant Events Occurring during the Reporting PeriodAs of the approval quotation date of the Annual Report, no significant events presented in Article 45 of Measures for theAdministration of Corporate Bond Issuance and Trading occurred.XIII. Whether there Was Guarantor of the Corporate Bonds
□ Yes √ No
Part XII Financial Statements
I Independent Auditor’s Report
| Type of the independent auditor’s opinion | Standard unqualified audit opinion |
| Date of signing this report | April 9, 2021 |
| Name of the independent auditor | KPMG Huazhen Certified Public Accountants (LLP) |
| Reference number of auditor’s report | KPMGHZSZ No. 2102796 |
| Name of the certified public accountants | Zhang Huan, Chai Jing |
AUDITORS’ REPORT
毕马威华振审字第2102796号
All shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Company Limited (“BOE”), whichcomprise the consolidated and company’s balance sheet as at 31 December 2020, the consolidated and company’s incomestatement, the consolidated and company’s cash flow statement, and the consolidated and company’s statement of changes inshareholders’ equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’sfinancial position of BOE as at 31 December 2020, and its consolidated and company’s financial performance and cash flowsof BOE for the year then ended in accordance with Accounting Standards for Business Enterprises issued by the Ministry ofFinance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public Accountants (“CSAs”). Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of BOE in accordance with the China Code of Ethics for CertifiedPublic Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financialstatements of the current period. These matters were addressed in the context of our audit of the financial statements as awhole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
| Revenue recognition | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 23 and “V. Notes to the consolidated financial statements” 44. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| The revenue of BOE and its subsidiaries (“BOE Group”) is mainly derived from the sales of products relating to display device across the domestic and overseas market. The sales contracts/orders signed between BOE Group and its customers (mainly electronic equipment manufacturers) contain various trading terms. BOE Group judges the transfer timing of control according to the trading terms, and recognises revenue accordingly. Depending on the trading terms, the income is usually recognised when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be recognised in a correct period. | Our audit procedures to evaluate revenue recognition included the following: ? Evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ? Check key sales contracts/orders on a sampling basis to identify relevant trading terms, and evaluate whether the accounting policies for revenue recognition of BOE Group meet the requirements of the Enterprise Accounting Standards; ? On a sampling basis and according to different trading terms, reconcile the revenue recorded in the current year to relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, delivery receipts, etc. to evaluate whether revenue is recognised in accordance with the accounting policy of BOE Group; ? On a sampling basis and according to different trading terms, cross check the revenue recorded before and after the balance sheet date against relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, delivery receipts, etc. to evaluate whether revenue is recorded in the appropriate period; |
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Key Audit Matters (continued)
| Revenue recognition (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 23 and “V. Notes to the consolidated financial statements” 44. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| ? Select a sample based on the characteristics and nature of customer’s transaction, and perform certification on the balance of accounts receivable as at the balance sheet date and the sales transaction amount during the current year; ? On a sampling basis, check the written-back of revenue after the balance sheet date (including sales discounts and sales returns, etc.) with relevant supporting documents to assess whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents. | |
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Key Audit Matters (continued)
| Book value of fixed assets and construction in progress | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 13, 14 and “V. Notes to the consolidated financial statements” 14, 15. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| BOE Group continued to invest in building production lines of display device to expand its production capacity. As at 31 December 2020, the book value of fixed assets and construction in progress amounted to RMB 267,442 million. The judgement made by the management on the following aspects will affect the book value of fixed assets and construction in progress, including: ? Determine which type of expenditures are qualified for capitalisation; ? Determine the timing for transferring construction in progress to fixed assets and making depreciation; ? Estimate the useful life and residual value of corresponding fixed assets. We identified the book value of fixed assets and construction in progress of BOE Group as a key audit matter because the valuation of the book value of fixed assets and construction in progress involves significant judgement from the management and it is of importance to the consolidated financial statements. | Our audit procedures to assess the book value of fixed assets and construction in progress included the following: ? Evaluate the design and operation effectiveness of key internal controls (including estimating useful life and residual values, etc.) related to the integrity, existence and accuracy of fixed assets and construction in progress; ? Check the physical status of construction in progress and fixed assets on a sampling basis; ? Check capital expenditures with relevant supporting documents (including purchase agreements/orders, acceptance orders, engineering construction contracts, project progress reports, etc.) on a sampling basis; ? Assess whether the capitalised commissioning expenses for the current year are in compliance with relevant capitalisation conditions; check the commissioning expenses with relevant supporting documents on a sampling basis; ? On the basis of sampling, assess the timing for transferring construction in progress to fixed assets, through the inspection of commissioning situation and the documents for transferring construction in progress to fixed assets; ? Based on our understanding of industry practices and actual operating conditions of assets, we evaluate the management’s estimation of the useful life and residual value of fixed assets. |
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Key Audit Matters (continued)
| Impairment of fixed assets and intangible assets | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| BOE Group principally generates revenue from the production and sale of display device. Due to the fluctuation of supply-demand relationship of display device and the influence of technology upgrading, the profit level of different production lines suffer dramatic fluctuation. As at 31 December 2020, the book value of fixed assets and intangible assets amounted to RMB 236,743 million, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2020 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate. | Our audit procedures to assess the impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, assess the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, assess if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry; |
AUDITOR’S REPORT (continued)
毕马威华振审字第2102796号
Key Audit Matters (continued)
| Impairment of fixed assets and intangible assets (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias. | Our audit procedures to assess the impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; assess how changes in key assumptions (individually or collectively) will lead to different results and assess whether there are indications of management bias in the selection of key assumptions; ? Consider whether the disclosure of impairment of fixed assets and intangible assets in the financial statements is consistent with relevant accounting policy. |
AUDITOR’S REPORT (continued)
毕马威华振审字第2102796号
Other Information
BOE’s management is responsible for the other information. The other information comprises all the information included in2020 annual report of BOE, other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with theAccounting Standards for Business Enterprises, and for the design, implementation and maintenance of such internal controlnecessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the ability of BOE to continue as a goingconcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessBOE either intends to liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting process of BOE.
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professional scepticismthroughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
? Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the BOE’s ability to continueas a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause BOE to cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.
AUDITORS’ REPORT (continued)
毕马威华振审字第2102796号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
? Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within BOE to express an opinion on the financial statements. We areresponsible for the instruction, supervision and execution of Conch Group’s audit, and assumefull responsibility for the audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence and communicate with them all relationships and other matters that may reasonably be thought tobear on our independence and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the key audit matters. We describethese matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants Registered in the
People’s Republic of China
Zhang Huan (Engagement Partner)
Beijing China Chai Jing
9 April 2021
Consolidated balance sheetas at 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | V. 1 | 73,694,296,095 | ? | 56,972,723,239 |
| Financial assets held for trading | V. 2 | 4,367,201,833 | ? | 5,809,184,994 |
| Bills receivable | V. 3 | 215,994,373 | ? | 331,145,492 |
| Accounts receivable | V. 4 | 22,969,140,355 | ? | 18,135,687,806 |
| Prepayments | V. 5 | 1,119,595,984 | ? | 626,985,706 |
| Other receivables | V. 6 | 658,114,833 | ? | 706,171,112 |
| Inventories | V. 7 | 17,875,454,490 | ? | 12,396,194,762 |
| Contract assets | V. 8 | 49,897,395 | ? | - |
| Assets held for sale | V. 9 | 186,892,645 | ? | 173,910,820 |
| Other current assets | V. 10 | 7,848,869,252 | ? | 9,296,637,067 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 128,985,457,255 | ? | 104,448,640,998 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Assets (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term equity investments | V. 11 | 3,693,170,224 | ? | 2,718,037,934 |
| Investments in other equity instruments | V. 12 | 533,645,423 | ? | 632,076,647 |
| Investment properties | V. 13 | 1,196,168,511 | ? | 1,241,242,850 |
| Fixed assets | V. 14 | 224,866,586,069 | ? | 125,786,241,938 |
| Construction in progress | V. 15 | 42,575,849,952 | ? | 87,376,782,527 |
| Intangible assets | V. 16 | 11,875,926,448 | ? | 7,416,416,829 |
| Goodwill | V. 17 | 1,400,357,242 | ? | 707,603,856 |
| Long-term deferred expenses | V. 18 | 299,634,100 | ? | 345,424,409 |
| Deferred tax assets | V. 19 | 205,041,088 | ? | 248,153,761 |
| Other non-current assets | V. 20 | 8,624,970,019 | ? | 9,491,581,559 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 295,271,349,076 | ? | 235,963,562,310 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total assets | ? | 424,256,806,331 | ? | 340,412,203,308 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | V. 21 | 8,599,569,471 | ? | 6,366,717,121 |
| Bills payable | V. 22 | 1,231,533,895 | ? | 2,028,917,980 |
| Accounts payable | V. 23 | 27,164,171,682 | ? | 21,183,567,553 |
| Advance payments received | V. 24 | 124,040,749 | ? | 1,260,732,785 |
| Contract liabilities | V. 25 | 3,440,720,535 | ? | - |
| Employee benefits payable | V. 26 | 3,758,623,797 | ? | 2,373,745,454 |
| Taxes payable | V. 27 | 1,077,686,869 | ? | 730,996,129 |
| Other payables | V. 28 | 32,867,709,024 | ? | 24,570,589,610 |
| Non-current liabilities due within one year | V. 29 | 24,500,550,121 | ? | 18,849,281,019 |
| Other current liabilities | V. 30 | 2,194,716,852 | ? | 1,013,738,515 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 104,959,322,995 | ? | 78,378,286,166 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | V. 31 | 132,452,767,135 | ? | 107,730,595,615 |
| Debentures payable | V. 32 | 398,971,739 | ? | 387,878,384 |
| Long-term payables | V. 33 | 2,114,175,683 | ? | 984,520,824 |
| Provisions | V. 34 | - | ? | 16,457,010 |
| Deferred income | V. 35 | 4,246,231,468 | ? | 2,204,400,566 |
| Deferred tax liabilities | V. 19 | 1,427,601,154 | ? | 1,451,825,357 |
| Other non-current liabilities | V. 36 | 5,260,001,443 | ? | 8,200,542,412 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 145,899,748,622 | ? | 120,976,220,168 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 250,859,071,617 | ? | 199,354,506,334 |
| ? | ? | ? | ? | ? |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V. 37 | 34,798,398,763 | ? | 34,798,398,763 |
| Other equity instruments | V. 38 | 14,146,997,427 | ? | 8,013,156,853 |
| Capital reserve | V. 39 | 37,435,655,934 | ? | 38,353,242,364 |
| Less: Treasury shares | V. 40 | 1,036,298,508 | ? | - |
| Other comprehensive income | V. 41 | (22,198,072) | ? | (4,566,639) |
| Surplus reserve | V. 42 | 2,444,416,669 | ? | 1,516,139,709 |
| Retained earnings | V. 43 | 15,509,794,622 | ? | 12,381,758,005 |
| ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | ? | 103,276,766,835 | ? | 95,058,129,055 |
| ? | ? | ? | ? | ? |
| Non-controlling interests | ? | 70,120,967,879 | ? | 45,999,567,919 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 173,397,734,714 | ? | 141,057,696,974 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 424,256,806,331 | ? | 340,412,203,308 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
??
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | XV. 1 | 4,375,497,010 | ? | 3,680,770,048 |
| Bills receivable | ? | - | ? | 84,230,531 |
| Accounts receivable | XV. 2 | 3,974,212,308 | ? | 646,533,115 |
| Prepayments | ? | 12,185,651 | ? | 77,682,682 |
| Other receivables | XV. 3 | 16,345,474,583 | ? | 4,827,398,094 |
| Inventories | ? | 18,622,283 | ? | 13,935,401 |
| Other current assets | XV. 4 | 177,761,718 | ? | 109,497,897 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 24,903,753,553 | ? | 9,440,047,768 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Assets (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term equity investments | XV. 5 | 182,135,057,208 | ? | 159,389,864,760 |
| Investments in other equity instruments | ? | 81,192,872 | ? | 79,405,724 |
| Investment properties | ? | 271,212,241 | ? | 280,525,802 |
| Fixed assets | ? | 1,009,178,229 | ? | 949,104,308 |
| Construction in progress | ? | 418,343,961 | ? | 358,933,667 |
| Intangible assets | XV. 6 | 1,380,069,827 | ? | 1,493,632,264 |
| Long-term deferred expenses | ? | 105,439,681 | ? | 109,216,398 |
| Deferred tax assets | XV. 7 | - | ? | 360,268,466 |
| Other non-current assets | ? | 2,611,437,988 | ? | 162,516,190 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 188,011,932,007 | ? | 163,183,467,579 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total assets | ? | 212,915,685,560 | ? | 172,623,515,347 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | ? | - | ? | 1,220,000,000 |
| Accounts payable | ? | 272,241,469 | ? | 27,919,341 |
| Advance payments received | XV. 8 | 18,286,458 | ? | 2,117,568,995 |
| Employee benefits payable | XV. 9 | 516,060,153 | ? | 252,206,075 |
| Taxes payable | ? | 87,179,892 | ? | 107,287,957 |
| Other payables | XV. 10 | 6,541,918,681 | ? | 5,260,470,974 |
| Non-current liabilities due within one year | ? | 7,847,210,073 | ? | 5,490,440,787 |
| Other current liabilities | ? | 1,977,977 | ? | 1,423,133 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 15,284,874,703 | ? | 14,477,317,262 |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | XV. 11 | 38,360,714,121 | ? | 33,310,701,574 |
| Deferred income | XV. 12 | 3,633,342,446 | ? | 4,627,393,256 |
| Deferred tax liabilities | XV. 7 | 385,697,604 | ? | - |
| Other non-current liabilities | ? | 56,156,661,805 | ? | 33,297,240,830 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 98,536,415,976 | ? | 71,235,335,660 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 113,821,290,679 | ? | 85,712,652,922 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V. 37 | 34,798,398,763 | ? | 34,798,398,763 |
| Other equity instruments | V. 38 | 14,146,997,427 | ? | 8,013,156,853 |
| Capital reserve | XV. 13 | 36,696,079,366 | ? | 37,608,039,685 |
| Less: Treasury shares | V. 40 | 1,036,298,508 | ? | - |
| Other comprehensive income | XV. 14 | 90,713,133 | ? | 193,638,576 |
| Surplus reserve | V. 42 | 2,444,416,669 | ? | 1,516,139,709 |
| Retained earnings | XV. 15 | 11,954,088,031 | ? | 4,781,488,839 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 99,094,394,881 | ? | 86,910,862,425 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 212,915,685,560 | ? | 172,623,515,347 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
??
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| I. Operating income | V. 44 | 135,552,569,729 | ? | 116,059,590,164 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | V. 44 | 108,823,122,756 | ? | 98,446,269,296 |
| Taxes and surcharges | V. 45 | 1,078,900,085 | ? | 861,100,605 |
| Selling and distribution expenses | V. 46 | 3,137,719,001 | ? | 2,917,865,380 |
| General and administrative expenses | V. 47 | 6,203,600,521 | ? | 5,214,948,027 |
| Research and development expenses | V. 48 | 7,622,597,925 | ? | 6,699,973,240 |
| Financial expenses | V. 49 | 2,650,153,972 | ? | 1,994,150,258 |
| Including: Interest expenses | ? | 3,497,697,709 | ? | 2,525,136,209 |
| Interest income | ? | 873,376,712 | ? | 840,190,118 |
| Add: Other income | V. 50 | 2,337,705,817 | ? | 2,605,658,711 |
| Investment income | V. 51 | 897,891,109 | ? | 342,620,691 |
| Including: Income from investment in associates and joint ventures | ? | 444,407,986 | ? | 200,020,686 |
| Gains from changes in fair value | V. 52 | 31,936,339 | ? | 137,473,077 |
| Credit losses | V. 53 | 1,827,519 | ? | (28,262,627) |
| Impairment losses | V. 54 | (3,280,425,399) | ? | (2,584,183,258) |
| Gains from asset disposals | V. 55 | 19,061,846 | ? | 79,029 |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 6,044,472,700 | ? | 398,668,981 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | V. 56 | 120,503,628 | ? | 208,430,198 |
| Less: Non-operating expenses | V. 56 | 72,139,666 | ? | 103,349,078 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 6,092,836,662 | ? | 503,750,101 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | V. 57 | 1,564,566,246 | ? | 979,991,504 |
| ? | ? | ? | ? | ? |
| V. Net profit/(losses) for the year | ? | 4,528,270,416 | ? | (476,241,403) |
| ? | ? | ? | ? | ? |
| Attributable to: Shareholders of the Company | ? | 5,035,627,952 | ? | 1,918,643,871 |
| Non-controlling interests | ? | (507,357,536) | ? | (2,394,885,274) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | V. 41 | 165,945,656 | ? | 228,445,653 |
| Other comprehensive income (net of tax) attributable to owners of the Company | ? | 177,438,725 | ? | 236,859,881 |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| a. Other comprehensive income recognised under equity method | ? | 136,381,254 | ? | 366,930,596 |
| b. Changes in fair value of investments in other equity instruments | ? | (19,975,534) | ? | (36,688,762) |
| (2) Items that may be reclassified to profit or loss | ? | ? | ? | ? |
| a. Other comprehensive income recognised under equity method | ? | 11,835 | ? | - |
| b. Translation differences arising from translation of foreign currency financial statements | ? | 61,021,170 | ? | (93,381,953) |
| Other comprehensive income (net of tax) attributable to non-controlling interests | ? | (11,493,069) | ? | (8,414,228) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 4,694,216,072 | ? | (247,795,750) |
| ? | ? | ? | ? | ? |
| Attributable to shareholders of the Company | ? | 5,213,066,677 | ? | 2,155,503,752 |
| Attributable to non-controlling interests | ? | (518,850,605) | ? | (2,403,299,502) |
| ? | ? | ? | ? | ? |
| VIII. Earnings per share | ? | ? | ? | ? |
| (1) Basic earnings per share | V. 58 | 0.13 | ? | 0.05 |
| (2) Diluted earnings per share | V. 58 | 0.13 | ? | 0.05 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| I. Operating income | XV. 16 | 4,541,676,195 | ? | 4,785,387,719 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | ? | 22,304,841 | ? | 29,852,957 |
| Taxes and surcharges | XV. 17 | 40,889,596 | ? | 41,488,521 |
| General and administrative expenses | ? | 858,750,449 | ? | 741,464,420 |
| Research and development expenses | XV. 18 | 2,102,895,125 | ? | 2,184,751,287 |
| Financial expenses | XV. 19 | 916,538,545 | ? | 903,880,632 |
| Including: Interest expenses | ? | 970,259,855 | ? | 934,776,554 |
| Interest income | ? | 37,793,976 | ? | 41,156,445 |
| Add: Other income | XV. 20 | 970,989,167 | ? | 945,400,212 |
| Investment income | XV. 21 | 2,429,685,102 | ? | 2,185,769,102 |
| Including: Income from investment in associates and joint ventures | ? | 416,901,621 | ? | 244,595,829 |
| Credit losses | ? | (5,376,889) | ? | (62,558,750) |
| Impairment losses | ? | - | ? | (32,000,000) |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 3,995,595,019 | ? | 3,920,560,466 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | ? | 6,879,087 | ? | 4,120,515 |
| Less: Non-operating expenses | ? | 11,908,850 | ? | 8,305,483 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 3,990,565,256 | ? | 3,916,375,498 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | XV. 22 | 251,373,672 | ? | 230,811,042 |
| ? | ? | ? | ? | ? |
| V. Net profit | ? | 3,739,191,584 | ? | 3,685,564,456 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | XV. 14 | 136,131,965 | ? | 389,401,782 |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| a. Other comprehensive income recognised under equity method | ? | 136,381,254 | ? | 366,930,596 |
| b. Changes in fair value of investments in other equity instruments | ? | (261,124) | ? | 22,471,186 |
| (2) Items that may be reclassified to profit or loss | ? | 11,835 | ? | -? |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 3,875,323,549 | ? | 4,074,966,238 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
??
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 152,737,944,370 | ? | 131,939,100,428 |
| Refund of taxes | ? | 11,677,125,705 | ? | 9,211,921,444 |
| Proceeds from other operating activities | ? | 5,178,686,102 | ? | 4,372,301,569 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 169,593,756,177 | ? | 145,523,323,441 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (115,414,695,545) | ? | (103,103,588,751) |
| Payment to and for employees | ? | (10,375,043,429) | ? | (11,274,232,340) |
| Payment of various taxes | ? | (2,493,092,709) | ? | (2,151,136,164) |
| Payment for other operating activities | ? | (2,059,151,036) | ? | (2,911,286,992) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (130,341,982,719) | ? | (119,440,244,247) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash inflow from operating activities | V. 59(1) | 39,251,773,458 | ? | 26,083,079,194 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 23,039,182,987 | ? | 33,515,656,910 |
| Investment returns received | ? | 79,109,825 | ? | 93,386,997 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ? | 177,874,045 | ? | 19,822,394 |
| Net amount received from subsidiaries | V. 59(2) | 954,155,710 | ? | 33,640,033 |
| Net proceeds from disposal of subsidiaries | ? | 336,086,996 | ? | - |
| Proceeds from other investing activities | ? | 945,857,001 | ? | 2,287,178,748 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 25,532,266,564 | ? | 35,949,685,082 |
| ? | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (44,215,334,543) | ? | (49,415,897,698) |
| Payment for acquisition of investments | ? | (20,725,326,161) | ? | (33,949,914,820) |
| Net payment for acquisition of subsidiaries and other business units | ?V. 59(2) | (1,895,124,119) | ? | - |
| Payment for other investing activities | ? | (2,103,448,590) | ? | - |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (68,939,233,413) | ? | (83,365,812,518) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash outflow from investing activities | ? | (43,406,966,849) | ? | (47,416,127,436) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | 10,377,793,629 | ? | 14,066,343,889 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | ? | 10,377,793,629 | ? | 14,066,343,889 |
| Proceeds from issuance of debentures | ? | 5,966,660,000 | ? | 8,075,977,975 |
| Proceeds from borrowings | ? | 50,709,738,711 | ? | 53,575,950,243 |
| Net amount of monetary movements for pledging loans | ? | 2,927,370,511 | ? | - |
| Proceeds from other financing activities | ? | 920,016,046 | ? | 6,000,000 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 70,901,578,897 | ? | 75,724,272,107 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| III. Cash flows from financing activities (continued): | ? | ? | ? | ? |
| Repayments of borrowings | ? | (38,547,043,449) | ? | (36,944,543,462) |
| Payment for dividends or interest | ? | (6,520,054,957) | ? | (6,746,163,635) |
| Including: Profits paid to non-controlling shareholders of subsidiaries | ? | (88,810,446) | ? | (10,911,242) |
| Net amount of monetary movements for pledging loans | ? | - | ? | (287,261,600) |
| Payment for other financing activities | ? | (2,016,750,534) | ? | (3,967,658,080) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (47,083,848,940) | ? | (47,945,626,777) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash inflow from financing activities | ? | 23,817,729,957 | ? | 27,778,645,330 |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | (1,868,121,768) | ? | 474,027,965 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase in cash and cash equivalents | V. 59(1) | 17,794,414,798 | ? | 6,919,625,053 |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 50,270,321,573 | ? | 43,350,696,520 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | V. 59(3) | 68,064,736,371 | ? | 50,270,321,573 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 3,125,955,887 | ? | 6,487,868,213 |
| Proceeds from other operating activities | ? | 77,211,104 | ? | 53,961,183 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 3,203,166,991 | ? | 6,541,829,396 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (952,364,398) | ? | (1,576,266,273) |
| Payment to and for employees | ? | (977,064,794) | ? | (942,542,615) |
| Payment of various taxes | ? | (513,631,723) | ? | (528,982,127) |
| Payment for other operating activities | ? | (644,659,863) | ? | (1,042,770,921) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (3,087,720,778) | ? | (4,090,561,936) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash inflow from operating activities | XV. 23(1) | 115,446,213 | ? | 2,451,267,460 |
| ? | ? | ? | ? | ? |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 931,412,417 | ? | 191,270,404 |
| Investment returns received | ? | 1,208,468,425 | ? | 1,006,558,146 |
| Net proceeds from disposal of fixed assets | ? | 303,987 | ? | 2,791,799 |
| Proceeds from other investing activities | ? | 470,877,944 | ? | 3,334,425,767 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 2,611,062,773 | ? | 4,535,046,116 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| II. Cash flows from investing activities (continued): | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (412,494,447) | ? | (1,158,649,934) |
| Payment for acquisition of investments | ? | (20,477,410,853) | ? | (15,438,773,685) |
| Payment for other investing activities | ? | (12,405,000,000) | ? | (5,866,921,400) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (33,294,905,300) | ? | (22,464,345,019) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash outflow from investing activities | ? | (30,683,842,527) | ? | (17,929,298,903) |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from issuance of debentures | ? | 5,966,660,000 | ? | 8,000,000,000 |
| Proceeds from borrowings | ? | 21,867,000,000 | ? | 19,341,142,361 |
| Proceeds from other financing activities | ? | 23,967,730,377 | ? | 14,869,430,596 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 51,801,390,377 | ? | 42,210,572,957 |
| ? | ? | ? | ? | ? |
| Repayments of borrowings | ? | (15,767,047,454) | ? | (17,830,000,000) |
| Payment for dividends and interest | ? | (2,254,787,893) | ? | (2,289,037,712) |
| Payment for other financing activities | ? | (2,398,651,425) | ? | (6,801,944,858) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (20,420,486,772) | ? | (26,920,982,570) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash inflow from financing activities | ? | 31,380,903,605 | ? | 15,289,590,387 |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | (133,212,123) | ? | 39,397,054 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net (decrease)/increase in cash and cash equivalents | XV. 23(1) | 679,295,168 | ? | (149,044,002) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 3,680,770,048 | ? | 3,829,814,050 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | XV. 23(2) | 4,360,065,216 | ? | 3,680,770,048 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
??
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 38,353,242,364 | ? | - | ? | (4,566,639) | ? | 1,516,139,709 | ? | 12,381,758,005 | ? | 95,058,129,055 | ? | 45,999,567,919 | ? | 141,057,696,974 |
| Add: Changes in accounting policies | III. 35 | - | ? | - | ? | - | ? | - | ? | - | ? | 533,906,114 | ? | (533,906,114) | ? | - | ? | - | ? | - |
| Adjusted balance at the beginning of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 38,353,242,364 | ? | - | ? | (4,566,639) | ? | 2,050,045,823 | ? | 11,847,851,891 | ? | 95,058,129,055 | ? | 45,999,567,919 | ? | 141,057,696,974 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | - | ? | - | ? | - | ? | - | ? | 177,438,725 | ? | - | ? | 5,035,627,952 | ? | 5,213,066,677 | ? | (518,850,605) | ? | 4,694,216,072 | |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 10,663,566,927 | ? | 10,663,566,927 |
| (2) Contribution by holders of other equity instruments | V. 38 | - | ? | 5,967,915,094 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 5,967,915,094 | ? | - | ? | 5,967,915,094 |
| (3) Repurchase of treasury shares | V. 40 | - | ? | - | ? | - | ? | 1,998,774,694 | ? | - | ? | - | ? | - | ? | (1,998,774,694) | ? | - | ? | (1,998,774,694) |
| (4) Business combinations involving entities not under common control | VI. 1 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 14,293,193,400 | ? | 14,293,193,400 |
| (5) Changes in shareholding ratio of subsidiaries | V. 39 | - | ? | - | ? | 76,020,559 | ? | - | ? | - | ? | - | ? | - | ? | 76,020,559 | ? | (76,020,559) | ? | - |
| (6) Equity-settled share-based payments | XI | - | ? | - | ? | (946,466,251) | ? | (962,476,186) | ? | - | ? | - | ? | - | ? | 16,009,935 | ? | 1,201,528 | ? | 17,211,463 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V. 42 | - | ? | - | ? | - | ? | - | ? | - | ? | 373,919,158 | ? | (373,919,158) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V. 38 | - | ? | 485,925,480 | ? | - | ? | - | ? | - | ? | - | ? | (485,925,480) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V. 38 | - | ? | (320,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (320,000,000) | ? | - | ? | (320,000,000) |
| (4) Distributions to shareholders | V. 43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (695,967,975) | ? | (695,967,975) | ? | (88,810,446) | ? | (784,778,421) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V. 41/43 | - | ? | - | ? | - | ? | - | ? | (195,070,158) | ? | 23,905,741 | ? | 171,164,417 | ? | - | ? | - | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Disposal of subsidiaries to equity method accounting | VI. 2 | - | ? | - | ? | (46,470,087) | ? | - | ? | - | ? | (3,454,053) | ? | 3,454,053 | ? | (46,470,087) | ? | (146,654,227) | ? | (193,124,314) |
| (2) Other movements in equity of associates | V. 11 | - | ? | - | ? | 7,011,400 | ? | - | ? | - | ? | - | ? | - | ? | 7,011,400 | ? | - | ? | 7,011,400 |
| (3) Others | - | ? | - | ? | (7,682,051) | ? | - | ? | - | ? | - | ? | 7,508,922 | ? | (173,129) | ? | (6,226,058) | ? | (6,399,187) | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 14,146,997,427 | ? | 37,435,655,934 | ? | 1,036,298,508 | ? | (22,198,072) | ? | 2,444,416,669 | ? | 15,509,794,622 | ? | 103,276,766,835 | ? | 70,120,967,879 | ? | 173,397,734,714 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | - | ? | 38,213,100,596 | ? | (291,856,968) | ? | 1,152,626,310 | ? | 11,977,119,533 | ? | 85,849,388,234 | ? | 34,499,426,498 | ? | 120,348,814,732 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | 236,859,881 | ? | - | ? | 1,918,643,871 | ? | 2,155,503,752 | ? | (2,403,299,502) | ? | (247,795,750) |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contributed by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 14,066,343,889 | ? | 14,066,343,889 |
| (2) Non-controlling interests’ decrease of capital | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (40,233,450) | ? | (40,233,450) |
| (3) Contribution by holders of other equity instruments | ? | - | ? | 7,957,047,264 | ? | - | ? | - | ? | - | ? | - | ? | 7,957,047,264 | ? | - | ? | 7,957,047,264 |
| (4) Business combinations involving entities not under common control | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 11,310,000 | ? | 11,310,000 |
| (5) Change in shareholding ratio of subsidiaries | ? | - | ? | - | ? | 123,068,274 | ? | - | ? | - | ? | - | ? | 123,068,274 | ? | (123,068,274) | ? | - |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V. 43 | - | ? | - | ? | - | ? | - | ? | 368,556,446 | ? | (368,556,446) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | ? | - | ? | 56,109,589 | ? | - | ? | - | ? | - | ? | (56,109,589) | ? | - | ? | - | ? | - |
| (3) Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,043,951,963) | ? | (1,043,951,963) | ? | (10,911,242) | ? | (1,054,863,205) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V. 43 | - | ? | - | ? | - | ? | 50,430,448 | ? | (5,043,047) | ? | (45,387,401) | ? | - | ? | - | ? | - |
| 5. Others | ? | - | ? | - | ? | 17,073,494 | ? | - | ? | - | ? | - | ? | 17,073,494 | ? | - | ? | 17,073,494 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 38,353,242,364 | ? | (4,566,639) | ? | 1,516,139,709 | ? | 12,381,758,005 | ? | 95,058,129,055 | ? | 45,999,567,919 | ? | 141,057,696,974 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2020(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 37,608,039,685 | ? | - | ? | 193,638,576 | ? | 1,516,139,709 | ? | 4,781,488,839 | ? | 86,910,862,425 |
| Add: Changes in accounting policies | III. 35 | - | ? | - | ? | - | ? | - | ? | - | ? | 533,906,114 | ? | 4,805,155,027 | ? | 5,339,061,141 |
| Adjusted balance at the beginning of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 37,608,039,685 | ? | - | ? | 193,638,576 | ? | 2,050,045,823 | ? | 9,586,643,866 | ? | 92,249,923,566 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | 136,131,965 | ? | - | ? | 3,739,191,584 | ? | 3,875,323,549 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by holders of other equity instruments | V. 38? | - | ? | 5,967,915,094 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 5,967,915,094 |
| (2) Repurchase of treasury shares | V. 40? | - | ? | - | ? | - | ? | 1,998,774,694 | ? | - | ? | - | ? | - | ? | (1,998,774,694) |
| (3) Equity-settled share-based payments | XI | - | ? | - | ? | (945,264,723) | ? | (962,476,186) | ? | - | ? | - | ? | - | ? | 17,211,463 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V. 42 | - | ? | - | ? | - | ? | - | ? | - | ? | 373,919,158 | ? | (373,919,158) | ? | - |
| (2) Accrued interest on holders of other equity instruments | V. 38 | - | ? | 485,925,480 | ? | - | ? | - | ? | - | ? | - | ? | (485,925,480) | ? | - |
| (3) Payment for interest on holders of other equity instruments | V. 38? | - | ? | (320,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (320,000,000) |
| (4) Distributions to shareholders | V. 43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (695,967,975) | ? | (695,967,975) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2020 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | XV. 14/15 | - | ? | - | ? | - | ? | - | ? | (239,057,408) | ? | 23,905,741 | ? | 215,151,667 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Disposal of subsidiaries to equity method accounting | VI. 2 | - | ? | - | ? | - | ? | - | ? | - | ? | (3,454,053) | ? | (31,086,473) | ? | (34,540,526) |
| (2) Other movements in equity of associates | XV. 5? | - | ? | - | ? | 33,304,404 | ? | - | ? | - | ? | - | ? | - | ? | 33,304,404 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 14,146,997,427 | ? | 36,696,079,366 | ? | 1,036,298,508 | ? | 90,713,133 | ? | 2,444,416,669 | ? | 11,954,088,031 | ? | 99,094,394,881 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 34,798,398,763 | ? | - | ? | 37,590,966,191 | ? | (246,193,654) | ? | 1,152,626,310 | ? | 2,609,929,782 | ? | 75,905,727,392 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | 389,401,782 | ? | - | ? | 3,685,564,456 | ? | 4,074,966,238 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Contribution by holders of other equity instruments | ? | - | ? | 7,957,047,264 | ? | - | ? | - | ? | - | ? | - | ? | 7,957,047,264 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | ? | - | ? | - | ? | - | ? | - | ? | 368,556,446 | ? | (368,556,446) | ? | - |
| (2) Accrued interest on holders of other equity instruments | ? | - | ? | 56,109,589 | ? | - | ? | - | ? | - | ? | (56,109,589) | ? | - |
| (3) Distributions to shareholders | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,043,951,963) | ? | (1,043,951,963) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2019 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | ? | - | ? | - | ? | - | ? | 50,430,448 | ? | (5,043,047) | ? | (45,387,401) | ? | - |
| 5. Others | ? | - | ? | - | ? | 17,073,494 | ? | - | ? | - | ? | - | ? | 17,073,494 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 34,798,398,763 | ? | 8,013,156,853 | ? | 37,608,039,685 | ? | 193,638,576 | ? | 1,516,139,709 | ? | 4,781,488,839 | ? | 86,910,862,425 |
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
?
| Chen Yanshun Chairman of the Board | Liu Xiaodong Chief Executive Officer | Sun Yun Chief Financial Officer | Yang Xiaoping The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 31 to 178 form part of these financial statements.
BOE Technology Group Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by shares established on 9 April 1993 inBeijing, with its head office located at Beijing. The parent of the Company and the Company’s ultimate holding company isBeijing Electronics Holdings Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main business segments: display business, smartsystems innovation business, smart medicine & engineering integration business, sensor and application solutions businessand Mini-LED business. For information about the subsidiaries of the Company, refer to Note VII.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
The Group has adopted the revised “Accounting Standard for Business Enterprises No. 22 – Financial Instruments:
Recognition and Measurement” and related new financial instruments standards, issued by the Ministry of Finance (“MOF”)of the People’s Republic of China in 2017, since 1 January 2019. In addition, it has adopted the revised “AccountingStandard for Business Enterprises No. 14 – Revenue” issued by the MOF in 2017 since 1 January 2020 (see Note III.35), andhas not adopted the revised “Accounting Standard for Business Enterprises No. 21 – Leases” issued by the MOF in 2018.
Certain overseas subsidiaries of the Group have adopted the revised “Accounting Standard for Business Enterprises No. 21 –Leases”, issued by the MOF in 2018. The adoption of the above standards does not have a material impact on the Group’sconsolidated financial position and consolidated financial performance.
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of Accounting Standards for BusinessEnterprises or referred to as China Accounting Standards (“CAS”) issued by the MOF. These financial statements presenttruly and completely the consolidated financial position and financial position of the Company as at 31 December 2020, andthe consolidated financial performance and financial performance and the consolidated cash flows and cash flows of theCompany for the year then ended.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of InformationDisclosures by Companies Issuing Securities, No. 15: General Requirements for Financial Reports” as revised by the ChinaSecurities Regulatory Commission (“CSRC”) in 2014.
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the ultimate realisation of cash or cashequivalents as a normal operating cycle. The operating cycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements are presented in Renminbi. Functionalcurrency is determined by the Company and its subsidiaries on the basis of the currency in which major income and costs aredenominated and settled. Some of the Company’s subsidiaries have functional currencies that are different from theCompany’s functional currency. Their financial statements have been translated based on the accounting policy set out inNote III.8.
5 Accounting treatments for business combinations involving entities under common control and not under common control
A transaction constitutes a business combination when the Group obtains control of one or more entities (or a group of assetsor net assets). Business combination is classified as either business combinations involving enterprises under common controlor business combinations not involving enterprises under common control.
For a transaction not involving enterprises under common control, the acquirer determines whether acquired set of assetsconstitute a business. The Group may elect to apply the simplified assessment method, the concentration test, to determinewhether an acquired set of assets is not a business. If the concentration test is met and the set of assets is determined not to bea business, no further assessment is needed. If the concentration test is not met, the Group shall perform the assessmentaccording to the guidance on the determination of a business.
When the set of assets the group acquired does not constitute a business, acquisition costs should be allocated to eachidentifiable assets and liabilities at their acquisition date fair values. It is not required to apply the accounting of businesscombination described as below.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in which all of the combiningentities are ultimately controlled by the same party or parties both before and after the business combination, and that controlis not transitory. The assets acquired and liabilities assumed are measured based on their carrying amounts in the consolidatedfinancial statements of the ultimate controlling party at the combination date. The difference between the carrying amount ofthe net assets acquired and the consideration paid for the combination (or the total par value of shares issued) is adjustedagainst share premium in the capital reserve, with any excess adjusted against retained earnings. Any costs directlyattributable to the combination are recognised in profit or loss when incurred. The combination date is the date on which onecombining entity obtains control of other combining entities.
(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 combiningentities are not ultimately controlled by the same party or parties both before and after the business combination. Where (1)the aggregate of the acquisition-date fair value of assets transferred (including the acquirer’s previously held equity interest inthe acquiree), liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of theacquiree, exceeds (2) the acquirer’s interest in the acquisition-date fair value of the acquiree’s identifiable net assets, thedifference is recognised as goodwill (see Note III.17). If (1) is less than (2), the difference is recognised in profit or loss forthe current period. The costs of issuing equity or debt securities as a part of the consideration for the acquisition are includedin the carrying amounts of these equity or debt securities upon initial recognition. Other acquisition-related costs areexpensed when incurred. Any difference between the fair value and the carrying amount of the assets transferred asconsideration is recognised in profit or loss. The acquiree’s identifiable asset, liabilities and contingent liabilities, if therecognition criteria are met, are recognised by the Group at their acquisition-date fair value. The acquisition date is the dateon which the acquirer obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in stages, the Group remeasures itspreviously-held equity interest in the acquiree to its acquisition-date fair value and recognises any resulting differencebetween the fair value and the carrying amount as investment income or other comprehensive income for the current period.In addition, any amount recognised in other comprehensive income and other changes in the owners’ equity under equityaccounting in prior reporting periods relating to the previously-held equity interest that may be reclassified to profit or lossare transferred to investment income at the date of acquisition (see Note III.11(2)(b)); Any previously-held equity interest thatis designated as equity investment at fair value through other comprehensive income, the other comprehensive incomerecognised in prior reporting periods is transferred to retained earnings and surplus reserve at the date of acquisition.
6 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated financial statements comprise theCompany and its subsidiaries. Control exists when the investor has all of following: power over the investee; exposure, orrights, to variable returns from its involvement with the investee and has the ability to affect those returns through its powerover the investee. When assessing whether the Group has power, only substantive rights (held by the Group and other parties)are considered. The financial position, financial performance and cash flows of subsidiaries are included in the consolidatedfinancial statements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet within shareholders’ equity. Net profit orloss attributable to non-controlling shareholders is presented separately in the consolidated income statement below the netprofit line item. Total comprehensive income attributable to non-controlling shareholders is presented separately in theconsolidated income statement below the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling shareholders of a subsidiary exceeds thenon-controlling shareholders’ share of the opening owners’ equity of the subsidiary, the excess is still allocated against thenon-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Companymakes necessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period oraccounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, are eliminated when preparing the consolidated financial statements. Unrealised losses resulting fromintra-group transactions are eliminated in the same way as unrealised gains, unless they represent impairment losses that arerecognised in the financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business combination involving entities undercommon control, the financial statements of the subsidiary are included in the consolidated financial statements based on thecarrying amounts of the assets and liabilities of the subsidiary in the financial statements of the ultimate controlling party as ifthe combination had occurred at the date that the ultimate controlling party first obtained control. The opening balances andthe comparative figures of the consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business combination involving entities not undercommon control, the identifiable assets and liabilities of the acquired subsidiaries are included in the scope of consolidationfrom the date that control commences, based on the fair value of those identifiable assets and liabilities at the acquisitiondate.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are recognised as investment incomefor the current period. The remaining equity interests is re-measured at its fair value at the date when control is lost, anyresulting gains or losses are also recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-term equity investmentin the subsidiary in stages, the following are considered to determine whether the Group should account for the multipletransactions as a bundled transaction:
- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;- one arrangement considered on its own is not economically justified, but it is economically justified when consideredtogether with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the transactions conducted before the loss ofcontrol of the subsidiary are accounted for in accordance with the accounting policy for partial disposal of equity investmentin subsidiaries where control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which eventually results in the loss of control in thesubsidiary, these multiple transactions are accounted for as a single transaction. In the consolidated financial statements, thedifference between the consideration received and the corresponding proportion of the subsidiary’s net assets (calculatedcontinuously from the acquisition date) in each transaction prior to the loss of control shall be recognised in othercomprehensive income and transferred to profit or loss when the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling shareholders or disposes of aportion of an interest in a subsidiary without a change in control, the difference between the proportion interests of thesubsidiary’s net assets being acquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjusted to retained earnings.
7 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, and short-term, highlyliquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changein value.
8 Foreign currency transactions 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 spotexchange rate at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbiat the spot exchange rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheetdate. The resulting exchange differences are generally recognised in profit or loss, unless they arise from the re-translation ofthe principal and interest of specific borrowings for the acquisition and construction of qualifying assets (see Note III.15).Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbi using the exchangerate at the transaction date. Non-monetary items that are measured at fair value in foreign currencies are translated using theexchange rate at the date the fair value is determined. The resulting exchange differences are recognised in profit or loss,except for the differences arising from the re-translation of equity investments at fair value through other comprehensiveincome, which are recognised in other comprehensive income.
In translating the financial statements of a foreign operation, assets and liabilities of foreign operation are translated toRenminbi at the spot exchange rate at the balance sheet date. Equity items, excluding retained earnings and the translationdifferences in other comprehensive income, are translated to Renminbi at the spot exchange rates at the transaction dates.Income and expenses of foreign operation are translated to Renminbi at the rates that approximate the spot exchange rates atthe transaction dates. The resulting translation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation are transferred to profit or loss in theperiod when the foreign operation is disposed.
9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity securities other than those classifiedas long-term equity investments (see Note III.11), receivables, payables, loans and borrowings, debentures payable and sharecapital.
(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 contractualprovisions of a financial instrument.
A financial asset or financial liability is measured initially at fair value. For financial assets and financial liabilities at fairvalue through profit or loss, any related directly attributable transaction costs are charged to profit or loss; for other categoriesof financial assets and financial liabilities, any related directly attributable transaction costs are included in their initial costs.A trade receivable, without significant financing component or practical expedient applied for one year or less contracts, isinitially measured at the transaction price in accordance with Note III.23.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a financial asset is managedand its contractual cash flow characteristics. On initial recognition, a financial asset is classified as measured atamortised cost, at fair value through other comprehensive 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 businessmodel for managing financial assets in which case all affected financial assets are reclassified on the first day of thefirst reporting period following the change 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 atFVTPL:
- 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 intereston the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as atFVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows andselling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and intereston the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to presentsubsequent changes in the investment’s fair value in other comprehensive income. This election is made on aninvestment-by-investment basis. The instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured atFVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets therequirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantlyreduces 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, theGroup’s business model determines whether cash flows will result from collecting contractual cash flows, sellingfinancial assets or both. The Group determines the business model for managing the financial assets according to thefacts and based on the specific business objective for managing the financial assets determined by the Group’s keymanagement personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers thecontractual terms of the instrument. For the purposes of this assessment, ‘principal’ is defined as the fair value of thefinancial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for thecredit risk associated with the principal amount outstanding during a particular period of time and for other basiclending risks and costs, as well as a profit margin. The Group also assesses whether the financial asset contains acontractual term that could change the timing or amount of contractual cash flows such that it would not meet thiscondition.
(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 ordividend income, are recognised 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 afinancial asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised inprofit or loss when the financial asset is derecognised, reclassified, through the amortisation process or in order torecognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interestmethod, impairment and foreign exchange gains and losses are recognised in profit or loss. Other net gains andlosses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in othercomprehensive 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. Othernet gains and losses are recognised in other comprehensive income. On derecognition, gains and lossesaccumulated in other comprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivative financial liability)or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and losses, including any interestexpense, are recognised 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, afinancial asset and a financial liability are offset and the net amount is presented in the balance sheet when both of thefollowing conditions are satisfied:
- 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 ofthe financial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks and
rewards of ownership of the financial asset, it does 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 twoamounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of derecognition;- the sum of the consideration received from the transfer and, when the transferred financial asset is a debt investment at
FVOCI, any cumulative gain or loss that has been recognised directly in other comprehensive income for the partderecognised.
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
Financial assets measured at fair value, including debt investments or equity securities at FVPL, equity securities designatedat FVOCI and 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 cashshortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows thatthe Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period (including extension options)over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected 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 thebalance sheet date (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 onthese financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjustedfor factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions atthe balance sheet date.
Except for trade receivables and contract assets, the Group measures loss allowance at an amount equal to 12-month ECL forthe 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 borrowerhas a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic andbusiness conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractualcash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Groupcompares the risk of default occurring on the financial instrument assessed at the balance sheet date with that assessed at thedate of initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and whenestimating ECL, the Group considers reasonable and supportable information that is relevant and available without unduecost or effort, including forward-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 on the 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 oneither an individual basis or a collective basis. When the assessment is performed on a collective basis, the financialinstruments are grouped based 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 atFVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact onthe estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includesthe following observable data:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, the Group having granted to theborrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of 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 initialrecognition. Any change in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Grouprecognises an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI, for which the loss allowance isrecognised 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 realisticprospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines thatthe debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject tothe write-off. However, financial assets that are written off could still be subject to enforcement activities in order to complywith the Group’s procedures for recovery of amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal of impairment in profit or lossin the period 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 deductedfrom shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. All expenditure relating to therepurchase is recorded in the cost of the treasury shares, with the transaction recording in the share register. Treasury sharesare excluded from profit 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 treasuryshares cancelled. Where the cost of the treasury shares cancelled exceeds the total par value, the excess is deducted fromcapital reserve (share premium), surplus reserve and retained earnings sequentially. If the cost of treasury shares cancelled isless than the total par value, the difference is credited to the capital reserve (share premium).
When treasury shares are disposed of, any excess of proceeds above cost is recognised in capital reserve (share premium);otherwise, the shortfall is deducted against capital reserve (share premium), surplus reserve and retained earningssequentially.
(8) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued or their components as financial assets, financialliabilities or equity instruments based on their contractual terms and their economic substance after considering the definitionof 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 amountreceived. Any distribution of dividends or interests during the instruments’ duration is treated as profit appropriation. Whenthe perpetual bonds are redeemed according to the contractual terms, the redemption price is charged to equity.
10 Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials includelow-value consumables, packaging materials and other materials, which can be used repeatedly but do not meet the definitionof fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and otherexpenditure incurred in bringing the inventories to their present location and condition. In addition to the purchase cost ofraw materials, work in progress and finished goods include direct labour costs and an appropriate allocation of productionoverheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are charged to profit or loss upon receipt. Theamortisation charge is included in the cost of the related assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion andthe estimated costs necessary to make the sale and relevant taxes. The net realisable value of materials held for use in theproduction is measured based on the net realisable value of the finished goods in which they will be incorporated. The netrealisable value of the inventory held to satisfy sales or service contracts is measured based on the contract price, to the extentof the quantities specified in sales contracts, and the excess portion of inventories is measured based on general selling prices.
Any excess of the cost over the net realisable value of each category of inventories is recognised as a provision for obsoleteinventories, and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
11 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination involving entitiesunder common control is the Company’s share of the carrying amount of the subsidiary’s equity in theconsolidated financial statements of the ultimate controlling party at the combination date. The differencebetween the initial investment cost and the carrying amount of the consideration given is adjusted to the sharepremium in the capital reserve, with any excess adjusted to retained earnings. For a long-term equity investmentin a subsidiary acquired through a business combination achieved in stages which do not form a bundledtransaction and involving entities under common control, the Company determines the initial cost of theinvestment in accordance with the above policies. The difference between this initial cost and the sum of thecarrying amount of previously-held investment and the consideration paid for the shares newly acquired isadjusted to capital premium in the capital reserve, with any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not involving entities under commoncontrol, the initial cost comprises the aggregate of the fair value of assets transferred, liabilities incurred orassumed, and equity securities issued by the Company, in exchange for control of the acquiree. For a long-termequity investment obtained through a business combination not involving entities under common control andachieved through multiple transactions in stages which do not form a bundled transaction, the initial costcomprises the carrying amount of the previously-held equity investment in the acquiree immediately before theacquisition date, and the additional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is initially recognised at theamount of cash paid if the Group acquires the investment by cash, or at the fair value of the equity securitiesissued if an investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiaries are accounted for usingthe cost method for subsequent measurement unless the investment is classified as held for sale (see Note III.29).Except for cash dividends or profit distributions declared but not yet distributed that have been included in the priceor consideration paid in obtaining the investments, the Company recognises its share of the cash dividends or profitdistributions declared by the investee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less accumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.19.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with thepolicies described in Note III.6.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control (see Note III.11(3)) andrights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note III.11(3)).
An investment in a joint venture or an associate is accounted for using the equity method for subsequentmeasurement, unless the investment is classified as held for sale (see Note III.29).
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the fair value of theinvestee’s identifiable net assets at the date of acquisition, the investment is initially recognised at cost. Where theinitial investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s share of the fair value of theinvestee’s identifiable net assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the investee’s profit or loss and othercomprehensive income as investment income or losses and other comprehensive income respectively, and adjuststhe carrying amount of the investment accordingly. Once the investee declares any cash dividends or profitdistributions, the carrying amount of the investment is reduced by the amount attributable to the Group. Changesin the Group’s share of the investee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “other changes in owners’ equity”), isrecognised directly in the Group’s equity, and the carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income and other changes in
owners’ equity, the Group recognises investment income and other comprehensive income after makingappropriate adjustments to align the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition. Unrealised profits and lossesresulting from transactions between the Group and its associates or joint ventures are eliminated to the extent ofthe Group’s interest in the associates or joint ventures. Unrealised losses resulting from transactions between theGroup and its associates or joint ventures are eliminated in the same way as unrealised gains but only to theextent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee after the carrying amount of thelong-term equity investment and any long-term interest that in substance forms part of the Group’s net investmentin the joint venture or associate is reduced to zero, except to the extent that the Group has an obligation to assumeadditional losses. If the joint venture or associate subsequently reports net profits, the Group resumes recognisingits share of those profits only after its share of the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note III.19.
(3) Criteria for determining the existence of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about therelevant activities (activities with significant impact on the returns of the arrangement) require the unanimous consent of theparties sharing control.
The following factors are usually considered when assessing whether the Group can exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related activities unilaterally;- Whether strategic decisions relating to the investee’s related activities require the unanimous consent of all participantparties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but does nothave control or joint control over those policies.
12 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both. Investmentproperties are accounted for using the cost model and stated in the balance sheet at cost less accumulated depreciation,amortisation and impairment losses. The cost of investment property, less its estimated residual value and accumulatedimpairment losses, is depreciated or amortised using the straight-line method over its estimated useful life, unless theinvestment property is classified as held for sale (see Note III.29). For the impairment of the investment properties, refer toNote III.19.
The estimated useful lives, residual value rates and depreciation rates of each class of investment properties are as follows:
| ? | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Land use rights | 32 - 50 years | ? | 0.0% | ? | 2.0% - 3.1% |
| Buildings | 20 - 40 years | ? | 0% - 10.0% | ? | 2.3% - 5.0% |
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, for use in supply of services, forrental or for administrative purposes with useful lives over one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directly attributable expenditure forbringing the asset to working condition for its intended use. The cost of self-constructed assets is measured in accordancewith the policy set out in Note III.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to the Group in a different pattern,thus necessitating use of different depreciation rates or methods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are recognised as assets when it isprobable that the economic benefits associated with the costs will flow to the Group, and the carrying amount of the replacedpart is derecognised. The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses, is depreciated using thestraight-line method over its estimated useful life, unless the fixed asset is classified as held for sale (see Note III.29).
The estimated useful lives, residual value rates and depreciation rates of each class of fixed assets are as follows:
| Class | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Plant & buildings | 10 - 50 years | ? | 3% - 10% | ? | 1.8% - 9.7% |
| Equipment | 2 - 25 years | ? | 0 - 10% | ? | 3.6% - 50% |
| Others | 2 - 10 years | ? | 0 - 10% | ? | 9.0% - 50% |
Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) For the recognition, measurement and depreciation of fixed assets acquired under finance leases, refer to Note III. 28(3).
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as the difference between thenet disposal proceeds and the carrying amount of the item, and are recognised in profit or loss on the date of retirement ordisposal.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised borrowing costs (see Note III.15),and any other costs directly attributable to bringing the asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed asset when it is ready for its intendeduse. No depreciation is provided against construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairment losses (see Note III.19).
15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction of a qualifying asset are capitalised as partof the cost of 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) tobe capitalised 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 tobe capitalised is the interest expense calculated using effective interest rates during the period less any interest incomeearned from depositing the borrowed funds or any investment income on the temporary investment of those funds beforebeing used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition and construction of a qualifying
asset, the amount of borrowing costs eligible for capitalisation is determined by applying a capitalisation rate to theweighted average of the excess amounts of cumulative expenditure on the asset over the above amounts of specificborrowings. The capitalisation rate is the weighted average of the interest rates applicable to the general-purposeborrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future cash flow through the expected lifeof the borrowing 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 borrowingdenominated in foreign currency are capitalised as part of the cost of the qualifying asset. The exchange differences related tothe principal and interest on foreign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation of borrowing costs to the date ofcessation of capitalisation, excluding any period over which capitalisation is suspended. Capitalisation of borrowing costscommences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities of acquisitionand construction that are necessary to prepare the asset for its intended use are in progress, and ceases when the assetsbecome ready for their intended use. When the parts of the qualifying assets acquired or constructed that are eligible forcapitalisation are completed separately, and each part is available for use in other parts of the construction process or can besold externally, and for the purpose of making the parts of the assets ready for use or necessary for the sales status, theacquisition or construction activities have been substantially completed, the Group ceases the capitalisation of the borrowingcosts related to the parts of the assets. Capitalisation of borrowing costs is suspended when the acquisition and constructionactivities are interrupted abnormally for a period of more than three months.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation (where the estimated useful life isfinite) and impairment losses (see Note III.19). For an intangible asset with finite useful life, its cost less estimated residualvalue and accumulated impairment losses is amortised using the straight-line method over its estimated useful life, unless theintangible asset is classified as held for sale (see Note III.29).
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. Anintangible asset is regarded as having an indefinite useful life and is not amortised when there is no foreseeable limit to theperiod over which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Groupdoes not have any intangible assets with indefinite useful lives.
Expenditure on an internal research and development project is classified into expenditure incurred during the research phaseand expenditure incurred during the development phase.
Expenditure during the research phase is expensed when incurred. Expenditure during the development phase is capitalised ifdevelopment costs can be measured reliably, the product or process is technically and commercially feasible, and the Groupintends to and has sufficient resources to complete the development. Capitalised development costs are stated in the balancesheet at cost less impairment losses (see Note III.19). Other development expenditure is recognised as an expense in theperiod in which it is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s interest in the fair value of theidentifiable net 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 Note III.19). Ondisposal of an asset group or a set of asset groups, any attributable goodwill is written off and included in the calculation ofthe profit or loss on disposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit period. The respectiveamortisation periods for such expenses are as follows:
?Item
| Item | Amortisation period (years) |
| ? | ? |
| Payment for public facilities construction and use | 10 - 15 years |
| Cost of operating lease assets improvement | 2 - 10 years |
| Others | 2 - 10 years |
19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on internal and external sourcesof information to determine whether there is any indication of impairment:
- fixed assets- construction in progress- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates the recoverableamounts of goodwill at each year-end, irrespective of whether there is any indication of impairment. Goodwill is allocated toeach asset group or set of asset groups, which is expected to benefit from the synergies of the combination for the purpose ofimpairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair value (see Note III.20) lesscosts to sell and its present value of expected future cash flows.
An asset group is composed of assets directly related to cash generation and is the smallest identifiable group of assets thatgenerates cash inflows that are largely independent of the cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the future cash flows, estimated tobe derived from continuing use of the asset and from its ultimate disposal, to their present value using an appropriate pre-taxdiscount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than its carrying amount. Aprovision for impairment of the asset is recognised accordingly. Impairment losses related to an asset group or a set of assetgroups are allocated first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups,and then to reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.However, such allocation would not reduce the carrying amount of an asset below the highest of its fair value less costs tosell (if measurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
20 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 betweenmarket participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular asset or liability (including thecondition and location of the asset and restrictions, if any, on the sale or use of the asset) that market participants wouldconsider when pricing the asset or liability at the measurement date, and uses valuation techniques that are appropriate in thecircumstances and for which sufficient data and other information are available to measure fair value. Valuation techniquesmainly include the market approach, the income approach and the cost approach.
21 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a present obligation that can beestimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation.Where the effect of the time value of money is material, provisions are determined by discounting the expected future cashflows. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are taken into account as awhole in reaching the best estimate. Where there is a continuous range of possible outcomes for the expenditure required, andeach possible outcome in that range is as likely as any other, the best estimate is the mid-point of that range. In other cases,the best estimate is determined according to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likely outcome.
- Where the contingency involves a large population of items, the best estimate is determined by weighting all possible
outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and adjusts the carrying amount to thecurrent best estimate.
22 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for servicesreceived from the employees, the payment is measured at the fair value of the equityinstruments granted to the employees at the grant date. If the equity instruments granteddo not vest until the completion of services for a period, or until the achievement of aspecified performance condition, the Group recognises an amount at each balance sheetdate during the vesting period based on the best estimate of the number of equityinstruments expected to vest according to the newly obtained subsequent information ofthe changes of the number of the employees expected to vest the equity instruments. TheGroup measures the services received at the grant-date fair value of the equity instrumentsand recognises the costs or expenses as the services are received, with a correspondingincrease in capital reserve.
23 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s ordinary activities when the inflowsresult in increase in shareholders’ equity, other than increase relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in the contract bytransferring the control over relevant goods or services to the customers.
Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contractinception of the distinct good or service underlying each performance obligation in the contract and allocates the transactionprice in proportion to those stand-alone selling prices. The Group recognises as revenue the amount of the transaction pricethat is allocated to each performance obligation. The stand-alone selling price is the price at which the Group would sell apromised good or service separately to a customer. If a stand-alone selling price is not directly observable, the Groupconsiders all information that is reasonably available to the entity, maximises the use of observable inputs to estimate thestand-alone selling price.
For the contract which the Group grants a customer the option to acquire additional goods or services (such as, loyalty points,discount coupons for future purchase, etc.,), the Group assesses whether the option provides a material right to the customer.If the option provides a material right, the Group recognises the option as a performance obligation, and recognises revenuewhen those future goods or services are transferred or when the option expires. If the stand-alone selling price for acustomer’s option to acquire additional goods or services is not directly observable, the Group estimates it, taking intoaccount all relevant information, including the difference in the discount that the customer would receive when exercising theoption or without exercising the option, and the likelihood that the option will be exercised.
For the contract with a warranty, the Group analyses the nature of the warranty provided, if the warranty provides thecustomer with a distinct service in addition to the assurance that the product complies with agreed-upon specifications, theGroup recognises for the promised warranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS No.13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferringpromised goods or services to a customer, excluding amounts collected on behalf of third parties. The Group recognises thetransaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Todetermine the transaction price for contracts in which a customer promises consideration in a form other than cash, the Groupmeasures the non-cash consideration at fair value. If the Group cannot reasonably estimate the fair value of the non-cashconsideration, the Group measures the consideration indirectly by reference to the stand-alone selling price of the goods orservices promised to the customer in exchange for the consideration. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the price that a customer would have paidfor the promised goods or services if the customer had paid cash for those goods or services when (or as) they transfer to thecustomer. The difference between the amount of promised consideration and the cash selling price is amortised using aneffective interest method over the contract term. The Group does not adjust the consideration for any effects of a significantfinancing component if it expects, at contract inception, that the period between when the Group transfers a promised good orservice 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 performanceobligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Groupperforms;- the customer can control the asset created or enhanced during the Group’s performance; or- the Group’s performance does not create an asset with an alternative use to it and the Group has an enforceable right to
payment for performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the 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 obtainscontrol of the specified good or service before that good or service is transferred to acustomer. The Group is a principal if it controls the specified good or service before that goodor service is transferred to a customer, and recognises revenue in the gross amount ofconsideration to which it has received (or receivable). Otherwise, the Group is an agent, andrecognises revenue in the amount of any fee or commission to which it expects to be entitled.The fee or commission is the net amount of consideration that the Group retains after payingthe other party the consideration, or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when the Groupobtains control of that product, in the amount of consideration to which the Group expects tobe entitled in exchange for the product transferred (i.e. excluding the amount of whichexpected to be returned), and recognises a refund liability for the products expected to bereturned. Meanwhile, an asset is recognised in the amount of carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products), and carry forward to cost in the amountof carrying amount of the transferred products less the above costs. At the end of eachreporting period, the Group updates its assessment of future sales return. If there is anychange, it is accounted for as a change in accounting estimate.
The Group determines whether the licence transfers to a customer either at a point in time orover time. If all of the following criteria are met, revenue is recognised for performanceobligations satisfied over time. Otherwise, revenue is recognised for performance obligationssatisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertakeactivities that significantly affect the intellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negativeeffects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as thoseactivities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence of intellectual property only when (or as) the later of the followingevents occurs:
- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied).
For a change in the scope or price of a contract that is approved by the parties to the contract,the Group accounts for the contract modification according to the following situations:
- The addition of promised goods or services are distinct and the price of the contractincreases by an amount of consideration reflects stand-alone selling prices of theadditional promised goods or services, the Group shall account for a contract modificationas a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on the date of the contract modification, the Group accountsfor the contract modification as if it were a termination of the existing contract and thecreation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct fromthe goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a part of the existing contract. The effectthat the contract modification has on the revenue is recognised as an adjustment torevenue in the reporting period.
A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.9(6)). Accounts receivable is the Group’s right to consideration that isunconditional (only the passage of time is required). A contract liability is the Group’sobligation to transfer goods or services to a customer for which the Group has receivedconsideration (or an amount of consideration is due) from the customer.
The following is the description of accounting policies regarding revenue from the Group’sprincipal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually containvarious trading terms. Depending on the trading terms, customers obtain control of thegoods when the goods are delivered and received, or when they are received by thecarrier. 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 itis highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur. Therefore, the amount of revenue recognised is adjusted forthe amount expected to be returned, which are estimated based on the historical data.The Group recognises a refund liability based on the amount expected to be returned.An asset is initially measured by reference to the former carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value to the Group of returned products). At each balancesheet date, the Group updates the measurement of the refund liability for changes inexpectations about the amount of funds. The above asset and liability are adjustedaccordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period oftime according to the progress of the performance as the customer simultaneouslyreceives and consumes the benefits provided by the Group’s performance as the Groupperforms. Otherwise, for performance obligation satisfied at a point in time, the Grouprecognises revenue at the point in time at which the customer obtains control of relevantservices.
24 Contract costs
Contract costs are either the incremental costs of obtaining a contract with a customer or thecosts to fulfil a contract with a customer.
Incremental costs of obtaining a contract are those costs that the Group incurs to obtain acontract with a customer that it would not have incurred if the contract had not been obtained.The Group recognises as an asset the incremental costs of obtaining a contract with acustomer if it expects to recover those costs. Other costs of obtaining a contract are expensedwhen incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipated
contract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or services towhich the assets relate and recognised in profit or loss for the current period.
The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for the
goods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet beenrecognised as expenses.
25 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance, work injury insurance,maternity insurance and housing fund, measured at the amount incurred or accrued at the applicable benchmarks and rates,are recognised as a liability as the employee provides services, with a corresponding charge to profit or loss or included in thecost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Group participated in a definedcontribution basic pension insurance plan and unemployment insurance plan in the social insurance system established andmanaged by government organisations, and annuity plan established by the Group in compliance with the national policy ofthe corporation annuity. The Group makes contributions to basic pension insurance plan and unemployment insurance basedon the applicable benchmarks and rates stipulated by the government. Annuity is accrued based on the gross salaries of theemployees. Basic pension insurance contributions payable are recognised as a liability as the employee provides services,with a corresponding charge to profit or loss or included in the cost of assets where appropriate.
(3) Post-employment benefits - defined benefit plans
During the reporting period, the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment contracts expire, or providescompensation under an offer to encourage employees to accept voluntary redundancy, a provision is recognised with acorresponding expense in profit or loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of an employee termination plan
or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of termination benefits and has raised a
valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing
its main features to those affected by it.
26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the government to the Groupexcept for capital 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 willcomply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If agovernment grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group qualifying for them shouldpurchase, construct or otherwise acquire long-term assets. Government grants related to income are grants other than thoserelated to assets.
Those related to daily activities of the Company are included in other income or used to write off related cost based on thenature of economic businesses, or included in non-operating income and expense in respect of those not related to dailyactivities of the Company.
With respect to the government grants related to assets, if the Group first obtains government grants related to assets and thenrecognises the long-term assets purchased and constructed, deferred income is included in profit and loss based on areasonable and systematic approach by stages when related assets are initially depreciated or amortised; or the deferredincome is written off against the carrying amount of the asset when the asset becomes ready for its intended status or intendeduse. If the Group obtains government grants related to the assets after relevant long-term assets are put into use, deferredincome is included in profit and loss based on a reasonable and systematic approach by stages within the remaining usefullife of relevant assets, or the deferred income is written off against the carrying amount of relevant asset when the grants areobtained; the assets shall be depreciated or amortised based on the carrying amount after being offset and the remaininguseful 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 thefuture period, it shall be recognised as deferred income, and included in profit and loss or used to offset related costs;otherwise it shall be directly included in profit and loss or used to offset related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriatedto the lending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loanamount is used as the entry value and relevant borrowing costs are calculated on the basis of the loan principal and thepreferential interest rate. If the interest subsidy is directly appropriated to the Group, relevant borrowing costs shall be offsetby corresponding interest subsidy. If borrowing costs are capitalised as part of the cost of the asset (see Note III.15), theinterest subsidy shall be used to offset relevant asset costs.
27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to a business combination oritems recognised directly in equity (including other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for the year, plus anyadjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a legally enforceable right to setthem off and also intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences respectively, being thedifferences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases, whichinclude the deductible losses and tax credits carried forward to subsequent periods. Deferred tax assets are recognised to theextent that it is probable that future taxable profits will be available against which deductible temporary differences can beutilised.
Deferred tax is not recognised for the temporary differences arising from the initial recognition of assets or liabilities in atransaction that is not a business combination and that affects neither accounting profit nor taxable profit (or deductible loss).Deferred tax is not recognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from the expectedmanner of recovery or settlement of the carrying amounts of the assets and liabilities, using tax rates enacted at the balancesheet date that are expected to be applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the extent that it is nolonger probable that the related tax benefits will be utilised. Such reduction is reversed to the extent that it becomes probablethat sufficient taxable profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current tax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and current tax assets on a net basis, orto realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts ofdeferred tax liabilities or deferred tax assets are expected to be settled or recovered.
28 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A lease is classified as a finance lease if it transferssubstantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether the legal title tothe asset is eventually transferred. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of another related asset or as expenses on astraight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see Note III.12), are depreciated inaccordance with the Group’s depreciation policies described in Note III.13(2). Impairment losses are recognised inaccordance with the accounting policy described in Note III.19. Income derived from operating leases is recognised in profitor loss using the straight-line method over the lease term. If initial direct costs incurred in respect of the assets leased out arematerial, the costs are initially capitalised and subsequently amortised in profit or loss over the lease term on the same basisas the lease income. Otherwise, the costs are charged to profit or loss immediately.
(3) Assets acquired under finance leases
At the commencement of the lease term, the minimum lease payments are recorded as long-term payables. The differencebetween the carrying amount of the leased assets and the minimum lease payments is accounted for as unrecognised financecharges. Initial direct costs attributable to a finance lease that are incurred by the Group are added to the carrying amount ofthe leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting policies describedin Notes III.13(2) and III.19, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leasedasset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease termand its estimated useful life.
Unrecognised finance charges arising from a finance lease are recognised using an effective interest method over the leaseterm. The amortisation is accounted for in accordance with the principles of borrowing costs (see Note III.15).
At the balance sheet date, the long-term payables arising from finance leases, net of the unrecognised finance charges, areanalysed and separately presented as long-term payables or non-current liabilities due within one year.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying amount of a non-current asset ordisposal group 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 transactionand liabilities directly associated with those assets that will be transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
- According to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset
or disposal group must be available for immediate sale in their present condition subject to terms that are usual andcustomary for sales of such assets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has obtained a firm purchasecommitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount and fair value (see Note III.20)less costs to sell (except financial assets (see Note III.9) and deferred tax assets (see Note III.27)) initially and subsequently.Any excess of the carrying amount over the fair value (see Note III.20) less costs to sell is recognised as an impairment lossin profit or loss.
30 Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensive income) the gain or loss on thehedging instrument 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 beinghedged and can be reliably measured. The Group’s hedged items include fixed-rate borrowings that expose the Group to therisk of changes in fair value, a firm commitment that is settled with a fixed amount of foreign currency and that exposes theGroup to foreign currency risk.
A hedging instrument is a designated financial instrument whose changes in fair value or cash flows are expected to offsetchanges in the fair value or cash flows of the hedged item. For a hedge of foreign currency risk, the foreign currency riskcomponent of a non-derivative financial asset or non-derivative financial liability may also be designated as a hedginginstrument provided that it is not an investment in an equity instrument for which an entity has elected to present changes inthe fair value in other comprehensive income.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis, whether the hedging relationshipmeets the hedge effectiveness requirements. A hedging relationship is regarded as having met the hedge effectivenessrequirements if all of the following 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 actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of thehedged item.
When a hedging relationship no longer meets the hedge effectiveness requirements due to the hedge ratio, but the riskmanagement objective of the designated hedging relationship remains unchanged, the Group rebalances the hedgingrelationship. Rebalancing refers to the adjustments made to the designated quantities of the hedged item or the hedginginstrument of an already existing hedging relationship for the purpose of maintaining a hedge ratio that complies with thehedge effectiveness requirements.
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 creditrisk starts to dominate the value changes that result from that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of the gain or loss on a hedginginstrument that is determined to be an effective hedge is recognised in other comprehensive income as a cash flow hedgereserve. The amount of the cash 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 orloss.
If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or ahedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fairvalue hedge accounting is applied, the Group removes that amount from the cash flow hedge reserve and includes it in theinitial cost or other carrying 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 orloss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affectprofit or loss.
When the Group discontinues hedge accounting for a cash flow hedge, the amount of the accumulated cash flow hedgereserve recognised 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
accounted for 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 hedge reserve to profit or loss as a reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be approved after the balance sheetdate, are not recognised as a liability at the balance sheet date but are disclosed in the notes separately.
32 Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or wheretwo or more parties are subject to common control or joint control from another party, they are considered to be relatedparties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control onlyfrom the State and that have no other related party relationships are not regarded as related parties.
In addition to the related parties stated above, the Company determines related parties based on the disclosure requirementsof Administrative Procedures on the Information Disclosures of Listed Companies issued by the CSRC.
33 Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the Group’sinternal organisation, management requirements and internal reporting system after taking the materiality principle intoaccount. Two or more operating segments may be aggregated into a single operating segment if the segments have similareconomic characteristics and are same or similar in respect of the nature of products and services, the nature of productionprocesses, the types or classes of customers for the products and services, the methods used to distribute the products orprovide the services, and the nature of the regulatory environment. Reportable segments are identified based on operatingsegments taking into account of materiality principle.
Inter-segment revenues are measured on the basis of the actual transaction prices for such transactions for segment reporting.Segment accounting policies are consistent with those for the consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and assumptions that affect theapplication of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results maydiffer from these estimates. Estimates as well as underlying assumptions and uncertainties involved are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in anyfuture periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets such as fixed assets and intangible assets(see Notes III.13 and 16) and provision for impairment of various types of assets (see Notes V.4, 6, 7, 8, 11, 14, 15, 16 and 17and Notes XV.2, 3, 5 and 6). Other significant accounting estimates are as follows:
(i) Note V.19: – Recognition of deferred tax assets;(ii) Note V.30 – Warranty provisions;(iii) Note IX – Valuation of fair value of financial instruments; and(iv) Note XI: – Share-based payments.
Significant judgements made by the Group in the application of accounting policies are as follows:
(i) Note VII.1(1) –Significant judgements and assumptions in determining control over other entity.
35 Changes in accounting policies
(1) Description and reasons of changes in accounting policies
In 2020, the Group has adopted the following accounting standards issued by the MOF recently:
- CAS No.14 - Revenue (Revised) (“new revenue standard”)- CAS Bulletin No.13 (Caikuai [2019] No.21)- The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai [2020] No.10)
(a) New revenue standard
New revenue standard replaces CAS No.14 – Revenue and CAS No.15 - ConstructionContracts issued by the MOF in 2006 (“previous revenue standard”).
Under previous revenue standard, the Group recognised revenue when the risks andrewards had passed to the customers. The Group's revenue from sales of goods wasrecognised when the following conditions were met: the significant risks and rewards ofownership of the goods had been transferred to the customer, the amount of revenueand related costs could be reliably measured, the relevant economic benefits wouldprobably flow to the Group and the Group retained neither continuing managerialinvolvement to the degree usually associated with ownership nor effective control overthe goods sold. Revenue from rendering of services and revenue from constructioncontracts were recognised by reference to the stage of completion of the transaction atthe balance sheet date.
Under new revenue standard, revenue is recognised when the customer obtains controlof the promised goods or services in the contract:
- Revenue is recognised when the Group satisfies the performance obligation in thecontract by transferring the control over relevant goods or services to the customers.The Group satisfies a performance obligation over time if certain criteria is met; orotherwise, a performance obligation is satisfied at a point in time. Where a contracthas two or more performance obligations, the Group determines the stand-aloneselling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price inproportion to those stand-alone selling prices. The Group recognises as revenue theamount of the transaction price that is allocated to each performance obligation. Thetransaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer,excluding amounts collected on behalf of third parties. The Group recognises thetransaction price only to the extent that it is highly probable that a significant reversalin the amount of cumulative revenue recognised will not occur when the uncertaintyassociated with the variable consideration is subsequently resolved. Where thecontract contains a significant financing component, the Group recognises thetransaction price at an amount that reflects the price that a customer would have paidfor the promised goods or services if the customer had paid cash for those goods orservices when (or as) they transfer to the customer. The difference between theamount of promised consideration and the cash selling price is amortised using aneffective interest method over the contract term.
- The Group have adjusted the relevant accounting policies in accordance with thespecific provisions on specific matters or transactions under new revenue standard,such as contract costs, warranties, principal versus agent considerations, sale with aright of return, customer options for additional goods or services, licensing,repurchase agreements, advance receipts, non-refundable upfront fee, etc.
- Under new revenue standard, the Group presents a contract asset or a contractliability in the balance sheet based on the relationship between the Group'sperformance and the customer's payment. At the same time, the Group providesmore disclosures on revenue and related information based on the disclosurerequirements under new revenue standard, such as relevant accounting policies,significant judgements (measurement of variable consideration, the method used toallocate the transaction price to each performance obligation, the assumption usedfor estimating stand-alone selling price of each performance obligation, etc.),information of contracts with customers (revenue recognised in current period,contract balance, performance obligation, etc.), information of assets related tocontract costs, etc.
The effect of adopting new revenue standard on the Group’s accounting policies are as follows:
- When there is a third party participating in sales of goods to customers, underprevious revenue standard, the Group determines whether it is a principal or anagent by comprehensively taking into account whether it has pricing rights andassumes any inventory risk and credit risk and other factors. Under new revenuestandard, the Group determines according to the following conditions: 1) the entitytransfers to the customer after having obtained the control of the goods or otherassets from a third party; 2) the entity can engage a third party to provide services tothe customer on its behalf; 3) after obtaining control of the goods from a third party,the entity integrates the goods with other goods by providing a significant service toform a compound output to transfer to the customer.
- The transportation costs related to sales contract assumed by the Group arepresented as selling expenses under previous revenue standard. According to theaccounting requirements of new revenue standard, transportation is a necessaryactivity when the Group is fulfilling the sales contract, and therefore the related costsare the costs to fulfil a contract, which will be adjusted to be presented underoperating costs after the adoption of new revenue standard.
- For advance from customers for transfer of goods (or rendering of services), under
previous revenue standard, the Group will include it in “Advance from customers”.Under new revenue standard, the Group presents its obligation to transfer goods forwhich the Group has received consideration from the customer in the balance sheetas a “contract liability” since 1 January 2020, depending on the relationship betweenthe entity's performance and the customer's payment. Comparative figures are notrestated.
- For the transfer of products with a right of return, under previous revenue standardthe Group made a reasonable estimation of the return based on experience, thenadjusted revenue and corresponding cost for the amount expected to be returnedand recognised the difference as a liability. Under new revenue standard, the Grouprecognises a refund liability based on the amount expected to be returned. Theproduct expected to be returned is initially recognised as an asset for the right torecover returned goods.
- For the revenue from granting of a licence of intellectual property to subsidiaries of
the Group, under previous revenue standard, the company recognises revenueaccording to the period and method of charging as stipulated in the relevantcontracts or agreements. Under new revenue standard, if all of the following criteriaare met, revenue is recognised for performance obligations satisfied over time.Otherwise, revenue is recognised for performance obligations satisfied at a point intime: 1) the contract requires, or the customer reasonably expects, that the Groupwill undertake activities that significantly affect the intellectual property to which thecustomer has rights; 2) the rights granted by the licence directly expose the customerto any positive or negative effects of the Group’s activities; and 3) those activities donot result in the transfer of a good or a service to the customer as those activitiesoccur. When the Company grants a licence of intellectual property to subsidiaries,the revenue shall be recognised at a point in time.
The Group has recognised the cumulative effect of initial application as an adjustment to the opening balance ofretained earnings and the amount of other relevant items in the financial statements at 1 January 2020, andcomparative information has not been restated. The Group only adjusted the cumulative effect of contracts that werenot completed before 1 January 2020 to the opening balance of retained earnings and the amount of other relevantitems in the financial statements at 1 January 2020.
The following tables provide information of the impact on each of the line items in the consolidated income statementand company income statement, and the consolidated balance sheet and company balance sheet, as well as theconsolidated cash flow statement and company cash flow statement for the year ended 31 December 2020 had theprevious policies still been applied in the year.
- The effects on each of the line items in the consolidated income statement andcompany income statement for the year ended 31 December 2020 are analysed asfollows:
| ? | Decrease in the line items for the year as a result of applying new accounting policies | ||
| ? | The Group | ? | The Company |
| ? | ? | ? | ? |
| Operating income from principal activities | (9,117,107,992) | ? | (1,200,000,000) |
| Operating cost of principal activities | (8,446,207,600) | ? | - |
| Selling and distribution expenses | (670,900,392) | ? | - |
| Profit before income tax | - | (1,200,000,000) | |
| Income tax expenses | - | (180,000,000) | |
| Net profit for the year | - | (1,020,000,000) | |
- The effects on each of the line items in the consolidated balance sheet and companybalance sheet as at 31 December 2020 are analysed as follows:
| ? | Decrease/(increase) in the line items as a result of applying new accounting policies | ||
| ? | The Group | ? | The Company |
| ? | ? | ? | ? |
| Assets | ? | ? | ? |
| Accounts receivable | (49,897,395) | ? | 1,723,155,949 |
| Contract assets | 49,897,395 | ? | - |
| Other current assets | 131,986,424 | ? | - |
| Deferred tax assets | - | (315,937,260) | |
| Other non-current assets | - | 2,250,000,000 | |
| ? | ? | ? | ? |
| Liabilities | ? | ? | ? |
| Advance from customers | (3,719,511,537) | ? | (1,108,092,452) |
| Contract liabilities | 3,440,720,535 | ? | - |
| Other current liabilities | 410,777,426 | ? | - |
| Deferred tax liabilities | - | (446,250,000) | |
| ? | ? | ? | ? |
| Shareholders’ equity | |||
| Surplus reserve | - | 431,906,114 | |
| Retained earnings | - | 3,887,155,027 | |
The impact of the adoption of new revenue standard on each of the line items in the consolidated balance sheet andcompany balance sheet as at 1 January 2020 are analysed as follows:
??
| ? | The Group | ||||
| ? | 31 December 2019 | ? | 1 January 2020 | ? | Adjustments |
| Assets | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 56,972,723,239 | ? | 56,972,723,239 | ? | - |
| Financial assets held for trading | 5,809,184,994 | ? | 5,809,184,994 | ? | - |
| Bills receivable | 331,145,492 | ? | 331,145,492 | ? | - |
| Accounts receivable | 18,135,687,806 | ? | 18,107,976,861 | ? | (27,710,945) |
| Contract assets | - | ? | 27,710,945 | ? | 27,710,945 |
| Prepayments | 626,985,706 | ? | 626,985,706 | ? | - |
| Other receivables | 706,171,112 | ? | 706,171,112 | ? | - |
| Inventories | 12,396,194,762 | ? | 12,396,194,762 | ? | - |
| Assets held for sale | 173,910,820 | ? | 173,910,820 | ? | - |
| Other current assets | 9,296,637,067 | ? | 9,375,901,777 | ? | 79,264,710 |
| ? | ? | ? | ? | ? | ? |
| Total current assets | 104,448,640,998 | ? | 104,527,905,708 | ? | 79,264,710 |
| ? | ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Long-term equity investments | 2,718,037,934 | ? | 2,718,037,934 | ? | - |
| Investments in other equity instruments | 632,076,647 | ? | 632,076,647 | ? | - |
| Investment properties | 1,241,242,850 | ? | 1,241,242,850 | ? | - |
| Fixed assets | 125,786,241,938 | ? | 125,786,241,938 | ? | - |
| Construction in progress | 87,376,782,527 | ? | 87,376,782,527 | ? | - |
| Intangible assets | 7,416,416,829 | ? | 7,416,416,829 | ? | - |
| Goodwill | 707,603,856 | ? | 707,603,856 | ? | - |
| Long-term deferred expenses | 345,424,409 | ? | 345,424,409 | ? | - |
| Deferred tax assets | 248,153,761 | ? | 248,153,761 | ? | - |
| Other non-current assets | 9,491,581,559 | ? | 9,491,581,559 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total non-current assets | 235,963,562,310 | ? | 235,963,562,310 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total assets | 340,412,203,308 | ? | 340,491,468,018 | ? | 79,264,710 |
| ? | The Group | ||||
| ? | 31 December 2019 | ? | 1 January 2020 | ? | Adjustments |
| Liabilities and shareholders’ equity | ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? | ? |
| Short-term loans | 6,366,717,121 | ? | 6,366,717,121 | ? | - |
| Bills payable | 2,028,917,980 | ? | 2,028,917,980 | ? | - |
| Accounts payable | 21,183,567,553 | ? | 21,183,567,553 | ? | - |
| Advance payments received | 1,260,732,785 | ? | 123,152,835 | ? | (1,137,579,950) |
| Contract liabilities | - | ? | 1,083,074,827 | ? | 1,083,074,827 |
| Employee benefits payable | 2,373,745,454 | ? | 2,373,745,454 | ? | - |
| Taxes payable | 730,996,129 | ? | 730,996,129 | ? | - |
| Other payables | 24,570,589,610 | ? | 24,570,589,610 | ? | - |
| Non-current liabilities due within one year | 18,849,281,019 | ? | 18,849,281,019 | ? | - |
| Other current liabilities | 1,013,738,515 | ? | 1,147,508,348 | ? | 133,769,833 |
| ? | ? | ? | ? | ? | ? |
| Total current liabilities | 78,378,286,166 | ? | 78,457,550,876 | ? | 79,264,710 |
| ? | ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? | ? |
| Long-term loans | 107,730,595,615 | ? | 107,730,595,615 | ? | - |
| Debentures payable | 387,878,384 | ? | 387,878,384 | ? | - |
| Long-term payables | 984,520,824 | ? | 984,520,824 | ? | - |
| Provisions | 16,457,010 | ? | 16,457,010 | ? | - |
| Deferred income | 2,204,400,566 | ? | 2,204,400,566 | ? | - |
| Deferred tax liabilities | 1,451,825,357 | ? | 1,451,825,357 | ? | - |
| Other non-current liabilities | 8,200,542,412 | ? | 8,200,542,412 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total non-current liabilities | 120,976,220,168 | ? | 120,976,220,168 | ? | - |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Total liabilities | 199,354,506,334 | ? | 199,433,771,044 | ? | 79,264,710 |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | |
| Shareholders’ equity | ? | ? | ? | ? | ? |
| Share capital | 34,798,398,763 | ? | 34,798,398,763 | ? | - |
| Other equity instruments | 8,013,156,853 | ? | 8,013,156,853 | ? | - |
| Capital reserve | 38,353,242,364 | ? | 38,353,242,364 | ? | - |
| Other comprehensive income | (4,566,639) | ? | (4,566,639) | ? | - |
| Surplus reserve | 1,516,139,709 | ? | 2,050,045,823 | ? | 533,906,114 |
| Retained earnings | 12,381,758,005 | ? | 11,847,851,891 | ? | (533,906,114) |
| ? | ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | 95,058,129,055 | ? | 95,058,129,055 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Non-controlling interests | 45,999,567,919 | ? | 45,999,567,919 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total shareholders’ equity | 141,057,696,974 | ? | 141,057,696,974 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | 340,412,203,308 | ? | 340,491,468,018 | ? | 79,264,710 |
| ? | ||||||
| ? | The Company | |||||
| ? | 31 December 2019 | ? | 1 January 2020 | ? | Adjustments | |
| Assets | ? | ? | ? | ? | ? | |
| ? | ? | ? | ? | ? | ? | |
| Current assets | ? | ? | ? | ? | ? | |
| Cash at bank and on hand | 3,680,770,048 | ? | 3,680,770,048 | ? | - | |
| Bills receivable | 84,230,531 | ? | 84,230,531 | ? | - | |
| Accounts receivable | 646,533,115 | ? | 1,698,906,221 | ? | 1,052,373,106 | |
| Prepayments | 77,682,682 | ? | 77,682,682 | ? | - | |
| Other receivables | 4,827,398,094 | ? | 4,827,398,094 | ? | - | |
| Inventories | 13,935,401 | ? | 13,935,401 | ? | - | |
| Other current assets | 109,497,897 | ? | 109,497,897 | ? | - | |
| ? | ? | ? | ? | ? | ? | |
| Total current assets | 9,440,047,768 | ? | 10,492,420,874 | ? | 1,052,373,106 | |
| ? | ? | ? | ? | ? | ? | |
| Non-current assets | ? | ? | ? | ? | ? | |
| ? | ? | ? | ? | ? | ? | |
| Long-term equity investments | 159,389,864,760 | ? | 159,389,864,760 | ? | - | |
| Investments in other equity instruments | 79,405,724 | ? | 79,405,724 | ? | - | |
| Investment properties | 280,525,802 | ? | 280,525,802 | ? | - | |
| Fixed assets | 949,104,308 | ? | 949,104,308 | ? | - | |
| Construction in progress | 358,933,667 | ? | 358,933,667 | ? | - | |
| Intangible assets | 1,493,632,264 | ? | 1,493,632,264 | ? | - | |
| Long-term deferred expenses | 109,216,398 | ? | 109,216,398 | ? | - | |
| Deferred tax assets | 360,268,466 | ? | - | ? | (360,268,466) | |
| Other non-current assets | 162,516,190 | ? | 3,337,516,190 | ? | 3,175,000,000 | |
| ? | ? | ? | ? | ? | ? | |
| Total non-current assets | 163,183,467,579 | ? | 165,998,199,113 | ? | 2,814,731,534 | |
| ? | ? | ? | ? | ? | ? | |
| ? | ? | ? | ? | ? | ? | |
| Total assets | 172,623,515,347 | ? | 176,490,619,987 | ? | 3,867,104,640 | |
| ? | The Company | ||||
| ? | 31 December 2019 | ? | 1 January 2020 | ? | Adjustments |
| Liabilities and shareholders’ equity | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? | ? |
| Short-term loans | 1,220,000,000 | ? | 1,220,000,000 | ? | - |
| Accounts payable | 27,919,341 | ? | 27,919,341 | ? | - |
| Advance payments received | 2,117,568,995 | ? | 9,476,543 | ? | (2,108,092,452) |
| Contract liabilities | - | ? | 51,148,261 | ? | 51,148,261 |
| Employee benefits payable | 252,206,075 | ? | 252,206,075 | ? | - |
| Taxes payable | 107,287,957 | ? | 107,287,957 | ? | - |
| Other payables | 5,260,470,974 | ? | 5,260,470,974 | ? | - |
| Non-current liabilities due within one year | 5,490,440,787 | ? | 5,490,440,787 | ? | - |
| Other current liabilities | 1,423,133 | ? | 4,492,029 | ? | 3,068,896 |
| ? | ? | ? | ? | ? | ? |
| Total current liabilities | 14,477,317,262 | ? | 12,423,441,967 | ? | (2,053,875,295) |
| ? | ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? | ? |
| Long-term loans | 33,310,701,574 | ? | 33,310,701,574 | ? | - |
| Deferred income | 4,627,393,256 | ? | 4,627,393,256 | ? | - |
| Deferred tax liabilities | - | ? | 581,918,794 | ? | 581,918,794 |
| Other non-current liabilities | 33,297,240,830 | ? | 33,297,240,830 | ? | - |
| ? | ? | ? | ? | ? | ? |
| Total non-current liabilities | 71,235,335,660 | ? | 71,817,254,454 | ? | 581,918,794 |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Total liabilities | 85,712,652,922 | ? | 84,240,696,421 | ? | (1,471,956,501) |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? | ? |
| Share capital | 34,798,398,763 | ? | 34,798,398,763 | ? | - |
| Other equity instruments | 8,013,156,853 | ? | 8,013,156,853 | ? | - |
| Capital reserve | 37,608,039,685 | ? | 37,608,039,685 | ? | - |
| Other comprehensive income | 193,638,576 | ? | 193,638,576 | ? | - |
| Surplus reserve | 1,516,139,709 | ? | 2,050,045,823 | ? | 533,906,114 |
| Retained earnings | 4,781,488,839 | ? | 9,586,643,866 | ? | 4,805,155,027 |
| ? | ? | ? | ? | ? | ? |
| Total shareholders’ equity | 86,910,862,425 | ? | 92,249,923,566 | ? | 5,339,061,141 |
| ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | 172,623,515,347 | ? | 176,490,619,987 | ? | 3,867,104,640 |
(b) CAS Bulletin No.13
CAS Bulletin No.13 amends the three elements that constitute a business, provides specific guidance on thedetermination of a business, and introduces an optional concentration test when the acquirer determines whether theacquired operating activities or asset portfolios not involving enterprises under common control constitute a business.
In addition, CAS Bulletin No.13 has further clarified that related parties of an entity also include the joint venture(s)or associate(s) of the other members (including the parent and subsidiaries) in the same group that includes the entity,and the other joint venture(s) or associate(s) of the investors who exercise joint control over the entity, etc.
CAS Bulletin No.13 takes effect on 1 January 2020. The Group has adopted the accounting policy changeprospectively. The adoption of CAS Bulletin No.13 does not have any significant effect on the financial position,financial performance or related party disclosures of the Group.
(c) Caikuai [2020] No.10
Caikuai [2020] No.10 provides a practical expedient under certain conditions for rent concessions occurring as adirect consequence of the Covid-19 pandemic. If an entity elects to apply the practical expedient, the entity does notneed to assess whether a lease modification has occurred or to reassess the lease classification.
Caikuai [2020] No.10 takes effect on 24 June 2020 (the implementation date). The entity is allowed to adjust therelated rent concessions that occurred between 1 January 2020 and the implementation date. The adoption of Caikuai[2020] No.10 does not have any significant effect on the financial position or financial performance of the Group.
IV. Taxation
1 Main types of taxes and corresponding tax rates
| Tax type | ? | Tax basis | ? | Tax rate |
| ? | ? | ? | ? | ? |
| Value-added tax (VAT) | ? | Output VAT is calculated on product sales and taxable services revenue. The basis for VAT payable is to deduct input VAT from the output VAT for the period | ? | 6%, 9%, 10%, 13%, 16% |
| City maintenance and construction tax | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 7%, 5% |
| Education surcharges and local education surcharges | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 3%, 2% |
| Corporate income tax | ? | Based on taxable profits | ? | 15% - 33% |
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2019: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No. 28, corporate income tax for keyadvanced and high-tech enterprises supported by the State is applicable to a preferential tax rate of 15%.
On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No. GR202011004594, which was entitledjointly by Beijing Municipal Science and Technology Commission, Beijing Municipal Financial Bureau, Beijing MunicipalState Administration of Taxation and Beijing Municipal Local Administration of Taxation. The Company is subject tocorporate income tax rate of 15% since the date of certification with the valid period of three years.
The income tax rate applicable to other subsidiaries of the Group is 25% other than the following subsidiaries and theoverseas subsidiaries which subject to the local income tax rate.
The subsidiaries that are entitled to preferential tax treatments are as follows:
| Company name | Preferential rate | ? | Reason |
| ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) | 15% | ? | High-tech Enterprise |
| Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu Optoelectronics ) | 15% | ? | High-tech Enterprise |
| Hefei BOE Optoelectronics Technology Co., Ltd.(Hefei BOE) | 15% | ? | High-tech Enterprise |
| Beijing BOE Display Technology Co., Ltd. (BOE Display) | 15% | ? | High-tech Enterprise |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei Xinsheng) | 15% | ? | High-tech Enterprise |
| Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics) | 15% | ? | Encouraged enterprise in Western Regions |
| Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) | 15% | ? | Encouraged enterprise in Western Regions |
| BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei) | 15% | ? | High-tech Enterprise |
| BOE Optical Science and technology Co., Ltd. (Optical Technology) | 15% | ? | High-tech Enterprise |
| Beijing BOE CHATANI Electronics Co., Ltd. (Beijing CHATANI) | 15% | ? | High-tech Enterprise |
| Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display Lighting) | 15% | ? | High-tech Enterprise |
| Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) | 15% | ? | High-tech Enterprise |
| Beijing BOE Special Display Technology Co., Ltd. (Special Display) | 15% | ? | High-tech Enterprise |
| Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) | 15% | ? | High-tech Enterprise |
| Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) | 15% | ? | High-tech Enterprise |
| Beijing BOE Energy Technology Co., Ltd. (BOE Energy) | 15% | ? | High-tech Enterprise |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE) | 15% | ? | High-tech Enterprise |
| Hefei BOE Vision-Electronic Technology Co., Ltd. (Hefei Technology) | 15% | ? | High-tech Enterprise |
| Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE) | 15% | ? | Encouraged enterprise in Western Regions |
| BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) | 15% | ? | High-tech Enterprise |
| K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics) | 15% | ? | High-tech Enterprise |
| Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Smart Electronic) | 15% | ? | Encouraged enterprise in Western Regions |
| Beijing BOE Health Technology Co., Ltd. (Health Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Electronic Technology) | 15% | ? | Encouraged enterprise in Western Regions |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) | 15% | ? | High-tech Enterprise |
| Nanjing CEC Panda FPD Technology Co., Ltd. (Nanjing CEC Panda) | 15% | ? | High-tech Enterprise |
| Chengdu CEC Panda Display Technology Co., Ltd. (Chengdu CEC Panda) | 15% | ? | Encouraged enterprise in Western Regions |
| ?? | |||
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash on hand | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 277,055 | ? | ? | ? | ? | ? | 352,736 |
| USD | 1,493 | ? | 6.5249 | ? | 9,741 | ? | 1,927 | ? | 6.9762 | ? | 13,443 |
| HKD | 55,494 | ? | 0.8416 | ? | 46,706 | ? | 96,829 | ? | 0.8958 | ? | 86,739 |
| JPY | 58,474 | ? | 0.0632 | ? | 3,698 | ? | 51,485 | ? | 0.0641 | ? | 3,300 |
| KRW | 490,445 | ? | 0.0060 | ? | 2,941 | ? | 490,690 | ? | 0.0060 | ? | 2,944 |
| Other foreign currencies | ? | ? | ? | ? | 60,900 | ? | ? | ? | ? | ? | 79,176 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 401,041 | ? | ? | ? | ? | ? | 538,338 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank deposits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 39,618,620,160 | ? | ? | ? | ? | ? | 22,108,949,641 |
| USD | 4,051,241,539 | ? | 6.5249 | ? | 26,433,945,919 | ? | 3,793,451,398 | ? | 6.9762 | ? | 26,463,875,643 |
| HKD | 21,037,675 | ? | 0.8416 | ? | 17,706,149 | ? | 17,880,803 | ? | 0.8958 | ? | 16,017,623 |
| JPY | 15,628,343,064 | ? | 0.0632 | ? | 988,273,902 | ? | 11,996,438,527 | ? | 0.0641 | ? | 768,971,710 |
| KRW | 521,128,601 | ? | 0.0060 | ? | 3,125,209 | ? | 700,598,718 | ? | 0.0060 | ? | 4,203,592 |
| EUR | 136,705,809 | ? | 8.0250 | ? | 1,097,064,115 | ? | 110,515,896 | ? | 7.8155 | ? | 863,736,985 |
| Other foreign currencies | ? | ? | ? | ? | 46,443,965 | ? | ? | ? | ? | ? | 43,452,413 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 68,205,179,419 | ? | ? | ? | ? | ? | 50,269,207,607 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Other monetary funds | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 3,949,848,676 | ? | ? | ? | ? | ? | 3,728,439,717 |
| USD | 218,704,451 | ? | 6.5249 | ? | 1,427,024,669 | ? | 421,172,173 | ? | 6.9762 | ? | 2,938,181,313 |
| HKD | 15 | ? | 0.8416 | ? | 13 | ? | 3,156 | ? | 0.8958 | ? | 2,827 |
| JPY | 1,769,656,282 | ? | 0.0632 | ? | 111,842,277 | ? | 567,260,199 | ? | 0.0641 | ? | 36,353,437 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 5,488,715,635 | ? | ? | ? | ? | ? | 6,702,977,294 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 73,694,296,095 | ? | ? | ? | ? | ? | 56,972,723,239 |
Including: Total overseas deposits were equivalent to RMB 7,025,632,935 (2019: RMB 5,864,466,250).
As at 31 December 2020, other monetary funds were pledged by the Group amounting to RMB 99,133,679 for long-termloans, and USD 152,091,672 were pledged for short-term loans. The rest of other restricted monetary funds, amounting toRMB 4,396,583,003, were the deposits in commercial banks as security.
As at 31 December 2019, other monetary funds were pledged by the Group amounting to USD 342,000,000 for short-termloans, and RMB 151,840,291 and USD 7,500,000 were pledged for long-term loans. The rest of other restricted monetaryfunds, amounting to RMB 4,112,379,475, were the deposits in commercial banks as security.
2 Financial assets held for trading
??
Item
| Item | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | ? | ? | ? |
| - Structured deposit and wealth management products | 4,367,201,833 | ? | 5,809,184,994 |
3 Bills receivable
(1) Classification of bills receivable
??
Item
| Item | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 215,994,373 | ? | 331,145,492 |
| ? | ? | ? | ? | ? |
| Total | ? | 215,994,373 | ? | 331,145,492 |
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2020, there is no pledged bills for the Group (2019: Nil).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
??Item
| Item | ? | Amount derecognised as at 31 December 2020 | ? | Amount not derecognised as at 31 December 2020 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 4,370,824 | ? | 60,214,157 |
| ? | ? | ? | ? | ? |
| Total | ? | 4,370,824 | ? | 60,214,157 |
For the year ended 31 December 2020, there was no amount transferred to accounts receivable from bills receivable due tonon-performance of the issuers of the Group (2019: Nil).
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
??Item
| Item | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 38,773,536 | ? | 1,960,247 |
| Amounts due from other customers | ? | 22,988,229,841 | ? | 18,481,732,857 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 23,027,003,377 | ? | 18,483,693,104 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 57,863,022 | ? | 348,005,298 |
| ? | ? | ? | ? | ? |
| Total | ? | 22,969,140,355 | ? | 18,135,687,806 |
(2) The Group’s accounts receivable by currency type:
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 8,322,396,079 | ? | ? | ? | ? | ? | 8,041,480,485 |
| USD | 2,136,679,897 | ? | 6.5249 | ? | 13,941,622,660 | ? | 1,438,995,152 | ? | 6.9762 | ? | 10,038,717,980 |
| JPY | 36,855,786 | ? | 0.0632 | ? | 2,329,286 | ? | 25,172,988 | ? | 0.0641 | ? | 1,613,589 |
| Other foreign currencies | ? | ? | ? | ? | 760,655,352 | ? | ? | ? | ? | ? | 401,881,050 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 23,027,003,377 | ? | ? | ? | ? | ? | 18,483,693,104 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 57,863,022 | ? | ? | ? | ? | ? | 348,005,298 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 22,969,140,355 | ? | ? | ? | ? | ? | 18,135,687,806 |
(3) The ageing analysis of accounts receivable is as follows:
???
| ? | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 22,515,188,628 | ? | 17,872,807,760 |
| Over 1 year but within 2 years (inclusive) | ? | 256,800,012 | ? | 233,485,656 |
| Over 2 years but within 3 years (inclusive) | ? | 172,351,904 | ? | 68,549,411 |
| Over 3 years | ? | 82,662,833 | ? | 308,850,277 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 23,027,003,377 | ? | 18,483,693,104 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 57,863,022 | ? | 348,005,298 |
| ? | ? | ? | ? | ? |
| Total | ? | 22,969,140,355 | ? | 18,135,687,806 |
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
???
| ? | 31 December 2020 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 60,093,972 | ? | 0% | ? | 41,752,588 | ? | 69% | ? | 18,341,384 |
| - Customers with low credit risk | 1,036,981,635 | ? | 5% | ? | - | ? | 0% | ? | 1,036,981,635 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 21,929,927,770 | ? | 95% | ? | 16,110,434 | ? | 0% | ? | 21,913,817,336 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 23,027,003,377 | ? | 100% | ? | 57,863,022 | ? | 0% | ? | 22,969,140,355 |
???
| ? | 31 December 2019 |
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 334,464,437 | ? | 2% | ? | 334,419,437 | ? | 100% | ? | 45,000 |
| - Customers with low credit risk | 1,398,318,800 | ? | 7% | ? | 38,734 | ? | 0% | ? | 1,398,280,066 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 16,750,909,867 | ? | 91% | ? | 13,547,127 | ? | 0% | ? | 16,737,362,740 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 18,483,693,104 | ? | 100% | ? | 348,005,298 | ? | 2% | ? | 18,135,687,806 |
(a) Criteria for collective assessment in 2020 and details:
| Customer group | ? | Basis |
| ? | ? | ? |
| Customers with high credit risk | ? | With special matters, litigations or the deterioration of customers’ credit status |
| Customers with low credit risk | ? | Banks, insurance companies, large state-owned enterprises and public institutions |
| Customers with moderate credit risk | ? | Customers not included in Groups above |
(b) Assessment of ECLs on accounts receivable in 2020:
At 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 loss rate. According to the Group’s historicalexperience, different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
??
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 348,005,298 | ? | 325,211,590 |
| Charge during the year | 13,048,035 | ? | 23,510,271 |
| Recoveries during the year | (15,387,358) | ? | (1,493,365) |
| Written-off during the year | (285,159,459) | ? | (4,211,814) |
| Translation differences | (2,643,494) | ? | 4,988,616 |
| ? | ? | ? | ? |
| Balance at the end of the year | 57,863,022 | ? | 348,005,298 |
(6) Five largest accounts receivable by debtor at the end of the year
The total of five largest accounts receivable of the Group at the end of the year was RMB 7,874,647,846, representing 34% ofthe total accounts receivable, and no provision was made for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
???
| ? | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Prepayment for inventory | ? | 617,801,035 | ? | 107,673,472 |
| Prepayment for electricity and water | ? | 230,580,992 | ? | 271,295,136 |
| Others | ? | 271,213,957 | ? | 248,017,098 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,119,595,984 | ? | 626,985,706 |
(2) The ageing analysis of prepayments is as follows:
| ? | 31 December 2020 | ? | 31 December 2019 | ||||
| Ageing | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | 1,008,648,097 | ? | 90% | ? | 459,763,565 | ? | 73% |
| Over 1 year but within 2 years (inclusive) | 18,143,348 | ? | 2% | ? | 148,351,079 | ? | 24% |
| Over 2 years but within 3 years (inclusive) | 84,733,056 | ? | 8% | ? | 17,719,439 | ? | 3% |
| Over 3 years | 8,071,483 | ? | - | ? | 1,151,623 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,119,595,984 | ? | 100% | ? | 626,985,706 | ? | 100% |
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB 712,385,803, representing 64% of the totalprepayments.
6 Other receivables
??
?
| ? | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Interest receivable | ? | 2,037,452 | ? | 215,977,831 |
| Dividends receivable | ? | 1,842,137 | ? | - |
| Others | (1) | 654,235,244 | ? | 490,193,281 |
| ? | ? | ? | ? | ? |
| Total | ? | 658,114,833 | ? | 706,171,112 |
(1) Others
(a) The Group’s other receivable by customer type:
??
Customer type
| Customer type | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 14,062,445 | ? | 603,515 |
| Amounts due from other customers | ? | 649,216,811 | ? | 498,225,877 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 663,279,256 | ? | 498,829,392 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 9,044,012 | ? | 8,636,111 |
| ? | ? | ? | ? | ? |
| Total | ? | 654,235,244 | ? | 490,193,281 |
(b) The Group’s other receivable by currency type:
| ? | 31 December 2020 | ? | 31 December 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 577,989,243 | ? | ? | ? | ? | ? | 457,159,067 |
| USD | 7,746,274 | ? | 6.5249 | ? | 50,543,663 | ? | 3,966,373 | ? | 6.9762 | ? | 27,670,211 |
| JPY | 35,289,875 | ? | 0.0632 | ? | 2,230,320 | ? | 42,000,525 | ? | 0.0641 | ? | 2,692,234 |
| Other foreign currencies | ? | ? | ? | ? | 32,516,030 | ? | ? | ? | ? | ? | 11,307,880 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 663,279,256 | ? | ? | ? | ? | ? | 498,829,392 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 9,044,012 | ? | ? | ? | ? | ? | 8,636,111 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 654,235,244 | ? | ? | ? | ? | ? | 490,193,281 |
(c) The ageing analysis of the Group’s other receivables is as follows:
??
?
| ? | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 336,023,652 | ? | 209,994,098 |
| Over 1 year but within 2 years (inclusive) | ? | 65,883,117 | ? | 25,165,256 |
| Over 2 years but within 3 years (inclusive) | ? | 18,983,553 | ? | 14,546,942 |
| Over 3 years | ? | 242,388,934 | ? | 249,123,096 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 663,279,256 | ? | 498,829,392 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 9,044,012 | ? | 8,636,111 |
| ? | ? | ? | ? | ? |
| Total | ? | 654,235,244 | ? | 490,193,281 |
The ageing is counted starting from the date when other receivables are recognised.
(d) Other receivables by provisioning method
??
?
| ? | 31 December 2020 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 9,044,012 | ? | 1% | ? | 9,044,012 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 654,235,244 | ? | 99% | ? | - | ? | 0% | ? | 654,235,244 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 663,279,256 | ? | 100% | ? | 9,044,012 | ? | 1% | ? | 654,235,244 |
???
| ? | 31 December 2019 | ||||
| ? | Book value | ? | Provision for impairment | ? | ? |
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 8,636,111 | ? | 2% | ? | 8,636,111 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 490,193,281 | ? | 98% | ? | - | ? | - | ? | 490,193,281 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 498,829,392 | ? | 100% | ? | 8,636,111 | ? | 2% | ? | 490,193,281 |
(e) Movements of provisions for bad and doubtful debts
| ? | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 8,636,111 | ? | 2,933,581 |
| Charge during the year | ? | 572,266 | ? | 6,251,161 |
| Recoveries during the year | ? | (60,462) | ? | (5,440) |
| Written-off during the year | ? | (103,903) | ? | (543,191) |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 9,044,012 | ? | 8,636,111 |
(f) The Group’s other receivables categorised by nature
??
Nature
| Nature | ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| VAT refunds and export tax rebate | ? | 41,149,236 | ? | 10,648,330 |
| Amount due from equity transfer | ? | 200,000,000 | ? | 200,000,000 |
| Surety and deposits | ? | 171,340,282 | ? | 178,899,557 |
| Others | ? | 250,789,738 | ? | 109,281,505 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 663,279,256 | ? | 498,829,392 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 9,044,012 | ? | 8,636,111 |
| ? | ? | ? | ? | ? |
| Total | ? | 654,235,244 | ? | 490,193,281 |
(g) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB 359,386,051, most of whichare amount due from equity transfer and deposits. No provision is made for bad and doubtful debts after assessment.
7 Inventories
(1) The Group’s inventories by category:
| ? | 31 December 2020 | ? | 1 January 2020/31 December 2019 | ||||||||
| ? | Book value | ? | Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer | ? | Carrying amount | ? | Book value | ? | Provision for impairment of inventories | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 8,068,822,655 | ? | 933,491,391 | ? | 7,135,331,264 | ? | 4,663,835,151 | ? | 288,351,560 | ? | 4,375,483,591 |
| Work in progress | 2,811,789,420 | ? | 583,885,537 | ? | 2,227,903,883 | ? | 1,750,768,537 | ? | 372,043,796 | ? | 1,378,724,741 |
| Finished goods | 10,074,715,347 | ? | 1,767,518,826 | ? | 8,307,196,521 | ? | 7,671,273,928 | ? | 1,152,223,633 | ? | 6,519,050,295 |
| Consumables | 162,817,575 | ? | - | ? | 162,817,575 | ? | 122,936,135 | ? | - | ? | 122,936,135 |
| Costs to fulfil a contract with a customer | 42,205,247 | ? | - | ? | 42,205,247 | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 21,160,350,244 | ? | 3,284,895,754 | ? | 17,875,454,490 | ? | 14,208,813,751 | ? | 1,812,618,989 | ? | 12,396,194,762 |
As at 31 December 2020, there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2019: Nil).
As at 31 December 2020, the Group had no inventory used as collateral (2019: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
| ? | Balance at the beginning of the year | ? | Charge during the year | ? | Decrease during the year | ? | Balance at the end of the year | ||
| ? | ? | ? | ? | ? | Reversals | ? | Write-off | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 288,351,560 | ? | 843,256,105 | ? | (143,418,140) | ? | (54,698,134) | ? | 933,491,391 |
| Work in progress | 372,043,796 | ? | 462,312,355 | ? | (204,781,587) | ? | (45,689,027) | ? | 583,885,537 |
| Finished goods | 1,152,223,633 | ? | 2,521,348,291 | ? | (969,342,859) | ? | (936,710,239) | ? | 1,767,518,826 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,812,618,989 | ? | 3,826,916,751 | ? | (1,317,542,586) | ? | (1,037,097,400) | ? | 3,284,895,754 |
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that it has transferred to a customerwhen that right is conditional on something other than the passage of time.
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
| ? | ? | 2020 |
| ? | ? | RMB |
| Balance under previous revenue standard | ? | - |
| Adjustment on initial application of the new revenue standard | ? | 27,710,945 |
| ? | ? | ? |
| Balance at the beginning of the year after adjustment | ? | 27,710,945 |
| ? | ? | ? |
| Transfers from contract assets recognised receivables | ? | (24,932,485) |
| Increase in contract assets resulting from no unconditional right obtained | ? | 47,118,935 |
| ? | ? | ? |
| Balance at 31 December 2020 | ? | 49,897,395 |
(3) Additions, recoveries or reversals of provision for contract asset during the year:
??
| ? | 2020 |
| ? | ? |
| Balance at the beginning of the year | - |
| Additions during the year | 207,800 |
| Recoveries during the year | - |
| Written-off during the year | - |
| ? | ? |
| Balance at the end of the year | 207,800 |
9 Assets held for sale
2020
?
| Non-current assets held for sale | |||
| Carrying amount | ? | Fair value | |
| ? | ? | ? | ? |
| Fixed assets | 157,662,559 | ? | 328,796,100 |
| Intangible assets | 29,230,086 | ? | 55,251,000 |
| ? | ? | ? | ? |
| Total of assets held for sale | 186,892,645 | ? | 384,047,100 |
In March 2018, K-Tronics (Suzhou) Technology Co., Ltd., a subsidiary of the Company, entered into the RecoveryAgreement of Land and Properties with Management Committee of Wujiang Economic and Technological DevelopmentZone to sell properties and other attachments located in Wujiang Economic and Technological Development Zone. As at 31December 2020, the carrying amount of the assets held for sale above is RMB 186,892,645. K-Tronics (Suzhou) TechnologyCo., Ltd. and the Management Committee of Wujiang Economic and Technological Development Zone agreed that therecovery price of the subject matter is RMB 384,047,100, which is determined according to the evaluation report. Thedisposal of relevant assets was completed in March 2021.
10 Other current assets
| ? | ? | 31 December 2020 | ? | 1 January 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 6,447,432,350 | ? | 5,979,120,265 | ? | 5,979,120,265 |
| Input tax to be verified or deducted | ? | 1,068,285,033 | ? | 1,984,055,118 | ? | 1,984,055,118 |
| Prepaid income taxes | ? | 23,710,045 | ? | 45,154,225 | ? | 45,154,225 |
| Wealth management products | ? | 2,611,572 | ? | 1,162,273,445 | ? | 1,162,273,445 |
| Costs receivables for recovering products from a customer | ? | 131,986,424 | ? | 79,264,710 | ? | - |
| Others | ? | 174,843,828 | ? | 126,034,014 | ? | 126,034,014 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 7,848,869,252 | ? | 9,375,901,777 | ? | 9,296,637,067 |
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Investments in associates | 4,722,215,043 | ? | 3,495,896,246 |
| ? | ? | ? | ? |
| Sub-total | 4,722,215,043 | ? | 3,495,896,246 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 1,029,044,819 | ? | 777,858,312 |
| ? | ? | ? | ? |
| Total | 3,693,170,224 | ? | 2,718,037,934 |
(2) Movements of long-term equity investments during the year are as follows:
| ? | ? | ? | Movements during the year | ? | ? | ||||||||||||
| Investee | Balance at the beginning of the year | ? | Increase in capital | ? | Decrease in capital | ? | Investment income recognised under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | ? | Translation differences arising from translation of foreign currency financial statements | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Nissin Electronics Precision Component Co., Ltd. | 483,248 | ? | - | ? | - | ? | (219,390) | ? | - | ? | - | ? | - | ? | - | ? | 263,858 |
| Beijing Nittan Electronic Co., Ltd. | 64,808,755 | ? | - | ? | - | ? | 8,588,066 | ? | - | ? | - | ? | (2,000,000) | ? | - | ? | 71,396,821 |
| Erdos BOE Energy Investment Co., Ltd. | 907,348,226 | ? | - | ? | - | ? | (1,185,089) | ? | - | ? | - | ? | - | ? | - | ? | 906,163,137 |
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 663,215 | ? | - | ? | - | ? | 503,309 | ? | - | ? | - | ? | - | ? | - | ? | 1,166,524 |
| Beijing Infi-Hailin Venture Investment (Limited Partnership) | 74,384,952 | ? | - | ? | (79,000,000) | ? | (210,320) | ? | 5,702,455 | ? | (877,087) | ? | - | ? | - | ? | - |
| TPV Display Technology (China) Limited | 24,545,664 | ? | - | ? | - | ? | 282,600 | ? | - | ? | - | ? | - | ? | - | ? | 24,828,264 |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,944,514,849 | ? | - | ? | (427,412,416) | ? | 410,089,641 | ? | 130,950,251 | ? | - | ? | - | ? | - | ? | 2,058,142,325 |
| Beijing Xindongneng Investment Management Co., Ltd. | 7,410,061 | ? | - | ? | - | ? | 2,511,565 | ? | - | ? | - | ? | (2,000,000) | ? | - | ? | 7,921,626 |
| Shenzhen Yunyinggu Technology Co., Ltd. | 12,715,084 | ? | - | ? | - | ? | (5,368,560) | ? | 60,150 | ? | 14,504,213 | ? | - | ? | - | ? | 21,910,887 |
| Beijing Xloong Technologies Co., Ltd. | 22,237,044 | ? | - | ? | - | ? | (2,470,104) | ? | - | ? | - | ? | - | ? | - | ? | 19,766,940 |
| Beijing Innovation Industry Investment Co., Ltd. | 100,363,345 | ? | 100,000,000 | ? | - | ? | 3,699,909 | ? | - | ? | - | ? | - | ? | - | ? | 204,063,254 |
| Beijing Electric Control Industry Investment Co., Ltd. | 16,841,609 | ? | 183,000,000 | ? | - | ? | 679,994 | ? | (319,767) | ? | 81,278 | ? | - | ? | - | ? | 200,283,114 |
| Hunan BOE Yiyun Science & Technology Co., Ltd. | - | ? | 253,630,000 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 253,630,000 |
| New on Technology Co., Ltd. | 2,727,606 | ? | - | ? | - | ? | (366,860) | ? | - | ? | - | ? | - | ? | 39,292 | ? | 2,400,038 |
| Cnoga Medical Co., Ltd. | 307,506,903 | ? | - | ? | - | ? | (15,779,857) | ? | - | ? | (6,697,004) | ? | - | ? | (18,509,718) | ? | 266,520,324 |
| Beijing Zhonglianhe Ultra HD Collaborative Technology Centre Co., Ltd. | 2,715,260 | ? | - | ? | - | ? | (288,351) | ? | - | ? | - | ? | - | ? | - | ? | 2,426,909 |
| Shenzhen Jiangcheng Technology Co., Ltd. | 6,630,425 | ? | - | ? | - | ? | (1,278,128) | ? | - | ? | - | ? | - | ? | (340,836) | ? | 5,011,461 |
| BOE Houji Technology (Beijing) Co., Ltd. | - | ? | 1,200,000 | ? | - | ? | (282,367) | ? | - | ? | - | ? | - | ? | - | ? | 917,633 |
| Tianjin Xianzhilian Investment Centre (Limited Partnership) | - | ? | 429,000,000 | ? | - | ? | 45,207,278 | ? | - | ? | - | ? | - | ? | - | ? | 474,207,278 |
| BioChain (Beijing) Science & Technology, Inc. | - | ? | 200,000,000 | ? | - | ? | 203,487 | ? | - | ? | - | ? | - | ? | - | ? | 200,203,487 |
| Tianjin Xianzhilian Investment Management | - | ? | 900,000 | ? | - | ? | 91,163 | ? | - | ? | - | ? | - | ? | - | ? | 991,163 |
| Centre (Limited Partnership) | |||||||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 3,495,896,246 | ? | 1,167,730,000 | ? | (506,412,416) | ? | 444,407,986 | ? | 136,393,089 | ? | 7,011,400 | ? | (4,000,000) | ? | (18,811,262) | ? | 4,722,215,043 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | 777,858,312 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 1,029,044,819 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,718,037,934 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 3,693,170,224 |
As at 31 December 2020, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. suffered continuous loss and the Group does nothave an obligation to assume additional losses. Therefore, the Company discontinues recognising its share of further lossesafter the carrying amount of long-term equity investment is reduced to zero. As at 31 December 2020, the accumulatedunrecognised investment losses were RMB 18,207,308 (2019: RMB 17,817,673).
12 Investments in other equity instruments
| Item | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Listed equity instruments investment | ? | ? | ? |
| - Beijing Electronic City High Tech Group Co., Ltd. | 74,372,840 | ? | 72,585,692 |
| - Bank of Chongqing Co., Ltd. | 102,845,668 | ? | 105,407,103 |
| - CSC Securities Co., Ltd. | - | ? | 68,545,920 |
| - New Century Medical Holding Co., Ltd. | 36,995,513 | ? | 53,586,259 |
| ? | ? | ? | ? |
| Unlisted equity instruments investment | ? | ? | ? |
| - Teralane Semiconductor Inc. | - | ? | - |
| - Zhejiang BOE Display Technology Co., Ltd. | 321,256 | ? | 321,256 |
| - Zhejiang Qiusheng Photoelectric Technology Co., Ltd. | 248,776 | ? | 248,776 |
| - National Engineering Laboratory of Digital Television (Beijing) Co., Ltd. | 6,250,000 | ? | 6,250,000 |
| - Danhua Capital, L. P. | 32,624,500 | ? | 26,160,750 |
| - Danhua Capital II, L.P. | 65,249,007 | ? | 64,529,850 |
| - Kateeva Inc. | 77,939,931 | ? | 83,330,709 |
| - DEPICT INC. | - | ? | - |
| - Meta Company | - | ? | - |
| - MOOV INC. | 26,207,585 | ? | 28,020,288 |
| - ZGLUE INC. | - | ? | 10,464,288 |
| - Nanosys INC. | 48,936,750 | ? | 52,321,500 |
| - Ceribell INC. | 8,482,363 | ? | 9,069,052 |
| - Baebies INC. | 28,668,368 | ? | 30,651,239 |
| - Illumina Fund I, L.P. | 21,320,235 | ? | 17,181,203 |
| - ACQIS Technology, Inc. | 1,304,980 | ? | 1,395,242 |
| - KA IMAGING INC. | 1,877,651 | ? | 2,007,520 |
| - Beijing Dongfang Electronic Industry Co., Ltd. | - | ? | - |
| ? | ? | ? | ? |
| Total | 533,645,423 | ? | 632,076,647 |
Note*: In 2020, the Company disposed of its shares in CSC Securities Co., Ltd. and derecognised its investments in
Teralane Semiconductor Inc., DEPICT INC. and Meta Company, with gains and or losses accumulated in othercomprehensive income reclassified to retained earnings, totalling RMB 55,855,250. See Note V.41.
(1) Investments in other equity instruments:
| Item | Reason for being designated at fair value through other comprehensive income | ? | Dividend income recognised for the year | ? | Accumulated gains or losses recognised in other comprehensive income (“-” for losses) | ? | Amount transferred from other comprehensive income to retained earnings | ? | Reason for transferring from other comprehensive income to retained earnings |
| ? | ? | ? | ? | ? | |||||
| Listed equity instruments investment | ? | ? | ? | ? | |||||
| - Beijing Electronic City High Tech Group Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 1,842,137 | ? | (15,787,588) | ? | - | ? | Not applicable |
| - Bank of Chongqing Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 5,804,204 | ? | (17,238,707) | ? | - | ? | Not applicable |
| - CSC Securities Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | 1,768,891 | ? | Disposals |
| - New Century Medical Holding Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (103,853,337) | ? | - | ? | Not applicable |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Unlisted equity instruments investment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Teralane Semiconductor Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | 11,868,000 | ? | Disposals |
| - Zhejiang BOE Display Technology Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - Zhejiang Qiusheng Photoelectric Technology Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 1,410,307 | ? | - | ? | - | ? | Not applicable |
| - National Engineering Laboratory of Digital Television (Beijing) Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | - | ? | Not applicable |
| - Danhua Capital, L. P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 2,544,309 | ? | (1,901,875) | ? | - | ? | Not applicable |
| - Danhua Capital II, L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 13,800,800 | ? | (2,398,744) | ? | - | ? | Not applicable |
| - Kateeva Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (4,922,536) | ? | - | ? | Not applicable |
| - DEPICT INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | 13,049,800 | ? | Disposals |
| - Meta Company | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | - | ? | 29,168,559 | ? | Disposals |
| - MOOV INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (1,655,254) | ? | - | ? | Not applicable |
| - ZGLUE INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (10,405,488) | ? | - | ? | Not applicable |
| - Nanosys INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (1,412,250) | ? | - | ? | Not applicable |
| - Ceribell INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (179,920) | ? | - | ? | Not applicable |
| - Baebies INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (455,186) | ? | - | ? | Not applicable |
| - Illumina Fund I,L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 974,930 | ? | (831,445) | ? | - | ? | Not applicable |
| - ACQIS Technology, Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (258,980) | ? | - | ? | Not applicable |
| - KA IMAGING INC. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (129,869) | ? | - | ? | Not applicable |
| - Beijing Dongfang Electronic Industry Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (180,000) | ? | - | ? | Not applicable |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | 26,376,687 | ? | (161,611,179) | ? | 55,855,250 | ? | ? |
13 Investment properties
| ? | ? | Land use rights | ? | Buildings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 687,434,677 | ? | 1,015,816,127 | ? | 1,703,250,804 |
| Additions during the year | ? | - | ? | 362,715 | ? | 362,715 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 687,434,677 | ? | 1,016,178,842 | ? | 1,703,613,519 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation or amortisation | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 140,772,403 | ? | 321,235,551 | ? | 462,007,954 |
| Additions during the year | ? | 13,878,768 | ? | 31,558,286 | ? | 45,437,054 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 154,651,171 | ? | 352,793,837 | ? | 507,445,008 |
| ? | ||||||
| ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? |
| At the end of the year | ? | 532,783,506 | ? | 663,385,005 | ? | 1,196,168,511 |
| ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | ? | 546,662,274 | ? | 694,580,576 | ? | 1,241,242,850 |
14 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
| Item | Plant & buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 39,066,346,904 | ? | 164,514,903,439 | ? | 5,055,062,392 | ? | 208,636,312,735 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 106,424,539 | ? | 251,499,388 | ? | 1,147,743,024 | ? | 1,505,666,951 |
| - Transfers from construction in progress | 11,166,278,131 | ? | 70,039,183,590 | ? | 714,148,657 | ? | 81,919,610,378 |
| - Additions due to business combinations involving entities not under common control | 12,057,991,192 | ? | 26,025,800,334 | ? | 147,032,752 | ? | 38,230,824,278 |
| Disposals or written-offs during the year | (18,533,992) | ? | (631,239,330) | ? | (123,488,328) | ? | (773,261,650) |
| Translation differences | (480,626) | ? | (23,703,787) | ? | (1,990,617) | ? | (26,175,030) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 62,378,026,148 | ? | 260,176,443,634 | ? | 6,938,507,880 | ? | 329,492,977,662 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 5,124,055,712 | ? | 74,655,780,434 | ? | 2,278,538,681 | ? | 82,058,374,827 |
| Charge during the year | 1,189,328,945 | ? | 19,439,177,557 | ? | 1,249,871,496 | ? | 21,878,377,998 |
| Disposals or written-offs during the year | (9,053,218) | ? | (468,884,836) | ? | (87,743,009) | ? | (565,681,063) |
| Translation differences | (468,222) | ? | (2,345,666) | ? | (3,312,810) | ? | (6,126,698) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 6,303,863,217 | ? | 93,623,727,489 | ? | 3,437,354,358 | ? | 103,364,945,064 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 1,073,381 | ? | 784,836,694 | ? | 5,785,895 | ? | 791,695,970 |
| Charge during the year | - | ? | 432,986,334 | ? | 72,215,116 | ? | 505,201,450 |
| Disposals or written-offs during the year | - | ? | (35,236,905) | ? | (213,986) | ? | (35,450,891) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,073,381 | ? | 1,182,586,123 | ? | 77,787,025 | ? | 1,261,446,529 |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 56,073,089,550 | ? | 165,370,130,022 | ? | 3,423,366,497 | ? | 224,866,586,069 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 33,941,217,811 | ? | 89,074,286,311 | ? | 2,770,737,816 | ? | 125,786,241,938 |
In 2020, some of the equipment of the Group is idle and there is no clear use plan. The Group evaluated the recoverableamount of these equipment and made a full provision for impairment of RMB 505,201,450 based on the evaluation results.
(2) Fixed assets acquired under finance leases
| ? | 31 December 2020 | ? | 31 December 2019 | ||||||||||||
| Item | Original book value | ? | Accumulated depreciation | ? | Provision for impairment | ? | Carrying amount | ? | Original book value | ? | Accumulated depreciation | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Plant & buildings | 11,291,665 | ? | 4,864,383 | ? | - | ? | 6,427,282 | ? | 11,291,665 | ? | 4,610,694 | ? | - | ? | 6,680,971 |
| Machinery & equipment | 3,234,619,899 | ? | 16,817,720 | ? | - | ? | 3,217,802,179 | ? | 111,358,145 | ? | 10,816,754 | ? | - | ? | 100,541,391 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,245,911,564 | ? | 21,682,103 | ? | - | ? | 3,224,229,461 | ? | 122,649,810 | ? | 15,427,448 | ? | - | ? | 107,222,362 |
The Group’s fixed assets under finance leases represented a youth apartment under finance lease for the Company, which isused for the purposes of the staff dormitory; and machinery and equipment under finance leases.
(3) Fixed assets pending certificates of ownership
As at 31 December 2020, fixed assets pending certificates of ownership totalled RMB 20,426,632,149 (31 December 2019:
RMB 8,208,580,798) and certificates of ownership is still being processed.
15 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
???
| ? | 2020 | ? | 2019 | ||||||||
| Item | Book value | ? | Provision for impairment | ? | Carrying amount | ? | Book value | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| The 6th generation AMOLED project - Mianyang | 10,195,964,634 | ? | - | ? | 10,195,964,634 | ? | 34,753,609,842 | ? | - | ? | 34,753,609,842 |
| The 6th generation LTPS/AMOLED project - Chengdu | 1,609,674,328 | ? | - | ? | 1,609,674,328 | ? | 19,490,899,526 | ? | - | ? | 19,490,899,526 |
| The 6th generation AMOLED project - Chongqing | 11,920,916,965 | ? | - | ? | 11,920,916,965 | ? | 1,462,975,936 | ? | - | ? | 1,462,975,936 |
| The 10.5th generation TFT-LCD project - Wuhan | 10,551,056,190 | ? | - | ? | 10,551,056,190 | ? | 24,749,508,699 | ? | - | ? | 24,749,508,699 |
| Others | 8,298,237,835 | ? | - | ? | 8,298,237,835 | ? | 6,919,788,524 | ? | - | ? | 6,919,788,524 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 42,575,849,952 | ? | - | ? | 42,575,849,952 | ? | 87,376,782,527 | ? | - | ? | 87,376,782,527 |
(2) Movements of major construction projects in progress during the year
| Item | Budget | ? | Balance at the beginning of the year | ? | Additions during the year | ? | Transfers to fixed assets | ? | Transfer to intangible assets | ? | Balance at the end of the year | Percentage of actual cost to budget (%) | ? | Accumulated capitalised interest at the end of the year | ? | Interest capitalised in 2020 | ? | Interest rate for capitalisation in 2020 (%) | ? | Sources of funding | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| The 6th generation AMOLED project - Mianyang | 46,500,000,000 | ? | 34,753,609,842 | ? | 5,358,315,087 | ? | (29,648,604,321) | (267,355,974) | ? | 10,195,964,634 | 89.04% | ? | 1,198,529,778 | ? | 585,397,750 | ? | 3.42% | ? | Self-raised funds and borrowings | ||
| The 6th generation LTPS/AMOLED project - Chengdu | 46,500,000,000 | ? | 19,490,899,526 | ? | 4,552,866,676 | ? | (22,409,432,296) | (24,659,578) | ? | 1,609,674,328 | 91.85% | ? | - | ? | 367,526,893 | ? | 1.77% | ? | Self-raised funds and borrowings | ||
| The 6th generation AMOLED project - Chongqing | 46,500,000,000 | ? | 1,462,975,936 | ? | 10,460,532,891 | ? | (2,591,862) | - | ? | 11,920,916,965 | 26.05% | ? | 1,242,708 | ? | 1,242,708 | ? | 2.04% | ? | Self-raised funds and borrowings | ||
| The 10.5th generation TFT-LCD project - Wuhan | 46,000,000,000 | ? | 24,749,508,699 | ? | 9,659,161,031 | ? | (23,848,967,181) | (8,646,359) | ? | 10,551,056,190 | 77.36% | ? | 115,596,222 | ? | 317,760,483 | ? | 3.81% | ? | Self-raised funds and borrowings |
16 Intangible assets
(1) Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Original book value | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 4,091,243,669 | ? | 3,718,555,116 | ? | 1,042,610,560 | ? | 1,305,739,329 | ? | 10,158,148,674 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 299,431,151 | ? | 248,991,522 | ? | 27,684,102 | ? | 2,383,123 | ? | 578,489,898 |
| - Transfers from construction in progress | 62,430,272 | ? | - | ? | 413,899,417 | ? | - | ? | 476,329,689 |
| - Non-controlling shareholders’ contribution of capital | - | ? | - | ? | - | ? | 285,773,298 | ? | 285,773,298 |
| - Additions due to business combinations involving entities not under common control | 804,621,761 | ? | 2,978,191,033 | ? | 56,802,736 | ? | - | ? | 3,839,615,530 |
| Disposals during the year | (5,002,886) | ? | (2,768,601) | ? | (2,000,735) | ? | (42,887,739) | ? | (52,659,961) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 5,252,723,967 | ? | 6,942,969,070 | ? | 1,538,996,080 | ? | 1,551,008,011 | ? | 15,285,697,128 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 303,706,213 | ? | 1,601,698,094 | ? | 652,198,832 | ? | 184,128,706 | ? | 2,741,731,845 |
| Charge during the year | 95,749,974 | ? | 350,459,099 | ? | 158,475,804 | ? | 86,677,458 | ? | 691,362,335 |
| Disposals during the year | (1,400,083) | ? | (1,387,324) | ? | (2,000,735) | ? | (18,535,358) | ? | (23,323,500) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 398,056,104 | ? | 1,950,769,869 | ? | 808,673,901 | ? | 252,270,806 | ? | 3,409,770,680 |
| ? | |||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts At the end of the year | 4,854,667,863 | ? | 4,992,199,201 | ? | 730,322,179 | ? | 1,298,737,205 | ? | 11,875,926,448 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 3,787,537,456 | ? | 2,116,857,022 | ? | 390,411,728 | ? | 1,121,610,623 | ? | 7,416,416,829 |
(2) Land use rights pending certificates of ownership
As at 31 December 2020, intangible assets pending certificates of ownership totalled RMB 4,694,121 (31 December2019: RMB 614,842,056).
17 Goodwill
(1) Changes in goodwill
| Name of investee | Note | Balance at the beginning of the year | ? | Additions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? |
| Book value | ? | ? | ? | ? | ? | ? |
| Beijing Yinghe Century Co., Ltd. | ? | 42,940,434 | ? | - | ? | 42,940,434 |
| K-Tronics (Suzhou) technology Co., Ltd. | ? | 8,562,464 | ? | - | ? | 8,562,464 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | ? | 4,423,876 | ? | - | ? | 4,423,876 |
| BOE Healthcare Investment & Management Co., Ltd. | ? | 146,460,790 | ? | - | ? | 146,460,790 |
| SES Imagotag SA Co., Ltd. | ? | 706,406,821 | ? | - | ? | 706,406,821 |
| Chengdu CEC Panda Display Technology Co., Ltd. | (a) | - | ? | 537,038,971 | ? | 537,038,971 |
| Nanjing CEC Panda FPD Technology Co., Ltd. | (b) | - | ? | 155,714,415 | ? | 155,714,415 |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 908,794,385 | ? | 692,753,386 | ? | 1,601,547,771 |
| ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | ? | (4,423,876) | ? | - | ? | (4,423,876) |
| SES Imagotag SA Co., Ltd. | ? | (196,766,653) | ? | - | ? | (196,766,653) |
| ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | (201,190,529) | ? | - | ? | (201,190,529) |
| ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | 707,603,856 | ? | 692,753,386 | ? | 1,400,357,242 |
(a) As disclosed in Note VI.1, the Group obtained the control of Chengdu CEC Panda on17 December 2020. The excess of the combination cost over the Group’s interest inthe fair value of Chengdu CEC Panda’s identifiable assets and liabilities, amounting toRMB 537,038,971, was recognised as goodwill attributable to Chengdu CEC Panda.
(b) As disclosed in Note VI.1, the Group obtained the control of Nanjing CEC Panda on
24 December 2020. The excess of the combination cost over the Group’s interest inthe fair value of Nanjing CEC Panda’s identifiable assets and liabilities, amounting toRMB 155,714,415, was recognised as goodwill attributable to Nanjing CEC Panda.
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd. (“Yinghe Century”), Suzhou K-Tronics, BOE HealthcareInvestment & Management Co., Ltd. (“Health Investment”) and SES Imagotag SA Co., Ltd., Nanjing CEC Panda andChengdu CEC Panda is determined based on the present value of expected future cash flows. When predicting thepresent value of cash flow, the cash flow in the next 5 years is determined based on the financial budget approved by themanagement. The cash flow in the years after the 5-year financial budget will remain stable. The pre-tax discount rate isdetermined with reference to comparable companies and related capital structures.
18 Long-term deferred expenses
| ? | Balance at the beginning of the year | ? | Additions during the year | ? | Decrease during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Payment for public facilities construction and use | 82,702,566 | ? | - | ? | (15,370,224) | ? | 67,332,342 |
| Cost of operating lease assets improvement | 28,066,255 | ? | 5,227,728 | ? | (19,121,157) | ? | 14,172,826 |
| Others | 234,655,588 | ? | 84,706,547 | ? | (101,233,203) | ? | 218,128,932 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 345,424,409 | ? | 89,934,275 | ? | (135,724,584) | ? | 299,634,100 |
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
???
| ? | 2020 | ? | 2019 | ||||
| Item | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment of assets | 122,139,756 | ? | 27,180,254 | ? | 131,848,265 | ? | 29,587,380 |
| Changes in fair value of investments in other equity instruments | 121,789,193 | ? | 18,268,379 | ? | 135,444,338 | ? | 20,316,651 |
| Depreciation of fixed assets | 179,801,722 | ? | 30,341,276 | ? | 147,798,525 | ? | 25,764,520 |
| Assessed value added by investing real estate in subsidiaries | 131,003,100 | ? | 32,750,775 | ? | 136,556,956 | ? | 34,139,239 |
| Accumulated losses | 424,212,759 | ? | 132,565,377 | ? | 361,764,556 | ? | 111,182,956 |
| Others | 64,633,800 | ? | 14,628,946 | ? | 214,882,405 | ? | 40,237,079 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 1,043,580,330 | ? | 255,735,007 | ? | 1,128,295,045 | ? | 261,227,825 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (50,693,919) | ? | ? | ? | (13,074,064) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 205,041,088 | ? | ? | ? | 248,153,761 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Revaluation due to business combinations involving entities not under common control | (2,395,173,489) | ? | (713,559,149) | ? | (2,594,143,798) | ? | (772,597,483) |
| Depreciation of fixed assets | (4,622,699,062) | ? | (721,371,438) | ? | (4,178,779,443) | ? | (643,417,497) |
| Long-term equity investments | (120,141,687) | ? | (18,021,253) | ? | (120,141,687) | ? | (18,021,253) |
| Others | (142,029,410) | ? | (25,343,233) | ? | (161,910,113) | ? | (30,863,188) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (7,280,043,648) | ? | (1,478,295,073) | ? | (7,054,975,041) | ? | (1,464,899,421) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 50,693,919 | ? | ? | ? | 13,074,064 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (1,427,601,154) | ? | ? | ? | (1,451,825,357) |
(2) Details of unrecognised deferred tax assets
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Deductible temporary differences | 16,442,282,572 | ? | 9,708,406,691 |
| Deductible tax losses | 25,680,094,343 | ? | 15,354,248,296 |
| ? | ? | ? | ? |
| Total | 42,122,376,915 | ? | 25,062,654,987 |
As at 31 December 2020, the deductible temporary differences are mainly provisions for the subsidiaries’ impairment ofassets. Due to the uncertainty that there will be sufficient taxable income to cover these deductible differences in futureperiods, the deferred income tax assets were not recognised in consideration of prudence. The change of unrecogniseddeferred tax assets for the year was mainly due to consideration of RMB 8,253,348,675 generated by the acquisition ofNanjing CEC Panda and Chengdu CEC Panda.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
??Year
| Year | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| 2020 | ? | - | ? | 58,901,625 |
| 2021 | ? | 78,927,101 | ? | 80,449,618 |
| 2022 | ? | 416,996,721 | ? | 435,146,446 |
| 2023 | ? | 518,668,889 | ? | 605,118,016 |
| 2024 | ? | 1,129,623,213 | ? | 1,028,882,595 |
| 2025 | ? | 2,987,078,958 | ? | 494,894,618 |
| 2026 | ? | 848,779,232 | ? | 227,711,720 |
| 2027 | ? | 128,972,134 | ? | 133,673,301 |
| 2028 | ? | 5,149,658,963 | ? | 4,215,818,107 |
| 2029 | ? | 10,575,127,795 | ? | 7,359,029,807 |
| 2030 | ? | 2,846,283,820 | ? | - |
| Others | (a) | 999,977,517 | ? | 714,622,443 |
| ? | ? | ? | ? | ? |
| Total | ? | 25,680,094,343 | ? | 15,354,248,296 |
(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
20 Other non-current assets
| ? | Note | 31 December 2020 | ? | 1 January 2020/31 December 2019 |
| ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 3,720,414,204 | ? | 2,482,410,097 |
| Deferred VAT for imported equipment | ? | 2,444,720,228 | ? | 5,027,130,119 |
| Prepayment for fixed assets | ? | 1,476,495,591 | ? | 1,159,943,991 |
| Gains from transfer of exploration right | (a) | 512,802,600 | ? | 512,802,600 |
| Prepayments for construction | ? | 130,568,100 | ? | 43,162,425 |
| Others | ? | 339,969,296 | ? | 266,132,327 |
| ? | ? | ? | ? | ? |
| Total | ? | 8,624,970,019 | ? | 9,491,581,559 |
(a) On 31 December 2020, gains from transfer of exploration right are amount for the transfer of exploration paid by
the Group through Erdos BOE Energy Investment Co., Ltd. to Ministry of Natural Resources of Inner Mongolia.
21 Short-term loans
???
| ? | 31 December 2020 | ||||||
| ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 600,623,333 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | 1,853,305,416 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | 2,872,713,095 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 5,326,641,844 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 346,986,252 | ? | 6.5249 | ? | 2,264,050,596 | ? | Guaranteed |
| - USD | 132,229,237 | ? | 6.5249 | ? | 862,782,549 | ? | Credited |
| - JPY | 2,310,305,559 | ? | 0.0632 | ? | 146,094,482 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 3,272,927,627 | ? | ? |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 8,599,569,471 | ? | ? |
| ? | 2019 | ||||||
| ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 1,706,000,000 | ? | Pledged |
| - RMB | ? | ? | ? | ? | 3,570,500,000 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 5,276,500,000 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 75,000,000 | ? | 6.9762 | ? | 523,215,000 | ? | Pledged |
| - USD | 74,983,524 | ? | 6.9762 | ? | 523,100,057 | ? | Credited |
| - JPY | 685,049,220 | ? | 0.0641 | ? | 43,902,064 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 1,090,217,121 | ? | ? |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 6,366,717,121 | ? | ? |
The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2020 (2019: 0.40% to 4.35%).
As at 31 December 2020, no short-term loan was past due (2019: Nil).
22 Bills payable
??
?
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Bank acceptance bills | 1,130,824,139 | ? | 1,812,309,507 |
| Commercial acceptance bills | 100,709,756 | ? | 216,608,473 |
| ? | ? | ? | ? |
| Total | 1,231,533,895 | ? | 2,028,917,980 |
There is no due but unpaid bill payable at the end of the year. The bills above are all due within one year.
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Payables to related parties | 108,759,439 | ? | 77,847,042 |
| Payables to third parties | 27,055,412,243 | ? | 21,105,720,511 |
| ? | ? | ? | ? |
| Total | 27,164,171,682 | ? | 21,183,567,553 |
(2) The Group’s accounts payable by currency are as follows:
???
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 18,877,719,728 | ? | -? | ? | ? | ? | 14,353,247,507 |
| - USD | 1,065,301,852 | ? | 6.5249 | ? | 6,950,988,054 | ? | 869,901,566 | ? | 6.9762 | ? | 6,068,607,305 |
| - JPY | 7,851,845,994 | ? | 0.0632 | ? | 496,236,667 | ? | 10,667,212,793 | ? | 0.0641 | ? | 683,768,340 |
| - Other foreign currencies | ? | ? | ? | ? | 839,227,233 | ? | -? | ? | ? | ? | 77,944,401 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 27,164,171,682 | ? | ? | ? | ? | ? | 21,183,567,553 |
As at 31 December 2020, the Group had no individually significant accounts payable ageing more than one year.
24 Advance payments received
??
Item
| Item | 31 December 2020 | ? | 1 January 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? | ? |
| Advances from related parties | 6,018,519 | ? | 60,990 | ? | 60,990 |
| Advances from third parties | 1180,022,230 | ? | 123,091,845 | ? | 1,260,671,795 |
| ? | ? | ? | ? | ? | ? |
| Total | 124,040,749 | ? | 123,152,835 | ? | 1,260,732,785 |
25 Contract liabilities
| Item | 31 December 2020 | ? | 1 January 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? | ? |
| Sale of goods | 3,440,720,535 | ? | 1,083,074,827 | ? | - |
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale contracts. The Group receivesa certain proportion of advances as agreed in contract when entering into the contract with customers. The revenuerelated to the contracts will be recognised until the Group satisfies its performance obligation.
Significant changes in the contract liabilities of the Group are as follows:
?
?
| ? | 2020 |
| ? | RMB |
| ? | ? |
| Balance under previous revenue standard | - |
| Adjustment on initial application of the new revenue standard | 1,083,074,827 |
| ? | ? |
| Balance at the beginning of the year after adjustment | 1,083,074,827 |
| ? | ? |
| Revenue recognised that was included in the contract liability balance at the beginning of year | (985,358,861) |
| Increase of contract liabilities due to cash received at the end of the year | 3,343,004,569 |
| ? | ? |
| Balance at 31 December 2020 | 3,440,720,535 |
26 Employee benefits payable
(1) Employee benefits payable:
??
| ? | Note | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,317,952,892 | ? | 14,505,206,045 | ? | (13,089,586,475) | ? | 3,733,572,462 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 30,809,715 | ? | 603,373,645 | ? | (612,555,327) | ? | 21,628,033 |
| Termination benefits | ? | 24,982,847 | ? | 6,049,760 | ? | (27,609,305) | ? | 3,423,302 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,373,745,454 | ? | 15,114,629,450 | ? | (13,729,751,107) | ? | 3,758,623,797 |
| ? | Note | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,175,807,665 | ? | 11,808,187,563 | ? | (11,666,042,336) | ? | 2,317,952,892 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 34,353,845 | ? | 892,704,459 | ? | (896,248,589) | ? | 30,809,715 |
| Termination benefits | ? | 14,769,661 | ? | 21,224,469 | ? | (11,011,283) | ? | 24,982,847 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,224,931,171 | ? | 12,722,116,491 | ? | (12,573,302,208) | ? | 2,373,745,454 |
(2) Short-term employee benefits
??
?
| ? | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 1,884,102,804 | ? | 12,377,361,943 | ? | (11,076,670,492) | ? | 3,184,794,255 |
| Staff welfare | - | ? | 813,811,158 | ? | (813,811,158) | ? | - |
| Social insurance | 32,323,849 | ? | 428,892,729 | ? | (428,549,166) | ? | 32,667,412 |
| Medical insurance | 28,537,074 | ? | 397,973,661 | ? | (396,959,327) | ? | 29,551,408 |
| Work-related injury insurance | 1,592,189 | ? | 17,318,426 | ? | (17,296,483) | ? | 1,614,132 |
| Maternity insurance | 2,194,586 | ? | 13,600,642 | ? | (14,293,356) | ? | 1,501,872 |
| Housing fund | 27,503,744 | ? | 572,216,189 | ? | (572,578,874) | ? | 27,141,059 |
| Labour union fee, staff and workers’ education fee | 345,146,487 | ? | 294,743,728 | ? | (172,165,296) | ? | 467,724,919 |
| Staff bonus and welfare fund | 7,282,591 | ? | 13,270,618 | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 21,593,417 | ? | 4,909,680 | ? | (25,811,489) | ? | 691,608 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,317,952,892 | ? | 14,505,206,045 | ? | (13,089,586,475) | ? | 3,733,572,462 |
???
| ? | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 1,817,946,511 | ? | 9,760,123,875 | ? | (9,693,967,582) | ? | 1,884,102,804 |
| Staff welfare | - | ? | 726,894,238 | ? | (726,894,238) | ? | - |
| Social insurance | 31,310,324 | ? | 506,406,607 | ? | (505,393,082) | ? | 32,323,849 |
| Medical insurance | 27,150,184 | ? | 458,152,049 | ? | (456,765,159) | ? | 28,537,074 |
| Work-related injury insurance | 2,048,914 | ? | 24,547,049 | ? | (25,003,774) | ? | 1,592,189 |
| Maternity insurance | 2,111,226 | ? | 23,707,509 | ? | (23,624,149) | ? | 2,194,586 |
| Housing fund | 22,081,660 | ? | 534,751,562 | ? | (529,329,478) | ? | 27,503,744 |
| Labour union fee, staff and workers’ education fee | 274,477,650 | ? | 258,158,151 | ? | (187,489,314) | ? | 345,146,487 |
| Staff bonus and welfare fund | 7,282,591 | ? | - | ? | - | ? | 7,282,591 |
| Other short-term employee benefits | 22,708,929 | ? | 21,853,130 | ? | (22,968,642) | ? | 21,593,417 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,175,807,665 | ? | 11,808,187,563 | ? | (11,666,042,336) | ? | 2,317,952,892 |
(3) Post-employment benefits - defined contribution plans
| ? | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 26,271,958 | ? | 547,052,137 | ? | (554,271,266) | ? | 19,052,829 |
| Unemployment insurance | 1,072,077 | ? | 23,115,986 | ? | (23,077,129) | ? | 1,110,934 |
| Annuity | 3,465,680 | ? | 33,205,522 | ? | (35,206,932) | ? | 1,464,270 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,809,715 | ? | 603,373,645 | ? | (612,555,327) | ? | 21,628,033 |
??
?
| ? | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 29,206,273 | ? | 835,731,675 | ? | (838,665,990) | ? | 26,271,958 |
| Unemployment insurance | 964,893 | ? | 30,896,288 | ? | (30,789,104) | ? | 1,072,077 |
| Annuity | 4,182,679 | ? | 26,076,496 | ? | (26,793,495) | ? | 3,465,680 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 34,353,845 | ? | 892,704,459 | ? | (896,248,589) | ? | 30,809,715 |
27 Taxes payable
??
?
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Value-added tax | 40,678,414 | ? | 104,968,721 |
| Corporate income tax | 442,103,385 | ? | 225,781,442 |
| Individual income tax | 60,823,097 | ? | 46,299,098 |
| City construction tax | 239,633,339 | ? | 159,162,466 |
| Education surcharges and local education surcharges | 171,225,887 | ? | 114,515,524 |
| Others | 123,222,747 | ? | 80,268,878 |
| ? | ? | ? | ? |
| Total | 1,077,686,869 | ? | 730,996,129 |
28 Other payables
| ? | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | 1,946,267 | ? | 721,325,540 |
| Dividends payable | ? | 6,451,171 | ? | 14,568,242 |
| Others | (1) | 32,859,311,586 | ? | 23,834,695,828 |
| ? | ? | ? | ? | ? |
| Total | ? | 32,867,709,024 | ? | 24,570,589,610 |
(1) Others
(a) The Group’s other payables by category are as follows:
???
| ? | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Projects and equipment | ? | 22,081,009,426 | ? | 19,265,984,958 |
| Fund transaction (Note) | ? | 3,044,729,475 | ? | 25,236,605 |
| Equity acquisition | VI. 1 | 2,236,488,561 | ? | 338,596 |
| Deferred VAT for imported equipment | ? | 1,920,558,529 | ? | 2,277,269,457 |
| Repurchase obligation of restricted shares | V. 40 | 875,333,536 | ? | - |
| Accrued water and electricity charges and freight | ? | 711,995,694 | ? | 475,398,269 |
| Security deposits | ? | 576,740,323 | ? | 565,971,653 |
| External agency fee | ? | 95,378,987 | ? | 95,525,591 |
| Others | ? | 1,317,077,055 | ? | 1,128,970,699 |
| ? | ? | ? | ? | ? |
| Total | ? | 32,859,311,586 | ? | 23,834,695,828 |
The Group’s significant other payables aged over one year are payables of projects and equipment.
Note: The other payables by the Group to CEC Panda as at 31 December 2020 are amounts and interests due tooriginal controlling shareholders of Nanjing CEC Panda and Chengdu CEC Panda acquired this year, withinterest rates of 2.175% and 0%.
(c) The Group’s other payables by currency are as follows:
| ? | 31 December 2020 | ? | 31 December 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 25,021,226,671 | ? | ? | ? | ? | ? | 14,900,017,469 |
| USD | 834,593,184 | ? | 6.5249 | ? | 5,445,637,067 | ? | 939,445,424 | ? | 6.9762 | ? | 6,553,759,167 |
| JPY | 36,887,427,437 | ? | 0.0632 | ? | 2,331,285,414 | ? | 36,516,333,058 | ? | 0.0641 | ? | 2,340,696,949 |
| Other foreign currencies | ? | ? | ? | ? | 61,162,434 | ? | ? | ? | ? | ? | 40,222,243 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 32,859,311,586 | ? | ? | ? | ? | ? | 23,834,695,828 |
29 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-term loans and long-termpayables due within one year.
??
?
| ? | ? | 31 December 2020 | ||||||
| ? | ? | ? | ? | ? | ? | RMB/ | ? | Credited /collateralised |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB equivalents | ? | guaranteed/pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 28,108,784 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 5,654,665,718 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 1,562,733 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 8,650,207,807 | ? | Credited |
| - USD | ? | 1,397,735,847 | ? | 6.5249 | ? | 9,120,086,628 | ? | Collateralised |
| - EUR | ? | 415,746 | ? | 8.0250 | ? | 3,336,362 | ? | Credited |
| - EUR | ? | 7,920,370 | ? | 8.0250 | ? | 63,560,969 | ? | Pledged |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | V. 31 | ? | ? | ? | ? | 23,521,529,001 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Long-term payables | V. 33 | ? | ? | ? | ? | 979,021,120 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 24,500,550,121 | ? | ? |
| ? | ? | 31 December 2019 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 3,548,760,000 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 5,660,431,884 | ? | Credited |
| - RMB | ? | ? | ? | ? | ? | 27,187,500 | ? | Pledged |
| - USD | ? | 1,192,400,000 | ? | 6.9762 | ? | 8,318,420,880 | ? | Collateralised |
| - EUR | ? | 144,950,000 | ? | 7.8155 | ? | 1,132,856,725 | ? | Pledged |
| - EUR | ? | 415,746 | ? | 7.8155 | ? | 3,249,263 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | V. 31 | ? | ? | ? | ? | 18,690,906,252 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Long-term payables | V. 33 | ? | ? | ? | ? | 158,374,767 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 18,849,281,019 | ? | ? |
The interest rate of RMB long-term loans due within one year for the Group ranged from 0% to 5.88% in 2020 (2019:
from 0% to 5.64%).
30 Other current liabilities
??
Item
| Item | ? | 31 December 2020 | ? | 1 January 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? |
| Warranty provisions | ? | 1,615,534,790 | ? | 940,668,393 | ? | 940,668,393 |
| Refund liability | ? | 144,834,876 | ? | 79,264,710 | ? | - |
| Pending output VAT | ? | 278,791,002 | ? | 64,391,101 | ? | 9,885,978 |
| Others | ? | 155,556,184 | ? | 63,184,144 | ? | 63,184,144 |
| ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,194,716,852 | ? | 1,147,508,348 | ? | 1,013,738,515 |
The other current liabilities of the Group were warranty provision accrued. The warranty provision mainly relates to theexpected after-sales repair warranty to the customers. The provision is estimated by the management, based on historicalclaim experience and current actual sales outcomes.
31 Long-term loans
| ? | ? | 31 December 2020 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 564,470,036 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 58,205,922,053 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 3,245,238,880 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 48,593,938,457 | ? | Credited |
| - USD | ? | 6,647,918,240 | ? | 6.5249 | ? | 43,377,001,724 | ? | Collateralised |
| - EUR | ? | 67,323,142 | ? | 8.0250 | ? | 540,268,215 | ? | Pledged |
| - EUR | ? | 180,368,445 | ? | 8.0250 | ? | 1,447,456,771 | ? | Credited |
| Less: Long-term loans due within one year | V. 29 | ? | ? | ? | ? | 23,521,529,001 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 132,452,767,135 | ? | ? |
??
?
| ? | ? | 31 December 2019 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 590,727,344 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 45,290,913,200 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 760,000,000 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 38,988,142,361 | ? | Credited |
| - USD | ? | 5,603,270,000 | ? | 6.9762 | ? | 39,089,532,174 | ? | Collateralised |
| - EUR | ? | 3,721,275 | ? | 7.8155 | ? | 29,083,625 | ? | Credited |
| - EUR | ? | 214,075,000 | ? | 7.8155 | ? | 1,673,103,163 | ? | Pledged |
| Less: Long-term loans due within one year | V. 29 | ? | ? | ? | ? | 18,690,906,252 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 107,730,595,615 | ? | ? |
The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2020 (2019: from 0% to
5.64%).The increase in the upper limit of the interest rate of RMB long-term loans in 2020 is mainly due to the higherinterest rate of Nanjing CEC Panda, which is newly included in the scope of consolidated financial statements.32 Debentures payable
(1) Debentures payable
??
Item
| Item | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Debentures payable | 398,971,739 | ? | 387,878,384 |
| Less: Debentures payable due within one year | - | ? | - |
| ? | ? | ? | ? |
| Total | 398,971,739 | ? | 387,878,384 |
(2) The movements of debentures payable:
| Debenture | Face value | ? | Issuance date | ? | Maturity period | ? | Issuance amount | ? | Balance at the beginning of the year | ? | Increase during the year | ? | Interest at face value | ? | Amortisation of discounts or premium | ? | Repayment during the period | ? | Translation differences | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Euro PP | EUR 10,000,000 | ? | 2016.12.29 | ? | 7 years | ? | EUR 10,000,000 | ? | 77,674,350 | ? | - | ? | 2,764,825 | ? | 108,611 | ? | (2,764,825) | ? | 2,083,842 | ? | 79,866,803 |
| Euro PP | EUR 30,000,000 | ? | 2017.03.29 | ? | 6 years | ? | EUR 30,000,000 | ? | 233,145,481 | ? | - | ? | 8,294,475 | ? | 401,058 | ? | (8,294,475) | ? | 6,256,001 | ? | 239,802,540 |
| Euro PP | EUR 10,000,000 | ? | 2019.07.22 | ? | 6 years | ? | EUR 10,000,000 | ? | 77,058,553 | ? | - | ? | 3,594,273 | ? | 175,447 | ? | (3,594,273) | ? | 2,068,396 | ? | 79,302,396 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | ? | ? | ? | 387,878,384 | ? | - | ? | 14,653,573 | ? | 685,116 | ? | (14,653,573) | ? | 10,408,239 | ? | 398,971,739 |
SES Imagotag SA Co., Ltd. issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29 December 2016 and 29 March 2017. The coupon rate ofthe bonds is 3.50% and the maturity date is 29 December 2023. Interest payments are made annually and the principle amount will be paid when the bonds become due.
SES Imagotag SA Co., Ltd. issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019. The coupon rate of the bond is 4.55% and thematurity date is 22 July 2025. Interest payments are made annually, and the principle amount will be paid when the bond becomes due.
33 Long-term payables
| Item | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Obligations under finance leases | (1) | 3,093,196,803 | ? | 1,142,895,591 |
| Less: Obligations under finance leases due within one year | ? | 979,021,120 | ? | 158,374,767 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,114,175,683 | ? | 984,520,824 |
(1) Details of obligations under finance leases included in long-term payables
As at 31 December, the total future minimum lease payments under finance leases were as follows:
??Minimum lease payments
| Minimum lease payments | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 1,175,045,108 | ? | 240,790,871 |
| After 1 year but within 2 years (inclusive) | 1,061,063,290 | ? | 211,473,668 |
| After 2 years but within 3 years (inclusive) | 559,312,651 | ? | 198,335,280 |
| After 3 years | 840,557,857 | ? | 866,709,073 |
| ? | ? | ? | ? |
| Sub-total | 3,635,978,906 | ? | 1,517,308,892 |
| ? | ? | ? | ? |
| Less: Unrecognised finance charges | 542,782,103 | ? | 374,413,301 |
| ? | ? | ? | ? |
| Total | 3,093,196,803 | ? | 1,142,895,591 |
The Group leased back some of its sold machinery, equipment and constructions in progress. The sales of the assets arerelated to the leases, and the Group basically can ensure to buy back the asset after lease term. Therefore, the Group adoptsthe accounting treatment of collateral loans.
34 Provisions
| Name of investee | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Pending implementation of the agreement | - | ? | 16,457,010 |
In 2009, the Group ceased producing several products and stopped fulfilling the purchase contract related to production. Dueto the indemnity incurred accordingly, the Group accrued provisions according to reasonable estimation of loss.
35 Deferred income
??Item
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Amounts recognised in other income | ? | Other changes | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Related to assets | 1,959,522,274 | ? | 1,420,632,945 | ? | (310,532,631) | ? | (222,882,969) | ? | 2,846,739,619 |
| Related to income | 244,878,292 | ? | 1,628,055,408 | ? | (471,110,335) | ? | (2,331,516) | ? | 1,399,491,849 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,204,400,566 | ? | 3,048,688,353 | ? | (781,642,966) | ? | (225,214,485) | ? | 4,246,231,468 |
36 Other non-current liabilities
??
Item
| Item | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Contribution of non-controlling interests with redemption provisions | (1) | 3,710,474,960 | ? | 3,699,127,228 |
| Deferred VAT for imported equipment | ? | 1,472,958,998 | ? | 4,409,269,015 |
| Others | ? | 76,567,485 | ? | 92,146,169 |
| ? | ? | ? | ? | ? |
| Total | ? | 5,260,001,443 | ? | 8,200,542,412 |
(1) Contribution of non-controlling interests with redemption provisions
The contribution of non-controlling interests with redemption provisions is mainly due to the redemption obligation of theCompany to the non-controlling interests of Fuzhou BOE and BOE Smart Retail (Hong Kong) Co., Ltd. The Companyrecognises the above non-controlling interests contribution as a financial liability which is subsequently measured at the costof amortisation. The carrying amount as at 31 December 2020 is RMB 3,710,474,960.
37 Share capital
| ? | Balance at the beginning of the year | ? | Balance at the end of the year |
| ? | ? | ? | ? |
| Total shares | 34,798,398,763 | ? | 34,798,398,763 |
38 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the year are set out as follows:
??Outstanding financial instruments
| Outstanding financial instruments | ? | Issuance date | ? | Accounting classification | ? | Interest rate | ? | Issuance price | ? | Quantity | ? | Amount | ? | Maturity date or renewal status | ? | Conditions for conversion | ? | Conversion status |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 19BOEY1 | ? | 29 October 2019 | ? | Equity instrument | ? | 4.0% | ? | RMB 100/bond | ? | 80 million | ? | RMB 8 billion | ? | 3+N years | ? | Not Applicable | ? | Not Applicable |
| 20BOEY1 | ? | 28 February 2020 | ? | Equity instrument | ? | 3.6% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not Applicable | ? | Not Applicable |
| 20BOEY2 | ? | 19 March 2020 | ? | Equity instrument | ? | 3.5% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not Applicable | ? | Not Applicable |
| 20BOEY3 | ? | 27 April 2020 | ? | Equity instrument | ? | 3.5% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not Applicable | ? | Not Applicable |
| Total | ? | ? | ? | ? | ? | ? | ? | ? | ? | 140 million | ? | RMB 14 billion | ? | ? | ? | ? | ? | ? |
(2) Major terms
On 29 October 2019, with the approval document No. 1801 [2019] of the China Securities Regulatory Commission(“CSRC”), the Company successfully issued a renewable corporate bond to qualified investors. The full name of the bondwas Renewable Corporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (theFirst Phase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020 and 27 April 2020, theCompany issued renewable corporate bonds to qualified investors. The full name of these bonds was Renewable CorporateBond Publicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1、20BOEY2、20BOEY3 respectively (“2020 bond”).
Both 2019 bond and 2020 bond have a base term of 3 years and take every three interest-bearing years as a period. TheCompany is entitled to choose to extend the maturity by 1 period at the end of the agreed base term or at the end of eachextended period, or choose to fully redeem the 2019 bond and 2020 bond at the end of the period. The nominal interest rate ofthe 2019 bond and 2020 bond is fixed during the first period, and then is reset once every period. The nominal interest rate inthe first period is the initial benchmark interest rate plus the initial spread, and the nominal interest rate in the subsequentperiod is adjusted to the current benchmark interest rate plus the initial spread and 300 basis points. Therefore, when theCompany exercises the renewal option, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase sharply. The 2019 bond and 2020 bond have an issuer’s right to defer the payment of interest.Unless a mandatory interest payment event occurs (including distributions to ordinary shareholders and decrease of registeredcapital). At each interest payment date of the bonds, the Company may choose at its discretion whether to defer the paymentof the current interest as well as all the deferred interests and the yields under this term until the next interest payment datewithout being subjected to any limit on the number of interest deferring attempts.
The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14,000,000,000 in total, and the Company considersthat the renewable corporate bonds do not meet the definition of financial liabilities, and therefore will charge the totalamount of the issue to other equity instruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including and perpetual bonds) that remain outstanding at the end of the year:
| Outstanding financial instruments | At the beginning of the year | Additions during the year | Accumulated interest | At the end of the year | ||||||||||
| Quantity | ? | Carrying amount | Quantity | ? | Carrying amount | Charge for the year | Paid during the year | Quantity | ? | Carrying amount | ||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| 19BOEY1 | 80,000,000 | 8,013,156,853 | - | - | 320,876,712 | (320,000,000) | 80,000,000 | 8,014,033,565 | ||||||
| 20BOEY1 | - | - | 20,000,000 | 1,989,179,245 | 61,431,233 | - | 20,000,000 | 2,050,610,478 | ||||||
| 20BOEY2 | - | - | 20,000,000 | 1,989,320,755 | 55,864,110 | - | 20,000,000 | 2,045,184,865 | ||||||
| 20BOEY3 | - | - | 20,000,000 | 1,989,415,094 | 47,753,425 | - | 20,000,000 | 2,037,168,519 | ||||||
| Total | 80,000,000 | 8,013,156,853 | 60,000,000 | 5,967,915,094 | 485,925,480 | (320,000,000) | 140,000,000 | 14,146,997,427 | ||||||
(4) Relevant information of amounts attributable to holders of equity instruments
???
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Attributable to shareholders of the Company | 103,276,766,835 | ? | 95,058,129,055 |
| - Equity attributable to ordinary shareholders of the Company | 89,129,769,408 | ? | 87,044,972,202 |
| - Equity attributable to holders of the Company’s other equity instruments | 14,146,997,427 | ? | 8,013,156,853 |
| Equity attributable to non-controlling shareholders | 70,120,967,879 | ? | 45,999,567,919 |
| - Equity attributable to non-controlling ordinary shareholders | 70,120,967,879 | ? | 45,999,567,919 |
| - Equity attributable to non-controlling shareholders of other equity instruments | - | ? | - |
(5) Accrued interest on holders of other equity instruments
In 2020, as the above-mentioned issued renewable corporate bonds are cumulative other equity instruments, the Companyaccrued interest of RMB 485,925,480 on renewable corporate bonds from undistributed profits and paid interest of RMB320,000,000 on renewable corporate bonds.
39 Capital reserve
| Item | Note | Share premiums | ? | Other capital reserves | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 37,546,517,053 | ? | 806,725,311 | ? | 38,353,242,364 |
| Add: Change in shareholding ratio of subsidiaries | ? | - | ? | 76,020,559 | ? | 76,020,559 |
| Equity-settled share-based payments | XI | - | ? | (946,466,251) | ? | (946,466,251) |
| Other movements in equity of associates | V. 11 | - | ? | 7,011,400 | ? | 7,011,400 |
| Less: Disposal of subsidiaries to equity method accounting | ? | - | ? | 46,470,087 | ? | 46,470,087 |
| Others | ? | - | ? | 7,682,051 | ? | 7,682,051 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 37,546,517,053 | ? | (110,861,119) | ? | 37,435,655,934 |
40 Treasury shares
??Item
| Item | At the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | At the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Treasury shares | - | ? | 1,998,774,694 | ? | (962,476,186) | ? | 1,036,298,508 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | - | ? | 1,998,774,694 | ? | (962,476,186) | ? | 1,036,298,508 |
According to the Proposal of Repurchase of Certain Public Shares by the Company deliberated and adopted in the fifteenthmeeting of the ninth session of the Board of Directors meeting held on 27 August 2020, the Company completed repurchaseof shares through centralised price bidding before 3 September 2020. The Company repurchased 349,999,933 A shares intotal by paying total consideration of RMB 1,998,774,694.
The repurchased shares are placed with the designated securities account for the use of Company’s repurchase, during whichthe Company is not entitled to have voting rights at the shareholders’ general meeting, or rights of profit appropriations,increasing share capital by transfer of reserves, allotment of share and pledge etc. The repurchased shares will be used forimplementing incentive plan. For shares failed to be used in this way within 36 months after being repurchased, the shareswill be cancelled by performing related procedures.
As disclosed in Note XI, there is a vesting period for the restricted share incentive plans granted by the Group in 2020. If theincentive object resigns during the vesting period, the Company will repurchase the unlocked restricted shares at the exerciseprice. Therefore, the Company recognized a total of RMB 875,333,536 in restricted share subscription funds from restrictedshare incentive objects as other payables—the Repurchased obligation of restricted shares (Note V. 28 (1)) and TreasuryShares. The difference of RMB 962,476,186 between the amount paid by the Company to repurchase the above-mentionedTreasury Shares from the public market and the repurchase obligation is transferred to the Capital reserve-Other capitalreserve.
41 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||||
| Item | Balance at the end of previous year attributable to shareholders of the Company | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Net-of-tax amount attributable to shareholders of the Company | ? | Net-of-tax amount attributable to non-controlling interests | ? | Less: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year attributable to shareholders of the Company |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Items that will not be reclassified to profit or loss | 140,076,335 | ? | 118,453,992 | ? | 2,048,272 | ? | 116,405,720 | ? | - | ? | (195,070,158) | ? | 61,411,897 |
| Including: Other comprehensive income recognised under equity method | 308,546,648 | ? | 136,381,254 | ? | - | ? | 136,381,254 | ? | - | ? | (250,925,408) | ? | 194,002,494 |
| Changes in fair value of investments in other equity instruments | (168,470,313) | ? | (17,927,262) | ? | 2,048,272 | ? | (19,975,534) | ? | - | ? | 55,855,250 | ? | (132,590,597) |
| Items that may be reclassified to profit or loss | (144,642,974) | ? | 49,539,936 | ? | - | ? | 61,033,005 | ? | (11,493,069) | ? | - | ? | (83,609,969) |
| Including: Other comprehensive income recognised under equity method | - | ? | 11,835 | ? | - | ? | 11,835 | ? | - | ? | - | ? | 11,835 |
| Translation differences arising from translation of foreign currency financial statements | (144,642,974) | ? | 49,528,101 | ? | - | ? | 61,021,170 | ? | (11,493,069) | ? | - | ? | (83,621,804) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (4,566,639) | ? | 167,993,928 | ? | 2,048,272 | ? | 177,438,725 | ? | (11,493,069) | ? | (195,070,158) | ? | (22,198,072) |
?
42 Surplus reserve
| Item | Balance at the beginning of the year | ? | Add: Changes in accounting policies | ? | Balance at the beginning of the year after adjustment | ? | Additions during the year | ? | Other changes during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Statutory surplus reserve | 1,226,468,400 | ? | 533,906,114 | ? | 1,760,374,514 | ? | 373,919,158 | ? | 20,451,688 | ? | 2,154,745,360 |
| Discretionary surplus reserve | 289,671,309 | ? | ? | ? | 289,671,309 | ? | - | ? | - | ? | 289,671,309 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,516,139,709 | ? | 533,906,114 | ? | 2,050,045,823 | ? | 373,919,158 | ? | 20,451,688 | ? | 2,444,416,669 |
43 Retained earnings
??
Item
| Item | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year (before adjustment) | ? | 12,381,758,005 | ? | N/A |
| Add: Changes in accounting policies | ? | (533,906,114) | ? | N/A |
| Retained earnings at the beginning of the year (after adjustment) | ? | 11,847,851,891 | ? | 11,977,119,533 |
| Add: Net profits for the year attributable to shareholders of the Company | ? | 5,035,627,952 | ? | 1,918,643,871 |
| Less: Appropriation for statutory surplus reserve | ? | 373,919,158 | ? | 368,556,446 |
| Interest on holders of other equity instruments | V. 38 | 485,925,480 | ? | 56,109,589 |
| Dividends to ordinary shares | ? | 695,967,975 | ? | 1,043,951,963 |
| Transfer of other comprehensive income to retained earnings | (a) | (171,164,417) | ? | 45,387,401 |
| Effect of accounting for disposal of subsidiaries to equity method | ? | (3,454,053) | ? | - |
| Others | (7,508,922) | - | ||
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 15,509,794,622 | ? | 12,381,758,005 |
According to the Annual Shareholders’ Meeting for 2019 held on 29 May 2020, the Company distributed cash dividends toall shareholders on 3 July 2020, with RMB 0.2 every 10 shares (2019: RMB 0.3) and a total dividend of RMB 695,967,975(2019: RMB 1,043,951,963) distributed.
As at 31 December 2020, the consolidated retained earnings attributable to the Company included appropriation to surplusreserves made by the Company’s subsidiaries amounting to RMB 2,958,648,210 (2019: RMB 2,197,635,471).
(a) The amounts transferred from other comprehensive income to retained earnings in
2020 includes RMB 225,832,867 of associates’ gains from disposal of other equityinstrument investments included in retained earnings and RMB 54,668,450 of the Grouplosses from disposals of other equity instrument investments included in retainedearnings.
44 Operating income and operating costs
| ? | 2020 | ? | 2019 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 131,839,051,171 | ? | 107,017,283,266 | ? | 112,869,129,027 | ? | 96,547,463,221 |
| Other operating activities | 3,713,518,558 | ? | 1,805,839,490 | ? | 3,190,461,137 | ? | 1,898,806,075 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 135,552,569,729 | ? | 108,823,122,756 | ? | 116,059,590,164 | ? | 98,446,269,296 |
| Including: Income related to the new revenue standard | 134,406,942,755 | ? | 108,402,500,151 | ? | Not applicable | ? | Not applicable |
| Revenue related to the lease standard | 1,145,626,974 | ? | 420,622,605 | ? | Not applicable | ? | Not applicable |
| ? | ? | ? | ? | ? | ? | ? | ? |
Details of operating income:
??
?
| ? | 2019 |
| ? | ? |
| Operating income from principal activities | ? |
| - Sale of goods | 112,869,129,027 |
| Other operating income | ? |
| - Sales of raw materials | 1,049,219,352 |
| - Rental income of investment properties | 1,164,355,875 |
| - Others | 976,885,910 |
| ? | ? |
| Total | 116,059,590,164 |
Information on income of principal activities has been included in Note XIV.
45 Taxes and surcharges
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Property tax | 401,351,553 | ? | 352,251,436 |
| City maintenance and construction tax | 266,845,054 | ? | 190,993,833 |
| Education surcharges and local education surcharges | 192,450,398 | ? | 136,854,543 |
| Stamp duty | 136,589,158 | ? | 108,178,185 |
| Land use tax | 45,748,963 | ? | 43,676,217 |
| Others | 35,914,959 | ? | 29,146,391 |
| ? | ? | ? | ? |
| Total | 1,078,900,085 | ? | 861,100,605 |
46 Selling and distribution expenses
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Warranty provisions | 1,616,634,833 | ? | 927,748,774 |
| Staff costs | 965,992,069 | ? | 698,586,373 |
| Logistics | 73,934,798 | ? | 589,504,713 |
| Others | 481,157,301 | ? | 702,025,520 |
| ? | ? | ? | ? |
| Total | 3,137,719,001 | ? | 2,917,865,380 |
47 General and administrative expenses
??
?
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Staff cost | 2,869,736,815 | ? | 2,456,007,113 |
| Repair expense | 1,658,988,344 | ? | 1,221,489,432 |
| Depreciation and amortisation | 726,690,746 | ? | 586,695,417 |
| Others | 948,184,616 | ? | 950,756,065 |
| ? | ? | ? | ? |
| Total | 6,203,600,521 | ? | 5,214,948,027 |
48 Research and development expenses
???
| ? | 2020 | ? | 2019 |
| Staff cost | 3,621,724,397 | ? | 2,764,095,983 |
| Material expenses | 1,395,642,077 | ? | 1,517,000,923 |
| Depreciation and amortisation | 1,501,402,837 | ? | 1,234,104,120 |
| Others | 1,103,828,614 | ? | 1,184,772,214 |
| ? | ? | ? | ? |
| Total | 7,622,597,925 | ? | 6,699,973,240 |
49 Financial expenses
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Interest expenses from loans | 4,807,347,590 | ? | 3,651,979,758 |
| Less: Borrowing costs capitalised | 1,309,649,881 | ? | 1,126,843,549 |
| Interest income from bank deposits | (873,376,712) | ? | (840,190,118) |
| Net exchange (gains)/losses | (73,110,352) | ? | 226,570,667 |
| Other financial expenses | 98,943,327 | ? | 82,633,500 |
| Total | 2,650,153,972 | ? | 1,994,150,258 |
The capitalization rate used by the Group to determine the capitalization amount of borrowing costs was1.77% - 3.81%(2019: 3.73% - 4.84%) for the year.
50 Other income
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Government grants related to assets | 310,532,631 | ? | 316,744,767 |
| Government grants related to income | 2,016,628,502 | ? | 2,287,022,704 |
| Others | 10,544,684 | ? | 1,891,240 |
| ? | ? | ? | ? |
| Total | 2,337,705,817 | ? | 2,605,658,711 |
The amount of government subsidies received by the Group in 2020 and directly included in other income was RMB1,545,518,167.
51 Investment income
???
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the equity method | V. 11 | 444,407,986 | ? | 200,020,686 |
| Investment income from disposal of long-term equity investments | ? | 280,374,469 | ? | 48,846,682 |
| Dividend income from investments in other equity instruments | V. 12 | 26,376,687 | ? | 9,984,205 |
| Including: Dividend income from investments in other equity instruments derecognised during the year | ? | - | ? | 471,354 |
| Dividend income from investments in other equity instruments held at the balance sheet date | ? | 26,376,687 | ? | 9,512,851 |
| Investment income from disposal of financial assets held for trading | ? | 18,157,931 | ? | 46,195,167 |
| Interest income from debt investments | 22,213,061 | 19,869,375 | ||
| Investment income from disposal of debt investments | 10,391,153 | 17,704,576 | ||
| Gain from remeasurement of remaining equity interests to fair value upon the loss of control | VI. 2 | 95,969,822 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 897,891,109 | ? | 342,620,691 |
52 Gains from changes in fair value
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Financial assets held for trading | 31,936,339 | ? | 66,473,077 |
| Gains from changes in fair value of derivative financial liabilities | - | ? | 71,000,000 |
| ? | ? | ? | ? |
| Total | 31,936,339 | ? | 137,473,077 |
53 Credit losses
??
Item
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Accounts receivable | (2,339,323) | ? | 22,016,906 |
| Other receivables | 511,804 | ? | 6,245,721 |
| ? | ? | ? | ? |
| Total | (1,827,519) | ? | 28,262,627 |
54 Impairment losses
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Impairment losses of inventories | 2,509,374,165 | ? | 1,986,350,231 |
| Impairment losses of fixed assets | 505,201,450 | ? | 160,345,034 |
| Impairment losses of long-term equity investments | 265,641,984 | ? | 240,721,340 |
| Impairment losses of goodwill | - | ? | 196,766,653 |
| Impairment losses of contract assets | 207,800 | ? | - |
| ? | ? | ? | ? |
| Total | 3,280,425,399 | ? | 2,584,183,258 |
55 Gains from asset disposals
??Item
| Item | 2020 | ? | 2019 | ? | Amount recognised in extraordinary gain and loss in 2020 |
| ? | ? | ? | ? | ? | ? |
| Gains from disposal of fixed assets | 11,403,591 | ? | 79,029 | ? | 11,403,591 |
| Gains from disposal of intangible assets | 7,658,255 | ? | - | ? | 7,658,255 |
| ? | ? | ? | ? | ? | ? |
| Total | 19,061,846 | ? | 79,029 | ? | 19,061,846 |
56 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
| Item | 2020 | ? | 2019 | ? | Amount recognised in extraordinary gain and loss in 2020 |
| ? | ? | ? | ? | ? | ? |
| Government grants | 4,946,559 | ? | 36,867,390 | ? | 4,946,559 |
| Others | 115,557,069 | ? | 171,562,808 | ? | 115,557,069 |
| ? | ? | ? | ? | ? | ? |
| Total | 120,503,628 | ? | 208,430,198 | ? | 120,503,628 |
Government grants recognised in profit or loss for the current period
??Item
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Policy incentives and others | 4,946,559 | ? | 36,867,390 |
(2) Non-operating expenses
???
| ? | 2020 | ? | 2019 | ? | Amount recognised in extraordinary gain and loss in 2020 |
| ? | ? | ? | ? | ? | ? |
| Donations provided | 13,324,588 | ? | 9,985,603 | ? | 13,324,588 |
| Losses from scrapping of non-current assets | 22,698,482 | ? | 31,048,028 | ? | 22,698,482 |
| Others | 36,116,596 | ? | 62,315,447 | ? | 36,116,596 |
| ? | ? | ? | ? | ? | ? |
| Total | 72,139,666 | ? | 103,349,078 | ? | 72,139,666 |
57 Income tax expenses
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Current tax expense for the period based on tax law and regulations | ? | 1,547,783,003 | ? | 956,184,825 |
| Changes in deferred tax assets/liabilities | (1) | 16,783,243 | ? | 23,806,679 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,564,566,246 | ? | 979,991,504 |
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | 16,783,243 | ? | 23,806,679 |
(2) Reconciliation between income tax expenses and accounting profit:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Profit before taxation | 6,092,836,662 | ? | 503,750,101 |
| Expected income tax expense at tax rate of 15% | 913,925,499 | ? | 75,562,515 |
| Add: Effect of different tax rates applied by subsidiaries | (26,770,857) | ? | 7,640,088 |
| Effect of non-deductible costs, expense and losses | 89,724,266 | ? | 58,923,605 |
| Effect of weighted pre-tax deduction and tax preference | (643,677,261) | ? | (590,392,743) |
| Utilisation of prior year tax losses | (95,546,933) | ? | (20,942,179) |
| Effect of deductible losses of deferred tax assets not recognised | 515,687,922 | ? | 1,358,934,997 |
| Effect of deductible temporary differences of deferred tax assets not recognised | 811,223,610 | ? | 106,073,260 |
| Effect of tax rates changes on deferred tax | - | ? | (15,808,039) |
| ? | ? | ? | ? |
| Income tax expenses | 1,564,566,246 | ? | 979,991,504 |
According to Notice on Increasing the Pre-tax Deduction Ratio of Research and Development Expenses (Caishui [2018] No.
99) issued by the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and TechnologyFinance and Taxation, in order to further encourage enterprises to increase investment in research and development, supportscientific and technological innovation, the research and development expenses incurred from the research and developmentactivities carried out by enterprises, which do not form intangible assets and are included in the current profits and losses, canbe deducted in accordance with provisions, with 75% of the actual amount is deducted before tax additionally during theperiod from 1 January 2018 to 31 December 2020.
58 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the Companyby the weighted average number of ordinary shares outstanding. The Group does not have any potential dilutive ordinaryshares for the listed years.
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Net profit attributable to the Company’s shareholders | 5,035,627,952 | ? | 1,918,643,871 |
| Less: Current interest of other equity instruments | 485,925,480 | ? | 56,109,589 |
| Consolidated net profit attributable to ordinary shareholders of the Company | 4,549,702,472 | ? | 1,862,534,282 |
| Weighted average number of ordinary shares outstanding (share) | 34,684,107,122 | ? | 34,798,398,763 |
| Basic earnings per share (RMB/share) | 0.13 | ? | 0.05 |
Weighted average number of ordinary shares is calculated as follows:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Issued ordinary shares at the beginning of the year | 34,798,398,763 | ? | 34,798,398,763 |
| Less: Weighted average number of ordinary shares for the period | 114,291,641 | ? | - |
| ? | ? | ? | ? |
| Weighted average number of ordinary shares at the end of the year | 34,684,107,122 | ? | 34,798,398,763 |
59 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profits/(losses) | 4,528,270,416 | ? | (476,241,403) |
| Add: Credit losses | (1,827,519) | ? | 28,262,627 |
| Impairment losses | 3,280,425,399 | ? | 2,584,183,258 |
| Depreciation of fixed assets and investment properties | 21,680,555,167 | ? | 18,357,209,097 |
| Amortisation of intangible assets | 758,817,609 | ? | 505,881,147 |
| Amortisation of long-term deferred expenses | 123,440,347 | ? | 123,883,157 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (19,786,363) | ? | (79,029) |
| Losses from scrapping of fixed assets and intangible assets | 22,698,482 | ? | 28,585,575 |
| Financial expenses | 3,835,299,300 | ? | 2,849,179,043 |
| Gains from changes in fair value | (31,936,339) | ? | (137,473,077) |
| Investment income | (897,891,109) | ? | (342,620,691) |
| Share-based payments | 15,779,427 | ? | - |
| Change in deferred income | 2,101,629,423 | ? | 276,854,045 |
| Change in deferred tax assets | 43,112,673 | ? | (9,992,167) |
| Change in deferred tax liabilities | (26,272,475) | ? | 33,798,846 |
| Increase in inventories | (6,687,901,867) | ? | (2,397,146,821) |
| Decrease in operating payables | 2,870,511,767 | ? | 1,113,154,602 |
| Increase in operating payables | 7,656,849,120 | ? | 3,545,640,985 |
| ? | ? | ? | ? |
| Net cash flows from operating activities | 39,251,773,458 | ? | 26,083,079,194 |
?(b) Net changes in cash and cash equivalents:
| (b) Net changes in cash and cash equivalents: | ? | ? | ? |
| ? | ? | ? | ? |
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 68,064,736,371 | ? | 50,270,321,573 |
| Less: Cash and cash equivalents at the beginning of the year | 50,270,321,573 | ? | 43,350,696,520 |
| ? | ? | ? | ? |
| Net increase in cash and cash equivalents | 17,794,414,798 | ? | 6,919,625,053 |
(2) Information on acquisition of subsidiaries during the year
Information on acquisition of subsidiaries:
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Cash and cash equivalents paid during the year for acquiring subsidiaries during the year | 6,374,732,839 | ? | - |
| Less: Cash and cash equivalents held by subsidiaries | 5,433,764,430 | ? | 33,640,033 |
| ? | ? | ? | ? |
| Net cash paid for acquisition of subsidiaries | 940,968,409 | ? | (33,640,033) |
(3) Details of cash and cash equivalents
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Cash on hand | 401,041 | ? | 538,338 |
| Bank deposits available on demand | 68,063,719,329 | ? | 50,269,207,607 |
| Other monetary funds available on demand | 616,001 | ? | 575,628 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 68,064,736,371 | ? | 50,270,321,573 |
Note: The cash and cash equivalents disclosed above do not include the interest accrued on bank deposits at the end of the
period and the use of other currency funds subject to restrictions.
60 Assets with restrictive ownership title or right of use
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Decreases during the year | ? | Balance at the end of the year | ? | Reason for restriction |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 6,702,401,666 | ? | 5,550,402,351 | ? | (6,764,704,383) | ? | 5,488,099,634 | ? | Pledged as collateral and margin deposit |
| Bills receivable | 57,102,517 | ? | 95,039,227 | ? | (91,927,587) | ? | 60,214,157 | ? | Discounted with recourse, endorsed with resource and pledged for drawing bills payable |
| Financial assets held for trading | 24,000,000 | ? | 65,254,917 | ? | (89,254,917) | ? | - | ? | Pledged for drawing bills payable |
| Accounts receivable | - | ? | 44,682,510 | ? | - | ? | 44,682,510 | ? | Factored and discounted with recourse |
| Investment properties | 43,396,671 | ? | 21,673,570 | ? | (22,111,153) | ? | 42,959,088 | ? | Mortgaged as collateral |
| Fixed assets | 93,007,772,827 | ? | 93,804,470,252 | ? | (17,839,310,716) | ? | 168,972,932,363 | ? | Mortgaged as collateral, leaseback assets |
| Construction in progress | 57,083,458,981 | ? | 24,302,781,621 | ? | (60,249,078,522) | ? | 21,137,162,080 | ? | Mortgaged as collateral |
| Intangible assets | 1,534,385,843 | ? | 278,789,101 | ? | (44,134,527) | ? | 1,769,040,417 | ? | Mortgaged as collateral |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 158,452,518,505 | ? | 124,163,093,549 | ? | (85,100,521,805) | ? | 197,515,090,249 | ? | ? |
61 Details of provision for impairment of assets
???
| ? | ? | ? | ? | ? | ? | Reductions during the year | ? | ? | ||||
| Item | Note | Balance at the beginning of the year | ? | Additions during the year | ? | Reversal | ? | Transferred out | ? | Translation differences | ? | Balance at the end of the year |
| ? | ? | RMB | ? | RMB | ? | RMB | ? | RMB | ? | RMB | ? | RMB |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | V.4, 6 | 356,641,409 | ? | 13,620,301 | ? | (15,447,820) | ? | (285,263,362) | ? | (2,643,494) | ? | 66,907,034 |
| Provision for impairment of inventories | V. 7 | 1,812,618,989 | ? | 3,826,916,751 | ? | (1,317,542,586) | ? | (1,031,978,594) | ? | (5,118,806) | ? | 3,284,895,754 |
| Provision for impairment of long-term equity investments | V. 11 | 777,858,312 | ? | 265,641,984 | ? | - | ? | - | ? | (14,455,477) | ? | 1,029,044,819 |
| Provision for impairment of fixed assets | V. 14 | 791,695,970 | ? | 505,201,450 | ? | - | ? | (35,450,891) | ? | - | ? | 1,261,446,529 |
| Provision for impairment of goodwill | V. 17 | 201,190,529 | ? | - | ? | - | ? | - | ? | - | ? | 201,190,529 |
| Provision for impairment of contract assets | V. 8 | - | ? | 207,800 | ? | - | ? | - | ? | - | ? | 207,800 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,940,005,209 | ? | 4,611,588,286 | ? | (1,332,990,406) | ? | (1,352,692,847) | ? | (22,217,777) | ? | 5,843,692,465 |
For reasons of recognition of impairment losses, refer to the notes of relevant assets.
VI. Change of consolidation scope
1 Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
(a) Acquisition of Chengdu CEC Panda
In 2020, the Company increased investment in Chengdu CEC Panda by RMB7,550,000,000 with one-time subscription and instalment payment. After the completionof capital increase, the Company held 35.0348% of equity interest in Chengdu CECPanda. On 17 December 2020, the Company entered into Agreement of Acting inConcert with shareholders of Chengdu CEC Panda and obtained control of ChengduCEC Panda. See Note VII.1. On 23 December 2020, Chengdu CEC Panda completedindustrial and commercial modification registration procedures. As at 31 December 2020,the Company has paid a capital increase of RMB 3,020,000,000, with RMB4,530,000,000 outstanding.
Chengdu CEC Panda is a company established in Chengdu on 7 December 2015 and ismainly engaged in research and development, production and sales of TFT-LCD panelsand modules, liquid crystal display monitors, televisions, instruments, machineryequipment and accessories as well as provision of technical services. Before theacquisition, Chengdu CEC Panda was jointly established by Nanjing Huadong ElectronicInformation & Technology CO., Ltd., Chengdu Xihanggang Industrial DevelopmentInvestment Co., Ltd., Chengdu Advanced Manufacturing Industry Investment Co., Ltd.,Chengdu Shuangliu Xingrong Optoelectronic Display Industry Equity Investment Centre(Limited Partnership), Sichuan Province Integrated Circuit And Information SecurityIndustry Investment Fund Co., Ltd. and Nanjing CEC Panda Information Industry GroupCo., Ltd.
(b) Acquisition of Nanjing CEC Panda
In 2020, the Company acquired 80.831% of equity interest in Nanjing CEC Panda withthe consideration of RMB 5,591,221,400. As at 15 December 2020, the Company haspaid 60% of equity acquisition fee (i.e. RMB 3,354,732,839). On 24 December 2020,Nanjing CEC Panda completed industrial and commercial modification registrationprocedures. So far, the Company has completed the acquisition of certain equity inNanjing CEC Panda. As at 31 December 2020, the outstanding equity acquisition feeamounted to RMB 2,236,488,561.
Nanjing CEC Panda is a company established in Nanjing 21 November 2012 and ismainly engaged in research and development, production and sales of TFT-LCD panelsand colour filter, LCD whole-widget module and accessory products. Before theacquisition, the parent company of Nanjing CEC Panda is Nanjing Huadong ElectronicInformation & Technology CO., Ltd. and the ultimate holding company is ChinaElectronics Corporation.
(2) Acquisition cost and goodwill
| ? | Chengdu CEC Panda | ? | Nanjing CEC Panda | ||||
| Acquisition cost | Carrying amount | ? | Fair value | ? | Carrying amount | ? | Fair value |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cash | 3,020,000,000 | ? | 3,020,000,000 | ? | 3,354,732,839 | ? | 3,354,732,839 |
| Other payables | ? | ? | ? | ? | 2,236,488,561 | ? | 2,236,488,561 |
| Equity interests held before acquisition date | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total acquisition cost | ? | ? | 3,020,000,000 | ? | ? | ? | 5,591,221,400 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Share of the fair value of the identifiable net assets acquired | ? | ? | 2,482,961,029 | ? | ? | ? | 5,435,506,985 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount of acquisition cost more than share of the fair value of the identifiable net assets acquired | ? | ? | 537,038,971 | ? | ? | ? | 155,714,415 |
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
?
?
| ? | Chengdu CEC Panda | ? | Nanjing CEC Panda | ||||
| ? | Carrying amount | ? | Fair value | ? | Carrying amount | ? | Fair value |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Assets | ? | ? | ? | ? | ? | ? | ? |
| Current assets | 5,780,578,892 | ? | 5,792,754,330 | ? | 3,057,319,669 | ? | 3,058,434,669 |
| Non-current assets | 25,888,187,662 | ? | 26,763,545,261 | ? | 15,092,623,128 | ? | 16,246,434,439 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Liabilities | ? | ? | ? | ? | ? | ? | ? |
| Current liabilities | 6,841,880,080 | ? | 6,841,880,080 | ? | 8,661,587,395 | ? | 8,691,981,056 |
| Non-current liabilities | 10,227,290,745 | ? | 10,227,290,745 | ? | 3,888,355,404 | ? | 3,888,355,404 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Net assets | 14,599,595,729 | ? | 15,487,128,766 | ? | 5,599,999,998 | ? | 6,724,532,648 |
| Less: Non-controlling interests | 12,264,740,503 | ? | 13,004,167,737 | ? | 1,073,464,000 | ? | 1,289,025,663 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Net assets acquired | 2,334,855,226 | ? | 2,482,961,029 | ? | 4,526,535,998 | ? | 5,435,506,985 |
The Company assessed the fair value of the identifiable assets and liabilities of Chengdu CEC Panda and Nanjing CEC Pandaat the acquisition date. If there is an active market for the above identifiable assets, the quoted prices in the active market areused to establish their fair value; if there is no active market, their fair values are estimated based on the market prices of thesame or similar types of assets which have an active market; if there is no active market for the same asset or similar types ofassets, valuation techniques are used to determine the fair value. For the above identifiable liabilities, the payable amount orthe present value of the payable amount is its fair value.
2 Disposal of subsidiaries
(1) Disposal of investments in subsidiaries through a single transaction resulting in loss of control
| Entity name | disposal price | Shareholding being disposed (%) | Disposal method | Date of losing control | Basis for determining date of losing control | Difference between consideration received and the related share of net assets in consolidated financial statements | Proportion of remaining shareholding on the date of losing control | Carrying amount of remaining equity interests on the date of losing control | Fair value of remaining equity interests on the date of losing control | Gain or loss from remeasurement of remaining equity interests to fair value | Method and key assumptions for determining the fair value of remaining equity interests | Investment income or loss transferred from other comprehensive income related to previous equity investments in subsidiaries |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Asahi Electronic Materials Co., Ltd. | 425,000,000 | 100% | Listing transfer | 22 December 2020 | Completion of industrial and commercial modification registration | 251,411,452 | - | - | - | - | - | - |
| Hunan BOE Yiyun Science & Technology Co., Ltd. | - | 5.44% | Diluted by other shareholders’ capital contribution | 29 December 2020 | Change of articles of association of the Company | (17,507,070) | 48.99% | 157,660,178 | 253,630,000 | 95,969,822 | Subscription price of the latest capital increase | 46,470,087 |
The Group has a gain of RMB 251,411,452 on the loss of its control over Beijing Asahi Electronic Materials Co., Ltd., which has been included ininvestment income of consolidated financial statements.
The Group lost its control over Hunan BOE Yiyun Science & Technology Co., Ltd. (formerly Beijing BOE Yiyun Technology Co., Ltd.) for thecapital increase of other shareholders. The Company accounted for its investment in Hunan BOE Yiyun Science & Technology Co., Ltd. (formerlyBeijing BOE Yiyun Technology Co., Ltd.) in the company financial statements by using equity method instead of cost method (see Note XV.5). Inthe consolidated financial statements, the long-term equity investments is re-measured at its fair value at the date when control is lost (see NoteV.51).
3 Other reasons for change of consolidation scope
The Company has set up five new subsidiaries this year, which are BOE Education Technology Co., Ltd., Dongfang Chengqi (Beijing) BusinessTechnology Co., Ltd., BOE Innovation Investment Co., Ltd., BOE Smart Technology Co., Ltd., and Hefei BOE Xingyu Technology Co., Ltd.
VII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Research and development (“R&D”), design and manufacturing of TFT-LCD | ? | USD 649,110,000 | ? | 82.49% | ? | 17.51% | ? | Founded by investment |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | R&D, design, manufacturing, and sale of new display devices and components | ? | RMB 25,000,000,000 | ? | 100.00% | ? | - | ? | 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. | ? | RMB 9,000,000,000 | ? | 100.00% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development of TFT-LCD, manufacturing and sale of LCD | ? | RMB 17,882,913,500 | ? | 97.17% | ? | 2.83% | ? | Founded by investment |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products. | ? | RMB 19,500,000,000 | ? | 99.97% | ? | 0.03% | ? | Business combinations involving entities not under common control |
| Ordos Yuansheng Optoelectronics Co., Ltd. | Ordos, China | ? | Ordos, China | ? | Manufacture and sales of AM-OLED products and auxiliary products. | ? | RMB 11,804,000,000 | ? | 100.00% | ? | - | ? | Founded by investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Chongqing, China | ? | Chongqing, China | ? | R&D, production and sales of semi-conducting display devices, complete machine and related products; import & export of goods and technology consulting. | ? | RMB 19,226,000,000 | ? | 100.00% | ? | - | ? | Business combinations involving entities not under common control |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | ? | Fuzhou, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products. | ? | RMB 17,600,000,000 | ? | 81.25% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | Beijing, China | ? | Beijing, China | ? | Manufacture of LCD TV, LCD; technology development of terminal products and systems such as TFT-LCD display and TV | ? | RMB 4,093,500,000 | ? | 100.00% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sale of vacuum electronic products | ? | RMB 35,000,000 | ? | 55.00% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sale of electronic tubes. | ? | RMB 32,000,000 | ? | 100.00% | ? | - | ? | Founded by investment |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| Beijing BOE Special Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development of display products and sale of electronic products. | ? | RMB 100,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Management of engineering projects; real estate development; public parking lot for motor vehicles service; office lease. | ? | RMB 233,105,200 | ? | 100% | ? | - | ? | Founded by investment |
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | ? | Suzhou, China | ? | R&D, production and sales of LCD, back light for display and related components. | ? | RMB 826,714,059 | ? | 95.17% | ? | - | ? | Founded by investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, manufacture and sale of liquid display for mobile termination. | ? | USD 5,000,000 | ? | 75% | ? | - | ? | Founded by investment |
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | ? | Langfang, China | ? | Manufacture and sale of mobile flat screen display technical products and related services. | ? | RMB 1,358,160,140 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Asahi Electronic Materials Co., Ltd.* | Beijing, China | ? | Beijing, China | ? | Sales of TV bracket glass rod and CTV low-melting-point solder glass. | ? | RMB 61,576,840 | ? | 100% | ? | - | ? | Business combinations involving entities not under common control |
| Beijing BOE Multimedia Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of computer software and hardware, digital video-audio products | ? | RMB 400,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | |||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| Beijing BOE Energy Technology | Beijing, China | Beijing, China | Design, consultancy and service of solar cell, photovoltaic system, wind power system and solar thermal system as well as the assembly units; energy-saving service. | RMB 850,000,000 | 100% | - | ? | Founded by investment | |||||
| Beijing BOE Life Technology Co., Ltd. (Formerly Beijing Zhongpingxun Technology Co., Ltd.) | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | RMB 24,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Zhongxiangying Technologies Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | RMB 100,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Ordos City Haosheng Energy Investment Co., Ltd. | Ordos, China | ? | Ordos, China | ? | Energy investment | ? | RMB 30,000,000 | ? | - | ? | 100% | ? | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Processing, manufacturing and sales of precision electronic components, semi-conductor devices, micro modules, microelectronic devices and electronic materials; import & export of goods | ? | RMB 11,250,000 | ? | 84% | ? | - | ? | Founded by investment |
| BOE Optoelectronics Holding Co., Ltd | Hong Kong | ? | British Virgin Islands | ? | Design, manufacturing and sales of electronic-information industry related products, investment | ? | USD 1,000,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| and financing businesses | |||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage? | ||||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | ? | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method |
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment management and project investment | ? | RMB 7,300,000,000 | ? | 100% | ? | - | ? | Business combinations involving entities not under common control |
| ?? | |||||||||||||
| Beijing?Matsushita Colour CRT Co., Ltd. (“Matsushita Colour CRT”) | Beijing, China | ? | Beijing, China | ? | Colour TV set, display tube, colour RPTV projection tube and materials of electronic components; property management and parking services, etc. | ? | RMB 325,754,049 | ? | 88.80% | ? | - | ? | Business combinations involving entities not under common control |
| Hefei BOE Display Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, R & D and production of products related to TFT-LCD and the supporting facility | RMB 24,000,000,000 | ? | 8.33% | ? | - | ? | Business combinations involving entities not under common control | |
| Beijing BOE Technology Development Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, transfer, consulting and service of technology | RMB 1,000,000 | ? | 100% | ? | - | ? | Founded by investment | |
| BOE Wisdom IOT Technology Co., Ltd. (“Wisdom IOT Technology”) | Beijing, China | ? | Beijing, China | ? | Development, transfer, consulting, service and promotion of technology | RMB 142,000,000 | ? | 100% | ? | - | ? | Founded by investment | |
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | RMB 800,000,000 | ? | 75% | ? | - | ? | Founded by investment | |
| Beijing BOE Real Estate Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | RMB 55,420,000 | ? | 70% | ? | - | ? | Founded by investment | |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices | RMB 50,000,000 | ? | 100% | ? | - | ? | Founded by investment | |
| Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. (Formerly Kunming BOE Display Technology Co., Ltd.) | Yunnan, China | ? | Yunnan, China | ? | Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; | RMB 3,040,000,000 | ? | 79.96% | ? | - | ? | Founded by investment | |
| Shareholding (or similar equity interest) percentage? | |||||||||||||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method | |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | ? | Mianyang, China | ? | R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | RMB 24,000,000,000 | ? | 66.67% | ? | - | ? | Business combinations involving entities not under common control | |
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer | ? | RMB 50,000,000 | ? | 100% | ? | - | ? | Founded by investment |
| Hunan BOE Yiyun Science & Technology Co., Ltd. (Formerly Beijing BOE Yiyun Science & Technology Co., Ltd.) | Changsha, China | ? | Changsha, China | ? | Technology development, technology transfer, technical consulting, technical services; technology intermediary services; information system integration; basic software services; application software services; software development | RMB 400,000,000 | ? | 48.99% | ? | - | ? | Business combinations involving entities not under common control | |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) | Wuhan, China | ? | Wuhan, China | ? | Investing, researching, manufacturing and selling TFT-LCD products and accessory products | RMB 26,000,000,000 | ? | 23.08% | ? | - | ? | Business combinations involving entities not under common control | |
| Chongqing BOE Display Technology Co., Ltd. (Chongqing BOE Display) | Chongqing, China | ? | Chongqing, China | ? | R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting | RMB 6,010,000,000 | ? | 38.46% | ? | - | ? | Business combinations involving entities not under common control | |
| Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”) | Fuzhou, China | ? | Fuzhou, China | ? | R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical | RMB 50,000,000 | ? | 43.46% | ? | - | ? | Business combinations involving entities not under common control |
| services; business management consulting; property management; house rental; machinery and equipment rental | |||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage? | |||||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method | |
| SES Imagotag SA Co., Ltd. | Nanterre, France | Nanterre, France | Support colour electronic paper, segment LCD, TFT-LCD display, covering ESL multi-frequency protocol, Wi-Fi, BLE and NFC; multiple communication methods, integrated electronic paper supply chain resources and downstream software around electronic shelf labels platform, image recognition and big data analytics resources to create a complete solution for the retail industry | EUR 31,516,216 | - | 68.48% | Business combinations involving entities not under common control | ||||||
| Hefei BOE Xingyu Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, R&D, manufacturing and sales of direct display, sensors related to the display, back light source for LCD and supporting components; enterprise management consulting and service; house rental; equipment rental; technology development, transfer and consulting services. | USD 115,380,000 | ? | 43.40% | ? | -? | ? | Founded by investment | |
| BOE Education Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology development, software development, sales of stationery, sports goods and household appliances; enterprise management, economic and trade consulting, education consulting, public relations services; natural science, engineering technology, agricultural science research and experimental development; copyright agency and process beauty creation services. | RMB 55,000,000 | ? | 100% | ? | -? | ? | Founded by investment | |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology development; sales of primary edible agricultural products; translation services, conference services; business management, real estate information consulting; ticketing agents, tourism consulting, warehousing services, public relations services, car rental; import and export of goods, technology import and | RMB 10,000,000 | ? | 100% | ? | -? | ? | Founded by investment | |
| export; beauty services, medical services; inbound tourism business; Internet information services. | |||||||||||||
| BOE Innovation Investment Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Project investment and investment management | ? | RMB 800,000,000 | ? | 100% | ? | -? | ? | Founded by investment |
| Shareholding (or similar equity interest) percentage | |||||||||||||
| Name of the Subsidiary | Principal place of business | ? | Registered place | ? | Business nature | Registered capital | ? | Direct | ? | Indirect | ? | Acquisition method | |
| BOE Smart Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Information system integration services; technology development, technology transfer; software development; Internet data services; real estate brokerage business; motor vehicle public parking services; conference services; project management; property management; lease of office space and commercial space; labour subcontracting; import and export of goods, technology import and export; human resource services. | RMB 800,000,000 | ? | 100% | ? | -? | ? | Founded by investment | |
| Nanjing CEC Panda FPD Technology Co., Ltd. | Nanjing, China | ? | Nanjing, China | ? | R&D, production and sale of TFT-LCD panels, colour filters and LCD whole-widget modules; providing products and business-related services, as well as other business activities related to the above; import and export of proprietary and agent commodities and technologies. | RMB 17,500,000,000 | ? | 80.831% | ? | -? | ? | Business combinations involving entities not under common control | |
| Chengdu CEC Panda Display Technology Co., Ltd. | Sichuan, China | ? | Sichuan, China | ? | R&D, production and sales of TFT-LCD panels and modules, liquid crystal display monitors, televisions, instruments, machinery equipment and accessories as well as provision of technical services; foreign trade in form of import and export of goods and technology. | RMB 21,550,000,000 | ? | 35.0348% | ? | -? | ? | Business combinations involving entities not under common control | |
*Beijing Asahi Electronic Materials Co., Ltd. and Hunan BOE Yiyun Science & Technology Co., Ltd. are disposed of on 22 December 2020 and 29 December 2020 respectively. See Note VI.2.
The Company signed an agreement of acting in concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) on 30 November 2016. Hefei Core Screen Industrial InvestmentFund (Limited Partnership) agreed to act as a person acting in concert according to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordancewith the opinions of the Company. Therefore, the Company’s voting right ratio to Hefei Display Technology is 71.67%.
The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd.on 25 December 2018. Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. agreed to follow the Company’s will to act as a person acting in concert,unconditionally and irrevocably exercising voting rights in accordance with the opinions of the Company, the voting rights of the Company to Wuhan BOE is 69.23%.
The Company signed an agreement of acting in concert with shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (LimitedPartnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25 December 2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (LimitedPartnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. agreed to act as persons acting in concert according to the will of the Company, and exercise the voting rightsunconditionally and irrevocably in accordance with the opinions of the Company. Therefore, the proportion of voting rights of the Company to Chongqing BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE Display, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou UrbanConstruction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. agreedto act as persons acting in concert according to the will of the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company.Therefore, the proportion of voting rights of the Company to Fuzhou BOE Display is 100%.
The Company signed an agreement of acting in concert with shareholders of Chengdu CEC Panda, Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu AirportXingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. on 17 December 2020. Chengdu Advanced Manufacturing Industry InvestmentCo., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. agreed to act as persons acting in concert according tothe will of the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, the proportion of voting rights of theCompany to Chengdu CEC Panda is 100%.
(2) Material non-wholly owned subsidiaries
| Name of the Subsidiary | Proportion of ownership interest held by non-controlling interests | ? | Profit/(loss) allocated to non-controlling interests during the year | ? | Dividend declared to non-controlling shareholders during the year | ? | Balance of non-controlling interests at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Hefei Display Technology | 91.67% | ? | 3,600,766 | ? | - | ? | 19,364,095,828 |
| Mianyang BOE | 33.33% | ? | (270,861,155) | ? | - | ? | 7,588,781,957 |
| Wuhan BOE | 76.92% | ? | (115,879,453) | ? | - | ? | 19,861,266,116 |
| Chongqing BOE Display | 61.54% | ? | (88,748,272) | ? | - | ? | 6,245,130,676 |
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without offsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:
???
| ? | Hefei Display Technology | Mianyang BOE | ? | Wuhan BOE | ? | Chongqing BOE Display | ||||||||
| ? | 2020 | 2019 | 2020 | ? | 2019 | 2020 | ? | 2019 | 2020 | ? | 2019 | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| Current assets | 13,917,088,962 | 11,633,732,300 | 5,001,552,767 | 3,644,261,703 | 11,748,881,218 | 3,684,026,094 | 4,511,835,708 | ? | 5,182,267,756 | |||||
| Non-current assets | 28,144,487,136 | 33,264,338,502 | 45,771,813,314 | 39,751,190,014 | 34,698,575,568 | 27,439,008,544 | 13,507,596,306 | ? | 1,634,796,122 | |||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| Total assets | 42,061,576,098 | 44,898,070,802 | 50,773,366,081 | 43,395,451,717 | 46,447,456,786 | 31,123,034,638 | 18,019,432,014 | ? | 6,817,063,878 | |||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| Current liabilities | 8,775,178,650 | 9,069,027,029 | 8,221,423,949 | 4,971,407,195 | 5,369,267,140 | 5,661,729,075 | 6,962,326,548 | ? | 716,978,520 | |||||
| Non-current liabilities | 12,162,697,407 | 14,787,288,631 | 19,783,319,398 | 17,405,543,775 | 15,257,510,868 | 7,429,662,481 | 909,021,819 | ? | 97,980,000 | |||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| Total liabilities | 20,937,876,057 | 23,856,315,660 | 28,004,743,347 | 22,376,950,970 | 20,626,778,008 | 13,091,391,556 | 7,871,348,367 | ? | 814,958,520 | |||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| Operating income | 15,153,402,394 | 11,455,196,518 | 1,406,636,788 | 110,313,244 | 1,775,338,449 | 130,054,586 | 355,365 | ? | 169,027 | |||||
| Net profit/(loss) | 3,927,966 | (2,448,838,884) | (830,258,844) | (252,575,687) | (158,596,684) | (13,172,938) | (144,212,337) | ? | (1,354,276) | |||||
| Total comprehensive income | 3,927,966 | (2,448,838,884) | (830,258,844) | (252,575,687) | (158,596,684) | (13,172,938) | (144,212,337) | ? | (1,925,302) | |||||
| Cash inflow/(outflow) in operating activities | 3,819,978,355 | 912,437,769 | (1,016,864,877) | 184,012,366 | 2,934,840,804 | 890,669,009 | 43,940,351 | ? | 118,933,310 | |||||
2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of control
(1) Changes in the Group’s interests in subsidiaries:
| ? | Before changes of interests | ? | After changes of interests |
| ? | ? | ? | ? |
| Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. | 69.43% | ? | 79.96% |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 68.72% | ? | 66.67% |
(2) Impact from transactions with non-controlling interests and equity attributable to the shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other subsidiaries were caused by thecapital increase of the Company and its non-controlling interests, which results in the increase of capital reserves by RMB76,020,559. See Note V.39.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the associates.
No material restrictions on transfers of funds from investees to the Group. The judgement basis of the Company and itssubsidiaries to hold lower than 20% of the voting rights of other entities but have significant influence on the entity is due tothe fact that the Company and its subsidiaries have seats in the board of directors of the entity, and the Company andsubsidiaries of the Company may have significant influence on the entity through the representation of the directors in theprocess of formulating financial and operating policies.
VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the normal course of the Group’soperations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks
The following mainly presents information about the Group’s exposure to each of the above risks and their sources, theirchanges during the year, and the Group’s objectives, policies and processes for measuring and managing risks, and theirchanges during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of financial instruments and tomitigate the adverse effects that the risks of financial instruments have on the Group’s financial performance. Based on suchobjectives, the Group’s risk management policies are established to identify and analyse the risks faced by the Group, to setappropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems arereviewed regularly to reflect changes in market conditions and the Group’s activities. The internal audit department of theGroup undertakes both regular and ad-hoc reviews of risk management controls and procedures.
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing todischarge an obligation. The Group’s credit risk is primarily attributable to receivables. Exposure to these credit risks aremonitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions. Management does not foresee anysignificant credit risks from these deposits and does not expect that these financial institutions may default and cause lossesto the Group.
In respect of receivables, the Group has established a credit policy under which individual credit evaluations are performedon all customers to determine the credit limit and terms applicable to the customers. These evaluations focus on thecustomers’ financial position, the external ratings of the customers and the record of previous transactions. Receivables aredue within 15 to 120 days from the date of billing. Debtors with balances that are past due are requested to settle alloutstanding balances before any further credit is granted. Normally, the Group does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer rather than theindustry or country/region in which the customers operate. Therefore, significant concentrations of credit risk primarily arisewhen the Group has significant exposure of the total accounts receivable and contract assets to individual customers. At thebalance sheet date, the Group and the Company’s accounts receivable due from the top five customers account for 33% and
0.02% of the total accounts receivable and contract assets respectively (2019: 43% and 0.07%). In addition, the accountsreceivable not overdue or impaired is mainly related to many clients who don’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. Asmentioned in Note XIII, as at 31 December 2020, the Group does not provide any external guarantees which would exposethe Group to credit risk.
(2) Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled by delivering cashor another financial asset. The Company and its individual subsidiaries are responsible for their own cash management,including short-term investment of cash surpluses and the raising of loans to cover expected cash demands, subject toapproval by the Company’s board when the borrowings exceed certain predetermined levels of authority. The Group’s policyis to regularly monitor its liquidity requirements and its compliance with lending covenants, to ensure that it maintainssufficient reserves of cash, readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.
The following tables set out the remaining contractual maturities at the balance sheet date of the Group’s financial liabilities,which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, iffloating, based on rates current at the balance sheet date) and the earliest date the Group can be required to pay:
| ? | 2020 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or demand | ? | More than 1 year but less than 3 years | ? | More than 3 years but less than 5 years | ? | More than 5 years | ? | Total | ? | Carrying amount of balance sheet |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 8,778,542 ,209 | ? | - | ? | - | ? | - | ? | 8,778,542,209 | ? | 8,599,569,471 |
| Bills payable | 1,231,533,895 | ? | - | ? | - | ? | - | ? | 1,231,533,895 | ? | 1,231,533,895 |
| Accounts payable | 27,164,171,682 | ? | - | ? | - | ? | - | ? | 27,164,171,682 | ? | 27,164,171,682 |
| Other payables | 32,867,709,024 | ? | - | ? | - | ? | - | ? | 32,867,709,024 | ? | 32,867,709,024 |
| Non-current liabilities due within one year | 25,053,537,286 | ? | - | ? | - | ? | - | ? | 25,053,537,286 | ? | 24,500,550,121 |
| Long-term loans | 4,957,036,602 | ? | 28,885,981,505 | ? | 24,623,632,349 | ? | 97,458,835,686 | ? | 155,925,486,142 | ? | 132,452,767,135 |
| Debentures payable | 14,886,375 | ? | 350,772,750 | ? | 85,932,140 | ? | - | ? | 451,591,265 | ? | 398,971,739 |
| Long-term payables | - | ? | 1,620,375,941 | ? | 304,011,108 | ? | 536,546,749 | ? | 2,460,933,798 | ? | 2,114,175,683 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 100,067,417,073 | ? | 30,857,130,196 | ? | 25,013,575,597 | ? | 97,995,382,435 | ? | 253,933,505,301 | ? | 229,329,448,750 |
???
| ? | 2019 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or demand | ? | More than 1 year but less than 3 years | ? | More than 3 years but less than 5 years | ? | More than 5 years | ? | Total | ? | Carrying amount of balance sheet |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 6,458,040,008 | ? | - | ? | - | ? | - | ? | 6,458,040,008 | ? | 6,366,717,121 |
| Bills payable | 2,028,917,980 | ? | - | ? | - | ? | - | ? | 2,028,917,980 | ? | 2,028,917,980 |
| Accounts payable | 21,183,567,553 | ? | - | ? | - | ? | - | ? | 21,183,567,553 | ? | 21,183,567,553 |
| Other payables | 24,570,589,610 | ? | - | ? | - | ? | - | ? | 24,570,589,610 | ? | 24,570,589,610 |
| Non-current liabilities due within one year | 19,473,884,018 | ? | - | ? | - | ? | - | ? | 19,473,884,018 | ? | 18,849,281,019 |
| Long-term loans | 4,478,877,485 | ? | 8,296,257,569 | ? | 26,580,720,126 | ? | 94,478,027,383 | ? | 133,833,882,563 | ? | 107,730,595,615 |
| Debentures payable | 14,497,753 | ? | 28,995,505 | ? | 330,673,806 | ? | 3,556,053 | ? | 377,723,117 | ? | 387,878,384 |
| Long-term payables | - | ? | 409,808,948 | ? | 328,617,676 | ? | 538,091,397 | ? | 1,276,518,021 | ? | 984,520,824 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 78,208,374,407 | ? | 8,735,062,022 | ? | 27,240,011,608 | ? | 95,019,674,833 | ? | 209,203,122,870 | ? | 182,102,068,106 |
(3) Interest rate risk
Interest-bearing financial instruments at floating rates and at fixed rates expose the Group to cash flow interest rate risk andfair value interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rateinterest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achievean appropriate mix of fixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interestrate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
| ? | 2020 | ? | 2019 | ||||
| Item | Effective interest rate | ? | Amounts | ? | Effective interest rate | ? | Amounts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank | 0.20%~3.74% | ? | 41,745,509,216 | ? | 0.20% ~ 3.74% | ? | 26,721,273,607 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 0.50%~5.90% | ? | (6,327,791,477) | ? | 0.40% - 4.35% | ? | (4,643,502,121) |
| - Non-current liabilities due within one year | 0%~5.29% | ? | (12,025,528,359) | ? | 0% - 5.64% | ? | (9,071,034,895) |
| - Long-term loans | 0%~5.90% | ? | (49,498,675,910) | ? | 0% - 5.64% | ? | (59,667,474,395) |
| - Debentures payable | 3.50%~4.55% | ? | (398,971,739) | ? | 3.50% - 4.55% | ? | (387,878,384) |
| - Long-term payables | 4.17%~7.02% | ? | (2,114,175,683) | ? | 4.24% ~ 7.09% | ? | (984,520,824) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (28,619,633,952) | ? | ? | ? | (48,033,137,012) |
Floating rate instruments:
???
| ? | 2020 | ? | 2019 | ||||
| Item | Effective interest rate | ? | Amounts | ? | Effective interest rate | ? | Amounts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank | 0.0001%~3.90% | ? | 31,800,233,366 | ? | 0.0001% ~ 3.90% | ? | 30,250,911,294 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 2.02%~2.55% | ? | (2,263,424,127) | ? | 3.56% ~ 3.92% | ? | (1,723,215,000) |
| - Non-current liabilities due within one year | 2.78%~5.88% | ? | (12,128,797,769) | ? | 1.04% - 6.38% | ? | (9,619,871,357) |
| - Long-term loans | 1.11%~5.39% | ? | (82,790,180,032) | ? | 3.00% ~ 6.38% | ? | (48,063,121,220) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (65,382,168,562) | ? | ? | ? | (29,155,296,283) |
(b) Sensitivity analysis
As at 31 December 2020, it is estimated that a general increase/decrease of 100 basis points in interest rates of floatingrate instrument, with all other variables held constant, would decrease/increase the Group’s net profit and equity byRMB 557,440,000 (2019: RMB 251,370,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held bythe Group at the balance sheet date, the impact on the net profit and equity is estimated as an annualised impact oninterest expense or income of such a change in interest rates. The analysis is performed on the same basis for theprevious 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 liabilitiesdenominated in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept to anacceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognised
foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 2,618,785,628 (2019 net liabilitiesexposure: USD 1,791,577,868), translated into RMB 17,087,314,344 (2019: RMB12,498,405,521), using the spot rate at the balance sheet date. Differences resultingfrom the translation of the financial statements denominated in foreign currency areexcluded.
(b) The following are the exchange rates for Renminbi against US dollar applied by the
Group:
| ? | Average rate | ? | Balance sheet date mid-spot rate | ||||
| ? | 2020 | ? | 2019 | ? | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| USD | 6.7506 | ? | 6.9197 | ? | 6.5249 | ? | 6.9762 |
Assuming all other risk variables remained constant, a 5% strengthening/weakening of the Renminbi against the USdollar at 31 December would have increased/decreased both the Group’s equity and net profit by the amount RMB333,959,173 (2019: RMB 197,336,145).
The sensitivity analysis above assumes that the change in foreign exchange rates had been applied to re-measure thosefinancial instruments held by the Group which expose the Group to foreign currency risk at the balance sheet date. Theanalysis excludes differences that would result from the translation of the financial statements denominated in foreigncurrency. The analysis is performed on the same basis for the previous year.
(5) Other price risks
Other price risks include stock price risk and commodity price risk.
IX. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the end of the current reporting period,of the Group’s assets and liabilities which are measured at fair value at each balance sheet date on a recurring ornon-recurring basis. The level in which fair value measurement is categorised is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. The levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement date for identical
assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for underlying assets
or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
1. Fair value of assets measured at fair value at the end of the year
| ? | ? | 31 December 2020 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | ? | - | ? | - | ? | 4,367,201,833 | ? | 4,367,201,833 |
| Including: Structured deposits and wealth management products | V. 2 | - | ? | - | ? | 4,367,201,833 | ? | 4,367,201,833 |
| - Investments in other equity instruments | V. 12 | 214,214,021 | ? | - | ? | 319,431,402 | ? | 533,645,423 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 214,214,021 | ? | - | ? | 4,686,633,235 | ? | 4,900,847,256 |
??
?
| ? | ? | 31 December 2019 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | ? | - | ? | - | ? | 5,809,184,994 | ? | 5,809,184,994 |
| Including: Structured deposits and wealth management products | V. 2 | - | ? | - | ? | 5,809,184,994 | ? | 5,809,184,994 |
| - Investments in other equity instruments | V. 12 | 300,124,974 | ? | - | ? | 331,951,673 | ? | 632,076,647 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 300,124,974 | ? | - | ? | 6,141,136,667 | ? | 6,441,261,641 |
2 Basis of determining the market price for recurring and non-recurring fair value measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters for recurring and non-recurring
fair value measurements categorised within Level 3
Financial assets held for trading at recurring fair value within Level 3 are bank wealth management products. For wealthmanagement products measured at fair value, the fair value is determined based on the discounted cash flow method.
Investments in other equity instruments at recurring fair value within Level 3 are unlisted equity investments held by theGroup, including:
(i) For those who raised a new round of financing in 2020, the Group used the financing price as the best estimates of
their fair value;
(ii) For other investments in other equity instruments, since the operating environment, operating conditions and financial
status of the investee have not changed significantly during the year, the Group uses the book investment cost as areasonable estimate of fair value for measurement.
During 2020, there were no changes in valuation technique of fair value. As at 31 December, there were no significant
discrepancies between the book value and fair value of all the financial assets and financial liabilities except the above assetsmeasured at fair value and the non-current assets held for sale presented in Note V.9.
X. Related parties and related party transactions
1 Information about the parent of the Company
| Company name | Registered place | ? | Business nature | ? | Registered capital | ? | Shareholding percentage (%) | ? | Percentage of voting rights (%) | ? | Ultimate controlling party of the Company |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Electronics Holding Co., Ltd. | No. 12, Jiuxianqiao Road, Chaoyang District, Beijing | ? | Operation and management of state-owned assets within authorisation, etc. | ? | RMB 3,139,210,000 | ? | 0.79% | ? | 18.85% | ? | Yes |
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VII.1.
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this year or the previous year are asfollows:
??
Name of entity
| Name of entity | Relationship with the Company |
| ? | ? |
| Beijing Nittan Electronic Co., Ltd. | Associate of the Group and the Company |
| TPV Display Technology (China) Limited | Associate of the Group and the Company |
| Shenzhen Yunyinggu Technology Co., Ltd. | Associate of the Group and the Company |
| Beijing Xindongneng Investment Management Co., Ltd. | Associate of the Group and the Company |
| BOE Houji Technology (Beijing) Co., Ltd. | Associate of the Group |
| Beijing Zhonglianhe Ultra HD Collaborative Technology Centre Co., Ltd. | Associate of the Group |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | Associate of the Group |
| Changzhou Xiruojia Medical Technology Co., Ltd. | Subsidiary of associate of the Group |
4 Information on other related parties
| Name of other related parties | Related party relationship |
| ? | ? |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | Under the same control of the ultimate holding company |
| Beijng NAURA Microelectronics Equipment Co., Ltd. | Under the same control of the ultimate holding company |
| Sevenstar Semiconductor Technologies Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Zhaowei Technology Development Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing C&W Intelligent Equipment Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing BBEF Science & Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Yandong Microelectronic Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Ether Electronics Group Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Dongdian Industrial Development Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electrical Control Jiuyi Industrial Development Company | Under the same control of the ultimate holding company |
| Beijing BOE Investment Development Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Yansong Economic and Trade Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Zhaowei Electronic (Group) Co., Ltd. | Under the same control of the ultimate holding company |
| 761 Workshop (Beijing) Technology Development Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electric Control Industry Investment Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Feiyu Micro Electronics Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Senju Electronic Materials Co., Ltd. | Associate of enterprise that is under the same control of the ultimate holding company |
| New Vision Microelectronics (Hong Kong) Limited | Associate of enterprise that is under the same control of the ultimate holding company |
| Beijing Electric Vehicle Co., Ltd. | Other related parties |
| China United Network Communications Limited | Other related parties |
| Hefei Yisiwei Integrated Circuit Co., Ltd. | Other related parties |
| Chengdu ESWIN IC Design Co., Ltd. | Other related parties |
| Haining Yisiwei IC Design Co., Ltd. | Other related parties |
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial terms or agreements.
(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key management personnel)
The Group
| Nature of transaction | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Purchase of goods | 698,585,167 | ? | 480,284,012 |
| Procurement of equipment | 169,998,650 | ? | 397,005,152 |
| Receiving of services | 17,527,375 | ? | 17,744,265 |
| ? | ? | ? | ? |
| Total | 886,111,192 | ? | 895,033,429 |
The Company
??Nature of transaction
| Nature of transaction | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Purchase of goods | 14,438,544 | ? | 12,379,363 |
| Receiving of services | 544,225,068 | ? | 844,688,884 |
| Payment of interest expenses | - | ? | 65,689,459 |
| ? | ? | ? | ? |
| Total | 558,663,612 | ? | 922,757,706 |
(2) Sale of goods/rendering of services
The Group
??Nature of transaction
| Nature of transaction | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Sale of goods | 20,817,125 | ? | 2,846,583 |
| Rendering of services | 4,762,316 | ? | 4,670,427 |
| ? | ? | ? | ? |
| Total | 25,579,441 | ? | 7,517,010 |
The Company
| Nature of transaction | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Sale of goods | 3,366,359 | ? | - |
| Rendering of services | 4,406,612,262 | ? | 4,635,072,473 |
| Interest income received | 4,044,123 | ? | 318,036 |
| ? | ? | ? | ? |
| Total | 4,414,022,744 | ? | 4,635,390,509 |
(3) Leases
(a) As the lessor
The Group
??Type of assets leased
| Type of assets leased | Lease income recognised in 2020 | ? | Lease income recognised in 2019 |
| ? | ? | ? | ? |
| Investment properties | 1,092,879 | ? | 1,176,283 |
The Company
??
Type of assets leased
| Type of assets leased | Lease income recognised in 2020 | ? | Lease income recognised in 2019 |
| ? | ? | ? | ? |
| Investment properties | 66,764,268 | ? | 63,700,904 |
(b) As the lessee
The Group
??Type of assets leased
| Type of assets leased | Lease expense recognised in 2020 | ? | Lease expense recognised in 2019 |
| ? | ? | ? | ? |
| Fixed assets | 2,329,933 | ? | 3,082,942 |
(4) Funding from related party
The Company
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds received | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 500,000,000 | ? | 28/5/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 300,000,000 | ? | 8/7/2020 | ? | 8/7/2025 |
| Subsidiary of the parent company | 2,000,000,000 | ? | 9/6/2017 | ? | 31/12/2025 |
| Subsidiary of the parent company | 700,000,000 | ? | 13/4/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,000,000,000 | ? | 27/5/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 360,000,000 | ? | 24/4/2020 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,500,000,000 | ? | 6/7/2020 | ? | 6/7/2025 |
| Subsidiary of the parent company | 1,700,000,000 | ? | 12/10/2020 | ? | 12/10/2025 |
| Subsidiary of the parent company | 1,700,000,000 | ? | 28/12/2020 | ? | 28/12/2025 |
| Subsidiary of the parent company | 1,200,000,000 | ? | 30/9/2015 | ? | 31/12/2025 |
| Subsidiary of the parent company | 650,000,000 | ? | 25/4/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 3,500,000,000 | ? | 1/8/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,500,000,000 | ? | 24/5/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,000,000,000 | ? | 3/7/2020 | ? | 3/7/2025 |
| Subsidiary of the parent company | 2,500,000,000 | ? | 5/11/2020 | ? | 5/11/2025 |
| Subsidiary of the parent company | 500,000,000 | ? | 11/12/2020 | ? | 11/12/2025 |
| Subsidiary of the parent company | 200,000,000 | ? | 28/7/2017 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,600,000,000 | ? | 4/12/2017 | ? | 31/12/2025 |
| Subsidiary of the parent company | 3,800,000,000 | ? | 19/7/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,000,000,000 | ? | 26/7/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,000,000,000 | ? | 20/8/2020 | ? | 20/8/2025 |
| Subsidiary of the parent company | 4,000,000,000 | ? | 9/6/2017 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,000,000,000 | ? | 23/12/2016 | ? | 31/12/2025 |
| Subsidiary of the parent company | 3,000,000,000 | ? | 27/4/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,490,000,000 | ? | 31/8/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 500,000,000 | ? | 21/5/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,000,000,000 | ? | 28/12/2020 | ? | 28/12/2025 |
| Subsidiary of the parent company | 1,200,000,000 | ? | 6/7/2020 | ? | 6/7/2025 |
| Subsidiary of the parent company | 3,000,000,000 | ? | 28/5/2018 | ? | 31/12/2025 |
| Subsidiary of the parent company | 1,300,000,000 | ? | 21/5/2019 | ? | 31/12/2025 |
| Subsidiary of the parent company | 2,500,000,000 | ? | 28/9/2020 | ? | 28/9/2025 |
| Subsidiary of the parent company | 3,280,000,000 | ? | 7/12/2020 | ? | 7/12/2025 |
| ? | ? | ? | ? | ? | ? |
| Total | 55,480,000,000 | ? | ? | ? | ? |
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds provided | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 50,000,000 | ? | 27/3/2015 | ? | 26/12/2021 |
| Subsidiary of the parent company | 30,000,000 | ? | 21/1/2016 | ? | 21/1/2022 |
| Subsidiary of the parent company | 15,000,000 | ? | 20/1/2020 | ? | 20/1/2022 |
| Subsidiary of the parent company | 200,000,000 | ? | 12/10/2020 | ? | 12/10/2030 |
| Subsidiary of the parent company | 100,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 150,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 200,000,000 | ? | 27/4/2020 | ? | 19/12/2022 |
| Subsidiary of the parent company | 50,000,000 | ? | 28/4/2020 | ? | 17/12/2022 |
| Subsidiary of the parent company | 300,000,000 | ? | 24/11/2020 | ? | 24/11/2023 |
| Subsidiary of the parent company | 1,200,000,000 | ? | 5/11/2020 | ? | 28/10/2023 |
| Subsidiary of the parent company | 50,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 800,000,000 | ? | 17/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 650,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 100,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 770,000,000 | ? | 19/2/2020 | ? | 17/2/2023 |
| Subsidiary of the parent company | 800,000,000 | ? | 30/4/2020 | ? | 17/2/2023 |
| Subsidiary of the parent company | 1,490,000,000 | ? | 21/10/2020 | ? | 20/10/2023 |
| Subsidiary of the parent company | 500,000,000 | ? | 24/11/2020 | ? | 24/11/2023 |
| Subsidiary of the parent company | 250,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 450,000,000 | ? | 20/12/2019 | ? | 19/12/2022 |
| Subsidiary of the parent company | 50,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 150,000,000 | ? | 25/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 400,000,000 | ? | 13/12/2019 | ? | 13/12/2022 |
| Subsidiary of the parent company | 120,000,000 | ? | 24/12/2019 | ? | 17/12/2022 |
| Subsidiary of the parent company | 180,000,000 | ? | 24/12/2019 | ? | 24/12/2022 |
| Subsidiary of the parent company | 70,000,000 | ? | 28/4/2020 | ? | 24/12/2022 |
| Subsidiary of the parent company | 130,000,000 | ? | 28/4/2020 | ? | 17/12/2022 |
| Subsidiary of the parent company | 500,000,000 | ? | 20/11/2020 | ? | 20/11/2023 |
| Subsidiary of the parent company | 800,000,000 | ? | 19/2/2020 | ? | 17/2/2023 |
| Subsidiary of the parent company | 170,000,000 | ? | 28/2/2020 | ? | 17/2/2023 |
| Subsidiary of the parent company | 1,700,000,000 | ? | 20/11/2020 | ? | 20/11/2023 |
| Subsidiary of the parent company | 1,800,000,000 | ? | 29/10/2020 | ? | 28/10/2023 |
| Subsidiary of the parent company | 1,480,000,000 | ? | 24/11/2020 | ? | 24/11/2023 |
| ? | ? | ? | ? | ? | ? |
| Total | 15,805,000,000 | ? | ? | ? | ? |
(5) Remuneration of key management personnel
The Group and the Company
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Remuneration of key management personnel | 56,368,000 | ? | 49,799,000 |
The remuneration of key management personnel above does not include the one with respect to 2020 share-based paymentsscheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
???
| ? | 2020 | ? | 2019 | ||||
| Item | Book value | ? | Provision for impairment | ? | Book value | ? | Provision for impairment |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | 38,773,536 | ? | - | ? | 1,960,247 | ? | - |
| Prepayments | 7,678,237 | ? | - | ? | 2,259,308 | ? | - |
| Other receivables | 14,062,445 | ? | - | ? | 603,515 | ? | - |
The Company
??
?
| ? | 2020 | ? | 2019 | ||||
| Item | Book value | ? | Provision for impairment | ? | Book value | ? | Provision for impairment |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Accounts receivable | 3,988,518,583 | ? | 14,979,329 | ? | 659,753,039 | ? | 14,979,329 |
| Prepayments | 153,768 | ? | - | ? | 833,053 | ? | - |
| Dividends receivable | 460,261,502 | ? | - | ? | 941,634,611 | ? | - |
| Other receivables | 15,724,164,267 | ? | 46,377,509 | ? | 3,889,934,009 | ? | 41,038,073 |
| Other non-current assets | 2,606,920,400 | ? | - | ? | 156,920,400 | ? | - |
Payables to related parties
The Group
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Accounts payable | 108,759,439 | ? | 77,847,042 |
| Advance payments received | 6,018,519 | ? | 60,990 |
| Contract liabilities | 1,604,187 | ? | - |
| Other payables | 183,204,239 | ? | 166,424,203 |
The Company
??Item
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Accounts payable | 236,990,054 | ? | 1,093,063 |
| Advance payments received | 8,735,465 | ? | 2,108,152,470 |
| Other payables | 3,051,622,542 | ? | 4,739,212,844 |
| Other non-current liabilities | 56,156,661,805 | ? | 33,297,240,830 |
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but not listed in financial statement are asfollowing:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Procurement of equipment | 254,763,625 | ? | 133,794,504 |
XI. Share-based payments
At 17 December 2020, the Board of Directors of the Company approved the implementation of share options and restrictedshare incentive plans. The shares for the share options and restricted share incentive plans are from the Company’s RenminbiA-share ordinary shares repurchased from secondary market. Vesting plans of share options and restricted share incentiveplans are as follows:
(a) Share option incentive plan
The share option incentive plan is classified into initial grant and reserved grant. The initial grant date was 21December 2020, and the implementation was completed on 25 December 2020. The actual number of grantees was1,988, with a number of grants of 596,229,700 shares; the number of reserved grants was 33,000,000 shares. The grantdate, grant recipients, and implementation completion date, etc. are to be confirmed.
The share options are exercised in three phases after 24 months from the grant date. The exercise ratios for each phaseare 34%, 33%, and 33%, respectively. The corresponding exercise dates are 2 years, 3 years, and 4 years from the grantdate.
When the Company’s performance meets the corresponding criteria, the proportion of exercisable rights of theabove-mentioned share options is determined based on the business performance of the incentive object’s operationand the contribution value of the incentive object. In accordance with the plan, the Company will deregister the currentexercisable shares of the options obtained by the incentive objects if the exercise criteria stipulated in this plan are notmet.
(b) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020, and the implementation was completed on 29December 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 share incentive plan are the 24, 36 and 48 months from the grant date,respectively. During the lock-up period, restricted shares granted to the incentive object under this plan shall not betransferred, used for guarantee or debt repayment before the lock-up release. Lock-up restricted shares are released inthree phases after 24 months from the grant date. The release ratios for each 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 performance assessment result for the previous year.
When the Company’s performance meets the corresponding criteria, the release proportion of the above-mentionedrestricted shares is determined based on the business performance of the incentive object’s operation and thecontribution value of the incentive object. The Company will repurchase the locked restricted shares at the grantedprice of the incentive objects if the release criteria stipulated in this plan are not met, and the incentive object shall notrelease the restricted shares for the current period.
The incentive objects involved in this share option and restricted share incentive plans are qualified employees of theCompany and its subsidiaries. The Company acts as a settlement company, and the Company and its subsidiaries act asservice recipients. As at 31 December 2020, the total costs recognised by the Group’s equity-settled share-based payments inthe consolidated financial statement was RMB 17,211,463, and the accumulated amount of capital reserve paid byequity-settled share-based payments amounted to RMB 16,009,935. In the Company’s financial statements, the Companyrecognised its long-term equity investment of RMB 13,407,214 in its subsidiary at the fair value of the equity instruments atthe grant date, and recognised expenses arising from share-based payments of RMB 3,804,249, as well as a capital reserve ofRMB 17,211,463.
As at 31 December 2020, the company received a total of RMB 875,333,536 in restricted share subscription funds fromrestricted share incentive objects. Based on relevant provisions of the restricted share incentive plan for the service period, ifthe granted object resigns before the release date, the Company will repurchase the restricted shares that have not beenreleased at the subscription price of the granted object. Please refer to Note V. 28 (1) for the repurchased obligation set out inother payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the difference between the assessed fairvalue of the exercisable share options at each grant date and the subscription price in RMB (RMB 1.68/share, RMB
1.93/share and RMB 2.09/share, respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on the difference between the fair value ofshares at the grant date and the subscription price at RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made according to the latestinformation, such as the number of employees who are granted options and the completion of performanceindicators, and the number of equity instruments expected to vest is revised accordingly. On the vesting date, theestimated number is equal to the number of equity instruments that are ultimately vested.
XII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continue as a going concern, so that itcan continue to provide returns for shareholders, by pricing products and services commensurately with the level of risk andby securing access to finance at a reasonable cost.
The Group defines “capital” as including all components of equity, less unaccrued proposed dividends. The balances ofrelated party transactions are not regarded by the Group as capital.
The Group’s capital structure is regularly reviewed and managed to achieve an optimal structure and return for shareholders.Factors for the Group’s consideration include: its future funding requirements, capital efficiency, actual and expectedprofitability, expected cash flows, and expected capital expenditure. Adjustments are made to the capital structure in light ofchanges in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital ratio (total liabilities divided by totalassets). The capital management strategies exerted by the Group remained unchanged from 2019. In order to maintain oradjust the ratio, the Group may adjust the amount of dividends paid to shareholders, request new loans, issue new shares, orsell assets to reduce debt.
As at 31 December 2020 and 31 December 2019, the Group’s asset-liability ratios are as follows:
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Asset-liability ratio | 59.13% | ? | 58.56% |
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
XIII. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
??The Group
| The Group | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 58,885,156,561 | ? | 59,347,872,614 |
| Contracts authorised but not entered into | 74,192,859,943 | ? | 102,974,551,619 |
| ? | ? | ? | ? |
| Total | 133,078,016,504 | ? | 162,322,424,233 |
The Group’s contracts authorised but not entered into mainly included the fixed assets that Chongqing BOE Display, FuzhouBOE Display, Health Investment and Wuhan BOE planned to purchase in subsequent years and project equipment that theGroup planned to purchase in subsequent years.
??The Company
| The Company | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 39,391,365,336 | ? | 36,732,291,172 |
The Company’s contracts entered into but not performed or partially performed mainly included guaranteed investments inChongqing BOE Display, Fuzhou BOE Display and Health Investment.
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under non-cancellable operating leases of the Group’sproperties were payable as follows:
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 76,151,901 | ? | 56,919,248 |
| After 1 year but within 2 years (inclusive) | 38,471,518 | ? | 34,440,482 |
| After 2 years but within 3 years (inclusive) | 21,725,645 | ? | 31,151,809 |
| After 3 years | 33,043,339 | ? | 61,129,358 |
| ? | ? | ? | ? |
| Total | 169,392,403 | ? | 183,640,897 |
As at 31 December 2020, the Company had no significant operating lease commitments.
(2) Guarantee
(1) The Group as the guarantor
As at 31 December 2020, the Group did not have guarantees provided for external enterprises.
(2) The Company as the guarantor
At 31 December 2020, Chengdu Optoelectronics pledged its land use right with carrying amount of RMB 41,177,526,construction in progress with carrying amount of RMB 1,221,864,173, machinery and equipment with carrying amount ofRMB 32,627,157,411 and plants and buildings with carrying amount of RMB 2,432,658,572 as collaterals to obtainlong-term loans of USD 901,460,000 and RMB 15,717,800,000. The Company provides joint-liability guarantee for theabove loans. In addition, the Company provides joint-liability guarantee for the letters of credit issued but not accepted ofUSD 449,008 and JPY 27,540,000 and the long-term letter of guarantee issued but not accepted of RMB 1,118,500,000.
At 31 December 2020, Yuansheng Optoelectronics pledged its plants and buildings with carrying amount of RMB2,184,506,985, machinery and equipment with carrying amount of RMB 9,074,094,053 and land use right with carryingamount of RMB 45,644,499 as collaterals to obtain long-term loans of RMB 1,922,730,000. The Company providesjoint-liability guarantee for the above loans.
At 31 December 2020, Chongqing BOE Display pledged its land use right with carrying amount of RMB 166,784,696 ascollaterals to obtain long-term loans of USD 124,000,000 and RMB 1,000,000. The Company provides joint-liabilityguarantee for the above loans. In addition, the Company provides joint-liability guarantee for the short-term loan of USD170,000,000 and the letters of credit issued but not accepted of USD 301,146,607 and JPY 18,938,564,000.
At 31 December 2020, Hefei Xinsheng pledged its land use right with carrying amount of RMB 113,894,779, plants andbuildings with carrying amount of RMB 3,016,644,938 and equipment with carrying amount of RMB 3,528,523,204 ascollaterals to obtain long-term loans of USD 268,120,000. The Company provides joint-liability guarantee for the aboveloans.
At 31 December 2020, Chongqing BOE pledged its land use right with carrying amount of RMB 132,311,810 and machineryand equipment and buildings with carrying amount of RMB 10,742,935,343 as collaterals to obtain long-term loans of USD562,240,000 and RMB 255,600,000. The Company provides joint-liability guarantee for the above loans.
At 31 December 2020, Fuzhou BOE pledged its land use right with carrying amount of RMB 207,436,937, plants andbuildings with carrying amount of RMB 3,069,470,678 and machinery and equipment with carrying amount of RMB10,668,568,525 as collaterals to obtain long-term loans of USD 729,000,000 and RMB 3,450,060,000. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for thelong-term letter of guarantee issued but not accepted of RMB 720,000,000.
At 31 December 2020, Hefei Display Technology pledged its land use right with carrying amount of RMB 286,639,674,buildings with carrying amount of RMB 3,919,531,110 and machinery and equipment with carrying amount of RMB18,739,242,411 as collaterals to obtain long-term loans of USD 1,342,090,000 and RMB 6,118,214,080. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for theletters of credit issued but not accepted of JPY 899,600,000.
At 31 December 2020, Mianyang BOE pledged its land use right with carrying amount of RMB 384,360,333, buildings withcarrying amount of RMB 111,133,982, machinery and equipment with carrying amount of RMB 23,758,696,685 andconstruction in progress with carrying amount of RMB 9,712,245,614 as collaterals to obtain long-term loans of USD802,000,000 and RMB 13,182,730,000. The Company provides joint-liability guarantee for the above loans. In addition, theCompany provides joint-liability guarantee for the letters of credit issued but not accepted of USD 22,911,342 and JPY3,424,770,000 and the long-term letter of guarantee issued but not accepted of RMB 1,690,000,000.
At 31 December 2020, Wuhan BOE pledged its machinery and equipment with carrying amount of RMB 18,290,634,775,land use right with carrying amount of RMB 254,850,879 and construction in progress with carrying amount of RMB10,092,665,066 as collaterals to obtain long-term loans of USD 1,158,000,000 and RMB 7,673,000,000. The Companyprovides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for theletters of credit issued but not accepted of USD 2,440,000 and JPY 3,340,856,000.
At 31 December 2020, Chengdu Hospital obtain long-term loans of RMB 999,092,146. The Company provides joint-liabilityguarantee for the above loans.
XIV. Segment reporting
(1) Segment reporting considerations
The Group management reviews the operation performance and allocates resources according to the business segmentsbelow.
(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD, AMOLED, Microdisplay and otherintelligent interface devices, which develops a platform that integrates panels, modules,whole widget and services. This business focuses on providing high-qualitysmartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),tiled display screens, industrial control, wearable devices, VR/AR devices, electronictags, white goods, healthcare, mobile payment, interactive whiteboards and otherintelligent display devices for customers. Besides, this business provides the mostcompetitive whole-widget smart manufacturing services for 3C display, smart IoTs,system platform and other fields.
(b) Smart systems innovation business — The smart systems innovation business
integrates designs of system solutions. Supported by AI and big data technologies, thisbusiness focuses on soft and hard products and services and offers integrated IoTsolutions of smart government affairs, urban beautification, smart transportation, smartfinance, smart education, smart park and smart energy.
(c) Smart medicine and engineering business — The smart medicine and engineering
business provides professional healthcare services and features the innovativeintegration of medical and engineering by integrating technology and medical science.Adhering to people-centred thought, this business focuses on family, community andhospital and emphasizes developing four core businesses, such as healthmanagement, health technology, digital hospital and technology services. It strives tocreate interconnection among testing equipment, medical personnel and customersthrough healthcare IoT platform and build an intelligent health management ecosystemto provide customers with one-stop health services of "prevention-diagnosis andtreatment-health care”.
(d) Sensor and application solutions business — The sensor and application solutions
business integrates design and manufacturing of B2B system solutions. This businessfocuses on medical detection, household detection, communication and transportation,smart homes and other fields to provide customers with integrated design andmanufacturing services of sensor devices; besides, this business provides sensorsystem solutions of medical imaging, biological detection, smart screens, microwavecommunication, fingerprint identification and the like, with products including flat panelX-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identificationsystems, etc.
(e) Mini-LED business — The Mini-LED business integrates design and manufacturing of
devices and provides Mini-LED backlight products with strong reliability and highdynamic range that allow precisely brightness adjustment for smartphones, tablet PCs,laptops, monitors, TVs and other products; besides, it provides Mini/Micro-LED displayproducts with high brightness, strong reliability and high dynamic range for use inoutdoor display, commercial display and other scenarios.
(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 managesthe display business, smart systems innovation business, smart medicine & engineeringintegration business, sensor and application solutions business, Mini-LED business andother businesses. As these business segments manufacture and distribute differentproducts, apply different manufacturing processes and specify in gross profit, thesebusiness segments are managed independently. The management evaluates theperformance and allocates resources according to the profit of each business segmentand does not take financing cost and investment income into account.
(2) Accounting policies for the measurements of reportable segments
For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and expensesattributable to each reportable segment. Inter-segment sales are determined with reference to prices charged to externalparties for similar orders.
| ? | 2020 | ||||||||||||||
| ? | Display business | ? | Smart systems innovation business | ? | Smart medicine & engineering integration business | ? | Sensor and application solutions business | ? | Mini-LED business | ? | Others | ? | Elimination | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 131,970,602,256 | ? | 1,328,060,494 | ? | 1,522,460,282 | ? | 119,817,921 | ? | - | ? | 7,372,351,461 | ? | (6,760,722,685) | ? | 135,552,569,729 |
| Operating costs | 107,769,219,236 | ? | 981,563,055 | ? | 724,268,025 | ? | 75,405,672 | ? | - | ? | 2,213,785,494 | ? | (2,941,118,726) | ? | 108,823,122,756 |
??
| ? | 2019 | ||||||||||||||
| ? | Display business | ? | Smart systems innovation business | ? | Smart medicine & engineering integration business | ? | Sensor and application solutions business | ? | Mini-LED business | ? | Others | ? | Elimination | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 113,741,071,151 | ? | 821,226,259 | ? | 1,357,484,752 | ? | 62,748,635 | ? | - | ? | 7,320,141,513 | ? | (7,243,082,146) | ? | 116,059,590,164 |
| Operating costs | 98,329,154,262 | ? | 498,624,217 | ? | 668,875,829 | ? | 30,963,371 | ? | - | ? | 1,681,836,505 | ? | (2,763,184,888) | ? | 98,446,269,296 |
The Company develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of each reportable segment respectively by business.Besides, the Group restates comparative information in 2019 according to segment reporting in 2020.
(3) Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods.
The information of the Group’s external transactions based by locations is as follows:
| ? | Operating income from external customers | ||
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Chinese mainland | 65,241,679,286 | ? | 59,444,025,767 |
| Other Asian countries and regions | 54,895,384,319 | ? | 45,030,859,656 |
| Europe | 4,804,966,123 | ? | 4,511,337,220 |
| America | 10,316,934,261 | ? | 6,911,922,720 |
| Other regions | 293,605,740 | ? | 161,444,801 |
| ? | ? | ? | ? |
| Total | 135,552,569,729 | ? | 116,059,590,164 |
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical location of the asset, in the caseof fixed assets; the location of the operation to which they are allocated, in the case of intangible assets and goodwill;and the location of operations, in the case of interests in associates and jointly controlled enterprises. Most of thenon-current assets in the Group are located in the Chinese mainland.
(4) Major customers
Operating income of display business from which is over 10% of the Group’s total operating income ended up with 2customers (2019: 2 customers). The operating income from these customers represented RMB 35,420,533,749 (2019: RMB30,980,334,746), which was approximately 26% (2019: 27%) of the Group’s total operating income.
XV. Notes to the Company’s financial statements
1 Cash at bank and on hand
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash on hand | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| USD | 5 | ? | 6.5249 | ? | 31 | ? | 5 | ? | 6.9762 | ? | 35 |
| HKD | 165 | ? | 0.8416 | ? | 139 | ? | 165 | ? | 0.8958 | ? | 148 |
| JPY | 51,325 | ? | 0.0632 | ? | 3,244 | ? | 51,325 | ? | 0.0641 | ? | 3,290 |
| KRW | 420,000 | ? | 0.0060 | ? | 2,520 | ? | 420,000 | ? | 0.0060 | ? | 2,520 |
| Other foreign currencies | ? | ? | ? | ? | 16,662 | ? | ? | ? | ? | ? | 16,943 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 22,596 | ? | ? | ? | ? | ? | 22,936 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank deposits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 2,694,966,600 | ? | ? | ? | ? | ? | 1,355,519,593 |
| USD | 257,341,260 | ? | 6.5249 | ? | 1,679,125,986 | ? | 333,055,313 | ? | 6.9762 | ? | 2,323,460,475 |
| HKD | 1,641,906 | ? | 0.8416 | ? | 1,381,828 | ? | 1,972,588 | ? | 0.8958 | ? | 1,767,044 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 4,375,474,414 | ? | ? | ? | ? | ? | 3,680,747,112 |
| ? | |||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 4,375,497,010 | ? | ? | ? | ? | ? | 3,680,770,048 |
Including: Total overseas deposits were equivalent to RMB 150,742 (2019: RMB 161,168).
2 Accounts receivable
(1) The Company’s accounts receivable by customer type:
???
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Amounts due from subsidiaries | 3,988,518,583 | ? | 659,753,039 |
| Amounts due from other customers | 5,995,278 | ? | 7,044,176 |
| ? | ? | ? | ? |
| Sub-total | 3,994,513,861 | ? | 666,797,215 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 20,301,553 | ? | 20,264,100 |
| ? | ? | ? | ? |
| Total | 3,974,212,308 | ? | 646,533,115 |
(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 3,813,737,996 | ? | 646,534,878 |
| Over 1 year but within 2 years (inclusive) | 163,379,898 | ? | 2,866,370 |
| Over 2 years but within 3 years (inclusive) | - | ? | - |
| Over 3 years | 17,395,967 | ? | 17,395,967 |
| ? | ? | ? | ? |
| Sub-total | 3,994,513,861 | ? | 666,797,215 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 20,301,553 | ? | 20,264,100 |
| ? | ? | ? | ? |
| Total | 3,974,212,308 | ? | 646,533,115 |
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
???
| ? | 2020 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 5,283,008 | ? | 0% | ? | 5,283,008 | ? | 100% | ? | - |
| - Customers with low credit risk | 3,988,518,583 | ? | 100% | ? | 14,979,329 | ? | 0% | ? | 3,973,539,254 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 712,270 | ? | 0% | ? | 39,216 | ? | 6% | ? | 673,054 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,994,513,861 | ? | 100% | ? | 20,301,553 | ? | 1% | ? | 3,974,212,308 |
???
| ? | 2019 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 5,283,008 | ? | 1% | ? | 5,283,008 | ? | 100% | ? | - |
| - Customers with low credit risk | 660,348,948 | ? | 99% | ? | 14,979,329 | ? | 2% | ? | 645,369,619 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 1,165,259 | ? | 0% | ? | 1,763 | ? | 0% | ? | 1,163,496 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 666,797,215 | ? | 100% | ? | 20,264,100 | ? | 3% | ? | 646,533,115 |
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 20,264,100 | ? | 2,889,866 |
| Charge during the year | 37,453 | ? | 17,416,444 |
| Written-off during the year | - | ? | 42,210 |
| ? | ? | ? | ? |
| Balance at the end of the year | 20,301,553 | ? | 20,264,100 |
For the year ended 31 December 2020, the Company had no individually significant write-off or recovery of doubtful debtswhich had been fully or substantially made in prior years.
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 3,706,332,124, amounting to 93% of the totalaccounts receivable at the end of the year, and no provisions for bad and doubtful debts were made at the end of the year.
3 Other receivables
???
| ? | Note | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? |
| Dividends receivable | (1) | 460,261,502 | ? | 941,634,611 |
| Others | (2) | 15,885,213,081 | ? | 3,885,763,483 |
| ? | ? | ? | ? | ? |
| Total | ? | 16,345,474,583 | ? | 4,827,398,094 |
(1) Dividends receivable
???
| ? | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Yinghe Century | - | ? | 572,694,778 |
| Hefei BOE | - | ? | 350,000,000 |
| Beijing BOE Land Co., Ltd. | - | ? | 18,939,833 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 400,000,000 | ? | - |
| Beijing Electronics Zone Investment and Development Co., Ltd. | 1,842,137 | ? | - |
| BOE (Korea) Co., Ltd. | 6,125,106 | ? | - |
| Beijing Matsushita Colour Innovation Co., Ltd. | 52,294,259 | ? | - |
| ? | ? | ? | ? |
| Total | 460,261,502 | ? | 941,634,611 |
(2) Others
(a) The Company’s other receivables by customer type:
| Customer type | 31 December 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? |
| Amounts due from subsidiaries | 15,710,102,798 | ? | 3,889,330,494 |
| Amounts due from other related parties | 14,061,469 | ? | 603,515 |
| Amounts due from other customers | 210,988,466 | ? | 28,545,610 |
| ? | ? | ? | ? |
| Sub-total | 15,935,152,733 | ? | 3,918,479,619 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 49,939,652 | ? | 44,600,216 |
| ? | ? | ? | ? |
| Total | 15,885,213,081 | ? | 3,873,879,403 |
(b) The Company’s other receivables by currency:
???
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 15,935,152,733 | ? | ? | ? | ? | ? | 3,930,341,042 |
| HKD | - | ? | - | ? | - | ? | 25,293 | ? | 0.8958 | ? | 22,657 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 15,935,152,733 | ? | ? | ? | ? | ? | 3,930,363,699 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 49,939,652 | ? | ? | ? | ? | ? | 44,600,216 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 15,885,213,081 | ? | ? | ? | ? | ? | 3,885,763,483 |
(c) The ageing analysis of other receivables of the Company is as follows:
??
?
| ? | 2020 | ? | 2019 |
| Within 1 year (inclusive) | 12,252,487,143 | ? | 3,734,855,375 |
| Over 1 year but within 2 years (inclusive) | 3,610,709,401 | ? | 59,484,488 |
| Over 2 years but within 3 years (inclusive) | 19,445,996 | ? | 56,743,629 |
| Over 3 years | 52,510,193 | ? | 79,280,207 |
| ? | ? | ? | ? |
| Sub-total | 15,935,152,733 | ? | 3,930,363,699 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 49,939,652 | ? | 44,600,216 |
| ? | ? | ? | ? |
| Total | 15,885,213,081 | ? | 3,885,763,483 |
The ageing is counted starting from the date when other receivables are recognised.
(3) Other receivables by provisioning method
| ? | 2020 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 49,939,652 | ? | 0% | ? | 49,939,652 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 15,885,213,081 | ? | 100% | ? | - | ? | 0% | ? | 15,885,213,081 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 15,935,152,733 | ? | 100% | ? | 49,939,652 | ? | 0%? | ? | 15,885,213,081 |
??
| ? | 2019 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 44,600,216 | ? | 1% | ? | 44,600,216 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 3,873,879,403 | ? | 99% | ? | - | ? | 0% | ? | 3,885,763,483 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,918,479,619 | ? | 100% | ? | 44,600,216 | ? | 1%? | ? | 3,885,763,483 |
(e) Movements of provisions for bad and doubtful debts
?
?
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 44,600,216 | ? | - |
| Charge for the year | 5,339,436 | ? | 45,142,306 |
| Written-off during the year | - | ? | 542,090 |
| ? | ? | ? | ? |
| Balance at the end of the year | 49,939,652 | ? | 44,600,216 |
(d) Other receivables categorised by nature
| Nature of other receivables | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Transaction amount | 15,844,170,864 | ? | 3,889,330,494 |
| Others | 90,981,869 | ? | 41,033,205 |
| ? | ? | ? | ? |
| Sub-total | 15,935,152,733 | ? | 3,930,363,699 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 49,939,652 | ? | 44,600,216 |
| ? | ? | ? | ? |
| Total | 15,885,213,081 | ? | 3,885,763,483 |
(e) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Company amounted to RMB14,636,627,155 in total, most of which are borrowings. No provision is made for bad and doubtful debts afterassessment.
4 Other current assets
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| VAT on tax credits | 45,621,676 | ? | 17,011,521 |
| Others | 132,140,042 | ? | 92,486,376 |
| ? | ? | ? | ? |
| Total | 177,761,718 | ? | 109,497,897 |
5 Long-term equity investments
(1) The Company’s long-term equity investments by category:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Investments in subsidiaries | 179,426,966,866 | ? | 157,203,548,708 |
| Investments in associates and joint ventures | 2,800,090,342 | ? | 2,278,316,052 |
| ? | ? | ? | ? |
| Sub-total | 182,227,057,208 | ? | 159,481,864,760 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 92,000,000 | ? | 92,000,000 |
| ? | ? | ? | ? |
| Total | 182,135,057,208 | ? | 159,389,864,760 |
In previous year, the Company made provision for impairment of investment losses in its subsidiaries, Special Display and
Vacuum Technology, which amounted to RMB 60,000,000 and RMB 32,000,000 respectively.
(2) Investments in subsidiaries:
| Subsidiary | Balance at the beginning of the year | ? | Increase during the year | ? | Decrease during the year | ? | Balance at the end of the year | ? | Balance of provision for impairment at the beginning of the year | ? | Balance of provision for impairment at the end of the year | ||
| ? | ? | ? | Increase in investments | ? | Share-based payments | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,172,288,084 | ? | - | ? | 685,343 | ? | - | ? | 4,172,973,427 | ? | - | ? | - |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 22,703,149,991 | ? | 2,300,000,000 | ? | 1,344,328 | ? | - | ? | 25,004,494,319 | ? | - | ? | - |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,000,000,000 | ? | - | ? | 846,416 | ? | - | ? | 9,000,846,416 | ? | - | ? | - |
| Beijing BOE Display Technology Co., Ltd. | 17,418,713,599 | ? | - | ? | 2,628,382 | ? | - | ? | 17,421,341,981 | ? | - | ? | - |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 20,082,979,185 | ? | - | ? | 1,039,425 | ? | - | ? | 20,084,018,610 | ? | - | ? | - |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,804,000,000 | ? | - | ? | 123,592 | ? | - | ? | 11,804,123,592 | ? | - | ? | - |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 19,565,354,599 | ? | - | ? | 511,822 | ? | - | ? | 19,565,866,421 | ? | - | ? | - |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 14,300,042,079 | ? | - | ? | 560,840 | ? | - | ? | 14,300,602,919 | ? | - | ? | - |
| Beijing BOE Vision Electronic Technology Co., Ltd. | 3,865,344,500 | ? | 228,155,500 | ? | 36,288 | ? | - | ? | 4,093,536,288 | ? | - | ? | - |
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,250,000 | ? | - | ? | 8,410 | ? | - | ? | 19,258,410 | ? | - | ? | - |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000 | ? | - | ? | - | ? | - | ? | 32,000,000 | ? | 32,000,000 | ? | 32,000,000 |
| Beijing BOE Special Display Technology Co., Ltd. | 100,000,000 | ? | - | ? | 113,695 | ? | - | ? | 100,113,695 | ? | 60,000,000 | ? | 60,000,000 |
| Beijing Yinghe Century Co., Ltd. | 333,037,433 | ? | - | ? | 237,796 | ? | - | ? | 333,275,229 | ? | - | ? | - |
| BOE Optical Science and technology Co., Ltd. | 658,961,914 | ? | - | ? | 80,760 | ? | - | ? | 659,042,674 | ? | - | ? | - |
| BBOE Hyundai LCD Inc. | 31,038,525 | ? | - | ? | 143,435 | ? | - | ? | 31,181,960 | ? | - | ? | - |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,353,651,020 | ? | - | ? | 40,543 | ? | - | ? | 1,353,691,563 | ? | - | ? | - |
| Beijing BOE Multimedia Technology Co., Ltd. | 400,000,000 | ? | - | ? | - | ? | - | ? | 400,000,000 | ? | - | ? | - |
| Beijing BOE Energy Technology Co., Ltd. | 850,000,000 | ? | - | ? | 110,069 | ? | - | ? | 850,110,069 | ? | - | ? | - |
| Beijing BOE Life Technology Co., Ltd. | 10,000,000 | ? | - | ? | - | ? | - | ? | 10,000,000 | ? | - | ? | - |
| Beijing Zhongxiangying Technologies Co., Ltd. | 10,000,000 | ? | 40,000,000 | ? | 14,864 | ? | - | ? | 50,014,864 | ? | - | ? | - |
| BOE Semi-conductor Co., Ltd. | 9,450,000 | ? | - | ? | - | ? | - | ? | 9,450,000 | ? | - | ? | - |
| BOE Optoelectronics Holding Co., Ltd. | 2,768,662,024 | ? | 443,299,514 | ? | - | ? | - | ? | 3,211,961,538 | ? | - | ? | - |
| Beijing Asahi Electronic Materials Co., Ltd. | 30,888,470 | ? | - | ? | - | ? | (30,888,470) | ? | - | ? | - | ? | - |
| BOE Healthcare Investment & Management Co., Ltd. | 2,953,154,069 | ? | 3,140,000,000 | ? | 13,515 | ? | - | ? | 6,093,167,584 | ? | - | ? | - |
| Hefei BOE Display Technology Co., Ltd. | 1,998,765,323 | ? | - | ? | 573,616 | ? | - | ? | 1,999,338,939 | ? | - | ? | - |
| Beijing BOE Technology Development Co., Ltd. | 1,000,000 | ? | - | ? | 18,591 | ? | - | ? | 1,018,591 | ? | - | ? | - |
| BOE Wisdom IOT Technology Co., Ltd. | 90,670,000 | ? | 51,330,000 | ? | 344,796 | ? | - | ? | 142,344,796 | ? | - | ? | - |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 600,000,000 | ? | - | ? | 66,764 | ? | - | ? | 600,066,764 | ? | - | ? | - |
| Beijing BOE Land Co., Ltd. | 7,731,474 | ? | - | ? | 21,499 | ? | - | ? | 7,752,973 | ? | - | ? | - |
| Beijing BOE Sales Co., Ltd. | 30,500,000 | ? | - | ? | 13,199 | ? | - | ? | 30,513,199 | ? | - | ? | - |
| BOE KOREA Co., Ltd. | 788,450 | ? | - | ? | 84,867 | ? | - | ? | 873,317 | ? | - | ? | - |
| Kunming BOE Display Technology Co., Ltd. | 670,000,000 | ? | 620,830,000 | ? | 88,433 | ? | - | ? | 1,290,918,433 | ? | - | ? | - |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 14,696,980,083 | ? | 1,280,000,000 | ? | 380,832 | ? | - | ? | 15,977,360,915 | ? | - | ? | - |
| Beijing BOE Sensing Technology Co., Ltd. | 50,000,000 | ? | - | ? | 348,624 | ? | - | ? | 50,348,624 | ? | - | ? | - |
| Hunan BOE Yiyun Science & Technology Co., Ltd. | 90,000,000 | ? | 100,000,000 | ? | - | ? | (190,000,000) | ? | - | ? | - | ? | - |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 4,164,560,516 | ? | 1,833,990,000 | ? | 332,380 | ? | - | ? | 5,998,882,896 | ? | - | ? | - |
| Chongqing BOE Display Technology Co., Ltd. | 2,308,857,370 | ? | 1,649,934,000 | ? | 190,627 | ? | - | ? | 3,958,981,997 | ? | - | ? | - |
| Fuzhou BOE Display Technology Co., Ltd. | 21,730,000 | ? | - | ? | 18,591 | ? | - | ? | 21,748,591 | ? | - | ? | - |
| Beijing Matsushita Colour Innovation Co., Ltd. | - | ? | - | ? | 64,903 | ? | - | ? | 64,903 | ? | - | ? | - |
| BOE Innovation Investment Co., | - | ? | 440,000,000 | ? | - | ? | - | ? | 440,000,000 | ? | - | ? | - |
| Ltd. | |||||||||||||
| Hefei BOE Xingyu Technology Co., Ltd. | - | ? | 219,139,000 | ? | 58,471 | ? | - | ? | 219,197,471 | ? | - | ? | - |
| BOE Education Technology Co., Ltd. | - | ? | 25,000,000 | ? | 73,981 | ? | - | ? | 25,073,981 | ? | - | ? | - |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | - | ? | 8,000,000 | ? | - | ? | - | ? | 8,000,000 | ? | - | ? | - |
| BOE Smart Technology Co., Ltd. | - | ? | 1,440,000,000 | ? | - | ? | - | ? | 1,440,000,000 | ? | - | ? | - |
| Nanjing CEC Panda FPD Technology Co., Ltd. | - | ? | 5,591,221,400 | ? | - | ? | - | ? | 5,591,221,400 | ? | - | ? | - |
| Chengdu CEC Panda Display Technology Co., Ltd. | - | ? | 3,020,000,000 | ? | - | ? | - | ? | 3,020,000,000 | ? | - | ? | - |
| Others* | - | ? | - | ? | 2,187,517 | ? | - | ? | 2,187,517 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 157,203,548,708 | ? | 22,430,899,414 | ? | 13,407,214 | ? | (220,888,470) | ? | 179,426,966,866 | ? | 92,000,000 | ? | 92,000,000 |
*Others are the equity incentive funds paid for subsidiaries of the subsidiaries of BOE Group to be accrued.
For information about the major subsidiaries of the Company, refer to Note VII. 1.
(3) Investments in associates:
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ||||||||||
| Investee | Balance at the beginning of the year | ? | Increase in investments | ? | Decrease in investments | ? | Investment income under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | ? | Balance at the end of the year | ? | Balance of provision for impairment at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Nissin Electronics Precision Component Co., Ltd. | 483,248 | ? | - | ? | - | ? | (219,390) | ? | - | ? | - | ? | - | ? | 263,858 | ? | - |
| Beijing Nittan Electronic Co., Ltd. | 64,808,755 | ? | - | ? | - | ? | 8,588,066 | ? | - | ? | - | ? | (2,000,000) | ? | 71,396,821 | ? | - |
| Erdos BOE Energy Investment Co., Ltd. | 9,348,226 | ? | - | ? | - | ? | (1,185,089) | ? | - | ? | - | ? | - | ? | 8,163,137 | ? | - |
| Beijing Infi-Hailin Venture Investment Co., Ltd. | 663,215 | ? | - | ? | - | ? | 503,309 | ? | - | ? | - | ? | - | ? | 1,166,524 | ? | - |
| Beijing Infi-Hailin Venture Investment (Limited Partnership) | 74,384,952 | ? | - | ? | (79,000,000) | ? | (210,320) | ? | 5,702,455 | ? | (877,087) | ? | - | ? | - | ? | - |
| TPV Display Technology (China) Limited | 24,545,664 | ? | - | ? | - | ? | 282,600 | ? | - | ? | - | ? | - | ? | 24,828,264 | ? | - |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,944,514,849 | ? | - | ? | (427,412,416) | ? | 410,089,641 | ? | 130,950,251 | ? | - | ? | - | ? | 2,058,142,325 | ? | - |
| Beijing Xindongneng Investment Management Co., Ltd. | 7,410,061 | ? | - | ? | - | ? | 2,511,565 | ? | - | ? | - | ? | (2,000,000) | ? | 7,921,626 | ? | - |
| Shenzhen Yunyinggu Technology Co., Ltd. | 12,715,084 | ? | - | ? | - | ? | (5,368,560) | ? | 60,150 | ? | 14,504,213 | ? | - | ? | 21,910,887 | ? | - |
| Beijing Xloong Technologies Co., Ltd. | 22,237,044 | ? | - | ? | - | ? | (2,470,104) | ? | - | ? | - | ? | - | ? | 19,766,940 | ? | - |
| Beijing Innovation Industry Investment Co., Ltd. | 100,363,345 | ? | 100,000,000 | ? | - | ? | 3,699,909 | ? | - | ? | - | ? | - | ? | 204,063,254 | ? | - |
| Beijing Electric Control Industry Investment Co., Ltd. | 16,841,609 | ? | 183,000,000 | ? | - | ? | 679,994 | ? | (319,767) | ? | 81,278 | ? | - | ? | 200,283,114 | ? | - |
| Hunan BOE Yiyun Science & Technology Co., Ltd. | - | ? | 190,000,000 | ? | - | ? | (27,412,408) | ? | - | ? | 19,596,000 | ? | - | ? | 182,183,592 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,278,316,052 | ? | 473,000,000 | ? | (506,412,416) | ? | 389,489,213 | ? | 136,393,089 | ? | 33,304,404 | ? | (4,000,000) | ? | 2,800,090,342 | ? | - |
6 Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Book value | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 794,939,047 | ? | 1,102,554,707 | ? | 299,265,973 | ? | 79,529,998 | ? | 2,276,289,725 |
| Additions during the year | ? | ? | ? | ? | |||||
| - Purchases | - | ? | - | ? | 11,893,193 | ? | 4,797,580 | ? | 16,690,773 |
| - Transfers from construction in progress | - | ? | - | ? | 62,998,261 | ? | - | ? | 62,998,261 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 794,939,047 | ? | 1,102,554,707 | ? | 374,157,427 | ? | 84,327,578 | ? | 2,355,978,759 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 52,495,508 | ? | 595,845,951 | ? | 133,692,030 | ? | 623,972 | ? | 782,657,461 |
| Charge during the year | 27,738,406 | ? | 100,343,266 | ? | 64,907,673 | ? | 262,126 | ? | 193,251,471 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 80,233,914 | ? | 696,189,217 | ? | 198,599,703 | ? | 886,098 | ? | 975,908,932 |
| ? | |||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 714,705,133 | ? | 406,365,490 | ? | 175,557,724 | ? | 83,441,480 | ? | 1,380,069,827 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 742,443,539 | ? | 506,708,756 | ? | 165,573,943 | ? | 78,906,026 | ? | 1,493,632,264 |
7 Deferred tax assets/deferred tax liabilities
???
| ? | 31 December 2020 | ? | 31 December 2019 | ||||
| Item | Deductible/(taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/(taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment of assets | 185,358,501 | ? | 27,803,775 | ? | 179,981,612 | ? | 26,997,242 |
| Changes in fair value of investments in other equity instruments | 121,789,193 | ? | 18,268,379 | ? | 135,444,338 | ? | 20,316,651 |
| Depreciation of fixed assets | 145,995,720 | ? | 21,899,358 | ? | 111,653,214 | ? | 16,747,982 |
| Advance payments received | - | ? | - | ? | 1,906,248,410 | ? | 285,937,261 |
| Others | 37,699,653 | ? | 5,654,948 | ? | 155,622,634 | ? | 23,343,394 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 490,843,067 | ? | 73,626,460 | ? | 2,488,950,208 | ? | 373,342,530 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | (73,626,460) | ? | ? | ? | (13,074,064) | |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | - | ? | ? | ? | 360,268,466 | |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Royalty fees due from subsidiaries | (2,975,000,000) | ? | (446,250,000) | ? | - | ? | - |
| Others | (87,160,432) | ? | (13,074,064) | ? | (87,160,432) | ? | (13,074,064) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (3,062,160,432) | ? | (459,324,064) | ? | (87,160,432) | ? | (13,074,064) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 73,626,460 | ? | ? | ? | 13,074,064 |
| Balance after offsetting | ? | ? | (385,697,604) | ? | ? | ? | - |
8 Advance payments received
??
Item
| Item | 31 December 2020 | ? | 1 January 2020 | ? | 31 December 2019 |
| ? | ? | ? | ? | ? | ? |
| Advances from related parties | 8,735,465 | ? | 110,018 | ? | 2,108,152,470 |
| Advances from third parties | 9,550,993 | ? | 9,366,525 | ? | 9,416,525 |
| ? | ? | ? | ? | ? | ? |
| Total | 18,286,458 | ? | 9,476,543 | ? | 2,117,568,995 |
9 Employee benefits payable
(1) Employee benefits payable:
???
| ? | Note | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 241,384,459 | ? | 1,190,821,753 | ? | (924,181,005) | ? | 508,025,207 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 10,821,616 | ? | 66,029,897 | ? | (68,816,567) | ? | 8,034,946 |
| Termination benefits | ? | - | ? | 6,942,728 | ? | (6,942,728) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 252,206,075 | ? | 1,263,794,378 | ? | (999,940,300) | ? | 516,060,153 |
??
?
| ? | Note | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 191,160,309 | ? | 912,098,158 | ? | (861,874,008) | ? | 241,384,459 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 9,978,952 | ? | 83,250,064 | ? | (82,407,400) | ? | 10,821,616 |
| Termination benefits | ? | - | ? | 2,780,894 | ? | (2,780,894) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 201,139,261 | ? | 998,129,116 | ? | (947,062,302) | ? | 252,206,075 |
(2) Short-term employee benefits
??
?
| ? | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 188,598,673 | ? | 1,014,874,667 | ? | (764,036,829) | ? | 439,436,511 |
| Staff welfare | - | ? | 45,099,922 | ? | (45,099,922) | ? | - |
| Social insurance | ? | ? | ? | ? | |||
| Medical insurance | 14,688,541 | ? | 38,992,104 | ? | (38,858,702) | ? | 14,821,943 |
| Work-related injury insurance | 1,104,889 | ? | 2,639,691 | ? | (2,669,154) | ? | 1,075,426 |
| Maternity insurance | 1,777,726 | ? | 672,235 | ? | (1,212,742) | ? | 1,237,219 |
| Housing fund | 3,854,824 | ? | 55,069,148 | ? | (53,085,430) | ? | 5,838,542 |
| Labour union fee, staff and workers’ education fee | 31,359,806 | ? | 33,473,986 | ? | (19,218,226) | ? | 45,615,566 |
| Others | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 241,384,459 | ? | 1,190,821,753 | ? | (924,181,005) | ? | 508,025,207 |
| ? | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 149,498,505 | ? | 664,206,819 | ? | (625,106,651) | ? | 188,598,673 |
| Staff welfare | - | ? | 46,521,914 | ? | (46,521,914) | ? | - |
| Social insurance | ? | ? | ? | ? | ? | ? | ? |
| Medical insurance | 13,027,783 | ? | 44,619,713 | ? | (42,958,955) | ? | 14,688,541 |
| Work-related injury insurance | 939,307 | ? | 2,862,644 | ? | (2,697,062) | ? | 1,104,889 |
| Maternity insurance | 1,445,194 | ? | 3,536,732 | ? | (3,204,200) | ? | 1,777,726 |
| Housing fund | 2,846,017 | ? | 54,005,271 | ? | (52,996,464) | ? | 3,854,824 |
| Labour union fee, staff and workers’ education fee | 23,403,503 | ? | 26,939,926 | ? | (18,983,623) | ? | 31,359,806 |
| Others | - | ? | 69,405,139 | ? | (69,405,139) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 191,160,309 | ? | 912,098,158 | ? | (861,874,008) | ? | 241,384,459 |
(3) Post-employment benefits - defined contribution plans
??
?
| ? | Balance at 1 January 2020 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 11,489,403 | ? | 55,939,880 | ? | (59,412,804) | ? | 8,016,479 |
| Unemployment insurance | 302,098 | ? | 2,775,842 | ? | (2,706,456) | ? | 371,484 |
| Annuity | (969,885) | ? | 7,314,175 | ? | (6,697,307) | ? | (353,017) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 10,821,616 | ? | 66,029,897 | ? | (68,816,567) | ? | 8,034,946 |
??
?
| ? | Balance at 1 January 2019 | ? | Accrued during the year | ? | Decreased during the year | ? | Balance at 31 December 2019 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 9,772,407 | ? | 73,613,317 | ? | (71,896,321) | ? | 11,489,403 |
| Unemployment insurance | 206,545 | ? | 3,449,922 | ? | (3,354,369) | ? | 302,098 |
| Annuity | - | ? | 6,186,825 | ? | (7,156,710) | ? | (969,885) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 9,978,952 | ? | 83,250,064 | ? | (82,407,400) | ? | 10,821,616 |
10 Other payables
??
?
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Dividends payable | ? | 6,451,171 | ? | 6,451,171 |
| Others | (1) | 6,535,467,510 | ? | 5,254,019,803 |
| ? | ? | ? | ? | ? |
| Total | ? | 6,541,918,681 | ? | 5,260,470,974 |
(1) Others
(a) The Company’s other payables by category are as follows:
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Amounts due to/from subsidiaries | ? | 3,050,656,626 | ? | 4,739,139,471 |
| Equity acquisition fee | VI. 1 | 2,236,488,561 | ? | - |
| Repurchase obligation of restricted shares | V. 40 | 875,333,536 | ? | - |
| Purchase of projects, equipment and intangible assets | ? | 257,829,238 | ? | 345,872,758 |
| Others | ? | 115,159,549 | ? | 169,007,574 |
| ? | ? | ? | ? | ? |
| Total | ? | 6,535,467,510 | ? | 5,254,019,803 |
(b) The Company’s other payables by currency:
???
| ? | 2020 | ? | 2019 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 5,042,463,687 | ? | ? | ? | ? | ? | 2,257,788,363 |
| USD | 228,735,332 | ? | 6.5249 | ? | 1,492,475,170 | ? | 414,300,937 | ? | 6.9762 | ? | 2,890,246,197 |
| JPY | 8,364,763 | ? | 0.0632 | ? | 528,653 | ? | 157,972,312 | ? | 0.0641 | ? | 10,126,025 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 6,535,467,510 | ? | ? | ? | ? | ? | 5,158,160,585 |
11 Long-term loans
??
?
| ? | 2020 | ? | 2019 | ||||
| ? | ? | ? | Credited/ collateralised | ? | ? | ? | Credited/ collateralised |
| ? | RMB | ? | guaranteed/ pledged | ? | RMB | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | 46,207,924,194 | ? | Credited | ? | 38,801,142,361 | ? | Credited |
| Less: Long-term loans due within one year | 7,847,210,073 | ? | Credited | ? | 5,490,440,787 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 38,360,714,121 | ? | ? | ? | 33,310,701,574 | ? | ? |
The interest rate of RMB long-term loans for the Company ranged from 0% to 4.75% in 2020 (2019: 0% to 4.75%).
12 Deferred income
??Item
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Amounts recognised in other income | ? | Other changes | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - related to assets | 4,515,402,780 | ? | 1,696,830 | ? | (903,180,554) | ? | (1,696,830) | ? | 3,612,222,226 |
| - related to income | 111,990,476 | ? | 11,567,200 | ? | (12,437,456) | ? | (90,000,000) | ? | 21,120,220 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,627,393,256 | ? | 13,264,030 | ? | (915,618,010) | ? | (91,696,830) | ? | 3,633,342,446 |
13 Capital reserve
| Item | Share premium | ? | Other capital reserves | ? | Total |
| ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 37,546,517,053 | ? | 61,522,632 | ? | 37,608,039,685 |
| Add: Other movements in equity of associates | - | ? | 33,304,404 | ? | 33,304,404 |
| Equity-settled share-based payments | - | ? | (945,264,723) | ? | (945,264,723) |
| ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 37,546,517,053 | ? | (850,437,687) | ? | 36,696,079,366 |
14 Other comprehensive income
??Item
| Item | ? | ? | Movements during the year | ? | ? | ||||
| ? | Balance at the beginning of the year | ? | Before-tax amount | ? | Less: Income tax expense | ? | Add: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Items that will not be reclassified to profit or loss | 193,638,576 | ? | 138,168,402 | ? | 2,048,272 | ? | (239,057,408) | ? | 90,701,298 |
| Including: Other comprehensive income recognised under equity method | 308,766,264 | ? | 136,381,254 | ? | - | ? | (250,925,408) | ? | 194,222,110 |
| Changes in fair value of investments in other equity instruments | (115,127,688) | ? | 1,787,148 | ? | 2,048,272 | ? | 11,868,000 | ? | (103,520,812) |
| Items that may be reclassified to profit or loss | - | ? | 11,835 | ? | - | ? | - | ? | 11,835 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 193,638,576 | ? | 138,180,237 | ? | 2,048,272 | ? | (239,057,408) | ? | 90,713,133 |
15 Retained earnings
?
Item
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Retained earnings at the beginning of the year (before adjustment) | 4,781,488,839 | ? | Not applicable |
| Add: Changes in accounting policies | 4,805,155,027 | ? | Not applicable |
| Retained earnings at the beginning of the year (after adjustment) | 9,586,643,866 | ? | 2,609,929,782 |
| Add: Net profits for the year | 3,739,191,584 | ? | 3,685,564,456 |
| Less: Appropriation for statutory surplus reserve | 373,919,158 | ? | 368,556,446 |
| Interest on holders of other equity instruments | 485,925,480 | ? | 56,109,589 |
| Dividends to ordinary shares | 695,967,975 | ? | 1,043,951,963 |
| Transfer of other comprehensive income to retained earnings | (215,151,667) | ? | 45,387,401 |
| Effect of accounting for disposal of subsidiaries to equity method | 31,086,473 | ? | - |
| ? | ? | ? | ? |
| Retained earnings at the end of the year | 11,954,088,031 | ? | 4,781,488,839 |
16 Operating income
| ? | 2020 | ? | 2019 |
| Item | Income | ? | Income |
| ? | ? | ? | ? |
| Principal activities | 3,850,224,763 | ? | 4,103,362,231 |
| Other operating activities | 691,451,432 | ? | 682,025,488 |
| ? | ? | ? | ? |
| Total | 4,541,676,195 | ? | 4,785,387,719 |
| Including: Income related to the new revenue standard | 4,418,761,325 | ? | Not applicable |
| Revenue related to the lease standard | 122,914,870 | ? | Not applicable |
Details of operating income:
???
| ? | ? | 2019 |
| ? | ? | ? |
| Operating income from principal activities | ? | ? |
| - Technology development income | ? | 4,103,362,231 |
| Other operating income | ? | ? |
| - Rental income of investment properties | ? | 122,723,329 |
| - Others | ? | 559,302,159 |
| ? | ? | ? |
| Total | ? | 4,785,387,719 |
17 Taxes and surcharges
??
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Property tax | 29,195,630 | ? | 33,323,560 |
| Land use tax | 2,834,360 | ? | 2,849,332 |
| Stamp duty | 7,909,675 | ? | 4,682,297 |
| City maintenance and construction tax | 405,990 | ? | 353,192 |
| Education surcharges and local education surcharges | 289,993 | ? | 252,276 |
| Others | 253,948 | ? | 27,864 |
| ? | ? | ? | ? |
| Total | 40,889,596 | ? | 41,488,521 |
18 Research and development expenses
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Staff cost | 686,052,717 | ? | 544,087,165 |
| Material expenses | 70,093,725 | ? | 74,036,997 |
| Depreciation and amortisation | 221,602,752 | ? | 242,794,178 |
| Commissioned and cooperative development | 533,483,606 | ? | 853,951,463 |
| Others | 591,662,325 | ? | 469,881,484 |
| ? | ? | ? | ? |
| Total | 2,102,895,125 | ? | 2,184,751,287 |
19 Financial expenses
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Interest expenses from loans | 970,259,855 | ? | 934,776,554 |
| Interest income from bank deposits | (37,793,976) | ? | (41,156,445) |
| Net exchange (income)/losses | (17,019,010) | ? | 7,509,490 |
| Other financial expenses | 1,091,676 | ? | 2,751,033 |
| ? | ? | ? | ? |
| Total | 916,538,545 | ? | 903,880,632 |
20 Other income
??
?
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Government grants related to assets | 903,180,554 | ? | 901,541,269 |
| Government grants related to income | 67,808,613 | ? | 43,858,943 |
| ? | ? | ? | ? |
| Total | 970,989,167 | ? | 945,400,212 |
The amount of government grants received by the Company in 2020 and directly included in other income was RMB 55,371,157.
21 Investment income
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Income from long-term equity investments accounted for using cost method | 1,608,291,389 | ? | 1,889,790,465 |
| Income from long-term equity investments accounted for using equity method | 416,901,621 | ? | 244,595,829 |
| Investment income from disposal of long-term equity investments | 401,239,648 | ? | 49,028,075 |
| Dividend income from investments in other equity instruments | 3,252,444 | ? | 2,354,733 |
| Including: Dividend income from investments in other equity instruments derecognised during the year | - | ? | 471,354 |
| Dividend income from investments in other equity instruments held at the balance sheet date | 3,252,444 | ? | 1,883,379 |
| ? | ? | ? | ? |
| Total | 2,429,685,102 | ? | 2,185,769,102 |
22 Income tax expenses
???
| ? | Note | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Current tax expense for the period based on tax law and regulations | ? | 449,586,180 | ? | 313,149,954 |
| Changes in deferred tax assets/liabilities | (1) | (198,212,508) | ? | (82,338,912) |
| ? | ? | ? | ? | ? |
| Total | ? | 251,373,672 | ? | 230,811,042 |
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | (198,212,508) | ? | (82,338,912) |
(2) Reconciliation between income tax expenses and accounting profit:
| Item | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Profit before taxation | 3,990,565,256 | ? | 3,916,375,498 |
| Expected income tax expense at tax rate of 15% | 598,584,788 | ? | 587,456,325 |
| Add: Non-deductible expenses | 47,469,071 | ? | 5,063,076 |
| Non-taxable income | (304,718,886) | ? | (279,640,682) |
| Tax deduction for R&D activities | (89,961,301) | ? | (74,503,110) |
| Others | - | ? | (7,564,567) |
| ? | ? | ? | ? |
| Income tax expenses | 251,373,672 | ? | 230,811,042 |
23 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit | 3,739,191,584 | ? | 3,685,564,456 |
| Add: Credit losses | 5,376,889 | ? | 62,558,750 |
| Impairment losses | - | ? | 32,000,000 |
| Depreciation of fixed assets and investment properties | 135,264,681 | ? | 122,776,599 |
| Amortisation of intangible assets | 165,094,127 | ? | 180,015,643 |
| Amortisation of long-term deferred expenses | 36,414,535 | ? | 34,805,818 |
| Financial expenses | 1,044,078,606 | ? | 996,740,951 |
| Investment income | (2,429,685,102) | ? | (2,185,769,102) |
| Changes in deferred revenue tax assets and liabilities | (196,164,236) | ? | (69,473,918) |
| Increase in gross inventories | (4,686,882) | ? | (4,646,260) |
| (Increase)/ Decrease in operating receivables | (1,521,836,219) | ? | 465,794,325 |
| Decrease in operating payables | (857,601,770) | ? | (869,099,802) |
| ? | ? | ? | ? |
| Net cash inflow from operating activities | 115,446,213 | ? | 2,451,267,460 |
| (b) Net changes in cash and cash equivalents: | ? | ? | ? |
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 4,360,065,216 | ? | 3,680,770,048 |
| Less: Cash and cash equivalents at the beginning of the year | 3,680,770,048 | ? | 3,829,814,050 |
| ? | ? | ? | ? |
| Net increase / (decrease) in cash and cash equivalents | 679,295,168 | ? | (149,044,002) |
(2) Details of cash and cash equivalents
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Cash on hand | 22,596 | ? | 22,936 |
| Bank deposits available on demand | 4,360,042,620 | ? | 3,680,747,112 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 4,360,065,216 | ? | 3,680,770,048 |
Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted usage.
24 Assets with restrictive ownership title
As at 31 December 2020, the Company has no assets with restrictive ownership title.
XVI. Extraordinary gains and losses in 2020
| ? | ? | 2020 | ? | 2019 |
| ? | ? | ? | ? | ? |
| Investment income from disposal of long-term equity investments | ? | 376,344,290 | ? | 48,846,682 |
| Losses from disposal of non-current assets | ? | (2,912,119) | ? | (28,506,546) |
| Government grants recognised through profit or loss (excluding those that are closely related to the normal business operations of the Company and that are in compliance with national policies and are subject to constant or fixed amount according to certain standards) | ? | 2,332,107,692 | ? | 2,640,634,861 |
| Gains or losses arising from changes in fair value of financial assets held for trading, and investment income from disposal of financial assets held for trading | ? | 82,698,484 | ? | 112,668,244 |
| Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis | ? | 15,447,820 | ? | 1,498,805 |
| Other non-operating income and expenses besides items above | ? | 65,391,368 | ? | 96,799,305 |
| Other items qualified as extraordinary gain and loss | Note 2 | - | ? | 795,126,980 |
| Less: Tax effect | ? | 185,966,533 | ? | 285,904,312 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,683,111,002 | ? | 3,381,164,019 |
| ? | ? | ? | ? | ? |
| Including: Extraordinary gains affecting net profit of equity shareholders of the Company | ? | 2,365,173,118 | ? | 3,085,437,188 |
| Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders | ? | 317,937,884 | ? | 295,726,831 |
Note 1: Extraordinary gain and loss items listed above are presented in the amount before taxation.
Note 2: The Company’s capital commitment and conversion obligations to non-controlling interests of Hefei Xinsheng are included
in financial liabilities in accordance with the relevant accounting standards for financial instruments. In 2019, the Companysigned an "Equity Transfer Agreement" with Hefei Heping Investment Co., Ltd. ("Hefei Heping") that the Company agreed toreceive 15.3846% of equity interest in Hefei Xinsheng held by Hefei Heping, after which, Hefei Xinsheng becomes awholly-owned subsidiary of the Company. According to the requirements of the Accounting Standard, the difference of RMB795,126,980 between the cash payment and the book value of this financial liability is included in the current profit and loss.
XVII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by Companies Issuing Securities No.9 – Calculationand Disclosure of the Return on Net Assets and Earnings Per Share” (2010 revised) issued by the CSRC and relevant accountingstandards, the Group’s return on net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | ? | Basic earnings per share | ? | Diluted earnings per share |
| ? | ? | ? | ? | ? | ? |
| Net profit attributable to the Company’s ordinary equity shareholders | 5.15% | ? | 0.13 | ? | 0.13 |
| Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | 2.47% | ? | 0.06 | ? | 0.06 |
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.58.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing consolidated net profit excludingextraordinary gain and loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary sharesoutstanding:
???
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 4,549,702,472 | ? | 1,862,534,282 |
| Extraordinary gains and losses attributable to ordinary shareholders of the Company | 2,365,173,118 | ? | 3,085,437,188 |
| Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | 2,184,529,354 | ? | (1,222,902,906) |
| Weighted average number of ordinary shares outstanding | 34,684,107,122 | ? | 34,798,398,763 |
| Basic earnings per share excluding extraordinary gain and loss (RMB/share) | 0.06 | ? | (0.04) |
| ? | ? | ? | ? |
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributable to ordinary shareholders of theCompany by the weighted average amount of consolidated net assets:
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 4,549,702,472 | ? | 1,862,534,282 |
| Weighted average amount of consolidated net assets | 88,422,792,378 | ? | 86,381,158,426 |
| Weighted average return on net assets | 5.15% | ? | 2.16% |
Calculation of weighted average amount of consolidated net assets is as follows:
??
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Consolidated net assets at the beginning of the year | 87,044,972,202 | ? | 85,849,388,234 |
| Effect of consolidated net profit attributable to ordinary shareholders of the Company | 2,274,851,236 | ? | 931,267,141 |
| Effect of repurchase of treasury shares | (666,258,231) | ? | - |
| Distribution of profits to ordinary shareholders | (347,983,988) | ? | (521,975,982) |
| Effect of change in shareholding ratio of subsidiaries | 24,957,407 | ? | 4,049,092 |
| Effect of movements in amounts attributable to ordinary shareholders of the Company | 92,253,752 | ? | 183,465,298 |
| ? | ? | ? | ? |
| Weighted average amount of consolidated net assets | 88,422,792,378 | ? | 86,446,193,783 |
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated as dividing consolidated net profitexcluding extraordinary gain and loss attributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:
??
| ? | 2020 | ? | 2019 |
| ? | ? | ? | ? |
| Consolidated net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | 2,184,529,354 | ? | (1,222,902,906) |
| Weighted average amount of consolidated net assets | 88,422,792,378 | ? | 86,446,193,783 |
| Weighted average return on net assets excluding extraordinary gain and loss | 2.47% | ? | (1.41%) |
| ? | ? | ? | ? |
Part XIII 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: 9
th
April 2021